Michigan’s annual budget for next year is on it’s way to the governor’s desk for final approval after an all-night legislative session to finalize the state’s finances for fiscal year 2026-27.
After missing the July 1 deadline to pass the annual budget, state legislators worked through the night to come to a bipartisan agreement on next year’s fiscal spending.
The budget, totaling around $75.2 billion, marks a roughly $1 billion decrease from the current fiscal year, and includes no new taxes or fee increases while preserving the state’s rainy day fund, according to legislators.
“Michigan families expect their government to live within its means, spend responsibly, and focus on results,” said Michigan House Appropriations Committee Chair Rep. Ann Bollin (R-Brighton Twp.) in a statement. “This budget reflects those values. We held the line against tax increases, protected our rainy-day fund, reduced spending compared to last year, and advanced reforms that will make government more accountable to the people it serves.”
Notable highlights in the budget include continued investments in free school meals program and free pre-K for all, tax credits for working families and seniors, public assistance programs including Medicaid and food assistance, as well as public safety, mental health services, and education and literacy programs.
Though investments in education are less than the current fiscal year’s allocation, it includes a $250 increase in per pupil funding. It also establishes a Childcare Fund to provide more stability for providers, wage increases for direct care workers, resources for local small businesses, and investments in affordable housing and home repair grants.
“This budget shows bipartisan progress is still possible,” said Sen. Darrin Camilleri (D-Trenton), a former educator and current Chair of the PreK-12 Appropriations Subcommittee. “I’m proud of the funding priorities we’ve carried through every one of our Senate Majority budgets, with record investments and better support for our students and teachers.”
The 2026-27 budget also secures “robust” funding for Community Violence Intervention (CVI) grants, natural disaster emergency response, relief for prosecutor caseload relief, and continued revenue sharing to support local communities statewide.
The state House overwhelmingly passed the budget on Friday morning with a 99-7 margin. Four representatives did not vote.
In the Senate, State Sen. Thomas Albert (R-Lowell) voted no on the new budget, noting that it has “structural and sustainability issues” that he cannot support.
“The size and scope of state government has ballooned during Gov. Whitmer’s eight years in office, worsening our economy and making life tougher for Michiganders,” he said in an issued statement. “Our public schools continue to struggle, and until we adopt changes that will truly improve student outcomes, our investments will not produce the results we need.”
The budget now advances to Gov. Whitmer for her signature.