Michigan’s $88.1 billion budget plan includes new taxes, education boost, federal funding challenges

Michigan Governor Gretchen Whitmer proposed an $88.1 billion budget for fiscal year 2027, emphasizing increased education funding, tax relief, and addressing federal program changes. Key elements include $13.6 billion in general fund spending, $20.3 billion for school aid, and reliance on $35.99 billion in federal funding. The budget proposes a per-pupil funding increase, a sales tax holiday, and new taxes on tobacco, vaping, and digital ads. Republican lawmakers criticize the tax hikes, while Democrats argue the plan addresses a $1.8 billion deficit. Both parties aim to avoid past contentious budget negotiations.