Last week, I released my balanced budget recommendation for fiscal year 2026, doubling down on the kitchen table issues that make a real dif





*February 11, 2025*



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Dear Friend,

Last week, I released my balanced budget recommendation for fiscal year 2026, doubling down on the kitchen table issues that make a real difference in people’s lives.

This commonsense budget will lower costs, create good-paying jobs, grow our economy, improve academic results, and support Michigan seniors. Together, I know we can find common ground and deliver another balanced, bipartisan budget.

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Check out more details below.

Let’s get it done.

Sincerely,

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Gretchen Whitmer

Governor 






*⬇️ Lowering Costs**??*

The budget recommendation includes investments to lower costs and help Michiganders fight inflation, including:


* Continues the Working Families Tax Credit, which delivered an average of more than $3,500 in tax relief to 650,000 families last year.
* Provides universal pre-K through the Great Start Readiness Program to an estimated 57,100 children, including a $392 increase in per-child funding.
* Keeps feeding free school meals to all 1.4 million public school students, saving families $850 per year, for each child.
* Expands the MiABLE program, which helps Michiganders with disabilities save money without impacting their benefits eligibility.
* Caps the costs of exams, like AP tests, at $5 for low-income students taking high school courses for college credit, covering 34,350 exams.
* Creates affordability programs to help families struggling with their water bills.

*???? Creating Jobs **??‍♀️??*

The budget recommendation proposes investments that will create jobs, grow our economy, rebuild roads and bridges, and improve Michigan’s infrastructure, including:


* Billions of dollars to keep fixing the damn roads and bridges.
* $125 million to expand CTE programs in underserved districts and fund the “Future Ready” pilot program in middle schools.
* $19 million to expand registered apprenticeship and apprenticeship readiness programs while offering training, wages, and credentials to employees.
* Supports small businesses with Small Business Entrepreneurial Support Hubs and supports employers by helping key industries like advanced mobility, semiconductor, aerospace defense, and life science to attract, retain, and connect talent with good-paying jobs.
* Continuation of the Going Pro job training grants to businesses to support training for current and new employees in high-demand, skilled trades industries, resulting in an estimated 35,200 new hires and current employees trained.
* Rural prosperity grants and expansion of the Rural Development Grant Program, which supports projects that enhance rural community infrastructure, including job training, child care, housing, and utilities.

*?? Getting SMART on Education **??*

K-12 Education

* $516 million to support school operations through a 4.1% increase in base per pupil funding—equating to an additional $392 per student, for a total of $10,000 per pupil.
* Expansion of supports for special education students—a 10% increase, and a 4.1% increase in funding to support academically at-risk students, English language learners, career and technical education students, and students in rural school districts.
* $258 million to support the mental and emotional well-being of 1.4 million students through the continuation of mental health and safety grants to districts.
* Implementation of the Governor’s Students, Metrics, and Results with Transparency (SMART) plan to drive improvements in student outcomes. The SMART Plan would keep parents informed about the standing of their child’s school—increasing school engagement with parents.
* Continuing funding for the MI Future Educator Fellowship and Student Teacher Stipends, providing a tuition-free route to becoming a teacher.

Higher Education & Workforce Development 

* Fully phased in costs of the Michigan Achievement Scholarship, providing a tuition-free pathway for full-time community college students, and two out of three full-time students at public or private 4-year universities, up to $27,500 toward a 4-year degree. More than 56,000 scholarships were awarded in the 2024 fall semester, and 100,000 students are expected to benefit once the program is fully implemented.
* A 4% ongoing increase for university and community college operations to enhance higher education learning and support Michigan’s goal of 60% of working adults earning a degree or skills certificate by 2030. Since I took office, Michigan’s education attainment has risen from 45% to 51.8%.

*?? Supporting Seniors **??*

The budget recommendation prioritizes initiatives that benefit and support Michigan’s seniors, including:


* Continued tax relief to Michigan seniors through the rollback on the retirement tax, which on average will put $1,000 back into the pockets of 500,000 senior households when fully phased in for tax year 2026.
* Expansion of the PACE program, which provides comprehensive medical, social, and physical care for the frail and elderly population, by adding room for 54 new patients, in Saginaw, Traverse City, and Newaygo. Since October 2019, enrollment in the program has grown from serving 3,000 individuals to nearly 5,500 seniors today.
* Protects nursing home residents, supporting nine new positions to provide more timely and comprehensive oversight of Michigan’s 424 nursing homes and acute and continuing care facilities.

*?? **Protecting and Defending Michiganders ??*

The budget recommendation focuses on investments to protect and defend Michiganders, including:


* A 4% ongoing increase in revenue sharing to support police and fire, fix roads, and improve the quality of life for residents.
* Upgrading critical infrastructure at Selfridge Air National Guard Base to build Michigan’s defense industry and attract new flying missions and aircraft, recognizing the $30 billion that it contributes to the state’s economy and the more than 116,000 jobs it supports.
* $75 million for a Public Safety Trust Fund to address violent crime prevention through community interventions, and victim support.
* $46.8 million directed to reduce opioid overdose deaths through prevention, treatment, harm reduction, and recovery support for those affected by the opioid epidemic. $42.8 million from taxing vaping and non-tobacco nicotine products similarly to other tobacco products, with all revenues supporting smoking and cancer prevention, youth mental and physical health, and access to healthcare.
* Supports behavioral health resources and medical care for first responders and public safety staff.

*✅ **Making Government Work Better ??️*

To make sure government works efficiently and effectively to serve all residents, the budget recommendation calls for investments to modernize state government and save for a rainy day, including:


* Upgrades to government information technology applications and modernization of legacy systems to better serve Michigan residents.
* $50 million deposit to the Budget Stabilization Fund, which would bring the rainy-day fund balance to approximately $2.3 billion by the end of fiscal year 2026—an all-time high, doubling since I took office.
* $50 million deposit into the schools’ rainy-day fund, bringing the balance to a total of $550 million set aside to shield school funding from future economic uncertainty. From my first budget through my FY26 executive budget recommendation, the state will have paid down more than $25.3 billion in debt.







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