Whitmer’s $83.5B Michigan Budget Focuses on Lowering Family Costs

Michigan’s fiscal landscape is set for significant shifts as Governor Gretchen Whitmer’s administration unveils an expansive $83.5 billion budget proposal. This strategic financial plan aims to alleviate the rising costs burdening families, according to the administration’s presentation to state lawmakers.

Jen Flood, Whitmer’s Budget Director, emphasized the budget’s focus during her remarks to the House and Senate appropriations committees. “While inflation is cooling, families are still struggling with rising costs and that’s why the No. 1 focus of this budget is lowering costs,” Flood remarked.

The proposed budget prioritizes increased support for childcare and pre-K education, as well as financial aid for post-secondary schooling. Additionally, it aims to raise the K-12 foundation allowance to $10,000 per student.

New revenue streams are also on the table, with proposed taxes on vape pens and nicotine products and increased landfill tipping fees. These measures aim to deter vaping and increase costs for out-of-state waste disposal businesses exploiting Michigan’s low rates.

Notably absent from the budget proposal is a detailed plan for road improvements, a significant aspect of Governor Whitmer’s 2018 campaign. Senator Sarah Anthony (D-Lansing), chair of the Senate Appropriations Committee, expressed the need for this inclusion, stating, “Having a roads plan baked into the large budget presentation is helpful, so we can actually start getting some of these conversations and decisions.”

Jen Flood indicated that discussions regarding road funding are ongoing and may feature in the upcoming State of the State address. She assured that the budget was “balanced, fiscally responsible,” and suggested that road funding talks would continue soon.

Meanwhile, House Republicans, who now control the chamber, have introduced an alternative proposal to reallocate budget funds, including business subsidies, to improve roads.

Flood also highlighted potential budget adjustments due to federal actions. She noted the uncertainty introduced by the short-lived “spending freeze” during President Donald Trump’s tenure, stating that “the courts have weighed in and everything is on pause right now, and so we are going to continue to monitor the potential impacts.” Federal funds comprise over 40% of Michigan’s state spending, supporting healthcare, education, and veterans’ services.

House Appropriations Committee Chair Ann Bollin (R-Brighton) voiced concerns over federal grants, despite acknowledging their benefits. She noted, “We have seen over the years, we say yes to the federal money and while the money grows, so do the requirements.” Bollin expressed skepticism regarding the alignment of federal requirements with Michigan’s needs.

The next phase involves appropriations subcommittees holding hearings on budget bills, aiming for adoption by the start of the state’s fiscal year on October 1. Local entities, including governments and educational institutions, hope for earlier completion since their fiscal years commence on July 1.

With the House led by Republicans, the Senate by Democrats, and a Democratic governor, the final budget will emerge from bipartisan negotiations. Gov. Whitmer has also advocated for transparency in earmarks benefiting businesses or non-profits in legislators’ districts before budget votes.