Michigan lawmakers pass $75 billion 2027 state budget, send bill to Whitmer's desk

Michigan lawmakers worked overnight to pass a $75 billion bipartisan state budget for the 2027 fiscal year after missing their July 1 deadline for a second straight year. 

The budget, which was passed by both the state House and Senate early Friday morning, totals $75.2 billion, includes $19.8 billion in school aid funding and $14.1 billion in the general fund, reducing the general fund spending by $859 million.  

"Today's balanced, bipartisan budget delivers for every Michigander," said Whitmer in a statement. "Over the past seven and a half years, we've fixed more roads, supported more students, secured more investments, and expanded more rights than any other administration in state history. This budget builds on our progress by strengthening student literacy, opening doors for more housing opportunity, protecting health care, fixing our damn roads, and lowering costs for all Michiganders."

The 2027 budget includes no new statewide taxes or fees and preserves the state's rainy-day fund, according to lawmakers. 

"For years, the answer in Lansing was always the same: spend more, hire more and grow government," said Michigan House Majority Leader Bryan Posthumus (R-Cannon Township) in a statement. "House Republicans rejected that mindset. We cut spending for the second straight year because taxpayers don't need a bigger government, they need a government that works for them."  

The proposed budget earmarks $325 million to support school operations, increases per-pupil funding by 2.5% to $10,300, calls for $200 million to continue free school meals for public school students, and $321 million to support mental health and safety grants for school districts. 

An additional $2.2 billion is planned for public university and community college operations. 

"This budget shows bipartisan progress is still possible," said state 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. And after decades of disinvestment, and years of work to build them back up, we're finally delivering predictable, long-term weighted funding for our schools."  

The budget will continue the Working Families Tax Credit and calls for eliminating the retirement tax.   

The 2027 fiscal budget allocates an additional $52.7 million for roads and bridges and provides a $123.8 million increase in federal and state support for rail and transit initiatives. 

"Michigan families expect their government to live within its means, spend responsibly, and focus on results," said state Sen. Ann Bollin (R-Brighton Township). "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." 

The budget comprises House Bill 5630 and Senate Bill 878 and now heads to Whitmer's desk for her signature.