Michigan Budget Director Tours Food Bank as State Faces $1 Billion Revenue Drop Amid Federal SNAP Pressures

State Budget Director Jen Flood and state Sen. Sean McCann tour Loaves & Fishes in Kalamazoo, discussing SNAP access and Governor Whitmer's budget proposal

KALAMAZOO, Mich. — Michigan's State Budget Director joined a state senator for a visit to a Kalamazoo food bank, highlighting the growing pressure on federal programs like SNAP and the governor's proposed budget response.

State Budget Director Jen Flood and State Sen. Sean McCann (D-Kalamazoo) toured Kalamazoo Loaves & Fishes on Wednesday, where they heard from staff about challenges facing families trying to access food assistance.

"We are seeing the federal government pass the tab to states on some really important programs like SNAP and Medicaid," Flood said. "We wanted to come here to see sort of the work on the front."

Federal regulations create access barriers

Food bank staff told Flood and McCann that the families they serve are finding it harder to access SNAP benefits, citing new regulations from the federal "One Big Beautiful Bill" Act.

"We know that families are facing rising costs, and so in the Governor's final budget, we have investments to help make sure that people maintain access to healthcare, maintain access food," Flood said.

Governor's budget includes emergency funding

The governor's proposal totals $88.1 billion and includes more than $186 million in additional funds to administer SNAP, plus upwards of $780 million in Medicare funding.

"The action that Congress took last year blew an enormous hole in our budget and it also puts access to food and health care at risk for millions of Michiganders," Flood said.

$1 billion revenue decline looms

On top of addressing federal pressures, the state faces a more than $1 billion decline in revenue this year.

"We built our budget based on those projections," Flood said. "We'll get an update in May, but the Governor's committed to leaving our state's finances in better shape than she inherited them, so we will watch closely what happens and make sure that our spending leaves us in a good place."

Legislative gridlock ahead

The governor's proposal is just one piece of the process. Both chambers of the legislature will each put forth their own vision.

Republicans, who control the state House, are already wary of new taxes sought by Whitmer and a $400 million draw from reserves, which they called non-starters.

"At the end of the day, we care about a lot of the same things," Flood said. "I've seen Speaker Matt Hall's comments about the governor's proposal, but he'll have an opportunity to put out his own budget and approach for solving the deficit that we're facing."

Historical spending context

The budget situation comes as Michigan grapples with its fiscal history. The Mackinac Center for Public Policy reports that Michigan lawmakers had $9 billion in expected surplus funds at their disposal in January 2023.

That surplus came from pandemic-era tax revenues, which saw the state collect $40.1 billion in fiscal year 2021-22, compared to $31.5 billion in fiscal year 2018-19.

The Mackinac Center notes that schools were the biggest beneficiaries of the surplus, with the school aid budget increasing from $13.0 billion before the pandemic to $18.9 billion in the current budget—a $5.8 billion gain.

Medicaid received the next biggest increase in annual spending. Total spending at the Department of Health and Human Services increased from $26.5 billion in 2018-19 to $39.3 billion today. The federal government pays the bulk of Medicaid costs, and total state spending on the department increased from $7.5 billion to $11.4 billion, a $3.8 billion increase.

Revenue has grown significantly

State Sen. Mallory McMorrow has argued that state revenue has remained flat since 1968, but the Mackinac Center's analysis contradicts this claim.

State revenue was $2 billion in the 1967-68 fiscal year. In 2024-25, state revenue reached $48.9 billion—an increase of 2330% when adjusted for inflation.

This means the state spent $2,178 per person in 1967-68 but $4,832 in 2024-25, representing a 122% increase in per-capita spending.

What's at stake

The current budget negotiations will determine whether Michigan can maintain essential services while addressing federal pressures on programs like SNAP and Medicaid.

The state faces a complex fiscal environment: rising federal costs being passed to states, a $1 billion revenue decline, and political divisions over how to balance the budget.

Whitmer's approach includes maintaining funding levels for critical programs and seeking to address federal pressures. Republicans are pushing for reduced spending and no new taxes, while Democrats in the Senate are aligned with the governor's proposal.

The final budget outcome will have real implications for Michigan families trying to access food assistance, healthcare, and other essential services.

Sources:

• https://upnorthlive.com/news/local/state-budget-director-jen-flood-kalamazoo-food-bank-snap-governor-budget-funding-loaves-fishes-politics-government-michigan
• https://midmichigannow.com/news/state/state-budget-director-jen-flood-kalamazoo-food-bank-snap-governor-budget-funding-loaves-fishes-politics-government-michigan
• https://www.michigancapitolconfidential.com/news/mcmorrow-budget-figures-dont-add-up
• https://www.mackinac.org/blog/2026/where-did-michigans-surplus-go