Gov. Gretchen Whitmer on Tuesday signed her eighth and final budget as governor, closing out a marathon budget season with a balanced, bipartisan plan that ultimately spent less than either chamber's starting number.
The fiscal year 2026-27 budget totals roughly $75.2 billion, down from about $76 billion in the prior fiscal year. The separate School Aid budget accounts for about $22.9 billion of that total. The figure landed below the House Republicans' $75.8 billion proposal and well below the approximately $88.1 billion that Whitmer and Senate Democrats had advanced earlier this year.
Lawmakers had missed the statutory July 1 deadline for approving a budget for the second straight year. This time, however, they finished the job months before the Oct. 1 start of the new fiscal year, after a late-night session in which the Legislature gave final approval and also passed more than 60 bills, including the separate School Aid budget.
Whitmer said the budget is aimed at lowering costs while protecting services families rely on.
"At a time when Michiganders are struggling with higher costs, this budget puts money in their pockets," Whitmer said. "It continues free breakfast and lunch for all 1.4 million public school students, cuts taxes, fixes the damn roads, and protects Michiganders from the harms of HR 1, DC Republicans' big ugly bill."
The plan funds a range of consumer relief items, including $200 million to continue free school meals for all 1.4 million public school students, a benefit officials say saves families roughly $1,000 per child per year. It continues the Working Families Tax Credit, which the state says returns an average of nearly $3,900 to 665,000 families, and rolls back the retirement tax, saving an estimated 500,000 seniors about $1,000 a year.
The budget also directs $343 million more to local road funding, bringing total road funding to $3.1 billion. The money marks the first full year of the state's historic $2 billion road plan and is expected to support an estimated 30,500 construction jobs each year.
A notable portion of the budget responds to federal action. The state set aside $184.3 million to prepare for new federal requirements tied to the so-called "HR 1" legislation, including increased SNAP administrative cost-sharing, staffing to help residents maintain benefits, and community health navigators to assist people facing new eligibility rules.
"Good budgeting is about setting priorities and making responsible choices," said Rep. Ann Bollin, R-Brighton Township, who joined Whitmer at the state capital for the signing. "We took a hard look at how state departments have been spending money, asked tough questions, and built a budget based on real needs rather than automatic spending increases."
Senate Majority Leader Winnie Brinks, D-Grand Rapids, framed the plan as a continuation of her caucus's priorities.
"Senate Democrats have remained dedicated to the same priorities since day one: delivering opportunity, equity, and real relief for the hardworking people of Michigan," Brinks said.
The School Aid budget, signed separately at Adler Elementary School in Southfield, increases the state's per-student allowance by $250, bringing per-student funding to a record high of $10,300, or a 2.5 percent increase.
"This budget was bipartisan and required months of negotiations between the Republican-controlled House and the Democrat-controlled Senate," the Center Square noted. The final result, below all of the competing proposals, reflects the compromises of that process.
The signing marks the end of Whitmer's budget tenure. She is term-limited and will not seek a new term.