Enacted Budget – Fiscal Year 2027
On July 21, Michigan Governor Gretchen Whitmer signed both the state’s general omnibus budget as well as the education budget. The fiscal 2027 enacted budget calls for $75.19 billion in total gross spending, a 3.5 percent decrease from fiscal 2026. Much of the decrease in fiscal 2027 total spending is due to less federal funds; federal funds are estimated to be $25.64 billion, a 12.4 percent decrease from fiscal 2026. Fiscal 2027 general fund spending is projected to be $14.11 billion, a 3.3 percent decrease from fiscal 2026. The adjusted gross budget includes $23.8 billion in education spending in fiscal 2027, a 4.0 percent decrease from fiscal 2026. Combined School Aid Fund revenue and Net General Fund/General Purpose revenue is projected to be $33.82 billion in fiscal 2027, a 0.7 percent increase from fiscal 2026; School Aid Fund revenue is forecasted to increase 2.3 percent while Net General Fund General Purpose revenue is forecasted to decrease 1.3 percent.
The fiscal 2027 budget is focused on lowering costs, growing opportunities for Michiganders, protecting access to healthcare, fixing the roads, and supporting small businesses. The budget saves Michiganders money by continuing free school meals for all public school students; maintaining the Working Families Tax Credit; rolling back the retirement tax completely; continuing tax exemptions on tips, overtime, and Social Security; and additional support for both the Michigan Achievement Scholarship, providing a tuition free pathway for community college students, and Michigan Reconnect, helping adult learners earn an associate degree or skills certificate tuition free. To protect access to Medicaid, the budget provides additional funding to mitigate the impacts of the One Big Beautiful Bill Act (OBBBA) and continues to fund whole-of-government initiatives to ensure the future sustainability of Medicaid, lower costs, and help residents protect their benefits. In order to create jobs and grow the economy, the budget provides additional support for small business, community growth, and entrepreneurship; continues support for Michigan Rehabilitation Services; provides additional aid for MiSTEM programs; helps employers train and retrain workers; supports statewide tourism campaigns; and targets funding to help grow the maritime manufacturing industry and strengthen the state’s defense industry. The budget also continues to “fix the damn roads” across Michigan by providing additional local funding, additional funds for roads and bridges; and an increase in state and federal support for transit and rail programs. The state’s education budget includes a historic investment for public schools including in student literacy, with funding allocated toward literacy curriculum, literacy training for teachers, before- and after-school programs, literacy coaching, and high-impact tutoring. The governor also signed legislation to train teachers, expand access to childcare, and direct more resources to kids who need them most.