Enacted Budget – Fiscal Year 2025
On July 24, Michigan Governor Gretchen Whitmer signed the state’s general omnibus budget after previously signing the education budget on July 23. According to the Appropriations Conference report, total gross appropriations (including both general fund and education spending) are projected to be $82.52 billion in fiscal 2025, a 1.1 percent increase from the estimated fiscal 2024 level. Ongoing School Aid Fund appropriations are estimated at $20.37 billion in fiscal 2025 (a 1.1 percent increase from fiscal 2024), while ongoing General Fund/General Purpose appropriations are estimated at $13.70 billion (a 7.1 percent increase). Ongoing General Fund/General Purpose revenue is forecasted at $14.81 billion in fiscal 2025, a 0.5 percent increase from projected fiscal 2024 levels. The School Aid Fund is projected to have a year-end balance of $30.8 million, while the General Fund/General Purpose year-end balance is estimated at $319.3 million. The budget also includes a $50 million deposit into the Budget Stabilization Fund, bringing the grand total to nearly $2.2 billion by the end of fiscal 2025, and a $20 million deposit into the Disaster and Emergency Contingency Fund.
The fiscal 2025 general omnibus budget and education budget are aimed at lowering costs, protecting public safety, building affordable housing, helping more workers “make it” in Michigan, and building a better and more affordable education system. The general omnibus budget is balanced and makes critical investments including funding to improve turnaround times for environmental permitting, implement the Secure Retirement program to help small businesses, and continue the federal EBT summer food benefit. Regarding making it in Michigan, the budget helps power economic development, rebuilds roads and bridges, builds strong communities, replaces lead pipes, and supports other infrastructure efforts. The budget also includes funding to keep Michigan families safe and healthy including through establishing a Public Safety Trust Fund; new revenue sharing for localities; hiring more State Police troopers; implementing juvenile justice reforms; establishing new Certified Community Behavioral Health Clinics; and continued funding for the Healthy Moms, Healthy Babies program. Finally, the general omnibus budget includes investments that will help build a fairer and more equitable Michigan including a 15 percent rate increase for childcare and bonuses for childcare workers, new funding for trial courts, and implementing recommendations of the Racial Disparities Task Force. The education budget includes a guarantee to Michigan families of free, high-quality education beginning with pre-K; a new record high for dollars into the classroom for a sixth year in a row; tuition guaranteed community college for every high school graduate; and historic investments in teachers.