Michigan

Michigan

Budget Links

FY2024 (enacted)
FY2024 (proposed)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)
FY2019 supplemental (enacted)
FY2019 (enacted)

Enacted Budget – Fiscal Year 2024

On July 31, Michigan Governor Gretchen Whitmer signed the state’s general omnibus budget after previously signing the education budget on July 20. Total appropriations (including both general fund and education spending) are projected to be $81.7 billion in fiscal 2024, 5.4 percent less than estimated fiscal 2023 spending. Education appropriations are $24.3 billion in fiscal 2024 (a 6.8 percent increase from fiscal 2023) while general fund appropriations total $15.2 billion (a 13.1 percent decrease from fiscal 2023). General Fund/General Purpose and School Aid Fund revenue is estimated to decrease 1.3 percent in fiscal 2024. After a $200 million deposit, the Budget Stabilization Fund is projected to be nearly $2 billion at the end of fiscal 2024, an all-time high. The fiscal 2024 general omnibus budget and education budget are aimed at lowering costs on healthcare, preschool, meals for kids, higher education, housing, and workforce training. In addition, the budget provides funding to help fix bridges, replace lead pipes, and protect public safety. Highlights of the budget include: $150.6 million to increase Medicaid reimbursement rates; $171.5 million in public safety grants; $416 million to fix roads and build up public infrastructure; $212 million for residential energy efficiency improvements through federal funds; nearly $600 million for water infrastructure; and a $500 million annual deposit in the Make it in Michigan fund. Highlights from the education budget include $611 million to increase per-pupil funding by 5 percent; a $450 million deposit into a new rainy day fund for schools; $370 million to support teachers; $328 million for mental health and school safety; $255 million to expand free pre-K; a 5 percent ongoing increase for higher education operations; and $112 million for infrastructure improvements at universities and community colleges.

Enacted Budget Information

Fiscal Year 2024 General Omnibus Budget

Fiscal Year 2024 Education Budget

Senate Analysis of General Omnibus Budget

Senate Analysis of Education Budget

Governor’s Press Release – General Omnibus Budget

Governor’s Press Release – Education Budget

Revenue Forecast – May 2023

Proposed Budget - Fiscal Year 2024

On February 8, Michigan Governor Gretchen Whitmer released her fiscal 2024 budget proposal that calls for $80.64 billion in total spending, a 4.8 percent increase from fiscal 2023’s original enacted level. The recommended budget calls for $13.03 billion in general fund spending, a 4.2 percent decline from fiscal 2023’s enacted level. The general fund decline in fiscal 2024 is due to less recommended one-time spending; ongoing general fund spending is recommended to increase in fiscal 2024. Additionally, the budget includes a school aid fund total of $20.89 billion, a 6.6 percent increase from fiscal 2023. The budget projects general fund net tax revenue at $15.09 billion in fiscal 2024, a 2.1 percent increase from the current estimate for fiscal 2023. The budget recommendation calls for a $200 million deposit to the Budget Stabilization Fund, bringing the total fund balance to nearly $2 billion, or over 6 percent of total state general fund and school aid revenues. Total budget by source includes federal (41 percent), school aid (24 percent), general fund (19 percent), other state restricted (15 percent), and local/private (1 percent).

Proposed Budget Highlights 

The governor noted her recommended budget includes investments to lower costs for working families, create more economic opportunity for workers, and provide children with what they need to succeed – including a great education and safe neighborhoods. Additionally, it builds on prior accomplishments with critical investments in education, public safety, infrastructure, and economic development. The governor also added that while the state enters fiscal 2024 with a multi-billion dollar surplus, it must stay focused on passing a fiscally responsible, balanced budget that strategically invests one-time resources and sets funds aside for a rainy day. Some highlights of the budget proposal include:

Lowering Costs

• Rolls back the retirement tax, saving half a million households $1,000 per year
• Expands the Working Families Tax Credit, providing 700,000 homes nearly $3,200 combined tax refunds
• Takes the first step towards pre-K for all of Michigan’s four-year-olds
• Provides up to a $3,000 refundable tax credit to child care and preschool teachers
• Temporarily pauses the Sales and Use Tax on the purchase of electric vehicles

Education – Getting Kids Back on Track

• K-12 Education: $900 million deposit into a new rainy day fund for schools; a 5 percent increase in base per-pupil funding; $318 million for school safety programs; $442.4 million to help students reach their full academic potential, including literacy efforts; $300 million for tutoring through the MI Kids Back on Track program; $300 million for student mental health; $257.3 million for pre-K for four-year-olds; $195 million for teacher recruitment and retention efforts; and $160 million for free breakfast and lunch
• Higher Education and Workforce Development: 4 percent ongoing increase for university and community college operations; $200 million to improve existing facilities and technology; $140 million to temporarily lower the eligibility age for Reconnect from 25 to 21, making tuition free associates degree or skills training more readily available; $100 million additional investment for the Michigan Achievement Scholarship; $75 million for the Reconnect Bachelor’s Degree Pathway Program; and $55 million for a Student Wellness Fund.

Public Health – Strengthening Families

• $210.1 million to increase wage support for direct care professionals
• $150 million for efforts to attract a Michigan-based insulin manufacturing facility
• $129.7 million for additional Medicaid health access 
• $62.1 million to fund Healthy Moms, Healthy Babies
• $58 million to implement recommendations from the Racial Disparities Taskforce
• $30 million increase to support local health departments 

Public Safety – Keeping Communities Safe

• $50.4 million to leverage the State Police Training Academy to serve as a criminal justice training hub to support realistic, multi-disciplinary training opportunities
• $36.6 million in new statutory revenue sharing dedicated specifically for public safety
• $18.2 million to provide in-service training to law enforcement officers
• $11.5 million to improve infrastructure at the Selfridge Air National Guard Base 
• $10.8 million to establish the Office of Community Violence Intervention Services
• $10.4 million to improve safety and accountability in correctional facilities
• $9 million for a Michigan State Police Trooper Recruit School

Rebuilding Infrastructure

• Roads, Bridges, Transit, Electrification: $350 million in a reserve designed to leverage infrastructure dollars; $200 million investment supporting Michigan’s Bridge Building program; $160 million for Intermodal Capital Investment Grants; $65 million to expand electric vehicle charging infrastructure; and $45 million for the Michigan Clean Fleet Initiative
• Housing: $212 million for residential energy efficiency improvements; $100 million for the Community Downtown Economic Development Program; $50 million in funding for the Revitalization and Placemaking Program; $50 million for the Housing and Community Development; and $15 million for workforce housing needs
• Water, Parks, Agriculture, Environment: $226 million to remove and replace lead service lines; $122.5 million to ensure the quality of drinking water; and $100 million to establish an environmental justice contaminated site clean-up fund

Economic Development

• $500 million annual deposit in the Strategic Outreach and Attraction Reserve Fund
• $200 million over 10 years for the Ongoing Clean Energy Supply Chain Tax Credit
• $200 million for the Michigan Regional Empowerment Program
• $135 million for the Michigan Main Street Initiative
• $15 million in federal funding to supplement state funding for Pure Michigan
• $10 million to support outdoor recreation businesses

Proposed Budget Information
Fiscal Year 2024 Budget Proposal 

Budget Presentation 

Press Release 

Revenue Forecast – January 2023