Budget Cycle

Governor Submits Budget
February (30 days after legislature convenes)

Fiscal Year Begins
October 1 

Governor Signs Budget 

Budget Links

FY2025 (proposed)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)

Proposed Budget - Fiscal Year 2025

On February 7, Michigan Governor Gretchen Whitmer released her fiscal 2025 budget proposal that calls for $82.0 billion in total spending, a 0.4 percent increase from fiscal 2024’s original enacted level. The recommended budget calls for $12.5 billion in general fund spending, a 7.0 percent decrease from fiscal 2024’s enacted level. The general fund decline in fiscal 2025 is due to less recommended one-time spending; ongoing general fund spending is recommended to increase 6.4 percent in fiscal 2025. Additionally, the budget includes a school aid fund total of $20.7 billion, a 4.0 percent decrease from fiscal 2024’s enacted level. However, once again the decline is due to less ongoing spending; ongoing school aid spending is recommended to increase 2.7 percent. Total budget by source includes federal (42 percent), school aid (23 percent), general fund (18 percent), other state restricted (16 percent), and local private (1 percent). The budget projects general fund net tax revenue at $14.0 billion, a 3.1 percent increase from fiscal 2024. The budget recommendation calls for a $100 million deposit to the Budget Stabilization Fund, bringing the total fund balance to over $2 billion. 

Proposed Budget Highlights 

The governor’s recommended budget reflects her priorities of lowering costs, cutting red tape, reducing crime, powering economic development, ensuring every child has a high-quality education, and building a more fair, equitable Michigan. The governor noted the budget proposal reflects a return to normal and that over the last few years the state has harnessed federal stimulus funds to make strategic investments that will yield long-term results; passed a balanced budget on time every year; paid down more than $21 billion in debt; and built up a record balance in the school and state rainy day funds of nearly $2.5 billion. Key budget highlights include:

Balancing Michigan’s Budget and Cutting Red Tape

  • Pays off a “mortgage” early (certain Michigan Public School Employees’ Retirement System liabilities), freeing up $670 million that can be invested into classrooms to help children learn.
  • $100 million deposit into the Budget Stabilization Fund, which will bring the grand total in the rainy day fund to more than $2.2 billion by the end of fiscal 2025.
  • $10 million deposit into the Disaster and Emergency Contingency Fund to support immediate response and recovery activities in the event of a disaster or emergency.
  • $4.4 million to improve turnaround time and public outreach for environmental permitting.
  • $4.8 million to increase childcare facility inspections.
  • $500,000 to establish a hazard mitigation assistance program to help local governments implement projects that reduce natural disaster risks.

A Better, More Affordable Education

  • K-12 Education: $370 million to support school operations through a 2.5 percent increase in base per-pupil funding; $300 million to continue historic investments for student mental health and school safety needs; $251.2 million to help students reach their full academic potential, including continuation of payments for literacy grants and literacy coaches; $200 million to continue providing universally-free breakfast and lunch to Michigan’s 1.4 million public school students; $200 million for tutoring through the MI Kids Back on Track program; $175 million in recognition of the crucial role high-quality teachers play in the success of their students; $159 million for continued expansion of free pre-K to every 4-year-old in Michigan; $127 million to continue expanded support for special education students; $125 million to provide a 5 percent increase in funding to support academically at-risk students, English language learners, career and technical education students, and students in rural school districts; $125 million to continue reimbursements to districts for transportation costs; and $45 million for additional supports for vocational education and career and technical education.
  • Higher Education and Workforce Development: A 2.5 percent ongoing increase for university and community college operations to support higher education learning and to advance the governor’s goal of 60 percent of working adults earning a degree or skills certificate by 2030; $30 million investment to increase funding for the Michigan Achievement Scholarship; $62 million to continue Michigan Reconnect, providing a tuition-free pathway to adult learners 25 and older; $20 million increase in the Tuition Incentive Program; and $14 million for the North American Indian Tuition Waiver.

Lowering Costs

  • $37.5 million to create the Caring for MI Family Tax Credit.
  • $25 million for the MI Vehicle Rebate.
  • $500,000 to continue the federal EBT summer food benefit program.

Making it in Michigan

  • Economic Development: $500 million in continued investment in the Strategic Outreach Attraction Reserve fund; $100 million for a research and development tax credit; $60 million to establish an Innovation Fund to invest in scalable startups; $80 million to clean up contaminated sites; $25 million for the Build Ready Sites program to identify and prepare sites in Michigan for future development or redevelopment; $20 million to build off the iconic Pure Michigan campaign; $20 million for business attraction and community revitalization; $20 million to increase funding for Going Pro to further expand employer-based training; $20 million to provide specialized economic assistance to businesses locating to or expanding in Michigan; $5 million one-time and $11.1 million ongoing for the Arts and Cultural Program; $4 million for global talent and retention; and $2.5 million for the Office of Rural Prosperity.
  • Rebuilding Our Infrastructure: $700 million to authorize the final tranche of the Rebuilding Michigan Plan to fix the state’s roads; $247.6 million to improve state and local roads, highways, and bridges across the state; $150 million to support local bridge and culvert improvements; $75 million to support federal transit capital grants, marine passenger services, rail operations and transit capital matching funds; $40 million to provide loans and grants to local communities; $30 million in grant assistance for local transit agencies; and $17.1 million to reinvest in state parks.

Reducing Crime and Keeping Michigan Healthy

  • Public Safety: $11 million in statutory revenue sharing (2 percent one-time) dedicated specifically for public safety, including employee recruitment, retention, training, and equipment for first responders; hire and train 120 Michigan State Police troopers, and $5.5 million to support salary and equipment costs; $5 million to establish Training, Recruitment and Retention Grants to support local law enforcement agencies; $5.5 million for community violence intervention services to reduce gun violence and save lives; $10 million for lifecycle upgrades to the state’s safety communication system; $11.9 million to continue implementing improvements based on recommendations of the Task Force on Juvenile Justice Reform; $6.3 million for various investments to increase offender success; and $1.4 million to protect the State Capitol.
  • Public Health: $193.3 million to establish new Certified Community Behavioral Health Clinics sites across the state; $15.7 million in funding to continue the Healthy Moms, Healthy Babies program; $46 million for changes to the Family Independence Program; $24 million to provide new funds to communities that identify innovative approaches to support expectant parents and newborns; $1.8 million to ensure children have access to health care through MIChild; $15 million for the Michigan Energy Assistance Program; $5 million to help low-income households weatherize and improve the energy efficiency of their homes; $7.3 million to ensure individuals experiencing behavioral health crises have access to the Michigan Crisis and Access Line 24 hours a day, seven days a week; $5 million for smoking cessation and tobacco prevention; $1.5 million to increase the clothing and holiday allowances for children in foster care; and $500,000 for technical assistance and equipment to ensure the water is safe to drink in child care centers.

A Fairer and More Equitable Michigan  

  • $35 million to implement recommendations of the Racial Disparities Taskforce.
  • $1.5 million to fund grants to nonprofit organizations to reduce veteran homelessness.
  • $5 million to continue the MI Contracting program to assist small and disadvantaged businesses.
  • $3 million to create the Secure Retirement program, a state-managed retirement plan marketplace.
  • $2.4 million to make state government more accessible by ensuring information and materials are provided in the languages spoken by Michigan residents.
  • $800,000 for state certification, credentialing, and endorsement of approximately 1,000 interpreters serving deaf, deafblind, and hard of hearing community.