LANSING, Mich. (WZMQ) – Michigan House Republicans on Thursday unveiled a $75.8 billion budget proposal for the 2026-27 fiscal year, emphasizing cuts to what they describe as wasteful spending while maintaining funding for major priorities like education, infrastructure, and health care.
House Speaker Matt Hall and Appropriations Chair Ann Bollin say their plan is roughly $100 million smaller than the current budget. However, the lawmakers referred to the current budget plan as a $78 billion plan, even though the final total is closer to $84 billion. Still, Republican leaders say it reflects a shift toward budgeting based on actual spending rather than projected amounts.
“If you just take the highest actual spend over the last three years in every line item, you can cut two billion dollars of waste, fraud, and abuse out of this budget and not cut one thing,” Hall said during a press conference.
Hall says the House plan includes a $250 increase in per-pupil funding, bringing the foundation allowance to $10,300 per student, along with continued funding for universal school meals. It also allocates $800 million to fully fund Medicaid and $150 million for literacy programs aimed at improving reading proficiency.
Infrastructure remains a major focus, with an additional $100 million for roads on top of last year’s $2 billion investment. The plan also increases revenue sharing for local governments by $75 million and adds funding for public safety initiatives, including a new state police training class.
Republicans say they identified roughly $2 billion in excess spending by reviewing past expenditures, including the elimination of thousands of vacant positions they call “ghost employees.” Hall said the budget removes funding for approximately 3,300 such positions, saving about $500 million.
The proposal also calls for a $300 million deposit into the state’s rainy day fund, rejecting calls from some Democrats to use savings to close potential budget gaps.
“This is not a rainy day,” Hall said. “We don’t need to plug holes by taking money from savings; we can do it by budgeting responsibly.”
The budget reduces or eliminates funding for several programs, including some economic development initiatives and departmental spending increases. Republicans argue that those cuts target inefficiencies, while critics are expected to raise concerns about their impact.
The House plan differs sharply from proposals put forward by Democrats and Gov. Gretchen Whitmer, setting the stage for negotiations in the coming weeks as the Senate prepares its own version. Lawmakers must reach a final agreement before July 1.
