LANSING, Mich. (WZMQ) – The first draft of Michigan’s 2025 fiscal year budget has been submitted to the legislature by the Michigan Budget Office. Governor Gretchen Whitmer and the state budget directors presented their outline to a joint Appropriations Committee Wednesday morning.
Most of what the Governor presented expanded on issues she first outlined in this year’s State of the State. The budget proposal focused on lowering costs and outlining the ways she hopes to invest in state programs to keep expenses down for Michigan families. That list included items like a $1.4 billion investment into housing, zero-dollar healthcare premiums for the Mi Child Plan, and a free childcare program for childcare providers.
Before the State of the State, the Consensus on Revenue Estimates Conference starts the budget-making process by assessing the state profits for the year. Jen Flood, Director of the Michigan Budget Office said that the experts at the revenue conference confirmed Michigan’s economy is strong, incomes are growing, unemployment is at historic lows, inflation is slowing down, and revenues are up.
Last month’s revenue estimates committee meeting set the state assets at $32.33 billion as a base for the lawmakers to work with. During the presentation, the Governor and budget directors specified their proposals to use that revenue to build ten thousand homes, lower prescription drug and healthcare costs, and prioritize education from pre-k through community college.
“As I said in my state of the state, we have a heck of a record. so let’s build on it by enacting another balanced, bipartisan, and fiscally responsible budget.” Governor Whitmer said. “It’s hard to buy a house, afford a car, or save for retirement while keeping up with bills. no matter who you are or where you come from, if you work hard, you should be able to provide for your family and have a fair shot at a better future.”
The Governor explained that some of the extra funding had been freed up by paying off state debt ahead of schedule, about $670 million worth of funding from paying off portions of the Michigan Public School Employees Retirement System (MiPSERS).
Committees will now begin their work putting together the legislation to address the proposed budget programs. The Michigan Budget Office set a tentative deadline of June 30th for their final submission, but the next fiscal year begins October 1st, and the state legislature has until that final deadline to approve the final budget.
