LANSING, Mich. (WZMQ) – State lawmakers have passed the final 2025 fiscal year budget. The $82.5 billion spending plan includes over $23 for education and millions of dollars dedicated to projects in the Upper Peninsula.
The state House of Representatives finally adjourned at 5:19 this morning. After over 19 hours of session, the lawmakers passed the $82 billion budget that will take effect on October 1.
Craig Thiel, research director for the Citizens Research Council of Michigan said that with campaign season underway for this fall’s elections and the state’s July 1 deadline approaching, the lawmakers have been pushing to finish the legislation.
“Decisions on one side often influence what happens on the other side,” Thiel said. “That’s why we often see both budgets move kind of right at the last minute.”
Representative Jenn Hill (D-Marquette) said there are a number of investments into U.P.-based projects:
- $1.6 million to maintain the current Jacobetti Veterans Home.
- $2 million in aid for the spring 2023 floods.
- $1 million for Dickinson County roads.
- $2 million for the Munising hospital.
- $1 million Mass Timber Market Development
- $1.2 million to the Ironwood Hospital to assist with ob-gyn services.
- $1 million for debt assistance for the Marquette Regional History Center.
- $1 million in debt relief for Pine Mountain Ski Jump at Veterans Park in Iron Mountain.
- $800,000 for the continuation of the state’s “cold case” investigation and training program at Northern Michigan University.
- $500,000 for the Gladstone Senior Center.
- $400,000 for track replacement at the Stephenson Sports Complex.
“We’ve covered a lot of ground with this budget. There’s also things that are coming in: Road funding, school funding, and all the other parts of state government. It is an opportunity to invest in the in michigan and make sure that we are creating communities where we’re making the investments to help build housing and support our beautiful state.” Hill said. “In the budget process, one of the amazing things is hearing about all the different pieces of the budget. There is just incredible work happening in agriculture research or in schools or in our parks and water and fisheries. It’s all connected to this beautiful state that we live in and I’m so proud to get to represent us.”
The $23 billion school budget passed first, transferring programs like Great Start Readiness to the new Department for Lifelong Education, Advancement, and Potential, and solidifying changes to the Michigan Public School Teacher’s Pension and Retirement Fund (MPSEPRS).
Both the general and education budgets passed down party lines. State Senator Ed Mcbroom and Representatives Dave Prestin and Greg Markkanen voted to oppose the fiscal year 2025 school aid and higher education budget. Representative prestin said he voted against the budget largely because of the changes to MPSERS and Other POst-Employment Benefits (OPEB)
The original bill proposed by the governor lowered the percentage the state contributes to the fund and used excess money to cover the costs of her Pre-K for All Program. Both chambers passed their own versions that differed from the governor’s plans. The Houses’ passed on Tuesday down party lines and would reduce school districts’ contributions while sending that $670 million back to school systems.
“By raiding the teacher pension fund, the Democrats are betraying retirees who have dedicated their lives to our kids. Putting former educators at risk in a time of heightened economic volatility is reckless and dangerous,” said Prestin. “Superintendents, teachers, and staff called all day to let me know that this budget is bad for their schools and colleagues. Someone needs to tell Democrats, especially ones who claim to represent the U.P., that economic responsibility doesn’t end at the kitchen table.”
Senator McBroom said the budget also failed to raise per-pupil funding. Instead, the $670 million is set to be divided among districts to supplement per-pupil funding.
“Under this budget, 2025 will be the first year we have not had a per-pupil funding increase in over a decade,” said McBroom. “With a total state budget over $81 billion, it seems inconceivable that we would be failing to increase per-pupil funding or make a debt payment into a fund that’s $30 billion in debt.
With legislation in progress to address mental health resources available to students in schools, the budget saw cuts to previously allocated resources for mental health counselors.
“This budget also lets down U.P. schools in several other ways,” said Markkanen. “More money has been spent by Democrats in Lansing in the past 12 months than ever before in Michigan’s history. This budget continues that trend, but it’s worse than just that. This time they decided to cut funding for student counseling and school building security improvement grants. Why? Apparently raiding the pension fund just wasn’t enough money, so the counselors and exterior door locks had to go too. Unbelievable.”
Speaker of the House, Representative Joe Tate (D- Detroit) said house democrats are still praising the final consensus, saying this year’s budget puts *people* first.
“As part of our commitment to prioritize teachers and schools, House Democrats took action on two pending bills, HB 5803 and SB 911. These bills return hard-earned dollars to Michigan teachers and set into statute a plan to reduce the impact of retiree costs on school employees, while also fully funding benefits.” Tate said. “The House passed a significant number of bills over the past several days and the Clerk’s office is still working to transmit all those bills. There is also still more work to be done with our colleagues in the Senate and with the Governor to determine the final version of MPSERS reform, but I am committed to continuing that conversation. House Democrats enthusiastically voted in support of these bills because we know that the school employees who worked over the past several years to help cover the costs of retirement and met their obligation deserve to see those dollars back in their paychecks.”
The representatives are now focused on summer campaigning for the August and November elections, and won’t return to the house until September.
The budget bills are now on their way to the governor’s desk for a signature, which usually occurs before the end of July.
