LANSING, Mich. (WZMQ) – Lawmakers have months of work ahead as they begin crafting the bills for the 2026 fiscal year. State Budget Director Jen Flood and Deputy Director Kyle Guerrant presented a record-breaking state proposal, totaling $83.5 billion to a joint session of both the House and Senate Appropriations Committees this morning.
Flood said they’re focused on lowering costs by doubling down on existing programs, rather than introducing new ones. Michigan schools are budgeted to receive $10,000 per pupil, a $392 increase per student. the proposal also pays down $3 million in state debt, for a total of $25 million paid off since Whitmer took office.
The budget also works toward paying off debts and adding to the rainy day fund. The proposal would leave $18 million in the state’s school aid fund and $11 million in the general funds. Flood said those numbers are standard and don’t account for the $2.8 billion in the state’s rainy day fund.
However, lawmakers were more focused on concerns that the state would go without federal funding, meaning the budget would need to be redone completely.
41% of the 2026 budget is federal funding, that’s $34.8 billion in limbo. Those federal dollars usually fund child care, food assistance, and medical insurance.
Despite the budget totaling 83 billion, a new road funding plan was excluded from the proposal. Last year, Governor Gretchen Whitmer asked the legislature to pass a new plan to fund local roads as her ‘Fix the damn roads’ bond plan phases out. The legislature failed to pass its own plan before the end of last year, now Whitmer is expected to roll out her own next week.
Also absent from the budget presentation was Governor Whitmer herself. The Governor spent the day at Grand Rapids Community College, celebrating four years since the launch of the Michgian Reconnect Scholarship.
The legislature usually completes the budget bills by July. The schedule leaves time for agencies, schools, and grant recipients to create their budgets knowing the amount they’ll receive from the state.
With no road funding and federal aid in question, the lawmakers say there will be a lot of work in the coming months to create multiple plans and be prepared for any situation. Lawmakers now have until the end of September to complete the final bills that will fund the state starting October 1st. House Republicans have already said they’ll work on the bills until the end of September to make sure it’s done right.
