Michigan budget finally signed: $81 billion package is now official
Michigan lawmakers approve $81 billion budget
The budget totals about $81 billion. Life is expensive right now everywhere, and Michigan is no exception. Based on the MIT Living Wage Calculator, for a single adult in Michigan, the "living wage" is estimated at $20.97 an hour. For two adults with one working parent and one child, it?s almost $36. A hot topic is the 24% tax on wholesale marijuana.
(FOX 2) - The Michigan governor signed the state's new $81 billion budget into law after several months of negotiations between the Senate Democrats and House Republicans.
The balanced budget was approved by lawmakers days after the deadline, requiring short-term funding to avoid a shutdown that would have been a first in decades for Michigan.
The FY 2026 budget includes $2 billion for roads and hundreds of millions more for other infrastructure improvements, $26 million for future projects at Selfridge Air National Guard Base, another $150 million for recovery efforts following a devastating ice storm up north, and just under $30 billion in money for Medicaid.
The state is also funding Rx Kids, a program that will help newborns have access to resources to ensure they have a healthy and secure upbringing.
One of the biggest chunks of funding will go to schools, including $19.5 billion for the School Aid Fund.
That includes free pre-K schooling, $248 million for Michigan's free breakfast and lunch program, and a $442 increase in per-pupil funding. Public schools will now receive $10,050 per enrolled student.
Another $1.8 billion will go to supporting the state's 15 public universities, as well as another $375 million for Michigan's 28 community colleges.
Lawmakers approve marijuana tax hike to fund Michigan road construction
Michigan buys more marijuana than almost any other state - would could lead to hundreds of millions of dollars in new revenue.
What they're saying:
The governor celebrated having a balanced budget she said "delivers on kitchen table issues" while also dedicating funding to improving infrastructure and ensuring health care services have money as well.
"Amidst so much uncertainty caused by a chaotic tariff strategy and a national government shutdown, Michigan is showing everyone how to get things done," she said. "In the weeks and months ahead, we will build on this momentum and come together on commonsense tools to create and retain good-paying jobs."
Republican state House Speaker Matt Hall said it was time to "rein in" government spending.
"This budget makes a significant difference in eliminating waste, fraud and abuse to lower state spending and give the taxpayers better value for their dollars," Hall said. "That’s how we were finally able to get our local roads fixed and pass the public safety trust fund, all while eliminating taxes on tips, overtime and social security. You can do a lot when you take the time to evaluate state spending and set better priorities."
The Source: A news release from the governor's office and previous reporting was cited for this story.