Michigan House passes $75B state budget overnight with no new tax increases

LANSING, Mich. (FOX 2) - Lawmakers in Lansing have passed a $75 billion state budget with no new tax increases for the fiscal year after an overnight session.

Big picture view:

The newly passed budget, estimated to be $10 billion less than last year's, expands investments in places like education, roads and infrastructure, Medicaid, mental health and public safety, while reducing unnecessary spending, according to House Republicans.

"We didn't come to Lansing to rubber stamp another spending binge," said State Rep. Matt Maddock. "We came here to protect taxpayers, expose waste, and hold government accountable. This budget reflects that fight from beginning to end."

Lawmakers say the budget prevents around $800 million in tax increases while also protecting the state's ‘Rainy Day’ fund.

Government Accountability Measures

House Republicans say the budget eliminates the funding of additional "ghost employee" positions, described as state jobs that receive funding each year but remain vacant and are never filled.

According to the GOP, departments have been able to redirect the unused salary funding for these unfilled positions to other priorities without sufficient public transparency.

The budget, according to lawmakers, removes funding for 250 additional vacant positions.

Michigan Education

Education in the state was kept at a high priority in the 2027 budget, with school funding increasing to $250 per pupil with a foundation allowance increase to $10,300 per student.

Funding will also be continued for:

Universal breakfast
Universal lunch
School safety
Student mental health
School resource officers
Teacher bonuses
Transportation
Dual enrollment
Science of Reading curriculum
Literacy programs
Teacher training

Lawmakers say it also adds $50 million for tutoring students needing additional academic support.

The budget also gives districts experiencing declining enrollment a three-year enrollment adjustment.

Public Safety Investments

Law enforcement throughout the state received additional funding while the Public Safety Trust Fund receives $10 million.

Additional funding includes:

Funding for school resource officers
Youth mental health treatment facility
Local police equipment

State Health Care, Mental Health & Medicaid

The state budget adds $1 billion to Medicaid, fully funding growing caseloads. Lawmakers say this includes anti-fraud measures, proposed work requirements and sustainability reforms.

For mental health resources, the budget invests in:

Community mental health
Youth mental health facilities
Mobile crisis services

Infrastructure and Utilities

Major investments will continue in Michigan roads, bridges, water systems and college infrastructure.

The budget also invests in new languages that require the Michigan Public Service Commission to better explain utility rate increase decisions to legislators. Lawmakers cited roughly $1 billion in utility rate increases approved since 2023.

They later say their goal is greater transparency and more oversight of future rate requests.