Balanced budget calls for investments to lower costs, expand MI Kids Back on Track, grow our economy  

LANSING, Mich. – Today, Governor Gretchen Whitmer released her fifth executive budget recommendation that will lower costs, grow Michigan’s economy, and build a brighter future for anyone who wants to call Michigan home. The Governor and State Budget Director Christopher Harkins outlined the proposal to a joint session of the Senate and House Appropriations committees Wednesday morning.  

The budget recommendation makes investments to support the success of Michigan students and teachers, improve the state’s infrastructure, better the health of residents, protect natural resources, and expand opportunity for families, communities, and businesses.  

“Today, I am proud to introduce my executive budget proposal to lower costs, grow our economy, and build a brighter future for anyone who wants to call Michigan home,” said Governor Whitmer. “My budget includes investments to put money back in people’s pockets, help students thrive in school, put more people on paths to higher education and good-paying jobs, rebuild our infrastructure, keep our communities safe, and improve public health. In the months ahead, I look forward to working with my partners in the legislature to deliver a balanced budget that makes a real difference in people’s lives. Let’s get it done.“  

The budget recommendation totals $79 billion and it includes a general fund total of $14.8 billion and a School Aid Fund total of $19 billion. It provides a significant amount of one-time funding while maintaining a structural balance in future years and does not utilize one-time funds for ongoing purposes.  

“Governor Whitmer’s Executive Budget Recommendation is a proposal for making Michigan a state where everyone can succeed,” said State Budget Director Christopher Harkins. “Through strategic investments we can leverage our state and federal resources to rejuvenate and reinvigorate our state. I look forward to working with the legislature over the next few months to ensure we enact a budget that makes Michigan stronger.”  

Lowering Costs 

The budget recommendation includes investments to lower costs and help Michiganders fight inflation: 

• Rolling back the retirement tax, saving half a million households $1,000 a year.  
• Expanding the Working Families Tax Credit (formerly known as the Earned Income Tax Credit, or EITC), providing 700,000 homes nearly $3,200 combined tax refunds. 
• Taking the first step toward providing pre-K for all of Michigan’s 4-year-olds, putting children on the path to a brighter future and saving families an average of $10,000 a year. 
• Providing up to a $3,000 refundable tax credit to child care and preschool teachers. 
• Temporarily pausing the Sales and Use Tax on the purchase of an electric vehicle to save families up to $2,400 off the first $40,000 off the price of an electric vehicles.  

“Access to quality child care is critical to workforce attraction and retention,” said Warren Call, President and CEO of Traverse Connect. “We are thankful to Governor Whitmer for responding to potential workforce challenges with expanding access to quality pre-K and child care and look forward to working together on potential solutions.”  

Nationwide, an estimated 25% of diabetic patients are forced to ration insulin because of the high cost – putting their health in serious jeopardy,” said Thomas Veverka, MD, Michigan State Medical Society President. “By helping lower costs for Michigan’s diabetic patients, we applaud Governor Whitmer’s efforts to help improve health outcomes and potentially save lives.”  

“General Motors is committed to its vision of a world with zero crashes, zero emissions and zero congestion and the key to reaching our vision is through electric vehicles,” said General Motors. “As we bring more affordable EVs to market, including many built here in Michigan, Governor Whitmer’s proposed plan will help to accelerate EV adoption and put more EVs on the road.”  

Education – Getting Kids Back on Track 

The budget recommendation continues historic public education investments. It includes the highest per-student investment in Michigan history for the fifth year in a row without raising taxes, landmark funding to help students and adults build critical reading skills, and free breakfast and lunch to all Michigan public school students. The budget includes:  

K-12 Education 

• $900 million deposit into a new rainy day fund for schools – funds set aside for future budgetary needs – ensuring long-term financial stability of the state’s public education system.  
• $614 million to support school operations through a 5% increase in the base per-pupil that equates to an additional $458 per student, for a total of $9,608 per pupil. 
• $318 million for school safety programs, building off existing school safety grant opportunities for districts and implementing cross-sector approaches to prevent mass violence through partnerships between schools, public safety, mental health professionals, and communities.  
• $442.4 million to help students reach their full academic potential, including expansion of existing payments for literacy grants and literacy coaches.  
• $300 million for tutoring through the MI Kids Back on Track program.  
• $300 million to continue historic investments for student mental health to ensure students needs can be identified and provided with the right support.  
• $257.3 million toward the goal of offering universal preschool to all of Michigan’s 4-year-olds, putting all children on the path to a brighter future.  
• $195 million in recognition of the crucial role high-quality teachers play in the success of their students. Including continued support for the MI Future Educator Program (which provides a tuition free path for college students to become certified teachers) and funds to retain and develop existing teachers through mentorship programs.  
• $160 million to help students thrive by providing free breakfast and lunch to all of Michigan’s 1.4 million public school students.  
• $150 million to fund matching grants for school districts to modernize their bus fleet by switching over to electric vehicles.  
• $120 million investment in various educator supports, including continuation of the MI Future Educator Fellowship, student teacher stipends and professional development.  
• $94.4 million for literacy-related programs and activities in Detroit public schools.  
• $79.9 million to continue expanded support for special education students – a 12.5% increase in the current allocation. 
• $66.5 million to provide a 5% increase in funding to support academically at-risk students, English language learners, and students in rural school districts.  
• $64.7 million increase, for a total of $812.2 million, in funding for academically at-risk, economically disadvantaged students. 
• $30 million supporting new math intervention programs. 
• $25 million for additional supports for vocational education and career and technical education equipment upgrades.  
• $4 million to establish the Nature Awaits program, providing every Michigan fourth grader with a free field trip to a state park.  

“A high-quality public education can put young Michiganders on the path to long-term success,” said David Hecker, President, AFT Michigan. “Since taking office, Governor Whitmer has delivered record investment in public education and this year is no different. Getting this bold budget across the finish line will improve every student’s on-campus and in-class experience.”  

“Kids should be focused on learning and growing in school, and for too long, too many children in Michigan have skipped meals or gone hungry,” said Oakland Schools’ Superintendent Dr. Wanda Cook-Robinson. “Governor Whitmer’s proposal to deliver free breakfast and lunch to all 1.4 million students in Michigan will save families at least $850 a year and ensure no kid goes hungry at school.”  

“Every student deserves access to personalized support to help them learn and grow,” said Michigan Education Association President Paula Herbart, a longtime teacher from Macomb County. “Gov. Whitmer’s MI Kids Back on Track program will fund tutoring, after-school programs, and other forms of one-on-one learning to help kids catch up and get back on track for long-term success.”  

“State investments in school infrastructure are a key part of improving equity and student performance,” said Peter Spadafore, executive director of the Michigan Alliance for Student Opportunity. “Governor Whitmer’s historic investment in school infrastructure will make a difference across the state, helping to ensure all students receive the high-quality education they deserve.”  

“Reducing barriers to the outdoors, especially for children from low-income families, is the first step to cultivating the next generation of environmental leaders,” said Elayne Elliott, Director of the Sierra Club Michigan Chapter. “Not only will this program laid out by the Governor ensure all children have the opportunity to experience our great Michigan outdoors, but it will also help children discover their appreciation for nature, encourage an active and healthy lifestyle, and educate future generations of 4th graders about the importance of protecting our natural resources.”    

Higher Education & Workforce Development 

• A 4% ongoing increase for university and community college operations. 
• $200 million in Infrastructure, Technology, Equipment and Maintenance (ITEM) funding to assist community colleges and universities improve existing facilities, infrastructure, and technology. 
• $140 million to temporarily lower the eligibility age for Reconnect from 25 to 21, making a tuition-free associates degree or skills training available to more Michigan residents who were impacted by the pandemic. 
• $100 million additional investment for the ongoing costs of the Michigan Achievement Scholarship, lowering costs for college students, bringing the FY24 investment to $350 million. 
• $75 million for the Reconnect Bachelor’s Degree Pathway program to provide college affordability grants to students whose education was disrupted by the pandemic. 
• $55 million for a Student Wellness Fund to help universities and community colleges improve student wellness resources on campus. 
• $35 million of additional funding for Going Pro to further expand employer-based training grants.  
• $35 million for a Retraining and Retooling fund to support small manufacturers address their workforce needs.