“This ‘Make it in Michigan’ budget will help kids learn, reduce crime, lower costs for families, and fix our roads and bridges,” said State Budget Director Jen Flood. “This budget will benefit Michiganders for decades to come and builds on our proven track record of fiscal responsibility while creating jobs and powering economic development.”  

“By making equitable and innovative investments in free community college, support for educators, enhanced healthcare services, local infrastructure, and more, we’re laying a foundation for sustainable growth and prosperity,” said Senate Appropriations Chairwoman Sarah Anthony, D-Lansing. “Together, we are building a stronger, more resilient Michigan where every resident can prosper and thrive.”  

“This budget continues our commitment to put people over politics. We are making fiscally responsible investments in communities across Michigan, ensuring our state is a place everyone can find a job, start a family, open a business and live safely,” said state Representative Angela Witwer, D-Delta Township, chair of the House Appropriations Committee. “These investments lay the groundwork to make real improvements to local infrastructure and create strong hometowns for Michiganders. Through investing in community revitalization, education and public safety, we are working to deliver stability people can depend on.”  

A total of $75 million is invested in a new revenue sharing trust fund, which supports local communities and the services they provide including first responders, transportation, and water infrastructure, as well as placemaking and recreation opportunities for residents.   

Balancing Michigan’s Budget 

The budget makes critical investments to ensure Michigan’s budget is balanced: 

• Pays off a “mortgage” early (certain Michigan Public School Employees’ Retirement System liabilities), while protecting teacher pensions and retirement benefits, freeing up $670 million that can be invested into classrooms to help children learn.  
• $50 million deposit into the Budget Stabilization Fund, which will bring the grand total in the rainy day fund to nearly $2.2 billion by the end of FY25.   
• $20 million deposit ($10 million in FY25 and $10 million in a FY24 supplemental) into the Disaster and Emergency Contingency Fund to cover current and identified expenses and safeguard against the risks of future disasters. 
• $3.3 million to improve turnaround time and public outreach for environmental permitting.  

A Better, More Affordable Education 

Record investments in education, from preschool to postsecondary, are continued, including:  

K-12 Education – Helping Kids Learn 

• $589 million spread across districts, ISDs, libraries, and community colleges to offset retirement costs. This saves K-12 districts the equivalent of more than $400 per pupil, equivalent to a 4.2% foundation allowance increase. 
• $133 million, including $25 million in new funding, to continue historic investments for student mental health and school safety needs. 

• $181 million to help students reach their full academic potential, including continuation of payments for literacy grants and literacy coaches. 
• $200 million to continue providing universally-free breakfast and lunch to Michigan’s 1.4 million public school students, helping students focus on learning and saving families $850 per year. 
• $130 million for continued expansion of free pre-K to every 4-year-old in Michigan-two years ahead of schedule-saving families $10,000 a year. 

• $54 million to serve an estimated 5,300 additional children. 
• $31 million to increase the full day per child allocations to $10,185. 
• $25 million to open new classrooms in underserved areas. 
• $18 million to continue higher payments for student transportation (total funding of $28 million). 
• $2 million to provide marketing and outreach support to ensure families are aware of programming options in their area.  

• $100 million in recognition of the crucial role high-quality teachers play in the success of their students. 

• Continued support of the MI Future Educator Program, a tuition-free program for college students to become certified teachers and to provide stipend payments to student teachers. 
• Funds to retain and develop existing teachers through mentorship programs. 
• Continued support for payments to offset the cost of student loans for educators. 

• $97 million in funding to support academically at-risk students (9% increase), English language learners (26% increase), career and technical education students (6% increase), and students in rural school districts (6% increase). 
• $125 million to continue reimbursements to districts for transportation costs, helping ease the disproportionate financial impact some districts face-freeing up dollars available for the classroom. 
• $75 million to support students through before and after school programming. 
• $65 million to fund a 15% rate increase for childcare and bonuses for childcare workers.  

Higher Education & Workforce Development  

• A 1.5% ongoing and a 1% one-time increase for university and community college operations to support higher education learning and to advance the Governor’s goal of 60% of working adults earning a degree or skills certificate by 2030.  
• $30 million investment to increase funding for the Michigan Achievement Scholarship, the state’s flagship scholarship program, providing a pathway to community college, tuition guaranteed. 

• Expands the Michigan Achievement Scholarship with the Michigan Guarantee to ensure every Michigan high school graduate can receive an associate degree or skilled certificate tuition-free at a community college, saving more than 18,000 students up to $4,820 on tuition each year. 
• Equivalent of up to $27,500 toward the cost of attendance for a bachelor’s degree for eligible high school graduates. 

• $52 million to continue Michigan Reconnect, providing a tuition-free pathway to adult learners 25 and older. 

• $20 million increase in the Tuition Incentive Program, which provides tuition support to lower income students in Michigan’s community colleges, public universities, and private universities. 
• $14.5 million for the North American Indian Tuition Waiver, to provide tuition-free education to eligible Native Americans at Michigan public universities and community colleges.  

Lowering Costs