{"id":72637,"date":"2026-02-11T15:38:11","date_gmt":"2026-02-11T20:38:11","guid":{"rendered":"https:\/\/bridgemi.com\/?p=72637"},"modified":"2026-02-11T16:17:33","modified_gmt":"2026-02-11T21:17:33","slug":"gretchen-whitmer-pitches-88b-budget-what-it-means-for-michiganders-schools","status":"publish","type":"post","link":"https:\/\/bridgemi.com\/michigan-government\/gretchen-whitmer-pitches-88b-budget-what-it-means-for-michiganders-schools\/","title":{"rendered":"Gretchen Whitmer pitches $88B budget. What it means for Michiganders, schools"},"content":{"rendered":"\n<ul class=\"wp-block-list\">\n<li><strong>Gov. Gretchen Whitmer\u2019s administration unveiled its final budget proposal of her term Wednesday, a $88 billion spending plan<\/strong><\/li>\n\n\n\n<li><strong>It calls for investments in literacy tutors, pulling money out of the state\u2019s &#8216;rainy day<\/strong>&#8216;<strong> fund and new <\/strong>&#8216;<strong>sin&#8217; taxes to help pay for some of it<\/strong><\/li>\n\n\n\n<li><strong>House Republicans criticize some of Whitmer\u2019s proposals, including the return of a tax on vaping products and tobacco<\/strong><\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-wide\"\/>\n\n\n\n<p>LANSING \u2014 Michigan Gov. Gretchen Whitmer on Wednesday unveiled a record-setting $88 billion state budget plan, proposing to tap the state\u2019s \u201crainy day\u201d fund and raise \u201csin\u201d taxes to fund key initiatives next fiscal year.&nbsp;<\/p>\n\n\n\n<p>The <a href=\"https:\/\/www.michigan.gov\/budget\/-\/media\/Project\/Websites\/budget\/Fiscal\/Executive-Budget\/FY27-Exec-Rec\/Executive-Budget\/FY27-Budget-Book.pdf?rev=f6aca2af305b4405bf4e5128dfbe978b&amp;hash=73A97B6A1F2347CC415D1692D85629AC\">executive budget proposal<\/a>, Whitmer\u2019s last before term limits force her out of office, is significantly larger than the roughly $81 billion law she signed in October, and would be a 54% jump from the $57 billion budget signed the year before she took office, without adjusting for inflation.&nbsp;<\/p>\n\n\n\n<p>Beyond the new spending, Whitmer is also proposing a pair of targeted tax cuts: A 10% property tax reduction for seniors, and a sales tax \u201choliday\u201d to help families purchase school supplies.<\/p>\n\n\n\n<p>\u201cThis is a budget that helps Michiganders save money, improve student literacy, protects access to health care and sets Michigan up for long-term success,\u201d State Budget Director Jen Flood told House and Senate lawmakers Wednesday, as part of the administration\u2019s budget presentation.&nbsp;<\/p>\n\n\n\n<p><strong>Related:&nbsp;<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/bridgemi.com\/michigan-government\/gretchen-whitmer-seeks-625m-for-literacy-tax-holiday-for-school-supplies\/\"><strong>Whitmer seeks $625M for literacy, tax \u2018holiday\u2019 for school supplies<\/strong><\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/bridgemi.com\/michigan-government\/tough-decisions-coming-as-michigan-faces-1-billion-budget-hole\/\"><strong>\u2018Tough decisions\u2019 coming as Michigan faces $1 billion budget hole<\/strong><\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/bridgemi.com\/michigan-government\/whitmer-signs-classroom-smartphone-ban-for-michigan-schools-what-to-know\/\"><strong>Whitmer signs classroom smartphone ban for Michigan schools<\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<p>The governor\u2019s proposal is the opening salvo in what will be a months-long process. The Republican-led House and Democratic-led Senate will propose their own budgets later this year, and the three camps will attempt to negotiate a final deal by summer \u2014 or the Oct. 1 constitutional deadline.<\/p>\n\n\n\n<p>The final budget will likely be significantly smaller than the $88 billion version pitched by Whitmer, who is proposing to use $400 million from the state\u2019s so-called rainy day fund and about $800 million in new taxes on vapes, tobacco, digital advertising and more to cover rising Medicaid costs.<\/p>\n\n\n\n<p>Economists last month told state officials to expect about <a href=\"https:\/\/bridgemi.com\/michigan-government\/tough-decisions-coming-as-michigan-faces-1-billion-budget-hole\/\">$1 billion less<\/a> to work with as they build budgets over the next two years, primarily because of federal tax law changes and the state\u2019s new road funding law. <strong>&nbsp;<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" data-attachment-id=\"72642\" data-permalink=\"https:\/\/bridgemi.com\/michigan-government\/gretchen-whitmer-pitches-88b-budget-what-it-means-for-michiganders-schools\/attachment\/043025_matt-hall_hermani\/\" data-orig-file=\"https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/043025_Matt-Hall_Hermani-scaled.jpg?fit=2560%2C1707&amp;ssl=1\" data-orig-size=\"2560,1707\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;5.6&quot;,&quot;credit&quot;:&quot;AARON LEONARD&quot;,&quot;camera&quot;:&quot;Canon EOS REBEL T5i&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1746016836&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;135&quot;,&quot;iso&quot;:&quot;6400&quot;,&quot;shutter_speed&quot;:&quot;0.00625&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"043025_Matt Hall_Hermani\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;Michigan House Speaker Matt Hall, R-Richland Township, said he will not take up new \u201csin\u201d taxes called for in Gov. Gretchen Whitmer\u2019s proposed budget on Wednesday, arguing that raising taxes was \u201csomething we&amp;#8217;re not going to do.\u201d (Jordyn Hermani\/Bridge Michigan)&lt;\/p&gt;\n\" data-medium-file=\"https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/043025_Matt-Hall_Hermani-scaled.jpg?fit=300%2C200&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/043025_Matt-Hall_Hermani-scaled.jpg?fit=1024%2C683&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/043025_Matt-Hall_Hermani.jpg?resize=1024%2C683&#038;ssl=1\" alt=\"Matt Hall\" class=\"wp-image-72642\" srcset=\"https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/043025_Matt-Hall_Hermani-scaled.jpg?resize=1024%2C683&amp;ssl=1 1024w, https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/043025_Matt-Hall_Hermani-scaled.jpg?resize=300%2C200&amp;ssl=1 300w, https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/043025_Matt-Hall_Hermani-scaled.jpg?resize=768%2C512&amp;ssl=1 768w, https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/043025_Matt-Hall_Hermani-scaled.jpg?resize=1536%2C1024&amp;ssl=1 1536w, https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/043025_Matt-Hall_Hermani-scaled.jpg?resize=2048%2C1365&amp;ssl=1 2048w, https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/043025_Matt-Hall_Hermani-scaled.jpg?resize=1200%2C800&amp;ssl=1 1200w, https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/043025_Matt-Hall_Hermani-scaled.jpg?resize=2000%2C1333&amp;ssl=1 2000w, https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/043025_Matt-Hall_Hermani-scaled.jpg?resize=780%2C520&amp;ssl=1 780w, https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/043025_Matt-Hall_Hermani-scaled.jpg?resize=400%2C267&amp;ssl=1 400w, https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/043025_Matt-Hall_Hermani-1024x683.jpg?w=370&amp;ssl=1 370w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><figcaption class=\"wp-element-caption\">Michigan House Speaker Matt Hall, R-Richland Township, said he will not take up new \u201csin\u201d taxes called for in Gov. Gretchen Whitmer\u2019s proposed budget on Wednesday, arguing that raising taxes was \u201csomething we&#8217;re not going to do.\u201d (Jordyn Hermani\/Bridge Michigan)<br><\/figcaption><\/figure>\n\n\n\n<p>Republicans control the state House, and quickly made clear they will not support some of the Democratic governor\u2019s proposals.<\/p>\n\n\n\n<p>\u201cNo responsible budget proposal should pull from a rainy day fund. We purposefully put ourselves in this situation,\u201d House Speaker Matt Hall, R-Richland Township, said earlier Wednesday.&nbsp;<\/p>\n\n\n\n<p>Revenue projections suggest the state must reduce spending, Hall added, saying he was \u201cshocked\u201d the administration\u2019s proposed solution is \u201craiding the rainy day fund and raising taxes \u2014 something we&#8217;re not going to do.\u201d<\/p>\n\n\n\n<p>In her final budget proposal, Whitmer is seeking millions in one-time payments for operations at Michigan&#8217;s 15 public universities and more spending on K-12 classrooms, with an emphasis on literacy and improving the state\u2019s low student performance on standardized tests.<\/p>\n\n\n\n<p>Here\u2019s what to know.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Literacy<\/strong> push<\/h2>\n\n\n\n<p>Reading proficiency scores for Michigan\u2019s third-graders are <a href=\"https:\/\/bridgemi.com\/talent-education\/michigan-schools-are-floundering-how-some-buck-the-trend-improve-literacy\/\">at record lows<\/a>, prompting bipartisan concern from lawmakers and the governor, who has vowed that addressing the state\u2019s literacy crisis will be her \u201c<a href=\"https:\/\/bridgemi.com\/talent-education\/whitmer-says-solving-literacy-crisis-in-michigan-remains-her-no-1-priority\/\">No. 1 priority<\/a>\u201d during her final year in office.&nbsp;<\/p>\n\n\n\n<p>Among Whitmer\u2019s new budget proposals:<br><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>$100 million for \u201chigh impact tutoring,\u201d and\u00a0 $100 million in grants for school districts to purchase and implement curricula<\/li>\n\n\n\n<li>$50 million for teacher training on the \u201cscience of reading\u201d\u00a0<\/li>\n\n\n\n<li>$30 million for \u201cearly learning partnerships\u201d\u00a0<\/li>\n\n\n\n<li>$10.5 million for more literacy coaches at intermediate districts<\/li>\n\n\n\n<li>$6 million to continue \u201cliteracy essentials programs\u201d to improve instruction and facilitate a statewide network of literacy coaches\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>New taxes to support Medicaid<\/strong><\/h2>\n\n\n\n<p>With Medicaid costs projected to continue to climb but federal resources expected to decline because of President Donald Trump\u2019s \u201cbig, beautiful\u201d law, Whitmer is <a href=\"https:\/\/bridgemi.com\/michigan-government\/gretchen-whitmer-raise-800m-taxing-nicotine-gambling-and-ads-for-medicaid\/\">proposing a slew of new taxes<\/a> to support the health care program for lower-income residents.&nbsp;<\/p>\n\n\n\n<p>Among them: Raising cigarette taxes from $2 to $3 a pack, a new vape tax, higher taxes on casinos and sports betting, and a new tax on digital advertising. <a href=\"https:\/\/bridgemi.com\/michigan-government\/gretchen-whitmer-raise-800m-taxing-nicotine-gambling-and-ads-for-medicaid\/\">Read more about the proposal here<\/a>.&nbsp;<\/p>\n\n\n\n<p>Hall, the Republican House speaker, made clear he is <a href=\"https:\/\/bridgemi.com\/michigan-government\/gretchen-whitmer-raise-800m-taxing-nicotine-gambling-and-ads-for-medicaid\/\">not going to support <\/a>the proposed tax increases: \u201cWe&#8217;re not going to do any of that,\u201d Hall said in a press conference before the governor\u2019s proposal was formally unveiled.<\/p>\n\n\n\n<p>While not a tax, per se, the administration is also <a href=\"https:\/\/mail-attachment.googleusercontent.com\/attachment\/u\/0\/?ui=2&amp;ik=ee10510540&amp;attid=0.1&amp;permmsgid=msg-f:1792700776632205177&amp;th=18e0f3dbb3babf79&amp;view=att&amp;disp=inline&amp;realattid=f_ltej21oi1&amp;sadnir=1&amp;saddbat=ANGjdJ_oPJM-W4c5Z8TsbGCQhG-iQu_t9AKVZmEkS6vJGKwgOx911Njyz7O6lIBUb0P9kmrgh8RtX9aWUb6eCDXsCuTW9CcQ7YPq4gJe2u_nEhDt5Poph0jAFczD17QqpYbdNXzrYTUrgsmihjxMauQ0XrpQIhB1lkg0XI-1xCJUO6FfqguDb2wVWs9Cnay5UHZ7_abaaUIccN1vf2nenZ0A_79kzJyo0hMPssXFasXS6S59yK0saL4ms_OGd_3OSVhXj89_23Lbx0rAw1qgq425C-QZbb-PQ4A11PR8hLVc5JKKbejKZ8XPR_tCys_c0xdntwqPQIa2jYMECUDQG3okbn49s7YE--xhNx4Y96U-HgZlxRdGMK7u-Ye5okvZcmlKOCAF1L41FuoX7YA7v-TXVAYPYU_KrNfRzd-98nMVdjPkqpxqjje2YX3mVkx7zdcJtCEXrWrCjRjMB1Lb5WydfWx5oxwOE2mA6CxnSVvWPx3gIURAkcaAWMF09_C29JnK2MoO0d1QQsCMDs6tZR4IMaQAeJcAmm2xjRn92YbQVuc64Ygj7F8scxxS9TnUwAHK3WMznL7D8Sj_BVMpOi58jPw89vhJu9e9IJoT1WbYuvJlvoZxgBArV84KrbfJnQG25coZc6QylXdRo5-Om6yGMSNFvby1yepqppfXZ-NnspYd_DPYXX17-ido0ukjuXFN8QyYh_nf94quHANwfSpqg17uYhXieSrYWodnbqa4GoF5QkYHqAFZ00U_6bHEw42RcAQZkjiSCaPzMDoGXoiAxwUvV1UXWbNv9CFz-guKx0QKQkO6B-_owQk79nrC76wG_kchU6GUCYpRTshXI9AAfyJtpH9DasYJMM_rOFb7aVurpmnodf4DTmb5ZVE29fiXSVITPGg_Cf5ZKRGFijiO2sG-A7oNn5jFeRS7RKeo-yVZxlL8pWMwC2EngVBnAADOUFubeV6nLHvopfMCKwGm4naE7VZEyp7v1ZvtVqCapMoX_cuKarKJ6Vp19gxC5NRjJQtl4FOwMA9GbUcov_tlV2QI2jdldqGJ87VSUo0pXkALCtDpNea1fGGUWlcrzMil_6tW-SnKRVOrJqAA-2ifZl9OsEX2ffmUd9tVDjocesA4vbssT-N6D4ktDBI\">renewing calls<\/a> to raise Michigan\u2019s landfill dumping fees. Michigan has more trash in landfills per resident than anywhere else in the country, <a href=\"https:\/\/bridgemi.com\/michigan-government\/michigan-no-1-trash-whitmer-wants-higher-fees-curb-imports\/\">according to a 2025 study<\/a>, due in part to the low rates it charges to take waste: Just $0.36 cents per ton.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>\u2018Big, beautiful\u2019 bill costs<\/strong><\/h2>\n\n\n\n<p>The \u201cbig, beautiful\u201d law could also have other big impacts on the Michigan budget. New cost-sharing rules are projected to cost the state nearly <a href=\"https:\/\/bridgemi.com\/michigan-government\/federal-food-assistance-changes-taking-95m-bite-out-of-michigan-budget\/\">$100 million<\/a> next fiscal year.&nbsp;<\/p>\n\n\n\n<p>Whitmer is proposing at least $223 million in related spending, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>$94 million to offset increased cost sharing requirements for the Supplemental Nutrition Assistance Program (SNAP)<\/li>\n\n\n\n<li>$80 million for additional 589 full-time employees to cover what the Whitmer administration calls \u201cworkload increases resulting from new requirements\u201d in the federal law. That would include new assistance payment workers, Office of Inspector General agents, departmental analysts, supervisors and more\u00a0<\/li>\n\n\n\n<li>$16.7 million to increase access to benefit help-line services and educate recipients on the federal changes<\/li>\n\n\n\n<li>$30 million to help Medicaid and SNAP recipients to meet federal work requirements and \u201cmaintain access to their benefits.\u201d That would include $25 million for workforce development and training, along with $5 million for registered apprenticeships.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>More student funding, free lunches<\/strong><\/h2>\n\n\n\n<p>Whitmer\u2019s budget proposal includes $325 million to raise the K-12 school funding foundation allowance from $10,050 to $10,300 per pupil. Cyber schools should get less \u2014 $8,240 per pupil \u2014 because of \u201clower fixed costs,\u201d she suggested, an argument lawmakers have previously rejected.<\/p>\n\n\n\n<p>The proposal also includes $200 million to continue a universal free school meal program launched under Whitmer, and $143 million to continue universal free pre-K, also launched under Whitmer.&nbsp;<\/p>\n\n\n\n<p>\u201cThe foundation for long term success begins before kindergarten,\u201d said Deputy State Budget Director Kyle Guerrant.&nbsp;<\/p>\n\n\n\n<p>The governor also continues to push for more \u201cweighted\u201d funding for schools with more rural or economically disadvantaged students, English language learners, pre-K and vocational students. Her proposal includes an additional $128 million for those schools, a 6% increase.&nbsp;<\/p>\n\n\n\n<p>She\u2019s also proposing another $125 million for districts with declining enrollment, and $125 million to help schools pay for transportation.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"788\" data-attachment-id=\"72643\" data-permalink=\"https:\/\/bridgemi.com\/michigan-government\/gretchen-whitmer-pitches-88b-budget-what-it-means-for-michiganders-schools\/attachment\/021126_jen-flood-close-up_jh\/\" data-orig-file=\"https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/021126_Jen-Flood-Close-Up_JH-scaled.jpeg?fit=2560%2C1969&amp;ssl=1\" data-orig-size=\"2560,1969\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"021126_Jen Flood Close Up_JH\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;State Budget Director Jen Flood defended Gov. Gretchen Whitmer\u2019s $88.1 billion budget during a legislative presentation on Wednesday, saying the proposed spending plan \u201chelps Michiganders save money, improve student literacy, protects access to health care, and sets Michigan up for long-term success.\u201d(Jordyn Hermani\/Bridge Michigan)&lt;\/p&gt;\n\" data-medium-file=\"https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/021126_Jen-Flood-Close-Up_JH-scaled.jpeg?fit=300%2C231&amp;ssl=1\" data-large-file=\"https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/021126_Jen-Flood-Close-Up_JH-scaled.jpeg?fit=1024%2C788&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/021126_Jen-Flood-Close-Up_JH.jpeg?resize=1024%2C788&#038;ssl=1\" alt=\"Jen Flood\" class=\"wp-image-72643\" srcset=\"https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/021126_Jen-Flood-Close-Up_JH-scaled.jpeg?resize=1024%2C788&amp;ssl=1 1024w, https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/021126_Jen-Flood-Close-Up_JH-scaled.jpeg?resize=300%2C231&amp;ssl=1 300w, https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/021126_Jen-Flood-Close-Up_JH-scaled.jpeg?resize=768%2C591&amp;ssl=1 768w, https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/021126_Jen-Flood-Close-Up_JH-scaled.jpeg?resize=1536%2C1182&amp;ssl=1 1536w, https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/021126_Jen-Flood-Close-Up_JH-scaled.jpeg?resize=2048%2C1576&amp;ssl=1 2048w, https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/021126_Jen-Flood-Close-Up_JH-scaled.jpeg?resize=1200%2C923&amp;ssl=1 1200w, https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/021126_Jen-Flood-Close-Up_JH-scaled.jpeg?resize=2000%2C1539&amp;ssl=1 2000w, https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/021126_Jen-Flood-Close-Up_JH-scaled.jpeg?resize=780%2C600&amp;ssl=1 780w, https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/021126_Jen-Flood-Close-Up_JH-scaled.jpeg?resize=400%2C308&amp;ssl=1 400w, https:\/\/i0.wp.com\/bridgemi.com\/wp-content\/uploads\/2026\/02\/021126_Jen-Flood-Close-Up_JH-1024x788.jpeg?w=370&amp;ssl=1 370w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><figcaption class=\"wp-element-caption\">State Budget Director Jen Flood defended Gov. Gretchen Whitmer\u2019s $88.1 billion budget during a legislative presentation on Wednesday, saying the proposed spending plan \u201chelps Michiganders save money, improve student literacy, protects access to health care, and sets Michigan up for long-term success.\u201d(Jordyn Hermani\/Bridge Michigan)<br><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Higher ed scholarships<\/strong><\/h2>\n\n\n\n<p>The Whitmer administration is calling for $52.3 million in new one-time payments to boost operations funding for Michigan&#8217;s 15 public universities.<\/p>\n\n\n\n<p>That comes as part of an overall 11% increase in the higher education budget. Much of that new spending would be focused on expanding scholarship programs, including:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>$232 million in extra funding for the Michigan Achievement Scholarship, which offers students up to $5,500 a year for four-year colleges and is part of the state\u2019s free community college program started under Whitmer<\/li>\n\n\n\n<li>$26.5 million more for the Tuition Incentive Program, which helps lower-income students get associate degrees<\/li>\n\n\n\n<li>$25 million more for Michigan Reconnect, which would allow the state to permanently lower the eligibility age to 21 for the program, which currently provides scholarships to residents 25 years or older who do not have a degree.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Tapping rainy day and School Aid funds<\/strong><\/h2>\n\n\n\n<p>Whitmer is proposing to increase spending, in part, by using $400 million from the Budget Stabilization Fund, the rainy day savings account that she has grown during much of her tenure.&nbsp;<\/p>\n\n\n\n<p>As of January, there was <a href=\"https:\/\/sfa.senate.michigan.gov\/Publications\/BudUpdates\/EconomicOutlook_MostRecent.pdf\">about $2.2 billion<\/a> in the fund, up from <a href=\"https:\/\/www.michigan.gov\/budget\/budget-offices\/ofm\/faq-pages\/state-finances\/what-is-the-rainy-day-fund-and-how-much-does-the-state-have-in-the-fund\">about $1.1 billion<\/a> when Whitmer took office in 2019.&nbsp;<\/p>\n\n\n\n<p>Hall, the Republican House speaker, made clear he does not support the proposed rainy day withdrawal.<strong>&nbsp;<\/strong><\/p>\n\n\n\n<p>Officials should instead cut state spending, Hall argued, saying officials knew that was a possibility when they passed new laws last year to&nbsp;<\/p>\n\n\n\n<p>exempt tips and overtime pay from taxation <a href=\"https:\/\/bridgemi.com\/michigan-government\/michigan-taxes-on-tips-overtime-social-security-to-end-for-three-years\/\">for three years<\/a> and devote other tax revenue to <a href=\"http:\/\/bridgemi.com\/michigan-government\/road-funding-101-what-to-know-about-michigans-2b-deal\/\">road repairs<\/a> as part of a $2 billion plan.&nbsp;<\/p>\n\n\n\n<p>The governor is also proposing to spend more School Aid Fund money on community colleges and universities, continuing what critics call a K-12 diversion that began nearly two decades ago under then-Gov. Jennifer Granholm, a Democrat, and continued under former Gov. Rick Snyder, a Republican.&nbsp;<\/p>\n\n\n\n<p>Whitmer\u2019s executive budget proposes spending $525 million in School Aid Fund revenue on community colleges, and nearly $1.3 billion on universities. The combined total of $1.8 billion would top the $1.3 billion in the current year budget.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Property tax break for seniors<\/strong><\/h2>\n\n\n\n<p>One of the handful of <a href=\"https:\/\/bridgemi.com\/michigan-government\/gretchen-whitmer-seeks-625m-for-literacy-tax-holiday-for-school-supplies\/\">policies to leak<\/a> ahead of Wednesday\u2019s budget presentation: Property tax relief for seniors. Whitmer\u2019s budget calls for allowing seniors 65 and older to apply for a property tax refund of up to 10%. It\u2019s estimated to cost the state $90 million next year.<\/p>\n\n\n\n<p>\u201cAt its core, this proposal is about helping seniors remain in their homes, maintain independence and manage rising costs with greater certainty,\u201d said Guerrant, the acting director of the state Department of Technology, Management and Budget.<\/p>\n\n\n\n<p>Because this is a credit paid by the state, local governments that rely on property tax revenue are expected to be held harmless.<\/p>\n\n\n\n<p>Hall called Whitmer\u2019s proposal a \u201cpositive step\u201d but called it \u201cvery limited,\u201d noting House Republicans are preparing a more expansive property tax relief proposal.&nbsp;<\/p>\n\n\n\n<p>\u201cOur plan, people are going to feel it,\u201d he said. \u201cHomeowners across the state, they&#8217;re going to feel it, our renters are going to feel it \u2014 it&#8217;s going to be significant property tax relief.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>School supply tax holiday<\/strong><\/h2>\n\n\n\n<p>Another previously reported piece of tax relief proposed by Whitmer: A tax \u201choliday\u201d on school supplies, estimated to cost the state $13.6 million next fiscal year.&nbsp;<\/p>\n\n\n\n<p>The proposed tax relief would last for three years and apply to school supplies bought both online and in-person. Items included in the targeted tax cut include clothes, classroom items, and computers.&nbsp;<\/p>\n\n\n\n<p>\u201cHousehold budgets are stretched, and this provides direct, tangible relief when families need it most,\u201d Guerrant said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gov. Gretchen Whitmer\u2019s office unveiled her $88B budget proposal on Wednesday, calling for more spending on literacy and education with some tax hikes and some tax breaks. <\/p>\n","protected":false},"author":233,"featured_media":72641,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","inline_featured_image":false,"apple_news_api_created_at":"2026-02-11T20:38:18Z","apple_news_api_id":"fc1a6f15-98c7-40d8-bcca-e56e6993e98c","apple_news_api_modified_at":"2026-02-11T21:17:39Z","apple_news_api_revision":"AAAAAAAAAAAAAAAAAAAAAg==","apple_news_api_share_url":"https:\/\/apple.news\/A_BpvFZjHQNi8yuVuaZPpjA","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":[],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"_newspack_byline_active":false,"_newspack_byline":"","newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false},"categories":[2445],"tags":[904,51,1510,4328],"newspack_spnsrs_tax":[],"coauthors":[2457],"class_list":["post-72637","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-michigan-government","tag-gov-gretchen-whitmer","tag-michigan-colleges-and-universities","tag-michigan-k-12-schools","tag-top-of-homepage","entry"],"apple_news_notices":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Gretchen Whitmer pitches $88B budget. What it means for Michiganders, schools - Bridge Michigan<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/bridgemi.com\/michigan-government\/gretchen-whitmer-pitches-88b-budget-what-it-means-for-michiganders-schools\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gretchen Whitmer pitches $88B budget. What it means for Michiganders, schools - Bridge Michigan\" \/>\n<meta property=\"og:description\" content=\"Gov. 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Prior to joining the Capitol crew, she wrote for MLive as its statewide politics and culture reporter and with Gongwer Michigan as its state House reporter. She lives in Lansing with her husband and two cats.\u00a0When not writing, you can catch her watching hockey or horror movies \u2014 though, usually not at the same time. Get in touch with her at\u00a0jhermani@bridgemi.com\u00a0or on Twitter\u00a0@JordynHermani.\",\"url\":\"https:\/\/bridgemi.com\/author\/jordyn-hermani\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Gretchen Whitmer pitches $88B budget. 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Gretchen Whitmer\u2019s office unveiled her $88B budget proposal on Wednesday, calling for more spending on literacy and education with some tax hikes and some tax breaks.","og_url":"https:\/\/bridgemi.com\/michigan-government\/gretchen-whitmer-pitches-88b-budget-what-it-means-for-michiganders-schools\/","og_site_name":"Bridge Michigan","article_publisher":"https:\/\/www.facebook.com\/BridgeMichigan\/","article_published_time":"2026-02-11T20:38:11+00:00","article_modified_time":"2026-02-11T21:17:33+00:00","og_image":[{"width":2560,"height":1920,"url":"https:\/\/bridgemi.com\/wp-content\/uploads\/2026\/02\/021126_Flood-and-Guerrant_JH-scaled.jpeg","type":"image\/jpeg"}],"author":"Jordyn Hermani","twitter_card":"summary_large_image","twitter_creator":"@bridgemichigan","twitter_site":"@bridgemichigan","twitter_misc":{"Written by":"Jordyn Hermani","Est. reading time":"9 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/bridgemi.com\/michigan-government\/gretchen-whitmer-pitches-88b-budget-what-it-means-for-michiganders-schools\/#article","isPartOf":{"@id":"https:\/\/bridgemi.com\/michigan-government\/gretchen-whitmer-pitches-88b-budget-what-it-means-for-michiganders-schools\/"},"author":{"name":"Jordyn Hermani","@id":"https:\/\/bridgemi.com\/#\/schema\/person\/e1345693c1e664915491f95af159fa17"},"headline":"Gretchen Whitmer pitches $88B budget. 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