Overview
- State budget officials presented the FY2027 plan to lawmakers, outlining a $13.6 billion general fund and $21.4 billion for K‑12 within an $88.1 billion total.
- The proposal lifts the base per‑pupil amount to $10,300 and commits $625 million to literacy, including high‑impact tutoring, curriculum grants, LETRS training, and more literacy coaches.
- The administration seeks about $780 million to stabilize Medicaid through taxes on tobacco and vaping, a digital advertising tax, a per‑wager sports betting levy, and updated internet gaming tax rates.
- The plan preserves household relief with a back‑to‑school sales tax holiday, continued exemptions on tips, overtime and Social Security, expanded senior property tax credits, and permanent free school meals funding.
- Whitmer also proposes a $400 million rainy‑day fund withdrawal and allocates funds to meet new federal Medicaid and SNAP requirements, while GOP leaders reject tax hikes and tapping reserves as budget talks begin.