The Michigan State Legislature has approved a state budget for Fiscal Year 2026-2027 (FY 27). The Democratic-led Senate and Republican-led House came to an agreement on spending for FY 27 two days after their July 1 statutory deadline that marks the beginning of the fiscal year for schools and universities.
The final FY 27 budget totals $75.2 billion. The General Omnibus budget, Senate Bill 878 appropriates $52.3 billion ($12.9 billion GF/GP), while the Education Omnibus, House Bill 5630 appropriates $22.9 billion ($1.2 billion GF/GP) for K-12 schools, community colleges, and higher education. The K-12 portion makes up $19.8 billion. The final budget stems from a framework deal made between the two chambers and the Governor earlier this week that was contingent on a school funding increase, universal free school meals, no new revenues, and without withdrawals from the state's Stabilization Fund.
Arguably the longest part of the lengthy budget negotiations process was negotiating which policy items were going to move ahead of the summer campaign season. A full list of the legislation passed alongside the FY 27 budget can be viewed here. The legislative website will continue to be updated in the coming days.
Below are especially noteworthy items included in the FY 27 budget. A comprehensive list and all budget materials can be accessed through the link at the end of this email.
FY 2027 Budget Highlights
The Health and Human Services budget allocates $30.7 billion Gross ($7.5 billion GF/GP), around a 2.2% increase from FY 26. Highlights include:
Other notable appropriations include:
School Aid Budget Highlights
Notable School Aid items include:
Per-pupil foundation allowance increase to $10,300, up from $10,050 (a 2.5% increase)
You can access all final budget materials here.