Michigan lawmakers pass bipartisan budget for 2025

LANSING, Mich. (WLNS) – This morning, lawmakers passed Michigan’s $82.5 billion budget for fiscal year 2025, including a $15 billion general fund and a $19 billion school aid budget.

A press release from the governor’s office said the budget will support students, improve public safety, create affordable housing and help everyone “make it in Michigan.”

The budget provides a pension plan for school districts of $400 per student.

A majority of Republicans voted against the budget after calling it “irresponsible fiscal management based on shell games.”

“We are once again setting Michigan up for success by making record investments that benefit everyone in the state without raising taxes a dime,” said Governor Whitmer. “This budget will boost our economy, fix the damn roads, make sure emergency responders have the tools they need to keep our neighborhoods safe, and create a whole lot more affordable housing, all while lowering costs and putting more money in people’s pockets. As a father, I know our kids are our top priority, and that’s why this budget puts students first by making historic investments to improve learning outcomes from preschool through college so every child can get a world-class education. Together, we’re putting things in place that will make a real difference in people’s lives and ensure that everyone in Michigan can make it, and we’ll continue to improve learning outcomes so every student can succeed,” said Whitmer.

According to the Governor’s Office, the budget includes, among other things:

• Pays off a “mortgage” early (certain debts owed to the Michigan Public School Employees’ Retirement System) while protecting teachers’ pensions and retirement benefits, freeing up $670 million to invest in classrooms to help children learn.
• $50 million deposit into the Budget Stabilization Fund, bringing the total amount of the emergency fund to nearly $2.2 billion through the end of fiscal year 2025.
• $20 million deposit ($10 million in FY25 and $10 million as a supplement in FY24) into the Disaster and Contingency Fund to cover current and known expenses and to protect against the risks of future disasters.
• $3.3 million to improve processing times and outreach for environmental permits.