Michigan Governor Unveils Budget Proposal

Whitmer's budget director to present spending plan to lawmakers, kicking off negotiations

Published on Feb. 10, 2026

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Michigan Governor Gretchen Whitmer's budget director will present the governor's proposed spending plan for the next fiscal year to state lawmakers on Wednesday. The proposal is expected to address affordability issues for Michigan residents, including potential property tax relief for seniors and a sales tax holiday on school supplies. However, the final budget will require months of negotiations between the governor and the Republican-controlled legislature, with disagreements over revenue estimates and new taxes potentially causing delays.

Why it matters

The governor's budget proposal sets the initial framework for state spending priorities and serves as the starting point for legislative negotiations. With an estimated $1 billion less in revenue compared to the current fiscal year, tough decisions will have to be made about funding various programs and services.

The details

Gov. Whitmer's budget director, Jen Flood, will present the governor's proposed spending plan for the 2026-2027 fiscal year to state lawmakers on Wednesday. The proposal is expected to include several hundred million more for reading and literacy education programs, as well as a 10% property tax refund for seniors to address affordability concerns. A sales tax holiday on school supplies, including clothes, classroom items, and computers, is also anticipated to be part of the plan.

  • The governor's budget director will present the proposal to lawmakers on Wednesday, February 12, 2026.
  • A revenue estimating conference in May 2026 will provide lawmakers with updated revenue projections to inform the final budget.
  • The state legislature has a July 1, 2026 deadline to pass the budget for the 2026-2027 fiscal year.

The players

Gretchen Whitmer

The governor of Michigan, now in her final term.

Jen Flood

The state budget director who will present Whitmer's budget proposal to lawmakers.

Bryan Posthumus

A Republican state representative and floor leader who has stated he will not support a budget that includes new revenues.

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What they’re saying

“I can tell you that I will not support a budget that includes new revenues. I just won't.”

— Bryan Posthumus, Republican State Representative (woodtv.com)

What’s next

After the governor's budget proposal is presented, the state legislature will spend the next several months negotiating and crafting the final budget. A key milestone will be the May 2026 revenue estimating conference, which will provide updated revenue projections to guide the budget process. The legislature has a July 1, 2026 deadline to pass the budget for the 2026-2027 fiscal year.

The takeaway

The governor's budget proposal kicks off a lengthy negotiation process between the executive and legislative branches, with disagreements over revenue estimates and new taxes potentially causing delays in finalizing the state's spending plan. The final budget will need to balance funding priorities and address affordability concerns for Michigan residents.