Analyzing Governor Whitmer’s Final Executive Budget Proposal

Just two weeks after digesting the details of Governor Whitmer’s final Executive Budget proposal, one thing is certain: it’s going to be a very interesting watch as Michigan policymakers tackle and negotiate the fiscal year 2027 budget. Senior Research Council staff Craig Thiel and Bob Schneider chat with Guy Gordon, walking through some of the most consequential pressure points as lawmakers craft a budget that will pass both chambers and be signed by the Governor.



Multiple federal and state policy changes over the past year have set the stage for General Fund revenue that is expected to be down by more than $1.2 billion from the May 2025 forecast, an 8.3 percent decrease. Additionally, state budget writers will need to address federal cost shifts that place greater burdens on states for Medicaid and food assistance programs.



The key challenge for budget writers during FY2027 budget deliberations will be addressing deficits rather than allocating surpluses, as has been the case for several consecutive years. Any new investment proposals that increase the budget will require additional dollar-for-dollar reductions to offset their impact.



To quote Schneider: “It's going to be a really interesting budget cycle. In an election year, you're usually always done by July 1st, but I'm not so sure that's going to happen this year.”