10 October 2025
The FY26 budget makes big strides in funding, but a clearer roadmap needed on how dollars are used
#FactsMatter, the Citizens Research Council of Michigan podcast
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A Research Council Podcast Roundtable: Michigan’s 2025 Budget Breakdown
In a first-ever roundtable edition of the #FactsMatter podcast, Guy Gordon recaps recent budget conversations and even more recent updates from the finally passed and long-overdue Michigan budget with the Research Council’s Eric Lupher, president; Craig Thiel, research director; Bob Schneider, senior state affairs associate; and research associates Karley Abramson, health policy; and Eric Paul Dennis, infrastructure.
First up — roads. Guy chats with Eric Paul Dennis on how nearly $2 billion in new funding should bump Michigan to about 15th in the nation for road spending, but the complicated Act 51 formula still means many local roads won’t see major improvements. Transparency at the pump is better — but how those dollars are spent? Still murky.
Karley Abramson explained how healthcare saw one of the biggest surprises: the Rx Kids program jumped from a $16 million pilot to $270 million statewide, offering direct cash assistance to new mothers. A rare bipartisan investment in babies and brain development.
Craig Thiel explained how schools also got good news — universal free breakfast and lunch continue for all K–12 students, and funding for at-risk kids rose 25%, with hopes of boosting early literacy.
Eric Lupher and Bob Schneider took on taxes in the budget, and how lawmakers avoided a $670 million hit by decoupling from the federal “One Big Beautiful Bill Act.” Businesses aren’t thrilled, but it keeps the state budget stable.
And transparency? Mixed. The state promised more, but much of the final deal was done behind closed doors — without final revenue estimates to guide spending.
In short, Michigan’s 2025 budget may be remembered for potholes and pot — big fixes on roads and kids, but still a few bumps ahead when it comes to accountability.
In a first-ever roundtable edition of the #FactsMatter podcast, Guy Gordon recaps recent budget conversations and even more recent updates from the finally passed and long-overdue Michigan budget with the Research Council’s Eric Lupher, president; Craig Thiel, research director; Bob Schneider, senior state affairs associate; and research associates Karley Abramson, health policy; and Eric Paul Dennis, infrastructure.
First up — roads. Guy chats with Eric Paul Dennis on how nearly $2 billion in new funding should bump Michigan to about 15th in the nation for road spending, but the complicated Act 51 formula still means many local roads won’t see major improvements. Transparency at the pump is better — but how those dollars are spent? Still murky.
Karley Abramson explained how healthcare saw one of the biggest surprises: the Rx Kids program jumped from a $16 million pilot to $270 million statewide, offering direct cash assistance to new mothers. A rare bipartisan investment in babies and brain development.
Craig Thiel explained how schools also got good news — universal free breakfast and lunch continue for all K–12 students, and funding for at-risk kids rose 25%, with hopes of boosting early literacy.
Eric Lupher and Bob Schneider took on taxes in the budget, and how lawmakers avoided a $670 million hit by decoupling from the federal “One Big Beautiful Bill Act.” Businesses aren’t thrilled, but it keeps the state budget stable.
And transparency? Mixed. The state promised more, but much of the final deal was done behind closed doors — without final revenue estimates to guide spending.
In short, Michigan’s 2025 budget may be remembered for potholes and pot — big fixes on roads and kids, but still a few bumps ahead when it comes to accountability.