Gov. Whitmer proposes an $88.1B budget with new taxes to fix a $1.8B shortfall, facing GOP opposition.

Governor Gretchen Whitmer has proposed an $88.1 billion budget for Michigan’s 2027 fiscal year, aiming to address a $1.8 billion shortfall driven by federal aid cuts, rising healthcare costs, and policy changes. The plan includes new taxes on tobacco, vaping, sports betting, and digital advertising, alongside tax relief for seniors, families, and workers, such as property tax credits, sales tax holidays on school supplies, and permanent free school meals. It also funds education, infrastructure, public safety, and Medicaid stabilization. Republicans oppose new taxes, calling for deeper spending cuts and broader tax reductions. The budget, Whitmer’s final proposal, faces legislative negotiations amid concerns over a delayed approval process.