LANSING, MI (WTVB) – Michigan House Republicans unveiled a $75.8 billion state budget proposal for the 2026-27 fiscal year on Thursday, positioning it as a fiscally conservative alternative to Governor Gretchen Whitmer’s larger $88 billion plan.
Spearheaded by House Speaker Matt Hall and Appropriations Chair Ann Bollin, the proposal aims to reduce overall state spending by roughly $106 million and general fund spending by nearly $600 million compared to the current year.
A central feature of the plan is the elimination of what Republicans call “ghost employees”, thousands of unfilled state government positions to save approximately half a billion dollars. Republican leaders emphasize that their budget focuses on “getting back to basics” by prioritizing infrastructure, public safety, and fiscal accountability without raising taxes.
Despite the overall spending cuts, the Republican plan includes targeted investments in education and infrastructure. It proposes a $250 increase in per-pupil funding, raising the foundation allowance to $10,300 per student, and continues funding for universal school meals.
However, the proposal has drawn immediate criticism for significant recommended cuts to higher education, including a more than 60% reduction in state funding for the University of Michigan and Michigan State University.
Other proposed reductions target business-attraction incentives and the prenatal support program Rx Kids, which Speaker Hall characterized as a “scam”.
The plan also includes $100 million in additional road funding and $800 million for Medicaid, setting the stage for intense negotiations with the Democratic controlled Senate ahead of the state’s July budget deadline.
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