House rolls out balanced budget that cuts spending, avoids tax increases

State Rep. Ann Bollin, chair of the House Appropriations Committee, today unveiled the House’s $75.8 billion state budget plan, emphasizing fiscal responsibility, government accountability, and a commitment to protecting Michigan families who are already feeling the strain of rising costs.

“Our budget reflects a simple principle: we respect the hardworking taxpayers of Michigan,” Bollin said. “Families across our state are tightening their belts to afford groceries, gas, and everyday expenses. State government should be doing the same, not asking for more.”

The House budget reduces the overall state budget by $106 million and state general fund spending by nearly $600 million, avoids dipping into the state’s rainy-day fund, and does not raise taxes.

“This plan is about getting back to basics,” Bollin said. “We’re prioritizing what matters most, cutting out waste, and making sure every dollar is spent with purpose.”

A key component of the House proposal is a shift toward more accurate budgeting practices. Instead of automatically increasing funding year after year, the plan aligns appropriations with real spending levels from recent years.

“For too long, budgets have been built on inflated numbers that don’t reflect reality,” Bollin said. “We’re correcting that by aligning funding with real-world spending, preventing departmental slush funds and discouraging wasteful expenditures. It’s a real budget with real dollars.”

The budget also eliminates programs and spending items that do not reflect the priorities of Michigan taxpayers.

“We took a hard look at where taxpayer dollars are going,” Bollin said. “That means cutting funding for things like no-strings-attached cash handouts, corporate subsidies, and special projects that benefit Lansing insiders instead of everyday people.”

Bollin emphasized that the plan does not cut essential services.

“We are not cutting the programs Michigan families rely on every day. Public safety, education, Medicaid, veterans’ services, and more are still fully funded,” Bollin said. “By simply making our budget numbers accurate and eliminating waste, we’re able to cover every priority without shortchanging the people of Michigan.”

Bollin said highlights of the House budget include:

• Eliminating ghost employees: Building on last year’s bipartisan effort that removed more than 2,000 vacant positions, the House plan eliminates an additional 3,300 “ghost” positions – roles that are funded but not filled. The budget maintains a 2,600 FTE cushion to ensure departments can meet staffing needs and cover overtime, particularly for public safety roles like state police and corrections officers. The budget also includes a $50 million investment to hire additional investigators within the Department of Health and Human Services to crack down on fraud in Medicaid and the SNAP food assistance program.
• Reining in IT spending: The plan addresses out-of-control spending on state IT projects by consolidating oversight into a new dedicated office, improving accountability and ensuring the systems we spend tax dollars on actually work for residents.
• Boosting road funding: After last year’s bipartisan agreement added more than $2 billion in ongoing road funding, the House budget adds another $100 million to continue addressing Michigan’s road funding gap.
• Protecting and strengthening Medicaid: The House budget increases Medicaid funding by $800 million to meet growing caseloads, while investing in anti-fraud efforts and implementing work requirements to ensure long-term sustainability.
• Record school funding: The plan provides a $250 per-pupil increase, bringing the foundation allowance to $10,300, while continuing universal school meals and school resource officers.
• Supporting public safety and communities: The plan includes an additional $10 million for the Public Safety Trust Fund, a $75 million increase in revenue sharing for local governments, and funding for an additional youth mental health treatment facility.
• Strengthening workforce development: Increased investment in the Going PRO Talent Fund will expand support for small businesses and workforce training programs.
• Boosting the rainy-day fund: The House makes a $300 million deposit to strengthen Michigan’s financial stability and ensure the state is better prepared for economic downturns or unexpected emergencies without turning to tax increases.

Bollin said the House plan reflects a disciplined approach to budgeting that delivers to the people across Michigan.

“This is a responsible, commonsense budget that lives within our means while continuing to invest in the people and priorities that make Michigan strong,” Bollin said. “I look forward to working with the governor and our colleagues in the Senate to deliver a final budget that continues to put Michigan families first.”