Governor Presents Fiscal Year 2026 Budget Proposal

The Governor this week kicked off the initial step in the state budget process as her spending proposal was presented before the House and Senate Appropriations committees.

The $83.5 billion budget proposal for Fiscal Year 2025–2026 includes $15.3 billion in General Fund spending, and $21.2 billion in the overall education spending budget. One of the Governor’s main priorities in her presentation is to increase the per pupil amount for public school children to $10,000.

In the coming months, the House and Senate will present their own versions of the budget as appropriations hearings get underway, after which the three entities will negotiate a final product for the Governor to sign into law. The next fiscal year begins October 1.

Latest Budget Proposal Again Removes Funding From Nonpublic Schools

The opening volley in deciding the next state budget was not a favorable one for the state’s nonpublic schools.

In her executive budget recommendations, Gov. Whitmer did not propose funding for nonpublic schools across several key areas, including existing programs to support safety and security measures that nonpublic schools have enjoyed for years. This first step in the budget process is frustrating as all children, regardless of where they attend school, deserve to be safe.

In the current budget, nonpublic schools received $1.5 million to pay for security upgrades and mental health services because of advocacy from the Michigan Catholic Conference (MCC) and the Michigan Association of Nonpublic Schools (MANS) to preserve the funding after the Governor had also proposed cutting it entirely in last year’s budget recommendation.

Meanwhile, public schools would be provided with $150 million in safety funding in the new proposal, which continues the current year’s funding level. Both public and nonpublic schools saw cuts to safety funding in the original version of the current year budget, but a mid-year supplemental passed last fall added more funds for public schools only, leaving nonpublic schools at $1.5 million.

In the Governor’s latest proposal, nonpublic schools are also not slated to receive $1 million in reimbursements for the cost of state health, safety, and welfare regulations, or $600,000 to allow students to participate in robotics programs. Both initiatives were funded for nonpublic schools in the current budget.

Two state programs that are intended to increase the teacher ranks in Michigan would continue in the Governor’s budget presentation, but again without including teachers who go on to teach in nonpublic schools.

While the Student Teacher Stipend Program would provide up to $9,600 per semester for student teachers attending public and private colleges in Michigan, the teacher-in-training would have to student-teach in a public school to qualify for the money.

Similarly, the Michigan Future Educator Fellowship provides up to $10,000 for first-time degree seekers or career changers who are pursuing the teaching profession, including those who attend public or private higher education institutions.

However, the fellowship would have to be repaid if the student didn’t go on to teach at a public school. Teaching at a nonpublic was allowed in the first year of the program but that hasn’t been reauthorized by lawmakers since it was first proposed four years ago.

The proposed budget, however, does include significant funding for nonpublic schools in the successful shared time program, which allows nonpublic schools to receive aid in the form of teachers for non-core subjects such as art, foreign languages, and many others.

MCC will be working with members of the Legislature in the coming months to improve these budget recommendations with the goal of promoting a state budget that supports all students regardless of the school they attend.

Programs to Support Mothers in Need, Promote Fatherhood Among Budget Proposals

The Governor’s budget presentation proposes funding to support mothers in need, while also presenting a new program that would also provide support to fathers.

The proposed budget for next fiscal year maintains the current $6.4 million in diapering supply grants for nonprofit agencies that distribute free diapers.

Additionally, a program known as Rx Kids—which provides cash assistance to mothers in need both during pregnancy and after birth—would continue with $20 million in funding.

A new policy that could be of interest to MCC is a proposed $5 million to promote fatherhood, which would involve support of fatherhood organizations, training caseworkers, and raising awareness on the importance of fathers to young children.

MCC is looking forward to hearing more details about that program, as well as another proposal that would set aside $1.2 million for additional young child supplemental payments for those receiving cash assistance.

Finally, the $5 increase to the state administrative rate contained in the current year budget to support foster care agencies would be preserved in the proposed budget.

Lansing Update: Governor Presents Fiscal Year 2026 Budget Proposal