Debt collection protections, FY 26-27 budget approved, closing the “revolving door,” and more

Last month, the Michigan Legislature approved a state budget for fiscal year 2026-2027. The two omnibus bills making up the budget, Senate Bill 878 and House Bill 5630, were recently signed by the governor.

To me, the headline from this budget should be that the Legislature was able to avoid decimating state services while making up for huge looming federal cuts to Medicaid and SNAP. The federal cuts —- and the resulting costs to Michigan — will haunt the state’s budgets for years to come.

We did our best to protect Medicaid and ensure Michiganders don’t lose healthcare and food while factoring in the additional costs of the federal government’s purported efforts to mitigate fraud. In my reading, the next federal budget calls for a new $184.3 million expenditure to put up obstacles between Medicaid and SNAP benefits and the people who need them. On the more positive side, we invested $185 million to help stabilize Medicaid funding.

We all know that budgets aren’t just spreadsheets. They affect real human beings. And one way or another, the budget reflects our values. Kudos to State Sen. Sarah Anthony, Senate Appropriations Committee chair, for her tireless leadership in creating this people-centered budget.

Some other headlines from the budget that might be of interest:

Funding for free school meals for every Michigan public school student continues.
Per-pupil funding is set at a record-high of $10,300.
Additional funding is directed to K-12 school districts serving economically disadvantaged students and English language learners.
$50 million for the Michigan Housing and Community Development Fund, $29 million of which will fund supportive housing and the Low Income Housing Tax Credit program. $1.5 million was also included for the Ingham County Housing Trust Fund.
$137.6 million for new roads and bridges.

The following appropriations directly benefit our area:

$500 thousand for Advance Peace, Ingham County’s Community Violence Intervention Program.
$8.3 million for new psychiatric residential treatment facilities in Lansing, Grand Rapids, and Livonia.
$4.4 million for the Lansing Community College Energy and Utility Training Center.
State acquisition of three acres on the Grand River to expand the Lansing River Trail.

Next fiscal year will reflect the full repeal of the retirement tax. (It has been phased in over several years.) Taxpayers will also benefit from the continued increase in the Working Families Tax Credit. Tax exemptions for tips, overtime, and Social Security income continue.

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