Legislative Update: Budget Tension in 2025 and High Stakes in 2026
2025 In Review: Budget Tension
A return to split-partisan control of state government made for an interesting year in Lansing, with final approval of the state budget stretching well into the fall. We also saw the House Appropriations Committee utilize a provision in the State Management and Budget Act to disapprove of hundreds of millions of dollars in specific project funding approved in the FY 2024-2025 budget. While this does not impact MPSERS funding, it does set the stage for even more complicated budget negotiations in 2026.
Looking Ahead: 2026 Budget and Elections
The 2026 general election on November 3, 2026 will be a pivotal moment for Michigan’s political landscape.
Key Areas to Watch
- State Budget: Governor Whitmer is expected to release her proposed FY 2027 budget in February 2026, beginning her final budget cycle as Governor.
- Statewide Offices: All constitutional offices—Governor, Attorney General, and Secretary of State—will be on the ballot. A crowded gubernatorial field is already taking shape. Additionally, we will have a competitive U.S. Senate race on the ballot due to the pending retirement of U.S. Senator Gary Peters.
- State Legislature: Every seat in the Michigan Senate (38 seats) and Michigan House (110 seats) will be up for election.
MARSP’s Role
We saw the Michigan House in particular express an interest this year in “rolling up” categorical spending throughout the School Aid budget. As the School Aid budget is somewhat complex, we will continue to educate lawmakers on the need to ensure continued prioritization of paying down remaining MPSERS pension debt by 2038. We will update members every step of the way!
Your Role
- Stay informed through MARSP’s nonpartisan reporting.
- Learn MARSP’s Key Legislative Priorities at www.marsp.org/advocacy
- Engage with candidates in your area by attending forums, coffee hours, town halls, and asking how they plan to support current and future public school retirees.
- Get involved locally: Any MARSP chapter that regularly organizes candidate forums will tell you it’s a team effort. Whether you help plan, attend, or support chapter activities through dues, your involvement drives dynamic programming and greater community impact.
- Share the value of MARSP membership with colleagues and friends. The more members we have, the stronger our voice in decisions that shape your retirement security. Each referral enters you into our monthly gift card drawing and the annual grand prize drawing: a trip for two to the iconic Grand Hotel on Mackinac Island!
