Legislative Update: Budget Differences Underscore Need for Vigilance
As lawmakers debate spending priorities, retirees must remind them that School Aid and pension protections cannot be compromised.
House Passes Budget
On August 26, 2025, the Michigan House of Representatives passed its version of the 2025–26 state budget (HB 4706). Along with the House education budget passed earlier this year (HB 4577), we now have proposals from the Governor, the House, and the Senate.
Together, HB 4706 and HB 4577 outline a state budget of roughly $78.5 billion—$5 billion less than the Governor’s proposal and $6 billion less than the Senate’s May proposal. This is also about $3 billion below the current fiscal year’s budget.
With the July 1 start of the school fiscal year already behind us and October 1—the start of the state fiscal year—approaching quickly, the next step is for the three parties to come together to resolve differences in overall spending.
Budgets Prioritize Road Funding and Infrastructure
There is broad agreement in Lansing that Michigan needs to commit $2–3 billion in additional annual funding to ensure that 80% of state and local roads are in fair or good condition. In recent years, the state has relied on stopgap measures—such as the 2016 gas tax and vehicle registration increases and the Whitmer Administration’s 2020 increase in road bonding—to slow the rate of road deterioration. While these steps have provided temporary relief, they have not brought the state closer to the 80% goal.
House Speaker Matt Hall (R-Richland Twp.) has proposed addressing the shortfall in HB 4709 by redirecting $3.4 billion in existing state revenue from various budget areas, aiming to meet road funding needs without raising taxes. The Whitmer Administration, in contrast, has proposed a combination of redirected funds, new revenue, and budget reductions to achieve a similar target. However, the House approach would require significant cuts across state government—an approach that may face challenges given that the Governor and Senate budgets move in the opposite direction.
Your Role: Remind Legislators that Retirees are Paying Attention
MARSP is closely monitoring all budget developments and continues to communicate our position to policymakers. You can amplify our presence by contacting lawmakers to oppose using the School Aid Fund (SAF) or redirecting SAF dollars to the General Fund for road funding. Michigan is on track to pay off pension debt by 2038, and it is critical to maintain this progress without placing unnecessary pressure on school funding.
A call, email, or short visit is enough to introduce yourself and remind legislators that MARSP members are informed, active, and engaged. When a specific request arises, lawmakers will already know who you are.
