On Tuesday, February 24, 2026, Senior Research Council staff Bob Schneider and Craig Thiel provided their assessments of the General Fund and School Aid Fund Governor Whitmer’s FY2027 Executive Budget. Several federal and state policy changes over the past year set the stage for an interesting budget cycle this year. For FY2027, GF/GP revenue is expected to down by more than $1.2 billion from the May forecast, an 8.3 percent decrease. On top of that, state budget writers will begin to address federal cost shifts that place greater burdens on states for Medicaid and food assistance programs. The key challenge for budget writers during FY2027 budget deliberations will be addressing deficits, rather than allocating surpluses, as has been the case for several consecutive years. Any new investment proposals that grow the budget will necessitate additional dollar-for-dollar reductions to offset their impact.

MIRS reporter Kyle Melinn participated to ask questions.