Whitmer budget peddles old programs as new

Gov. Gretchen Whitmer’s final executive budget recommendation features several policies under the banner of “Saving Michiganders Money.” But some policy analysts say the governor offers little that’s new.

The budget will “continue to provide savings and reduce costs for families while ensuring that the state is in a strong financial position,” Whitmer said in the 2027-2028 budget recommendation, which proposes increasing the state budget by $7 billion.

The policies Whitmer recommends for saving money already exist, James Hohman, director of fiscal policy at the Mackinac Center for Public Policy, told Michigan Capitol Confidential in an email.

Whitmer calls for continuing to fund the Great Start Readiness Program, which started in 1985.

The state of Michigan has promoted universal access to taxpayer-funded early childhood programs in recent years, expanding eligibility and enrollment to high-income families.

“Preschool for every child would be costly, primarily benefit higher-income families, is unlikely to result in educational gains and will harm lower-income Michigan families,” Jarrett Skorup, director of marketing and communications at the Mackinac Center, wrote in a 2023 blog post.

All students in Michigan’s public schools have been eligible to receive taxpayer-funded meals at school since 2023. Whitmer’s 2027-28 budget document said this policy saves families $850 per year for each student.

The state will spend more on high-income families than it does on low-income families, according to Molly Macek, education policy director at the Mackinac Center. The federal budget already buys the meals of low-income families, she said.

The $248 million Michigan spent on feeding students in districts with a more affluent population would be better spent on literacy efforts, Macek wrote in a November 2025 blog post.

Whitmer used her budget document to promote two other measures that she said would save residents money: the Michigan Achievement Scholarship and the Community College Guarantee. Both are existing programs, Hohman said, and both shift expenses to others.

The achievement scholarship provides up to $5,500 annually for eligible students attending in-state institutions, while the Community College Guarantee covers tuition for qualifying students attending community colleges.

The state approved $250 million for the Michigan Achievement Scholarship program in 2024, Hohman reported.

The state also offers a post-secondary program, Michigan Reconnect. This program covers tuition for community college for residents age 25 years or older.

Whitmer temporarily reduced the minimum age requirement to 21, but it reverted to 25 at the end of 2024. Participating students must maintain a 2.0 grade point average, and they have up to four years to complete an associate degree.

Whitmer’s budget proposal also highlights recent changes in Michigan’s income tax, which began after legislation enacted in 2023 restored exemptions for pension and retirement income.

“Rolling back the retirement tax will save half a million households an average of $1,000 a year,” Whitmer said in a 2023 press release.

Whitmer announced at the same time that she would quintuple the Working Families Tax Credit, her name for the Earned Income Tax Credit.

Michigan’s tax credit used to be 6% of the amount a tax filer would receive from the federal government. In 2023 that amount increased to 30% of the federal benefit.

Hohman is critical of the credit and said in a 2023 blog post that it is not a tax cut. The policy only shifts the financial responsibility from some residents to others.

Instead of focusing on policies that will benefit all residents, he said, Whitmer’s proposals favor select beneficiaries and shift the costs to others.

Hohman encouraged lawmakers to take a broader approach. “Tax policy encourages growth when lawmakers lower the burdens on everyone,” he said. Whitmer’s narrow the tax base, he added.

Whitmer did not respond to an email seeking comment.