Michigan Legislature Passes FY25 Budget of $82.5B

The Michigan Legislature on Thursday passed a balanced and bipartisan budget for fiscal year 2025 that totals $82.5 billion, including a general fund total of $15 billion and a school aid budget total of $19 billion.
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The Michigan Legislature passed a balanced and bipartisan budget for fiscal year 2025 that totals $82.5 billion. // Stock photo

The Michigan Legislature on Thursday passed a balanced and bipartisan budget for fiscal year 2025 that totals $82.5 billion, including a general fund total of $15 billion and a school aid budget total of $19 billion.

Among the key investments include support for economic development initiatives for project attraction, placemaking, and talent growth, as well as investments to elevate the state’s innovation and entrepreneurship ecosystem.

“I am grateful to Governor Whitmer, the State Budget Office team, and the Michigan Legislature for their collaboration and hard work to pass a budget that reflects and honors our commitment to the ‘Make It in Michigan’ economic development strategy’s focus on People, Places, and Projects,” says Quentin L. Messer Jr., CEO of the Michigan Economic Development Corp.

“Whether it’s cultivating a culture that embraces talent, revitalizing our communities or attracting investment, we must continue to work together as Team Michigan to ensure everyone can truly ‘Make It in Michigan.”

Some highlights of the FY25 budget include:

  • $500 million for the Strategic Outreach and Reserve (SOAR) Fund to continue attracting and retaining transformational investments stemming from federal policy encouraging domestic development in clean energy, semiconductors, and mobility, among other industries.
  • $60 million to establish an Innovation Fund to invest in scalable startups and help launch hundreds of new Michigan-based companies.
  • $50 million in continued funding for the Revitalization and Placemaking program, including support for a new program to implement transformational public space development projects that will increase the population by creating high-density, high-amenity, walkable, vibrant neighborhoods and business ownership opportunities for local communities.
  • $10 million for Minority-Owned Business grants to continue the work of the Inclusive Entrepreneurship Support Grant program
  • $15 million to the Pure Michigan campaign, on top of the $15 million in existing General Fund money for the program, to further attract visitors to the Great Lakes State, with the ability to receive up to $10 million in additional local and private revenue.

To enhance support the state’s talent and workforce initiatives, investments in higher education and workforce development include:

  • $45.5 million for Talent and Growth to support Michigan’s current and future workforce needs and population growth, including specialized economic assistance to businesses locating or expanding in Michigan to meet their talent and workforce needs, developing customized talent solutions to fill identified talent gaps and grow Michigan’s population.
  • $30 million investment to increase funding for the Michigan Achievement Scholarship, the state’s flagship scholarship program, providing a pathway to community college, with tuition guaranteed.
  • $52 million to continue Michigan Reconnect, providing a tuition-free pathway to adult learners 25 and older.
  • $20 million increase in the Tuition Incentive Program, which provides tuition support to lower income students in Michigan’s community colleges, public universities and private universities.
  • $14.5 million for the North American Indian Tuition Waiver, to provide tuition-free education to eligible Native Americans at Michigan public universities and community colleges.

See the full details of the FY25 here.