State Rep. Sarah Lightner this week supported a $75.8 billion state budget plan focused on easing the financial strain on Michigan families by holding the line on taxes, cutting wasteful spending, and using the savings to prioritize the services people rely on most.

The House-approved budget reduces the overall state budget by $106 million and state general fund spending by nearly $600 million, avoids dipping into the state’s rainy-day fund, and stands up for Michigan families by rejecting tax and fee increases proposed by the governor.

“Families are watching every dollar right now, and they expect Lansing to do the same,” Lightner said. “This budget reflects that responsibility by focusing on needs, cutting waste, and putting taxpayers first.”

A key component of the House plan is a shift toward more accurate budgeting practices. Instead of automatically increasing funding year after year, the plan aligns appropriations with real spending levels from recent years. A review of actual spending across state government revealed nearly half of all budget line items were overfunded, totaling close to $2 billion in excess.

“For too long, budgeting has been driven by assumptions instead of reality,” Lightner said. “We brought it back to the basics, made it more transparent, and ensured every dollar has a clear purpose.”

Highlights of the House budget include:

• Eliminating ghost employees: Building on last year’s bipartisan effort that removed more than 2,000 vacant positions, the House plan eliminates an additional 3,300 “ghost” positions – roles that are funded but not filled. The budget maintains a 2,600 FTE cushion to ensure departments can meet staffing needs and cover overtime, particularly for public safety roles like state police and corrections officers. The budget also includes a $50 million investment to hire additional investigators within the Department of Health and Human Services to crack down on fraud in Medicaid and the SNAP food assistance program.
• Reining in IT spending: The plan addresses out-of-control spending on state IT projects by consolidating oversight into a new dedicated office, improving accountability and ensuring the systems we spend tax dollars on actually work for residents.
• Boosting road funding: After last year’s bipartisan agreement added more than $2 billion in ongoing road funding, the House budget adds another $100 million to continue addressing Michigan’s road funding gap.
• Protecting and strengthening Medicaid: The House budget increases Medicaid funding by $1.2 billion to meet growing caseloads, while investing in anti-fraud efforts and implementing work requirements to ensure long-term sustainability.
• Record school funding: The plan provides a $250 per-pupil increase, bringing the foundation allowance to $10,300, while continuing universal school meals and school resource officers.
• Supporting public safety and communities: The plan includes an additional $10 million for the Public Safety Trust Fund, a $65 million increase in revenue sharing for local governments, and funding for an additional youth mental health treatment facility.
• Strengthening workforce development: Increased investment in the Going PRO Talent Fund will expand support for small businesses and workforce training programs.
• Supporting rural communities: The budget continues investments in agriculture programs and other services for rural communities, including MSU Extension and MSU AgBioResearch, Michigan Agriculture Environmental Assurance, Michigan Animal Agriculture Alliance, soil conservation districts, and county fairs.
• Protecting hunters and anglers: The House budget does not include any increases to hunting and fishing license fees, rejecting proposals from Lansing Democrats that would raise costs on Michigan outdoorsmen and women.
• Energy cost transparency: It requires the Michigan Public Service Commission to provide clear explanations to the Legislature when approving utility rate increases, helping address rising energy costs for families.
• Boosting the rainy-day fund: The House makes a $300 million deposit to strengthen Michigan’s financial stability and ensure the state is better prepared for economic downturns or unexpected emergencies without turning to tax increases.

“This is a responsible budget that protects essential services while respecting taxpayers,” Lightner said. “We’re keeping Michigan on solid financial footing and focusing on what families actually need.”