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Whitmer’s $88-Billion Budget Proposed

By Mary Ellen Murphy Feb 12, 2026 | 7:47 AM

(Lansing, MI) – Governor Gretchen Whitmer’s 88-billion-dollar budget has been proposed and introduced to lawmakers. She is proposing higher taxes on tobacco and electronic cigarettes, a new internet gaming tax rate on large casinos, a per-wager sports betting tax, and a digital advertising tax to handle federal spending cuts to Medicaid. Whitmer’s plan also calls for the state to pull 400-million-dollars from the rainy day fund, leaving that with a one-point-eight-billion-dollar balance.

Republicans, who have the majority in the state House, have raised objections to the higher taxes.

 Senate Appropriations Minority Vice Chair Jon Bumstead, R-Norton Shores, issued the following statement Wednesday in response to the governor’s fiscal year 2027 budget proposal to the Legislature:

“As we move forward to pass a balanced budget, we must focus on the real-life challenges many families and small businesses are facing. People want effective government, not just more spending. They are working hard and stretching every dollar — and they expect their government to use their tax dollars wisely.

“I am willing to work with the governor and our legislative colleagues to enact a responsible spending plan that invests in our shared priorities like education, infrastructure and public safety, and makes a positive impact in the lives of everyone in our state.

“Tough conversations are needed on how we balance the budget. Taking money from the budget stabilization fund to support her liberal agenda instead of taking a deeper look at what can be cut or offset in other places is bad for all Michiganders.

“I welcome the governor’s openness to providing additional tax relief, but I have never been a fan of offering relief to only specific groups. Since families are struggling to make ends meet, we should be uplifting all Michigan households.”

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