EDUCATION

Lansing: Whitmer Proposes Taxes, Cuts, and Education Shortfall

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Lansing — Gov. Gretchen Whitmer this week presented a Fiscal Year 2027 budget proposal that seeks new revenues and targeted tax relief amid mounting Medicaid shortfalls and flat student reading outcomes. The plan would generate roughly $780 million from taxes on tobacco, vaping, sports betting and digital advertising, and would tap the rainy-day fund, while proposing a 10% property tax cut for senior homeowners. Lawmakers of both parties signaled debate, with House Republicans opposing tax increases. State NAEP scores show Michigan fourth-grade reading proficiency fell from 29% in 2015 to 25% in 2024. Based on 6 articles reviewed and supporting research.

Prepared by Emily Rhodes and reviewed by editorial team.

Timeline of Events

2015: NAEP reports Michigan fourth-grade reading proficiency at 29%, ranking behind 42 states.
2015–2023: Michigan lawmakers allocated about $1 billion toward literacy programs tied to a top-10 goal for 2025.
2024: NAEP shows Michigan fourth-grade reading proficiency declined to 25%, ranking behind 45 states.
Early February 2026: Governor Whitmer released a FY2027 budget outline proposing new taxes (~$780M) and tapping $400M from the rainy-day fund.
Feb. 25, 2026: Whitmer scheduled to deliver the State of the State and further detail budget priorities.