(LANSING) - Gov. Gretchen Whitmer has introduced an $88 billion fiscal year 2027 budget proposal to the Michigan Legislature, outlining a mix of tax increases and reserve spending to address funding needs.
The plan includes higher taxes on tobacco products and electronic cigarettes, a new tax rate on internet gaming for large casinos, a per-wager tax on sports betting and a digital advertising tax. Administration officials say the measures are intended to offset federal spending cuts affecting Medicaid.
Whitmer's proposal also calls for withdrawing $400 million from the state's rainy day fund, which would leave an estimated balance of $1.8 billion.
Republican lawmakers, who hold the majority in the Michigan House, have voiced opposition to the proposed tax increases, signaling potential challenges as the budget moves through the legislative process.
The budget now heads to lawmakers for review and negotiations before a final spending plan is adopted.