💰Sarah’s Budget Breakdown

Dear Neighbor,     

Earlier this month, my colleagues and I passed the Senate recommendations for Michigan’s Fiscal Year 2026 budget — a responsible, forward-looking financial plan that reflects the values and priorities of people and communities across the state. Crafted through months of collaboration with constituents, community leaders, and key stakeholders, the budget focuses on people-first investments that strengthen local communities, protect vital services and expand opportunity for every Michigander.  

Our budget puts Michigan families first — plain and simple. It’s a reflection of what we’ve heard from residents across the state: they want good schools, safe communities, access to health care, and real opportunities to build a better life. From securing more resources in the classroom to upskilling workers and strengthening our local economies, this budget is about delivering results, not rhetoric. It’s bold, responsible, and focused on building a future where everyone has a fair shot. 

We have a ways to go until the state budget is finalized and signed by the governor, but just know, as the Senate Appropriations Chair — the lead budget negotiator for the Senate —  I will make sure the budget continues to uplift and support every Michigander, from our students and teachers to our seniors, veterans, and everyone in between.   

Continue reading to learn more about how we’re using this year’s budget to make life better for you. I will also explain more about the next steps in the budget process and where we go from here. You can read my previous newsletter to learn about how we’re using the budget to support our students and teachers.  

If you or someone you know would like to provide any feedback about what’s happening in Lansing, or if you need assistance of any sort, please connect with my office. You can contact me by sending an email to SenSAnthony@senate.michigan.gov or by calling (517) 373-6960.   

In Service, 

SARAH ANTHONY 
Senate Appropriations Chair 
District 21 

The Senate budget affords every Michigander a pathway to economic opportunity. With the rising cost of living, it’s more important than ever that we cut red tape and support the financial wellbeing of the people we serve. By investing in small businesses, nonprofits, and workforce development programs, we are ensuring everyone has access to a high paying job and the skills they need to succeed.  

• Supporting Small Businesses and Local Workers. Support for targeted economic relief and business support to help small businesses and nonprofits thrive despite the economic uncertainty caused by recent federal actions. 
• Fostering Local Talent and Career Pathways. Investments in apprenticeships, career and technical education, and community-based talent programs to create hands-on opportunities for Michiganders to gain the skills needed for good-paying, in-demand jobs — strengthening our communities and economy. 
• Delivering Relief to Families and Caregivers. Funding for the caregiver tax credit and expanding Rx Kids to help parents and caregivers with the immense cost of raising a child, helping families build a healthier, more stable future. 
• Providing Relief from Medical Debt. Directed funding to eliminate medical debt for some of our most debt-burdened residents, ensuring more Michiganders can get the health care they need without worrying about how to pay their bills. 
• Protecting Consumers and Ensuring Fairness. Funding for a new Consumer Protection Taskforce to strengthen safeguards for consumers, ensuring bad actors can’t take advantage of hardworking Michiganders. 

The people of Michigan need to know we have their backs. This budget includes strategic investments in mental health services at every stage of life, while providing resources to ensure first responders and local governments can protect and serve our communities safely and effectively. We’re using the budget to make Michigan a safer, happier state by: 

• Strengthening Local Emergency Response. Investments in public safety resources to equip communities to better respond to emergencies, protect residents, and maintain peace of mind for families across the state. 
• Preventing and Reducing Community Violence. Support for community-based violence intervention efforts to ensure proactive, collaborative solutions that make our neighborhoods safer. 
• Empowering Emergency Services and Responders. Creation of the Community Aid for Responders and Emergency Serivces (CARES) fund to address local public safety needs — from behavioral health services to fire fighter equipment to law enforcement.  
• Equipping Firefighters. Grants for firefighter infrastructure upgrades to improve readiness and safety.  
• Protecting Those Who Protect Us. Key investments in retirement and pension benefits for corrections officers to ensure the well-being of those who serve on the front lines of public safety. 

Our commitment to building a stronger, more resilient state is reflected in investments across every level of infrastructure — from school repairs and local water projects to roads and bridges. Everyone deserves clean drinking water, safe roads, and high-quality housing. Infrastructure is a matter of economic justice, and these investments will bring us one step closer to ensuring our communities are safe and inviting for years to come. We’re investing in Michigan’s future by: 

• Building Stronger Communities. Dedicated investments to strengthen local infrastructure across the state, including safer roads, improved public facilities, and more resilient neighborhoods.  
• Modernizing Education Facilities. Support for improving and upgrading school infrastructure — from K-12 schools to colleges — to create healthier, safer, and more modern learning environments for Michigan students. We’re also making specific investments in educator housing to attract and retain more quality teachers. 
• Securing Clean and Reliable Water. Increased funding for community water system projects to help give every Michigan resident access to clean, safe, and dependable drinking water. 
• Expanding Access to Safe, Affordable Housing. Targeted housing-related investments to provide Michigan families with access to stable, affordable homes while improving their quality of life and supporting local economic growth. 
• Enhancing Public Transit Options. Ongoing support for local transit agencies to improve access to jobs, education, and health care, especially for those who rely on public transportation as a daily lifeline. 
• Preserving and Enjoying Michigan’s Parks and Natural Resources. Grants for local parks and natural resources, so families across Michigan can continue to enjoy well-maintained local parks and green spaces.

Your taxpayer dollars should go directly back into the services that benefit you and your community. This budget will improve the quality of life for all Michiganders by making strategic investments in essential services, such as education and revenue sharing (how your state tax dollars are redistributed to local communities throughout the state). We remain committed to passing a budget that is sustainable and fiscally sound, protecting the balance sheet for future generations and whatever challenges may come. With this budget, we are:  

• Funding Local Services. Additional investment in revenue sharing to empower local governments to deliver essential services more effectively, ensuring communities across Michigan are safer, more responsive, and better equipped to meet residents’ needs.  
• Investing in Every Student’s Future. Increased funding for K-12 schools and early childhood programs to give every child — regardless of background — a stronger foundation for lifelong success. 
• Expanding Access to Higher Education. Continued investment in colleges and universities, improving affordability and quality to help more Michiganders gain the skills they need to thrive in a competitive economy. 
• Preparing for Emergencies and Protecting Infrastructure. Dedicated funding for emergency reserves, allowing Michigan to respond swiftly and effectively to natural disasters, protecting lives, property, and essential infrastructure.

With the Senate version of the budget passed, you may be asking yourself, “What’s next?” In my previous newsletter, I broke down the budget process into six key steps, which you can view here. Right now in the Senate, we’re well into step 4 of the budget process, and we’re waiting for the House to finish step 2 (Subcommittee Review). Once they pass their budget, we’ll finally be able to start negotiating between the two chambers. 

1. Governor’s Recommendations: In January, budget experts meet to estimate how much the state can spend. Based on this, the governor presents her budget recommendations to the joint House and Senate Appropriations Committee.  
2. Legislative Drafting: The House and Senate use the governor’s proposal as a starting point to develop their own budget versions.  
3. Subcommittee Review: Subcommittees in both chambers focus on specific areas — such as health care, education, and transportation — and draft detailed budgets for each.  
4. Chamber Approval & Negotiation: Each chamber votes on its version of the budget. Then, members from both chambers work together to resolve any differences.  
5. Governor’s Signature: A final version of the budget is sent to the governor, who must sign it into law by July 1, 2025.  
6. Implementation: The new budget takes effect on October 1, 2025, marking the beginning of the 2026 fiscal year. 

When will negotiations be done and a final budget presented to the governor? 

In the Senate, we’re on track to get the budget done by July 1, but the House still needs to pass its budget proposal first before we can start negotiations.  

Passing a state budget on time is essential to keeping Michigan running smoothly and ensuring that families, schools and communities have the stability they depend on. This timeline helps ensure critical services, like education, health care, and public safety, do not face delays or disruptions, putting Michiganders at risk. Local governments and nonprofits struggle to plan and deliver support without clear funding being delivered on time. Most importantly, delays in the budget process could leave the people of Michigan waiting while urgent needs go unmet.   

I remain committed to serving you and uplifting the issues that matter most to our communities. As Senate Appropriations Chair, I have consistently delivered a balanced budget to Gov. Whitmer on time, and I’m determined to uphold this tradition (and law!). Through it all, I will continue to fight for a balanced budget that supports you and every Michigander across the state.  

Be on the lookout for more budget updates as we continue working through the budget process. Our newsletters are full of updates on what Team Anthony has been working on both in the Capitol and throughout our community. For more frequent updates, I also encourage you to follow our team on Facebook, Twitter, and Instagram.