Michigan’s budget increased cumulatively more than the maximum rate of population growth plus inflation in state funds and all funds from 2016-25, meaning taxes are higher than the average taxpayer can afford.

  • The 2025 state funds budget is $4.7 billion higher than it would have been had spending grown at the rate of population growth plus inflation over the past decade.
  • Because the state funds budget grew faster than population growth plus inflation for the last ten years, the state spent $39.9 billion too much.
  • The 2025 all funds budget is $11.9 billion higher than it would have been had spending grown at the rate of population growth plus inflation over the past decade.
  • Because the all funds budget grew faster than population growth plus inflation over the past decade, the state spent $86.6 billion too much. 

State Funds Budget Data

  • Estimated FY 2026 Only State Funds Budget ($ Billions): $ 48.50
  • FY 2027 Only State Funds Budget Limit ($ Billions): $ 50.08
  • FY 2027 Only State Funds Budget Limit Growth (%): 3.26%
  • Cost per person of only state funds budgeting more than pop+inf over the last decade in 2025 budget: $ 9,135
  • Cost per family of 4 of only state funds budgeting more than pop+inf over the last decade in 2025 budget: $ 459
  • Cumulative cost per person of only state funds budgeting more than pop+inf over the last decade from 2016-25: $ 3,940
  • Cumulative cost per family of 4 of only state funds budgeting more than pop+inf over the last decade from 2016-25: $ 15,761

All Funds Budget Data

  • Estimated FY 2026 All Funds Budget ($ Billions): $ 83.38
  • FY 2027 All Funds Budget Limit ($ Billions): $ 86.10
  • FY 2027 All Funds Budget Limit Growth (%): 3.3%
  • Cost per person of all funds budgeting more than pop+inf over the last decade in 2025 budget: $ 14,854
  • Cost per family of 4 of all funds budgeting more than pop+inf over the last decade in 2025 budget: $ 1,179
  • Cumulative cost per person of all funds budgeting more than pop+inf over the last decade from 2016-25: $ 8,549
  • Cumulative cost per family of 4 of all funds budgeting more than pop+inf over the last decade from 2016-25: $ 34,195

Other Economic and Fiscal Considerations