LANSING — Gov. Gretchen Whitmer signed this year’s state budget into law Tuesday, capping months of uncertainty over the government’s spending plans.
The $81 billion budget includes close to $2 billion annually for road maintenance, which comes from a new marijuana wholesale tax and through pushing off cuts to the corporate income tax.
A road funding agreement had eluded lawmakers for years, but the discussion took on new urgency with some funding set to expire at the end of 2025.
The budget also includes hundreds of millions for water infrastructure and airport safety.
Other areas of significant spending include close to $30 billion in yearly Medicaid funding, $1.8 billion for community and behavioral health and more than $400 million for workforce development.
“We’re lowering costs so working families and seniors can keep thousands of hard earned dollars in your pockets by continuing to roll back the retirement tax, continuing the Working Families Tax Credit and ending taxes on tips, overtime and social security,” Whitmer said.
The legislation is a compromise between the Democratic-controlled Senate and Republican-led House, who have remained opposed on spending plans since the beginning of the year.
“This budget is a testament to what we can get done when we work together,” Whitmer said.
Hangups on road funding and education spending prevented lawmakers from reaching an agreement for months.
Those divisions led to a brief government shutdown last week and the passage of a temporary funding plan that was set to expire Wednesday night.