Tri-City Sun

State Representative Jerry Neyer announced the passage of a bipartisan budget plan last week, which aims to reduce state spending by nearly $2.5 billion while increasing investments in education and infrastructure. The budget received broad support from both parties.

“We proved that you can make targeted cuts, fund key programs, and find room for tax cuts all in the same year,” said Neyer, R-Shepherd. “The budget process looked very different this year, but I’m proud that our end result leaves state spending, our schools, local roads, and working families in a much better financial position than last year.”

The new budget includes measures to provide tax relief for working families and seniors by removing taxes on tips, overtime pay, and Social Security income. This change is expected to benefit more than 500,000 Michigan residents by increasing their disposable income.

Nearly $2 billion in additional funding will be allocated for road improvements across the state. These funds are designated for continued work on Michigan’s infrastructure, focusing on local roads and bridges. The agreement also stipulates that fuel taxes collected at gas stations will be used specifically for road repairs.

For education, the budget sets a record-high per-student investment of $10,050—an increase of $442 from the previous year. House Republicans advocated for maintaining school safety and mental health funding during negotiations. As a result, $321 million has been allocated to support these areas in both public and private schools throughout Michigan.