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Legislative Update
State Budget Update
Last month, Governor Gretchen Whitmer’s Fiscal Year 2026-2027 (FY 27) budget was presented to the legislature. In her Executive Recommendations, Governor Whitmer proposed an $88.1 billion budget. Her recommendation also proposes a $400 million withdrawal from the state’s rainy-day fund. Additionally, new revenue streams were proposed in an effort to raise additional
money to fund the state’s Medicaid program following the passage of H.R. 1, or the One Big Beautiful Bill Act (OBBBA). The new revenue streams include increasing Michigan’s tobacco tax
rate, along with taxing vaping and non-tobacco nicotine products, taxing digital advertising across all media platforms, and updating Michigan's internet gaming, sports betting, and online gaming tax structure. These are estimated to create $780.4 million in additional revenue.
Of the $88.1 billion budget recommendation, the General Fund totals $13.6 billion, and the School Aid Fund totals $21.4 billion. You can access all executive budget recommendation materials on the State Budget Office website here.
In additional state budget news, the House Appropriation Subcommittee chairs announced they had been given budget targets for Fiscal Year 2027. Although House Appropriations Committee Chairwoman Ann Bollin (R-Brighton) did not outline specific numbers, she did share that the highest budget threshold goal is lower than what we saw in the Fiscal Year 2025-2026 (FY 26)
budget.
House Republicans say they plan to address the projected $800 million January CREC shortfall without raising taxes. House Republican priorities for the upcoming budget include strengthening Michigan’s businesses and improving the education system, while cutting spending where possible.
As of this writing, the Senate has not yet announced that they reached targets for the upcoming fiscal year. Each chamber is expected to develop its respective budget proposals, negotiate them, and ultimately present a unified budget to the Governor before the statutory deadline of July 1. However, as we saw during budget negotiations for the current fiscal year (FY 26), conversations may continue throughout the summer and into the fall.
Dental and Dental Hygienist (DDH) Compact Bill Update
MOHC continues to support House Bill 4935, introduced by Representative Parker Fairbairn (R-Harbor Springs), is legislation to enter Michigan into the Dental and Dental Hygienist (DDH) Compact. This bill would allow dental professionals licensed in other compact member states to practice in Michigan under the compact’s licensure requirements.
Earlier this week, advocates met with Rep. Bill Schuette’s (R-Midland) office to discuss how the compact would help support the dental workforce and improve access to care in Michigan by reducing regulatory barriers. Rep. Schuette is the Chair of the House Rules Committee, where the bill is currently held. We anticipate further movement on the legislation in April.
Governor Whitmer Delivers Last State of the State Address
Recently, Governor Gretchen Whitmer delivered her eighth and final State of the State address at the Capitol in Lansing. She started off her address calling for the timely passage of a balanced budget.
Governor Whitmer recapped her time in office, highlighting the work she has accomplished, emphasizing infrastructure and investment in Michigan’s students, and the progress made on various social issues. She most notably addressed lowering healthcare costs and protecting access to healthcare. She called for capping interest rates on medical debt, preventing medical debt from being reported on credit reports, requiring hospitals to set up financial assistance programs for patients, and putting a ban on liens and foreclosures on homes due to medical debt. In addition to reducing medical debt, the governor also discussed her budget proposal that would invest in Medicaid funding in order to protect Michigan's healthcare system.
Governor Whitmer’s prepared remarks can be found here, and you can watch the full address here.
Republican Senate Minority Leader Aric Nesbitt (Porter Township) provided the GOP’s official response to Governor Whitmer’s address. Senator Nesbitt claimed that despite raising state spending and increasing taxes, many of Michigan’s roads have not been repaired. Senator Nesbitt also called out alleged instances of fraud under the Whitmer administration, the
decreasing literacy rate, and what Republicans see as a government overreach in Michigan's housing, childcare, and healthcare. You can watch his full response here.
Session Schedule Update
The House began its spring break on March 24, followed by the Senate on March 31. Both chambers are expected to return on April 14.
Policy Committee Update
As lawmakers begin their spring break, we encourage MOHC Policy Committee members to connect with their lawmakers in the district to discuss oral health priorities, most notably the importance of protecting Medicaid dental in the upcoming Fiscal Year 2026-2027 (FY 27) budget.
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