DEEP DIVE: THE GOVERNOR’S 2026 STATE BUDGET PROPOSAL

Michigan succeeds when all of its residents have access to what they need to thrive — high-quality education, healthcare, support for their basic needs and opportunities to engage in the economy. This also needs to extend to our justice-involved youth and adults. While policymakers have enacted a number of criminal legal system reforms over the past several years — including raising the age for who is considered an adult under our legal system, allowing for expungement of certain prior convictions and reforms for justice-involved youths — the state budget provides an opportunity to provide direct support to those currently involved in the justice system. 

JUSTICE-INVOLVED YOUTH SUPPORTS_____________________________

Over the past several years, Michigan has enacted a number of policies to help reform our juvenile justice system, including raising the age of automatic adult adjudication and improving county services for justice-involved youth. However, Michigan still detains youth at one of the highest rates in the nation, especially for non-criminal behavior, and because of systemic barriers and racial bias, youth of color are disproportionately impacted by juvenile justice policies. A bipartisan Task Force on Juvenile Justice Reform was created in June of 2021, relied on data- and research-backed analysis, and presented a number of reforms that can help both deter delinquency and improve rehabilitation of justice-involved youth. Many of the recommendations of this Task Force have been implemented, and the governor’s budget continues the investment in those services.

THE GOVERNOR’S BUDGET RECOMMENDATION INCLUDES THE FOLLOWING TO SUPPORT JUSTICE-INVOLVED YOUTH:

Residential Facility Operations. The governor’s budget includes a net $12.6 million and 57 employee increase to help support two juvenile residential facilities. Included in this are an additional $4.1 million and four employee increase for the Bay Pines Center in Escanaba, a reduction of $7.6 million and 58 employees due to the closure of the Shawono Center in Grayling, and an additional $16.1 million and 111 employees for the new Michigan Youth Treatment Center in Macomb County. The decision to close the outdated Shawono Center and move to the new facility was made in January 2025, and it will allow the state to serve more youths and to hopefully improve staffing, services and treatment options for justice-involved youths. (Dept. of Health and Human Services)

WHAT’S MISSING?
Funding to support implementation of youth defense. One of the recommendations of the Task Force on Juvenile Justice Reform was to help provide effective public defense of justice-involved youth. The Michigan Indigent Defense Commission needs funding to support staff necessary to conduct the research, data analysis, and compliance framework to develop youth defense standards, which will help implement Senate BIll 81 (Shink) or House Bill 4070 (Lightner). (Licensing and Regulatory Affairs)

SUPPORTING JUSTICE-INVOLVED ADULTS_____________________________

Michigan’s Department of Corrections (MDOC) is responsible for the operation and maintenance of the state’s 26 correctional facilities, and for providing housing, care and supervision of people who are incarcerated, on probation or on parole. As of February 1, 2025, the department was responsible for 73,397 offenders, including 35,574 incarcerated individuals, 31,637 individuals on probation, and 9,186 persons on parole. This represents a net decrease of 575 from the prior year, with declines in incarcerated individuals and probationers outnumbering increases in individuals being supervised on parole. Much of the MDOC budget is based on the number of individuals being supervised and the services – like healthcare – they need, the number of corrections officers, and the costs to maintain the prison facilities, but there are a few programs within the budget that help incarcerated individuals prepare for reentry, like education and workforce development, mental and physical health supports and housing. 

THE GOVERNOR’S BUDGET RECOMMENDATION INCLUDES THE FOLLOWING IN THE DEPARTMENT OF CORRECTIONS:

Peer Recovery Coaches. The budget includes $6.6 million to expand the number of peer recovery coaches in parole offices, probation offices and on site at correctional facilities. Peer recovery coaches support, encourage and educate justice-involved Michiganders who have substance use disorders.

Transitional Housing Support. The governor recommends $2 million in one-time general fund to support the development of two multi-unit transitional housing locations to provide temporary housing to parolees upon reentry into the community. MDOC would collaborate with private developers and non-profit organizations to construct new or renovate existing facilities to meet housing needs in underserved communities.

Probation Success Services. The executive budget includes $1.5 million to expand the number of individuals on probation that receive reentry services, such as behavioral therapies, employment placement, vital documents like driver’s licenses or state identification cards, physical and behavioral health services and transportation. Currently, only people on probation in two prosperity regions, region 1 (which covers the entire Upper Peninsula) and region 4 (covering 13 counties in west Michigan – Mason, Lake, Osceola, Oceana, Newaygo, Mecosta, Muskegon, Montcalm, Ottawa, Kent, Ionia, Allegan and Barry), benefit from these services. The governor’s budget would expand this to include region 2 (10 counties in northwest Michigan – Emmet, Charlevoix, Antrim, Kalkaska, Missaukee, Grand Traverse, Wexford, Leelanau, Benzie and Manistee), region 7 (3 capital area counties including Clinton, Eaton and Ingham), and region 8 (7 southwest Michigan counties including Van Buren, Kalamazoo, Calhoun, Berrien, Cass, St. Joseph and Branch).

Higher Education in Prisons. Currently, 13 colleges and universities provide education to persons who are incarcerated in our correctional facilities, with additional schools expected to join. These collaborations provide incarcerated individuals with the opportunity to participate in certificate, associate and bachelor degree programs. The governor’s budget would increase funding by $750,000; funding for the program helps support staffing, supplies and tuition. 

Court Modernization. The governor’s budget recommends $3.4 million in one-time funds to automate the prisoner count and callout processes in correctional facilities. Currently, this is a manual process, and pencil and paper are used to tally and record or track the movement of incarcerated individuals within the facilities. More details are needed to determine how this process would be implemented in order to determine the impact on incarcerated individuals, as concerns existed on previous versions of the proposal.

WHAT’S MISSING?
Additional support for healthcare costs. Healthcare costs for incarcerated individuals are expected to increase by 25%. Currently, persons who are incarcerated who need to see a medical professional help cover the costs with a copay, which translates to a $170 medical copay to individuals outside of prison. This fee, which represents only 0.07% of MDOC’s overall healthcare budget, functions as a regressive tax borne by incarcerated Michiganders and, more often than not, their loved ones on the outside. This results in higher costs on the families of those who are incarcerated, who often provide the payment of the copay, or incarcerated individuals simply go without healthcare until it is absolutely an emergency when copays can be waived.  This current system not only destabilizes the economic security of the person in prison and their families, but also increases healthcare costs and worsens health outcomes. Medical copays in prison may also increase healthcare costs by delaying the diagnosis and treatment of emerging chronic diseases. Waiving the copays and backfilling the revenue reduction would help incarcerated individuals access the healthcare they need when they need it.

 

OTHER CRIMINAL LEGAL SYSTEM INVESTMENTS_____________________

Michiganders who are incarcerated and returning citizens rely on support that goes beyond the services they receive while confined. Investments in these areas help support a person’s right to due process, reduce recidivism and keep communities safe.

THE GOVERNOR’S BUDGET RECOMMENDATION INCLUDES THE FOLLOWING FOR CRIMINAL LEGAL SYSTEMS:

Services for people exiting incarceration. The governor’s budget includes $40 million ($20 million General Fund) to support implementation of the state’s federally approved demonstration waiver. The waiver will extend limited Medicaid coverage to incarcerated individuals 90 days prior to their release date, covering key health screenings, medications and targeted case management to facilitate successful reentry. This will help reduce reliance on emergency medical services and support the transition of care for people exiting incarceration. (Dept. of Health and Human Services)

Increasing staff at the State Appellate Defender Office. The State Appellate Defender Office (SADO) provides state-funded public defenders to represent individuals with pending appeals and ensure effective counsel for indigent people appealing criminal convictions; they handle about 30% of these individuals. The governor’s budget includes an additional $2.3 million and 12 new attorney and support staff positions. This will implement the second year of a three-year, phased implementation of workload standards. (Judiciary)

Increasing support for public defenders of indigent individuals at initial trials. The Michigan Indigent Defense Commission works to develop and implement minimum standards and provide grants to local trial courts to ensure Michigan’s public defense system is fair, cost-effective and constitutional. The governor recommends an additional $769,100 and four additional staff to support increased financial monitoring and planning efforts across county indigent defense systems. Three of the additional staff would focus on oversight of the financial and programmatic aspects of compliance with the standards. (Licensing and Regulatory Affairs)

Creation of a Public Safety and Violence Prevention Fund. The governor’s budget recommends the creation of a Public Safety and Violence Prevention Fund with $75 million total to support public safety initiatives and services in cities, villages and townships. Of this, a percentage would be used to augment existing community violence intervention grants through the Department of Health and Human Services. (Dept. of Treasury)

A note on data

Finding and analyzing data on justice-involved Michiganders has been challenging for a number of reasons: it’s not available or if it is available, it’s incomplete or it cannot be compared across communities because there’s no standardization. Unfortunately, this means we rely on incomplete data or data from other states to form policy recommendations. To truly create improved outcomes for Michiganders across the state, we need adequate, comparable and available data. This is especially important to determine whether the changes will equitably impact disproportionately affected individuals and communities.