DEEP DIVE: THE GOVERNOR’S 2026 STATE BUDGET PROPOSAL
Earning a postsecondary credential, whether a college degree, an occupational license, or a skills certificate, is beneficial for obtaining employment and earning a liveable wage. As Michigan continues to work towards a Sixty by 30 goal of having 60% of working-aged adults with a postsecondary credential or degree by 2030, degree attainment has risen to 51.1% (as of 2022), but it still lags behind the national average of 54.3%.
Even with progress, disparities exist due to systemic barriers at accessing postsecondary education, tuition or other financial aid, and other wraparound supports necessary to succeed in college. In Michigan, only about 53.3% of 2023 high school graduates had enrolled in postsecondary education within six months of graduation, but rates were lower for Hispanic or Latino graduates (45.3%) and Black or African American graduates (39%). And rates are declining across almost all races and ethnicities.
Michigan’s 15 public universities and 28 community colleges, its numerous private not-for-profit colleges and universities, and its many occupational skills training programs provide a means for the state’s residents to achieve academic and vocational skills and credentials. It’s an investment in Michigan’s future to provide strong state support for these institutions and programs, for financial aid to make them affordable, and for support services to help ensure student success.
Across several departments in the 2025-2026 budget, the governor recommends steps to help improve access to a postsecondary education and provide support to colleges and students to help improve enrollment and retention of students; however, problems remain in how we fund our postsecondary educational programs and how much more we need to invest in our young adults to help them achieve success.
OPERATIONS_____________________________
THE GOVERNOR’S BUDGET RECOMMENDATION INCLUDES THE FOLLOWING FOR SUPPORTING BASIC OPERATIONS OF MICHIGAN’S COMMUNITY COLLEGES AND UNIVERSITIES:
✓ A 3.1% increase for community college and university operations, when compared to current year ongoing and one-time budget appropriations combined. Increases in operations funding for public colleges and universities will range from a low of 2.9% to a high of 3.7%. Increases in operations funding for community colleges will range from a low of 2.4% to a high of 4.5%.
TUITION RESTRAINT_______________________
Tuition restraint, first enacted in the public universities budget in the 2013-2014 budget and in the current year budget for community colleges, is a tool with which the governor and Legislature incentivize limiting tuition increases from year to year. It makes each university’s operations funding increases contingent on keeping tuition increases within a specific percentage or monetary amount, whichever is greater.
THE GOVERNOR’S BUDGET RECOMMENDATION INCLUDES THE FOLLOWING FOR TUITION RESTRAINT:
✓ Setting the tuition restraint level for both community colleges and universities to be equal to the greater of 4.5% or a specific amount, $227 for community college tuition or $735 for tuition at colleges and universities.
FINANCIAL AID PROGRAMS AND ADDITIONAL STUDENT SUPPORTS______________________
Michigan’s various financial aid programs help reduce costs for Michigan college students. This can be done through typical financial aid programs that provide direct grants to students or through wraparound supports that help students to remain in college.
THE GOVERNOR’S BUDGET RECOMMENDATION INCLUDES THE FOLLOWING FOR FINANCIAL AID AND OTHER SUPPORTS:
✓ 350 million (a $50 million increase) to the Michigan Achievement Scholarship (MAS), including:
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- A continuation of the Community College Guarantee, which awards students last-dollar in-district tuition and fee coverage as well as a $1,000 stipend to offset living expenses for income-eligible students;
- Up to $5,000 a year to cover college costs of attending a four-year Michigan college or university; and
- Up to $2,000 per year for two years to cover the costs of obtaining a skills certificate at a qualified training institution in Michigan.
- The governor’s budget also signals the intention to codify MAS in order to secure the sustainability of the program.
✓ An increase for the Tuition Incentive Program. The Tuition Incentive Program (TIP) pays students’ tuition costs in their entirety for associate degree coursework, and up to $2,000 for bachelor’s degree coursework. TIP is the only Michigan needs-based grant in which eligibility is based on household income (using Medicaid eligibility as a proxy, it covers students from families whose household income is below 130% of the federal poverty guideline) rather than on estimated family contribution. The governor recommends $122.3 million, an increase of $28.5 million, for the Tuition Incentive Program to provide tuition support to students with lower incomes.
✓ Maintained funding for Michigan Reconnect for adults 25 or older. Michigan Reconnect provides last-dollar scholarships to help adult learners (25 and older) re-engage with higher education to earn a Pell-eligible associate degree or skills-based certificate. The governor’s budget recommends $52 million for Michigan Reconnect.
A CONTINUING PROBLEM:
USE OF SCHOOL AID FUND DOLLARS FOR POSTSECONDARY EDUCATION______________________
Both the community colleges and the public universities budgets continue the problematic practice, begun in budget year 2010, of using a significant amount of School Aid Fund (SAF) dollars to supplant General Fund dollars. Although constitutionally allowed, this is money that has historically been meant to support K-12 public education; when Michigan residents voted by ballot to raise their taxes in 1994 to strengthen the SAF, they did so with the understanding that the money would go to support the public K-12 school system, not universities and community colleges.
Taken together, the governor’s recommendation for the two postsecondary education budgets for 2025-2026 use a total of more than $1 billion to support the operations of postsecondary institutions — the second highest diversion of SAF dollars since the practice began. With the governor’s proposal, a total of $10.5 billion will have been diverted out of K-12 education this way during the past 15 years.
Jay Cutler joined the League in March 2026 as the Kids Count Senior Data Analyst, where he collects, analyzes, and prepares data for Kids Count in Michigan.
Danielle Taylor-Basemore joined the League as the Development Data and Stewardship Coordinator in June 2025. She brings with her five years of nonprofit experience with a special focus on community engagement, data visualization and strategic programming. Prior to joining the League, Danielle served as the Business District, Safety, and Digital Manager at Jefferson East, Inc.
Scott Preston is a Senior Policy Analyst with the Michigan League for Public Policy, where he leads the organization’s immigration and criminal justice reform portfolios. In the three years prior to joining the League, Scott facilitated the Southeast Michigan Refugee Collaborative and managed a small business economic development program at Global Detroit. His work included launching Michigan’s first Refugee Film Festival and building on a trusted connector model that linked marginalized communities with crucial resources. Scott’s work at the League is informed by his background in journalism and research. He spent four years covering the Syrian refugee crisis in the Middle East for publications such as The Economist, and later worked with unaccompanied refugee minors through Samaritas. Scott holds a master’s degree in international migration and public policy from the London School of Economics and Political Science.
Kate Powers joined the League as the Chief Development Officer in February 2025. Prior to joining the League, Kate held leadership positions at many Michigan nonprofit organizations, most recently serving as the COO and Chief Development Officer of Ele’s Place. Kate has spent the bulk of her career in fundraising, with a short stint in the state Legislature as a legislative aide to members in both chambers. Kate is a graduate of Michigan State University’s James Madison College with a Bachelor of Arts in Social Relations and has a certificate in fundraising management from the Lilly Family School of Philanthropy at Indiana University. Additionally, Kate served on the East Lansing Public Schools Board of Education and is a past President of the Junior League of Lansing. In her free time, she enjoys traveling with her husband and her son and saving outfit of the day and home decor ideas on Pinterest. 
Nicholas Hess joined the League as the Fiscal Policy Analyst in September of 2024. In this role, Nicholas focuses on tax policy, government revenue, and their impact on working families and racial equity, including the effects of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). Nicholas values the role that judicious fiscal policy can play in the improvement of people’s lives and the economy, alleviating inequities along the way.
Audrey Matusz joined the League as the Visual Communications Specialist in September 2024. She supports the team with implementing social media strategies and brainstorming creative ways to talk about public policy. She brings with her nearly a decade of experience in producing digital products for evidence-based social justice initiatives. 
Jacob Kaplan 
Donald Stuckey 
Alexandra Stamm 
Amari Fuller
Mikell Frey is a communications professional with a passion for using the art of storytelling to positively impact lives. She strongly believes that positive social change can be inspired by the sharing of data-driven information coupled with the unique perspectives of people from all walks of life across Michigan, especially those who have faced extraordinary barriers. 
Yona Isaacs (she/hers) is an Early Childhood Data Analyst for the Kids Count project. After earning her Bachelor of Science in Biopsychology, Cognition, and Neuroscience at the University of Michigan, she began her career as a research coordinator in pediatric psychiatry using data to understand the impacts of brain activity and genetics on children’s behavior and mental health symptoms. This work prompted an interest in exploring social determinants of health and the role of policy in promoting equitable opportunities for all children, families, and communities. She returned to the University of Michigan to complete her Masters in Social Work focused on Social Policy and Evaluation, during which she interned with the ACLU of Michigan’s policy and legislative team and assisted local nonprofit organizations in creating data and evaluation metrics. She currently serves as a coordinator for the Michigan Center for Youth Justice on a project aiming to increase placement options and enhance cultural competency within the juvenile justice system for LGBTQIA+ youth. Yona is eager to put her data skills to work at the League in support of data-driven policies that advocate for equitable access to healthcare, education, economic security, and opportunity for 0-5 year old children. In her free time, she enjoys tackling DIY house projects and trying new outdoor activities with her dog.
Rachel Richards rejoined the League in December 2020 as the Fiscal Policy Director working on state budget and tax policies. Prior to returning to the League, she served as the Director of Legislative Affairs for the Michigan Department of Treasury, the tax policy analyst and Legislative Director for the Michigan League for Public Policy, and a policy analyst and the Appropriations Coordinator for the Democratic Caucus of the Michigan House of Representatives. She brings with her over a decade of experience in policies focused on economic opportunity, including workforce issues, tax, and state budget.
Simon Marshall-Shah joined the Michigan League for Public Policy as a State Policy Fellow in August 2019. His work focuses on state policy as it relates to the budget, immigration, health care and other League policy priorities. Before joining the League, he worked in Washington, D.C. at the Association for Community Affiliated Plans (ACAP), providing federal policy and advocacy support to nonprofit, Medicaid health plans (Safety Net Health Plans) related to the ACA Marketplaces as well as Quality & Operations.
Renell Weathers, Michigan League for Public Policy (MLPP) Community Engagement Consultant. As community engagement consultant, Renell works with organizations throughout the state in connecting the impact of budget and tax policies to their communities. She is motivated by the belief that all children and adults deserve the opportunity to achieve their dreams regardless of race, ethnicity, religion or economic class.
Emily Jorgensen joined the Michigan League for Public Policy in July 2019. She deeply cares about the well-being of individuals and families and has a great love for Michigan. She is grateful that her position at the League enables her to combine these passions and work to help promote policies that will lead to better opportunities and security for all Michiganders.
Megan Farnsworth joined the League’s staff in December 2022 as Executive Assistant. Megan is driven by work that is personally fulfilling, and feels honored to help support the work of an organization that pushes for more robust programming and opportunities for the residents of our state. She’s excited and motivated to gain overarching knowledge of the policies and agendas that the League supports.
