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Michigan Approves $75B Budget with Controversial Marijuana Tax

10/3/2025

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Michigan Lawmakers Approve Budget

Michigan lawmakers approved a budget totaling over $75 billion on Oct. 3, 2025.
It designates $51.8B general government and $24B education, with per-pupil funding at $10,050.
A 24% wholesale marijuana tax would raise about $420M annually for roads, facing cannabis-industry opposition.
The plan includes $2B for infrastructure and $95M for local law enforcement from the Public Safety Trust Fund.

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Reeves Considers Tax Hikes

The UK faces a £30 billion shortfall, prompting Chancellor Rachel Reeves to consider tax increases.
A Morgan Stanley report suggests Reeves could raise £25-£45 billion without breaching Labour's manifesto.
Possible measures include extending the income tax threshold freeze (£7-£10 billion) and taxes on gambling and banking.
Labour leaders reiterate fiscal rules are non-negotiable; business leaders oppose tax hikes for growth.

History

Historical Context

Michigan faced a $1.8 billion budget deficit in 2010, leading to severe cuts in education and public services. Since then, the state has gradually recovered, with lawmakers approving a $75 billion budget in 2023, allocating $24 billion for education. This reflects ongoing efforts to balance fiscal responsibility with public needs amid the complexities of state governance and economic recovery.

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Michigan Lawmakers Approve Budget

Michigan lawmakers approved a budget totaling over $75 billion on Oct. 3, 2025.
It designates $51.8B general government and $24B education, with per-pupil funding at $10,050.
A 24% wholesale marijuana tax would raise about $420M annually for roads, facing cannabis-industry opposition.
The plan includes $2B for infrastructure and $95M for local law enforcement from the Public Safety Trust Fund.

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