FY 2027 Budget Update
The State Legislature, in negotiations with the Governor, finalized the FY 2027 budget on Friday, July 3. (Attached are the Substitute for Senate Bill NO. 878 and the FY 2026-27 General Omnibus budget documents.)
This year’s budget process saw significant challenges from the outset, including an estimated $1.2 billion General Fund shortfall (due to federal changes to Medicaid and lower-the-expected projected state revenue) as well as House leader prioritization of reducing overall state spending below FY 2026 levels—all resulting in even deeper reductions across the budget.
Arts Funding
With funds split across a variety of line items, the State Arts Council FY 2027 budget is status quo at about $11 million.
In particular, CultureSource worked closely with Senator Mary Cavanagh and Representative Jennifer Conlin were great champions for the arts and our members during the budget session. [Thank you!]
We are bracing for the dynamics at play in this FY 2027 budget cycle—limited resources, divided government, and increasingly centralized decision-making process—to be present again during FY 2028 discussion. And our plan is to continue to research, messaging, and activation channels for making clear the importance of the arts to Michigan’s vibrancy and prosperity.