Michigan state budget due Wednesday, negotiations ongoing

Negotiations have been ongoing for the past few months.

Just last week, Republicans announced a budget “framework” had been reached. That framework includes no tax increases, no depletion of the state’s rainy-day fund, and a smaller budget than last year’s. This is according to Michigan House Republicans, who currently control the state House.

The finalized budget will require compromise, as Democrats control both the state Senate and the governorship.

In April, House Republicans approved a $75.8 billion budget plan. The proposal reduced overall spending by $106 million and cut nearly $600 million from the state’s general fund, while avoiding new taxes and adding to the state’s rainy-day fund.

The Republican plan stood in sharp contrast to the Democrat plan and Whitmer’s executive budget proposal unveiled earlier this year.

Whitmer’s plan totals $88.1 billion and includes record K-12 education spending, tax relief for seniors and additional investments across multiple state programs. Similarly, Senate Democrats approved a $88.1 billion budget plan in April.

In Michigan, the fiscal year begins Oct. 1. Last year, the legislature blew past both the July and October deadlines – not officially passing a budget until Oct. 8.

There are no penalties for the legislature to miss those deadlines, though it leaves financial uncertainty for schools, state agencies and employees, and other groups that receive taxpayer funding from the state.

Speaker of the House Matt Hall, R-Richland Township, has threatened similar delays this year, but he said last week he is hopeful the framework would make that unnecessary.

“I’m really happy about that and I’m hopeful that we’ll get a deal,” Hall said at a press conference. “And there’s still a chance that we can get this thing at least through the House and the Senate and to the governor by July 1.”

Erik Edoff, senior executive director of the Michigan Education Association, called for swift passage of the School Aid budget.

“State leaders must set aside election-year politics and bring much-needed stability to our local schools by passing a robust and comprehensive education budget,” Edoff said in an early June statement. “The alternative is needlessly bringing uncertainty to our neighborhood schools at a time when they can least afford it.”

Edoff also threw the support of Michigan’s largest teachers’ union behind the Democrats’ proposal, calling the Republicans’ “disappointing.”