• For the second year in a row, Michigan lawmakers failed to pass a state budget by a July 1 deadline written into state law
  • Legislative leaders and Gov. Gretchen Whitmer’s office continue to negotiate, with votes possible Thursday or Friday
  • At the same time, legislators remain optimistic spending bills can be finalized before the looming July 4 holiday 

LANSING — Another year, another missed budget deadline for the Michigan Legislature after lawmakers and Gov. Gretchen Whitmer failed to finalize a new state budget by Wednesday as required by state law. 

While missing the July deadline carries no penalties for officials, it leaves school officials in the lurch as they work to finalize their own budgets without certainty on state funding they rely on to operate. 

“When the Legislature delays the process because of political horsetrading or political infighting, it puts schools – public schools in particular – in a bad place,” Derek Fisher, superintendent of Garden City Public Schools and president of the K-12 Alliance of Michigan, told Bridge Michigan.

“It’s frustrating and disappointing, to start. And the main thing is, I think it represents a failure of government beyond partisanship because they have a statutory obligation by July 1 to deliver a budget.”  

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Michigan’s Republican-led House and Democratic-led Senate were both in session for votes on Wednesday. And each did pass budget bills — but only hollowed out versions designed to set up “conference committees” that will resolve differences between earlier versions. 

That means voting on a final budget deal could begin as soon as Thursday. There’s also a possibility lawmakers will hold a rare Friday session in hopes of getting it done before what could be a lengthy summer break.

There are “certainly a handful of items that I think are still sticking points that we’re trying to get addressed,” Sen. Darrin Camilleri, D-Trenton, said Wednesday, including some “policy bills” not directly related to funding the state government or schools. 

Camilleri said he’s optimistic officials will finish the budget before leaving for the Independence Day holiday but acknowledged “there’s always a chance for anything to happen.”

Instead of passing a final budget, the House and Senate on Wednesday agreed to extend an expiring emergency order by Whitmer that has allowed the sale of cheaper but less environmentally friendly gas this summer after prices spiked amid the Iran war. 

As for the budget, officials have offered few new details since announcing a “framework” deal that is expected to include: 

  • Some kind of school funding increase. The House, Senate and governor all want to increase the state’s $10,050 per-pupil allowance.
  • Universal free school meals are also likely to continue for public schools, though the governor’s office has proposed eliminating funding for private schools to participate.
  • No new taxes. House Republicans said their support for the framework deal was contingent on ditching nearly $800 million in “sin taxes” Whitmer had requested to bolster Medicaid amid federal cuts.
  • No “rainy day fund” withdrawal. House Republicans also said the deal will not include $350 million Democrats wanted to spend from Michigan’s Budget and Economic Stabilization Fund.

The Senate on Wednesday convened a hearing to discuss proposed earmarks that lawmakers want to add to the budget, but the meeting was quickly adjourned. Senators have submitted around 500 funding requests this year, while House lawmakers have submitted roughly 750. 

It’s unclear which spending projects will make the budget. 

What’s also unclear is the role tax reform will play in a final spending plan. Whitmer previously proposed a 10% property tax refund program for seniors aged 65-and-older, while House Republicans want a much larger $4.7 billion property tax cut. 

The Michigan Constitution gives officials until Oct. 1 to pass a balanced budget and avert a government shutdown, but lawmakers wrote the earlier July 1 deadline into law in 2019.

After missing that mark for the second time in as many years, some lawmakers are turning their frustrations into legislation.

Rep. Regina Weiss, D-Oak Park, on Tuesday introduced a joint resolution proposing to dock pay for the Senate majority leader, House speaker and governor for every day after July 1 the budget isn’t signed into law.

The resolution would also bar lawmakers from voting specifically on the state’s School Aid budget unless it had been publicly available on the legislature’s website for at least seven days. Any adopted amendments would also need to be publicly available for at least 24 hours prior to a vote.

Weiss acknowledged the resolution was unlikely to pass, but she said it felt necessary given the Legislature has missed the July 1 deadline two years in a row, frustrating school officials across the state. 

“I completely understand their frustration, and it is valid. They should be frustrated. … I mean, we don’t know if we’re voting on a budget today,” Weiss said Wednesday. “We don’t know if we’ll be voting on the budget tomorrow (or) Friday … and frankly, that is unacceptable.”

Education reporter Isabel Lohman contributed to this article.

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