Michigan House Speaker Matt Hall ‘optimistic’ budget shutdown can be avoided

Republican House Speaker Matt Hall says he’s bullish about passing a budget before Oct. 1 and avoiding a state shutdown
Republican-led House, Democratic majority Senate have sparred for months over a deal
On Mackinac Island Saturday, Hall praised Whitmer for a ‘unifying’ appeal but criticized inaction on roads

MACKINAC ISLAND — After months of disagreement, Michigan House Speaker Matt Hall says he’s confident legislators can agree to a budget by Oct. 1 and avoid a state shutdown.

Speaking to Bridge Michigan ahead of a Saturday evening speech at the Mackinac Republican Leadership Conference, the Richland Township Republican credited his newfound optimism to a recent “unifying” speech from Gov. Gretchen Whitmer, who on Tuesday called on lawmakers to pass a budget as soon as possible.

“I’m more optimistic about that today than I’ve been at any point in the process,” Hall said Saturday, noting that he “did not care for her speech” but appreciated its potential impact.

“I’m hopeful that you’re going to see more Democrats rallying behind Whitmer…and there’ll be enough of them to compromise with me to make a deal, keep the government open,” Hall added.

Hall’s comments come less than two weeks before Michigan’s constitutional deadline to ink a state budget for the new fiscal year begins Oct. 1. Michigan’s government is divided, with Whitmer’s Democrats controlling the Senate and Republicans leading the House.

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Broad swaths of government would shut down without a budget, and both sides blame each other. Negotiations continued into the weekend.

“There are moments when we feel like we make progress, and then the next day, when it comes to actually putting pen to paper … suddenly the progress seems to disappear,” Senate Majority Leader Winnie Brinks, D-Grand Rapids, told reporters Tuesday, calling it “a pattern that we have seen from House Republicans.”

The expiring state budget is $83 billion, which was a record for spending. The Senate approved a new $84.5 billion budget, while the House version totals $78.5 billion.

Both chambers need to agree on one version to send to Whitmer. Among the sticking points: long-term funding for roads and projected decreases in federal funding from President Donald Trump’s “big, beautiful bill.”

Michigan’s roads receive low marks from engineering groups, and the nonpartisan Citizens Research Council this year ranked the state 40th among all states for overall system condition.

Both Democrats and Republicans propose more money for roads, but offer different approaches. The GOP-led House wants to cut spending for economic development and the arts, while Whitmer wants new revenues including a new tax on marijuana.

In her Tuesday speech at the state Capitol building in Lansing, Whitmer said the House proposal is “not one that I would sign.”

State agencies this week claimed the House plan would prompt layoffs, slow state police investigations and response times and increase waits at Secretary of State branches.

Still, Whitmer expressed optimism for a compromise that protects Democratic priorities like funding for school lunches and Medicaid, as well as spending cuts and increased transparency proposed by Republicans.

“If we do this right, we can all win,” she said. “We can govern — which means we all compromise.”

During his speech to fellow conservatives on Mackinac Island, Hall criticized Whitmer for not coming up with a “realistic plan” for roads during her tenure. He brought up Whitmer’s failed proposal in 2019 to raise gas taxes 45 cents to pay for roads.

But in comments to Bridge, Hall said he and Whitmer are “both kind of old school” and understand the stakes of not getting a deal done before the government shuts down.

“Everyone loses in a government shutdown, and we have a responsibility to compromise and come together,” he said.