• The Michigan Constitution requires a balanced budget by Oct. 1. State officials are meeting to try to finalize a deal by midnight
  • Gov. Gretchen Whitmer and legislative leaders announced a budget framework agreement last week but have not disclosed details
  • A shutdown could jeopardize state services and force temporary layoffs for many of the state’s roughly 50,000 employees

LANSING — It’s deadline day at the Michigan Capitol. 

The state constitution requires lawmakers and Gov. Gretchen Whitmer to have a balanced budget in place by the time the 2026 fiscal year starts at midnight.  Failure to do so would trigger a government shutdown.

Here’s what we know about ongoing Michigan budget talks, with updates below:

  • Michigan Gov. Gretchen Whitmer, Democratic Senate Majority Leader Winnie Brinks and Republican House Speaker Matt Hall announced last week that they’d agreed to a budget “framework” to avoid a government shutdown. 
  • Officials have not yet released any details of that tentative deal, and lawmakers have yet to vote on any spending bills. The House and Senate are both in session starting at 10 a.m. It will likely be a long day.
  • As of Monday, Whitmer’s office wouldn’t even say whether one of her marquee policies — universal free school meals — will survive the negotiations. “She wants to continue this program and is working with the Legislature to finalize the budget,” a spokesperson said. 
  • The deal is expected to include House-approved plans to impose a 24% wholesale tax on marijuana and delay the fiscal impact of some federal business tax breaks to help fund what Hall has said will be a $1.5 billion to $1.8 billion road funding plan.
  • The Senate on Monday agreed to new earmark transparency rules pushed by the House. 
  • Early budget plans were far apart. House Republicans approved a $78.5 billion spending plan. Senate Democrats approved an $84.5 billion plan. Whitmer had proposed an $84 billion plan of her own but separately called for new road funding. 
  • If officials can’t agree to a budget by midnight, the state government would technically shut down. The impacts would likely not be felt until the morning, when some normal operations would cease and many of the state’s nearly 50,000 workers could be furloughed or laid off.
  • Whitmer’s office has not publicly detailed any shutdown plans. A plan her office released in 2019 indicated more than 150 road construction projects would have been halted, parks would have been closed, lottery games would have stopped and the state’s Liquor Control Commission would have stopped accepting retail orders for spirits, among other things. 
  • Noon update: Hundreds of marijuana industry advocates gathered at the Michigan Capitol to oppose the proposed 25% wholesale pot tax that is a key component of the tentative budget deal Whitmer announced last week. “Save our jobs,” they chanted inside and outside the building. Mobile digital billboards circling the Capitol called the proposed tax increase “insane,” declared that “(Matt) Hall loves raising taxes” and that “Gretchen Killed Cannanbis Jobs.”
  • 12:45 pm update: With less than 12 hours left to avoid a government shutdown, rank-and-file state lawmakers said they had still not seen any budget bills. In a Facebook video, state Rep. Steve Carra said he thinks there is only a 25% chance lawmakers vote on a budget today, predicting a vote on Wednesday is more likely. The Three Rivers Republican said he expects the budget will be nearly 2,000 pages long and bemoaned what he called a “disgusting and abhorrent process” that means lawmakers are expected to vote on spending bills without time to fully digest them. “This is not a this time problem. This is a recurring problem,” he said.
  • 3:35 pm update: In a letter to state workers, Michigan Gov. Gretchen Whitmer sought to reassure them that “the state government will stay open and operational” even if a budget isn’t finalized by midnight. Her office has not yet explained how it would avoid a government shutdown without a signed budget.
  • 5:15 pm update: Some Michigan schools are already saying they won’t continue free meals for all students on Wednesday.
  • 5:30 pm update: Whitmer and legislative leaders announced they plan to finalize a “full budget this week” but that they’re still drafting actual bills. Whitmer reiterated that “state government will continue providing uninterrupted services” but did not say how that will happen if officials miss tonight’s midnight budget deadline. The plan they’ve agreed to will include funding for “free breakfast and lunch,” they said in a joint release.
  • 10:45 pm update: The Michigan Legislature remains in session but leaders have not yet unveiled any budget bills. Lawmakers have also not yet begun voting on any “budget implementation bills” that leaders said may be coming today.
  • Midnight update: Michigan officials have missed the constitutional budget deadline for the first time in 16 years. The Senate may soon consider a stopgap measure to avoid a significant state government shutdown.

Return to Bridge Michigan for more state budget coverage throughout the week.

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