The Michigan Legislature’s four chamber leaders squared off in front of a live audience at the Mackinac Policy Conference, and the result was not the common ground the conference organizers promised.

The panel on Thursday featured Senate Majority Leader Winnie Brinks (D-Grand Rapids), House Speaker Matt Hall (R-Richland Township), Senate Minority Leader Aric Nesbitt (R-Porter Township) and House Minority Leader Ranjeev Puri (D-Canton). The discussion quickly devolved into a public airing of the divisions that threaten to delay Michigan’s next budget well past the July 1 target date.

The July 1 Deadline and the Ghost of Shutdowns Past

The statutory deadline for the Legislature to complete budget negotiations is July 1. That self-imposed target exists so the state’s public schools can plan their fiscal years with certainty. The constitutional deadline is October 1.

Last year, the Legislature missed both deadlines. The 2025-26 budget was finalized only after an hour-long government shutdown. With the 2026 election season underway, observers entering Mackinac Island hoped the political stakes would force a faster deal this year.

The panel suggested otherwise.

"We have a lot of work to do, but we can do it if folks are committed to getting in a room and making decisions that need to be made in negotiating the details," Brinks told panel host Zoe Clark of Michigan Public. "My goal remains to get it to the governor’s desk on time for her to review it and have it signed by July 1."

Hall offered no commitment. "Oh, we’ll see," he said.

Hall’s Preconditions: No Tax Increases, No Rainy Day Fund

Speaker Hall laid out two conditions for a quick budget deal. Republicans must see the Democrats drop their proposed tax increases and abandon plans to draw from the state’s rainy day fund.

"Once they drop the tax increases and the efforts to raid the rainy day fund, we’ll probably get a deal pretty quickly," Hall said.

Those preconditions directly conflict with the administration’s plan. Gov. Gretchen Whitmer has proposed tax increases to offset lower than expected revenue projections and the loss of one-time federal funding from the COVID era. The Senate and the governor agree on using rainy day funds to shore up the budget.

Hall and his Republican colleagues have called rainy day fund usage a non-starter. The GOP House wants to pursue property tax elimination instead. The chamber believes it can backfill those cuts with new revenue from luxury service taxes.

The governor’s office has indicated it has no interest in signing property tax elimination into law.

A Personal Battle Over Who Negotiates

The discussion grew more personal when the conversation turned to who actually sits at the negotiating table. Hall brought up former House Speaker Joe Tate (D-Detroit), whom Hall named as the House Appropriations Committee minority vice chair.

"The difference is Joe Tate will work with us to get a deal, and will represent your caucus well," Hall said. "We want to ensure that there’s a vibrant Democrat party with real leaders. … And we’ll do that. We’ll bring in Joe Tate and we’ll get a deal. And he’ll actually participate, something you didn’t do in the last budget."

The remark was a clear jab at Puri, who could become House speaker if Democrats retake the chamber in November.

Brinks responded by naming state Sen. Sarah Anthony (D-Lansing), the Senate appropriations chair, as her negotiating counterpart. Brinks accused Hall’s budget proposal of creating a $5 billion hole in next year’s funding.

"She’s very good at it, and that might be what he’s concerned about," Brinks said of Anthony.

What Comes Next

The panel ended without clarity on whether the three key figures — Whitmer, Brinks, and Hall — would negotiate directly, or whether other legislative actors would be involved. When Clark asked the panel exactly who was doing the negotiating, the four leaders sat silent for several seconds before Brinks answered.

Puri criticized Hall for turning the budget into a "political football" and said the people of Michigan suffer when leadership refuses to govern.

The Legislature returns to Lansing with roughly one month to bridge the gap between Whitmer’s plan and Hall’s preconditions. If they cannot, Michigan faces another deadline miss and the possibility of another government shutdown.

The July 1 clock is already ticking.