A framework for Michigan's $50 billion budget is finally in place

A breakthrough in Lansing budget negotiations is raising hopes that Michigan will meet its July 1 deadline for passing the state budget. Governor Gretchen Whitmer, House Speaker Matt Hall (R-Richland Township), and Senate Majority Leader Winnie Brinks (D-Grand Rapids) reached an agreement late Monday night on broad spending targets for Fiscal Year 2027.

The deal comes roughly one week before the statutory deadline set in state law. The framework must now be refined into full budget bills and voted on by both chambers before the governor can sign them.

What the framework includes

According to Speaker Hall, the agreed-upon budget contains several key provisions:

  • No tax increases
  • No raid of the state's Rainy Day Fund
  • Increased funding for schools
  • No property tax rollback (Hall said discussions on that continue separately)

"I'm really happy about that and I'm hopeful that we'll get a deal," Hall said at his weekly 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."

Schools watching closely

Michigan schools face a tight timeline. Their fiscal years begin next week. Last year, the Legislature missed the July 1 deadline and bargaining extended past the October 1 start of the state fiscal year.

Jennifer Smith, legislative director of the Michigan Association of School Boards, said the framework is a positive sign.

"We are cautiously optimistic," she said. "A framework is definitely a positive step in the right direction. We're still waiting on spending amounts and details, but we hope that this means we're going to be able to get something done by June 30th."

Budget subcommittee chairs were expected to receive the topline spending targets Tuesday night so they could begin negotiating specific funding levels for K-12 schools, community colleges, public universities, and state departments.

Political tension remains

The State Budget Office released a statement praising the progress but criticizing House Speaker Hall for delaying negotiations so close to the deadline.

"It's late June, and the Speaker is finally serious about getting the budget done without blowing a $5 billion hole in the School Aid budget," the statement said. "We look forward to getting a budget passed ahead of July 1 that protects access to health care, invests in kids, and lowers costs for families."

Any final agreement will need bipartisan support. The House is controlled by Republicans, and the Senate is led by Democrats. The governor's office will still need to review hundreds of pages of spending line items before signing the final versions.

What happens next

The Legislature is scheduled to meet on Wednesday, June 24. The House meets at 10:00 a.m. for morning hour and noon for legislative business. The Senate also reconvenes Wednesday at 10:00 a.m.

If the framework holds and budget bills move quickly through committee and floor votes, Michigan could avoid another late-budget scenario. If not, Hall had previously floated the idea of a four-month continuation budget to keep government operations running while negotiations continue.