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State lawmakers meet late into the night to pass 2025 FY budget

by Sophia Murphy
June 26, 2024
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LANSING, Mich. (WZMQ) – State lawmakers are still in session, waiting for the latest version of the next fiscal year’s budget bills to be approved. The legislators have been working since 10 am to negotiate final changes and come to a consensus on the budget bills for the 2025 fiscal year, negotiating their funding targets and balancing the numbers they hope to put on the governor’s desk before the end of the week.

One part of the legislation that would make changes to the teacher’s pension fund has slowed work in the state House of Representatives this week.

Craig Thiel, Research Director for the Citizens Research Council of Michigan explained that one of the most difficult parts of the budget process this year has been a piece of companion legislation that would make changes to the Michigan Public School Employee’s Retirement System or MPSERS, and free up $670 million.

“There’s a lot of moving parts here and it really can’t move until all those pieces are kind of settled. If it gets hung up for any reason, it could hang up the budget if the budget’s based on that legislation.” Thiel said. “The legislature has a little different approach to programming these dollars and that’s the current friction right now with getting a budget deal in place.”

The original bill proposed by the governor lowered the percentage the state contributes to the fund and used excess money to cover the costs of her Pre-K for All Program. Both chambers have passed their own versions that differ from the governor’s plans. The House’s passed just yesterday down party lines and would reduce school districts’ contribution while sending that $670 million back to school systems.

The bills have seen support from education groups in the state, but as they are finalized legislators are still pushing to make changes. State Representative Greg Markkanen (R-Hancock) said he’s concerned touching the MPSERS fund could set back the state’s schedule to pay off pension debt.

“Retired teachers across our district and most of michigan are against this,” Markkanen said. “It’s just going to extend that payment out and it’s the wrong thing to do. it’s not good government.”

The lawmaker’s conversations are still ongoing, they plan to continue work on the budget tonight until they can finalize the legislation and adjourn for the summer.

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