LANSING, Mich. — With just five days remaining before Michigan’s July 1 budget deadline, state lawmakers left the Capitol Thursday without finalizing a deal.
Legislative leaders met with Governor Gretchen Whitmer behind closed doors in the afternoon, discussing an education funding plan that could sidestep the traditional budget process. The House has only advanced a K-12 proposal—one that diverges sharply from typical school budgets—while the Senate passed its full state budget package in May.
House Speaker Matt Hall (R-Richland Twp.) said lawmakers are focused on securing funding for public schools and local roads. “I think there’s a lot of momentum towards getting a July 1 budget done on the schools. Myself and House Republicans are very optimistic,” Hall told reporters Thursday evening.
The House’s plan eliminates many categorical funding streams in favor of increased per-pupil funding, which House Republicans say will give more flexibility for school districts. Senate Democrats and the Michigan Department of Education have pushed back, arguing categorical programs provide essential structure and support for student outcomes.
State Budget Director Jen Flood says she feels “optimistic” about the last round of budget talks and said she believes lawmakers can meet the deadline.
Typically, both chambers pass budget proposals in May and spend June negotiating a compromise. This year, the House delayed its education plan until mid-June, narrowing the time left to reach an agreement and schedule a final vote.
Even if lawmakers align on a K-12 plan, procedural hurdles remain. The House and Senate have just one scheduled session day to hold a joint conference and vote before July 1, but both chambers are scheduled to meet on July 2.
As of Thursday night, there’s been no public discussion of the larger general fund budget, which must be finalized by September 30. Lawmakers are scheduled to break from regular session in July.
