LANSING, Mich. (WZMQ) – Movement has begun on the state budget in Lansing. Today, lawmakers met for around nine hours, working with the Senate to iron out a compromise, passing budget outlines and accessory bills.
Lawmakers blew past the statutory deadline back in July, the Senate having passed its own version in June, but the House waited until August. Negotiations to find common ground were stalled for months. Now, the beginning of the new fiscal year looms, with five more days until the lack of a budget could cause a government shutdown.
One of the major hang-ups has been a road funding plan. The governor made it clear in February, this years budget needs to include a $4 billion road plan that will fund road and bridge repairs now that her bond plan has expired.
In the House, three bills were passed to pave the way for a state road funding plan and a final budget agreement: House Bills 4961, 4951, and 4968.
HB 4968 would ask the federal government for a waiver from the Trump Administration regarding the One Big Beautiful Bill and Medicaid provider taxes. The bill passed 95-4.
HB 4961 decouples state and federal business tax incentives. Currently, as federal business taxes change, so do state taxes. The bills create a separation, to keep state business taxes and incentives at the current levels, and allow for that revenue to be used elsewhere. The bill passed 95-4.
HB 4951 creates a wholesale tax on marijuana products to generate revenue for michigan road repairs. Originally, House Republican leaders ruled out a tax increase to cover that cost, but talk of a 24% tax on the wholesale price of all cannabis products came to the forefront during conversations today. The bill passed 78-21.
The Senate passed a few vehicle bills, which don’t contain actual dollar amounts but will be used when the chambers come together to build the final document.
Governor Gretchen Whitmer, Speaker of the House Matt Hall, and Senate Majority Leader Winnie Brinks all relesed statements following session.
“Today’s agreement in the legislature puts us on a path to lower costs, fix the damn roads, and pass a balanced, bipartisan budget by October 1,” said Whitmer. “I am grateful to Majority Leader Brinks, Speaker Hall, and legislators on both sides of the aisle for working hard to move this budget forward. In Michigan, we’ve proven again and again that we can work together to get things done by staying focused on the kitchen-table issues that make a real difference in people’s lives. Amid so much national economic uncertainty, I am proud that we are taking action to lower costs, cut taxes for seniors and working families, create jobs, fund schools, fix roads, keep people safe and healthy, and so much more.”
“We have an opportunity here to reform Michigan’s broken process and get much better value for the taxpayers,” said Hall. “There is still work to be done, but it is an important step that all of us are agreeing to implement meaningful tax relief for Michigan workers and seniors, bring transparency and accountability to the earmark process for the first time, and eliminate ghost employees. Government has grown far too much in recent years, and we need to trim the waste, fraud and abuse in Lansing. That’s how we can afford the real priorities of Michigan families – like education, public safety, and fixing our local roads and bridges. This agreement puts us in position to do just that.”
“The people of Michigan deserve a budget that makes their daily lives better — a budget that boosts education, improves roads, and protects healthcare,” said Brinks. “The framework we have agreed to reflects the priorities of Michiganders from every region, and while no budget will be a perfect product, I am confident that the final result we vote on next week will have features that benefit every resident.”
Both chambers have added session days to the calendar, now meeting at 10 AM on September 26 and 29 on top of their previously scheduled day on September 30. This gives lawmakers two extra days to continue talks and make good on their word to pass a plan before 11:59 PM on September 30 and avoid a government shutdown.
