Less than a week ahead of an October 1 deadline to avert a partial state government shutdown, and months past a due-date written into state law, Governor Gretchen Whitmer and the leaders of the state House and Senate announced Thursday evening that they have "reached an agreement" to pass a budget to keep the government funded.
“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,” Whitmer said as part of a joint statement. “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.”
The budget deal was elusive in part because it needs to be bipartisan; Republicans control the state House, and Democrats have the majority in the Senate.
“We’ve all committed to getting this done on time,” said House Speaker Matt Hall (R-Richland Township). “We’ve all agreed to the major components that have been holding up this process, and now we’ve got to sprint to the finish line to get this done for the people of Michigan.”
Senate Majority Leader Winnie Brinks (D-Grand Rapids) said she expects rank-and-file lawmakers will concur with the spending plan.
"The framework we have agreed to reflects the priorities of Michiganders from every region,” she said, “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.”
Representative Mark Tisdel (R-Rochester Hills) said fitting together the competing demands throughout the budget made for complicated bargaining.
“You know, it’s like kind of playing Jenga, right? You pull one out and throw it away, it can impact the whole tower,” he said before the deal was announced. “So, we’re just plugging away at them one at a time, but it’s genuine progress.”
Under state law, the budget is supposed to be in place by July 1. That's in part because that's when K-12 schools start their fiscal years, and after weeks without knowing what funding they'll get from the state for this school year, some have publicly pondered taking out loans to make ends meet.
Funding for K-12 schools has been a key sticking point in the budget negotiations. House Republicans wanted to increase overall per-pupil funding for schools, but do away with many of the funding categories, like money for free school meals and student transportation, that Democrats said was essential.
Republicans said eliminating requirements on how the money is spent would give local districts more flexibility. Democrats said it would force schools into tough choices about what to fund.
There are still few specifics laid out on how the tens of billions of dollars in the state budget will be allocated. This agreement in concept must still be put into bill form to be passed by the Legislature and sent to the governor.
"The administration and legislative leaders will continue meeting to finalize and pass the budget," Whitmer's office said. That means getting the legislation across the finish line in time to meet the October 1 deadline to forestall a shutdown will still come down to the wire.
