(The Center Square) – The Michigan legislature officially missed its July 1 deadline for the state’s fiscal year 2026-27 budget.
Wednesday was the statutory deadline for the finalization of Michigan’s budget, including the separate School Aid budget. This is the second year in a row the state legislature has missed this July deadline.
Negotiations between the Republican-controlled House and Democratic-controlled Senate and Gov. Gretchen Whitmer’s administration remained ongoing throughout Wednesday, with no final budget agreement announced.
Negotiations have been ongoing for the past few months. Just last week, Republicans announced a budget “framework” had been reached.
That framework includes no tax increases, no depletion of the state’s rainy-day fund, and a smaller budget than last year’s.
This is according to Michigan House Republicans, who currently control the state House. The finalized budget will require compromise though, as Democrats control both the state Senate and the governorship.
In April, House Republicans approved a $75.8 billion budget plan. The proposal reduced overall spending by $106 million and cut nearly $600 million from the state’s general fund, while avoiding new taxes and adding to the state’s rainy-day fund.
The Republican plan stood in sharp contrast to the Democrat plan and Whitmer’s executive budget proposal unveiled earlier this year.
Whitmer’s plan totals $88.1 billion – about $10 billion higher than the House version – and includes record K-12 education spending, tax relief for seniors and additional investments across multiple state programs. Similarly, Senate Democrats approved a $88.1 billion budget plan in April.
In Michigan, the fiscal year begins Oct. 1. Last year, the legislature blew past both the July and October deadlines – not officially passing a budget until Oct. 8.
There are no penalties for the legislature to miss those deadlines, though it leaves financial uncertainty for schools, state agencies and employees, and other groups that receive taxpayer funding from the state.
As of Thursday morning, Whitmer, Senate Democrats, and House Republicans have not publicly commented on the status of budget negotiations.
