LANSING, Mich. -- State lawmakers in Michigan have reached an agreement on the Fiscal Year 2027 budget, which is set at $75.2 billion. This figure is notably lower than the $88.1 billion proposed by Governor Gretchen Whitmer and the $88 billion approved by the Senate. The House had approved a budget of $75.8 billion. House Speaker Matt Hall confirmed that the budget does not include any tax increases or withdrawals from the Rainy Day Fund.
The budget agreement comes after lengthy negotiations between legislative leaders and the Budget Office.
The budget framework agreement was reached without property tax cuts, a point of contention for some lawmakers. House Speaker Hall, representing Richland Township, emphasized fiscal responsibility, stating, "For months, House Republicans have been fighting for fiscal responsibility and Michiganders' top priorities."
Despite the agreement, the budget has not yet been voted on. The process is expected to continue through the week, with the goal of sending the final deal to the governor by the July 4 holiday. The budget includes more funding for roads, record per-pupil school funding, and increased funding for police and public safety.
The budget negotiations have been challenging, with both parties needing to compromise to reach an agreement. The Democratic-led Senate focused on ensuring free school meals for all kids and reforms to the state's Freedom of Information Act. Meanwhile, Hall has been opposed to what he considers "pork spending" and has focused on cutting waste from the state budget.
As the state faces slower revenue growth and potential federal policy changes, the budget aims to balance fiscal responsibility with necessary funding increases. The final votes on the budget are expected soon, with hopes of completing the process before the start of the new fiscal year on October 1.