Great Lakes Wire

Gov. Gretchen Whitmer, House Speaker Matt Hall, and Senate Majority Leader Winnie Brinks met privately to discuss the Fiscal Year 2026 K-12 budget and a potential road funding deal. The meeting, held in the Governor’s Capitol ceremonial office, lasted about an hour but did not result in an agreement.

The Senate expressed its desire to finalize the entire FY '26 budget before July 1. However, this goal appears unlikely as the House has yet to advance many of its General Fund-dependent department budgets. Senate leadership seeks clarity on where House Republicans stand regarding the budget, particularly concerning their plans for cutting income tax and finding $3 billion for road funding without raising taxes.

Senate Democrats are concerned about House Republicans potentially delaying spending new School Aid Fund (SAF) revenue. They question whether this move is intended to support future roads deals or tax cuts. On the other hand, House Republicans want insight into Senate Democrats' long-term road funding strategy.

Governor Whitmer prefers reaching a deal that includes a long-term road funding component sooner rather than later. Meanwhile, both legislative chambers remain at an impasse at the Capitol, each daring the other to adjourn first.

The Senate has adjusted its calendar to hold sessions on July 1 and 2 to align with the House's schedule. Originally scheduled session dates for July and August were limited; however, additional dates have been added by Senate Majority Floor Leader Sam Singh.

In response to stalled negotiations, House Republicans prepared a second K-12 budget bill but did not proceed with it as talks continued. The House adjourned after eight hours without progress on education budgets. Hall remains optimistic about securing K-12 funding by July 1 following discussions with Governor Whitmer and Senator Brinks.

Hall emphasized his commitment and that of his fellow Republicans to work through upcoming days toward achieving agreements on roads and education by July 1. He stated that although no voting session is planned before then, "anything’s possible."

He clarified that while previous views considered July 1 as merely aspirational, current negotiations focus on meeting this deadline due to its significance in school budgeting processes.

Negotiations have yet reached decisions regarding conference committee processes or bill substitutions; both options remain viable according to Hall.

If resolved successfully alongside transportation plans related thereto,"unlocking"the rest of state budgets could follow suit accordingto him.Hall hopes even if transport budgets aren’t passed by said date,a plan announcement would suffice.He acknowledged challenges involving higher education/community colleges/Michigan Department Education/Lifelong Education Advancement Potential within tight timeframe set forth hereon too difficult achieve simultaneously alongside K–12 targets alone .

Key points agreed upon among parties include ongoing negotiation efforts being prioritized despite differing stances over specific issues like per-pupil allowances within educational contexts/funding mechanisms absent tax hikes addressing transport needs respectively."

The main concern from Hall's caucus arose when it seemed unlikely another session day would occur before deadline passing,but resolution came once more days added onto senate schedule easing pressure felt earlier amidst proceedings altogether."

Legislators established late last year requiring complete budget finalization/voting completion including comprehensive coverage across schools,state departments,higher ed signed governor summer prior implementing policies thereafter effectively."

Article courtesy MIRS News for SBAM’s Lansing Watchdog newsletter