State Budget

The process for adopting a state budget this year was swift, secretive, and successful at getting a plan finalized just before the deadline. That allowed Governor Gretchen Whitmer to a $62.7 billion dollar state budget just before the new fiscal year begins Thursday.

Michigan lawmakers will return to session to pass a multibillion-dollar plan to resolve the deficit caused by the coronavirus shutdown — with a mix of spending cuts, a drawdown of the state’s savings and a big influx of federal rescue aid.

The state of Michigan, like many states across the country, is facing a projected revenue shortfall of billions of dollars—upwards of $6 billion according to the state’s most recent revenue estimating conference. Now, the state faces a two-fold problem—how to avoid cuts before this fiscal year ends, and what to do about the projected shortfalls next year.  

The state may give itself a one-time reprieve from the requirement to have a budget adopted by the beginning of July. That date aligns with the fiscal years of local governments and school districts.

That’s due to the impact of the COVID-19 crisis on the Michigan economy and the state budget.

Gov. Gretchen Whitmer and four legislative leaders have met after she vetoed nearly $1 billion from the newly signed budget, but their discussion was mainly focused on policies such as criminal justice.

The Republican-led Michigan Legislature has begun passing $44.7 billion in proposed spending as it works to complete the next state budget.