The Legislature returns to the state Capitol this week in hopes of wrapping up a state budget before the deadline of 12:01 a.m. Wednesday, when the new fiscal year begins. If the fiscal year begins without a budget, that would trigger a partial state government shutdown with the temporary loss of some public services.
Governor Gretchen Whitmer’s administration has not shared any plans for managing a possible shutdown, or sent notices to state employees that layoffs are possible. Whitmer and House and Senate leaders are betting they can navigate the blizzard of details and procedures that will have to be dealt with in time to meet the deadline. The Michigan Constitution requires the state to have a balanced budget.
Members of the Whitmer administration, House and Senate appropriations committee and legislative staff have been scrambling since late last week to accelerate the long-stalled budget process.
On Thursday, Whitmer, Senate Majority Leader Winnie Brinks (D-Grand Rapids) and House Speaker Matt Hall (R-Richland Township) announced some big picture agreements that include a new wholesale tax on marijuana to help raise revenue for roads, and providing an income tax break on tips, overtime pay and Social Security checks. On Friday, House and Senate appropriations chairs announced broad spending targets had been set for different parts of the state budget.
That set in motion the granular work of bargaining spending levels, program priorities and the hundreds of line items and boilerplate language that make up budget bills. Once that work is done and with the OK of leadership, budget bills will be rolled out, details will be revealed and rank-and-file legislators, staff members, lobbyists and interest groups will begin to sort through what could be a madcap round of cajoling and dealmaking to get the budget across the finish line on time.
But it won’t be on time for K-12 schools as well as many local governments, community colleges and public universities that began their fiscal years in July without knowing what their state financial support will be. Their budget planning for fiscal years already underway will have to be adjusted based on decisions made this week in Lansing.
