LANSING, Mich. (Michigan News Source) — The only thing Michigan lawmakers agreed on by July 1 was missing their deadline.
For the first time since a 2019 reform set a fiscal planning benchmark, the Legislature failed to approve any part of the next state budget—leaving more than $80 billion in spending unresolved and setting up a three-month race to avoid a partial government shutdown by Oct. 1.
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At the heart of the impasse: a divided Capitol, and a tug-of-war over school aid and road funding.
“Ultimately, it’s all about compromise,” Senate Appropriations Chair Sarah Anthony (D-Lansing) said. “But we’re not quite there yet.”
In May, Senate Democrats advanced a sweeping $84.6 billion plan that carved out $21.8 billion for education. But House Republicans, who only control their chamber, have advanced a narrower approach—approving just the education budget so far and linking it to a broader push for $3 billion in road funding.
House Speaker Matt Hall (R-Richland Twp.) said Senate Democrats refused to endorse a roads plan, despite House willingness to include some Democratic-backed school spending items.
“I think it was a pretty considerable give their way,” Hall told The Detroit News.
The impasse has frustrated school groups, who noted the state has now broken a reform promise made in 2019 to give districts budget clarity by July 1.
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“There is no reason to link K-12 funding and road funding unless you’re trying to raid one to pay for the other,” K-12 Alliance of Michigan director Robert McCann said.
The House plan includes a base per-student allowance of $10,025 and a $1,975 bonus per pupil, but removes many targeted programs. The Senate’s version offers $10,008 per student with dozens of line items for things like mental health, early literacy, and free meals.
Negotiators now have three months left before the fiscal year begins Oct. 1.