Michigan Gov. Whitmer, legislative leaders reach 'framework' deal for state budget
Published in News & Features
LANSING, Mich. — Democratic Gov. Gretchen Whitmer and Michigan legislative leaders reached an agreement Monday night on the framework for the state budget, about a week before the statutory deadline for passing the multibillion-dollar spending plan.
Few details were given of the "framework" agreement announced by House Speaker Matt Hall, a Republican. The agreement signed by Hall, Whitmer and Senate Majority Leader Winnie Brinks, a Democrat, would bar new taxes and prohibit any disbursements from the state rainy day fund, Hall said Tuesday.
The agreement comes after Hall criticized Whitmer's latest overseas trip during budget negotiations.
"I'm really happy about that; I'm hopeful that we can get a deal, hopefully today, on targets," Hall said of the target spending allowance for each state department.
The fate of withdrawals from the School Aid Fund for college spending, which Hall said last week would be a key part of that framework, remains secret. So do the fate of several policy bills that have been, at various points, part of budget negotiations. It's not clear whether legislation meant to cut property taxes will be part of the final agreement.
The agreement, Whitmer's office said Tuesday, puts the state "on a path to pass a balanced, bipartisan budget by the July 1 deadline."
"A final budget still requires 20 votes in the Senate, 56 votes in the House and a signature from the governor," Whitmer's spokesman Bobby Leddy said. "We will continue to be at the table and ready to get it done, no matter how long it takes."
Rosie Jones, a spokeswoman for Brinks, acknowledged that a framework agreement had been reached.
In 2019, the Michigan Legislature passed a law requiring the state budget to the passed by July 1 each year, in part to help school districts whose calendar year runs from July 1 through June 30. However, the Legislature has frequently cruised past that July 1 deadline and, last year, also passed its constitutional deadline of Sept. 30.
Hall has previously expressed a desire to pass roughly $5 billion in property tax relief, or at least part of it, as part of any sort of budget deal. It is not clear whether those bills will be tied to the budget.
"Hopefully, we have a deal that has property tax relief, that has some of the Democrats' priorities on policy and then that happens alongside the budget," Hall said, noting some of the policy bills sought by both chambers have fiscal impacts.
"It'd be better to do it during the budget, and I'm hopeful we will," Hall added. "But, you know, I think it's kind of mutually assured destruction here, right. I mean, if they aren't going to do property tax cuts, then we won't do their policy."
Additionally, Hall said Tuesday that he's hopeful a package of bills imposing new regulations on nonprofit hospitals will pass the House "quickly."
The House Government Operations Committee has scheduled a Thursday morning hearing on the bills. Hall said Tuesday that he wants to see them included in a budget deal.
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