(Source: MIRS.news, Published 06/27/2022) The Budget Office and the Legislature have reached a tentative deal on a framework for the Fiscal Year (FY) 2023 budget with the plan being for the Legislature to hold session Thursday in order to meet the July 1 statutory deadline.
Both the House and Senate are scheduled to meet on Thursday with conference committees starting earlier in the day.
Under the framework, roughly $4 billion ($2 billion General Fund, $2 billion School Aid Fund) will remain on the balance sheet as the Governor and legislative leaders continue discussions on what to do with the excess.
In simplistic terms, the Senate remains intent on passing a gas tax holiday. The House wants an income tax cut along with additional debt pay-down. The Governor has suggested a $500 rebate and an additional deposit into the Strategic Outreach and Attraction Reserve.
None of the ideas are mutually exclusive and sources say there's room to do a little of everything. The timing will be the question. Do the three sides want to strike a deal prior to the Nov. 8 election, or wait to see if their leverage looks better after the election is over?
Also, while the framework was agreed to, there are several details that need to be ironed out. The most contentious is language connected to the U.S. Supreme Court's decision on Roe v. Wade and how that impacts some money in the Department of Health and Human Services (DHHS) and School Aid Fund budgets.
On Friday, Rep. Matt Maddock (R-Milford) suggested that Attorney General Dana NESSEL have some money taken out of her budget for vowing to not press charges against doctors who still perform abortions despite the high court's decision.
With emotions running high on that high court ruling, negotiators are trying to figure how state spending figures into that ruling and that is one of the major items still on the table.
Throughout the negotiations, Gov. Gretchen Whitmer, Senate Majority Leader Mike Shirkey (R-Clarklake) and House Speaker Jason Wentworth (R-Farwell) were brought in at various times to settle specific issues, MIRS has learned. DHHS Director Elizabeth Hertel was brought in to handle the DHHS portion, which got tense, at times.
House Appropriations Committee Chair Thomas Albert (R-Lowell)'s perceived rigidity became an issue that required the Speaker to take a more active role, according to sources. Also, Senate Appropriations Committee Chair Jim Stamas (R-Midland) insistence on making the Capital Outlay budget being part of the negotiations rubbed some the wrong way.
However, the fact that an agreement is coming together in a bipartisan manner is lifting spirits that the budget will be done by the July 4 holiday, even if there are some wrinkles at the moment.
