July 2 Looking To Be Go-Day For Budget

(Source: MIRS.news, Published 06/30/2026) Legislative leaders and the Budget Office spent another day ironing out the final pieces of a Fiscal Year (FY) 2027 budget agreement, likely blowing through the statutory July 1 deadline to finish next year's spending document, but on pace to send a final deal to the governor by the July 4th holiday.

The working expectation, at this point, is to pass one large omnibus spending bill and a School Aid Fund bill (school bus) on Thursday, a process that might stretch into Friday, July 3, which is an observed state holiday this year due to Independence Day falling on a Saturday this year. The School Aid Fund budget (HB 5630) is on the House and Senate agenda for July 1, but no conference committee meeting is scheduled as yet. One source said the odds of the “School Bus” moving on Wednesday are 50/50.

House Speaker Matt Hall (R-Richland Township) announced last Tuesday that a budget framework agreement had been reached that included no tax increases, no Rainy Day Fund withdrawals, lower state spending than last year, but no property tax cuts, either.

Target numbers for individual state budgets were set on Thursday after some longer discussions on what the budget cuts were going to look like. Starting Friday, subcommittee chairs met over the weekend to hammer out the granular details.

That process is over. The hold up now is the painfully slow logistics of the leaders working to negotiate over “elevated” spending items — including the legislative earmarks — and numerous policy bills such as streamlining housing permits, medical debt, the 340B program, Kratom, and potentially some economic development pieces.

Meanwhile, Michigan Forward, the DeVos-funded, pro-Republican advocacy group, popped off for the second day of press releases trumpeting the House Republicans passing a “responsible, balanced budget” while Gov. Gretchen Whitmer's initial proposal and the Senate Democratic plan “increased spending.”

On Monday, Michigan Forward's press release offered that the budget will also include more funding for roads, record per-pupil school funding, and more money for police and public safety.

“For months, House Republicans have been fighting for fiscal responsibility and Michiganders' top priorities,” said Gabe Butzke, a spokesperson for Michigan Forward Network. “As the July 1st deadline approaches, it is Speaker Matt Hall’s caucus that’s put in the work on the budget.”

Neither the Budget Office nor Senate Democrats have offered a response up to now, seemingly content to let Hall and Republicans frame the negotiations as something he's winning (for now) to honor the trifecta's confidentiality agreement.

Since the law passed as a part of the 2019 budget process that requires the Legislature to pass a budget plan by July 1, lawmakers have been late in 2020 and 2025. The 2020 date was somewhat excusable, though, as the state didn't know in June what type of federal COVID relief money was coming in June.

The budget was half done in 2021 by July 1, but out of the House and Senate chambers in 2022, 2023 and 2024.

Before the July 1 deadline was put into statute, the last five budgets with split state government control during an election year looked like this:

- 2010, School Aid passed on July 1. General government budget passed Sept. 29.

- 2008, School Aid passed on July 23. General government budget passed July 24.

- 2006, School Aid and Omnibus both passed on July 26.

- 2004, School Aid passed Sept. 8. General government budget passed Sept. 14.

- 1998, School Aid passed on July 1. General government budget passed Sept. 24.