In a rare midnight session, Michigan’s legislative body finally reached consensus on a long-awaited budget plan, just days past the critical deadline. The session kicked off with an invocation from Senator Sarah Anthony (D-Lansing), who urged divine support to guide the budget process. “Dear God, help us pass this budget,” she prayed, setting the tone for a bipartisan agreement that was soon to follow.
Despite the partisan divide—Democrats holding the Senate and Republicans leading the House—the legislative chambers managed to finalize an approximately $80 billion budget. This mirrors last year’s budget in terms of total spending but includes slight increases for K-12 education and significant cuts to economic development incentives previously supported by Governor Gretchen Whitmer.
The budget provisions include maintaining universal free meals in schools, allocating fuel sales taxes exclusively for road projects, and removing income taxes on overtime and tips. These measures are anticipated to generate around $1.9 billion for infrastructure improvements over several years. The new fiscal year started on October 1, but the budget was only officially extended hours later when Whitmer signed a temporary stop-gap measure.
House Speaker Matt Hall (R-Richland Township) stood by the decision to miss the deadline, emphasizing that the finalized budget reflects fiscal responsibility. “I think this budget is really about value for the dollars, whether it passed before or after,” Hall stated. He expressed relief at avoiding what he termed “pork” spending, which would have been unfavorable to voters.
However, Democrats criticized Hall for what they perceived as unnecessary delays and inflexibility. They argued that the budget impasse was an avoidable political fiasco. A contentious element of the budget is a new wholesale tax on marijuana, projected to raise $420 million, yet facing backlash for potentially harming Michigan’s legal cannabis market.
Senator Jeff Irwin (D-Ann Arbor) voiced concerns about the tax’s impact. He argued it could push consumers back into illegal markets and possibly face legal challenges under Michigan’s voter-approved marijuana laws. “The more the public hears about this, the more the public hears about how this is going to drive a huge number of customers back into the illicit market,” Irwin warned.
Governor Whitmer, who had signed the interim budget extension earlier, expressed satisfaction with the final budget agreement. In her statement, she highlighted the bipartisan effort to deliver critical services and tax relief to Michiganders. “Today’s balanced, bipartisan budget is a big win for Michiganders,” Whitmer said, noting the benefits for seniors, families, and students, as well as community safety measures.
With the temporary extension in place, Whitmer has a deadline until Wednesday to finalize the budget by signing the new bills into law.
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