Michigan Faces Budget Impasse as Deadline Approaches Amid Disagreement

Michigan lawmakers face delays in closing last budget by deadline, risking complications for state's financial planning.
Budget book closing remains in limbo as deadline approaches

As the end of the month approaches, Michigan faces a potential delay in finalizing its budget from the previous fiscal year. The statutory deadline looms, yet state lawmakers are at an impasse regarding the necessary steps to close the books. This ongoing budgetary struggle places Michigan in a state of uncertainty.

Democratic members of the House attempted on Thursday to expedite Senate-approved book closing bills from committee to the House floor for a vote, but these efforts were unsuccessful. Meanwhile, the Senate has adjourned for spring break without addressing a proposal from the House.

The House proposal, supported by Republicans, would link the book-closing process to a contingency plan for government funding, in case the next budget is not finalized on schedule.

Chair of the Senate Appropriations Committee, Sarah Anthony (D-Lansing), acknowledged the significance of closing the books but noted other priorities may take precedence. “If folks aren’t willing to start moving things forward, we have to start moving forward on other things that we have to get done, like the FY26 budget, trying to find a pathway for a roads deal to come forward,” Anthony remarked.

State law mandates the budget director to present a comprehensive fiscal report by the month’s end, and an unresolved budget could impede this process.

Despite the impending deadline, Ann Bollin (R-Brighton Twp.), Chair of the House Appropriations Committee, shared a similar perspective on the legislative deadlock. She expressed her desire to finalize the books by March 31 but indicated that an immediate resolution was not critical, even amid concerns of potential impacts on the state’s credit rating and borrowing capability.

“I don’t think it’s going to harm us the way it’s been stated that it will as far as credit rating and bonds so we can’t take on more debt. I don’t think that’s a bad thing,” Bollin stated.

Bollin remains optimistic about closing the books before the next budget cycle and maintains that communication with the Senate remains positive. “They’re friendly,” Bollin mentioned. “I think we all want to get to the same end. It’s just, we have different path. I think that we’re a team. We have very much a shared vision,” she added.


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