Michigan budget talks: Free school meals, $10k per student, nearly $2B for roads

LANSING — Will today be the day?

While the Michigan Constitution required lawmakers and Gov. Gretchen Whitmer to adopt a balanced budget by Wednesday, officials instead opted to pass a stopgap spending bill to extend negotiations.

The move kept state government open — temporarily averting a shutdown — as officials said they continued working to finalize the real spending plan “this week.” 

Recent action in Lansing suggests the budget could be unveiled today, and votes could soon follow. Here’s what we know so far, with updates below: 

  • Bills coming: House and Senate leaders will convene special committees tasked with reviewing a final budget shortly after 1 pm this afternoon. That means, at some point later today, the public will likely be able to view the proposed spending plan for the first time.
  • Free school meals: Whitmer and House GOP officials have both made clear that the final budget will include funding to continue the state’s universal free school meals program. On Wednesday, the governor urged Michigan schools to continue providing no-cost meals to students even though the budget was not done. The bill “will continue funding free school meals for all,” she promised.
  • Record per-pupil funding: House Republicans confirmed the compromise budget plan will include $10,050 in per-pupil spending for the 2026 fiscal year, up from $9,608. It also includes $321 million for private and public school safety and mental health supports.
  • Roads: The plan will include nearly $2 billion in new and annual funding for road repairs, likely through a mixture of a new 24% wholesale tax on marijuana, delayed business tax breaks and potential changes to a state economic incentive program.
  • No tax on tips: Republicans say the budget will include some of their top priorities, including  a provision to exempt tips, overtime and Social Security from the state income tax. They say it would also eliminate at least 2,000 “phantom employee” positions in the budget.
  • Selfridge, storm recovery:The budget is expected to include $26 million to support a new fighter mission at Selfridge Air National Guard Base also backed by the federal government, along with $14 million for ice storm recovery money for northern Michigan.
  • Earmark transparency: The deal is expected to make permanent new rules requiring requested budget earmarks to be made public before a final vote. Senate Democrats agreed to House reforms on Monday and onTuesday began making hundreds of millions of dollars in requests public ahead of the vote. 
  • Likely not in the budget? A $50 million earmark for the Upper Peninsula’s Copperwood Mine, a longtime want for area Republicans. UP lawmakers say they’re still fighting for it, though. 
  • 3:35 pm update: Opposition to the House-approved 24% wholesale tax on marijuana has emerged in the Senate, where Democratic Sen. Sylvia Santana of Detroit says she’s trying to find an alternative way to generate revenue. Republican House Speaker Matt Hall or Richland Township told reporters he’s opposed to any changes in the tax plan, saying that if Senate Democrats “tried to change the terms of the deal, we would strip it out, and we’d send it back the way it was. … The time to change a deal is over.”
  • 4:00 pm update: Michigan lawmakers are seeking to add more than $350 million in earmarks to the state budget, far more than the $100 million cap that Speaker Hall wanted. The Senate Appropriations Committee read into the record nearly 200 earmarks totaling $263 million that will be “eligible” for inclusion in the final budget, according to Chair Sarah Anthony, D-Lansing. Senate Majority Leader Winnie Brinks, D-Grand Rapids, is requesting another $100 million earmark for RX Kids, a program that offers direct cash assistance to new and expecting mothers.
  • Update 8 pm: A legislative conference committee approved a $51.8 billion spending plan for state departments and agencies. The conference report gives the public a first look at much of what — and won’t – be in the budget that lawmakers are expected to vote on. What is not yet know: The School Aid budget. That’ll be in a separate bill, but the conference committee has not yet met.
  • Update 9:45 pm: The full Michigan House approved the general omnibus budget in a 101-8 vote. It includes $51.8 billion in spending for the new fiscal year, along with $2.6 billion in supplemental spending. The bill now heads to the Senate.
  • Update 9:50 pm: A conference committee approved a new $24 billion education omnibus budget, setting up potential floor votes later tonight. The conference report provides the public with a first look at what is in the education budget.
  • Update, Friday 1:10 am: In a series of 31-5 votes, the Michigan Senate approved the $24 billion education budget, which still needs House approval, and the $51.9 billion general omnibus budget.
  • Update, Friday 2 am: The House approved the education budget bill in a 104-5 vote but was still waiting on the Senate to approve the marijuana tax proposal, which was part of the deal Whitmer and legislative leaders agreed to.

Return to Bridge Michigan for more state budget coverage.

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