This week, the House and Senate both passed proposed budgets for the upcoming 2017-2018 Fiscal Year.  This was the next step in the process to secure the completion of budgets prior to the self-imposed deadline of early to mid-June.

In keeping with past years, the House passed two omnibus budgets; one for K-12, Community Colleges, and Higher Education and another for the remaining areas, such as state departments and the legislature.  While the omnibus budget spends 1.3% more than the current fiscal year, it is $272 million less than Governor Rick Snyder called for in his executive recommendations.  The school omnibus budget also spent less than Governor Snyder proposed, by $13.2 million.

Highlights of the House budget plan include:

• $14.3 billion for K-12 schools
• An increase of $100 in per-pupil funding
• $129.1 million for at-risk students
• 1.9% increase for public universities
• 100 additional Michigan State Police troopers
• $850,000 to study how best to fight opioid abuse in the Medicaid population in Kalamazoo County

The Senate, however, chose to continue their practice of one budget bill per department or area, with a few rolled up into a general government budget.  The total spending is also below the executive recommendations by $542 million; $270 million in general fund dollars and not include the proposed $266.5 million deposit into the state’s rainy day fund.  Senator Curtis Hertel (D-East Lansing) offered an amendment on the Senate floor to use those funds on funding for infrastructure improvements throughout the state, however it was not adopted by a close vote of 18-19.

Highlights of the Senate budget plan include:

• Increased per-pupil funding between $88-$176 per student
• $2.5 million increase to skilled trades training
• $100 million increase and expansion in at-risk funding
• $207.4 million for infrastructure
• $2.5 million for nonpublic schools to cover the costs of state mandates

The House and Senate proposed budgets will now be sent to the other chamber for consideration.  In addition to the several points of difference between the two chambers and the executive office, there remains a few hundred million dollars on the table to be appropriated.  “While there are no concrete plans on how best to spend the unappropriated funds, there are a few proposals being floated around.  Proposals including, changes to the tax system, additional funding for roads and bridges, or changes to the Michigan Public School Employees Retirement System (MPSERS), to name a few.  Over the next month, the House, Senate, and administration will negotiate on how best to use those dollars,” stated Sean Mann of MLC.  Following the May 17 Consensus Revenue Estimating Conference, targets for each budget will be set, and the House and Senate will then work to come to a final agreement.

Michigan Legislative Consultants is a bipartisan lobbying firm based in Lansing, Michigan. Our team of lobbyists and procurement specialists provide a wide range of services for some of the most respected companies in America. For more on MLC, visit www.mlcmi.com or connect with us on LinkedIn and Twitter.