Lower Than Expected Revenue Forecast Drives Final State Budget Negotiations

After receiving less than encouraging news on the state’s revenue forecast, legislative leaders have been engrossed in discussions about where to make the necessary cuts in the proposed budgets.

Under an agreement reached May 25, Governor Snyder's proposed increase of $61 million for higher education would be scaled back, as would a $165 million state infrastructure fund. It was also reported that an agreement was reached on the repeal of an insurance industry tax credit amounting to $80 million, and that $40 million will be trimmed from the K-12 budget. The remaining $165 million in funding left to be appropriated for Flint will remain intact under the proposal. The Governor originally proposed $195 million, $30 million of which has already been appropriated. Read more.

With final targets in place, the conference committees are now convening to reconcile the chambers’ respective budget disparities with the hopes of finalizing a state budget by early June. Senators Jim Marleau (R-Lake Orion), Peter MacGregor (R-Rockford) and Curtis Hertel, Jr. (D-East Lansing) were appointed as Senate conferees; and Representatives Robert VerHeulen (R-Walker), Earl Poleski (R-Jackson) and Harvey Santana (D-Detroit) were appointed as House conferees for the Department of Health and Human Services budget, House Bill 5274.