Michigan legislature misses legal deadline for new budget, triggering finger pointing over holiday

Michigan politicians failed to finish negotiations by the July 1 deadline for the state’s budget, instead recessing for the July 4 holiday.

July 1 is the legally mandated statutory deadline for the finalization of the entire budget for the 2025-2026 fiscal year, including a separate k-12 education spending budget.

The House and Senate failed to reach an agreement on the education budget after Republicans and Democrats proposed vastly different plans, as previously reported by The Center Square.

With the Senate and governorship run by Democrats and the House run by Republicans, compromise will be necessary on the budget.

Yet, both sides of the political aisle are blaming the other for the delay, which causes uncertainty for school districts facing a July 1 start to their fiscal year.

Republicans blamed Senate Democrats, saying they are failing their districts.

“House Republican leadership has been trying to get Senate Democrats to the table for weeks to avoid a government shutdown. Their refusal to work with us is incredibly disappointing,” said state Rep. Jason Woolford, R-Howell. “House Republicans will continue to do our job and get a budget plan across the finish line in time to avoid a government shutdown, but if we are successful, it will only be in spite of Senate Democrats, not because of their help.”

Democrats put the responsibility on Republicans.

“House Republicans led by MAGA Rep. Matt Hall decided they'd rather play political games than serve the people of Michigan, and now they've blown the deadline to complete the state's education budget,” said the Michigan Democratic Party in a statement.

Hall shifted the liability back to Democrats.

“House Republicans and the governor were at the table, ready to negotiate and get an education budget across the finish line for Michigan's students and schools,” Hall, who is speaker of the House, said. “Unfortunately, the Senate chose to walk away from negotiations. That's why we still don't have an education budget passed. Michigan's families deserve better than political games and last-minute chaos. We're ready to finish the job whenever the Senate decides to show up.”

Roads, higher education, and the other general funds budgets are also in limbo. While the delay will cause only headaches for many state offices, it could cause much bigger issues for schools, which are already facing uncertainty with federal funding cuts.

The Michigan Education Association, the largest teachers’ union in the state, has called for legislators to prioritize education funding as Michigan currently ranks 32nd nationwide in education spending per student.

“We urge House Republican leaders to engage in thoughtful negotiations with their Senate counterparts and the Governor's office to deliver a budget that ensures that every student gets a quality public education, no matter where in Michigan they're from and what their individual education needs are,” said a statement from MEA President & CEO Chandra Madafferi and American Federation for Teachers Michigan President Terrence Martin. “Getting funding right for our students is more critical now than ever.”

It will likely be weeks before any real movement begins on the budget negotiations, as lawmakers are not set to return to session until July 15.