Updates About Budget

Ryan Hunt, CEO of the Michigan Works! Association, provided testimony in the Senate Appropriations Subcommittee on LEO/MEDC this week on workforce impacts related to proposed SNAP and Medicaid work requirements. Hunt’s testimony included a request for $25 million to support implementation, noting that local offices are already experiencing increased demand and may require additional staffing to manage higher caseloads and reduce administrative errors.

Hunt also urged continued funding for the Going PRO Talent Fund at $31.8 million, so that workers who go through the program can continue to receive training and see wage increases.

Following the recently announced executive recommendations, House Republican Appropriation Subcommittee chairs were given budget targets for Fiscal Year 2027. Although House Appropriations Committee Chairwoman Ann Bollin (R-Brighton) did not outline specific numbers, she did share that the highest budget threshold goal is lower than what we saw in the previous budget. House Republicans say they plan to address the projected $800 million January CREC shortfall without raising taxes. Representative Bollin said GOP priorities for the upcoming budget include strengthening Michigan’s businesses and improving the education system, while cutting spending where possible. Republicans also signaled they will push back against any proposals that increase taxes.

Prior to this report, Republican House Speaker Matt Hall (Richland) announced a new 6% sales tax proposal on select services that is projected to garner $4.73 billion for the state. His proposal applies to certain services usually popular with tourists and wealthier residents. Among the services included in the tax proposal are country club memberships, travel agencies, newspaper publishing, performing arts, political advertising, environmental consulting, and recreational activities such as skiing and golf. Speaker Hall stated that his proposal is not aimed at working class families and instead targets out of state visitors.

The proposal is intended to offset Hall’s proposed property tax cuts that currently generate about $5 billion in revenue. Overall, his tax plan would result in approximately a $270 million net tax cut.

In 2024, two bills passed by the Michigan Legislature requiring schools to adopt cardiac emergency response plans were signed into law (Publict Acts 36 and 37). However, the bills were contingent on the Legislature appropriating sufficient funding to implement the response plans. As of now, the current $321 million school safety budget lacks dedicated funding for the cardiac response plans. A Senate proposal to allocate $25 million for safety measures, including AED devices, was also not included in the final FY 25-26 budget.

In the absence of a sufficient appropriation, the law cannot be enforced and school districts cannot be not required to comply. With approximately 5,000 public and nonpublic schools statewide, adoption varies based on local capacity and resources. Currently, just under 1,000 schools hold the state’s MI HEARTSafe designation, a title earned by schools with cardiac response plans, annual cardiac emergency drills, and enough employees trained to respond to a cardiac emergency.

Governor Whitmer’s $88 billion budget proposed in her recent executive recommendations for the upcoming fiscal year also omitted specified funding for cardiac emergency response plans.