Updates About Legislation

In the early hours of July 1, the Michigan State Legislature passed House Bill 5783, the general omnibus appropriations bill for Fiscal Year 2023. In the general omnibus, the state appropriated $58.4 billion, with $33.3 billion of that being the Health and Human Services budget. The School Aid Fund budget, Senate Bill 845, allocated $22.1 billion, bringing the state’s total appropriations to a historic $76 billion. The Executive Office and Legislative leaders celebrated the passing of the budget before the statutory July 1 deadline.

While an over $2 billion supplemental spending measure for FY 21-22 accompanied the budget, approximately $7 billion remains on the table for future spending, with $3.8 billion in General Fund and $3.3 billion in School Aid Fund. Further discussions around tax cuts and other supplemental appropriations measures are expected in the late summer/early fall.

All FY 23 appropriations materials can be found here.

On Friday, June 10, Governor Whitmer signed House Bill 6012, legislation to, among other things, provide supplemental appropriations to Oxford High School following the devastating shooting that occurred on November 30, 2021.

Sponsored by Representative Pamela Hornberger (R-Chesterfield), a former public-school teacher, the funding aims to implement risk assessments to identify campus safety and determine where further investments are needed as well as ensure emergency plans and protocols are effective. A total of $14 million will be awarded to all schools for $2000 grants to complete comprehensive safety and security assessments. The bill also provides direct funding to Oxford Community Schools to hire mental health professionals, enhance security, and other student supports.

On May 26, the Michigan State Senate passed a four-bill package, spearheaded by Republicans, to suspend the gas tax and 6 percent sales tax on motor fuel from June 15, 2022, until September 15, 2022.

Under the bill that would suspend the state’s gasoline tax, a substitute was adopted that would offset the revenue losses from this tax cut for local governments, providing a $300 million appropriation from the General Fund.

Senate Bills 972, 973, and 974, passed the chamber with strong bipartisan support by a vote of 36-1. The gasoline tax bill, which provided the $300 million appropriation, passed 30-7.

Previously, Governor Gretchen Whitmer vetoed a piece of gas tax suspension legislation, but with respect to this new package of bills, Whitmer was “encouraged” and her spokespeople have indicated the administration is working with the legislature to find common ground on the issue.