Updates About Legislature

This week, the Michigan State Legislature voted on and approved a state budget for Fiscal Year 2024 which begins on October 1, 2023. This budget was months in the making with negotiations culminating between the Governor’s office and Senate and House leadership over the past several weeks. This, coupled with the May Consensus Revenue Estimating Conference’s assessment that state revenues are trending down, meant many of the budget priorities of the House and Senate were negotiated down in total spending, thus bringing the budget for the Fiscal Year 2024 to $81.66 billion.

Both the omnibus and school aid budget received bi-partisan support as increases were made in education, revenue sharing, and behavioral health needs, as well as funding set aside for the state’s rainy day fund and school aid savings account. More than $800 million was spent on projects throughout Michigan that include grant funding for healthcare projects, housing, public infrastructure, and workforce development. To ensure transparency over these projects, the legislature included new boilerplate language requiring state departments to post on a website the requirements of the grants and the grant legislative sponsor.

$91.1 million was appropriated for healthcare grants, $40 million for housing grants, and $234 million for public infrastructure grants. $176 million was allocated for public safety grants and $35 million for workforce development grants.

The Michigan Department of Health and Human Services had the largest departmental budget, setting a record at $33.4 billion. The department’s spending increases are attributed to rising Medicaid caseloads and actuarial soundness funding for pre-paid inpatient health plans to administer Medicaid coverage. Behavioral health programs received a large funding increase in the FY 24 budget with nearly $66 million of the state’s general fund being allocated to help with the mental health crisis.

Both the House and Senate wrapped up voting before 11 p.m. by adopting Senate Concurrent Resolution 9, which prescribes the legislative agenda for the summer as members will begin their in-district period. Per SCR 9, we can expect the House and Senate to return to Lansing July 18 – 20 and August 22 – 24. The legislature will return to a more normal legislative schedule beginning on September 5.

All budget materials for Fiscal Year 2024 can be found here.

New members have officially been sworn into the Michigan State House of Representatives following the May 3 Special Election in House Districts 15, 36, 43, and 74. New members respectively include Representatives Jeffrey Pepper (D-Dearborn), Terence Mekoski (R-Shelby Township), Mike Harris (R-Clarkston), and Carol Glanville (D-Walker). This leaves the House Republicans with a majority of 57-53.

Committee shuffling ensued during session on May 10. Rep. Pepper was added to the following committees: Families, Children, Seniors, replacing Rep. Darrin Camilleri (D-Brownstown Township), Agriculture replacing Rep. Sarah Cambensy (D-Marquette), and Joint Committee on Administrative Rules (JCAR), replacing Rep. Kyra Harris Bolden (D-Southfield).

Rep. Glanville will sit on the Insurance Committee, replacing Rep. Sarah Anthony (D-Lansing), and on the Commerce and Tourism Committee, replacing Rep. Mari Manoogian (D-Birmingham).

Rep. Mekoski was added to the House Judiciary, Local Government, and Regulatory Reform committees while Rep. Harris was added to Energy, Insurance, and Transportation Committees. Both new members replaced seats formerly held by Rep. Ryan Berman (R-Commerce Township) after he requested to be removed from his assignments.

Rep. Matt Hall (R-Comstock Township) was removed from the committee on Regulatory Reform and Rep. Beau LaFave (R-Iron Mountain) was appointed vice-chair of the House Insurance Committee, replacing Rep. Berman.

On Tuesday, May 10, the Michigan State House and Senate passed House Joint Resolution (HJR) R by the required 2/3 majority vote in the affirmative in both chambers.

HJR R would propose an amendment to the state Constitution to change the term limits of state Representatives and Senators to 12 consecutive years of service in the Legislature, replacing the current term limits of 14 years – three two-year terms in the House and two four-year terms in the Senate.

Additional language in the resolution would require constitutional officers and legislators to disclose assets, liabilities, income, positions held, future employment agreements, gifts, travel reimbursements, and other payments. Language would also require the governor, lieutenant governor, secretary of state, and attorney general to submit annual financial disclosures including all of the items above and additionally include any payments made by a lobbyist or lobbyist agent to a charity in lieu of honoraria. All items must be reported to the Department of State and be made available online.

If legislation implementing the financial disclosure section is not enacted by December 31, 2023, residents may initiate legal action against the legislature and governor in the Michigan Supreme Court.

The impetus for the legislative action was a ballot proposal effort led by several stakeholders, including the former heads of the Michigan AFL-CIO and Michigan Chamber of Commerce. To change the Michigan Constitution, a ballot proposal must receive 425,000 signatures or supermajority approval in both the House and the Senate to send the proposal to the ballot. While the language approved by the legislature today is considered weaker than the initial ballot proposal language, some supporters of the ballot initiative ultimately appeared to indicate their support for the action.

This initiative will now head to the ballot in the November General Election and if passed by the majority of Michigan voters, will go into effect starting April 15, 2024.