Updates About Lower Court Rulings

A settlement between Governor Whitmer and House Republicans has been reached regarding the over $370 million in work project funds canceled by House Republicans last year. The settlement, which was resolved in the Michigan Court of Claims, removed the designated funds for all work projects and instead put them mostly back into the State’s General Fund.

The litigation started when Attorney General Dana Nessel issued an opinion, at the request of Senate Democrats, that the original funding blockage was unconstitutional. After this opinion, Governor Whitmer directed the departments to spend the money as appropriated, causing House Republicans to sue in order to block the spending.

The ruling also upheld the rule that allowed a single appropriations committee to act alone in canceling the work project. However, Senate Democrats are interested in working on legislation that would ban this authority.

Both Republican House Speaker Matt Hall (Richland) and Democratic Senate Appropriations Chair Sarah Anthony (Lansing) claimed victory in their statements on the court’s outcome. Hall pointed to the $370.8 million returned to the General Fund as restoring budget flexibility, while Anthony emphasized that only $370 million of the $645 million total they had argued was blocked.

Read past newsletter articles on the work project funding developments here:

Unexpected House Action Shifts Spotlight to Work Project Funding

AG Issues Formal Opinion on Legality of Work Projects, Judge Issues Preliminary Injunction

Michigan Attorney General Dana Nessel has decided not to pursue an appeal after the 54-A District Court in Lansing dismissed the criminal charges brought against a group of 15 defendants who conspired to award Michigan’s 2020 electoral votes to Donald Trump instead of Joe Biden. The group signed fake certificate of votes, and sent them to the United States Senate with the intention of the false votes being accepted as the official electoral votes for the State of Michigan.

In her official statement, Nessel cited roadblocks such as time required and the difficulty with which the courts have dealt with election law violations that would hinder the office of the attorney general from a successful prosecution.

Shortly after the new year, Michigan Attorney General Dana Nessel issued her formal opinion that the mechanism used by the Michigan House Appropriations Committee to eliminate over $644 million in work project funding is unconstitutional. The disapproval mechanism used, MCL.18.1451a(3), can be found in the Management and Budget Act and allows for previously approved funding from the last fiscal year to continue to be used for its direct purpose in the new fiscal year. The funds are approved by the State Budget Director and are known as work projects. According to the law, either the Senate or House Appropriations Committee can then decide to approve or disapprove the work project funding. Historically in Michigan this funding has typically been approved by both chambers.

In her opinion, AG Nessel deemed MCL.18.1451a(3) unconstitutional. She argues that the mechanism violates Separation of Powers because it allows a single legislative committee to effectively have authority over the executive’s law implementation powers. Continuing her argument, she laid out that since the action was not approved by the Senate, and subsequently by the Governor, it violates the Bicameralism and Presentment requirements. Lastly, Nessel concluded that the veto disapproval mechanism is separate from the rest of the statute, so the remaining portions, such as the State Budget Director’s authority, can remain.

Two weeks after the Attorney General’s formal opinion was published, Court of Claims Judge Michael Gadola issued a preliminary injunction that preserves the status quo of the law. This injunction temporarily prohibits state departments from spending any remaining work project funds until the courts have made a final decision on the constitutionality of the House Republican Appropriations Committee’s actions.