Article courtesy of MIRS for SBAM’s Lansing Watchdog newsletter
Legislative leaders and the State Budget Office signed off Wednesday night on spending targets for each department in the Fiscal Year 2027 budget, clearing the way for House and Senate appropriations subcommittees to begin negotiating final spending plans.
The agreement marks a significant step in getting the FY 27 budget finished next week and comes after legislative leaders took a couple of days after the announcement of the budget “framework” to determine which departments would feel the brunt of the expected cuts.
As reported earlier this week, the budget includes no tax increases, no Rainy Day Fund withdrawals and spending levels below the current fiscal year. For Senate Appropriations Chair Sarah Anthony (D-Lansing) the focus remains closing the budget shortfall, not funding lawmakers’ special projects.
At this point in the talks, MIRS has learned that much of the work – even at the subcommittee level – is being done by legislative staff racing to finalize budget details by, at the latest, July 3, the Friday before the Fourth of July weekend.
Senate Secretary Dan Oberlin wrote in a Thursday email that he doesn’t foresee a “rush presentation on the budget” that would require his staff to work the July 4th weekend.
State law calls for lawmakers to complete the budget by July 1, but few around the Capitol expect that deadline to be met. Most expect the budget to be finished July 2 or in the early morning hours of July 3, which this year is the state’s observed Independence Day holiday.
One spending category expected to draw considerable attention is legislative directive spending items (LSDIs), often referred to by critics as “pork.”
“We’re definitely going to be working this weekend, for sure,” Anthony said to MIRS. “My first priority is not legislative directive spending items. It’s addressing the shortfall, because that’s the biggest piece that impacts people, like the Medicaid and food implications.”
Earlier this week, MIRS reported that members of the House and Senate requested a combined $4.383 billion for 1,320 special projects they would like to see appear in this year’s budget.
Senators’ proposals tallied $1.72 billion. However, some proposals may not be eligible to be taken up in the Fiscal Year (FY) 2027 budget if legislators send it to the Governor’s desk by the end of July 2.
Last November, legislation was signed into law requiring that LDSI requests become publicly viewable online at least 45 days before deals are passed in both chambers.
If the Senate and House vote on budget deals July 2, legislators will need to have uploaded their LDSI proposals by May 18.
Sen. Paul Wojno (D-Warren)’s $1 million request for the Team Up Academy Foundation, a Warren employment center, was submitted May 28, as well as a $10 million proposal by Wojno to construct a new courthouse.
Senate Majority Floor Leader Sam Singh (D-East Lansing) also submitted on May 21 a $5 million request for Michigan Saves, a loan loss reserve fund that supports residential and commercial energy efficiency projects and renewable energy loans.
Additionally, on May 20, Sen. Sue Shink (D-Dexter) asked for $2 million to restore and reconstruct a veterans park in Ann Arbor that was damaged by a spring tornado this year.
“Everything has to align with the statute, so the parameters that we put in place last year with the statutory change,” Anthony said when asked about the 45-day requirement. “If it doesn’t fall within that window, they would be ineligible.”
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