Gov. Gretchen Whitmer, House Speaker Matt Hall (R-Richland Township) and Senate Majority Leader Winnie Brinks (D-Grand Rapids) talked with each other Wednesday in pairs as the leaders started laying the groundwork for a compromise on the K-12 portion of the Fiscal Year (FY) 2026 budget.
The unorthodox meeting schedule kicks off the negotiations on the spending plan with the Governor in Australia for a trade mission. All sides are hopeful that a budget agreement can be reached by a statutory July 1 deadline created after the disastrous 2019 budget negotiations in which the Republican Speaker and Senate Majority Leader sent a non-negotiated budget to Whitmer’s desk and the Governor responded by using the Administrative Board to move money around and then cut massive chunks out of the budget.
On the table are spending plans for the Department of Education; the School Aid Fund, which sends state money to local schools; the Higher Education budget for universities; the community college budget and the spending plan for the Department of Lifelong Education, Advancement and Potential.
Hall: U-M, MSU Have Become ‘Elitist’
In talking about how his higher education budget increases overall funding for state universities by 3.4 percent even though it cuts two universities, Hall said Wednesday that the University of Michigan (U-M) and Michigan State University (MSU) are out of touch and have become elitist. He said that’s a point that Michiganders feel strongly about and House Republicans are acting upon.
Hall said several of the 13 universities that receive around 30% more in state funding under his bill have been very positive about their increases, despite the 65% cut to U-M and the 19% cut to MSU.
“Central Michigan University specifically thanked me. I’m not really a friend to (CMU). I’m a Western Michigan Bronco, so they’re a rival of mine, but they’re praising me. So, it has to be a real good plan to get Central Michigan to praise me,” Hall said.
A handout from the press conference has statements from CMU, Western Michigan University, Wayne State University and Michigan Technological University expressing their support for the higher education budget. They were all issued between June 13 and Wednesday morning.
Under the House’s initial Higher Education budget, the university’s allocations from an increased Michigan Achievement Scholarship was factored into the universities’ state funding total on the House Fiscal Agency’s analysis. Without that allocation factored into the equation, every university would have been cut.
The House ended up changing gears with HB 4580, the Higher Education budget for Fiscal Year 2026. In its bill that passed the full House, all schools received their money through the annual state grant. This made it more clear-cut for reporters using the HFA analysis for their reporting.
“Now you can’t deny that there are increases, because there’s one column, and the one column makes it very clear about the increases,” Hall said. “The press reports that there are cuts. It was never cuts.”
Kelly: 70% there on K-12 Budget
With the House Speaker talking in terms of meeting the July 1 deadline for the K-12 budget, one key negotiator put a finer point on the objective.
“I think it could be close. It may be a week or so after, but I think everybody is on board. We’re starting to talk,” reported House K-12 Appropriations Subcommittee Chair Tim Kelly (R-Saginaw).
The basis for his optimism could stem in part from the prior week’s breakfast sitdown with his Senate Democratic counterpart, Sen. Darrin Camilleri (D-Trenton).
MIRS asked, “Would you say you are 70% towards a deal or less?” Kelly offered, “Yeah. I’d go with that.”
One of the sticky points is the two distinctly different budgets. The House is using a lump-sum approach with state aid to local schools while the Senate is using more categorical where the state puts dollars into specific programs.
Kelly and his Republican friends think the schools should make their own choices.
“If categoricals are not getting us to where we want to be, than let’s start doing something different.” the veteran Saginaw lawmaker asserted.
The free lunch and breakfast offerings would be a good example of these differences.
The Senator fears if schools can opt in or out, it will result in some students not eating, and he worries about the stigma of only disadvantaged children getting free meals.
The representative countered, “If you get people who want to pay for that, and it’s cheaper to do that, you bank the difference.”
After years in the education trenches dating back to the John Engler administration, he concluded the schools are better prepared to make those on-the-ground decisions.
“We trust that you know what you’re doing, and you’ve told us so much, so now use this money with no excuses,” he said.
As they move on, the remaining 30% or so left to be resolved, he added, “I think together we can get something accomplished for the people and students of Michigan.”
Rice Steamed About No CTE Money in House Budget
State Superintendent Michael Rice said Wednesday that using the House Republicans’ block grant approach with the K-12 budget doesn’t work for advancing Career and Technical Education (CTE) programs, which prepare students for high-wage and high-skills careers. Adding the funding for the programs into the per-pupil funding would force CTE and various other programs to compete for the funding as local school districts set their budgets.
“There is no specific money in the fiscal year 2026 House budget to fund, let alone expand, career and technical education even as Michigan has reached record CTE completion and near-record CTE participation and demand exceeds availability of CTE programs,” Rice said. “The lack of funding in the House budget is disappointing and puzzling.”
Gov. Whitmer’s budget recommendation supports the State Board of Education’s resolution for Fiscal Year 2026 by including $125 million to fund the expansion of state-approved CTE programs in local and intermediate school districts with limited and/or inequitable access to CTE. The Senate Budget provides $50 million for this purpose while the House budget doesn’t set aside any money for this cause.
The Governor’s FY 2026 recommendation also includes moderate increases to critical funding for CTE, including a 4.3% increase ($41.6 million) to provide partial reimbursement to school districts and area centers for the additional costs associated with the operation of state-approved CTE programs. It provides a 5% increase ($8.4 million) for CTE early middle college and CTE dual enrollment programs; $20 million for equipment grants; and a 4.7% increase ($5.6 million) to increase the number of students who are college and career ready.
Over the next five years, an additional investment is needed to expand opportunities for students who, because of funding, geography, transportation, and cultural barriers, have not been able to access state-approved career-tech programming, Rice said.
Article courtesy MIRS News for SBAM’s Lansing Watchdog newsletter
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