Honigman Capitol Report

Governor's Office

Governor Stands by MSP Appointment

Earlier this month the Michigan State Police Troopers Association (MSPTA) conducted a "no confidence" vote, where 98.48 percent of nearly 1,200 responding members expressed a lack of confidence in the leadership of Col. James F. Grady II and Lt. Colonel Aimee Brimacombe. Only 18 union members supported the leadership, while 1,167 did not.  The MSPTA and the MSP Command Officers Association (MSPCOA) communicated these results to Grady and Brimacombe, indicating a significant loss of support from essential employees.  Despite this, the Governor's office expressed full confidence in Grady, citing his strong leadership and efforts to improve public safety and trooper welfare.  However, Rep. Mike Mueller criticized the Governor's statement, calling it misleading and questioning Grady's promotion of Brimacombe shortly after her disciplinary period ended. Mueller stated that “police officers would end up on a Brady list for the statement that the governor's office pushed out.” A Brady list is a record that law enforcement maintains of law enforcement officers with credibility issues. Senate Minority Leader Aric Nesbitt described the troopers' vote as a severe indictment of the current administration, calling for Grady's resignation or removal.  Grady and Brimacombe have agreed to testify before the House Oversight Committee at a future date.

Committee News

Education and MiLEAP Budget Bills Clear House

The Michigan House Republican education budget proposal for FY 2026 cleared the House last week. It includes a record $12,000 per student for public schools, achieved by eliminating approximately 100 specific earmarks.  The budget consolidates various funding categories, allowing school districts the discretion to fund programs like free lunch, transportation, and English-as-a-second language if desired. The proposal increases the per-pupil foundation allowance by $1,975, supplemented by $40.8 million from the General Fund, with equivalent allocations for non-public schools for mental health, school safety, and other programs, maintains funding for "at-risk" students, increases funding for special education, and creates a $286.5 million fund for infrastructure. It also emphasizes career and technical education (CTE), skilled trades training, and phonics. The proposal includes a controversial provision that reduces a school's per-pupil allowance by 20% if it engages in activities such as using a curriculum that includes race or gender stereotyping or allowing transgender girls to participate in girls' sports. The budget proposal has been criticized for its approach to funding, particularly the elimination of targeted programs designed to address the needs of vulnerable students, which some argue undermines equity in education. In addition, the Department of Lifelong Education, Advancement and Potential (MiLEAP) faces significant cuts, with nearly $100 million in new spending proposed by the Governor being removed. The number of full-time employees in the department is reduced by 62. Overall, the Michigan House Republican education budget proposal for FY 2026 presents a significant shift in funding priorities, emphasizing a streamlined approach while sparking debate over its impact on equity and specific educational programs.

Election News

Rinke Hints at Possible Governor Run

Kevin Rinke, a former GOP gubernatorial candidate, appeared on Off the Record Studio C, where he left the impression of being a potential candidate for the 2026 governor race. Rinke criticized perceived Republican frontrunner John James, accusing him of making a tactical mistake by abandoning his congressional role shortly after being elected to pursue a gubernatorial run. He further critiqued James's close association with Donald Trump, highlighting that James's voting record aligned with Trump or conservative values only 58% of the time. Rinke questioned the depth of James's name recognition, suggesting it does not necessarily translate to public support and made statements resembling a campaign speech, suggesting he could bring real change and a leaner, more efficient government to Michigan. He expressed confidence in winning the Republican nomination without Trump's endorsement, acknowledging that Trump's previous endorsement of Tudor Dixon significantly influenced the 2022 GOP primary. Rinke proposed eliminating the state income tax to stimulate economic growth, citing examples from other states where such measures led to increased revenue and improved economies. He mentioned the possibility of adjusting other tax segments, including potentially raising the state sales tax, to compensate for the elimination of the income tax. Despite his interest in running for governor, Rinke stated that he is still undecided, with a 50-50 chance of entering the race.

On Point

Client Alert: From Airboss to Kamax: Michigan Court of Appeals Reaffirms Enforceability of Flexible Quantity Terms in Supply Contracts

Looking Ahead

The House and Senate may have a shortened summer with no budget passed to fund priorities and departments around the state. Typically July thorough early September is reserved for in district work periods for legislators. The budget processing starting later than anytime in recent years is causing this period to be jeopardized. Members and staff working close to the budget process expect members to negotiate the education budgets during July with a possible vote by the end of the month. This is condensed timeline especially with a break for both chambers built into the schedule for the first week of July.