Honigman Capitol Report

Whitmer meets with Leaders on K-12 Budget

Governor Gretchen Whitmer, House Speaker Matt Hall (Republican), and Senate Majority Leader Winnie Brinks (Democrat) met in a closed-door session last week to discuss the Fiscal Year 2026 K-12 budget and a potential road funding deal, but no agreement was reached. The Senate expressed a desire to finalize the entire FY '26 budget before July 1, although this seems unlikely due to the House's limited progress on General Fund-dependent department budgets. Senate leadership is seeking clarity on the House Republicans' budget plans, particularly regarding income tax cuts and $3 billion in road funding without tax increases. Senate Democrats are concerned about the House Republicans' intention to delay spending new School Aid Fund revenue, questioning whether it is to support future road deals or tax cuts.  House Republicans are interested in the Senate Democrats' long-term road funding plans. The Governor's office prefers a budget deal that includes a long-term road funding component. The House and Senate were at a stalemate, with each waiting for the other to adjourn first. The Senate adjusted its calendar to hold sessions on July 1 and 2, aligning with the House's schedule. The House prepared a second K-12 budget bill as a contingency but did not use it. The House adjourned after eight hours without progress on education budgets, but Hall remains optimistic about funding K-12 by July 1. Hall expressed commitment to working through the weekend to achieve agreements on roads and education by July 1. He acknowledged the July 1 deadline as aspirational but emphasized its importance for completing the school budget. Negotiations have not yet reached the stage of using the conference committee process or adding substitutes to bills.  Hall believes resolving the K-12 and roads plans will facilitate the rest of the budget. Hall, Brinks, and Whitmer agree on the importance of continuing negotiations.  Major disagreements include the per-pupil allowance in the K-12 budget and funding roads without raising taxes. Concerns arose about the Senate's session schedule, but these were alleviated when additional session days were added. The Senate Fiscal Agency projected a $553 million lower General Fund year-end balance, while the School Aid Fund revenue is expected to be $240 million higher. A July 1 deadline for finalizing the budget was established in late 2019 to ensure completion over the summer.

Committee News

Senate Dems Adopt Report on Medicaid

A report adopted by two Democratic-led Senate committees last week projects that the U.S. House Republicans' proposed Medicaid reforms will create a $2 billion deficit in the state budget and result in over 500,000 beneficiaries losing coverage due to new paperwork or eligibility requirements. The Senate Health Policy Committee and the Senate Appropriations Subcommittee overseeing Michigan's Department of Health and Human Services adopted the report, with the latter doing so along partisan lines. The report aims to highlight the potential negative impacts of federal-level Medicaid restrictions rather than auditing state Medicaid spending. It notes that Medicaid patients constitute 22 percent of hospital patient volume in Michigan, and since the state expanded Medicaid eligibility in 2014, uncompensated hospital care has decreased by over 50 percent.  Opponents of the U.S. House's Medicaid plans criticize new verification and eligibility requirements, such as work or volunteer obligations for certain recipients and more frequent eligibility re-evaluations. The report estimates that implementing these changes in Michigan would cost $155 million and disrupt care continuity due to paperwork issues. Medicaid covers significant portions of the population, including 37 percent of births and 65 percent of nursing home residents. Republican Sen. Jim Runestad criticized the report as partisan and noted past issues with improper Medicaid payments. He supports the U.S. House plan's work requirements, arguing they ensure benefits for the truly needy. Sen. Michael Webber expressed frustration over the committee's focus on issues beyond state control, while bipartisan bills that could aid the Medicaid population remain unaddressed.

Election News

Confidence in Elections Up

Results from a new polling conducted by the Democracy Defense Project found that a majority of Michigan voters, including Republicans, Democrats, and independents, are satisfied with the state's election laws, with 76% believing the November 2024 election was fair and secure. The survey, conducted by the Glengariff Group from June 1-6, involved 800 voters and revealed that 88% of voters trust their local elections, an increase from 78% in October 2024. The results were announced at a press conference in Grand Rapids by former Michigan political figures, including former Governors John Engler and Jim Blanchard.  John Cherry, a former Lt. Governor, emphasized the integrity of Michigan's election process despite potential misinformation. The poll was a follow-up to one conducted in October 2024, before a contentious presidential election between Kamala Harris and Donald Trump, which resulted in Trump's victory and Republican control of Congress. Additional survey findings include that 82.1% of respondents believe voters should have the final say in setting election laws, while 56.9% are concerned about non-citizens voting. Furthermore, 54% of Republicans believe non-citizens are voting, compared to 26% of independents and 9% of Democrats. The survey also found that 65.6% support a constitutional amendment requiring proof of citizenship for voter registration, 53.5% support same-day voter registration, and 57.4% oppose purging inactive voters from rolls.

On Point

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