MI Lawmakers Reach Deal On New Budget, Avoiding Shutdown Days Before Deadline

Michigan lawmakers say they have reached a deal on the state budget, avoiding a shutdown.

Lawmakers on Thursday agreed to pass the state budget and the school aid budget just days before the end of the fiscal year.

Lawmakers said the new deal will lower costs for Michiganders, reduce waste, increase government efficiency and help residents thrive.

"Today’s agreement in the legislature puts us on a path to lower costs, fix the damn roads, and pass a balanced, bipartisan budget by October 1," Michigan Gov. Gretchen Whitmer said. "In Michigan, we've proven again and again that we can work together to get things done by staying focused on the kitchen-table issues that make a real difference in people’s lives."

While the budget's details were limited, lawmakers did say they approved $2 billion for future road funding. They also agreed to a new 24 percent marijuana tax, which could generate roughly $420 million and help pay for the road repairs.

The fight over the budget was largely due to funding for K-12 schools. Republicans agreed to increase overall per-pupil funding for schools, but wanted to eliminate certain categories, such as free school lunches and student transportation. Democrats said those categories are essential.

Republicans said lifting those requirements would give local districts more flexibility, while Democrats said it would force schools to make tough decisions on what to fund.

The new per-pupil funding for schools in Thursday's agreement was unclear.

Senate Majority Leader Winnie Brinks, D-Grand Rapids, said the budget framework "reflects the priorities of Michiganders from every region, and while no budget will be a perfect product, I am confident that the final result we vote on next week will have features that benefit every resident."

Lawmakers have until Oct. 1 to hammer out the final details and formally pass the budget. If not, then it would become the state's first government shutdown since 2009.

"Now, we've given ourselves a few days to go out and figure out all the final details and try to get this thing up for a vote Tuesday night, so we can keep the government open," Hall said.