Initial proposals pass early but budget battle looms in Michigan
The Michigan House and Senate have passed their individual budget bills ahead of the May 1 deadline, but now face the challenge of agreeing on a unified state budget for 2027 that Democratic Gov. Gretchen Whitmer will sign before October 1. The budgets differ significantly, particularly on revenue, with Whitmer's proposal including over $800 million in tax increases, which are not reflected in the House budget and largely omitted in the Senate budget.
Michigan's House and Senate have passed their 2027 budget bills before May 1, but now must reconcile their differences. The Senate budget totals $88.1 billion, matching Gov. Gretchen Whitmer's proposal, while the House budget is $75.8 billion, or $84.8 billion including a $9 billion contingency fund for health care. The budgets diverge on revenue, with Whitmer's plan including over $800 million in tax increases, which are not in the House budget and mostly omitted in the Senate budget. The May 15 revenue estimating conference will provide updated tax revenue projections to inform the budget negotiations. Lawmakers have until October 1 to finalize the budget, a deadline they slightly missed last year.
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