(Ed. Note: This story was originally published by Bridge Michigan, a nonprofit and nonpartisan news organization. Visit the newsroom online: bridgemi.com.)
By Jordyn Hermani
Bridge Michigan
LANSING — Michigan’s new state budget is larger than it appears, according to a new analysis that claims the spending plan signed by Gov. Gretchen Whitmer is also out of balance by at least $600 million.
The nonpartisan Citizens Research Council of Michigan contends state lawmakers shifted large sums of money “with the apparent intent of making this year’s budget appear smaller than last year’s,” making it challenging to assess the true size.
But the budget likely authorizes $86.4 billion in spending, not the $75.2 billion it adds up to “on paper.” That’s also larger than the $84 billion that Bridge Michigan initially reported.
Much of that difference is attributable to about $9 billion in Medicaid provider taxes, which the state collects but was shifted from a line-item to “boilerplate” language in the state budget the past two years.
The new budget also anticipates getting $418 million in federal school funding but would still allow the state to spend more than $2 billion, should it receive similar amounts of funding as last year, according to the report.
But beyond that, the budget also appears to overspend expected revenues by between $600 million and $900 million, said Bob Schneider, a senior research associate for the council who previously worked as associate director for the Michigan House Fiscal Agency.
And that would be a violation of the Michigan Constitution, which requires a balanced budget, so officials must take additional steps to balance it, Schneider told reporters July 22.
“Our assumption is, there’s some kind of framework for addressing this (shortfall) in the budget … but the key is, we don’t know yet,” he said.
And that seems to be the case, according to the Whitmer administration.
A State Budget Office spokesperson told Bridge that officials have agreed to use uncommitted funding from the Strategic Outreach and Attraction Reserve (SOAR) fund, along with a COVID-19 contingency fund, to smooth out the budget.
“Any implications that the budget is not balanced are simply false,” said the spokesperson, Cole Pachucki. He added: “Michigan law requires a balanced budget, and Gov. Whitmer has signed a balanced budget every year of this administration — including this one.”
—————
Say goodbye to SOAR
That “framework” deal to balance the budget involves lapsing $449,200,199 from the SOAR Fund and $97,544,038 in COVID contingency funding from the Michigan State Police, Pachucki said. That’s a total of $546 million.
“These lapses are not reflected in the enacted budget documents,” he added. “They’re accounting treatments applied administratively, not itemized appropriations.”
House Speaker Matt Hall, R-Richland Township, seemed to confirm as much on social media.
As part of an agreement to pass the state budget, Hall said the state was “finally defunding and draining the governor’s ‘SOAR’ fund … We’re also taking money back from the COVID-19 slush fund that shouldn’t exist.”
The move is expected to come by way of an administrative order.
Schneider, who in his call with reporters identified lapsing SOAR as a way to address the shortfall, acknowledged that moving money from the fund “could be sufficient when added to other strategies like redirected State Fiscal Recovery Fund COVID dollars to close the gap.”
“But the budget doesn’t provide any direction on that,” he added. “We hope policymakers will release additional financial details to show the assumptions and strategies being employed to ensure the budget is fully balanced.”
—————
Size matters
Michigan lawmakers passed a compromise budget to fund the state government and schools for the next fiscal year on July 3 after a nearly 24-hour session.
Republicans have championed it as a plan that reduces total state spending.
“We made better use of the money state government already has so we could pass a balanced budget smaller than last year and give taxpayers better value for their dollars,” Hall said July 22 on social media.
But disagreements on the total value of the spending plan emerged almost immediately after lawmakers approved it, as media outlets like Bridge reported that lawmakers had again shifted more than $9 billion in Medicaid provider taxes. CRC identified additional shifts.
Budgets aren’t always a perfect measure of the true size of government, but the large shifts in the new budget “create extra problems for anyone interested in monitoring the size of state government spending,” according to the CRC report.
The group previously used historical budget totals to document the massive COVID-era spike in state spending, for instance, which is “important information for both the public and policymakers to understand.”
That kind of comparison would be more difficult now.
“We encourage the new governor and legislature seated in 2027 to stop this practice in future budgets,” the authors wrote.
By Jordyn Hermani
Bridge Michigan
LANSING — Michigan’s new state budget is larger than it appears, according to a new analysis that claims the spending plan signed by Gov. Gretchen Whitmer is also out of balance by at least $600 million.
The nonpartisan Citizens Research Council of Michigan contends state lawmakers shifted large sums of money “with the apparent intent of making this year’s budget appear smaller than last year’s,” making it challenging to assess the true size.
But the budget likely authorizes $86.4 billion in spending, not the $75.2 billion it adds up to “on paper.” That’s also larger than the $84 billion that Bridge Michigan initially reported.
Much of that difference is attributable to about $9 billion in Medicaid provider taxes, which the state collects but was shifted from a line-item to “boilerplate” language in the state budget the past two years.
The new budget also anticipates getting $418 million in federal school funding but would still allow the state to spend more than $2 billion, should it receive similar amounts of funding as last year, according to the report.
But beyond that, the budget also appears to overspend expected revenues by between $600 million and $900 million, said Bob Schneider, a senior research associate for the council who previously worked as associate director for the Michigan House Fiscal Agency.
And that would be a violation of the Michigan Constitution, which requires a balanced budget, so officials must take additional steps to balance it, Schneider told reporters July 22.
“Our assumption is, there’s some kind of framework for addressing this (shortfall) in the budget … but the key is, we don’t know yet,” he said.
And that seems to be the case, according to the Whitmer administration.
A State Budget Office spokesperson told Bridge that officials have agreed to use uncommitted funding from the Strategic Outreach and Attraction Reserve (SOAR) fund, along with a COVID-19 contingency fund, to smooth out the budget.
“Any implications that the budget is not balanced are simply false,” said the spokesperson, Cole Pachucki. He added: “Michigan law requires a balanced budget, and Gov. Whitmer has signed a balanced budget every year of this administration — including this one.”
—————
Say goodbye to SOAR
That “framework” deal to balance the budget involves lapsing $449,200,199 from the SOAR Fund and $97,544,038 in COVID contingency funding from the Michigan State Police, Pachucki said. That’s a total of $546 million.
“These lapses are not reflected in the enacted budget documents,” he added. “They’re accounting treatments applied administratively, not itemized appropriations.”
House Speaker Matt Hall, R-Richland Township, seemed to confirm as much on social media.
As part of an agreement to pass the state budget, Hall said the state was “finally defunding and draining the governor’s ‘SOAR’ fund … We’re also taking money back from the COVID-19 slush fund that shouldn’t exist.”
The move is expected to come by way of an administrative order.
Schneider, who in his call with reporters identified lapsing SOAR as a way to address the shortfall, acknowledged that moving money from the fund “could be sufficient when added to other strategies like redirected State Fiscal Recovery Fund COVID dollars to close the gap.”
“But the budget doesn’t provide any direction on that,” he added. “We hope policymakers will release additional financial details to show the assumptions and strategies being employed to ensure the budget is fully balanced.”
—————
Size matters
Michigan lawmakers passed a compromise budget to fund the state government and schools for the next fiscal year on July 3 after a nearly 24-hour session.
Republicans have championed it as a plan that reduces total state spending.
“We made better use of the money state government already has so we could pass a balanced budget smaller than last year and give taxpayers better value for their dollars,” Hall said July 22 on social media.
But disagreements on the total value of the spending plan emerged almost immediately after lawmakers approved it, as media outlets like Bridge reported that lawmakers had again shifted more than $9 billion in Medicaid provider taxes. CRC identified additional shifts.
Budgets aren’t always a perfect measure of the true size of government, but the large shifts in the new budget “create extra problems for anyone interested in monitoring the size of state government spending,” according to the CRC report.
The group previously used historical budget totals to document the massive COVID-era spike in state spending, for instance, which is “important information for both the public and policymakers to understand.”
That kind of comparison would be more difficult now.
“We encourage the new governor and legislature seated in 2027 to stop this practice in future budgets,” the authors wrote.
Whitmer Signs Bills Expanding
Brownfield Program
Gov. Gretchen Whitmer has signed three bipartisan bills to expand local abatement and transformational brownfield programs, allowing more businesses and communities to rehabilitate and redevelop blighted sites.
The bills, signed into law July 22, extend development opportunities across Michigan to help Michiganders build thriving communities and deliver on the governor’s promises made in her 2026 State of the State address to expand housing opportunity across Michigan.
“Together, we’re making communities across Michigan even better places to live, work, and invest,” Whitmer said. “I’m proud to sign these bipartisan bills that will expand our ability to transform abandoned or blighted sites into affordable homes and thriving commercial spaces, all while creating new, good-paying jobs and boosting our economy.
These renewed spaces will attract new investments that keep our state competitive.”
Senate Bill 723, sponsored by state Sen. Sarah Anthony. D-Lansing, expands the transformational brownfield program, increases transparency and reporting requirements, and requires approved projects to include annual milestones. The bill also emphasizes affordable housing projects in residential developments while streamlining the entire redevelopment process.
Senate Bills 721 and 722, sponsored by state Sen. Jeremy Moss, D-Southfield, extend the sunsets on the Commercial Redevelopment and Commercial Rehabilitation acts to allow both important programs to continue to operate. Both bills incentivize the refurbishing and development of commercial properties at local discretion.
“Maintaining and growing Michigan’s economic development toolbox is critically important for our state to continue competing for jobs, investment, and talent,” former Lakeshore Advantage President Jennifer Owens said. “The signing of the transformational brownfield bill package reinforces Michigan’s commitment to revitalizing communities and advancing catalytic redevelopment.”
The bills, signed into law July 22, extend development opportunities across Michigan to help Michiganders build thriving communities and deliver on the governor’s promises made in her 2026 State of the State address to expand housing opportunity across Michigan.
“Together, we’re making communities across Michigan even better places to live, work, and invest,” Whitmer said. “I’m proud to sign these bipartisan bills that will expand our ability to transform abandoned or blighted sites into affordable homes and thriving commercial spaces, all while creating new, good-paying jobs and boosting our economy.
These renewed spaces will attract new investments that keep our state competitive.”
Senate Bill 723, sponsored by state Sen. Sarah Anthony. D-Lansing, expands the transformational brownfield program, increases transparency and reporting requirements, and requires approved projects to include annual milestones. The bill also emphasizes affordable housing projects in residential developments while streamlining the entire redevelopment process.
Senate Bills 721 and 722, sponsored by state Sen. Jeremy Moss, D-Southfield, extend the sunsets on the Commercial Redevelopment and Commercial Rehabilitation acts to allow both important programs to continue to operate. Both bills incentivize the refurbishing and development of commercial properties at local discretion.
“Maintaining and growing Michigan’s economic development toolbox is critically important for our state to continue competing for jobs, investment, and talent,” former Lakeshore Advantage President Jennifer Owens said. “The signing of the transformational brownfield bill package reinforces Michigan’s commitment to revitalizing communities and advancing catalytic redevelopment.”
Huizenga Measures Approved
in House Legislation
The U.S. House of Representatives has approved H.R. 6955, the Main Street Capital Access Act, and sent that legislation on to the Senate.
The legislation, which passed on a vote of 270-155 on July 21, is designed to strengthen community banks, expand access to credit, and end debanking.
The bipartisan bill includes two measures authored by U.S. Rep. Bill Huizenga, R-Holland Twp., that strengthen oversight and promote greater competition within the banking system. Huizenga is vice chairman of the House Financial Services Committee.
The two bills authored by Huizenga were the FDIC Board Accountability Act that strengthens governance and accountability at the Federal Deposit Insurance Corporation, as well as the Enhancing Bank Resolution Participation Act, which broadens participation in failed-bank resolutions to promote competition, protect depositors, and reduce concentration within the banking system.
The legislation, which passed on a vote of 270-155 on July 21, is designed to strengthen community banks, expand access to credit, and end debanking.
The bipartisan bill includes two measures authored by U.S. Rep. Bill Huizenga, R-Holland Twp., that strengthen oversight and promote greater competition within the banking system. Huizenga is vice chairman of the House Financial Services Committee.
The two bills authored by Huizenga were the FDIC Board Accountability Act that strengthens governance and accountability at the Federal Deposit Insurance Corporation, as well as the Enhancing Bank Resolution Participation Act, which broadens participation in failed-bank resolutions to promote competition, protect depositors, and reduce concentration within the banking system.
“Washington should not be making life more expensive for Americans with needless red tape,” Huizenga said in a news release. “Less competition means fewer financing options, higher borrowing costs, and less investment on Main Street. By cutting through the red tape this bipartisan bill reduces costs and helps community lenders make life more affordable for American families.
“Lastly, I am glad this legislation includes my provisions to increase accountability and reduce concentration across our financial system.”
Access to affordable credit is critical for families buying a home, farmers investing in their operations, entrepreneurs starting a business, and employers creating jobs. The Main Street Capital Access Act removes unnecessary regulatory burdens on community banks, encourages the formation of new community banks, and allows local lenders to devote more resources to making loans.
Supreme Court Justices Visit The Henry Ford,
Reflect on America’s Founding Ideals
Justices of the Michigan Supreme Court visited The Henry Ford museum in Dearborn on July 21 as part of the nationwide America 250 commemoration, touring the Freedom Plane National Tour exhibition and the newly-restored Jackson Home to reflect on the enduring principles of constitutional democracy, the rule of law, and the continuing pursuit of civil rights.
The visit connected two defining chapters of American history. The Freedom Plane exhibition features some of the nation’s most significant founding documents, while the Jackson Home — recently relocated and restored at Greenfield Village — served as a meeting place where Dr. Martin Luther King, Jr., and other civil rights leaders planned the Selma-to-Montgomery marches and advanced efforts that helped lead to the passage of the Voting Rights Act of 1965.
“As our nation commemorates its 250th anniversary, we celebrate not only America’s founding, but also the generations of people who have worked to ensure that the promises of liberty, equality, and justice are extended to all,” Chief Justice Megan K. Cavanagh said. “The founding documents remind us that the rule of law remains just as essential today as it was 250 years ago. Courts serve as the bridge between our nation’s founding principles and their application today, ensuring that constitutional rights remain meaningful for every person.”
Throughout the visit, the justices reflected on how the nation’s founding ideals continue to shape the work of the judiciary.
For 250 years, courts have played a vital role in protecting the rights and liberties of the people by interpreting the Constitution and ensuring equal justice under the law. Visiting both the Freedom Plane exhibition and the Jackson Home offered a broader perspective on the American story — one that recognizes both the nation’s founding principles and the generations of Americans who worked to expand those ideals to include those who were originally excluded.
The visit also supports the Michigan judiciary’s 2026 focus on civic engagement and judicial outreach, encouraging greater public understanding of the courts and the Constitution while inspiring civic participation among future generations.
The Freedom Plane National Tour, presented at The Henry Ford as part of the nationwide America 250 commemoration, provides visitors with a rare opportunity to experience historic founding documents that continue to influence American democracy. The Jackson Home further illustrates how the pursuit of liberty and equal justice has evolved throughout the nation’s history and underscores the ongoing responsibility to preserve and protect those principles for generations to come.
The visit connected two defining chapters of American history. The Freedom Plane exhibition features some of the nation’s most significant founding documents, while the Jackson Home — recently relocated and restored at Greenfield Village — served as a meeting place where Dr. Martin Luther King, Jr., and other civil rights leaders planned the Selma-to-Montgomery marches and advanced efforts that helped lead to the passage of the Voting Rights Act of 1965.
“As our nation commemorates its 250th anniversary, we celebrate not only America’s founding, but also the generations of people who have worked to ensure that the promises of liberty, equality, and justice are extended to all,” Chief Justice Megan K. Cavanagh said. “The founding documents remind us that the rule of law remains just as essential today as it was 250 years ago. Courts serve as the bridge between our nation’s founding principles and their application today, ensuring that constitutional rights remain meaningful for every person.”
Throughout the visit, the justices reflected on how the nation’s founding ideals continue to shape the work of the judiciary.
For 250 years, courts have played a vital role in protecting the rights and liberties of the people by interpreting the Constitution and ensuring equal justice under the law. Visiting both the Freedom Plane exhibition and the Jackson Home offered a broader perspective on the American story — one that recognizes both the nation’s founding principles and the generations of Americans who worked to expand those ideals to include those who were originally excluded.
The visit also supports the Michigan judiciary’s 2026 focus on civic engagement and judicial outreach, encouraging greater public understanding of the courts and the Constitution while inspiring civic participation among future generations.
The Freedom Plane National Tour, presented at The Henry Ford as part of the nationwide America 250 commemoration, provides visitors with a rare opportunity to experience historic founding documents that continue to influence American democracy. The Jackson Home further illustrates how the pursuit of liberty and equal justice has evolved throughout the nation’s history and underscores the ongoing responsibility to preserve and protect those principles for generations to come.
