Michigan House Republicans have unveiled and passed their $54.6 billion budget proposal that slashes millions of dollars from most state departments and agencies and cuts thousands of government jobs.
The government spending plan passed by a 59-45 vote Tuesday, Aug. 26. Combined with their $21.9 billion education budget, the House Republican's proposed $78.5 billion spending plan for 2026 is about $6 billion less what Senate Democrats have put forward.
All House Republicans voted for the plan, and all House Democrats except for state Rep. Karen Whitsett, D-Detroit, opposed the plan.
Under the Republican spending plan, only the Department of Transportation, Department of Military and Veterans Affairs, Executive Office, Legislature and Office of the Auditor General would see increased funding.
Other departments, like State Police, Health and Human Services, and Environment, Great Lakes and Energy, would see tens of millions of dollars or more slashed from their current funding levels.
House Speaker Matt Hall, R-Richland Township, said the budget is the product of finding and cutting "$5 billion in waste, fraud and abuse" in government operations "and redirected to priorities that people care about, like roads, public safety and education."
Some cuts highlighted by Hall include eliminating 4,300 non-existent "ghost employees" on the payrolls, a state fund to attract large-scale investments, the state's COVID-19 task force, arts and culture grants and more.
The Republican plan also takes $2.5 billion from the "slush funds" of multiple departments, Hall said. That money, he said, comes from departments that receive funding for employee positions they never fill, instead storing the money in an account.
Hall touted that his caucus' road plan is now estimated to generate nearly $3.4 billion in new funding every year to fix the state's crumbling roads and bridges. That's an increase of $330 million a year from what was previously pitched, which Hall said comes from using those "slush fund" dollars to pay off road bonds.
Like the House Republican proposed budget for K-12 and higher education that was put forward earlier this year, the general government spending plan is likely to face resistance in the Democratic-majority Senate.
"House Republicans have failed to do their jobs and blew past the budget deadline so they could pass cuts to essential programs like free school meals, job training programs and funding for state police," said Michigan Democratic Party Chair Curtis Hertel Jr. "They brought the process to a screeching halt, and now, they're pushing a budget that will raise costs for Michiganders.
"Just like their federal counterparts, state House Republicans are abandoning working Michigan families and raising prices on everything. Michigan Democrats will fight to protect vulnerable Michiganders from these extremist attacks on them and their families."
The Michigan Legislature has until midnight Sept. 30 to agree on a spending plan for government and education and get that budget before Gov. Gretchen Whitmer to sign into law. If lawmakers fail to do that, the state will face a government shutdown.
In recent weeks, leadership from the Democratic-majority Senate and Republican-majority House have been pointing their fingers at each other over who is to blame for the impasse. Funding priorities and how to generate billions of dollars a year for road repair is at the heart of the dispute.
Hall, Whitmer and Senate Majority Leader Winnie Brinks, D-Grand Rapids, met earlier Tuesday on the budget.
With the $21.9 billion education plan passed by the House earlier this year, House Republicans are proposing a roughly $78.5 billion budget for the upcoming fiscal year.
The House plan would be a 3.7% reduction from the current year's budget. It's also 6% smaller than Whitmer's proposed spending plan for the upcoming fiscal year and 7.2% smaller than the Senate's proposed spending plan, according to House Republicans.
The House Republican spending plan would forbid departments from funding diversity, equity and inclusion initiatives and policies, would require or prioritize in-person work across state departments and would require state contractors to verify people they hire are legally in the U.S.
The spending plan would also attempt to tie Attorney General Dana Nessel's hands in suing the federal government or joining other states in suing the federal government.
The House Republican plan would cut the Michigan Department of Health and Human Services' Medicaid and behavioral health spending by about $3.7 billion down to $25.28 billion. The department's human services budget, which includes public assistance programs, would be cut by about $1 billion down to $6.17 billion.
House Appropriations Chair Ann Bollin, R-Brighton Township, said the House budget reins in expenses like Medicaid paying for name-brand prescription drugs and cracks down on food assistance fraud.
"Even with these reforms, funding for these programs continues to grow," Bollin said. "We are committed to protecting services for our most vulnerable people, and our budget ensures that benefits remain available for those who truly need them."
The state police budget would be cut by $66.2 million down to $886.8 million. The corrections budget would be cut by about $28.5 million down to $2.1 billion.
The Republican budget would cut 775 full-time employees from corrections and 433 full-time employees from the state police budget. Positions cut include 695 vacant full-time positions in corrections and about 297 state police employees from post operations, according to the House Fiscal Agency.
State Rep. Mike Mueller, R-Linden, said 330 of these cuts to state police are "phantom positions" that are on the payroll.
The Department of Corrections currently has 13,227 full-time employees, and Michigan State Police has 3,856 full-time employees.
Hall said his plan includes a pay increase for troopers and corrections workers and that the goal is to increase the state police force over time. He touted the budget including a $112 million Public Safety Violence and Prevention Fund that would see local police get more dollars.
The departments run by Democratic elected leaders Secretary of State Jocelyn Benson and Attorney General Dana Nessel would see sizable cuts.
The Department of State would be cut by $69.3 million down to $222.4 million and lose 240 full-time employees. Of these, 186 are vacant positions. The department currently has 1,635 full-time employees.
The Attorney General's Office would be cut by $38.3 million down to $91.3 million and lose 96 full-time employees. About 77 of these are from prior year increases. The department currently has 627 full-time employees.