Lawmakers in the Michigan House passed a $78.5 billion budget on Tuesday, more than a month after missing their July 1 deadline.

Republican lawmakers proposed the state budget with more than $5 billion in cuts. Those cuts include over 4,000 phantom jobs, arts and culture grants and positions in the state Attorney General's office. The budget also includes $3.14 billion allocated to road funding. 

"We all know that government has grown 43% under Gretchen Whitmer, and today we're finally starting to rein that back in," House Speaker Matt Hall said in a press conference.

As lawmakers battled over the budget, school districts across Michigan worried about funding as the school year was approaching.

Teachers in the Birmingham Public School District took a stand on Tuesday as educators returned to work with no contract. At the time, Superintendent Embekka Roberson said cuts at the federal level and the "continued uncertainty at the state level in terms of school funding, have made our budgeting process more challenging."

Additionally, school districts did not know whether funding would be available for the free meal program. 

The bill will need to go to the Michigan Senate before a potential government shutdown on Oct. 1.

What's in the budget?

Lawmakers included $3.14 billion dollars to put towards Michigan's roads and infrastructure projects. The budget also includes a bill that would eliminate taxes on tips. 

However, nearly every department in state government will see cuts. State police will see about a $66 million cut, and a $28 million cut to the Department of Corrections. 

Lawmakers say that by cutting phantom jobs, another provision within the state budget, Michigan will save $560 million. 

Republican lawmakers tell CBS News Detroit the goal of this budget was to root out waste, fraud and abuse within state government, modeling their effort after the federal push. 

The state Attorney General's office and the Secretary of State's office will both see significant funding and position cuts. 

The state budget also includes provisions to prohibit departments from funding diversity, equity and inclusion efforts, require state workers to work in-person and require government contractors to verify their workers are legally allowed to work in the U.S.