Michigan lawmakers anticipate missing July 1 budget deadline for second year straight

July 1 is the deadline for Michigan lawmakers to pass a state budget, and it looks like they'll miss that cutoff for another year. 

Missing the deadline for the state budget doesn't carry any legal consequences, but the delay is particularly frustrating on Capitol Avenue. That's especially true for schools that, again, have to set their budgets without knowing how much they'll get from the state.

Last year, lawmakers failed to approve a budget by the July deadline and had until Oct. 1, 2025, to avoid a potential state government shutdown. The Senate and House finally passed the budget just in time for the October deadline, but not before invoking a continuation budget to temporarily keep the government operating during the voting process.

"Obviously, it's better if it's only a couple days late vs months late, but it shouldn't be late at all. Today is the statutory deadline. It is law that the budget has to be presented to the governor by today, on or before today. There's no reason we're in this delay," said Jennifer Smith, who serves as the director of governmental relations for the Michigan Association of School Boards. 

The lack of a budget agreement means schools across the state don't know how much funding they'll receive from the legislature. Last year — when the budget was months past the deadline — schools had to do a lot of guessing. 

"Over the summer, teachers were pink-slipped, hiring was frozen because they didn't know when and if they were going to get their state funding," said Smith. 

Both sides of the aisle said that lawmakers are close to reaching a deal. In recent weeks, leaders agreed to a framework but few details. 

"There are still a lot of details to iron out, so we're still working through those, but you know, we've got session today and session tomorrow, and I think by the latest by the end of tomorrow we should have something," said state Rep. Joe Aragona, R-Clinton Township. 

One of the few details we do know is that this year's budget will be smaller than last year's— at least in part because there are fewer federal dollars coming to Michigan.

"We want to make sure that we're using every penny as wisely as possible, and my colleagues in the caucus, as well, they're focusing on the basics. I think everything that you're seeing from education to healthcare, public safety," said state Rep. Joe Tate, D-Detroit.