The MI House Signed Off On A $65B School Budget. What's Next?

LANSING, MI — Michigan's K-12 schools could see billions of dollars in federal COVID-19 relief through a $65 billion state spending plan overwhelmingly approved Thursday by the state house.

The next step for the budget is approval from the Republican-controlled Senate, which is all but a sure thing. While the next fiscal year does not begin until Oct. 1, a 2019 law requires Whitmer to be presented with a plan by July 1.

Here are some key takeaways from the budget:

What Would it Do?

Districts and charter schools would receive $8,700 in base per-student state aid through the budget, which does not include at least $1,093 more per pupil in federal funding from a rescue package signed by President Joe Biden in March, The Associated Press reported.

The state grant would rise by $589 for most traditional districts and charter schools, while districts at the higher end would get an additional $171, according to The Associated Press.

How Big of a Deal Is This Budget?

The budget was passed ahead of the July 1 deadline and stands as the largest investment in K-12 public schools in Michigan history, Michigan Gov. Gretchen Whitmer said in a statement Thursday evening. She also said the move would help close the gap between the lowest- and highest-funded school districts for the first time since the goal was introduced in 1994.

“The bills passed by the House today represent bipartisan progress in the budget process and are a step in the right direction as we continue Michigan’s economic jumpstart,” Whitmer said. “This framework is a strong start and proposes historic investments in public education, bumps up pay for direct care workers, and puts more people on tuition-free paths to higher education and skills training.

"However, we still have a lot of work to do to get this across the finish line, and I look forward to action from the Senate by July 1st so we can deliver for Michigan’s families, small businesses, and communities," Whitmer continued.

What's Next?

Michigan has a self-imposed July 1 deadline to present Whitmer with a budget plan, and the budget would need to be signed off on by both the House and the Senate by that point.

The deal is halfway there, but Senate Republicans have yet to agree to it.

However, talks surrounding the deal are expected to continue over the weekend, Bridge Magazine reported, with hopes of finalizing a deal by Wednesday. That is when the Michigan Senate will meet for the final time before the summer recess.

Technically, Michigan law doesn't require the state to have a balanced state budget until Oct. 1 anyway, but doing so sooner rather than later will ease pressure on school superintendents, who are searching for clarity as they finalize spending following a rollercoaster school year during the coronavirus pandemic.