Michigan lawmakers miss July 1 deadline to pass state budget. How will it impact schools?

CBS News

02-07-2025

Michigan lawmakers missed their own legally mandated July 1 deadline to pass the state's budget for the next fiscal year.
For many government departments, the delay is a pain, but there's a more pressing impact for schools. Districts across the state do not have a clear view of the funding coming from the Michigan government. Despite that uncertainty, budget and education experts said classes will begin as scheduled this fall, but certain programs could be on the chopping block.
"It's a challenging situation for school districts," said Jason Helsen, the associate executive director of business and finance with the Michigan School Business Officials.
Normally, state lawmakers can finalize their budget and get it to Gov. Gretchen Whitmer's desk for her signature by their deadline, but that didn't happen this time around.
"It's not unusual that the district would have to make some decisions about what they estimate the state funding might look like, but certainly feeling like we're not close to having a deal and we're sitting here on July 2 is pretty disappointing," Helsen said.
Helsen noted the state budget isn't the only uncertainty for school districts. Federal funding, already allocated by Congress for things like before and after-school programs, money for English learners and funding for academic support, won't be released by the U.S. Department of Education, according to an announcement earlier this week.
"We very well may see districts having to make some reductions in order to account for that loss of revenue," Helsen said.
Doug Pratt with the Michigan Education Association said it's too early to tell what changes will need to be made in schools because of funding.
"What we need to focus on right now is making sure that money that's available to help bring education funding in Michigan up, uh, to support student needs, doesn't get diverted elsewhere," he said.
Pratt said he's hopeful lawmakers will be able to agree in the coming weeks.
"Is there uncertainty? Sure. Are there opportunities ahead to get this finished? We believe with real negotiation in Lansing that can happen and happen quickly," he said.