July 2, 2026 | This Week in Government: Conference Committees Set, Members Still Hoping Budget Votes Possible This Week

For the second consecutive year, lawmakers were unable to meet the July 1 deadline for completing the state budget, but they took steps Wednesday to setup a potential endgame before the end of the week ahead of the Fourth of July weekend.

Omnibus budget bills for education as well as other state agencies and departments were moved into conference committees Wednesday, setting the table for potential votes before the end of the week.

SB 878 is the bill covering departments and agencies. HB 5630 is the bill covering K-12 schools and higher education.

Timing of final votes was still not clear as of Wednesday evening. As of Wednesday morning, negotiations on a smattering of sticking points were reportedly still ongoing.

It is highly likely that the Legislature will work late into Thursday night or on Friday to finish the budget, despite state offices being closed Friday for the Fourth of July holiday.

“We obviously have not made the July 1 deadline, and that is frustrating for our residents,” Sen. Darrin Camilleri, D-Trenton, told reporters following session Wednesday. “It’s frustrating for us as lawmakers, too, because we’ve tried our best to do our job to meet the obligation that we have, which is to fund our schools and fund our government by July 1, but we are making good progress, and I hope that we can wrap this up in the next couple of days.”

The House and Senate began the process of moving the two main budget bills late Wednesday afternoon.

House members amended and passed SB 878, the general omnibus budget, 104-1, with Rep. Dylan Wegela, D-Garden City, voting no. The Senate amended HB 5630, the school aid budget, and passed it 34-0.

Both chambers later voted not to concur and sent the respective bills to conference committees, a key step ahead of getting the bills back to the floor for final votes.

Conference committee members for SB 878 and HB 5630 were named by House and Senate leadership prior to adjourning Wednesday.

On Wednesday evening, committee meetings were scheduled for both bills. The conference committee for HB 5630 will meet at 1 p.m. Thursday and SB 878 was set for 1:15 p.m. Thursday.

Camilleri, who chairs the Senate Appropriations PreK-12 Subcommittee, said discussions about policy items apart from the budget have held up the process.

“As we saw last year, the state House likes to bring in a lot of different discussions into the mix, and so we’re trying to solve all of the problems at the same time, and when you’re doing a lot of big policy bills or big items in the budget, it just takes a lot of time to get through each of those individual items,” Camilleri said.

The senator was also asked if there was a final agreement on the budget as of Wednesday evening.

“If we had a deal on the budget 100% of the way, we would have done something today with that. We are making good progress,” Camilleri said.

When asked if the budget might not be completed this week, Camilleri said: “There’s always a chance for anything to happen, but our goal is … this week.”

Rep. Joe Tate, D-Detroit, the minority vice-chair of the House Appropriations Committee, did not provide specifics Wednesday on the timeline for finishing the budget but echoed Camilleri’s claim of progress.

“There’s still ongoing conversations. Negotiations,” Tate said. “I think we know where we’re at. I mean, obviously, we’ve had for the past several fiscal years support from the federal government. I think now the budget is correcting itself, so we want to make sure that we’re using every penny as wisely as possible. And I know my colleagues in the caucus as well, they’re focusing on the basics … from healthcare, to education, to public safety.”

Tate said the Legislature was contending with the ramifications of the federal HR 1.

“The last estimating conference, we were a billion-two short, so I think you add all of that together, I think that’s where some points of difference are coming up,” Tate said.

The 2026-27 fiscal year budget will not contain any new revenue, Tate said.

“We’re really being smart with how we’re deploying those resources,” he said. “That’s what’s been going on in terms of the conversations of finding efficiencies.”

The Legislature’s inability to pass a budget by July 1 for the second year in a row shows how passionate people are about negotiating, Tate said.

“We know that school boards, school districts, local units of government need to prepare, so I think we’re weighing a couple of things,” he said. “The budget correcting itself, how do we deploy those resources with making sure that these local units of government and schools have certainty? … Everybody wants to get there. It’s just how do we get everybody on the same page.”

One issue that remains to be seen is to what extent legislative earmarks factor in the final product.

In a Wednesday morning meeting, the Senate Appropriations Committee briefly touched on the Senate’s list of earmarks eligible for inclusion in the budget. They did not go through the hundreds of individual items on the list.

About 1,250 proposals were submitted for legislative earmarks in the budget between both chambers, Senate Appropriations Committee Chair Sen. Sarah Anthony, D-Lansing, said.

Anthony told reporters following the appropriations meeting that budget progress has been significant, but she was disappointed to not be done on July 1.

“There are a few sticking points, obviously, because that’s why we are not voting on it right away today, but I am proud of the fact that we’ve made some pretty significant progress,” Anthony said. “We haven’t left the table for weeks, and we’re hopeful that we get something done pretty soon.”

Anthony said the budget would be passed soon, but it was taking longer than she would like.

“Negotiations are just that: they are a set of compromises that don’t compromise values, but when there’s ways that we can all be creative in our solutions to move things forward, I think that’s what it’s going to take,” Anthony said.

As to whether there have been issues with anyone remaining at the table, Anthony declined to comment.

The Legislature’s July 1 statutory deadline does not include any penalties for failing to pass a budget by that date. One House Democrat wants to see that change.

Rep. Regina Weiss, D-Oak Park, recently introduced HJR Y, which would add penalties for failing to meet the July 1 budget deadline.

The resolution would dock the pay for the governor, the Senate majority leader and the House speaker, and it would add requirements for posting the budget documents for the public a week before the vote and any amendments 24 hours before a vote.

“Last year, when we went so late, and even missed the constitutional deadline, there was a lot of conversation around potentially docking legislative pay, and I think the general public hears that, and I think that that makes sense,” Weiss said. “The problem is a lot of these decisions are being made at the very top. … We’re not even pulled into these discussions. A lot of us don’t even actually get to see the budget that we’re voting on until maybe an hour before we’re voting on it.”

Weiss said the resolution was referred to the House Appropriations Committee, and although she thought there would be support from rank-and-file members, she didn’t expect House Speaker Matt Hall, R-Richland Township, would put up a resolution to dock his pay.

“I don’t think it’s likely that we’re going to get that,” she said. “But I still think it’s important to have some sort of penalty associated with getting a budget done on time, and unfortunately, the way that the budget structure works, it’s really just getting people ultimately deciding what we’re voting on and when we’re voting on it.”

Weiss said frustration with the Legislature for failing to pass a budget on time for the second year in a row was valid, especially among school groups.

“They should be extremely angry, and they should be making sure that their parents know … asking their parents to reach out to their legislators and urging them to get this budget done as quickly as possible,” she said. “We don’t know if we’re going to be voting on a budget tomorrow, Friday, Saturday. We’re hearing lots of rumors swirling around. … We really don’t know at this point, and frankly, that’s unacceptable.”

A concurrent resolution between the House and the Senate to extend the use of winter gas through summer months cleared the House on Wednesday.

The language of SCR 14, sponsored by Sen. Darrin Camillieri, D-Trenton, was substituted out for the language of HCR 8, sponsored by Rep. Donni Steele, R-Orion Township. It passed the House 103-2. Rep. Veronica Paiz, D-Harper Woods, and Rep. Dylan Wegela, D-Garden City, voted no.

The language of the Senate version focused on the content of the governor’s executive order and the higher vapor pressure for gas. The language in the House version spells out more specifically the issue of higher vapor pressure and concerns over availability of E15 fuel.

The only change, Steele said, was taking out the gas volatility number.

“It doesn’t have to go to the governor for a signature, because it’s a concurrent resolution,” Steele said. “Basically, it’s using winter gas through the summer, and theoretically, we should be able to us this gasoline because the cars have become so much more energy efficient that this shouldn’t be giving off emissions that are hazardous to our community.”

Camilleri told reporters following session that the resolution was critical to people who are being hit hard by rising costs coupled with high fuel prices.

“We’re talking about anywhere from 10- to 30 cents a gallon, that they would see, our residents across Michigan, could see an increase on if we did not extend this emergency order,” Camilleri said. “It’s a few bucks in their pocket, and that’s something that, as you see people pinching pennies, we want to do what we can to try and address that.”

Gov. Gretchen Whitmer signed an executive order April 2 that declared an energy emergency, which allowed for the sale of higher vapor pressure gasoline. This enables fuel to be sold at a lower rate, about 10 cents to 20 cents cheaper.

“I’m really excited about being able to maintain what we have right now in our gas prices, and hopefully they’ll continue to go down,” Steele said. “We don’t need them at a higher cost because of our inaction.”

Steele said she’d like to see a law passed that would make the change permanent across the state.

“Are we really saving the environment by just limiting it to those counties in the state when surrounding states don’t do it?” she said.

Steele said she was happy that the Legislature was able to work together to extend the executive order in a bipartisan, bicameral way.

Whitmer expressed gratitude to the Legislature for extending the energy emergency in a statement on Wednesday.

“Michiganders have been grappling with high gas prices driven by the war in Iran. They’re paying a dollar more per gallon than they were three months ago. To give working families relief at the pump, I signed an executive order relaxing Michigan’s summer fuel requirements, saving Michigan motorists 10 to 20 cents per gallon at the pump by giving them access to the same lower-cost fuel already available in the rest of the state,” she said. “Under Michigan law, this waiver would have expired on July 1 without legislative action. Today, the legislature extended the state of energy emergency for the rest of the summer. This was the right move to lower costs for Michiganders and provide relief at the pump.”

Legislation that would modify provisions related to the sale of a property on which the mortgage is being foreclosed passed the House on Wednesday.

The bills address quitclaim deeds. Among the rights homeowners give up under quitclaim deeds are the right to buy their home back after auction through redemption, the right to stay in their house for a time after the auction, the right to any money that the house sells for that was owed or surplus proceeds.

“Losing these houses is depriving the families of generational wealth,” Rep. Joey Andrews said in a floor speech supporting the package. “What our bills seek to do is create a cooling off period, something that will give these families the opportunity to review their rights, figure out if this is actually the right option for them.”

HB 5152 and HB 5153, sponsored by Rep. Brad Paquette, R-Niles, and Andrews, D-St. Joseph, would require clear notice before anyone signs away their rights, with a separate and easy to understand document that explains what rights they are signing over, including redemption, occupancy and surplus money. The bills would also require the buyer to provide information about how much equity is being lost, and a seven-day cooling off period before the homeowner is required to sign.

“This legislation keeps property rights as a central priority within this chamber by closing loopholes that are exploited by ambitious actors,” Paquette said during his floor speech. “Let’s give notice of property rights when they are needed most, in the moments of highest pressure and uncertainty. Let’s give homeowners an easy route to document and establish fraud. Let’s allow some light at the end of the tunnel where there might seem to be none.”

Both bills passed 102-3. Rep. Julie Brixie, D-Okemos; Rep. Steve Carra, R-Three Rivers; and Rep. Joe Tate, D-Detroit, voted against the package.

The House also passed legislation that would roll back a requirement for the Department of Labor and Economic Opportunity to launch its youth employment registration system, set to go live in October.

Beginning Oct. 2, 2026, LEO must “maintain a registration system allows minors to register for employment and employers to register to employ minors,” which entails collecting work permits from minors and their employers which include proof the minor is of the age required by the act, enrolled in school and has been cleared for employment by a parent or guardian with the corroborating statement of a physician.

Currently, the act requires minors to obtain a work permit from their school district, public school academy or nonpublic school before beginning a job. Employers must keep a copy of the permit on file for as long as the minor is employed. Hoadley’s bill would eliminate both the current permitting provisions and the ones set to take effect in October.

Democrats said the legislation took a dangerous step backward.

“This bill unfortunately strips protections from child exploitation and trafficking and actively reduces accountability for employers who do prey upon a child’s vulnerabilities,” Rep. Betsy Coffia, D-Traverse City, said during a floor speech against the bill. “It would essentially leave children with no protection and zero meaningful recourse against unethical employers.”

Rep. Phil Skaggs, D-East Grand Rapids, also opposed the bill in a floor speech.

“It is our responsibility to not to simply make it easier for businesses to work kids and make profits,” he said. “It’s our responsibility as legislators to ensure young people can gain valuable work experience while remaining safe.”

Rep. Mike Hoadley, R-Au Gres, the bill sponsor, said the bill was necessary because “red tape” was preventing young people in Michigan from gaining valuable work experience and developing responsibility.

“Employers will still verify age and comply with the law but without the added paperwork and delay that discourages the hiring of young, eager workers,” he said.

Hoadley said that instances of children being hurt at work happened under pre-existing work permit requirements, and his bill did not change youth employment protection.

“These incidents resulted from employers that were likely violating youth employment protection laws,” he said. “This bill strikes right to the balance: protecting our youth while expanding opportunity.”

The bill passed 57-49.

The State Court Administrative Office announced a redesign of civil court forms meant to modernize the process and make filing easier for everyone.

Forms for small claims cases were released on Wednesday, but other forms like parenting time and tenant matters will be released soon. The office is targeting “the most impactful cases” and those with little to no attorney presence, hoping to make self-representation more efficient.

The redesign marks the first changes in almost 50 years to the forms, Supreme Court Chief Justice Megan Cavanagh said during a press conference. Form design standards were first developed in 1979.

The goal was to create “legally accurate, understandable, accessible, and user-friendly forms,” Cavanagh said, to increase access to justice.

“Sometimes complicated, hard to fill out forms are a barrier for self-represented litigants, and they might keep them out of the court altogether,” Cavanagh said. “In particular, litigants need to feel confident and empowered to complete court forms, engage in the system and make their case on the merits. Simpler, streamlined forms help to level the playing field, providing a path to their day court.”

The new forms, formulated with the use of user testing and developed by a forms committee in the Justice for All Commission, include more plain language usage.

Justice Brian Zahra, who chairs the Justice for All Commission, in a statement said a new review process from those who utilize the forms will also be conducted.

“I was a trial court judge in Michigan’s largest circuit court, and I saw moms and dads and business owners and veterans and others in my courtroom struggle to represent themselves regarding life-changing issues in a system not designed for them,” Zahra said. “Today, we are talking about much more than a set of new forms; we are talking about a whole new review process that goes beyond legal sufficiency to a broader, more inclusive feedback model that solicits input from the people who use the forms, ranging from litigants to court staff to judges.”

Nora Ryan, program director for Michigan Legal Help, said many forms use terms that few people are familiar with if they do not have a legal background. When people do not understand a form, they are more hesitant to fill them out in the first place.

During testing, they found more people understood the words, but that language change was also not enough, Ryan said.

Court forms can also be text dense and intimidating, with confusing numerical systems and boxes that could make it hard for people to understand what they are and are not supposed to fill out, Ryan said.

“Key pieces of information, like a court date, can be embedded in the middle of a form and easily missed,” Ryan said.

She said if people don’t fill out the forms correctly, it could lead to real life consequences: tenants move out because they misunderstand what a complaint means, wages are garnished because they don’t understand that they need to file a written response to get a court date and divorce cases are dismissed because people are confused about service.

The way the page is set up is also important, Deborah Hughes, executive director of the Legal Assistance Center in Grand Rapids. In the old forms, there are often tiny spaces and small text for long answers, which leads to those completing the forms believing the answer is unimportant or missing it all together.

The new design has more white space, uses larger fonts and check boxes when possible, Hughes said. The information is explained and easier to find as well.

Michigan can attract significant investment by being a competitive location for data centers but will also need to weigh important policy decisions to regulate them to protect residents and the state’s resources, a new report found.

A report released Thursday by Public Sector Consultants found Michigan is growing in importance as a location for data centers, which are projected to be a multi- trillion-dollar industry nationally over the next five years as the demand for data processed by the facilities to maintain modern life grows.

“Michigan has a once-in-a-generation opportunity to attract significant new investments into the state through data center development,” the report states. “This investment could provide local governments with millions in new revenue, modernize Michigan’s energy grid, and create thousands of new jobs. However, Michigan faces stiff competition for data centers from other states.”

The report was commissioned by the Michigan Chamber Foundation in cooperation with the Detroit Regional Chamber.

Thursday’s report comes as data centers have become a key issue in state politics. In the Legislature, House and Senate Democrats recently introduced bill packages looking to expand regulations over them. Other lawmakers have called for moratoriums on their development.

Data centers, particularly hyperscale data centers that have been proposed in the state, have drawn backlash from residents over the past several months. Concerns raised include the effect they could have on the electric grid, the possibility of costs being passed on residential ratepayers and environmental issues such as large-scale water use.

The study notes these concerns as well as public concerns over elected officials signing nondisclosure agreements involving data centers and whether the state is providing economic development incentives to attract projects to Michigan.

“The good news is that many of these issues are being addressed within Michigan’s current regulatory framework and companies have issued public pledges to operate in a way that mitigates these concerns,” the report states. “Other public concerns are not insurmountable but will require updates to regulations and more engagement with the public.”

“The demand for data centers is being driven by the rapid digital transformation occurring across nearly every sector of the economy, and how people are living, working and doing business,” Jim Holcomb, president and chief executive officer of the Michigan Chamber, said in a statement. “That demand will only continue to grow. Michigan cannot afford to put its head in the sand while other states aggressively compete for the infrastructure powering the next generation of economic growth and opportunity. The question isn’t whether this investment will happen, but where – and whether Michigan will have the policies and public support necessary to compete responsibly for it and benefit. This report helps show how to do just that.”

Included in the report are several policy recommendations.

One recommendation was that if the state uses any economic development incentives for attracting data centers, it should make sure companies are enticed to invest in other high-tech jobs beyond the data center’s operations, such as research lab jobs.

The Public Service Commission should use best practices to protect utility ratepayers from being passed on the costs from providing electricity to data centers. The report also recommends having the PSC be transparent about the protections it puts in place, which would improve public confidence over data centers.

Lawmakers should also codify ratepayer protections in statute, the report states.

“Concerns that data centers raise electricity rates are causing public opposition,” the report states. “Michigan’s regulated utility market and the MPSC already have safeguards in place to prevent data center-related utility hikes, but more should be done to make the public aware of these protections – enshrining them in state law would provide an added level of confidence.”

Further regulations including requiring companies operating data centers to use low-water-usage cooling technologies if drawing groundwater were recommended, as were the creation of incentives to have data centers placed on former brownfield sites.

It was also recommended that the state’s enterprise data center sales tax exemption be amended to allow for using low-water-usage technologies in addition to municipal water as a way for qualify for the sales tax exemption.

Transparency was a key area for improved regulations in the report.

Expanding public engagement processes for data center projects was recommended, as was limiting nondisclosure agreement use by governments and public officials. A reduction in what information is allowed to be covered by a nondisclosure agreement was also suggested, as was having an expiration date on such agreements.

The state should also consider exempting hyperscale data centers from property taxes and instead create a new tax specifically for such facilities or have local governments secure property tax guarantees with companies operating data centers to ensure certainty about tax payments, the report recommended.

“Michigan has strong regulations to protect energy ratepayers, water resources, and ensure state incentives practice best practices in development,” the report states. “By making a handful of policy changes, Michigan policymakers can address many of the public concerns driving this opposition and make the state more welcoming to these potentially transformational innovations.”