June 20, 2025 | This Week in Government: Hall Recommits to July 1 Deadline for Education Budget

House Speaker Matt Hall exhibited a renewed commitment to getting an education budget passed by July 1 during a press conference on Wednesday.

“We’re going to make a good faith effort to do schools by July 1,” Hall (R-Richland Township) said. “I’ve always told people I’ll work in good faith to do it, but I don’t have confidence that the Senate Democrats are serious.”

The House passed its version of the School Aid Fund budget (HB 4577) and the higher education budget (HB 4580) last week. The Senate passed its budget recommendations for the School Aid Fund and the General Fund a month ago.

Hall was scheduled for a budget meeting with Senate Majority Leader Winnie Brinks (D-Grand Rapids) on Wednesday, and several other budget meetings between key players are also scheduled for this week.

“I think we’ll make some progress, and I think we’ll get an education (budget) by July 1,” Hall said. “And I’m actually going to work in good faith toward that and not blame other people.

“House Republicans have had a plan this whole time going into negotiations, and we’ve had to craft that plan knowing that the Senate Democrats were not serious about doing the budget timely and wanted to shut the government down and blame us,” he said. “We’ve had to operate with the plan, knowing that that’s what their plan is.”

Previously, the speaker was more reticent about committing to a July 1 deadline for any budget.

At the Detroit Regional Chamber Mackinac Policy Conference last month, Hall said he expected the budget would not be ready until after the July 1 statutory deadline and was unwilling to commit to passing any budget out of the House by that time (See Gongwer Michigan Report, May 28, 2025) .

“Senate Democrats want to shut down the government to blame me, and they think it’s funny. … We’re going to do our best to get a deal, but with this group, (I) think it’s going to be well after July 1,” he said.

Hall said the House needed to take its time to ensure that the state was delivering value for tax dollars.

“If we take our time, we’re going to be able to do something much better, and we’re going to finally fund all these priorities for Michigan,” he said last month.

On Wednesday, Hall said that passing budgets out of the House by July 1 was a realistic timeframe.

Hall was unwilling to comment on the points of negotiation for the School Aid Fund budget or the higher education budget on Wednesday, saying he wanted to speak with Brinks first.

“I would just say, ‘Well, what proposals would you put forward to compromise?’ And we’ll see what they say. It’ll be very interesting, because you have to compromise because it’s divided government,” he said.

Hall also addressed the changes to the higher education budget that the House passed last week, insisting that the version the House proposed on Wednesday and the version passed on Thursday were very similar.

“The only differences, really, are that the universities came out worse,” he said.

The higher education budget that cleared the House reversed course on large cuts across the board for the 15 public universities that the House Appropriations Committee approved a day earlier, though it maintained deep reductions for Michigan State University and the University of Michigan-Ann Arbor (See Gongwer Michigan Report, June 12, 2025).

The version of the budget Appropriations reported last Wednesday cut $828.1 million from the university’s operations line item. On Thursday, the cut was only $51.6 million. The proposal also shifted $1.2 billion School Aid Fund dollars into university operations, replacing that amount in the General Fund.

The budget the House passed also abandoned a proposal from the original version of the bill to expand eligibility for scholarships to the state’s universities for any student who graduated from a Michigan high school. The original version of the bill would have pumped more than $1 billion into the Michigan Achievement Scholarship program.

The end version deposited $20 million and kept eligibility rules the same as current year. For operations funding, MSU would lose $56.6 million, and U-M would lose $234.4 million, an 18% and 65.1% cut, respectively.

The funds cut from the two universities would be distributed among the other 13, which would receive increases varying from 23.4% to 26.3%. The Appropriations version of the budget cut direct aid to all 13 by anywhere from 5 to nearly 60%.

“Rather than having two complicated columns that were causing all this confusion, we just put in all in one column,” Hall said, referring to a table included in a House Fiscal Agency analysis that suggested money universities could potentially receive from students on the Michigan Achievement Scholarship was on par with the direct appropriation to each institution from the state.

“We made it the traditional way, which is just a direct appropriation instead of splitting it,” Hall said.

The scholarships money, had it remained, would have replaced tuition dollars from students, meaning universities would not have netted any new money.

Last week, however, House Appropriations Committee Chair Ann Bollin (R-Brighton) acknowledged that the budget the House passed Thursday was very different from the budget the House proposed.

“It’s all part of the process. … I’m very disappointed that it’s not what we put forth yesterday,” she said Thursday night. “But at the end of the day, this is where we’re at. It does achieve our overall goals and our efforts to try to reduce government spending and provide more value for the taxpayers, and this does deliver that.”

Following Hall’s press conference on Wednesday, Tracy Wimmer, press secretary for Minority Leader Ranjeev Puri (D-Canton Township), said that House Democrats were committed to having serious conversations about the budget.

“I can’t speak to the conversations that Speaker Hall and Majority Leader Brinks and the governor have been having about meeting the deadlines. But obviously he doesn’t seem terribly concerned,” Wimmer said. “We saw it first with rushing the education budget through in 20 hours last week – dropped it in the middle of the night, and then put it through the entire legislative process, and then with the higher ed budget. …Hall failed pretty spectacularly on trying to get his original budget through for 10 hours, trying to move his votes in his caucus. And eventually they had to turn out an entirely new budget.”

Hall said that the nearly 11 hours spent in session last Thursday was because they had to wait for the bill to be drafted.

“I think last week was a little bit (of an) indication that they don’t have anything ready. But that doesn’t mean we’re not optimistic,” Wimmer said. “We’re still committed to having these conversations. We welcome them. Frankly, obviously, Speaker Hall needs a lot of help, despite his assertions.”

Amid trade negotiations between the U.S. and Canada, Michigan State University’s Institute for Public Policy and Social Research hosted a panel Tuesday highlighting the economic risks facing the Detroit-Windsor region, warning that tariffs and policy uncertainty could jeopardize automotive jobs and slow cross-border investment.

The panel centered around a June study from the MSU Center for Canadian Studies, conducted by professor Jason Miller, which estimated the loss based on data showing that the Trump administration’s steel and aluminum tariffs led to a 19-fold increase in import duties from Canada between January and April of this year (editor’s note: this story has been changed to correct who issued the study). The same study found a 90% drop in U.S. motor vehicle exports to Canada over that period, driven by tariff uncertainty and investor hesitation.

Tens of thousands of manufacturing jobs are at risk on both sides of the border, said Jason Miller, the report’s author and a professor of supply chain management at MSU.

The event brought together regional leaders who emphasized the tightly integrated nature of the Michigan-Ontario manufacturing economy – and the damage even a temporary disruption can cause.

“Canada buys more from the U.S. than Mexico, China, Japan, and Germany combined,” said Windsor Mayor Drew Dilkens, who headlined the panel alongside Detroit’s Consul General of Canada Colin Bird and others. “If you put a giant tariff wall down the middle of the Great Lakes, you’re disrupting an ecosystem that has been at the core of Michigan prosperity for over a century.”

Windsor–Essex is the third most vulnerable metropolitan area in Canada to Trump’s tariffs, Dilkens said. Canada and Michigan are each other’s top trading partners, with vehicles making up over half of Windsor’s exports.

Beyond the manufacturing sector, panelists also raised alarms about cross-border investment. Bird pointed to Section 899 of the Trump administration’s budget bill, passed by the House, which would impose a 20% tax on Canadian corporations investing in the U.S.

“Imagine what a freezing effect that would have on investment from offshore companies into the U.S. market,” Bird said. “When you combine that with this yo-yo tariff policy, the message to foreign investors like Canada … is significant.”

“I talk to Canadian companies and U.S. companies,” he added. “The message I get everywhere is: ‘We’re treading water,’ or, ‘We’re on pause.’”

Michigan’s tourism industry is also feeling the effects. Detroit-Windsor border crossings were down 20% as of March, Bird said, and the U.S. Travel Association estimates a 10% drop in Canadian tourism could cost 14,000 American jobs.

Bird described a “triple whammy” hitting Michigan’s tourism sector: trade tensions, stricter border enforcement, and inflammatory rhetoric – including “51st state” remarks from Trump and his allies. He acknowledged growing Canadian concern online over border security, advising travelers to be prepared for electronic device screenings.

Despite those tensions, Dilkens and Bird expressed optimism about the long-term strength of the Detroit-Windsor relationship. Dilkens said he was encouraged by recent trade talks between President Trump and Canadian Prime Minister Mark Carney, which he described as emphasizing stability.

With the Gordie Howe International Bridge slated to open this fall, Dilkens said he hoped to see the two leaders “meet in the middle to shake hands.”

“I think the voices of Michigan are starting to penetrate this conversation in Washington,” he said. “And that’s all to the good.”

The House will not hold session this week as most of the Republican caucus is in Washington, D.C. to meet with members of the Trump administration at the White House.

About 30 legislators are traveling to further discuss Michigan priorities including the Selfridge Air National Guard Base, the future of Line 5, infrastructure investments, and the Brandon Road invasive-species barrier project.

Most members will have meetings Tuesday and Wednesday, and Thursday, session is cancelled in observation of Juneteenth.

“There’s a bunch of stuff in the One Big Beautiful Bill, so I’d love to learn a little bit more about that,” said Rep. Joe Aragona (R-Clinton Township), who was travelling to D.C. on Monday. “From our end, there’s a lot of things that I’d like to share about Macomb County.”

One of the things Aragona highlighted was federal infrastructure investment.

“Republicans passed the $3.2 billion (roads plan) without raising revenues, but we could still use some federal help,” he said.

He also said he’d like to discuss underground infrastructure like sewer systems.

“It’s not going to be able to be fixed overnight, and it’s not going to be a cheap fix either,” Aragona said.

Aragona demurred on whether he hoped President Donald Trump would endorse his potential bid for the 10th U.S. Congressional District. Aragona has not officially entered the race but is considering it.

“If he’s looking for somebody who’s grown up in Macomb County and an Italian fella, I’m sure he knows somebody who’s got my phone number, but if he’s looking for someone who’s Ivy League educated, there’s probably a few more candidates who are better qualified,” he said. “We’ll see what direction he wants to go.”

Aragona said that the meetings in D.C. were a good opportunity to make sure that Michigan issues were in front of federal officials.

“It’ll be good meetings all around,” he said. “Hopefully, we can come back with some good news for Michigan.”

Michigan’s seasonally adjusted jobless rate edged down to 5.4% during the month of May, the Department of Technology, Management, and Budget said Wednesday.

As the unemployment rate was down a tenth of a percentage point, the Michigan Retailers Association reported reduced sales in May but increased optimism among members moving forward.

“Michigan’s labor market remained stable over the month, with a minor unemployment rate reduction in May,” Wayne Rourke, labor market information director for Michigan’s Center for Data and Analytics, said in a statement. “Statewide payroll jobs also rose over the month and over the year.”

The U.S. unemployment rate remained constant for the third consecutive month at 4.2%. Michigan’s jobless rate in May was 1.2 percentage points above the national rate. During the year, the national unemployment rate rose by two-tenths of a percentage point, while the statewide rate increased by 0.9 percentage points since May 2024.

Michigan Retailers Association reported that May 2025’s Retail Index landed at 57.3, which generally means May was a positive month for sales, but still a decrease from April’s index.

Fifty-one percent of retailers noted an increase in May sales over April, while 30% of Michigan retailers surveyed reported a sales decrease, and 19 percent reported no change.

Compared to May 2024, this year’s score rose nearly 10 points. Last year, Retail Index scores did not cross the 50-point threshold from January through September, indicating a rough season for retail sales. However, this year’s index scores have been more volatile.

“Twice this year, we’ve seen the Retail Index swing more than 15 points from one month to the next. With May’s score only marking a two-point dip from April, some stability in scores has returned,” William J. Hallan, president and chief executive officer of the Michigan Retailers Association, said in a statement. “The volatility we’ve seen in this year’s Retail Index scores is a clear indicator of the uncertainty business owners are facing today. Now more than ever, it’s important for consumers to support Michigan’s retailers and the small business community.”

When asked about their sales outlook for the summer months, 57% of retailers predicted their sales would increase, 24% said they expect their sales to decline, and 19% anticipate no change. Resulting in an index rating of 63.6, the optimism score increased for the second month in a row with a moderate bump over April’s index score of 59.9.

Access to opioid addiction and overdose treatment would expand under a nine-bill package presented to senators in committee on Wednesday.

Backed mostly by Democrats and led by Senate Health Policy Committee Chair Sen. Kevin Hertel (D-St. Clair Shores), the legislation would make it easier to get medication-assisted treatment and distribute Narcan more widely through schools, health care providers, and pharmacies.

“This package aims to reduce overdoses, improve treatment retention and promote health care practices across our state,” Hertel said during the meeting.

Key bills include:

• SB 397 and SB 400, sponsored by Hertel, would bar Medicaid and private insurers from requiring prior authorization for medications like buprenorphine and naloxone.
• SB 398, sponsored by Sen. Joseph Bellino (R-Monroe), targets mobile opioid treatment units and would eliminate a state limit on the number of units per provider and rules requiring daily return to base. It would also prohibit conditions like a prior consultation or documented addiction history to access care.
• SB 402, sponsored by Sen. Paul Wojno (D-Warren), would require Medicaid to cover “street medicine” services, including mobile units delivering health and social care. The Senate Fiscal Agency said the vague definition of “street medicine services” could lead to a significant fiscal impact.

Bellino and Wojno’s bills could help rural communities where treatment is out of reach, said Andrew Whitacre of The Pew Charitable Trusts.

“Someone from Marquette seeking services would have to drive two and a half hours one way to the nearest (opioid treatment provider),” Whitacre said. “By allowing providers to bill Medicaid for services delivered outside clinics and mobile treatment facilities, we would extend the ability of providers to reach people who are often at the highest risk of overdose.”

Whitacre also said the Medicaid expansions could prevent future medical incidents and lead to cost savings in the long term.

• Another pair of bills in the package, SB 404 and SB 405, sponsored by Sen. Darrin Camilleri (D-Trenton), would require at least one employee of every K-12 school to be trained to administer naloxone spray (Narcan) if DHHS supplied it to them for free. If that employee used Narcan on a student, their parent or guardian would be contacted and 9-1-1 would be called. Narcan-trained employees would be exempt from liability for damages caused by administration or lack thereof, except in cases of gross misconduct.

Camilleri’s legislation addresses a COVID-era rise in adolescent opioid overdoses, Whitacre said, though DHHS data indicates many of these were intentional overdoses.

The remaining bills were:

• SB 403, sponsored by Sen. Sam Singh (D-East Lansing), which would require pharmacies to stock and dispense medications like buprenorphine without undue delay. Only about half of Michigan pharmacies currently keep such medications on hand, Whitacre said.
• SB 401, sponsored by Sen. Sylvia Santana (D-Detroit), which would mandate doctors co-prescribe Narcan with opioid prescriptions. This could significantly increase costs for Medicaid and local governments covering correctional and public employee health care, according to the Senate Fiscal Agency.
• SB 399, sponsored by Sen. Jeff Irwin (D-Ann Arbor), which would decriminalize possession of drug testing strips, including fentanyl test strips.

Cara Anne Poland, chair of the DHHS Opioid Advisory Commission, said the package aligns with the state’s 2021 overdose prevention goals.

“From my clinical experience, every hoop to jump through and every form to fill out can mean the difference between someone starting treatment or dying from delays,” Poland said.

Supporters of the full package included the Michigan Primary Care Association, though many only liked specific bills.

Face Addiction Now supported all except SB 400, while the Michigan Health & Hospital Association supported only SB 397, 399, 400 ,and 402. The Michigan Academy of Family Physicians and Michigan State Medical Society supported only SBs 398, 399, and 400.

The Michigan Pharmacists Association opposed SB 403, which would require pharmacies to stock certain medications.

The Mackinac Center for Public Policy, a conservative think tank, backed the Republican-sponsored SB 398.

The bills did not receive a vote in committee. Concluding the meeting, Hertel said he will continue working with stakeholders over the next week and potentially over the summer.