At the end of August, the Michigan House approved their version of the state budget plan that reduces funding across most state departments and agencies. The action comes well past the July 1 statutory deadline for having a budget signed into law. The House budget plan totals $54.6 billion, with $12.09 billion from the state’s General Fund. While most departments would experience cuts, the Executive Office, Legislature, Auditor General, Military and Veterans Affairs, and Transportation would avoid reductions. Some of the most significant changes are: a 50 percent increase in road funding compared to last year, with an additional $3.1 billion; elimination of over 4,000 unfilled state positions; funding adjustments to Medicaid, public health, and human services; and reductions to agencies including the Department of Attorney General, Department of Environment, Great Lakes and Energy, and the Department of Labor and Economic Development. When combined with the previously advanced education budgets, the House plan totals $79 billion, compared to the Senate’s budget plan of $84.6 billion, and Gov. Gretchen Whitmer’s executive recommendation of $83.5 billion. House and Senate leaders as well as the governor’s office are working to deliver a final plan before Oct. 1, the start of the new fiscal year.
As budget season intensifies, questions arise about a possible state government shutdown. In Michigan, shutdowns are rare and usually short-lived. Budget disputes caused the state’s most notable shutdowns in 2007 and 2009, but they only lasted a matter of hours, with agreements reached shortly after the Oct. 1 start of the new fiscal year.
The State Board of Education voted to offer the superintendent position to Dearborn Public Schools leader Glenn Maleyko.
Michigan is beginning to see population growth again, led by young professionals and recent graduates choosing to stay or move here. From 2020 to 2024, population increased by 67,000 residents, reversing a lengthy trend of losses in major metro areas like Detroit and Flint.
Gov. Whitmer has called a special election to fill the vacant 35th Senate District seat of former Sen. Kristen McDonald Rivet (D-Bay City) who joined Congress Jan. 3. It will be well over a year since the vacancy began before the primary on Feb. 3, 2026, with the general election set for May 5 to coincide with local elections. Candidates have until Sept. 30 to file. The announcement was made 238 days after the vacancy began, which is the longest gap on record for a Michigan legislative special election. With 487 days between the seat opening and the general election, the vacancy will also be the longest since the state adopted a full-time legislature in the 1960s. Typically, past governors have acted within weeks, with the prior vacancy record at 108 days. Of note, the Senate has a slim Democratic majority at 19 to 18 Republicans. If a Republican wins the seat, the 19-19 split could hinder Democrats’ ability to advance legislation.
Please click here for the complete September 2025 Karoub Report.
