State lawmakers meet late into the night to pass fiscal 2025 budget

LANSING, Mich. (WZMQ) – State lawmakers are still in session, waiting for the final version of next fiscal year’s budget bills to be approved. Lawmakers have been working since 10 a.m. to negotiate the latest changes and reach consensus on budget bills for fiscal year 2025, negotiating their funding goals and balancing the numbers they hope to put on the governor’s desk before the end of the week.

Part of the legislation that would make changes to the teachers’ pension fund slowed work in the state House of Representatives this week.

Craig Thiel, research director at the Citizens Research Council of Michigan, said one of the most difficult parts of this year’s budget process was a companion bill that would make changes to the public school employees’ retirement system of Michigan or MPSERS, and which would free up Michigan public school employees. up $670 million.

“There’s a lot of moving parts here and it really can’t move until all those pieces are sort of settled. If the bill is blocked for any reason, it could block the budget if it is based on this legislation.” » said Thiel. “The Legislature has a slightly different approach to programming these dollars and that’s the problem right now as far as putting together a budget deal.”

The governor’s initial proposed bill reduced the state’s contribution percentage to the fund and used the excess money to cover the costs of his Pre-K for All program. Both chambers passed their own versions, which differ from the governor’s plans. Just yesterday, the House passed a decision along party lines that would reduce school districts’ contributions while returning that $670 million to school systems.

The bills have received support from state education groups, but as they are finalized, lawmakers continue to push for changes. State Rep. Greg Markkanen (R-Hancock) said he was concerned that tapping the MPSERS fund could delay the state’s pension debt repayment schedule.

“Retired teachers in our district and most of Michigan are against this,” Markkanen said. “It’s just going to prolong that payment and that’s not the right thing to do.” This is not good government.

Discussions among lawmakers are still ongoing and they plan to continue work on the budget tonight until they can finalize the legislation and adjourn for the summer.