LANSING — The state budget process is underway in Lansing, and lawmakers are beginning discussions around a projected shortfall.
State Representative Nancy Jenkins-Arno provided an update during her monthly legislative conversation, outlining concerns tied to the upcoming 2027 fiscal year budget.
Jenkins-Arno said lawmakers were informed in January that the state is expected to begin the next budget cycle with an $800 million deficit. She said that projected shortfall must be taken into account as lawmakers draft the new spending plan.
She explained that the deficit will play a central role in shaping negotiations between the Michigan House of Representatives, the Michigan Senate, and the governor’s office in the months ahead.
Jenkins-Arno said budget discussions are just beginning, and lawmakers will now move through the formal appropriations process before a final version is negotiated.
The 2027 budget must be finalized before the start of the next fiscal year.