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Governor, legislative leaders announce agreement in state budget battle

Governor, legislative leaders announce agreement in state budget battle
Michigan State Capitol
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LANSING, Mich. (WXYZ) — Gov. Gretchen Whitmer and the leaders of the state House and Senate say they have reached an agreement to pass the School Aid Budget and state budget before Oct. 1. However, an overall deal has not been reached.

The announcement came in statements from Whitmer, Senate Majority Leader Winnie Brinks and Speaker of the House Matt Hall.

Watch Brett Kast's video report below:

Governor, legislative leaders announce agreement in state budget battle

The press release says the "agreement ensures top priorities for both Democrats and Republicans are included in the bipartisan budget, which will lower Michiganders’ costs, reduce waste and increase government efficiency, and help Michiganders thrive."

It also says the agreement includes $2 billion for road funding.

However, the agreement is also called a framework by Brinks, with Hall indicating in his statement that more work needs to be done.

“Nobody wants a government shutdown. A government shutdown means less state police troopers on the road, it means state parks closing down, it means schools don't have enough money to pay their teachers,” Rep. Alabas Farhat, D-Dearborn, said.

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Democrats like Farhat say avoiding a shutdown was key to both sides and the deal is bipartisan, avoiding costly cuts.

“We came together in good faith to get a deal where nobody loses their health care, nobody has to worry about whether police are going to be patrolling their streets and we’re going to finally fix our roads once and for all,” Farhat said.

The agreement was made after months of debate and uncertainty in Lansing.

“We’re finally hopeful we’ll be able to fix our local roads, which has been a top priority for House Republicans and Governor Whitmer all year,” Hall said.

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Hall applauded the bipartisan work, saying the deal includes spending and tax cuts but also raises tax revenues on marijuana sales.

“We were able to secure no tax on tips, overtime and social security for Michigan workers in the state budget, so this will amplify the effects of the working family tax cut that President Trump passed,” Hall said.

While this deal is still a framework, both sides believe a final vote will pass before the Oct. 1 deadline.

“I’m confident that the partners that are at the table so far have been talking about really good ideas that if they are fully baked and ready to go, we can avoid a government shutdown,” Farhat said.

Hall says the final budget total is still being worked out, but he believes it will be lower than last year’s $81.5 billion budget. Lawmakers are expected to vote next week.

“Now, we've given ourselves a few days to go out and figure out all the final details and try to get this thing up for a vote Tuesday night, so we can keep the government open,” Hall said.

Whitmer's statement says:

Today’s agreement in the legislature puts us on a path to lower costs, fix the damn roads, and pass a balanced, bipartisan budget by October 1. I am grateful to Majority Leader Brinks, Speaker Hall, and legislators on both sides of the aisle for working hard to move this budget forward. In Michigan, we’ve proven again and again that we can work together to get things done by staying focused on the kitchen-table issues that make a real difference in people’s lives. Amid so much national economic uncertainty, I am proud that we are taking action to lower costs, cut taxes for seniors and working families, create jobs, fund schools, fix roads, keep people safe and healthy, and so much more.

Hall's statement says:

We have an opportunity here to reform Michigan’s broken process and get much better value for the taxpayers. There is still work to be done, but it is an important step that all of us are agreeing to implement meaningful tax relief for Michigan workers and seniors, bring transparency and accountability to the earmark process for the first time, and eliminate ghost employees. Government has grown far too much in recent years, and we need to trim the waste, fraud and abuse in Lansing. That’s how we can afford the real priorities of Michigan families – like education, public safety, and fixing our local roads and bridges. This agreement puts us in position to do just that.

Brinks statement says:

The people of Michigan deserve a budget that makes their daily lives better — a budget that boosts education, improves roads, and protects healthcare. The framework we have agreed to reflects the priorities of Michiganders from every region, and while no budget will be a perfect product, I am confident that the final result we vote on next week will have features that benefit every resident.