Michigan has a long history of settling the budget by July 1, whether under a Democratic or Republican governor. In fact, the legislative majority passed a law requiring a final budget by July 1.
The state’s fiscal year starts October 1, so why is July 1 so important?
The fiscal year for local governments and school districts starts July 1. If they have to wait until October, they can be left guessing how much money they should be expecting from the state. These entities are looking to recover from the pandemic and move toward a new normal; now more than ever, they need to know their operational budgets are set, not more uncertainty.