LANSING – Budget discussions between Michigan House Speaker Andy Dillon (D-Redford Twp.) and Senate Majority Leader Mike Bishop (R-Rochester) have seen significant progress, sources indicated, and a final agreement between the two on appropriations target levels could be completed by next week.
“They are leaps and bounds beyond what most people think,” one source familiar with the discussions said.
The two are scheduled to hold a day-long meeting on Friday to go over budget figures.
The two leaders have already agreed to some budget targets, and are also discussing potential government reforms.
But there have been no discussions yet on potential tax increases, sources said, as the two are trying to establish budget targets and reforms to establish “the real hole” in the budget.
In a radio interview on Wednesday, Bishop said a tax increase was “inevitable,” but that it would be laid at the feet of Governor Jennifer Granholm.
The administration has not been part of the discussions, sources said, and the two leaders have also not always kept the administration informed on the progress.
Based on the discussions, the leaders are still trying to decide how exactly to proceed on passing budgets when the Legislature returns next week. The Senate, for example, is primed to pass all or most the Senate-originated budget bills on Wednesday and it is likely simply to pass the bills as reported from the Appropriations Committee. However, sources also indicated that decision is not final.
The House is preparing to run several budgets when it reconvenes next week. One source confirmed that while the budgets, which so far have been higher than the governor’s recommendation, will reflect some of the “progress” that has been made between the two leaders, Democrats still will want to stake out what their priorities are for the fiscal year.
This source classified the budget talks as progress but wouldn’t say that leadership is close on a deal for target revenues.
One of the major reasons for this is that while Dillon is working with Bishop, he won’t be able to sign on the dotted line until those negotiations are shared members of his leadership team, including House Appropriations Chair Rep. George Cushingberry Jr. (D-Detroit), who joined other legislators in traveling to Israel this week.
Next week is expected to be a busy week both in public and behind closed doors as those discussions occur with Democratic leadership who will all be back in town.
And whether the budget bills that will be passed reflect agreements made between Bishop and Dillon or not, several sources said that it is critical at this stage to engage the mechanical processes in passing the budget. If nothing else, budget bills must pass to comply with the constitutional provision on each bill residing five days in the other house before the second house can vote on it.
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