The Whitmer administration and Michigan House Republicans have agreed to put a legal fight over GOP-ordered budget cuts on hold because a settlement may be in sight.
In a filing last week with the Michigan Court of Claims, the House and the Michigan Department of Technology, Management and Budget jointly informed the judge that “the parties have engaged in preliminary but fruitful discussions about the possibility of resolving this dispute.”
Last year, Republicans on the state House Appropriations Committee used a unique authority to block $645 million in budget items that were already approved and signed into law. Michigan Attorney General Dana Nessel, a Democrat, held in a formal opinion that the law used by the GOP is unconstitutional because it violates the separation of powers clause of the state constitution.
Republicans are challenging that opinion and filed a lawsuit to stop the spending. Court of Claims Judge Michael Gadola ordered the State Budget Office to put a halt to spending more funds while the case is sorted out.
At this point, it appears about $370 million in community grants remains at stake because it is either unspent or not legally committed.
The remaining funds are for projects in districts represented by both Democrats and Republicans, which may be a motivating factor. This is also playing out as the governor and the Legislature are working on the final budget of her administration.
“We’re hoping to get back to some standard operating procedure,” said a Whitmer administration official familiar with the process.
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