Conference committee adopts conference report for House Bill 4706, advancing budget changes

A Michigan legislative conference committee voted unanimously to adopt conference report CR1 for House Bill 4706, a package that lays out fiscal year 2026 departmental funding and a fiscal year 2025 supplemental, the committee chair announced following the vote.

The conference report, summarized by a House Fiscal Agency staff member identified in the record as Kevin, would reduce ongoing general-fund support for departmental budgets by about $360,000,000 net while adding roughly $425,000,000 in one-time general-fund appropriations. The transportation budget also would increase by more than $1,000,000,000 under changes to state transportation revenues, Kevin said.

The summary from the House Fiscal Agency said the ongoing departmental savings are driven largely by programmatic lapses, program eliminations or reductions, and the elimination of about 2,000 unfilled full-time-equivalent positions. Larger line items called out in the agency summary included a roughly $40,000,000 general-fund programmatic reduction in the Department of Corrections (about half from corrections facility lines), a $50,000,000 one-time general-fund appropriation for EGLE-managed local water infrastructure programming, and a reduction of constitutional revenue sharing by $63,000,000.

Health and human services changes in the conference summary include a reported move of $9,000,000,000 in state health provider tax revenue and associated federal match into a pass-through authorization; authorization of $250,000,000 in federal rural health transformation grants; and an item described as a $240,000,000 gross reduction tied to limiting certain GOP-related utilization within Medicaid, according to the agency summary. The conference summary also listed $60,000,000 in general fund for storm cleanup in northern Michigan, $100,000,000 for Medicaid health plan costs in the FY2025 supplemental, and a $60,000,000 general-fund inclusion for a two-year psychiatric Medicaid “clawback” cost noted in the supplemental portion.

The summary noted other departmental adjustments including a $22,300,000 reduction for the Michigan Indigent Defense Commission, a $26,000,000 general-fund increase tied to Selfridge Air National Guard Base, and $40,000,000 in general-fund reductions within State Police operations and training lines. The transportation revenue changes referenced in the summary appear in items 8–10 of the transportation portion of the fiscal summary, Kevin said; the committee packet should be available on the House Fiscal Agency website, the staff summary noted.

Representative Maddock moved to adopt the conference report. The roll call recorded the following votes in favor: Chair Boland (yes); Representative Maddock (yes); Representative Farhat (yes); Senator Sarah Anthony (yes); Senator McCann (yes); and Senator Bumstead (yes). The committee chair stated the committee had sufficient votes and directed members who voted in favor to remain and sign the adopted conference report.

The committee record contains the House Fiscal Agency summary and the formal vote adopting CR1 for House Bill 4706. The conference report combines FY2026 departmental line-item decisions with a FY2025 supplemental that the summary described as $2,600,000,000 gross and $700,000,000 general fund, largely reflecting administration supplemental requests adjusted for the May consensus process.

No further discussion or amendments were recorded in the committee transcript following the staff summary prior to the adoption vote. The conference committee then recessed after the vote to allow members to sign the adopted report.

The conference report and the fiscal-agency summary cited here are the primary sources of detail in the committee record; the committee directed no additional action in the transcript beyond adopting and instructing members to sign the adopted conference report.