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Conference committee adopts CR1 for House Bill 4706, advancing FY2026 funding and a FY2025 supplemental
Summary
A legislative conference committee voted unanimously to adopt Conference Report 1 on House Bill 4706, sending a FY2026 funding package and a FY2025 supplemental (including disaster cleanup and Medicaid-related items) forward; the package shifts several large revenue and one-time funding items, according to the House fiscal summary.
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The conference committee voted to adopt Conference Report 1 (CR1) for House Bill 4706, advancing a funding package that the House fiscal presenter said covers fiscal year 2026 departmental budgets and a fiscal year 2025 supplemental.
Kevin, a House fiscal agency staffer, told the committee that HB 4706 “includes fiscal year 26 funding for state departments and includes supplemental appropriations for fiscal year 25,” and described major line-item changes that would accompany the report. The presenter said the package reduces ongoing general-fund departmental budgets by about $360 million net, adds roughly $425 million in one-time general-fund spending and would increase the transportation budget by more than $1 billion tied to statutory transportation revenue changes.
The presenter walked the committee through several larger adjustments: about $40 million in general-fund programmatic reductions in the Department of Corrections (roughly half from correctional facility lines); a $50 million one-time allocation for local water infrastructure administered through EGLE (Environment, Great Lakes, and Energy); a $63 million reduction to constitutional revenue sharing; a $70 million allocation to the public safety trust fund plus an additional $20 million in grants for local prosecutors and firefighters; and a reported movement of approximately $9 billion in state health-provider tax revenue into a pass-through authorization tied to federal match. The report also authorizes $250 million in federal rural health transformation grants and identifies other Medicaid-related adjustments the presenter described in the fiscal summary.
Other notable changes cited in the summary included a $26 million increase to the Department of Military and Veterans Affairs for Selfridge Air National Guard Base, a $40 million reduction in state police general-fund operations and several department-level program reductions and lapses. The presenter said the FY2025 supplemental totals about $2.6 billion gross and $700 million in general-fund spending, and includes funding for Northern Michigan ice-storm cleanup and several Medicaid-related items itemized in the fiscal summaries.
Representative Maddock moved to adopt CR1 for HB 4706. The clerk called the roll; votes recorded in favor were Chair Boland, Representative Maddock, Representative Farhat, Senator Anthony, Senator McCann and the senator listed in the record as Bumpstead (the name appears elsewhere in the transcript as Bumstead). The clerk reported the motion had sufficient votes and the conference report was adopted. Chair Boland asked members who voted in favor to remain to sign the adopted conference report.
The committee then went at ease, and members exchanged brief congratulations as staff prepared the signature copies. The adoption sends the reconciled funding package described in CR1 forward according to the legislative process.
