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Michigan's State Budget
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What role does the Governor and the Executive Branch play in the development of Michigan's state budget?
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Answer:
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The Michigan Constitution requires the Governor to propose an Executive Budget for state activities on an annual basis. By law, the Executive Budget must be submitted to the Legislature within thirty days after the Legislature convenes in regular session on the second Wednesday in January.
However, when a newly elected Governor is inaugurated into office, sixty days are allowed to prepare the proposal. The Executive Budget is more than a statutory requirement. It represents a statement of priorities for the policy activities of state government. Therefore, a detailed budget preparation process is necessary to provide information that will help the Governor and the Legislature allocate state resources most effectively.
The development of each new fiscal year budget begins in August approximately thirteen to fourteen months prior to the beginning of the new fiscal year. The process starts with State Budget Office issuing program policy guidelines to the departments. The guidelines and directions include assumptions regarding revenue changes, Federal funds information, and economic adjustments. The guidelines also include instructions for the preparation of several different levels of expenditures for each department. By October, departments submit their budget proposals to the State Budget Office. The State Budget Director then makes preliminary budget recommendations to the Governor for his consideration.
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