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Legislative Update
Legislature Gavels Back in for New Year
The Michigan State House and Senate gaveled back in for the second year of the 2025-2026 legislative session on Wednesday, January 14. The House and Senate have largely returned to a normal legislative schedule, conducting committee hearings and moving bills on the floor.
CREC Reveals Lower Revenues for Upcoming Fiscal Year
On January 16, state economic leaders gathered for Michigan’s January Consensus Revenue Estimating Conference (CREC). The CREC takes place in January and May each year to discuss independent economic and revenue forecasts that inform decisions about the state budget.
The CREC's overall assessment is that state revenues are down by $779.4 million for the current fiscal year (FY 26) relative to the May 2025 consensus estimate. For the upcoming FY 2026-27, revenues were revised $1.1 billion below the May 2025 consensus estimate. These decreases are the result of recent tax policy changes, including Michigan’s gas tax changes, federal tax policy changes, and slower economic activity.
The School Aid Fund (SAF) is expected to be stable, while the GF/GP is a little more sluggish. However, most of this is expected and not a reflection of the broader economy. The road funding deal passed last fall, the removal of taxes on tips and overtime pay, and other tax changes accounted for the bulk of the decrease.
You can access the presentations and materials from the CREC here
Judge Freezes Work Project Spending
Prior to the year's adjournment in December, policy movement came to a halt after the Republican-led House Appropriations Committee voted to exercise its authority under state statute to disapprove $645 million in work project spending. A work project is a one-time, non-recurring item that allows departments to carry forward unspent money into subsequent fiscal years.
On January 7, Attorney General Dana Nessel issued a legal opinion declaring the portion of the state law that allowed the House Appropriations Committee to disapprove of proposed work projects to be unconstitutional. In response to the AG’s opinion, House Republicans filed a lawsuit against the state in the Michigan Court of Claims to prevent departments from issuing the money. Judge Michael Gadola granted a preliminary injunction, blocking the state from spending work project funds. It has been hinted that the House Republicans are likely to prevail in this case, meaning the money will need to be reappropriated by the legislature.
State of the State Scheduled
Governor Gretchen Whitmer announced she will deliver the State of the State address on February 25 at 7 p.m. This can be viewed on local TV channels and online at: michigan.gov/StateOfTheState.
Regulatory Update
Michigan Licenses First Dental Therapist
On January 8, the Michigan Department of Health and Human Services (MDHHS) issued a press release highlighting that the state’s first dental therapist has been licensed and is now practicing in the Upper Peninsula. MDHHS is also assisting with the development of a dental therapy training program to increase the number of dental therapists in the state and expand access to dental care for all Michiganders.
Policy Committee Update
The MOHC Policy Committee has finalized our policy priorities document for 2026. At this time, we are also finalizing our Fiscal Year 2026–2027 budget document, which will include our members' oral health related asks for the upcoming fiscal year.
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