MLC Insider Intelligence: January 16, 2026
Michigan Legislative Consultants
Weekly Recap: The House held session on Wednesday and Thursday, while the Senate met on Wednesday. The biannual Consensus Revenue Estimating Conference was held.
State of the State Address Date Set: Governor Gretchen Whitmer announced today that she will deliver her final State of the State Address on the evening of Wednesday, February 25th, at 7:00pm in the Michigan House Chambers in front of a joint session of the Michigan House of Representatives and Michigan Senate.
During the 2026 address, the Governor will lay out plans to continue building on the accomplishments of her seven years in office, and her proposals will focus on creating jobs and lowering costs, record investments in education and literacy, building housing, and more.
Revenue Estimating Conference Held: The directors of the House and Senate Fiscal Agencies, State Treasurer Rachael Eubanks, and State Budget Director Jen Flood came together to reach a consensus on projected state revenue for the upcoming fiscal year.
Economic Outlook: In FY 2026, state revenues dropped $779.4 million and are projected to drop $1.1 billion in FY 2027, which begins October 1st. Broken down, the General Fund decreased by $980.5 million for the current fiscal year, while the School Aid Fund is expected to increase by $201.1 million. For FY 2027, the General Fund decreased by $1.27 billion, while the School Aid Fund is forecasted to increase by $169.7 million.
Next Steps: The House, Senate, and administration will use the agreed-upon numbers as they begin drafting the state budget for the upcoming 2026-2027 Fiscal Year. The next step in the process occurs when Governor Gretchen Whitmer presents her budget recommendations to the legislature next month, followed by the Appropriations Subcommittees beginning to meet on the budgets under their purview.
2026 Legislative Session Officially Underway: As outlined in the Michigan Constitution, the 103rd Legislature began its work for the year by holding session on the second Wednesday in January. Since last year was not an election year, the legislature will continue business as usual from the prior year, with few, if any, noticeable changes. Legislation that was working its way through the process continues, without needing to be reintroduced. However, at the end of this year, all legislation that wasn’t passed by both chambers will need to be reintroduced in 2027.
Looking Ahead: The House will mostly follow its typical Tuesday-Thursday schedule through June, except for a three-week break during the end of March and beginning of April. Session days will be more sporadic from July through October, given that this is an election year. The Senate has released its session calendar for the first half of the year. Similar to the House, they’re scheduled to mostly follow the typical Tuesday-Thursday schedule. The chamber will take a two-week break at the end of March and the beginning of April. The budget process for the 2026-2027 Fiscal Year will continue with the presentation of the executive budget recommendations in February. After that, House and Senate Appropriation Subcommittees will begin meeting to work on the budgets within their respective purviews.
Midterm Elections: This is a big election year in Michigan. All 110 House seats and 38 Senate seats will be up for election. Additionally, the offices of governor, attorney general, and secretary of state are up for election, and without incumbents in the race. While the Democratic Party has controlled the top elected positions in the state, the three key offices tend to flip between the two major parties. In the legislature, the Republicans will work hard to keep their majority in the House and flip the Senate back to their control. While the Democrats are campaigning to flip the House and expand their majority in the Senate. After the election, the House and Senate will hold leadership elections to elect a Speaker of the House, Senate Majority Leader, and other key positions for the 2027-2028 term.
House Passes School Cell Phone Ban: Cell phones would be banned from use in schools statewide under legislation passed by the House this week. This issue has been worked on in both chambers, by both parties, over the past few years, but has yet to make it to the governor’s desk. Today’s progress came after months of negotiations on language within the proposal.
House Bill 4141: Introduced by Senator Mark Tisdel (R-Rochester Hills), the ban would apply to all K-12 public school students. While the legislation bans students’ use of their phones during instructional time, they could still use them during non-instructional time between classes and during lunch. The legislation allows for a few exemptions, including old-school flip phones and medical exceptions. Additionally, schools could implement stricter cellphone-use policies if they choose. The bill will be sent to the Senate for consideration.
Senate Bill 495: Prior to passage, HB 4141 was tie-barred to SB 495, introduced by Senator Dayna Polehanki (D-Livonia). Her legislation requires schools to develop a protocol for the use of cell phones by students during emergencies. The legislation is before the Senate Education Committee, chaired by Senator Polehanki.
December Revenue Declines: Last month, major taxes and net lottery revenue declined by 6.5% from the prior year, totaling $2.9 billion. Collections dedicated to the General Fund (GF) came in $273.9 million below projections, while those dedicated to the School Aid Fund (SAF) were $57.2 million below estimates. On a year-to-date basis, GF collections were $178.1 million below estimates, and SAF collections were $13 million less than prior projections.
Taxes: Net income tax revenue totaled $1.5 billion, a 6.7% increase from the prior year, as did withholding payments, which increased by 3.9%. Sales tax receipts declined 1.8% from the prior year, totaling $883.6 million for the month. Conversely, sales tax collections from motor vehicle sales increase 1.3% year-over-year, totaling $106.5 million, and use tax collections increased 3.5%, totaling $226.5 million.
Importance: The House, Senate, and administration will utilize these figures as they begin crafting the state budget for the next fiscal year. The latest data offers important insights into the state’s economic outlook and the resources available to fund budget priorities.
Spotlight on Senator Sam Singh: Senator Singh (D-East Lansing) is serving his first term in the Senate, where he has the distinction of being the first Indian American elected to the Michigan Senate. Additionally, he was elected to leadership by his peers, serving as the Majority Floor Leader, responsible for scheduling and managing the day-to-day operations of legislative movement during session. He previously served three terms in the Michigan House of Representatives. Previous public service includes serving as East Lansing Mayor and as a member of the East Lansing City Council. In addition to public office, he was president and CEO of the Michigan Nonprofit Association, a senior consultant for the New Economy Initiative, and CEO of Public Policy Associates.
District: He represents the 28th Senate District in mid-Michigan. The district includes portions of Ingham, Clinton, and Shiawassee counties. The district includes portions of Lansing, East Lansing, DeWitt, and Williamston.
Committees: Senator Singh serves as chair of the Oversight Committee and majority vice chair of the following committees: Energy and Environment, Government Operations, and the Department of Environment, Great Lakes, and Energy Appropriations Subcommittee. He’s also a member of the following committees: Natural Resources and Agriculture, Regulatory Affairs, the Agriculture and Natural Resources Appropriations Subcommittee, and the Universities and Community Colleges Appropriations Subcommittees.
We asked Senator Singh a few questions to learn more about him:
What’s your favorite travel destination outside of Michigan?
A – Visiting friends in Chicago.
What’s your favorite hobby other than politics?
A – We love to travel and are always looking to explore new cities and countries.
What did you want to be when you were a kid?
A – An astronaut.
What’s your favorite game to play or sport to watch and/or play?
A – I love to watch college basketball, especially MSU. Go Green!
Next Week: In observance of Dr. Martin Luther King Jr. Day, MLC will be closed on Monday, January 19. State offices are also closed. The House and Senate are scheduled to hold session on Wednesday and Thursday.