MLC Insider Intelligence: May 15, 2026
Michigan Legislative Consultants
Weekly Recap: The House and Senate held their typical Tuesday – Thursday session and committee schedule.
Budget Update: The House and Senate have each passed their versions of the state budget. Several areas of difference are continuing to be negotiated on between the chambers and the executive office.
Revenue Estimating Conference Held: Today, 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, revising the estimates from January’s consensus numbers. In FY 2026, general fund-general purpose (GF-GP) revenue was revised up by roughly $227 million, and for FY27 it was increased by $94.2 million. School Aid Fund (SAF) dedicated revenue was also revised up by $79.4 million for the current fiscal year and $79.6 million for the 2027 Fiscal Year. The House, Senate, and administration will use the agreed-upon numbers to continue to work on the state budget for the upcoming 2026-2027 Fiscal Year.
National: The war in Iran is impacting the economy, driving up the cost of oil, and weakening consumer and small business sentiment. Due to this, and other geopolitical tensions, overall economic data remains difficult to predict. Data over the next few months will be critical in determining the impact of recent hikes in oil prices. Mortgage rates will likely remain above 6% through 2027, before dipping slightly below 6% by the end of 2028. Lastly, the federal deficit-to-GDP ratio is projected to stay around 6%.
Michigan: The national economy will have a greater impact on the state’s economy than the war in Iran. For example, federal cuts to Medicaid are expected to weigh on the healthcare sector toward the end of the forecast in 2028. Additional changes at the federal level to trade and fiscal policies remain risks to the outlook. Real disposable income should return to pre-pandemic trends, averaging 0.9% per year, while the unemployment rate is holding stable and is projected to hover near 5% through 2028.
House Approves Changes to Energy Policy: This week, the Michigan House of Representatives passed legislation reforming Michigan’s energy system. Most notably, it repeals the green energy mandates signed into law in 2023.
Key Points: The legislation repeals a 2023 law requiring electric providers to reach a 100% clean energy portfolio by 2040. Among other requirements, it also repeals sections of the law requiring the state to assess the energy conservation of its buildings, implement conservation policies, and reduce energy use during peak summer-use seasons. It requires the Michigan Public Service Commission (MPSC) to determine if an IRP prioritizes reliability and affordability for customers and removes the requirement for the Department of Environment, Great Lakes, and Energy to evaluate environmental and public health factors when issuing an advisory opinion.
Next Steps: The legislation will be sent to the Senate for consideration, but we don’t expect it to move through the chamber in its current form.
Committee Hears Testimony on AI Legislation: The House Communications and Technology Committee heard testimony on a bill creating a board to oversee the use of artificial intelligence (AI) by state agencies.
Board: The legislation creates an Artificial Intelligence Governor Board, with members appointed by the governor. Members must include one person with expertise in AI or data science, one person with expertise in ethics, civil rights, or privacy, and one person representing the private sector. The board would be tasked with evaluating generative AI use by state agencies and providing recommendations on the design and implementation of an AI pilot program.
Pilot Program: The legislation also creates an AI pilot program, allowing approved state employees to work with AI tools in a controlled environment. The proposal also establishes safeguards to protect sensitive data.
Spotlight On Senator Kevin Daley: Senator Daley (R-Lum) is serving his second term in the Michigan Senate and serves as minority caucus chair. Prior to that, he served two terms in the Michigan House of Representatives.
District: He represents the 26th Michigan Senate District, which includes portions of Lapeer, Tuscola, Genesee, and Saginaw Counties.
Committees:
Natural Resources and Agriculture, minority vice chair
Finance, Insurance, and Consumer Protection
Local Government
We asked Senator Daley a few questions to learn more about him:
What’s your favorite travel destination outside of Michigan?
A – I would have to say St Augustine, FL, our daughter and son-in-law reside there with five of our eight grandchildren.
What’s your favorite hobby other than politics?
A – I guess it would be what I have always considered my real job, the farm. Not only farming but also maintaining the buildings and properties involved in the farm.
What did you want to be when you were a kid?
A – I never remember wanting to do anything but farm! I worked alongside my mentor and friend, my dad, until he passed when I was 42 yrs old. I know I never dreamed at that time that I would ever be a State Senator!
What’s your favorite game to play or sport to watch and/or play?
A – I have never been a sports guy. I don’t really watch sports unless it’s a game with my grandchildren.
Next Week: The House and Senate are scheduled to hold their typical Tuesday – Thursday session schedule.
Leading up to the August 4 primary, we are highlighting key races shaped by voter demographics in the district. Candidate websites and professional backgrounds are listed when available.
2nd House District Primary Election Overview: Representative Tullio Liberati is currently serving his second term, and while eligible for reelection, has made the decision not to seek another term, leaving this seat open. The district has a 59% Democratic base, making the Democratic primary the race to watch in this district. Frank Liberati previously served three terms in the Michigan House of Representatives but was term-limited from running again. Due to the changes to term limit laws, he is now eligible to serve additional terms in the legislature and entered the primary race. Frank is also the brother of current Representative Tullio Liberati.
District Overview: The district includes Allen Park, Lincoln Park, and Ecorse.
Democratic Candidates:
Frank Liberati – Former State Representative and member of the Allen Park School Board, small business owner.
Gary Schlack – Veteran, worked in logistics, Allen Park City Councilman.
Joanna Whaley – Clinical spiritual care provider in local hospitals.
4th House District Primary Election Overview: Representative Karen Whitsett is serving her fourth term in the Michigan House, and while eligible for reelection, has chosen not to seek a fifth term, leaving this seat open. The seat has an overwhelming Democratic base of 97%. The winner of the Democratic primary is all but assured to win in November.
District Overview: The district includes a portion of the City of Detroit.
Democratic Candidates:
Krystal Larsosa – Nonprofit founder, philanthropist, and entrepreneur. Former director of community outreach for Wayne County Clerk Cathy Garrett.
Anthony Stafford McDonald
Tyus Monroe – Detroit Police officer, associate minister.
Roslyn Ogburn – Community and housing organizer, co-founder of NexusDetroit.
Regina Ross
5th House District Primary Election Overview: Representative Regina Weiss is serving her third term in the House, and despite being eligible to run for reelection, she has made the decision to leave the Michigan House, creating an open seat. The district has a strong 93% Democratic base, making the primary election in August key to who will hold this seat next term.
District Overview: The district includes Northwest Detroit, Oak Park, and Royal Oak Township.
Democratic Candidates:
Crystal Bailey – Small business owner, former vice president of the Oak Park School Board of Education.
Candace Calloway – Works in construction, previously worked as an academic interventionist with the Detroit Public Schools Community District.
Soummer Moore-Crawford – Wayne County Women’s Commission member, former director of constituent services for a state representative, housing justice advocate.
6th House District Primary Election Overview: Representative Natalie Price is forgoing a run for reelection in the House to run for the Michigan Senate. This open seat has a 63.7% Democratic base, making the primary race key to who will represent it next term. Candidate Melanie Macey received the endorsement of Representative Price, as well as several local elected officials in the district.
District Overview: The district includes Berkley, Birmingham, Bloomfield Township, Huntington Woods, Royal Oak, and Southfield.
Democratic Candidates:
Charlie Gandy-Thompson
David Lauer – Community organizer, nonprofit leadership, and finance.
Melanie Macey – Royal Oak City Commissioner, public interest attorney.