Chair Boland and members of the conference committee adopted Conference Report 1 (CR1) for House Bill 4706 during a committee session, approving a package that adjusts funding for fiscal year 2026 and includes a fiscal year 2025 supplemental appropriation.

The committee’s adoption follows a summary presentation by House fiscal staff that said the conference report reduces ongoing general fund departmental funding by about $360 million net, adds approximately $425 million of one-time general fund, and increases the transportation budget by more than $1 billion through statutory changes to state transportation revenues. The supplemental included in the report totals about $2.6 billion gross, including $700 million from the general fund, the presentation said.

The summary presented to the committee said the ongoing departmental savings were achieved through programmatic lapses, program reductions or eliminations, and the reduction of roughly 2,000 unfilled FTE positions. Noted budget changes included a roughly $40 million general fund reduction in the Department of Corrections budget (about half coming from correctional facility lines), a $63 million reduction to constitutional revenue sharing, $70 million from the public safety trust fund for public safety revenue sharing plus $20 million in grants for local prosecutors and firefighters, and an approximately $26 million increase in general fund for Selfridge Air National Guard Base via the Department of Military and Veterans Affairs (DMVA).

Health and human services funding shifts described in the presentation included moving about $9 billion of state health provider tax revenue and associated federal match through pass-through boilerplate authority, authorization of $250 million in federal rural health transformation grants, and a $240 million gross reduction from limiting certain Medicaid utilizations. The Michigan Indigent Defense Commission was listed as receiving a reduction of about $22.3 million in general fund. The report also included $60 million of general fund related to a two-year state psychiatric Medicaid clawback and $100 million for Medicaid health plan costs in the FY25 supplemental portion.

Representative Maddock moved to adopt the conference report; a roll call followed. Chair Boland, Representative Maddock, Representative Farhat, Senator Anthony, Senator McCann and Senator Bumstead voted in favor. The conference report was adopted; committee members who voted in favor were asked to remain to sign the adopted conference report.

The committee did not record additional amendments during the roll call recorded in the transcript excerpt. The conference report and its supplemental provisions will be reflected in the Legislature’s final enrollment and signature process required by legislative rules.