Michigan school districts face tough choices as their fiscal years began Tuesday while the Legislature remains deadlocked on the state K-12 budget.

The Republican-controlled House and the Senate, which is controlled by Democrats, adjourned and left town earlier this week after it became clear they would not reach a deal by the July 1 deadline set in state law. There are big differences between the chambers’ differing versions and it appears possible if not likely the budget will hang fire into the fall.

“We’ve seen school districts passing budgets that make cuts, that pink slip employees, that dip heavily into their reserve funds that they aren’t supposed to be touching,” said Robert McCann, executive director of the K-12 Alliance of Michigan.

McCann said this outcome was foreseeable as the budget process lagged months behind the typical process and missed key benchmarks, including getting initial versions adopted in the spring so they could move to bicameral, bipartisan conference committees to hammer out final versions. Those conference committee versions would have to be approved without amendments in up-or-down votes of the House and Senate before they would go to Gov. Gretchen Whitmer for her signature.

“And instead we were left with this sort of chaos situation of trying to scramble something together before the deadline and, ultimately, there wasn’t the will or the way to make that happen and it’s really because of months and months of inaction,” said McCann. “This failure has been happening over the past five, six months now of delays and inaction and seemingly not caring about the urgency of getting a K-12 budget done on time.”

There are no consequences to lawmakers for missing the July deadline, which was enacted by the Legislature after a 2007 deadlock between then Gov. Jennifer Granholm (D) and a politically divided Legislature led to a brief partial government shutdown.

The state’s fiscal year begins in three months on Oct. 1, when the Michigan Constitution requires a balanced budget to be signed.

Michigan lawmakers left the state capitol Tuesday night again without passing a new state budget for K-12 schools.

Tuesday was the statutory deadline for passing an entire state budget. But lawmakers likely won’t be back for a couple of weeks.

That means school districts have started a new fiscal year without knowing how much money they’ll be getting from the state. 

The Democratic-controlled Senate adjourned first, throwing in the towel in the late afternoon. Leadership said the Senate and the Republican-led House were still worlds apart in their negotiations.

Speaking to reporters, Senate Majority Leader Winnie Brinks (D-Grand Rapids) said she’d like schools to have more reassurance when it comes to their funding.

“I think we’re in a position where, when we can give them more certainty, sooner is better, and we will do everything we can to get there,” Brinks said before adding, “There’s not much more that they can learn this week. I think we’re continuing to hear from school leaders in our community that the want a better budget — not a fast budget — so that is our guiding principle at this point.”

There are several differences not only between each chamber’s proposals, but how they’re approaching the talks themselves.

The Senate has been adamant about wanting a full budget passed at the same time. House leadership has shut down that idea, instead arguing that a schools budget and a separate roads funding plan that could have implications for school money should go first.

Beyond that, the House schools proposal would raise the base-level funding for schools but cancel out directed spending on items like free school meals or mental health support. House Republicans say it would give districts more flexibility on how they spend their money.

The Senate also proposes more per-student funding but Senate Democrats want that directed spending maintained.

House Speaker Matt Hall (R-Richland Twp) said he still hoped the House could pass a new proposal with bipartisan support after the Senate walked.

Hall said, as a way to pressure the Senate, he offered House Democrats restored funding for school meals and rural school transportation to gain their votes. He called that deal a win-win, and said a similar deal was on the table with the Senate.

“We win because we keep pressure on to get a school budget done quickly and also to get roads done and they win because they can establish relevancy in the budget process. I thought that was a critical opportunity for them and I think they missed that opportunity,” Hall said.

That plan never came to fruition. After session Tuesday, House Democrats said they didn’t feel Hall was working in good faith.

No budget means schools still don’t know how much money they’ll get for things like teachers, resource officers, or free meals for students.

Michigan lawmakers went home without passing a new budget for K-12 schools Thursday night. That’s despite, both meeting for hours and a statutory July 1 deadline for getting an entire state budget done.

It appears part of the holdup is how to handle earmarks for programs like free school lunches or mental health services. The Democratic-led Senate wants them maintained while the Republican-controlled House of Representatives wants to cut them in favor of giving districts more money per student.

House Speaker Matt Hall (R-Richland Twp) is also trying to get a road funding plan passed alongside the school budget.

Hall spoke to reporters Thursday night after spending hours negotiating with Senate leadership, the governor, and their teams. He said the leaders were leaving with “a roadmap” that will help them get a deal done next week.

“The House Republicans are committed to working through the weekend, working tomorrow, and working more tonight. Working over the weekend with our goal of still trying to get something done on roads and education by July 1,” Hall said.

Hall said he believed his Democratic counterparts worked better with added pressure from that deadline. He claimed the Senate adding more session days to its calendar for next week as a win.

The Senate had planned to take the first two weeks of July off.

All sides of the negotiating table say they’re optimistic about getting something done, acknowledging it would be difficult.

Reporters caught State Budget Director Jen Flood leaving the governor’s office at the state Capitol Thursday night. She said negotiators were “having great conversations,” when pressed for a comment.

Democrats, however, are still frustrated by the time crunch. They accuse House Republicans of delaying the process by waiting until a couple weeks ago to release their school budget proposal.

Rep. Alabas Farhat (D-Dearborn) is the ranking Democrat on the House Appropriations Committee.

“We are seeing a budget process that normally takes months to play out, playing out within a span of four to five days,” Farhat said. “We shouldn’t be in this spot right now where we’re five days before the [statutory] deadline contemplating whether or not we’ll have this budget. So school districts don’t have to keep wondering and teachers don’t have to keep wondering if they’re going to be pink slipped or not.”

Hall said he and House Republicans have been vocal about wanting to keep to the July 1 deadline for months. Democrats have as well, though some have raised doubts in recent weeks about that feasibility without having a complete budget proposal from the House.

The odds of passing a full state budget next week are dim.