Capital Outlay Process Budgets and Analysis

How the Appropriations Process Works

Development of each state fiscal year budget starts approximately one year in advance of the onset of the new fiscal year (Oct. 1).

1. Individual departments submit their budget plans to the Department of Management and Budget (DMB)

2. Universities submit financial and program information to DMB for review.

3. Departmental representatives meet with DMB officials to review specific details of their budget recommendations.

4. DMB senior budget officials meet with the governor to discuss final budget recommendations.

5. The governor presents the State of the State address on the third Tuesday of January, where she releases her budget requests for the coming year.

6. No later than the second week in February, the DMB director presents the governor's budget to the Legislature before a joint meeting of the House and Senate Appropriations Committees.

7. DMB officials present individual overviews of the governor's budget to each appropriations subcommittee. Subcommittee hearings are held on the governor's budget recommendations; each university president provides testimony before the Senate and House Higher Education Subcommittees.

8. Subcommittee recommendations are then "reported out" of committee to the full Appropriations Committee.

9. The Appropriations Committee approved bill is sent to the House and Senate floor, to be considered.

10. Once approved by the full House or Senate, the bill is transmitted to the opposite chamber for consideration.

11. After passing both chambers, the bill is enrolled and presented to the governor who has 14 days to approve or veto the entire bill or any distinct item.

*For additional information on how the state appropriation process works, please review the House Fiscal Agency's: Legislative Process in Michigan (Student's Guide)

Key Months in the State Budget Process

January: Revenue Estimating Conference

February: Governor’s State of the State Address

February/Early March: Executive Budget Recommendation

Mid-March – June: Legislative budget process

May: Revenue Estimating Conference