The Michigan Constitution requires the state to enact a balanced budget, but Research Council analysis of the FY2027 state budget found that more work was needed to meet that requirement.

The analysis detailed how GF/GP appropriations in the recently enacted FY2027 budget exceeded available revenue resources by around $600 million to $900 million.

The report noted that it was highly likely that a framework for resolving this budget imbalance is in place as part of the broader budget agreement, but those details were yet to be made public.

Indeed, within hours of the report's release, some of those unannounced elements of the budget deal became public.

As Research Council President Eric Lupher observed: "Accountability is a function of transparency. All elements of the budget deal must be made public for decision makers and the public to understand the consequences of the package."

In a Nutshell

-- A Research Council analysis suggests GF/GP appropriations in the recently enacted FY2027 budget exceed available revenue resources by around $600 million to $900 million; more budget adjustments are likely needed to ensure a balanced budget.

-- Looking ahead, the next governor and legislature will begin FY2028 budget deliberations facing a GF/GP deficit of over $500 million once cost pressures related to the federal OBBBA and other inflationary pressures are factored in.

-- In terms of the total budget, a fair apples-to-apples comparison suggests the enacted FY2027 budget is (a) larger than the original FY2026 budget enacted last October; and (b) smaller than the adjusted FY2026 budget once recent supplemental appropriations are added.

Citizens Research Council of Michigan was recognized by the Governmental Research Association (GRA) with the prestigious Outstanding Policy Achievement, which recognizes tangible improvements in public policy, management, service delivery, and/or cost savings resulting from the research and recommendations of a governmental research agency or individual GRA member. The award may also take into account the qualitative characteristics of the relevant research..

This is the fourth consecutive year the Research Council has been honored with GRA recognition.

GRA is a national organization composed of research peers from across the country. The awards competition, judged by fellow GRA members, recognizes exceptional research and educational efforts on state, regional and local governmental issues by association members.

The Research Council was recognized for its breadth of work on "Promoting Budget Reform: Legislative Earmarks."

"All of the entries in this category were excellent," said Dr. Joe Adams, research coordinator for Public Affairs Research Council of Alabama, on behalf of GRA. "As a group, we sided with the idea that policy achievement would require a sense of completion. Citizens Research Council appeared to achieve what they set out to do."

Eric Lupher, president of the Citizens Research Council, accepted the award on behalf of the Research Council.

“We are thrilled and honored to once again be recognized for our work with this most distinguished award by the preeminent national organization of our peers,” said Lupher.

In a Nutshell

-- FBI data shows that from 2020 to 2024 larceny thefts in Detroit have increased by 33 percent, while motor vehicle thefts have increased by 44 percent.

-- Generally, property crime has been on the decline in Detroit and its peer cities since 1990.

However, Detroit’s motor vehicle theft rate continues to be the highest among six peer cities in 2024. Detroit larceny theft rate was higher than four of six peer cities but has tended to be in the middle range among peers historically.

-- The Research Council recommends that the Sheffield Administration focus on addressing the social determinants of crime, which include poverty, income inequality, and unemployment, based on our analysis and existing crime research. Effective policy solutions include anti-poverty programs, workforce development, and blight reduction. Recent announcements by the Sheffield Administration suggest a deterrence strategy through enhanced street lighting and a new property crime squad.

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