"The right to criticize government is also an obligation to know what you are talking about."

-Lent Upson, first director of Citizens Research Council

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May 28, 2026

Special Friends Edition

Highlights:

Council Brief: Medicaid Work Requirements are Coming. Michigan Needs to Prepare.
New Podcast: Con-Con series, Article IV-Legislative Branch
Interview from the Mackinac Island Public Policy Conference

Medicaid Work Requirements are Coming. Michigan Needs to Prepare.

Last summer, the federal One Big Beautiful Bill Act (OBBBA) was enacted which, among other things, made significant changes to Medicaid. Two changes (more frequent eligibility redeterminations and work requirements for certain enrollees) were designed to reduce the number of Medicaid enrollees as a pathway to reduce federal spending on the program.

Because Medicaid is a joint federal-state program, states will be responsible for implementing these changes. How a state goes about implementation will determine how its residents experience the change

In a Nutshell:

-- Federal changes to Medicaid coming in 2027 will require states to implement work requirements for a significant portion of program recipients and increase the frequency of eligibility determinations for everyone.

-- These changes are likely to reduce the number of people who receive coverage through Medicaid, although the state can take steps to reduce the number of people who will lose coverage.

-- Devoting resources to better implementation now will give the state a chance to minimize the number of people who fail to qualify for Medicaid due to technical problems with the enrollment application and work requirement verification.

Read the Brief

Items of Note from the FY2027 School Aid Budget Proposals

All three major budget proposals—the Governor’s, House’s, and Senate’s—are now public, making this year’s process smoother than last year’s. The three FY2027 School Aid budget proposals align on a 2.5% increase in the foundation allowance, bringing per‑pupil funding to roughly $10,300. Guy Gordon chats with the Research Council’s Craig Thiel and Bob Schneider.

At‑risk funding continues to grow, though the chambers differ sharply: the Governor proposes a 6% increase, the House 5%, and the Senate a dramatic 25% bump, which Craig describes as “a major revenue stream” for districts with high poverty rates.

The Legislature has rejected the Governor’s plan to shift $400 million from the School Aid Fund to higher education, though this could re‑emerge in negotiations.

On the General Fund side of the budget proposals, Bob reports modest revenue growth—“better up than down”—but not enough to ease structural pressures. The House proposes deep cuts to university operations, including a $421 million reduction to U‑M and MSU, while the Governor’s proposed new revenues have been dismissed by both chambers. All three budgets create shortfalls heading into FY28, meaning more cuts or revenue changes will be required next year.

Listen to the Pod!

Research Council President Eric Lupher joined Lloyd Jackson and Chris Renwick on WJR's 'JR Morning today from the Grand Hotel on Mackinac Island during the Detroit Regional Chamber's Mackinac Policy Conference.

'JR Morning Interview