Last month, the non-partisan Michigan House Fiscal Agency (HFA) released a report estimating that various business tax provisions contained in the federal One Big Beautiful Bill Act (OBBBA) would have spillover effects on state tax collections to the tune of $677 million in state Fiscal Year 2026 — which, notably, begins in about seven weeks.

The HFA analysis adds another hurdle to what has already been a contentious round of budget deliberations. For months now, the key challenge has been the issue of road funding. Both the Republican-led House and the governor have plans on the table that, to differing degrees, could shift billions in existing state revenue to road infrastructure. However, to date, neither has identified the budget cuts that will be needed to facilitate the proposed re

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