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BY DAVID EGGERT

LANSING — Legislators have responded to Gov. Gretchen Whitmer’s budget proposal with blueprints of their own, setting the stage for negotiations on how to spend around $80 billion next scal year.

e process could be wrapped up in June. While majority Democrats are in control, they have di erent ideas. Republicans have leverage to shape the nal spending bills, too.

A look at where things stand and key issues to be resolved before the Democratic governor can sign her fth budget:

Revenue consensus

First things rst: Legislative scal agencies and the Whitmer administration met Friday to revise revenue estimates for the general and school aid funds, and the dollar gures are shrinking. Whitmer and the Senate proposed similar spending levels for 2023-24, $79.4 billion and $79.5 billion respectively. e House came in higher, at $80.2 billion. But projections Friday showed Michigan state government will take in $2.7 billion less over two years than was forecast months ago, primarily due to newly approved tax cuts. It is unclear how spending targets will change in response to the changing revenue picture.

Sticking points

Democrats are not on the same page on various issues, including: e amount is similar to what will automatically go to SOAR instead of the general fund under a law that was enacted in March. e Senate agreed. e House did not, causing confusion given the new law makes such a transfer automatic for three years.

Scholarships: Whitmer proposed a nearly 70% funding increase for Michigan Reconnect, which provides tuition-free community college classes for adults age 25 and older. at includes $28 million to expand eligibility to those age 21 and up and $10.2 million to cover cost increases. e Senate agreed. e House included no additional funding beyond the current $55 million.

Economic growth: Several Whitmer-proposed initiatives within the state Department of Labor and Economic Growth are in limbo.

 Business attraction incentives: Whitmer proposed $500 million more for the Strategic Outreach and Attraction Reserve fund. e tool has been used to land electric vehicle battery plants and other manufacturing operations.