Updates About Economy

Governor Gretchen Whitmer recently presented her Fiscal Year 2025-2026 Executive Budget Recommendations, kicking off Michigan’s budget season. With a total proposal of $83.5 billion—the largest in state history—the budget reflects a $1.2 billion revenue surplus and prioritizes lowering costs for residents, creating jobs, investing in education, supporting seniors, and strengthening public safety. Key highlights include continued tax relief through the Working Families Tax Credit, expanded universal pre-K, free school meals for all public school students, and increased investment in workforce development. Additionally, the proposal allocates billions toward infrastructure improvements, child care support, and special education funding.

Other notable investments focus on public health and safety, including $46.8 million in opioid settlement funds, increased Medicaid access for seniors and individuals with disabilities, and a $42.8 million tax on vaping and nicotine products (see Governor Recommends New Tax Targeting Youth Nicotine Consumption for more info). The budget also includes major investments in Michigan’s defense industry, cybersecurity, and government modernization. As the legislature begins negotiations, these proposals will shape the final state budget ahead of the July 1 deadline.

Last week, Governor Gretchen Whitmer delivered her “Road Ahead Address” at the Detroit Auto Show, focusing on Michigan’s economic future and the critical role of our auto industry. She highlighted bipartisan achievements, including passing over 1,400 bills, and outlined her vision for Michigan to lead the evolving “auto ecosystem,” encompassing battery factories, software companies, and advanced manufacturing.

Whitmer proposed replacing expiring economic tools like the bipartisan job fund and road bonding plan with innovative initiatives such as a “Make it in Michigan” job fund, tax incentives for hiring Michigan workers, and investments in housing, transit, and infrastructure. She emphasized collaboration with both state and national leaders to secure Michigan’s position as an auto industry leader and safeguard its economy from global competition.

Additional insight on Whitmer’s goals for the 103rd legislature will be revealed in February during her State of the State Address and presentation of the Fiscal Year 2025-2026 Executive Budget Recommendations.

The Michigan Senate broke records during lame duck with a 29-hour session that ran from 10 a.m. Thursday to 3:01 p.m. Friday, passing over 90 bills before adjourning. Senate Democrats prioritized salvaging as much legislation as possible after House Democrats were unable to maintain a quorum due to a missing Democratic member and a Republican walkout. While most bills were passed in their original form and are now headed to the Governor’s desk, some were amended and sent back to the House, where they are unlikely to advance unless the House reconvenes earlier than December 31.

Key Bills Passed by the Senate:

• Requirement for Michigan schools to supply information to parents on firearm storage rules each year
• Allowing pharmacists to prescribe contraceptives and to require coverage of pharmacist-prescribed birth control methods
• Maternal Health bills designed to address the state’s high maternal mortality rates
• Lifting medical benefit plan caps to raise the amount public employers can contribute towards staff healthcare plans
• Prohibiting law enforcement from selling firearms obtained in gun buyback programs and requiring firearms obtained through buyback programs to be destroyed
• School Safety and Mental Health bill package intended to standardize school safety requirements