So far three Michigan budget plans have been put onto the negotiating table. The Michigan House plan, the Michigan Senate plan, and today, the plan of Governor Gretchen Whitmer and the response from one of the state’s leading small business advocates puts hers dead last among the three.
The National Federation of Independent Business (NFIB), has ranked the governor’s budget proposal a third-place contender to the budgets already released by both the House and Senate, after her Fiscal Year 2022 and 2023 budget recommendations were the subject of a presentation before a joint House and Senate Appropriations Committee this morning.
NFIB Michigan Director, Charlie Owens says, “If the governor is serious about ‘helping small businesses recover from the pandemic’ and ‘economic reengagement that drives everything,’ then the most important move the she could make is to relax the shutdowns and restrictions and open Michigan’s economy.” He adds, “Federal and state efforts to assist small business are not practical nor sustainable over the long run. Removing the obstacles for small business will boost our economy sooner and longer than any government program or plan.”
The governor’s budget presentation was delivered against a backdrop of more bad economic news as the NFIB Small Business Optimism Index dropped further below the historical index average in January with a net percent of owners expecting better business conditions falling 55 points in 4 months, marking the lowest level since November of 2013. Owens suggested that these are national numbers and Michigan is likely worse off as one of the few states with the most restrictions and shutdown orders on small business.
Owens goes on to say, “While we are appreciative of any effort to help small businesses struggling from the pandemic, the governor’s proposal, after unrelated projects are subtracted, leaves only $107 million for actual direct assistance to small business.” He argues, “This is in contrast to the House Republican recovery proposal that includes $680.5 million in assistance to businesses and the Senate Republican plan that budgets $339 million in property tax relief and other direct assistance.”
Owens also pointed out that both the House and Senate plans include a transfer of $150 million dollars to reimburse the Unemployment Trust Fund for monies that were lost due to fraud, contending, “Employers should not have to pay additional payroll taxes for benefits paid out that were not related to jobless claims.”
