Multiple organizations, politicians and groups are stepping into the debate over Gov. Gretchen Whitmer’s proposed budget plan released this morning. Some love it, some hate it…some are waiting to see what comes next. Here is a compilation of some of the responses:
Small Business Association of Michigan:
The Small Business Association of Michigan (SBAM) today expressed opposition to the significant tax increase on small businesses proposed by Gov. Gretchen Whitmer in her Fiscal Year 2020 budget.
The proposed “pass through” tax increase amounts to a 41-percent small business tax increase, impacting more than 100,000 small businesses in Michigan.
Rob Fowler is CEO of SBAM. He says, “Michigan has made substantial economic gains in employment since double taxation on small businesses was eliminated in 2011,” and adds, “Gov. Whitmer’s proposal would be a major step backward and a job-killer for small businesses, who make up most of the employment and employment growth in our state.”
According to the Institute of Business and Entrepreneurship, more than 437,000 Michiganders are employed at companies with fewer than 99 employees.
Former Lt. Gov. Brian Calley is now President of SBAM. He says, “Today’s proposal singles out smaller companies that have been essential to our economic resurgence,” and concludes, “This new small business tax will hurt small businesses and undo our economic growth. We should be sending small businesses a thank you note, not a substantially higher tax bill.”
The Small Business Association of Michigan focuses solely on serving the needs of Michigan’s small business community through advocacy, collaboration and buying power. Today they serve over 26,000 members in all 83 counties of Michigan. SBAM is located in Lansing, just one block from the Capitol.
Michigan Restaurant & Lodging Association:
The budget presented by Governor Whitmer would replace revenues lost from the proposed repeal of the pension tax by taxing businesses previously exempt from the corporate income tax. The corporate income tax which was approved under Governor Snyder applies to “C” corporations. Businesses classified as S-Corporations or pass-through corporations were exempt from the tax. Under Governor Whitmer’s proposal, the income of owners of LLC’s and S-Corporations would be taxed at the 6-percent corporate income tax rate rather than the lower personal income tax rate of 4.25-percent.
- 9 in 10 restaurants operate with fewer than 50 employees
- 81-percent of Michigan Restaurant & Lodging Association members are organized as “pass through” entities (S-Corp, LLC, Sole Proprietorship), meaning they would be subject to the proposed tax.
- The restaurant and lodging industries employ more than 600,000 Michiganders, or 12.5-percent of the entire workforce in the state.
CEO of the Michigan Restaurant and Lodging Association, Justin Winslow, in regards to the proposed tax increase:
“The hospitality industry represents nearly 13-percent of Michigan’s GDP and yet is overwhelmingly comprised of small operators organized as LLC’s and S-Corporations. The Governor’s proposed tax increase is tone deaf to these drivers of Michigan’s resurgent economy. It would devastate Michigan’s hospitality and tourism industries and the half a million jobs they provide.”
State Senator Kim LaSata of Bainbridge Township:
State Sen. Kim LaSata, R-Bainbridge Township, released the following remarks on Tuesday in response to Gov. Gretchen Whitmer’s fiscal year 2020 budget presentation:
“Southwest Michigan families can’t afford a 45-cent gas tax increase.
“The governor’s budget proposal addressed many priorities shared by Michigan residents, and I agree there are many tough challenges we need to address.
“Michigan has made significant investments in roads, education and career training opportunities over the past eight years through smart budgeting, and I am confident we can put together a budget that addresses our shared priorities while limiting the impact on our hardworking families and job providers.
“We already have Michiganders suffering from high auto insurance rates and we don’t need to tax them more by raising the gas tax.
“I look forward to working with my legislative colleagues and the governor’s administration to approve a balanced budget on time.”
State Senator Aric Nesbitt of Lawton:
State Sen. Aric Nesbitt, R-Lawton, issued the following statement on Tuesday, in response to Gov. Gretchen Whitmer’s fiscal year 2020 budget presentation:
“I look forward to once again passing a balanced budget that pays down debt and invests in roads and education. We also need to continue efforts to lower the cost of auto insurance.
“This morning’s budget recommendations tax too much, spend too much, and fail to adequately pay down debt.
“I will continue working on behalf of the hardworking taxpayers of West Michigan.”
The Michigan Infrastructure & Transportation Association:
The following statement is from Michael Nystrom, executive vice president of the Michigan Infrastructure & Transportation Association (MITA), commenting on Gov. Gretchen Whitmer’s budget and proposed infrastructure funding.
“Gov. Gretchen Whitmer campaigned on the pledge to fix Michigan’s aging and crumbling infrastructure, and her proposed 2020 state budget appears to signal that she intends to offer the bold leadership needed to solve a problem that governors and the Legislature have largely failed to resolve for two decades. Multiple studies have estimated that Michigan needs to be investing $2.6 billion more every year for the next two decades to fix our roads and bridges. Michigan voters are watching Lansing and waiting to see if the Legislature and Governor will join together to exercise the leadership necessary to produce a solution that will finally fix our roads and other infrastructure.”
Republican National Committee Spokesman Michael Joyce:
“Gretchen Whitmer is taking Michigan to the next level with her ambitious budget proposal and that should horrify Michiganders. By the time her gas tax increases take effect, Michigan will be by far the highest gas tax state in the country.”
The Michigan League for Public Policy:
The Michigan League for Public Policy issued the following statement on Gov. Gretchen Whitmer’s 2020 budget proposal from President and CEO Gilda Z. Jacobs:
“As Gov. Whitmer outlined today, Michigan is at a crossroads and needs new direction to get on the road to opportunity, and we have an Owner’s Manual for state policymakers to do just that. Our state is currently a place where our water is putting our health at risk, our schools and students are struggling, our roads are damaging our cars and risking our lives, and our job market and workforce are often at odds. That all needs to change, and that change can start today.
“The governor’s budget addresses many of the League’s policy priorities for Michigan residents, including several watershed changes that we have been advocating for nearly a decade or more. This includes a much-needed increase in Michigan’s Earned Income Tax Credit—a bipartisan, pro-work policy and one of our greatest weapons against poverty—and while we would still like to see it fully restored to 20 percent or expanded further, doubling to 12 percent over two years is a fantastic start.
“We also applaud the major investments in education, with funding directed to many of the League’s primary points of emphasis—child care, preschool, literacy and third-grade reading, helping students at risk or with special needs, shifting more School Aid Fund dollars back to K-12 schools, improving access and affordability to higher education for high school graduates and skills training for adults.
“Whether it’s in our motto, on our state quarter, or visible on maps, globes and images from space, Michigan has always been defined by our water. But in recent years, ‘Michigan water’ has taken on a negative and deplorable connotation. We can’t ever have a repeat of the Flint water crisis, and we can’t let PFAS contamination get any worse, and this budget calls for bold but vital funding to clean up our water and our state’s reputation.
“Finally, as an organization who is constantly—and sometimes singularly—calling for increased revenue to invest in the things our state and people need, whether it’s through opposing tax cuts or calling for more equitable tax changes, we are grateful for the governor’s courage to increase revenue and make sure businesses are paying their fair share in her budget proposal. In 2011, Gov. Rick Snyder and the Legislature drastically shifted Michigan’s tax revenue stream from businesses to individuals, contributing greatly to the declining purchasing power of the state’s General Fund. Gov. Whitmer’s plan to increase the EITC and other changes discussed today make good progress to restoring that balance. Raising the EITC also offsets some of the regressivity of a gas tax increase and the League’s concerns around its impact on drivers with lower incomes. Finally, we think the benefits of the raised revenue and investments in this budget—to residents with low incomes and their families as well as our state as a whole—outweigh a gas tax’s impact.”
Michigan Attorney General Dana Nessel:
Michigan Attorney General Dana Nessel issued the following statement applauding Gov. Gretchen Whitmer’s solutions-based budget presentation today.
“Gov. Whitmer’s first budget puts forth real solutions to our state’s biggest challenges. I look forward to working with our partners in the Legislature through the budget process to ensure we address the issues that really matter to the hard-working men and women of Michigan.”
The Education Trust-Midwest:
Earlier today, Governor Gretchen Whitmer released the Fiscal Year 2020 Executive Budget Recommendation. This proposal prioritizes public education by dedicating more than $500 million in additional funding for Michigan schools.
The following statement is from Amber Arellano, executive director of The Education Trust-Midwest:
“Governor Whitmer’s commitment to investing in underserved students – including students with special needs – is an important step forward for public education in Michigan. Governor Whitmer’s proposed move toward a student funding formula that takes into account students’ need will help address the state’s funding gaps for vulnerable students, and better equip Michigan’s high-poverty schools to meet the needs of their students.
“Proposing to increase base funding by $120 – $180 per pupil, while also proposing to significantly increase funding for students with disabilities and students from low-income families, reflects the reality that Michigan schools need more dollars to support the education of students with the greatest needs.
“In addition to funding improvements, Michigan needs to move toward improvement-focused practices and policies that are based on evidence to dramatically improve student learning. We are committed to continuing to work with leaders on both sides of the aisle to support Michigan’s adoption and implementation of the highest-leverage policies and practices for improving outcomes for all students.”
The Michigan Democratic Party:
The Michigan Democratic Party issued the following statement today on behalf of MDP Chair Lavora Barnes in response to Gov. Gretchen Whitmer’s Fiscal Year 2020 Budget Recommendation:
“Michigan’s working families have struggled to get ahead for the past decade while corporations and the wealthiest individuals made money hand over fist thanks to a massive Republican tax giveaway and an administration that put the bottom line over citizens’ lives. Governor Gretchen Whitmer’s budget ensures Michigan’s workers and retirees will finally benefit from their hard-earned tax dollars rather than bear the burden of another Betsy DeVos tax cut.
“We need smart, bold leadership to get our state back on track and moving again, and Michigan finally has a governor in the driver’s seat who can — and will — get it done. Gov. Whitmer’s plan calls for investments that will have an instant impact on people’s lives and our entire state, like making good on her promise to fix the damn roads, closing the skills gap, cleaning up our drinking water, and funding public schools so our students are getting an education to compete and get ahead.
“It’s time for Michigan to get moving again — not only forward but up. Governor Whitmer’s budget puts us on a new road to opportunity and a future where Michigan ranks among the best when it comes to the issues that matter most, including healthcare, education, infrastructure, opportunity, quality of life, and more.”
The Michigan Middle Cities Education Association:
Leaders from Michigan’s urban school districts praised Gov. Gretchen Whitmer’s inaugural state budget for Fiscal Year 2020, saying the document contains “historic changes” in the way education funding is provided across the state. Local school districts will have more flexibility to decide how to best allocate resources to deliver crucial programs and services to students based on their particular needs.
Introduced this morning, Gov. Whitmer’s $60.2 billion budget proposal touts record levels of education money with schools set to receive $13.8 billion in funding, an increase of $507 million over last year.
Association Executive Director Ray Telman from the Middle Cities Education Association says, “This child-centered budget will enable our members to provide resources for students while enabling local school boards and their professional educators to make decisions that they believe are in the best interest of the children under their care,” and adds, “Gov. Whitmer’s budget establishes a new high-water mark for our children, their schools and our state.”
Telman says the budget is also focused on proven school finance principles and key findings as outlined in the State of Michigan’s Education Finance Study, commissioned under former Gov. Rick Snyder, and the state’s School Finance Research Collaborative, a broad-based school finance research study of Michigan’s education system, of which the Middle Cities Education Association is a member.
The Middle Cities Education Association, a consortium of 28 urban school districts across Michigan, was formed out of a shared commitment to improving educational opportunities for the urban learner. The unique mission and emphasis of Middle Cities is to serve as an advocate for member districts to ensure quality educational programs for all students.
The Michigan Freedom Fund:
The Michigan Freedom Fund released this comment earlier today:
Governor Gretchen Whitmer today will unveil a destructive new plan to triple the gas tax on Michigan workers and families, shattering a campaign promise made during a debate last October.
Whitmer on October 12, 2018, categorically denied an allegation from her opponent that she planned to raise the gas tax by 20 cents per gallon, calling the accusation “ridiculous” and chiding her opponent, accusing him of peddling “nonsense, and you know it.”
The exchange can be viewed online at this link:
https://www.youtube.com/watch?v=ZPf76ySBQyA&feature=youtu.be
Today, Whitmer is proposing a 45 cents per gallon gas tax hike, tripling the tax on Michigan motorists. The gas tax hike alone – one of several expected in her budget proposal – will exceed $2 billion per year, and cost the average family $700 or more annually.
“Tripling the gas tax is a lazy and uninspired proposal that will devastate Michigan families,” said Tony Daunt, Executive Director of the Michigan Freedom Fund. “Gretchen Whitmer understands the harm she’s doing to families as well as anyone – that’s why she lied on the campaign trail about her plan to triple motorists’ taxes. Whitmer’s broken promise will force families to choose between getting to work each day or putting food on the table, buying medicine for their sick kids, or keeping the furnace running all winter. Those are choices no one in Michigan should have to make.”
The Michigan Works! Association:
The following is a statement from Luann Dunsford, Chief Executive Officer of the Michigan Works! Association responding to Governor Whitmer’s Fiscal Year 2020 budget proposal:
“Michigan Works! applauds Gov. Whitmer for her commitment to focusing on workforce development and closing the skills gap in her budget proposal. We look forward to partnering with the governor to provide training for in-demand skills that will lead to productive careers.
“The new Michigan Reconnect program and MI Opportunity Scholarship will be great assets in our workforce development toolkit. Efforts like these will help us better ensure that everyone has access to training to earn a high-paying job and we look forward to getting started.”
Established in 1987, the Michigan Works! Association fosters high-quality employment and training programs serving employers and workers by providing support activities and a forum for information exchange for Michigan’s talent development system.
The Michigan Department of Talent & Economic Development:
Talent and Economic Development Department of Michigan, Acting Director Stephanie Beckhorn issued the following statement in support of Gov. Whitmer’s budget proposal and focus on closing the skills gap:
“With a focus on increased education funding, the proposed budget sets a strong stage for Gov. Whitmer’s commitment to making Michigan a home for opportunity – paving the way for Michigan students and job-seekers alike to thrive and achieve the skills they need for high-demand careers right here in our great state.”
The Talent and Economic Development Department of Michigan (Ted) allows the state to leverage its ability to build talent with in-demand skills while helping state businesses grow and thrive. Joining job creation and economic development efforts under one umbrella, Ted consists of the Michigan Economic Development Corporation, Michigan State Housing Development Authority, Michigan Strategic Fund, Talent Investment Agency and Michigan Land Bank Fast Track Authority.
