Updates About Appropriations

On September 28, one of the final session days ahead of the November 8 election, the Michigan State Legislature finalized a $1 billion supplemental appropriation bill, most of which would additional funding to the Strategic Outreach and Attraction Reserve (SOAR) Fund for various economic development projects.

In light of the negotiations, Representative Thomas Albert (R-Lowell) announced during the House Appropriations committee meeting that he would be resigning as chair due to his concerns with approving additional spending. Albert, who again addressed the chamber during his no-vote explanation, said he could not support the spending during a “period of economic uncertainty”. Representative Mary Whiteford (R-Casco Township) will serve as the Appropriations Chair for the remainder of the 2021-22 legislative session.

Following an agreement struck between the Whitmer administration, local clerks and lawmakers, the Michigan State Legislature also took up a package of bills related to election security and preprocessing of absentee ballots. All bills in the package passed out of both chambers and now head to the desk of Governor Gretchen Whitmer. House Bill 4491 would allow county clerks to remove deceased individuals from the qualified voter file as well as allow absentee ballot preprocessing up to two days before the election. Currently, Michigan only allows preprocessing 24 hours prior to an election and only in municipalities of at least 1,500 voters. House Bill 6071 would increase access to polling locations. Senate Bill 8 defines “verified electronic signature” for military personnel, while SB 311 allows the electronic return of ballots for military voters.

The legislation is expected to be signed into law and be in effect for the upcoming November general election.

On Friday, June 10, Governor Whitmer signed House Bill 6012, legislation to, among other things, provide supplemental appropriations to Oxford High School following the devastating shooting that occurred on November 30, 2021.

Sponsored by Representative Pamela Hornberger (R-Chesterfield), a former public-school teacher, the funding aims to implement risk assessments to identify campus safety and determine where further investments are needed as well as ensure emergency plans and protocols are effective. A total of $14 million will be awarded to all schools for $2000 grants to complete comprehensive safety and security assessments. The bill also provides direct funding to Oxford Community Schools to hire mental health professionals, enhance security, and other student supports.

On May 19, the Michigan Senate swiftly approved, mostly along party lines, House Bill 4568 and Senate Bill 784 – a nearly $2.7 billion tax relief package. Subsequently, the Michigan House passed House Bill 4568, sending the bill to the Governor’s desk, but due to procedural restrictions, will wait until the following week to pass Senate Bill 784.

The measures would reduce the state’s income tax rate from 4.25 percent to 4 percent in the 2023 tax year. The bills also include an expansion of Michigan’s Earned Income Tax Credit from 6 percent to 20 percent in the 2022 tax year and increasing personal tax exemptions by $1,800. Finally, the bills include tax deductions for senior filers, dependents as well as disabled veterans. Senate Bill 784 addresses policy related to the spouses and surviving spouses of disabled veterans, as well as relief for local units of government.

During the floor debate, Democratic Legislators got up to speak to the tax cut proposal, saying it falls short of providing relief to Michiganders in the immediate term. Instead, the Governor and Democrats in the Legislature called for $500 in direct relief to families.

While tax cut proposals have been a focus of Republicans in the legislature for months, this particular effort to provide tax relief unfolded somewhat last minute after the House and Senate Fiscal Agencies released revenue numbers well above projections and budget balances between $4-5 billion for the General Fund and $4-5 billion for the School Aid fund going into Fiscal Year 2023. The effort also comes ahead of the Consensus Revenue Estimating Conference on Friday, May 20 where revenue projections will be finalized.

As the package passed the chambers along party lines, the bills did not garner enough support to be granted immediate effect. Thus, any tax relief would not go into effect until 90 days after the legislature adjourns sine die (next spring).