McCall Hamilton Advocacy and Public Affairs

Updates About Economy

Michigan Sees Credit Rating Increase

Update: Jul 25-Aug 5, 2022

For the first time in almost ten years, Fitch Ratings boosted Michigan’s credit rating from AA to AA+ with a “stable outlook”.

In its report Fitch increased the credit rating to reflect Michigan’s higher level of fiscal resilience and diversified economy, as well as fiscally responsible budgeting and efforts to address debt. The state has also managed economic risks through increased fiscal reserves, paying down liabilities, and practicing conservative budgeting and revenue forecasting. With the rainy-day fund having been replenished, Michigan has maintained structural balance.

Whitmer Urges Federal Government to Pause Gas Tax

Update: Jun 13-24, 2022

On Tuesday, June 21, Governor Gretchen Whitmer sent a letter to President Joseph R. Biden urging him to work with members of Congress to pause the federal gas tax as prices at the pump rise. On June 22, President Biden called on Congress to pass legislation to suspend the federal gas tax through September. Whitmer’s full letter to the President can be found here.

Previously, the Michigan State Senate passed legislation to suspend the state’s gas tax and sales tax on motor fuel from June 15 until September 15. The legislation has been referred to the House committee on Tax Policy for further consideration.

Senate Passes Motor, Gas Tax Suspension Bills

Update: May 23-Jun 10, 2022

On May 26, the Michigan State Senate passed a four-bill package, spearheaded by Republicans, to suspend the gas tax and 6 percent sales tax on motor fuel from June 15, 2022, until September 15, 2022.

Under the bill that would suspend the state’s gasoline tax, a substitute was adopted that would offset the revenue losses from this tax cut for local governments, providing a $300 million appropriation from the General Fund.

Senate Bills 972, 973, and 974, passed the chamber with strong bipartisan support by a vote of 36-1. The gasoline tax bill, which provided the $300 million appropriation, passed 30-7.

Previously, Governor Gretchen Whitmer vetoed a piece of gas tax suspension legislation, but with respect to this new package of bills, Whitmer was “encouraged” and her spokespeople have indicated the administration is working with the legislature to find common ground on the issue.