FOR IMMEDIATE RELEASE
June 17, 2020
Contact:
Alex Rossman
arossman@mlpp.org
Cell: 517-775-9053
LANSING—In order to avoid a deep economic crisis brought on by the current pandemic, lawmakers must address the state’s lack of revenue, according to a new report from the Michigan League for Public Policy. The report, COVID-19 Crisis Highlights Need for More State Revenue, explores the reasons Michigan is woefully unprepared for this economic downturn and presents recommendations for recovery.
Economists estimate that the current crisis will have a substantially larger impact on Michigan’s economy and fiscal health than the Great Recession, which itself hit Michigan harder and lasted longer than almost any other state. Michigan’s General Fund and School Aid Fund revenues are projected to decline by $6.2 billion in this budget year and the next one, and the state cannot rebound without additional funds coming in.
“We’re talking about a $6.2 billion loss in a budget that’s already been cut to the bone over the last decade, putting our kids, our workers and our communities at risk in the process. We’ve got to raise some money if we’re going to survive this downfall—and it must start with a more equitable and more robust tax system. It must start with people and businesses who have the means to step up and pay their fair share for the services they gain from being in Michigan,” said Gilda Z. Jacobs, President and CEO of the Michigan League for Public Policy.
As a share of tax collections, net business taxes have dropped from 5.5 percent to 2.6 percent since 2011. The top one percent of Michiganders pay less of their personal income in taxes (just over 6 percent) than those who earn under $17,000, who pay nearly 10.5 percent of what they earn in taxes.
The League recommends multiple avenues for raising revenue through taxes, from making sure corporations pay their fair share to implementing a tax on services to exploring additional taxes on recreational marijuana sales—Michigan’s taxes on cannabis are among the lowest in the nation currently.
Beyond taxes, the League urges lawmakers to push for additional federal relief that is flexible and tied to state economic conditions and COVID-related revenue shortfalls, while taking maximum advantage of the state’s Rainy Day Fund. Last week, the Michigan Senate passed bipartisan legislation, Senate Resolution 124, which calls for more flexibility in federal CARES funding, and state budget negotiations have been extended to await further action by Congress.
“We’re not on our own here. This pandemic is a national problem and it requires a national solution—and bipartisan voices in Michigan are needed for bipartisan action in Washington. The state absolutely must advocate for new federal funds in the Senate version of the HEROES Act as well as more flexibility on existing CARES Act dollars, and then we must use those funds for priority spending on the health, safety and well-being of Michiganders,” Jacobs said.
ADDITIONAL INFORMATION: Fact Sheet | Recommendations
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The Michigan League for Public Policy, www.mlpp.org, is a nonprofit policy institute focused on economic opportunity for all. It is the only state-level organization that addresses poverty in a comprehensive way.
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Jay Cutler joined the League in March 2026 as the Kids Count Senior Data Analyst, where he collects, analyzes, and prepares data for Kids Count in Michigan.
Danielle Taylor-Basemore joined the League as the Development Data and Stewardship Coordinator in June 2025. She brings with her five years of nonprofit experience with a special focus on community engagement, data visualization and strategic programming. Prior to joining the League, Danielle served as the Business District, Safety, and Digital Manager at Jefferson East, Inc.
Scott Preston is a Senior Policy Analyst with the Michigan League for Public Policy, where he leads the organization’s immigration and criminal justice reform portfolios. In the three years prior to joining the League, Scott facilitated the Southeast Michigan Refugee Collaborative and managed a small business economic development program at Global Detroit. His work included launching Michigan’s first Refugee Film Festival and building on a trusted connector model that linked marginalized communities with crucial resources. Scott’s work at the League is informed by his background in journalism and research. He spent four years covering the Syrian refugee crisis in the Middle East for publications such as The Economist, and later worked with unaccompanied refugee minors through Samaritas. Scott holds a master’s degree in international migration and public policy from the London School of Economics and Political Science.
Kate Powers joined the League as the Chief Development Officer in February 2025. Prior to joining the League, Kate held leadership positions at many Michigan nonprofit organizations, most recently serving as the COO and Chief Development Officer of Ele’s Place. Kate has spent the bulk of her career in fundraising, with a short stint in the state Legislature as a legislative aide to members in both chambers. Kate is a graduate of Michigan State University’s James Madison College with a Bachelor of Arts in Social Relations and has a certificate in fundraising management from the Lilly Family School of Philanthropy at Indiana University. Additionally, Kate served on the East Lansing Public Schools Board of Education and is a past President of the Junior League of Lansing. In her free time, she enjoys traveling with her husband and her son and saving outfit of the day and home decor ideas on Pinterest. 
Nicholas Hess joined the League as the Fiscal Policy Analyst in September of 2024. In this role, Nicholas focuses on tax policy, government revenue, and their impact on working families and racial equity, including the effects of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). Nicholas values the role that judicious fiscal policy can play in the improvement of people’s lives and the economy, alleviating inequities along the way.
Audrey Matusz joined the League as the Visual Communications Specialist in September 2024. She supports the team with implementing social media strategies and brainstorming creative ways to talk about public policy. She brings with her nearly a decade of experience in producing digital products for evidence-based social justice initiatives. 
Jacob Kaplan 
Donald Stuckey 
Alexandra Stamm 
Amari Fuller
Mikell Frey is a communications professional with a passion for using the art of storytelling to positively impact lives. She strongly believes that positive social change can be inspired by the sharing of data-driven information coupled with the unique perspectives of people from all walks of life across Michigan, especially those who have faced extraordinary barriers. 
Yona Isaacs (she/hers) is an Early Childhood Data Analyst for the Kids Count project. After earning her Bachelor of Science in Biopsychology, Cognition, and Neuroscience at the University of Michigan, she began her career as a research coordinator in pediatric psychiatry using data to understand the impacts of brain activity and genetics on children’s behavior and mental health symptoms. This work prompted an interest in exploring social determinants of health and the role of policy in promoting equitable opportunities for all children, families, and communities. She returned to the University of Michigan to complete her Masters in Social Work focused on Social Policy and Evaluation, during which she interned with the ACLU of Michigan’s policy and legislative team and assisted local nonprofit organizations in creating data and evaluation metrics. She currently serves as a coordinator for the Michigan Center for Youth Justice on a project aiming to increase placement options and enhance cultural competency within the juvenile justice system for LGBTQIA+ youth. Yona is eager to put her data skills to work at the League in support of data-driven policies that advocate for equitable access to healthcare, education, economic security, and opportunity for 0-5 year old children. In her free time, she enjoys tackling DIY house projects and trying new outdoor activities with her dog.
Rachel Richards rejoined the League in December 2020 as the Fiscal Policy Director working on state budget and tax policies. Prior to returning to the League, she served as the Director of Legislative Affairs for the Michigan Department of Treasury, the tax policy analyst and Legislative Director for the Michigan League for Public Policy, and a policy analyst and the Appropriations Coordinator for the Democratic Caucus of the Michigan House of Representatives. She brings with her over a decade of experience in policies focused on economic opportunity, including workforce issues, tax, and state budget.
Simon Marshall-Shah joined the Michigan League for Public Policy as a State Policy Fellow in August 2019. His work focuses on state policy as it relates to the budget, immigration, health care and other League policy priorities. Before joining the League, he worked in Washington, D.C. at the Association for Community Affiliated Plans (ACAP), providing federal policy and advocacy support to nonprofit, Medicaid health plans (Safety Net Health Plans) related to the ACA Marketplaces as well as Quality & Operations.
Renell Weathers, Michigan League for Public Policy (MLPP) Community Engagement Consultant. As community engagement consultant, Renell works with organizations throughout the state in connecting the impact of budget and tax policies to their communities. She is motivated by the belief that all children and adults deserve the opportunity to achieve their dreams regardless of race, ethnicity, religion or economic class.
Emily Jorgensen joined the Michigan League for Public Policy in July 2019. She deeply cares about the well-being of individuals and families and has a great love for Michigan. She is grateful that her position at the League enables her to combine these passions and work to help promote policies that will lead to better opportunities and security for all Michiganders.
Megan Farnsworth joined the League’s staff in December 2022 as Executive Assistant. Megan is driven by work that is personally fulfilling, and feels honored to help support the work of an organization that pushes for more robust programming and opportunities for the residents of our state. She’s excited and motivated to gain overarching knowledge of the policies and agendas that the League supports.
