In Budget, News Releases, Tax and Budget

For Immediate Release
May 19, 2023

Contact:
Laura Ross
lauramr@mlpp.org
517-281-1084

Consensus estimates show need for investment in Michigan’s people

League urges key budget investments to tackle state’s greatest needs, and creation of responsible and sustainable revenue streams for future 

LANSING—The Michigan League for Public Policy issued the following statement on today’s Consensus Revenue Estimating Conference (CREC). It can be attributed to League President and CEO Monique Stanton. The League is urging lawmakers to prioritize issues in The People’s Budget, which sets priorities for the 2024 state budget.

“Today’s estimates are not surprising. These adjustments reflect tax policy changes that occurred at the start of the year–including the historic increase in our state Earned Income Tax Credit, which is a common-sense way to provide after-tax income boosts to working families with low and moderate incomes. We expected some swings in our revenue projections and are not surprised.

However, risks, such as the ongoing debate at the federal level about the debt ceiling and the possibility of economic contraction, are hanging over the state. We know that these will most impact Michiganders with low incomes, which is why it’s so critical that lawmakers focus on their needs as they hammer out their final budgets for 2024. The state budget provides an opportunity to give workers and families what they need to build solid foundations to weather uncertain times. Policymakers should prioritize expansion of the Healthy Moms, Healthy Babies initiative, maintaining investments in the child care subsidy program, and implementing a weighted school funding formula that targets resources to address opportunity gaps faced by our students.

We should treat this as a warning sign, and in order for Michigan to become more secure in the face of economic turns, it’s crucial that we build a more equitable and adequate tax system. Right now, people with lower incomes pay a greater share of their income in taxes than top earners do. Not only is this deeply unfair–contributing to both income and wealth inequality and exacerbating racial inequities–it makes it extremely challenging for Michigan to raise revenue for public goods and services we rely on to support the overall well-being of Michigan’s families and communities. That’s why the League and its partners have long championed a progressive income tax.

Despite the downward adjustments, this budget still gives us an opportunity to center Michigan’s people, improve health and educational outcomes for children and families, and help our workers build stronger economic foundations.

BACKGROUND:

The Michigan League for Public Policy has targeted key priorities for the 2024 state budget. Called “The People’s Budget,” the priorities target investments that will improve outcomes for Michiganders who struggle to make ends meet.

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The Michigan League for Public Policy, www.mlpp.org, is a nonprofit policy institute focused on opportunity for all. Its mission is to advance economic security, racial equity, health and well-being for all people in Michigan through policy change. It is the only state-level organization that addresses poverty in a comprehensive way.