Both the Michigan House and the Senate have approved budgets that continue to fail to address the inadequacy of the state’s tax revenue. Over the past several years, budgets have been largely silent on the need for revenues. Instead, lawmakers prioritized tax cuts and budget shifts instead of investing in the things Michigan businesses and residents really need—safe roads, quality K-12 education and skilled workers. And the 2020 budget proposals currently before the Legislature do not change this.
When adjusted for inflation, combined state General Fund and School Aid Fund revenues fall short of the levels from 20 years ago. In fact, inflation-adjusted school revenues are below 1995 levels when Proposal A was put in place, and inflation-adjusted General Fund revenues are below 1968 levels when the state personal income tax was implemented. And while Michigan’s needs in infrastructure, education and other areas have continued to grow, tough choices have been made as the costs of providing basic services have gone up.
Raising taxes is the one tough choice that House and Senate leaders have been unwilling to make at this point in the budget process. Gov. Gretchen Whitmer’s budget included significant revenue increases to help improve and maintain the state’s roads and other infrastructure and to improve the K-12 education system, while aligning funding streams and providing increases to other key areas of the budget. Instead, the House and Senate relied on dangerous cost cutting and revenue shifts in order to cobble together a still-inadequate budget for 2020.
What follows is where each of the budgets stand on revenues and more equitable tax changes as of July 2019.
Gas Tax/Road Funding:
- Governor: The governor proposed increasing Michigan’s fuel tax by 45 cents per gallon, phased in over one year. This alone would bring in an additional $1.3 billion for the next budget year and then $2.5 billion more per year thereafter. When combined with the reversal of the income tax earmark that was put in place in the 2015 road plan, the proposal would net about $2 billion more for roads than under current budget projections. While existing fuel taxes and registration fee revenues would continue to be distributed under current law (with grants to county road commissions, cities and villages, and for state trunkline roads following other allocations), the new revenues would be distributed under a new formula that accounts for the functional classification of the road (for example, freeways, highly-traveled non-freeway routes, local roads that are less traveled and local bridges).
- Senate: The Senate rejected the fuel tax increase as well as the reversal of the 2015 road plan earmark and did not address new road funding as part of their budget proposal.
- House: The House rejected the fuel tax increase as well as the reversal of the 2015 road plan earmark. Instead, the House proposes to eliminate the state sales tax on fuel—a tax which in part helps pay for schools and local community services—over two years and creates a new road-dedicated tax. This would raise nearly $550 million the first year, falling far short of the money needed—and what the governor’s budget raised—to help improve and maintain Michigan’s roads.
Michigan Earned Income Tax Credit:
- Governor: The governor proposed doubling the Michigan Earned Income Tax Credit (EITC) from 6% of the federal credit to 12% of the federal credit over two years. The state EITC is a bipartisan, pro-work policy that helps boost families out of poverty and has long-lasting benefits for children in families that receive it. In tax year 2017, about 748,500 families received the credit, at an average of about $150 that year. Doubling the EITC would boost after-tax incomes for many working families, while at least partially offsetting the higher fuel taxes proposed.
- Senate and House: Both the Senate and House did not include any increase in the EITC in its budget.
Reinstating Preferential Treatment for Retirement Income:
- Governor: The governor recommends reinstating the senior tax preferences that were in place prior to the 2011 tax shift. As part of the tax shift, Michigan retirees started paying taxes on a portion of their retirement income based on their age instead of based on the type of income. The governor recommends reverting back to the tax treatment prior to the shift, while allowing taxpayers older than 67 an option either to deduct their retirement income or claim a deduction against all of their income as they currently do in order to ensure that no Michigan retiree sees a tax increase—at a cost of $355 million for the first full year.
- Senate: The Senate does not include this tax change in its budget.
- House: The House does not include this tax change in its budget. However, this tax change was one of the first bills to be considered and passed by the House Tax Policy Committee, and it currently sits before the House Ways and Means Committee for further consideration.
Business Parity Tax:
- Governor: The governor recommends increasing taxes on some pass-through business entities, creating parity with businesses currently paying the Corporate Income Tax (CIT). Currently, C-Corporations—traditional corporations—pay a 6% CIT while income earned by pass-through entities, such as Limited Liability Corporations (LLCs), S-Corporations and Partnerships, are passed through to their owners for tax purposes and are thus currently taxed at the lower personal income tax rate. The governor proposes that all businesses be subject to a 6% tax rate, with some credits and deductions to protect small businesses and owners.
- Senate and House: Both the Senate and House do not include the business parity tax.
State Funding Shell Game:
- Governor: The governor proposes ending the funding shell game, ensuring that roads are funded by dedicated transportation funds and School Aid dollars are used to pay for preschool through community college. The governor would end the practice put in place by the 2015 road plan that dedicated up to $600 million in state General Fund dollars to roads. By ending this shift, the more recent practice of partially paying for aid to state universities out of the School Aid Fund—to the tune of $4.5 billion since 2010—would also end, and additional resources would be available to invest in Michigan K-12 students.
- Senate: The Senate continues the implementation of the 2015 road funding plan. Additionally, the Senate continues to partially pay for aid to state universities out of the School Aid Fund.
- House: The House continues the implementation of the 2015 road funding plan. The House also eliminates the sale of fuel from the sales tax, which would decrease revenues to local communities through revenue sharing and schools. However, the House proposes ending the practice of using School Aid Fund dollars to partially pay for aid to state universities and would instead use state General Fund dollars for that state aid. In order to make enough state General Fund dollars available, the House proposes significant cuts to information technology as well as across-the-board budget cuts.
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.
