In Budget, News Releases

For Immediate Release
May 20, 2022

Contact:
Alex Rossman
arossman@mlpp.org
517-775-9053

Budget surplus, subsequent spending priorities will be legacy-defining moment for Michigan leaders

The League urges responsible and sustainable tax relief like EITC expansion, key budget investments to tackle state’s greatest needs

LANSING—The Michigan League for Public Policy issued the following statement on the revenue projections announced at today’s Consensus Revenue Estimating Conference and the vital budget decisions now in the hands of Michigan policymakers. The statement can be attributed to League President and CEO Monique Stanton.

“Much like the pandemic itself, this revenue surplus is an inflection point in Michigan’s history and policymakers’ legacy. Our leaders can repeat past mistakes with broad tax cuts that mortgage the state’s future, or they can right previous wrongs by increasing the Michigan Earned Income Tax Credit and making long-overdue investments in our schools, our kids, our people, and our programs and services. Some Michiganders were hit hard by the pandemic and are still struggling, while some people are doing better than ever. They don’t need the same consideration in tax reform and budget decisions.

“Instead of significant, broad tax cuts that put federal aid and future budgets in jeopardy, Michigan policymakers should prioritize tax policies that are targeted to those most at need and investments that will help our kids and families now and help them continue to recover from the enduring public health crisis. We’ve seen firsthand the impacts of the pandemic which continue to create barriers to opportunity, especially for our Black and brown and rural residents. Current revenue projections allow us to create a forward-looking budget for Michigan that works for all of its residents by: moving toward a weighted school funding formula and increasing funding for our At-Risk program and kids with additional needs; improving access to affordable, safe housing and investing in our Housing and Community Development Fund, increasing funding for our local public health departments, and more.

“As budget and tax policy negotiations continue, the League will continue to advocate for reasonable, responsible and sustainable tax relief for families that need it most. A state EITC that’s 30% of the federal credit, as Republican Senator Wayne Schmidt’s Senate Bill 417 would establish, is still the goal and puts Michigan’s credit more on par with other states. More than 80 groups and policymakers from both sides of the aisle support the bill, and we hope that going forward, raising the EITC will continue to be a bipartisan priority.”

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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.