MichMash: Proposed state budget focuses on expanding access to education

In this episode: 

• Gov. Gretchen Whitmer released a $79 billion budget proposal in early February
• The proposed budget focuses on education, increasing per pupil spending and initiatives to expand access
• The budget also proposes $180 rebate checks to Michigan tax filers

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Gov. Gretchen Whitmer released a proposed $79 billion state budget in early February. Cheyna Roth spoke with Gongwer reporter Alyssa McMurtry to break down the budget and look at how democrats plan to utilize a $9 billion surplus.

Michigan K-12 budget has increased over the last few years, and this proposed budget continues more support, McMurtry said. Key parts of the budget included universal pre-kindergarten, free breakfast and lunch and increased mental health support. Questions also surround the funding source for many proposed projects.

“I think this particular budget is definitely, without a doubt, very education-focused. Not that the others haven’t been,” McMurtry said. “But I think this one, there’s a lot more universal opportunities that (Whitmer’s) pushing for, and just a lot more expansion of access.”

While the budget would increase per pupil funding, some people are critical of a 20% reduction in funding for all cyber charter schools, McMurtry said. Democrats control the Governor’s Office, House of Representatives and Senate, but approval of the budget is not guaranteed.

Measures in the budget would also provide tax relief for some Michigan residents, McMurtry said. Whitmer’s proposal seeks to eliminate Michigan’s retirement tax for public sector workers, and Republicans would like to see the private sector also included. The earned income tax credit, now called the Working Families Tax Credit, is currently at 6% but would expand to 30%.

“It’s interesting that this has not gotten through, we’ve seen a lot of support on both sides, even before the most recent midterm elections to expand it to 30%,” McMurtry said. “There was some talk about 20%, but I think both Democrats and Republicans landed at 30% at the end of the last legislative session.”

A part of the budget also includes $180 rebate checks to tax filers in Michigan, McMurtry said. The idea behind these checks is they will help lessen the state’s income tax reduction and also chip away at the $9 billion surplus. Republicans take issue with the money being spent this way, going back in constituents’ pockets. There’s also questions surrounding what impact $180 will have.

“I think it’s a very optimistic budget for the Democrats. It’s definitely filled with a lot of their hopes and dreams that they’ve had over the last few years,” McMurtry said. “But we will see how it goes, there’s a slim majority in both the House and Senate.”

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