By Jamie A. Hope
Michigan Capitol Confidential
Michiganders are a step closer to receiving an income tax cut after the state House passed legislation last week that would lower the tax rate from 4.25 percent to 4.05 percent.
House Bill 4170 cleared the lower chamber on March 18 with a vote of 65-43.
Seven Democratic lawmakers voted for the bill to cut the rate: Reps. Kelly Breen of Novi, John Fitzgerald of Wyoming, Matt Koleszar of Plymouth, Denise Mentzer of Mt. Clemens, Reggie Miller of Van Buren Township, Angela Witwer of Delta Township, and Mai Xiong of St. Clair Shores.
The legislation, introduced by Kathy Schmaltz, R-Jackson, would also make the income tax rollback permanent — something Gov. Gretchen Whitmer prevented in 2023. The state at that time took in so much money from Michigan taxpayers that a revenue-based trigger in state law resulted in an automatic reduction in the tax rate. The Whitmer administration successfully fought to limit that relief to a single fiscal year.
“People need relief, and they need it now,” Schmaltz said in a press release.
When state government collects more money than it needs, Schmaltz said, that money should go back to taxpayers.
“Michigan collects a lot more revenue from taxpayers than it did prior to the pandemic,” James Hohman, fiscal policy director at the Mackinac Center for Public Policy, told Michigan Capitol Confidential in an email.
He added that the state’s increase in revenue has been in line with the rest of the country. Yet, unlike Michigan, most states have already lowered tax rates in response to revenue growth.
In 2007, then-Gov. Jennifer Granholm and the Legislature raised the personal income tax rate from 3.9 percent to 4.35 percent.
In 2015 Gov. Rick Snyder signed into law a bill that required the income tax rate to be reduced to 4.05 percent if growth in the state’s general fund exceeds the inflation rate. This happened in 2022, and the income tax rate fell for 2023.
Whitmer and Attorney General Dana Nessel prevented a permanent reduction of the personal income tax rate to 4.05 percent.
The Mackinac Center filed a lawsuit to preserve the lower income tax rate.
The Michigan Court of Appeals ruled in favor of the governor, and the Michigan Supreme Court refused to hear the case.
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Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.
Michigan Capitol Confidential
Michiganders are a step closer to receiving an income tax cut after the state House passed legislation last week that would lower the tax rate from 4.25 percent to 4.05 percent.
House Bill 4170 cleared the lower chamber on March 18 with a vote of 65-43.
Seven Democratic lawmakers voted for the bill to cut the rate: Reps. Kelly Breen of Novi, John Fitzgerald of Wyoming, Matt Koleszar of Plymouth, Denise Mentzer of Mt. Clemens, Reggie Miller of Van Buren Township, Angela Witwer of Delta Township, and Mai Xiong of St. Clair Shores.
The legislation, introduced by Kathy Schmaltz, R-Jackson, would also make the income tax rollback permanent — something Gov. Gretchen Whitmer prevented in 2023. The state at that time took in so much money from Michigan taxpayers that a revenue-based trigger in state law resulted in an automatic reduction in the tax rate. The Whitmer administration successfully fought to limit that relief to a single fiscal year.
“People need relief, and they need it now,” Schmaltz said in a press release.
When state government collects more money than it needs, Schmaltz said, that money should go back to taxpayers.
“Michigan collects a lot more revenue from taxpayers than it did prior to the pandemic,” James Hohman, fiscal policy director at the Mackinac Center for Public Policy, told Michigan Capitol Confidential in an email.
He added that the state’s increase in revenue has been in line with the rest of the country. Yet, unlike Michigan, most states have already lowered tax rates in response to revenue growth.
In 2007, then-Gov. Jennifer Granholm and the Legislature raised the personal income tax rate from 3.9 percent to 4.35 percent.
In 2015 Gov. Rick Snyder signed into law a bill that required the income tax rate to be reduced to 4.05 percent if growth in the state’s general fund exceeds the inflation rate. This happened in 2022, and the income tax rate fell for 2023.
Whitmer and Attorney General Dana Nessel prevented a permanent reduction of the personal income tax rate to 4.05 percent.
The Mackinac Center filed a lawsuit to preserve the lower income tax rate.
The Michigan Court of Appeals ruled in favor of the governor, and the Michigan Supreme Court refused to hear the case.
—————
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.
Michigan Sets Record for Food, Ag and Forestry Exports
Michigan’s agriculture-related exports set a new record in 2024, reaching $2.9 billion, according to the Michigan Department of Agriculture and Rural Development.
MDARD Director Tim Boring said that the new export figure represents a more than $282 million increase from 2023.
“Michigan farmers, food, and forestry workers are the best in the world,” Gov. Gretchen Whitmer said. “Our $2.9 billion in ag-related exports last year demonstrate that Michigan is the best place to grow and harvest products like sugar beets, soybeans, dairy, and wood. I’m committed to supporting local communities across Michigan, with investments to support farmers, build agricultural diversity, and grow economic opportunity and rural prosperity. Let’s keep getting it done.”
Michigan is the most agriculturally diverse state with regular access to water, resulting in a wide range of exported products. From bulk corn to snack products, dried fruit and dairy products, the goods produced in Michigan vary greatly. The demand for high-quality Michigan products continues to grow in local, domestic and international markets.
“This record-breaking success for our agriculture, food and forestry companies proves Michigan ag brings high-quality products to the table that are in high demand domestically and internationally,” Boring said. “With so much uncertainty caused by new tariffs, these record numbers serve as an example of the economic prosperity we can foster with the right support and a level playing field. We’re proud to support Michigan farmers and producers as they expand their markets.”
Overall, processed food products represented the highest total value of Michigan’s food, agriculture, and forest products in 2024 at $636 million. The other top categories are sugar beet, soybean, soybean residue, brewing waste and animal feed at $393 million, dairy products at $303 million, pasta, bread and other starches at $285 million, and wood and articles of wood at $252 million.
The top five export markets for Michigan's ag-related products in 2024 were Canada at $1.25 billion, Mexico at $452 million, South Korea at $174 million, Japan at $154 million, and China at $150 million.
MDARD’s International Marketing Program works to assist Michigan food, agriculture, and forestry businesses in developing domestic and international market opportunities. These opportunities include trade shows, buyers missions, trade missions, market research, and more.
MDARD Director Tim Boring said that the new export figure represents a more than $282 million increase from 2023.
“Michigan farmers, food, and forestry workers are the best in the world,” Gov. Gretchen Whitmer said. “Our $2.9 billion in ag-related exports last year demonstrate that Michigan is the best place to grow and harvest products like sugar beets, soybeans, dairy, and wood. I’m committed to supporting local communities across Michigan, with investments to support farmers, build agricultural diversity, and grow economic opportunity and rural prosperity. Let’s keep getting it done.”
Michigan is the most agriculturally diverse state with regular access to water, resulting in a wide range of exported products. From bulk corn to snack products, dried fruit and dairy products, the goods produced in Michigan vary greatly. The demand for high-quality Michigan products continues to grow in local, domestic and international markets.
“This record-breaking success for our agriculture, food and forestry companies proves Michigan ag brings high-quality products to the table that are in high demand domestically and internationally,” Boring said. “With so much uncertainty caused by new tariffs, these record numbers serve as an example of the economic prosperity we can foster with the right support and a level playing field. We’re proud to support Michigan farmers and producers as they expand their markets.”
Overall, processed food products represented the highest total value of Michigan’s food, agriculture, and forest products in 2024 at $636 million. The other top categories are sugar beet, soybean, soybean residue, brewing waste and animal feed at $393 million, dairy products at $303 million, pasta, bread and other starches at $285 million, and wood and articles of wood at $252 million.
The top five export markets for Michigan's ag-related products in 2024 were Canada at $1.25 billion, Mexico at $452 million, South Korea at $174 million, Japan at $154 million, and China at $150 million.
MDARD’s International Marketing Program works to assist Michigan food, agriculture, and forestry businesses in developing domestic and international market opportunities. These opportunities include trade shows, buyers missions, trade missions, market research, and more.
State Grant Funds Zeeland Adult Ed High School Completion
By Greg Chandler
Zeeland Record
The Zeeland Public Schools’ adult education program has received a $31,500 state grant to help adults who do not have a high school diploma get started in career training programs that lead to good-paying jobs.
Zeeland is one of 15 adult education programs across the state to receive grant funding from the Michigan Department of Labor and Economic Opportunity for its Michigan Adult Education 23+ High School Diploma Program.
The 23+ grant serves all students who are enrolled in the Zeeland adult education high school completion program who are 23 years of age and older. That includes inmates at the Ottawa and Allegan county jails who attend classes virtually, ZAE program director Michael O’Connor wrote in an email to the Zeeland Record.
“The high school completion office staff and career coaches work with area high school and alternative high school counselors in Ottawa and Allegan counties to enroll students who have left those programs prior to completion to transition to the ZAE program,” O’Connor wrote in a grant application narrative.
The 23+ grant will supplement another state adult education grant known as Section 107. O’Connor wrote that the new grant could serve up to 50 students, depending on how many of the seven program benchmarks each student completes.
“For example, we get reimbursed for $500 for each student who completes an employability skills certificate equal to at least one unit of high school credit obtained through classroom or online instruction. We get reimbursed $1,000 for each student who attains a high school diploma,” O’Connor wrote.
Each of the grant recipients will provide a variety of services to Michigan’s adult learners who are 23 or older, including dropout reengagement services, academic intake assessments and integrated learning plans. They will also offer remediation coursework, employability skills development and career training leading to an industry-recognized credential.
“Earning a high school diploma is a critical first step to the degrees and certifications Michiganders need to secure good-paying jobs that lead to financial security and stability for themselves and their families,” LEO Director Susan Corbin said in a news release. “The Adult Education 23+ High School Diploma Program helps us deliver on our mission to remove barriers and help Michiganders on their pathway to economic prosperity.”
More than 600,000 Michigan adults do not have a high school diploma. Michiganders with a high school credential can earn more than $7,600 more per year than those without one. And those with a two-year degree can earn $24,500 more per year than those without.
Zeeland Adult Education offers high school completion courses Monday through Thursday mornings from 9 to 11:30 a.m. and Monday through Wednesday evenings from 5:30 to 8 p.m. at the Midtown Center, 96 W. 15th St., Suite 101 in Holland. It also offers classes virtually by appointment with the oversight of a teacher.
For more information, visit zps.org/schools/programs/adult-ed.
Zeeland Record
The Zeeland Public Schools’ adult education program has received a $31,500 state grant to help adults who do not have a high school diploma get started in career training programs that lead to good-paying jobs.
Zeeland is one of 15 adult education programs across the state to receive grant funding from the Michigan Department of Labor and Economic Opportunity for its Michigan Adult Education 23+ High School Diploma Program.
The 23+ grant serves all students who are enrolled in the Zeeland adult education high school completion program who are 23 years of age and older. That includes inmates at the Ottawa and Allegan county jails who attend classes virtually, ZAE program director Michael O’Connor wrote in an email to the Zeeland Record.
“The high school completion office staff and career coaches work with area high school and alternative high school counselors in Ottawa and Allegan counties to enroll students who have left those programs prior to completion to transition to the ZAE program,” O’Connor wrote in a grant application narrative.
The 23+ grant will supplement another state adult education grant known as Section 107. O’Connor wrote that the new grant could serve up to 50 students, depending on how many of the seven program benchmarks each student completes.
“For example, we get reimbursed for $500 for each student who completes an employability skills certificate equal to at least one unit of high school credit obtained through classroom or online instruction. We get reimbursed $1,000 for each student who attains a high school diploma,” O’Connor wrote.
Each of the grant recipients will provide a variety of services to Michigan’s adult learners who are 23 or older, including dropout reengagement services, academic intake assessments and integrated learning plans. They will also offer remediation coursework, employability skills development and career training leading to an industry-recognized credential.
“Earning a high school diploma is a critical first step to the degrees and certifications Michiganders need to secure good-paying jobs that lead to financial security and stability for themselves and their families,” LEO Director Susan Corbin said in a news release. “The Adult Education 23+ High School Diploma Program helps us deliver on our mission to remove barriers and help Michiganders on their pathway to economic prosperity.”
More than 600,000 Michigan adults do not have a high school diploma. Michiganders with a high school credential can earn more than $7,600 more per year than those without one. And those with a two-year degree can earn $24,500 more per year than those without.
Zeeland Adult Education offers high school completion courses Monday through Thursday mornings from 9 to 11:30 a.m. and Monday through Wednesday evenings from 5:30 to 8 p.m. at the Midtown Center, 96 W. 15th St., Suite 101 in Holland. It also offers classes virtually by appointment with the oversight of a teacher.
For more information, visit zps.org/schools/programs/adult-ed.
MDHHS Seeks Input on Mental Health System
The Michigan Department of Health and Human Services (MDHHS) is asking for the input of persons served by, working in, and partners of Michigan’s public mental health system, of the performance of this system.
This system is made up of the state’s Community Mental Health (CMH) centers, the providers in the CMH network, and the public health plans (known as PIHPs) who oversee the use of the Medicaid dollars used by that system.
MDHHS is asking affected persons to take a moment to complete the online survey by 5 p.m. Monday, March 31.
This survey is entirely voluntary. Additionally, you do not have to provide your name nor any organization with which you are affiliated, reducing any concerns that you may have to speak your mind.
To make your responses helpful to MDHHS as it considers how to use the survey responses, we ask that you:
• Provide a full picture of your experience with the public mental health system. That means describing what needs to be improved and what is going well and how the system has benefited you.
• Describe your views about any proposals to move this system under the management of private health insurance companies. Because this survey is part of a process in which some policy makers and lobbyists are proposing such a change, MDHHS needs to know your views on this privatization proposal.
For more information or to find the link to the online survey visit Michigan.gov/BehavioralHealth.
This system is made up of the state’s Community Mental Health (CMH) centers, the providers in the CMH network, and the public health plans (known as PIHPs) who oversee the use of the Medicaid dollars used by that system.
MDHHS is asking affected persons to take a moment to complete the online survey by 5 p.m. Monday, March 31.
This survey is entirely voluntary. Additionally, you do not have to provide your name nor any organization with which you are affiliated, reducing any concerns that you may have to speak your mind.
To make your responses helpful to MDHHS as it considers how to use the survey responses, we ask that you:
• Provide a full picture of your experience with the public mental health system. That means describing what needs to be improved and what is going well and how the system has benefited you.
• Describe your views about any proposals to move this system under the management of private health insurance companies. Because this survey is part of a process in which some policy makers and lobbyists are proposing such a change, MDHHS needs to know your views on this privatization proposal.
For more information or to find the link to the online survey visit Michigan.gov/BehavioralHealth.
Consumers Approved to Clear Trees Near Lines
Consumers Energy will move forward with an aggressive plan to clear trees near power lines and strengthen the grid to deliver energy to nearly 2 million homes and businesses, under spending approved today to support the company’s Reliability Roadmap.
“We plan to roll up our sleeves and accelerate building the electric grid for the next generation,” said Greg Salisbury, Consumers Energy’s vice president of electric grid design. “We want our neighbors to know we will be working every day to make our system more reliable and more resilient to keep the lights on, even after the worst storms.”
Consumers Energy last Friday received approval from the Michigan Public Service Commission to perform line clearing work that directly improves electric reliability. Trees are the number one cause of power outages, and the company this year will clear trees along 8,000 miles of lines.
Consumers Energy also will create a modern, stronger and more resilient power grid in other ways:
• Infrastructure upgrades and proactive maintenance planning to find, fix and prevent issues to help the grid’s reliability and lower costs.
• More technology investments to detect and respond more quickly to power outages.
“We know our customers are counting on us to deliver energy more reliably. (This) plan approval gives us more resources to do important work that affects people directly,” said Chris Laird, Consumers Energy’s vice president of electric operations.
Consumers Energy is Michigan’s largest energy provider, providing natural gas and/or electricity to 6.8 million of the state’s 10 million residents in all 68 Lower Peninsula counties.
“We plan to roll up our sleeves and accelerate building the electric grid for the next generation,” said Greg Salisbury, Consumers Energy’s vice president of electric grid design. “We want our neighbors to know we will be working every day to make our system more reliable and more resilient to keep the lights on, even after the worst storms.”
Consumers Energy last Friday received approval from the Michigan Public Service Commission to perform line clearing work that directly improves electric reliability. Trees are the number one cause of power outages, and the company this year will clear trees along 8,000 miles of lines.
Consumers Energy also will create a modern, stronger and more resilient power grid in other ways:
• Infrastructure upgrades and proactive maintenance planning to find, fix and prevent issues to help the grid’s reliability and lower costs.
• More technology investments to detect and respond more quickly to power outages.
“We know our customers are counting on us to deliver energy more reliably. (This) plan approval gives us more resources to do important work that affects people directly,” said Chris Laird, Consumers Energy’s vice president of electric operations.
Consumers Energy is Michigan’s largest energy provider, providing natural gas and/or electricity to 6.8 million of the state’s 10 million residents in all 68 Lower Peninsula counties.
