Honigman Capitol Report

Governor's Office

Governor Conducts Ceremonial Roads Deal Signing

Governor Gretchen Whitmer conducted a ceremonial signing of a $1.8 billion road funding deal, which was a major focus of this year's budget negotiations.  The event took place at a road construction site in Macomb County and included speakers such as House Speaker Matt Hall, Rep. Denise Mentzer, and Macomb County Executive Mark Hackel. The deal allocates $1 billion exclusively for roads by directing all state taxes paid at the fuel pump to road funding, removing the previous allocation to public schools and local government revenue-sharing.  Additionally, marijuana will be subjected to a new 24 percent wholesale tax, expected to generate $420 million annually.  Michigan has also decoupled from certain federal tax deduction practices under the One Big Beautiful Bill Act, allowing businesses to file for large federal tax deductions while maintaining state-level deductions over five years. This decoupling is projected to retain significant tax revenue for Michigan. The Michigan Cannabis Industry Association has filed a lawsuit against the state Treasurer, challenging the constitutionality of the new marijuana tax.  Hall suggested that if the tax is not upheld, further cuts could be made to address waste and inefficiencies in government. The road funding deal is expected to reach $1.9 billion annually once fully implemented, improving road conditions and reducing vehicle damage costs for Michigan drivers.   The deal also includes a $1.1 billion infusion into a new "Neighborhood Roads Fund" for local road projects, projected to exceed $2 billion by 2030.

Committee News

Senate Appropriations Committee Passes Earmark Request Bills

The Senate Appropriations Committee has advanced legislation requiring lawmakers to disclose and detail their special spending requests before budget bills are voted on.  The committee moved SB 596, sponsored by Senate Appropriations Chair Sarah Anthony (D-Lansing), and HB 4420, sponsored by Rep. Tom Kunse (R-Grant Township), which are tie-barred, meaning one cannot be implemented without the other.  SB 596 prohibits budget earmarks from funding for-profit entities or nonprofits without a stable operational history and mandates that legislatively directed spending items (“LDSI”) forms be posted online within five days of submission.   Anthony emphasized that these bills aim to modernize the budget process and enhance transparency and accountability.  However, House Speaker Matt Hall criticized Senate Democrats for their slower adoption of disclosure mandates, suggesting it led to a budget standstill. The hearing revealed differing interpretations between the House and Senate on processing LDSI requests, with questions about co-sponsorship and leadership decisions.

Election News

County Clerks Oppose Ranked Choice Voting

The Michigan Association of County Clerks (MACC) has unanimously voted on a resolution opposing the ranked choice voting (RCV) ballot measure proposed by RankMIVote, citing significant concerns about the complexity and administration of elections in Michigan.  The resolution highlights that RCV would introduce new and complex responsibilities for clerks, potentially leading to voter confusion, fatigue, and ballot-marking errors due to the mixed nature of ballots in Michigan, which include federal, state, county, city, township, school, and other questions.  Under RCV, voters rank candidates by preference, and ballots are counted in an instant runoff format, which could delay the determination of election winners.  The MACC, which rarely takes positions on ballot questions, felt compelled to oppose this measure, emphasizing the importance of timely and accurate election results to maintain public trust.  Kent County Clerk Lisa Posthumus Lyons expressed concerns that delayed results under RCV could erode public trust by fostering uncertainty and misinformation.  The statement from MACC also notes that RCV has led to weeks-long delays in other regions, diminishing voter confidence and creating opportunities for misinformation.  Implementing RCV would require Michigan clerks to manage multiple voting systems, necessitating additional training, new tabulation procedures, costly voter education campaigns, and specialized software.

On Point

Client Alert: Fifth Circuit Decision Puts NLRB’s Constitutional Structure in Doubt

Looking Ahead

Seven weeks of legislative days remain before the end of the year. The House has 18 days on the published calendar and the Senate has 20 days on its published calendar. Following the later-than-usual budget, the window for the House and Senate to move each other's bills is coming to a quick close. There are several legislative priorities waiting for action in each chamber, but both leaders have yet to publicly sign off on a plan to move bills. Only 26 bills have become public acts this legislative session. At this point last legislative session, the Governor had signed 148 bills into law.