Honigman Capitol Report

Governor's Office

Whitmer Attends Word Economic Forum Annual Meeting

Governor Gretchen Whitmer returned from a week-long trip to Switzerland, where she participated in the World Economic Forum Annual Meeting 2026 and engaged with business leaders.  During her visit, she met with several companies, including Switzerland Global Enterprise, Hilti Group, EMS-Chemie, Juice Technology AG, and OC Oerlikon, with the aim of strengthening relationships and securing jobs for Michigan's economy.  Whitmer emphasized the importance of Michigan's presence at such international forums, stating that it allows the state to advocate for investment and growth opportunities.  At the World Economic Forum in Davos, she took part in discussions on the future of electric vehicles, a panel with other state governors, and a session on the talent pipeline for advanced manufacturing.  Quentin Messer Jr., CEO of the Michigan Economic Development Corporation, highlighted the significance of these investment missions, noting that they demonstrate Michigan's commitment to competing on a global scale.

Committee News

Hall Proposes Work Project Funds for Budget Shortfall

House Speaker Matt Hall proposed using $644.9 million in work project cuts made by House Republicans to address a $788 million budget shortfall in the current fiscal year, which resulted from lower revenue collections.  Hall criticized the Democratic trifecta's spending and suggested that the funds could be redirected to fill budget gaps instead of being held for future use.  He opposed raising taxes or using the Rainy Day Fund, arguing that the budget shortfall was a result of legislative decisions rather than economic downturns.  Hall emphasized the need for better use of tax dollars and setting government priorities, aiming to return more money to taxpayers. During a press conference, Hall disputed the administration's claim that 70% of the work project funds were encumbered and could not be redirected to the General Fund.  He questioned the administration's oversight and management of these funds, citing a lack of clarity on the actual amount available.  Hall initially suggested saving $100 million of the work project money but later indicated that the final amount could be smaller.  Senate Appropriations Committee Chair Sarah Anthony countered that many work project funds were already allocated and could not be renegotiated, emphasizing the impact on organizations across the state. The House Democratic Fund criticized Hall for celebrating budget cuts that affected essential services, including prenatal and infant support programs, local food assistance, and funding for veterans and survivors of sexual assault.  Hall defended the cuts, arguing that they were necessary to eliminate waste, fraud, and abuse, and to prioritize road funding without raising taxes.  He highlighted the Consensus Revenue Estimating Conference's findings that Michigan's economy was stable, countering claims that the shortfall was due to external economic factors.

Election News

Gubernatorial Candidates Attend Northern Michigan Policy Conference

At the Northern Michigan Policy Conference, six leading gubernatorial candidates, including U.S. Rep. John James, Democratic frontrunner Jocelyn Benson, and independent candidate Mike Duggan, addressed business leaders, marking the first time all six appeared together. John James emphasized reducing government regulation and refocusing the Michigan Economic Development Corporation on retention, criticizing Lansing for waste and inefficiency. Despite being a Republican frontrunner, James has been less visible publicly, but recent negative ads and potential new candidates have increased his profile. Mike Duggan received the highest engagement score from attendees, praised for his effective communication and linking Detroit programs to state issues. Duggan criticized Michigan's inconsistent economic strategies and emphasized stability to attract national investment. Jocelyn Benson highlighted the importance of party unity and a comprehensive approach to economic development, including incentives, affordable housing, and education. Aric Nesbitt advocated for Right to Work, lower taxes, and reducing regulations, while emphasizing the importance of trades over traditional college paths. Tom Leonard supported licensure reciprocity and a favorable regulatory environment but was cautious about direct economic incentives while Mike Cox proposed eliminating the income tax and improving education, advocating for departmental cooperation to enhance economic development. Each candidate presented their vision for Michigan's future, addressing key issues like economic growth, education, and regulatory reform.

On Point

Press Release: January 2026 Michigan Property Tax Update

Looking Ahead

The primary for Governor continues to take shape with the exit of Lieutenant Governor Garlin Gilchrist on the Democratic Party side and the entrance of businessman Perry Johnson on the Republican Party side. The Lieutenant Governor’s switch means he will now compete in the upcoming endorsement convention for Secretary of State rather than compete in an August primary. Since his entrance, one candidate has ended his bid for the nomination, while rumors swirl about the possibility of another candidate dropping out this week.

Perry Johnson has stated he intends to spend $9 million of his personal money in 60 days to support his gubernatorial bid. He faces frontrunner John James, former Speaker of the House Tom Leonard, Senate Minority Leader Aric Nesbitt, and former Attorney General Mike Cox. Each nominee will face former Detroit Mayor Mike Duggan in the general election.