2024 State of the State Address

Governor Whitmer delivered her 2024 State of the State Address last night focusing on proposals related to Lowering Costs, Improving Education and Making it in Michigan. Specifically, Whitmer proposed to improve access to vehicle rebates, increase housing investments, offer more family tax credits, move up the start date of the Great Start program, expand the Michigan Reconnect program and increase investment in economic development and infrastructure.

Lowering Costs

Whitmer proposed three main ways to reduce costs for Michiganders, including vehicle rebates, housing investment and family tax credits. The MI vehicle rebate proposal focuses on lowering the cost of buying a new vehicle by providing a $1,000 rebate for all cars and $2,000 for electric vehicles. The rebate would be in the form of immediate savings for customers when purchasing and an additional $500 rebate would be applied for union assembled vehicles. She also proposed that the Michigan State Housing Development Authority invest $1.4 billion in housing to create or rehabilitate homes. The Caring for MI Family tax credit would help offset the $7,000 average out-of-pocket expenses for persons with caregiver responsibilities with a $5,000 state income tax credit.

Improving Education

Whitmer called to move up the schedule for expanding the state’s Great Start Readiness Preschool program to all starting with the 2024-25 budget instead of the original 2026 target. Additionally, she proposed expanding the Michigan Reconnect program. Currently, the program applies to those 21 and over and provides two years of free community college with the state covering the cost. Under the new proposal, all high school graduates would qualify as long as they have lived in Michigan for a year prior to enrollment. The expansion would save students an average of $4,000. The current program is partially financed by expanding funding from federal coronavirus state aid that is no longer available. The governor’s office is expected to have more information on how the expansion would be financed when the budget is presented.

Making it in Michigan

The Governor proposed several action items related to economic development and infrastructure. To begin with, she called for action on legislation from 2023 to move forward with creating a research and development tax credit to spur innovation and lower business costs. Another proposal was focusing on Renaissance Zones to drive investment in areas that may be otherwise left behind by lowering the cost to do business in these areas. Additionally, Whitmer proposed an Innovation Fund to invest in start-ups and Michigan-based companies and the HIRE Michigan plan which lowers payroll taxes for small businesses.

Rebuilding Michigan

Whitmer also focused on her Rebuilding Michigan plan to authorize the final $700 million investment to fix the state’s most critical roads. The plan supports over 45,000 jobs and does not raise taxes. She touted that since she took office, Michigan has fixed 20,000 lane miles of road and 1,400 bridges. The final round of bonding will include 94 along the Detroit Airport, 696 from Southfield through Warren and bridges in Battle Creek, Grand Rapids, and Erie Township.

Republican Response

House Minority Leader Matt Hall and Senate Minority Leader Aric Nesbitt met with the press before and after the Governor’s address. Each called it the most partisan speech they can remember, suggesting that the Governor’s priorities were more tailored to national democrat constituencies than local needs. They also pointed to the report of the recent Whitmer tapped population growth council as evidence that the current administration strategy was not working.

Revenue Estimating Conference Official Revenue Forecasts Announced

In other news, the January Consensus Revenue Estimating Conference was held earlier this month and included presentations focusing on state and federal economies and state government revenues. Official revenue forecasts were established for fiscal years 2024, 2025, and 2026 by a consensus of the conference principals including the State Treasurer, the Director of the Senate Fiscal Agency, and the Director of the House Fiscal Agency. Overall Revenue Forecasts are listed below:

Revenue estimates are based on the most recent economic projections and forecasting models.