MI GOP-Led Property Tax Bills Would Cut Taxes for the Wealthy, Defund Schools and Local Governments

Last month, a MI House Republican-sponsored package of bills (HBs 5872–5879) aimed at reforming property taxes passed the House. However, my Democratic colleagues and I were greatly concerned that this plan does not benefit working Michiganders. We must work to keep hard-earned dollars in homeowners’ pockets, but I believe this proposal is not the solution Michiganders deserve.

The Republican-led proposal is projected to create a $5 billion hole in Michigan’s budget, significantly reducing the funding needed for essential public services like public safety, road maintenance and our schools and libraries. Their proposal is tie-barred to legislation (HB 5880) that would create a new 6% excise tax on covered services, presumably to fill the funding gap. However, the bill does not specify which services this new tax would apply to, threatening a pathway for the state to raise taxes on everyday expenses.

I am concerned that this plan would most benefit the wealthy and big businesses, at the expense of Michigan consumers, public services and our public schools. Democrats are open to responsible property tax reform that does not come at the cost of kids, schools and public safety. With a billion dollars already lost from federal funding, another $5 billion deficit will only increase the budget pressure Michigan is facing. I believe this Republican package lacks clarity and transparency and puts Michigan services at risk, which is why I firmly voted no.

MI July 1 Budget Deadline Quickly Approaching

Under Michigan law, the state budget for the upcoming fiscal year must be passed and presented to the governor on or before July 1. This is not an arbitrary deadline. School districts and municipalities across Michigan begin their fiscal years on July 1. Schools are determining what teachers, classroom resources and programs they can afford for the year. City councils are planning their hiring and salary budgets for police and fire stations, transportation workers and emergency response teams.

Last year, House Republicans nearly shut the state down by not beginning the negotiating process or putting their budget up for a vote until the deadline, straining school districts and creating uncertainty for local governments.

It is my hope that Michigan can once again deliver a sensible budget on time that defends critical programs and services and invests in what people care about most: lower costs, health care, education, local communities and economies and our democracy. These will be my top priorities as the House, Senate and governor’s office work through a final, bipartisan and compromised budget over the coming days and weeks.

I will continue fighting for a state budget that represents the values of our community and makes Michigan a better, more affordable home for all. Stay tuned for future updates from my office as deliberations on the state budget continue.