2020 State Budget: Are the Granholm Years Back?

Date: April 24, 2019

Road Funding Standoff Could Mean Late Year Budget Session

Prior to the 2018 elections, when Republicans controlled both the legislature and the governor’s office, the state’s budget was completed before the summer recess. With Democrat control of the governor’s office, it remains to be seen if we will return to the Granholm era budget battles that lasted well into the fall.

In 2007, the budget was finally signed after a one-day government shut-down in October (Michigan’s fiscal year for budgets begins October 1 of each year). That 2007 budget agreement included a hike in the income tax and a new sales tax on services that was repealed 6 months later.

In addition to the uncertainty of a split government, both sides have publicly disagreed on whether the budget will include a road-funding proposal. Republican legislative leaders have said that any road-funding proposal would be handled separately from state budget negotiations while Governor Whitmer has threatened to veto any budget that does not include a road funding solution (the Governor has proposed a 45-cent gas tax hike). NFIB is opposed to the Governor’s proposal. Stay tuned.

Related Content: Small Business News | Economy | Michigan

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