Michigan lawmakers OK budget but can't get deal on tax cuts
LANSING, Mich. (AP) — Michigan lawmakers approved a state budget early Friday that increases money for education but delayed a decision on how to cut taxes, unable to yet bridge disagreement between Gov. Gretchen Whitmer and Republican legislative leaders.
Michigan is flush thanks to federal pandemic relief that fueled higher resident income and consumer spending, but the Democratic governor and the GOP-controlled Legislature disagree on how to cut taxes in response.
Lawmakers aimed to approve at least the K-12 state spending plan by the end of June, because it’s the start of school districts’ budget year. The state’s fiscal year doesn’t start until October, but fall elections created a strong incentive to wrap up budget planning by Friday.
The spending plan that passed both chambers was the result of broad budget talks between the governor and GOP lawmakers.
State Sen. Jim Stamas, a Republican from Midland who chairs the Senate's budget committee, said negotiators produced a spending plan making “significant investments to educate our children, improve our infrastructure, protect our communities, and build a stronger economy.”
Lawmakers approved a $450 per student increase in base funding for K-12 schools, about a 5.2% increase. The Michigan Department of Education said the $9,150 commitment per student marks the highest total in the state's history and Superintendent Michael Rice called the spending plan a “win” for Michigan kids.
“After years of school underfunding, the FY23 budget has the potential to be the budget to which we point in the future as the pivot point in the strengthening of public education in Michigan, the year when we made the most substantial strides toward adequate and equitable school funding,” Rice said in a statement.
Lawmakers also...