Projected $1B revenue loss creates Michigan budget issues – Washington Examiner
Michigan is projected to face a nearly $1 billion revenue loss due to tariffs and economic uncertainty, which could complicate the state’s budgetary plans. Republican Representative matt Maddox expressed satisfaction with this situation, suggesting it would compel Democrats to reduce their proposed budget that increases spending by $3.5 billion compared to the last budget, citing concerns over tax increases. The Democrat-led Senate’s budget plan calls for $86 billion in spending, reflecting a significant rise from previous years. Maddox criticized the Democrats for their spending habits as Governor Gretchen Whitmer took office, arguing it could result in higher taxes for Michigan residents, especially if they do not have a clear strategy for dealing with the reduced revenue.
Projected $1B revenue loss creates Michigan budget issues
(The Center Square) – Michigan Rep. Matt Maddox said he’s happy the state is projecting a loss of nearly $1 billion in revenue due to tariffs and economic uncertainty.
The Republican from Milford believes the downfall over the next two years will force Democrats to cut a budget plan that increases spending by $3.5 billion over the last budget.
“I’m actually glad there will be less taxes collected by the state,” Maddock said in a statement after a recent Consensus Revenue Estimating Conference. “It forces the Democrats to do something they never do – cut budgets because we’re not going to let them increase taxes.”
The Democrat-majority Senate’s plan pushes $86 billion in spending, a more than 4% jump over last year and a nearly $30 billion increase from 2019 when Gov. Gretchen Whitmer first took office.
That comes following a revenue report that painted a gloomy picture based on on-again, off-again tariffs and economic concerns surrounding fiscal policies put in place by President Donald Trump.
Union auto workers and Michigan Republican lawmakers have said the tariffs will revive the state’s auto industry and boost Michigan-made automobiles.
Industry leaders, along with Democrats, however, have warned they will drive up prices and cost Michigan workers jobs.
Maddox says the proposed lack of revenue, combined with the proposed budget, can only lead to a tax increase.
“The state budget has grown by $28 billion since Whitmer entered office,” Maddock said. “We had a $9 billion surplus in 2023, and the Democrats blew through it like they were sending it to Ukraine. Now, the Democrat Senate wants to increase the budget by another $3.5 billion without a transparent plan on how to fund it. It’s very clear their agenda is another tax hike on Michigan’s working class.”
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