July 26, 2024 | This Week in Government: Whitmer Touts Public Safety Gains in Budget

DETROIT – Gov. Gretchen Whitmer signed the 2024-25 fiscal year budget Wednesday that included $9 million in line-item vetoes surrounded by top House and Senate Democrats, Detroit leaders, and public safety officials.

Whitmer touted the $82.52 billion ($14.88 billion General Fund) budget’s gains for public safety, housing, transportation, and other community supports. The budget takes effect on Oct. 1.

The items line-itemed vetoed on Wednesday were:

• A $3 million ethanol rebate for retailers;
• A $3 million grant for a development firm in Muskegon for rehabilitation of a historic manufacturing site to support housing;
• A $2.5 million grant for a competitive grant program to eligible nonprofit, faith-based organizations for affordable housing;
• A $250,000 grant for a nonprofit investment firm in Detroit designed to support ” historic building rehabilitation” was labeled “Tatiana Grant” in budget analysis documentation and
• A $425,000 grant for the Bridgeport gun range.

“What we have done here is create another balanced, fiscally responsible budget that doesn’t raise taxes by a dime but yet makes another deposit in our rainy day fund, which is at a new, all-time high of $2.2 billion,” the governor said. “We are responsible, yet making long-overdue investments in the things that matter and make people’s lives better. This budget also keeps rolling the retirement tax on our seniors, saving half a million households an average of $1,000 a year. And it puts an average of $664 back in the pockets of the 650,000 families with our quintupled working families tax credit.”

The Michigan Agri-Business Association and The Michigan Corn Growers Association expressed disappointment at the ethanol incentive veto.

“We are disappointed Gov. Whitmer vetoed a pro-agriculture, pro-environment, pro-consumer policy that had already been approved by the Michigan Legislature,” Chuck Lippstreu, president of the Michigan Agri-Business Association, said in a statement. “Promoting higher biofuel blends like E15 reduces our reliance on oil, supports the rural economy, reduces harmful emissions, and gives families more choices at the pump. Legislators were spot on to approve this boost for E15 fuels, and today’s veto by the governor was a missed opportunity.”

The $250,000 grant for the Detroit investment firm was reported on by The Detroit News, with the newspaper writing the funds were to rehabilitate a building in Detroit’s Jefferson-Chalmers neighborhood with disputed ownership and were designated for a community development financial organization that hadn’t actually committed to helping with the project.

In total, the 2024-25 fiscal year budget included $336 million in various grants for community projects and other items, along with $100 million for housing projects.

Whitmer signed SB 747 (PA 121) at Detroit Fire Department Engine House 52, which was the engine house where the father of House Speaker Joe Tate (D-Detroit) worked before he died in 1981 when Tate was just an infant. He was honored by officials like Detroit Mayor Mike Duggan during their remarks, and the budget’s public safety investments were not lost on Whitmer during her own.

“At its core, this budget is about safety, and that’s why we wanted to do this press conference here, to sign the budget here,” she said. “Since I took office, we’ve invested more than $1.5 billion to protect public safety. We’ve enacted common-sense gun violence prevention laws, universal background checks, secure storage, and stronger penalties for domestic abusers, known as ‘red flag’ laws. We’ve been able to invest significantly more in local public safety over the last few years, thanks to our federal partners in the Biden-Harris administration.”

The impact of those spending choices, Whitmer added, are results on the ground in places like Detroit and other cities across Michigan.

“In Detroit, we’re seeing better pay and staffing; initiatives to engage directly with communities; historically low levels of violence and lower response times,” Whitmer said. “There’s no question we still have a lot of good work to do together, but we are on the path. I’m thinking of young people who are looking at our leadership now, who are taking very seriously the trauma of gun violence in this country and the work that we’re doing to keep people safe.”

On the economic security front, Whitmer also praised the budget’s focus on economic development spending with money for startups and small business owners of color, the Going Pro program for continuing skills development, and the Economic and Worker Transition Office.

Whitmer turned the attention to the mass of road construction projects taking place across the state, saying, “You’re welcome,” asking those in attendance for their patience as major transportation lanes get upgraded and repaired.

Looking ahead, Whitmer said the state will be issuing the final $700 million bond for the Rebuilding Michigan plan next fiscal year, which will continue upgrades and repairs on vital highways and bridges.

Senate Majority Leader Winnie Brinks (D-Grand Rapids) said the budget ethos for the Democratic trifecta leading the executive office and the chambers of the Legislature last year was one of transformation. This year, it was one of continuation.

“Together, we are effectively building up Michigan’s future with unprecedented investments in our kids and families, from supporting maternal and infant health services to improving childcare costs. We are building up Michigan’s economy, from bolstering entrepreneurs and small businesses to revitalizing workforce development and retention to attract the best workers to our state,” Brinks said. “We are building up Michiganders’ savings by improving housing affordability and supporting tax assistance sites that help lower-income folks get their taxes not only prepared but help them access things like expanded earned tax credit. We’re building up Michigan communities and strengthening the places that we call home, financing public safety and our quality of life.”

That “building up” wasn’t just metaphorical, Brinks said, as a major focus of the 2024-25 budget rested on targeted infrastructure investments, roads, bridges, and water.

“Together, we carefully crafted this budget to build that Michigan’s youth and families, our economy and workers, our savings, our communities, our infrastructure, and most importantly, our future,” Brinks added.

Tate reflected on being in his father’s old firehouse, saying he was honored to be at the location to commemorate the signing of the budget.

“The budget represents our core values, including lowering costs so families can flourish, keeping residents safe, and creating affordable housing. Every hometown, from Detroit to Grand Rapids to the Upper Peninsula, will benefit from tens of millions of dollars to establish a Public Safety Trust Fund, $100 million for innovative housing programs, and tax relief for families,” Tate said. “With the passage of this budget, we are making transformative investments for every main street, and every household in Michigan continues to be on a stronger and brighter path. This budget is a plan built with you in mind.”

Tate added that the budget prioritizes funds for local communities to keep life more affordable, along with directing more dollars for public safety to keep neighborhoods and streets safe.

“We are injecting dollars directly into projects, organizations, and services so that residents experience a direct benefit from their tax dollars,” he said. “We are making smart and fiscally responsible decisions to deliver for Michigan voters because we are committed to putting people first. This is what is possible with the Democratic trifecta in Michigan.”

Republican officials did not agree with Tate’s assessment.

“There (is) a litany of reasons why it’s crucial Republicans take back the House this November, but you don’t have to look much further than Whitmer’s disastrous budget. It provides the perfect summary of what total, radical liberal governing looks like and fails to deliver for Michiganders,” Michigan Republican Party Chair Pete Hoekstra said in a statement. “This budget uses taxpayer dollars to push the job-killing electric vehicle transition, forces green energy mandates, cuts funding for school safety and mental health, and puts money towards e-bike incentives instead of fixing our crumbling local infrastructure.”

Hoekstra also took aim at Whitmer’s rumored presidential ambitions, adding, “Michigan needs a budget that supports our students, teachers, roads, and jobs. We need a budget that supports Michigan—not future talking points for a California presidential primary.”

Rep. Andrew Beeler (R-Port Huron), in a statement, said that the new budget crafted largely by the Democratic trifecta “prioritizes wasteful pet projects for politically favored communities instead of delivering the public services that Michigan taxpayers expect from the state government.”

“The state budget should responsibly address the needs of the entire state of Michigan, such as fixing broken roads and keeping our neighborhoods and schools safe. Democrats’ priorities lie elsewhere,” Beeler said. “Their giant budget, funded by their recent income tax hike, managed to inject cash into pet projects in a few favored communities like Detroit and Lansing. But the Democrat trifecta couldn’t be bothered to distribute any extra statewide resources to help every community repair their city streets and rural roads, and they chose to axe hundreds of millions in school safety funding. Kids struggle to read, and drivers can’t navigate pothole-riddled roads, but at least casino-goers in Detroit’s Greektown will have taxpayer-funded Wi-Fi.”

House Republicans outraised House Democrats by about $400,000 during the second quarter of 2024 and head into the next stage of the election with roughly $600,000 more on hand, pre-primary campaign finance filings due Thursday showed.

The GOP brought in $2.06 million during the period and spent $335,698. Combined with the caucus’ previous balance, House Republicans are going into August with just more than $7 million on hand. Roughly $50,000 of the fundraising haul came from interest income on a Comerica Bank account.

The July statements covered April 21 through July 20.

The Michigan House Democratic Fund brought in $1.6 million and spent $481,240 during the same period. That leaves the caucus with $6.4 million cash on hand.

Official caucus PACs paint just some of the picture of election spending with outside groups and individual candidates spending as well. Just this week, the Democratic Legislative Campaign Committee announced it would put $1.14 million behind the Democrats seeking to keep control of the House.

Still, as the House Democrats hold a slim majority, both parties are all-in on the chamber and in a tight competition when it comes to money.

Top donors for House Republicans included the Friends of Matt Hall PAC, the Kunse Majority Fund and the Matt Hall Majority Fund. Seven members of the DeVos family gave $48,875, as did Ron Weiser and Steven and Amy Van Andel, who contributed separately.

House Republicans received 300 contributions compared to 526 for the House Democrats.

“Michiganders recognize the need for a future House Republican majority to serve as a check and balance on the Democrats’ extreme race to the left,” HRCC Chair Rep. Bill Schuette said in a statement. “You can see this reflected by the continued investment in our caucus and another impressive fundraising quarter. These strong fundraising numbers ensure we will have the resources we need to communicate our message effectively over the next 102 days. House Republicans have been and will continue to do the work needed to win. We will sprint through the tape, working every day to earn the trust and votes of people across Michigan.”

In recent weeks, House Democrats saw Rep. Felicia Brabec (D-Pittsfield Township) and Rep. Penelope Tsernoglou (D-East Lansing) take over as campaign co-chairs after Rep. Samantha Steckloff (D-Farmington Hills) stepped down from the position.

Democrats pointed out that the amount of money raised this quarter exceeded their fundraising goal and the amount they brough in during the second quarter of 2022, which was $907,000.

“This is an incredibly exciting time. We are making gains in comparison to benchmarks from this time last year and also last election cycle,” Brabec said in a statement. “I believe this is an indication of the enthusiasm for our candidates and their respective races as well as the dedication to the work that lies ahead in maintaining and growing our Democratic majority.”

Top donors for the caucus included the Michigan Democratic State Central Committee, the Michigan Senate Democratic Fund, the Michigan Legacy PAC and Democratic megadonor George Soros. Other top contributors included tech entrepreneur Dug Song and his wife, who is active in various nonprofit organizations, Linh Song, and the Committee to Elect Jenn Hill.

House Speaker Joe Tate (D-Detroit) said that Democrats’ messaging was resonating with voters and donors.

“Our supporters and voters are unified and ready to continue the work that lies ahead in both maintaining and growing our Democratic majority,” he said in a statement. “Our message is one that continues to resonate with Michiganders and many others across the country as well. We’re focused on continuing to deliver for everyday Michiganders in every corner of our state.”

House Republicans also announced additions to their campaign team with Rep. Rachelle Smit of Shelbyville as HRCC vice chair, Rep. Mike Harris of Waterford, Rep. Pauline Wendzel of Watervliet, Rep. Luke Meerman of Coopersville and Rep. Joe Aragona of Clinton Township on the finance team; Rep. Jay DeBoyer of Clay, Rep. Phil Green of Watertown Township and Rep. Angela Rigas of Caledonia Township on the candidate team; Rep. Mike Hoadley of Au Gres, Rep. Brian BeGole of Perry and Rep. Ken Borton of Gaylord handling member engagement; and Rep. Bryan Posthumus of Cannon Township, Rep. Ann Bollin of Brighton and Rep. Patrick Outman of Six Lakes handling policy.

House Minority Leader Matt Hall of Richland Township, referencing the House Democrats shake up in campaign team leadership, said in a statement House Republicans are getting stronger.

DETROIT – Michigan’s legislative leaders on Wednesday said the respective appropriations committees in the House and Senate would ultimately parse the merits of using the Strategic Outreach and Attraction Reserve (SOAR) Fund to keep jobs in Michigan instead of attracting them.

Senate Majority Leader Winnie Brinks (D-Grand Rapids) and House Speaker Joe Tate (D-Detroit) answered questions about the SOAR fund following Gov. Gretchen Whitmer signing the $82.52 billion ($14.88 billion General Fund) fiscal year 2024-25 budget in Detroit.

Questions abounded about the use of the funding and its stated purpose moving forward after the Michigan Strategic Fund Board approved a $120 million grant as part of an incentive package for Dow Chemical Company to make a $758 million investment in expanding and modernizing its operations, while also retaining thousands of jobs (See Gongwer Michigan Report, July 23, 2024).

Brinks was asked if she supported that approach and if she thought it would get support from the legislative appropriations committees that would ultimately approve the funding.

The Senate majority leader said she wasn’t going to speculate on what they would do “about something we just learned about.”

“We’ll certainly take it into consideration if it complies with the law, it will get a fair hearing, and we’ll see where we might land,” Brinks said.

Several bills seeking to reform SOAR – HB 5768, HB 5769, HB 5770, SB 559, and SB 562 – do not appear to prohibit the use of the funding to protect jobs from leaving Michigan.

Asked again if that concept should be extended in the legislation, Brinks said her chamber would “consider it on its merits.”

On whether SOAR, in theory, should be allowed to save jobs instead of getting new jobs into the state, Brinks said if SOAR was an appropriate tool for the Dow project and complied with the law as passed, she again said it would get a fair hearing.

Tate said it depended on the project.

“It’s obviously something that we’re going take a look at. With what the MSF board has approved, whether it’s a certain region of the state, the tools that we have (it all has) are to be looked at project by project,” Tate said. “I think it’s going to depend on … what is offered on their end and what benefit it provides to the state.”

Officials said Tuesday a federal infrastructure funding law passed by Congress has made a positive difference in Michigan, while adding that it should be renewed and more can be done to improve access to grant program funding.

“These projects are indeed transformational, and we strongly encourage these programs to continue in reauthorization. The need is great,” said Amy O’Leary, executive director of the Southeast Michigan Council of Governments.

Testimony by O’Leary and others came during a field hearing chaired by U.S. Sen. Gary Peters (D-Bloomfield Township) of the U.S. Senate Commerce Subcommittee on Surface Transportation, Maritime, Freight and Ports. It was held inside the city council chambers at Lansing City Hall.

Peters said the bill has led to spending on more than 500 projects in Michigan.

“Those investments have already made an impact here in Michigan … and those investments have created thousands of good-paying jobs,” Peters said. “These projects aren’t just building new infrastructure. They’re also improving public health, economic development, the future of clean energy, and so much more. And we’re just beginning to see the full effect of this legislation.”

Officials testified about the effects of the Infrastructure Investment and Jobs Act, known as the Bipartisan Infrastructure Law, which passed Congress in 2021. It authorized $1.2 trillion in infrastructure spending nationally.

The Michigan Infrastructure Office, created after its passage, is working with various state agencies and departments to disburse the monies, with the state expected to receive about $11 billion by 2026.

Michigan Department of Transportation Director Brad Wieferich said the federal bill has “been a boon for Michigan in many ways.”

Wieferich said the federal highway funding provided to Michigan totals about $8 billion, of which about $2.2 billion is new highway funding.

“The IIJA provides five years of certainty and planning,” Wieferich said. “That makes it possible for MDOT to implement one billion dollars in additional projects over the five years of the authorization, and we all know that some transportation projects can take many years to bring from the planning table through to construction and really having that predictable, sustainable funding source is vital to our planning processes.”

He pointed to key road projects in the state, including the Interstate 375 project in Detroit, a bridge replacement in Bay City, as well as major projects in Grand Rapids and Traverse City.

“You cannot go wrong investing in infrastructure, particularly our marine highways,” Paul LaMarre III, president of the American Great Lakes Ports Association and director of the Port of Monroe, said. “The infrastructure bill itself, for the first time in a long time, really gave legitimacy to ports and what we do.”

InvestUP Chief Executive Officer Marty Fittante highlighted several major Upper Peninsula projects. He also repeatedly stressed that rural communities struggle with competing for federal grant monies, and the local match requirements can often be a hurdle.

“We believe we are at an intersection in time and poised to grow … but to prosper, we need more friendly federal programs,” Fittante said.

Michigan Laborers Local 1191 Business Manager Mike Aaron said the infrastructure law has led to important projects and has guaranteed good paying jobs for workers for those including those he represents.

“From my perspective, the package was an easy piece of legislation for Local 1191 to get behind,” Aaron said. “It positively impacts every facet of my membership’s day-to-day lives.”

Those testifying added there could be improvements in any future reauthorization of the law.

O’Leary said one of the biggest challenges of the infrastructure law is providing the ability and capacity to access the funds.

“Communities can’t afford $20,000 to $100,000 to apply for a grant … to not be successful, and that happens, but it’s a lot of money,” O’Leary said.

Wieferich said the law allowed MDOT to schedule projects that otherwise would not have been scheduled.

“We need to make sure the investment continues so that we do have that long-term look for planning and efficiency,” Wieferich said.

Peters told reporters that the infrastructure law has spurred many successes, but there is still significant work to be done.

“I’m cautiously optimistic that we’re going to continue to be able to make these kinds of investments,” Peters said. “This is something that should bring us all together, and I hope it will.”

The lone Democratic U.S. Senate primary debate was canceled fewer than 48 hours before it was set to take place, with the host station’s president pushing back on the Hill Harper campaign’s recent demands for format changes to the event.

In a Wednesday statement, WHPR-TV President and Chief Executive Officer R.J. Watkins announced the cancellation, calling the Harper campaign’s demands an effort to avoid the lone primary debate.

On Monday, the Harper campaign sent a letter to Watkins, expressing disappointment in not having a Black woman reporter serve on the debate panel and questioning the makeup of the debate panel in a majority Black city in the state’s largest media market.

“Black women deserve a seat at the table. Period,” the Harper campaign wrote. “To not have ONE serving on your panel is an oversight that we would not expect from a majority Black-owned television station located in a majority Black-owned city serving our community.”

The Harper campaign also questioned the timing of the debate because absentee ballots were sent out weeks ago and criticized the debate being streamed without video and without a live audience. The campaign also alleged that members of the press were not being granted access to the debate.

“These restrictions are an outrageous affront to our democracy and voter participation in the democratic process. It must not stand,” the campaign wrote.

Harper’s campaign stated that if the format changes were not made by noon Thursday, Harper would be urged not to participate.

Watkins, in a lengthy statement issued Wednesday afternoon through a press release, said the rules and format of the debate were clearly laid out when Harper and U.S. Rep. Elissa Slotkin of Holly were invited to participate last month.

“We thought we had an agreement; however, our efforts have been met with confusion, division, and hurtful disappointment,” Watkins said. “The fact that Mr. Harper has unfairly attacked one of Detroit’s only Black-owned TV stations is disgusting and deeply offensive. We will remain a critical source of information for our community and will continue creating quality content and hosting impactful conversations.”

He added that Harper had never raised the issue of having a Black woman serve on the moderator panel, and if he had, they would have agreed.

“To now demand new terms, including a live audience, just four days before the debate is less about our format and appears to be a tactic to avoid the only confirmed debate in this primary,” Watkins said.

Further, Watkins said the decision not to have a live audience was made to avoid potential distractions from a crowd while discussing serious issues facing the Black community. He added that the station was in contact with reporters from multiple outlets about covering the debate from the station.

Harper campaign spokesperson Greg Bowens told Gongwer News Service the matter of not having a Black woman reporter on the moderator panel had been raised by a group of Black women leaders from Detroit. Bowens said the campaign chose to raise concerns with WHPR and stands by its efforts.

Bowens also reiterated the concerns over the moderator panel not having a Black woman, the lack of a live audience, and the timing so close to the election.

“This is not a debate, this is a sham,” Bowens said.

Slotkin campaign spokesperson Antoine Givens thanked the station for its efforts to schedule the debate in a statement.

“Elissa agreed to it over a month ago and was prepping in earnest,” Givens said. “She will instead continue to directly engage voters in Detroit and across the state.”