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News From the Capitol, Feb 17, 2023
February 17, 2023 by MASB Government Relations

Our support is with the students, faculty and staff of Michigan State University, as well as the entire community, following the tragedy that occurred on Monday night taking the lives of three students and seriously wounding five others. We hope all of those affected will take time to grieve and seek out assistance for themselves or loved ones as necessary. Resources can be found on MSU’s website and the City of East Lansing website.

 

  • Senate Passes, but Holds, Tax Package
  • Budget Summary Now Available
  • Join us Behind the Scenes at the Capitol

 

Senate Passes, but Holds, Tax Cut Package

The Senate returned to session on Thursday and brought up House Bill 4001 (CR-1), which would increase the Earned Income Tax Credit from 6% to 30% and modify how taxpayers are taxed on retirement income to give greater deductions. Under the pension tax rollback, the School Aid Fund will be protected by increasing the amount of income tax revenue that is dedicated to the Fund.

As mentioned in last week’s update, the question was if it would be granted immediate effect to allow the changes included to take effect and potentially stop the trigger to lower the income tax. The bill was passed by a party-line vote of 20-17 and was not granted immediate effect. The Senate moved to reconsider the immediate vote but adjourned before doing so.

After the vote on HB 4001, the Senate majority adopted a resolution to abolish the position of Associate President Pro Temporem, which is held by the minority party and was the position used to adjourn session last week. They also introduced a resolution to allow immediate effect to be granted by voice vote instead of roll call. The Republicans pushed back on that resolution and the Democrats adjourned for the day without a vote on the resolution or immediate effect on HB 4001.

This extends the posturing and negotiating over the bill for another week. Eventually, it will make its way to the Governor.

Budget Summary Now Available

On Feb. 8, 2023, Gov. Gretchen Whitmer presented her 2023-2024 budget to the Legislature. This officially started the budget season in Michigan. We have a summary that breaks down the School Aid Budget by relevant sections and details her proposal now available. We will provide updates as the budget moves through the Legislature. 

We urge you to continue to talk to your legislators about how this proposal will affect your district, other items that would be useful and the timeliness of final budget decisions. We are pushing for the School Aid Budget to be completed by mid-June or sooner.

Join Us for Behind the Scenes at the Capitol 

MASB will be holding its spring Behind the Scenes at the Capitol event on Wednesday, April 19, 2023, in the Anderson House Office Building from 8 a.m. to 1 p.m. This event is a great opportunity to come to Lansing and hear from legislators and budget experts who will provide a timely status summary. It also allows for networking between districts to learn from one another.

Lastly, this event is a chance to speak with your legislators and their staff, face-to-face, about issues affecting your district. 

Registration is now open.

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