St. Joe-Benton Harbor News

Senate Republican Leader Aric Nesbitt and Senate Appropriations Minority Vice Chair Jon Bumstead have urged Gov. Gretchen Whitmer to present a second budget recommendation to the Legislature before the Michigan Court of Appeals rules on the fate of her $700 million income tax increase.

"If the courts were to provide a favorable ruling for the people of our great state by protecting families and small businesses from an income tax increase, the budget you presented this month would be out of balance," Nesbitt stated in a letter alongside Bumstead.

The Court of Appeals is set to determine whether the 4.05% income tax rollback mandated by state law in 2023 should remain permanent or revert to 4.25% in 2024, as advocated by the governor and the attorney general.

Nesbitt expressed concerns about the governor's budget proposal, highlighting the impact on Michigan families and small businesses. He criticized the plan for raiding the state's pension fund for teachers, describing it as a "shell game to spend tax dollars down to the last penny for short-term political ambitions."

Bumstead emphasized the need for a bipartisan agreement to control spending and offer tax relief, stating, "Republicans will seek common ground, but we won’t support unsustainable spending that bloats the size of state government while families and small businesses struggle to make ends meet."

The legislators called for a more responsible spending plan and requested a contingency budget from Gov. Whitmer to address potential outcomes where the courts reject the tax increase and state law prohibits raiding the teacher pension fund.

"In accordance with the state constitution, which requires the presentation of a balanced budget recommendation, we respectfully request that you provide the Legislature with a contingency budget plan," the letter concluded.

Bumstead added, "I believe we can work together to spend taxpayer dollars wisely, ensure that students get the support they need to succeed in school, keep our communities safe, make meaningful investments in infrastructure, pay down debt and allow families to keep more of their hard-earned money."

The Senate Republicans' call for a contingency budget comes amid ongoing legal battles and discussions over fiscal priorities in Michigan.