Dear Neighbors,

Welcome to this month’s edition of my e-newsletter. I will continue to work with my colleagues on both sides of the aisle to tackle the tough issues that will help lower the cost of living, help families get ahead, and build a brighter future for all who call Michigan home.

As always, I welcome your feedback on current issues facing Michigan or in the Greater Rochester Area, Troy, Sterling Heights and Utica communities. Constituent feedback is vital as I represent our community in Lansing. If you are experiencing a problem with one of our state government agencies, my office is always available to assist with finding a solution. I respect your opinion and will always do my best to make myself available and accessible to you.

Please take a moment to visit my website, like my official Facebook page, send me an email or call my office at 517-373-0994. If you have any questions, concerns or opinions on what is happening, please do not hesitate to contact me.

Sincerely,

Michael Webber
State Senator
9th District

Every Michigan State University graduate who watched the horrific events unfold on Feb. 13 could recall walking through the halls of the Union or having a class in Berkey Hall. As a proud Spartan myself, I share your grief.

These are places we shared a meal with a friend, crammed for a test, listened to a lecture, or even met our future spouse, as I did at Michigan State. These are places where we made memories that we carry with us to this day.

People of goodwill differ on how best to end this epidemic. But a collective will to end, it is a starting point. We must come together not as Republicans or Democrats but as Michiganders, as Americans, to stop this bloodshed.

Many of us were elected on a promise of reducing costs and taxes on Michiganders — they need money put back in their pockets as they continue to face economic challenges. In 2015, I voted yes in the state House on the bill to roll back the tax rate on all Michiganders if state revenues exceeded a certain level. Now, through political gamesmanship and maneuvering, that permanent tax relief is at risk.

Under the 2015 law, an automatic and permanent reduction to the state income tax rate is triggered if revenues in Michigan’s general fund increase past a certain point. The House and Senate fiscal agencies estimate that Michigan was $700 million over the trigger’s threshold in fiscal year 2022, which would reduce the income tax rate from 4.25% to 4.05%.

House Bill 4001, as enrolled, would stop that cut by retroactively moving $800 million from the general fund to a new fund to provide one-time $180 rebates in 2023 and then directing over $1.4 billion over the next three years to the Strategic Outreach and Attraction Reserve (SOAR) Fund. It would also increase the state’s Earned Income Tax Credit (EITC) from 6% to 30% of the federal EITC beginning with the 2022 tax year and phase-in over four years exemption on certain retirement income from the state income tax, such as public retirement or pension benefits.

I have voted yes on every tax reduction that has been presented in the Senate this session, but I could not vote yes on a tax scheme that will take a significant and permanent tax cut away from all Michiganders and replace it with an insignificant one-time “political relief check.”

I had the privilege to be on a policy panel with State Sen. Mallory McMorrow, D-Royal Oak, that was moderated by Kyle Melinn, news editor and co-owner of MIRS News, to discuss municipal finance, economic development, and transportation/infrastructure matters before local government leaders.

Last term, bipartisan work was done to shore up finances at the municipal level, the most significant of which was a $750 million investment in unfunded pensions. Building upon that success, I am eager to work on protecting revenue sharing to ensure we protect the impact of that investment and can continue to meet our obligation to fund legacy costs.

This plan would create a “revenue sharing trust fund” that would require the state to set aside the monies collected via sales tax first and before budget negotiations begin. This critical policy change will offer more financial stability for both local units of government and the state. It would not change the distribution formula already established in law and does not increase taxes on Michiganders but would modernize the mechanism in which the state provides revenue sharing dollars to local units of government. This would increase Michigan’s competitiveness and preserve resources for local units of government across the state.

In early February, Gov. Whitmer presented her budget proposal to the Legislature, beginning the annual budget cycle in Lansing. I was encouraged by some of her proposals and concerned with others. I’m looking forward to working with the governor and my colleagues in the Legislature during the coming months to produce a fiscally responsible state budget that invests our taxpayer dollars where they can make the biggest impact on our community and across our state.

First, I was pleased to see continued increased investment in our K-12 education system. Our current budget provides record funding for our schools, and the governor’s plan would build on these resources in the upcoming fiscal year. I believe we must dedicate more resources to special education, early literacy, and other vital K-12 education programs.

The proposed budget includes a 4% increase in funding for higher education, which includes Oakland University.

I was, however, disappointed to see the governor’s budget recommendation, if enacted, would reduce the state’s current $9.2 billion surplus to just $250 million. This is fiscally irresponsible, especially with the uncertainty surrounding our economy and a recession. In addition, the governor does not provide a long-term sustainable road funding solution to fixing our roads and infrastructure, which continues to be an issue in southeast Michigan.

The budget process is just beginning. I look forward to more productive discussions about how to fix our roads, improve our schools, and build stronger communities.

No appointment is necessary to attend. Michigan’s 9th Senate District includes the cities of Rochester, Rochester Hills, Troy, and Utica along with parts of Oakland Township, Shelby Township and Sterling Heights.