With just two weeks before the next fiscal year begins, Governor Gretchen Whitmer delivered her “Protect and Defend Michigan’s Economy Speech.” The main crux of the speech was that while there remains economic uncertainty, Michigan can and should do everything possible to hedge against economic instability. Starting with passing the state budget.
The governor discussed the signs of an ailing economy, pointing to tariff policies and an uncompleted state budget as the sources.
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- Stubborn inflation and stagnating wage growth
- Declining credit scores and increasing debt
- Increasing unemployment
The impact of tariffs is largely out of Michigan’s hands, as this is federal policy. However, to combat the impact on Michigan, Governor Whitmer called for three steps that can be taken to provide certainty:
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- Make it easier to build factories and facilities
- Create and retain good Michigan jobs
- Make it easier to incentivize innovation in Michigan
The uncertainty caused by a yet-to-be-completed state budget is in the hands of the legislature and the governor to address. The state has until midnight on September 30 to finalize the state budget. If one isn’t in place on October 1, the state government would, for the most part, shut down. While departments and the executive office have started preparations for responding to such a situation, Governor Whitmer urged the legislature to finish a budget and send it to her for her signature before a closure occurs.
She highlighted three key budget areas:
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- The governor highlighted three key areas that could be impacted by the lack of a budget: roads, education, and public safety.
- According to the governor, through partnership and negotiations, everyone could achieve their priorities, and she would sign the budget if it was balanced and included those priorities.
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- The governor’s priorities to invest in kids, fix the roads, have a competitive business market, and keep people safe.
- The Senate’s goals to protect Medicaid, provide free meals to all public K-12 students, and support moms and babies.
- The House’s goals to cut spending, fix local roads, and increase transparency.
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