LANSING, Mich. (Michigan News Source) —With budget clouds gathering, Gov. Gretchen Whitmer is reaching for Michigan’s rainy day fund and asking taxpayers for more.
The $88.1 billion proposal, presented Feb. 11 by state budget officials, comes as Republicans who control the House have already ruled out tax increases and tapping reserves.
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To raise new revenue, however, Whitmer is proposing:
- A $1-per-pack cigarette tax increase
- A new 4.7% tax on digital advertising
- Higher taxes on vaping products and internet gaming
- A new 25-cent-per-wager tax on sports betting
- Eliminating a sports betting “free play” deduction
- Raising landfill tipping fees from 36 cents to $5 per ton
Much of the revenue would support Medicaid, which covers about 2.6 million Michigan residents, according to Deputy Budget Director Kyle Guerrant.
The plan also shifts $1.7 billion from the School Aid Fund to higher education—a record transfer—and draws $400 million from the state’s $2.2 billion rainy day fund.
House Speaker Matt Hall (R-Richland Township) expressed immediate resistance.
“No responsible budget proposal should pull from the rainy day fund right now; we purposefully put ourselves in this position,” Hall said.