LANSING, Mich. (Michigan News Source) – The GOP-led Michigan House passed a state budget plan on Tuesday that leaders say covers most state departments and cuts down on waste of taxpayer dollars including the Strategic Outreach and Attraction Reserve (SOAR), Gov. Gretchen Whitmer’s go-to corporate giveaway program.

Budget breakdown.

The omnibus budget totals $56.6 billion; that is separate from the $21.9 billion school aid budget passed earlier this year by Michigan’s House. Together, the two budgets total $78.5 billion which is a 3.7% reduction from the current year’s budget. In addition, it is 6% smaller than the governor’s proposed bloated spending plan and a whopping and 7.2% smaller than the Democratic-controlled Senate’s proposal.

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“Our budget is built on honesty, transparency, and respect for taxpayers,” said Rep. Ann Bollin (R-Brighton Township). “We went line by line through every department, identified more than $5 billion in waste, and redirected that money to fix our roads, keep our communities safe, strengthen education, and protect our most vulnerable.”

Taxpayer dollars wasted on no-show bureaucratic positions.

Some of the taxpayer money wasted in the past included phantom employees, unspent work project money, and pet projects. Rep. Bollin pointed out state departments receive money each year for new positions that go unfilled. “That money sits unused and becomes a slush fund for departmental directors,” Rep. Bollin said. She said the cut of 4,300 “phantom state jobs” freed up $560 million.

In addition, House Speaker Matt Hall (R-Richland Township) pointed out in a Tuesday press conference that more than $6 billion in taxpayer money has lingered in state department accounts as unspent work project funds. He said the plan cuts down on waste and abuse without raising taxes and redirects funds to pay off Gov. Whitmer’s road bonds.

“We protect no tax on tips, no tax on social security, no tax on overtime for Michigan families and workers and deliver a $3.4 million roads plan without raising taxes,” Hall said.

SOAR funding flies the coop under GOP plan.

The final blow to Whitmer’s over-the-top budget proposal is the elimination of SOAR funding. SOAR was created in 2021 by the Legislature to attract economic projects to the state.  SOAR is managed by the Michigan Economic Development Corporation (MEDC), which Democratic Attorney General Dana Nessel described as a “quasi-public” entity.

The MEDC has used hundreds of millions of dollars in “corporate incentives” to attract foreign companies to Michigan, including Gotion in Big Rapids, CATL in Marshall, and a now thrice-failed megasite in Genesee County.

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Rep. Bollin described SOAR as a “failed program” which hands out billions of taxpayer dollars with little return. Another example of money that’s now lost includes the $30 million statewide EV charging program. The money has been allocated in previous budgets but Michigan has yet to produce any chargers.

“We are working hard to change the trajectory of Michigan,” Bollin said in Tuesday’s press conference.

What’s next?

Michigan’s House and Democratic-controlled Senate must now meet to hammer out budget details before the Oct. 1 deadline. Senate Majority Leader Winnie Brinks (D-Grand Rapids) told Michigan Advance,  “I have made my disappointments and frustrations about entering September without a House budget proposal abundantly clear. She added, “It’s 36 days until October 1, and we have a lot of work to do. It’s work that we can accomplish, but the games and distractions need to end.”

If an Oct. 1 budget deal isn’t reached, the state may be forced to close certain departments temporarily.