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.
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.