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Detroit Regional Chamber > Advocacy > Chamber Perspective on Proposed FY 2024-25 State Budget

Chamber Perspective on Proposed FY 2024-25 State Budget

February 14, 2024

Gov. Gretchen Whitmer and the State Budget Office recently announced an $80.7 billion FY 2024-25 budget proposal, the sixth of her administration, and signaled a return to normalcy after federal COVID-19 pandemic aid.

The Detroit Regional Chamber reviewed the most significant elements affecting how Michigan and the Detroit Region will have a thriving business environment.

Economic Development and Business Climate

While continuing responsible debt repayment and benefiting from sound fiscal management, the State also proposed new and expanded programs and tax credits to help attract high-value employers to Michigan to remain competitive with other states.

  • Continued investment in the SOAR Fund to help Michigan close deals for more quality jobs available in the state.
  • $100 million for a new R&D Tax Credit that the Chamber has been an advocacy leader on.
  • Creation of the Michigan Innovation Fund, designed to support high-growth, high-wage startups that will diversify the economy.
  • Improving Michigan’s permitting process by digitalizing records and increasing the number of staff to lower waiting times.

Chamber Perspective: Michigan needs a comprehensive economic development strategy incorporating a wider range of tools to achieve long-term growth. An essential step in this direction would be to provide businesses with access to a closing fund like SOAR, which can help to create new opportunities and support job creation. Additionally, increased attention to knowledge-economy jobs would help diversify Michigan’s businesses and make them more competitive in the global marketplace.

 

Further, Michigan needs to grow its population, grow its income, and make Michigan the best place to start or expand a business. Ensuring permits are issued faster and people can participate in the workforce are reasonable steps toward stability in these goals.

 

The Chamber is closely monitoring any possible fee increases or extensions that make doing business in Michigan more expensive, like the large increase in the landfill tipping fee.

 

Related: Chamber Perspective on 2024 State of the State

Education and Talent

The FY25 budget also included ways to continue ensuring that Michiganders have the skills and knowledge necessary to thrive in the rapidly evolving job market.

  • Increasing access to affordable postsecondary education by implementing the Growing Michigan Together Council’s recommendation of free community college for all Michigan high school graduates.
  • $20 million increase in the Going Pro program.
  • $12 million towards integrating international talent and immigration efforts to grow Michigan’s population and workforce.
  • Increasing provider rates, capital investments, and more early childhood education options by allocating $670 million that would typically go to cover liabilities in the state’s teacher retirement system.

Chamber Perspective: In addition to growing and retaining the population, Michigan’s success hinges on increasing the number of postsecondary degrees and certifications residents earn. That is why the Chamber’s 60 by 30 goal, aimed at having at least a 60% postsecondary attainment rate and reducing the racial equity gap by half by 2030, is critical to achieving this vision. To make this possible, it is essential to focus on funding affordable higher education and employer-led certifications that prepare the workforce for the jobs of today, tomorrow, and beyond.

 

Related: The 2023 State of Education and Talent Report

Mobility and MICHauto

The budget also continues to make investments toward the state’s electric future, including:

  • $25 million for electric vehicle (EV) charging station expansion across Michigan.
  • $20 million to develop customized solutions to fill talent gaps in key industries.
  • $25 million to provide point-of-sale rebates on electric, hybrid, or Michigan-built vehicles.

Chamber Perspective: Michigan’s economic future hinges on properly executing the transition to an electric and autonomous future. State government can equip consumers and employees with the tools needed to ensure Michigan can capitalize on this once-in-a-generation shift.

 

Michigan’s roads, infrastructure, and transit also continue to struggle and harm current and future job providers. The Chamber remains committed to working with the government and other stakeholders to address these challenges to create a better regional business environment.

 

Related: MICHauto Priorities in the 2024 State of the State Address