Sept. 1, 2023 | This Week in Government: Energy Proposals in Gov. Whitmer Speech Get Divided Response

Gov. Gretchen Whitmer on Wednesday laid out her fall agenda during a speech akin to the traditional State of the State, including several items legislative Democrats have already been working on while adding some big asks related to paid leave and energy to the list.

Whitmer gave the speech at Lansing Shuffle, the site of what was the forlorn former city market but which has been reinvigorated this year, along the city’s river trail before Democratic officials and allies.

The scene was celebratory, with Democratic lawmakers and other officials, including Lt. Gov. Garlin Gilchrist II, Attorney General Dana Nessel, and Secretary of State Jocelyn Benson, in attendance. While the speech focused mostly on future goals, there was also much celebration from Democrats on what the Legislature and Executive Office have accomplished so far this year.

“Our plans are ambitious, but they’re achievable. Let’s get them done so we can build a bright future for Michigan,” Whitmer said. “I’ve spoken often over the last few years about how we need to ‘believe in Michigan.’ I know that Michiganders love our state and we have been through a lot, especially over the last 40 years. We’ve made strides to reverse those trends by delivering on issues that make a real difference in people’s lives. We have made progress.”

Much of what Whitmer discussed during the speech has already started making its way through one of the legislative chambers. Other pieces were new or haven’t yet seen much traction.

A paid family and medical leave program allowing workers to take paid time off to spend time with a new child or take care of a sick family member was a key proposal, though not much detail was available Wednesday.

Whitmer also made significant energy proposals, backing the 100% clean energy standard. Legislative Democrats have already begun discussing and calling for the Public Service Commission to take over siting authority for large-scale solar and wind energy projects.

While not a huge portion of her speech, Whitmer also mentioned the work of Detroit Mayor Mike Duggan and House Speaker Joe Tate (D-Detroit). They are backing a proposal to earmark 1.5% of the money collected from the sales tax’s first 4% and place it into a new Public Safety and Violence Prevention Fund. She said she would work with them to get it done.

The governor also expressed support for codifying pieces of the federal Patient Protection and Affordable Care Act, passing a reproductive health act that repeals laws advocates say make it harder to access abortion services, and establishing a new state board to oversee prescription drug prices.

Whitmer, in an interview with Gongwer News Service prior to the speech, was open to not including a repeal of the parental consent requirement for abortion in legislation dubbed the Reproductive Health Act, which is yet to be introduced. That bill is expected to repeal a series of laws dealing with abortion regulations advocates say make it tougher to access abortion. Backers of the Reproductive Health Act signaled this week that a repeal of parental consent, while under previous consideration, may not make the final bill.

“I just think that we know that we can make a difference and level barriers. We do have a system in place where a judge can make a determination,” Whitmer said on why she was supportive of parental consent not being included. “But ultimately, what I want to see is real progress made and at this juncture, the RHA as, as it’s contemplated, I think is a huge step forward.”

The bill is also expected to repeal the requirement that insurers get a separate rider for abortion coverage. A decade ago, Whitmer told her story of being raped for the first time in calling for that policy to be rejected by the GOP-led Legislature.

“It just kind of kind of takes my breath away to be honest,” Whitmer said on the prospect of her signing the bill to repeal that law when asked. “And, you know, 10 years ago, it was so distressing as a policymaker, but also as a female Michigander and someone who shared some of the worst experience of my life publicly and it didn’t change a single vote, to be in a position now where we can take that off the books, I think it probably will have a powerful impact on me. I haven’t really thought about it much yet though.”

Right to Life of Michigan and the Michigan Catholic Conference both slammed the Reproductive Health Act in statements reacting to the speech.

“Gov. Whitmer’s interest in overturning abortion limits appears to reflect the interests of the national abortion industry, not the people of Michigan,” Rebecca Mastee, policy advocate for the Catholic Conference, said in a statement. “After convincing voters to approve Proposal 3 by saying the measure would simply restore Roe, abortion advocacy groups are now placing the health and safety of women in danger by targeting long-standing, commonsense protections.”

Finally, the governor called for streamlining the permitting process, saying her previous executive order on the topic needs legislation to make “long overdue strides.” She also called for “shoring up election security.”

“We cannot allow the will of the people to be tossed out or overturned, and we can’t permit politicians to stay in office despite getting voted out,” Whitmer said. “We must ensure Michiganders are heard and respected.”

At least one Republican attended the speech Wednesday – Rep. Phil Green of Millington – though several panned the speech in statements later. Democrats and allied groups embraced the governor’s message.

Senate Minority Leader Aric Nesbitt (R-Porter Township) called Whitmer’s proposals progressive and left-wing.

“On the heels of the highest inflation experienced in four decades, Gov. Whitmer is still fighting to increase income taxes on hardworking families and impose new tax burdens on small businesses and charitable nonprofits,” he said in a statement. “Instead of supporting proven policies put in place to lower taxes, reduce oppressive regulations, invest in infrastructure, and provide access to reliable and affordable energy, the governor is doubling down on radical policies that will do the opposite, crippling economic growth and super-charging inflation.”

Tate said his caucus is ready to work with the governor to continue passing legislation that is focused on “putting people first.”

“The momentum right now in the Legislature is palpable and making a positive impact in the everyday lives of Michiganders,” Tate said in a statement. “We accomplished a great deal in the first six months of the year – from cutting taxes for working families and seniors, to enacting commonsense gun violence prevention laws, to passing a budget that reinvests in our state. That was just the beginning.”

Whitmer said the state government’s list of accomplishments, “our growing, diversifying economy, and our strong financial position prove that what we are doing is working.”

“That feeling you’re seeing in every region of our state – is hope. Michiganders believe in Michigan,” she said. “Now that we all see what we’re capable of, let’s tell the world. Michiganders are known for our kindness and our humility. We get a lot done, but we are not the best at telling our story. Today, that ends. Today, we go from just believing in Michigan to bragging about Michigan.”

Gov. Gretchen Whitmer‘s call for paid family and medical leave didn’t include many specifics Wednesday but still left business groups concerned, while Democrats seemed to embrace the idea.

Whitmer made the proposal during her “What’s Next” address, which set up her fall agenda, on Wednesday.

The governor has often spoken about her experience of taking care of her mother, who was dying of brain cancer when her first daughter was born. She pointed to that again during her speech when describing why paid leave – for medical care or for taking care of a new baby – is important.

“That time forged me and it showed me the challenges that so many Michiganders live every single day,” Whitmer said Wednesday. “I had my first child during my first legislative term. … I wanted to be a great mom and policymaker. But I had some advantages most people don’t, like resources and a strong support network. Even with help, raising a child, caring for yourself, and juggling your work is hard.”

And that is why, Whitmer said, the state should implement paid family and medical leave.

“It helps workers be there for their families. It gives you breathing room to get better when you’re sick, bond with your baby, or care for a family member,” she said. “Right now, 77% of Michigan workers do not have access to paid family and medical leave. They deserve better.”

It is unclear, however, how the proposal would work. Legislative leaders signaled that would be worked out as they determine if and how to bring up the proposal.

Several sources said the governor’s office is looking at a law Minnesota enacted earlier this year.

Under that model, nearly all employees are eligible to take paid leave, capped at 20 weeks a year, for either their own serious health condition or to care for another family member. In Minnesota, an employee can take up to 12 weeks of paid leave for their own serious health condition and up to 12 weeks for parental leave, family care, safety, or a qualifying exigency, though in a single year, the aggregate cannot exceed 20 weeks.

Under that plan, employees do not receive their full wages. Instead, employees receive a percentage of their wages depending on how that compares to the state’s average weekly wage, with lower earners getting a larger percentage. Further, the wages are funded by employers and employees through a 0.7% premium, labeled a tax by critics, on income.

Sen. Erika Geiss (D-Taylor) has also been working on paid leave, with bills already introduced in the Senate (SB 332 and SB 333). There are similar bills in the House, too (HB 4574 and HB 4575) from Rep. Helena Scott (D-Detroit). These were introduced in May and have yet to receive a hearing. The bills differ from the Minnesota law in some key ways. They allow for up to 15 weeks of leave and initially leave the size of the premium to the discretion of the state treasurer, with the treasurer then setting a premium in 2027 sufficient to generate 135% of the benefits paid out in the preceding fiscal year.

On social media, Geiss said it is “high time we get it done.”

“Paid Family Leave is a win-win for everyone, because at some point, everyone will need it,” she said. “And while some companies are doing the right thing by their workers, the rest need to catch up especially since it’s their *workers* who make them profitable.”

In an interview with Gongwer News Service prior to the speech, Whitmer was asked whether Minnesota is the model she wants a Michigan law to follow. She said she wanted to start the conversation and solve the problem with stakeholders at the table.

“This is about getting women in the workforce who bear the brunt of domestic responsibilities. Even as the world’s changed, that remains true,” she said. “And so I think that if we can develop something for Michigan that maybe has some pieces from the 14 states that have already done this, I think it would be a huge asset for our economy and most importantly improve the quality of life for people in the state.”

House Speaker Joe Tate (D-Detroit) said his caucus will continue conversations on the proposal and see what overlaps with member priorities. He did not commit to a payroll tax to fund a paid leave program.

“I don’t know the full scope of that right now. But we know there are potentially different ways,” Tate said.

Senate Majority Leader Winnie Brinks (D-Grand Rapids) said she is still working on the details of how a paid leave program could be structured and said there are good models out there to work from.

“We’re going through all the pros and cons of how to do it. But we think that there’s a good space where we can make a real difference for people to really help out with their family budgets and with those stressors that come when you need to take a few weeks off from going to work every day to take care of the most important thing in all of our lives, those family members, whether it’s children, or aging parents, as the governor mentioned, so that’s a universal experience,” she said. “We know we will make a difference there. Support families and support our economy at the same time.”

Business groups are concerned, however. Amanda Fisher, state director of the National Federation of Independent Business, said the policy would lead to multiple problems for small businesses.

“Unfortunately, every paid family leave proposal we have seen is a double hit to those small businesses who will have to deal with a tax hike AND the increased cost and stress of finding temporary replacement workers,” Fisher said in a statement. “The majority of small business owners already do everything they can to provide paid leave and flexibility to their employees – this mandate could either cause small business owners to downsize, or close altogether.”

Wendy Block, senior vice president of business advocacy with the Michigan Chamber, said it has “grave concerns,” with a potential $1 billion-plus annual payroll tax for a new government insurance program.

“Michigan’s job providers recognize competitive employee benefits are key to attracting and retaining talent and they are currently providing what is economically feasible,” Block said in a statement. “A one-size-fits-all mandate of this type and magnitude would result in higher taxes, bloated government bureaucracy and hurt the very people it is intending to help – especially small businesses and Michiganders living paycheck-to-paycheck.”

House Minority Leader Matt Hall (R-Richland Township) called the proposals from Whitmer extreme and said in a statement they would make life in the state more expensive.

“To make matters even worse, Democrats are planning to create a new, burdensome payroll tax on small businesses and Michigan workers – in addition to an income tax hike,” Hall said, referencing the income tax cut Democrats have said will last for one year instead of being permanent. “Democrats’ already spent all of Michigan’s resources in their budget, and they baked in the coming income tax hike to pay for their wasteful spending. After years of rising costs of living, we should be making life more affordable, but the next radical items on Democrats’ agenda will only demand more money from the people of Michigan and send more residents looking for a better life out of state.”

Whitmer, who has created a council to make recommendations on growing the state’s population, said a paid leave proposal could help grow the state. She said it is a top three policy people prioritize when deciding where to relocate.

“This is priority for all workers, but it’s especially true for women. Women who make up half our workforce and often bear the brunt of caretaking responsibilities,” she said. “So many of us have points in our lives when we have a baby, or an aging parent, or a sick spouse. Sometimes two of those at once. But not all of us have access to paid family and medical leave. We deserve better. No one should have to choose between being there for their family and a paycheck.”

Michigan League for Public Policy President and Chief Executive Officer Monique Stanton, in a statement, said paid family and medical leave would be a “game-changer.”

“(It) would effectively boost the health and economic well-being of millions of workers and families, while also making Michigan more competitive in attracting and retaining talent for the state’s workforce at a time when we are losing people to other states at an alarming rate,” she said. “As it stands today, working Michiganders without access to paid leave are at serious risk of losing their job or livelihood when they or a family member falls ill or when they need to care for a new child. They are often faced with impossible choices, being forced to decide between taking the time they need away from work or securing their next paycheck. This not only harms a family’s economic security, but also impacts our state’s workforce participation and economic growth.”

Secretary of State Jocelyn Benson told Gongwer News Service on Wednesday the presidential primary can be held on February 27, even if the law moving the date up from March doesn’t go into effect until earlier that same month.

The question of the presidential primary timing looms, as speculation is rife that the Legislature will adjourn sine die earlier than normal. However, sources said last week the suggestion the Legislature would adjourn before the end of October is inaccurate.

The Legislature could adjourn in early November, though.

House Speaker Joe Tate (D-Detroit) was asked by a reporter Wednesday if House Democrats were told not to expect to be in Lansing after November 9.

“There have been conversations. We’ve had scenarios. We have to think about what the rest of the year looks like for us,” Tate said. “We’re just going to have to wait and see.”

Senate Majority Leader Winnie Brinks (D-Grand Rapids) told reporters Wednesday that as soon as the Senate gets all the work done that they want to get done, they will adjourn.

“I will say this. There has not been a definitive date set for ending session this year,” Brinks said. “We have a lot of important work to do. We’re very focused on that at this time. And that decision will get made when we are ready to make it.”

Months ago, Brinks said she was not eager to adjourn early given the number of policies the state needs the Legislature to pass (See Gongwer Michigan Report, June 1, 2023).

Benson said for election administrators, they need to know as soon as possible what the Legislature’s plan is. She also noted other parts of early voting, like pre-processing, didn’t get immediate effect and are tied to the sine die adjournment.

Laws not given immediate effect take effect 91 days after the Legislature adjourns sine die.

“We are working with clerks to assure voters that regardless of what the Legislature does that we will adjust and adapt,” Benson said. “Clarity and certainty would help us accomplish that goal.”

If the Legislature adjourned sine die in early November, the presidential primary bill would take effect in early February. Ballots for overseas and military voters need to be ready by mid-January, and the filing deadline for proposals is 12 Tuesdays before the election.

Additionally, the presidential primary will be the first statewide test of early voting. Outside of the new laws, clerks also have other work to do to prepare for an election.

“My ask has been whatever they decide to do to let us know sooner rather than later,” Benson said. “Then we will work with clerks and voters to make sure whatever the decision is … we will be ready.”

Benson said as soon as her office gets indication from the Legislature on an adjournment plan – which she hopes comes prior to the date they actually adjourn – clerks will be able to plan for the election date. She said clerks could initiate operations for the elections like printing ballots, distributing absentee ballots, and other measures even if the law was not officially in effect until early February.

“All that to say is our planning and the planning we have done with clerks around the state, including in our largest counties, have been along the lines of two tracks,” Benson said, one if the primary is in late February and the other if it is in March.

Ingham County Clerk Barb Byrum said Wednesday there is concern among some clerks not actually knowing what day the election will be held on.

“This is a serious issue that clerks are concerned about,” Byrum said. “From what I am hearing people are reluctant to start preparing for an election that is not currently in law. There is already a lot of voter education that needs to be done in 2024. There are numerous responsibilities that county clerks are taking on. To not know when the presidential primary is in 2024 at today’s date is unconscionable.”

Byrum said the Legislature needs to make a decision, and election administrators will work with that date.

“The difficulty is time is not on our side,” she said.

Secretary of State Jocelyn Benson told Gongwer News Service on Wednesday the presidential primary can be held on February 27, even if the law moving the date up from March doesn’t go into effect until earlier that same month.

The question of the presidential primary timing looms, as speculation is rife that the Legislature will adjourn sine die earlier than normal. However, sources said last week the suggestion the Legislature would adjourn before the end of October is inaccurate.

The Legislature could adjourn in early November, though.

House Speaker Joe Tate (D-Detroit) was asked by a reporter Wednesday if House Democrats were told not to expect to be in Lansing after November 9.

“There have been conversations. We’ve had scenarios. We have to think about what the rest of the year looks like for us,” Tate said. “We’re just going to have to wait and see.”

Senate Majority Leader Winnie Brinks (D-Grand Rapids) told reporters Wednesday that as soon as the Senate gets all the work done that they want to get done, they will adjourn.

“I will say this. There has not been a definitive date set for ending session this year,” Brinks said. “We have a lot of important work to do. We’re very focused on that at this time. And that decision will get made when we are ready to make it.”

Months ago, Brinks said she was not eager to adjourn early given the number of policies the state needs the Legislature to pass (See Gongwer Michigan Report, June 1, 2023).

Benson said for election administrators, they need to know as soon as possible what the Legislature’s plan is. She also noted other parts of early voting, like pre-processing, didn’t get immediate effect and are tied to the sine die adjournment.

Laws not given immediate effect take effect 91 days after the Legislature adjourns sine die.

“We are working with clerks to assure voters that regardless of what the Legislature does that we will adjust and adapt,” Benson said. “Clarity and certainty would help us accomplish that goal.”

If the Legislature adjourned sine die in early November, the presidential primary bill would take effect in early February. Ballots for overseas and military voters need to be ready by mid-January, and the filing deadline for proposals is 12 Tuesdays before the election.

Additionally, the presidential primary will be the first statewide test of early voting. Outside of the new laws, clerks also have other work to do to prepare for an election.

“My ask has been whatever they decide to do to let us know sooner rather than later,” Benson said. “Then we will work with clerks and voters to make sure whatever the decision is … we will be ready.”

Benson said as soon as her office gets indication from the Legislature on an adjournment plan – which she hopes comes prior to the date they actually adjourn – clerks will be able to plan for the election date. She said clerks could initiate operations for the elections like printing ballots, distributing absentee ballots, and other measures even if the law was not officially in effect until early February.

“All that to say is our planning and the planning we have done with clerks around the state, including in our largest counties, have been along the lines of two tracks,” Benson said, one if the primary is in late February and the other if it is in March.

Ingham County Clerk Barb Byrum said Wednesday there is concern among some clerks not actually knowing what day the election will be held on.

“This is a serious issue that clerks are concerned about,” Byrum said. “From what I am hearing people are reluctant to start preparing for an election that is not currently in law. There is already a lot of voter education that needs to be done in 2024. There are numerous responsibilities that county clerks are taking on. To not know when the presidential primary is in 2024 at today’s date is unconscionable.”

Byrum said the Legislature needs to make a decision, and election administrators will work with that date.

“The difficulty is time is not on our side,” she said.

Lawmakers are ready to move on the Violence Prevention Fund after the legislation was touted by Gov. Gretchen Whitmer during her “What’s Next?” speech on Wednesday.

The proposal would earmark 1.5% of the money collected from the first 4% of sales tax and put it into a new Public Safety and Violence Prevention Fund. HB 4605 is sponsored by Rep. Nate Shannon (D-Sterling Heights), and HB 4606 is sponsored by Rep. Alabas Farhat (D-Dearborn).

The plan is backed by House Speaker Joe Tate (D-Detroit) and Detroit Mayor Mike Duggan (See Gongwer Michigan Report, May 24, 2023), and yesterday, the governor said she was willing to work with the Legislature to get it passed (See Gongwer Michigan Report, Aug. 30, 2023).

Farhat said he was glad that people were still engaging with the idea of a violence prevention fund.

“I’m excited that a top priority going into the fall is public safety. My colleagues are very excited to get to work on public safety and violence prevention,” he said. “Just looking at the last couple of months of summer, we can see that there was an unfortunate increase in violence, and I think these last few months make the case that we need more funding to get to the root causes of these issues.”

During the summer, Farhat and other lawmakers have coordinated workshops with stakeholder groups to discuss the proposal. Approval of the legislation within the Democratic caucus has also been high.

“I’m optimistic that when we get back in the fall, we’ll be able to push this legislation into the other chamber,” he said.

Farhat also said he’s been working closely with Rep. John Fitzgerald (D-Wyoming), who chairs the House Local Government and Municipal Finance Committee, which will take up the bills in the fall. Crafting intentional legislation has been a guiding principle, Farhat said.

“We’re creating a first of its kind fund that’s going to address a critical problem that our state has been facing,” Farhat said. “We are, unfortunately, a Top 10 state for violent crime, and so this is a major step forward in helping to make us a safer state and less violent one.”

Detroit officials are also working closely with the state to move the proposal forward.

“I am thankful for Governor Whitmer’s continued support of public safety to help the Detroit Police Department and agencies across the state keep people safe,” Chief James White of the Detroit Police Department said in a statement. “I look forward to the ongoing collaboration with the governor, Mayor Duggan, Speaker Tate, Rep. Farhat and the Legislature on the Public Safety and Violence Prevention Fund so that we can hire more officers to address high-crime areas, support our neighborhood policing efforts and our response to the ongoing mental health crisis.”

Amendments to the legislation are being considered, but Farhat said not to expect any major policy overhauls.

Fitzgerald said the amendments that are in the works are designed to make sure funding is distributed across the state.

“There is a recognition that there is a need throughout the state, not only in urban centers, but also in rural and township areas,” he said.

Fitzgerald also said lawmakers are examining how this fund might affect university public safety programs, which was a consideration that came out of a local government meeting with stakeholders.

Although there isn’t a set timeline to move the bills forward, both Farhat and Fitzgerald said that public safety and the violence prevention fund were a priority for the Democratic caucus this fall.

“This is not only, I believe, a committee priority, but I do believe a caucus priority,” Fitzgerald said. “The speaker stepped to the microphone and voiced his support for this plan.”

The House Local Government and Municipal Finance Committee had a hearing on the legislation prior to the summer recess (See Gongwer Michigan Report, June 21, 2023). That means the bills are primed to move forward, Fitzgerald said.

“Drawing attention from the governor – that does help to accelerate some of these conversations, and I think that we would be very well positioned to meet the governor’s goals,” he said.

The violence prevention fund is part of the Democratic caucus’s larger commitment to public safety, Fitzgerald said.

“We saw a number of investments in the appropriations process and the budget that was passed for the upcoming fiscal year, and this helps to support that, and I think really help to address community violence, community crime and help deliver those resources back in a smart way,” he said.

Making Michigan safer means investing in people, Farhat said.

“We all want the state to be a safer place, and we recognize that that involves an investment in the people who make it safer, whether those are community groups or the public safety agencies in each community,” Farhat said. “We’re committed to making sure that they have the resources they need to be able to keep the residents of Michigan safe.”