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By Holly Wetzel
MIDLAND, Mich. — In her fifth State of the State address, Gov. Whitmer chose to give preferential treatment to select groups, rather than providing a level playing field for all. The governor also proposed seven expansions and just one limitation on government. The Mackinac Center for Public Policy has tallied government expansions and limitations in every State of the State address since 1969.
The governor’s plan to lure companies with taxpayer handouts is a demonstrably ineffective approach to economic development. While she was cheerleading program's success, research shows the vast majority of corporate expansions, relocations, or retentions would have happened without incentives. The favoritism continued with her proposed tax benefits for retirees and other favored groups.
“The corporate welfare deals that were touted tonight are actually a backhand to taxpayers and unsubsidized job providers alike,” said Michael LaFaive, senior director of fiscal policy at the Mackinac Center. “Evidence shows subsidies for large corporations are ineffective, expensive, unfair, and struck in ways that are all too secretive.”
In her address, the governor proposed a variety of government expansions, including new tutoring programs for students. It remains to be seen whether all students will benefit from this program.
“It’s great to see Gov. Whitmer finally recognize the need for additional help for students who were shut out of classrooms during COVID,” said Molly Macek, director of education policy at the Mackinac Center. “Unfortunately, she squandered ample opportunities to address this problem sooner. Instead of helping families get their students back on track, she chose to veto Student Opportunity Scholarships and other measures that would have provided personalized learning support.”
The governor also proposed an age eligibility change to Michigan Reconnect, a program launched in 2020 that allows Michigan residents 25 and older with no degree to attend community college at no cost to them. Lowering the eligibility age to 21 is premature, considering taxpayers haven’t had a chance to evaluate the impact of the program. Gov. Whitmer also lauded Michigan Achievement Scholarships, which will give students graduating from Michigan high schools additional state aid for postsecondary education, starting in 2023.
“Neither Michigan Reconnect nor Michigan Achievement scholarships actually address the root problem of rising tuition costs,” said Jennifer Majorana, Ph.D., Educational Leadership, assistant director of advancement at the Mackinac Center. “Instead, taxpayers are going to be on the hook for expensive programs that lack accountability and offer no guaranteed benefits.”
Several of these proposals were included in the Mackinac Center’s tally of expansions and limitations. The tally itself is not meant as a comment on whether these proposed changes are positive or negative. One limitation, the changes to taxes on retirement income, was proposed.
The following expansions were mentioned in the speech:
Learn more about the Mackinac Center's 2023 policy priorities here.
The Mackinac Center for Public Policy is a nonprofit research and educational institute that advances the principles of free markets and limited government. Through our research and education programs, we challenge government overreach and advocate for a free-market approach to public policy that frees people to realize their potential and dreams.
Please consider contributing to our work to advance a freer and more prosperous state.
