House Dems' Budget Priorities to Invest $1.5 Billion in Michigan families

Proposal cuts taxes, increases school funding, protects seniors, communities
Wednesday, April 10, 2013

LANSING — State Representative Bill LaVoy (D-Monroe) joined his colleagues in support of the House Democrats’ budget priorities, which would help Michigan’s families by providing $781.8 million in tax relief and increasing funding to our schools by more than half a billion dollars â or $320 per student.

“When taxes were cut for the biggest corporations, we were told that jobs would be created as a result. Unfortunately, that hasn’t happened,” LaVoy said. “What we should be doing instead is giving tax relief to struggling middle-class families and properly funding our schools.”

The House Democratic budget proposal doesn’t just outline where taxpayer dollars could be better spent, but it also details how the tax cuts and funding proposals could be supported. The funding priorities include:

  • $781.8 million in middle-class tax relief, including the repeal of the senior tax, restoration of the $600 per-child deduction, fully restoring the Homestead Property Tax Credit and phasing back in the Earned Income Tax Credit
  • Restoring $537 million to Michigan classrooms, including $65 million for early childhood education
  • Making higher education more affordable with a $37.5 million investment
  • Creating real jobs for our Michigan workers with an investment of $50 million for film incentives and brownfield redevelopment and historic preservation incentives at $20 million
  • Protecting our community values with a $62.4 million investment for public safety and local services, $4 million for women’s health and $16 million in veteran services

“Fully funding our schools is the best job-creation investment we can make. Increasing the resources for K-12 schools, colleges and universities will give our students the resources they need to excel,” LaVoy said. “Previous budgets have imposed drastic cuts to education, and we can’t have more school closings and overcrowded classrooms.”

To fund these expenditures, House Democrats propose to prioritize the budget and get rid of corporate welfare programs that don’t work. Funding sources for the House Democratic budget include:

  • $115 million from reducing MEDC’s corporate welfare programs that have no track record of creating new jobs
  • $206 million by accepting federal Medicaid expansion dollars
  • $200 million in eliminating government waste through audit savings
  • $300 million from cost-effective vendor contracts
  • $158 million from the Budget Stabilization Fund

“The funding is there. We can make wise financial decisions and give middle-class families the support they need,” LaVoy said. “We should take every opportunity to support Michigan’s communities with healthy revenue sharing and money for small business development. These investments will improve the quality of life for people across our state.”