Michigan News And Capitol Report, Week Ending Friday, August 14th, 2026

Benson: I'll Be Different From Whitmer On Business Growth

(DETROIT) – Democratic gubernatorial nominee Jocelyn Benson says the issue that will separate her from Gov. Gretchen Whitmer will be economic development. 

Benson said that Michigan needs to put greater emphasis on helping homegrown businesses grow, find markets and raise incomes. 

That's a different emphasis from Whitmer's economic development strategy on injecting billions of dollars into large advanced-manufacturing projects and helping the automotive industry transition to electric vehicles.

The entrepreneurs who met with Benson at TechTown Detroit urged the state to look beyond the number of jobs created when deciding where to invest economic development dollars.

The TechTown Detroit facility is connected to Wayne State University. It offers space and resources to entrepreneurs across industries, from sickle cell testing services to media groups to retailers on the Etsy website. 

She spoke to business owners who said they want the Michigan Economic Development Corporation (MEDC) – the state's public-private business attraction arm – to consider future revenue growth over the headcount of jobs. 

Benson speaks to media at the TechTown Detroit entrepreneurship hub. Photo by MIRS.

Although industrial plants are more likely to supply numerous job positions, today's entrepreneurs argue they might not offer the same potential for revenue growth. 

“Our wages are stagnant because we haven't been leveraging state funds in a way that actually invests in growing our economy,” Benson said. “I'm all about transparency and public dashboards that will engage the public in tracking that progress, but people will also experience that progress themselves by seeing businesses grow in their communities.”

Too often, she said, driving down main streets means seeing windows darkened and doors shuttered as small businesses leave to find markets elsewhere.

"We'll start to see and experience change as we grow and diversify our economy, see incomes go up by investing in small business development and creation and ensuring we're not just helping them start and grow, but we're helping them find markets here, as well," Benson said. 

One of the business owners who spoke with Benson was Justin Turk, the founder of ConStrat AI. The business helps construction market companies develop risk and money protection plans. 

The first company he started in Detroit was Livegistics, which helps businesses coordinate waste and asset management. While he's been able to raise $12 million in venture capital for Livegistics from Detroit, he said that its most active market is in Denver, more than 1,200 miles away in Colorado, and Ohio two years ago tried to get him to relocate. 

"If I knew what I know now, I should have moved," Turk said. "Not only because of the funding that they give just for moving the company, but it actually came with contracts and more work at the state and at the city level." 

While Turk was attempting to grow his first business, he learned that contracts with the city of Detroit and public services took four years to come to fruition. 

"When you think about the speed of innovation for startups, that's just not scale," Turk said. "Our entrepreneurs should be able to be supported." 

Turk added that he attended high school with U.S. Rep. John James (R-Shelby Township), the Republican nominee for governor. He said, "I'm not a fan," although he is a nice guy. 

Jokingly, Benson said, "We actually are forming a group of people who went to high school with my competitor." 

Also in attendance was Mamba Hamissi, the chief executive officer of Baobab Fare LLC., an East African restaurant network. He said that Michigan does not have enough technology for the food industry. 

He explained that his company will work with a New York-based program that supports restaurant businesses from across the world. 

"Having something like Grow New York here…so everyone, everybody can come and apply," Hamissi said. "We don't even have anybody in Michigan that imports coffee directly, so the market is in Chicago, Lebanon or … New York." 

He expressed that transportation costs linked to New York can be an obstacle. 

Another speaker was Sierra Boone, the creator of the "Nap Time Show," a children's television program to help with rest and creativity. Boone wants to offer childcare providers a program that is consistent and will help them during transition points, like when staff needs to prep for lunch.

Despite her shows being Michigan-made, Boone said her biggest markets are in Houston and Orlando. 

She explained the barrier is "the culture of being able to get connected to the folks who need it the most, securing those introductions that lead to those contracts, because childcare, as you probably know, is very trust-focused … you're gatekeeping dozens of children. You need to know that that trust is there." 

Other questions and answers with Benson included: 

The Michigan Chronicle: What did you learn through that (primary election) process? 

Benson: "How hungry people are for leaders who are going to drive down costs and grow our economy, and actually try to fix broken systems. The people of Michigan know that I have a track record of taking broken systems and transforming them. 

"They've experienced it firsthand through going to the Secretary of State offices. They've seen how we've been able to make government work better, and I think what you saw is a clamoring for more leaders who will lead with authenticity and sincerity and transparency. 

"But also be committed to just making people's lives easier, driving down costs, increasing access to wealth-paying jobs, keeping people safe in communities and be willing to take on whatever forces, even if it's the President of the United States, even if it's wealthy and entrenched interests, in order to achieve that change." 

MIRS: Do you consider yourself a Medicare for All advocate? 

Benson: "I consider myself an advocate for affordable, accessible healthcare all across the state, whatever that looks like. 

"To me, in this moment for states, (it's) looking to ensure our prescription drug prices are going down. It's why I propose creating a healthcare affordability board that has been proven in other states to drive down those costs. It's why I want to reform the Department of Health and Human Services to make it as seamless as possible for people to access the benefits that they're entitled to under the law. 

"And it's in short contrast to John James, who has actually voted multiple times to increase healthcare costs, to make healthcare less affordable and accessible for the people of Michigan, and I do think that is the choice that voters will be facing." 

The Michigan Chronicle: You're a Detroit resident. There's going to be a lot of opinions shared over the next few weeks as the city council talks about the transformation plan that Bedrock has proposed. You got any opinions on the idea of tearing down those (Renaissance Center) buildings to make way for Michigan's 'finest entertainment destination'? 

Benson: "I'm all for creating spaces for people to celebrate culture and arts and entertainment that generates revenue. But at this stage, the most important thing is that the people's voices are heard in this process. 

"That we have an open, transparent process so that the citizens of Detroit can be a part of deciding what that looks like, what cultural centers and other places look like in the city. That citizen engagement and involvement is our best shot in this moment of making sure anything that's developed actually serves the needs of the residents of the city and the state."

MPSC Recommends Utility Changes; Wendzel Points To GOP Lighthouse Plan

Ending annual rate cases, changing how utilities are rewarded for investments and requiring data centers to cover the full costs they place on the electric grid are among the recommendations the Michigan Public Service Commission (MPSC) gave to lawmakers today to lower household energy costs.

The suggestions came in response to Gov. Gretchen Whitmer's request that the Commission identify legislative reforms and assistance programs that could improve energy affordability and grid reliability.

House Energy Committee Chair Rep. Pauline Wendzel (R-Watervliet) was quick to respond in a statement that the commission is "finally admitting" that the Legislature needs to solve the state's energy planning laws. 

"That's exactly what Project Lighthouse does, and it's why the House Republicans took action," Wendzel said, referring to the two-bill package passed earlier this spring that would undo major portions of the clean energy laws Democrats approved in 2023.

"I'll work with anyone on the parts of this recommendation that actually lower bills, but you can't put a Band-Aid over a broken law that forces the Commission to prioritize the wrong things. We passed Lighthouse for a reason, and I'm not walking away from it."

Among the most significant changes proposed by the MPSC is moving away from annual utility rate cases and toward multi-year rate plans, which the Commission said could prevent utilities from seeking another increase shortly after a previous one is approved and give customers greater predictability.

The Commission also recommended changing utility incentives so earnings are more closely tied to cost efficiency and customer outcomes rather than capital spending.

The existing regulatory model can encourage utilities to favor large capital investments over potentially less costly alternatives, the Commission said, including expanded tree trimming or making better use of existing infrastructure.

"Affordability is always a top priority of the MPSC, and we're committed to keeping energy costs reasonable even as we tackle the need to invest in modernizing and strengthening the power grid to improve reliability," MPSC Chair Dan Scripps said.

The Commission also advised lawmakers to require utilities to make better use of infrastructure customers have already paid for before pursuing expensive new construction. That could include greater use of grid-enhancing technology, advanced conductors and existing rights-of-way.

Other recommendations include eliminating unnecessary utility incentives, using lower-cost financing for retired power plants, expanding competitive bidding for energy projects and changing rate designs to better reflect costs on the grid.

Another notable recommendation was requiring data centers to pay 100 percent of the costs they create for the electric system, including transmission upgrades, rather than passing those costs along to other customers.

The Commission recommended making households earning up to roughly 200 percent of the federal poverty level eligible for low-income utility rates and credits, matching the eligibility standard adopted for Michigan Energy Assistance Program aid in 2024. It also recommended expanding eligibility for the Home Heating Credit and State Emergency Relief.

States Falling Behind On Road Maintenance Needs As Costs Increase

(CHICAGO) – Thirty-three states are falling short of their own goals for maintaining roads, bridges and other transportation infrastructure as construction costs rise faster than the revenues traditionally used to pay for repairs, lawmakers were told earlier this month.

State fuel tax receipts grew about 50% between 2003 and 2023, while construction costs nearly tripled over the same period, David Draine of the Pew Charitable Trusts told lawmakers during a National Conference of State Legislatures (NCSL) panel.

A majority of states expect either a funding shortfall, an infrastructure condition shortfall or both over the next decade, based on projections in their transportation asset management plans, Draine said.

The problem is compounded by years of deferred maintenance. When states delay preserving roads and bridges, the need does not disappear and repairs can become significantly more expensive, leaving future taxpayers with the bill and potentially crowding out other state spending priorities.

At the same time, the gas tax that states have traditionally relied on to fund transportation is becoming less dependable as vehicles become more fuel efficient and electric vehicles account for a larger share of those on the road.

States have responded by increasing fuel taxes, imposing or raising fees on electric and hybrid vehicles and considering other options, including expanded tolling and charges based on the number of miles a vehicle travels.

Draine said those efforts have generally been incremental rather than based on identifying the full size of a state's transportation funding gap and finding enough revenue to close it.

The funding challenge persists despite increased investment by states and the federal government.

Caroline Sevier of the American Society of Civil Engineers said the nation's overall infrastructure grade reached a “C” for the first time in the organization's most recent report card, reflecting improvement following state investments and an infusion of federal money through the Bipartisan Infrastructure Law.

But the nation's overall infrastructure investment gap continues to grow and is now projected at $3.7 trillion over the next 10 years, Sevier said. Rising costs are driving part of the gap, along with growing infrastructure needs in areas including water and energy.

“There is still a lot of room for improvement,” she said.

Illinois offers one example of how states have tried to address the problem.

Holly Bieneman, director of the Office of Planning and Programming at the Illinois Department of Transportation, said that a decade ago the state did not have enough money available to take full advantage of federal transportation grants.

Illinois lawmakers responded in 2019 with a capital package that doubled the state's motor fuel tax, indexed it to inflation and added $50 to vehicle registration fees.

Since then, Illinois' capital program has doubled in size, Bieneman said.

“We made a lot of good progress, but still have a long way to go,” she said.

The state continues to face challenges, including a declining transportation workforce that has forced Illinois to rely increasingly on outside consultants.

Bieneman said lawmakers were able to make the case for higher transportation taxes and fees in part because residents could see the deterioration of the state's roads themselves and data showed what would happen without additional investment.

“I think that really helped to make our case,” she said.

Panelists also emphasized that continued maintenance is cheaper in the long run than allowing roads, bridges and other infrastructure to deteriorate until major reconstruction is necessary.

Draine said deferred maintenance ultimately shifts costs to future taxpayers while making it harder for states to fund other priorities and prepare transportation systems for extreme weather and other future risks.

Long-Range Forecast Calls For Cloudy Skies For State Budget

(CHICAGO) – States are entering the next budget cycle with healthy reserves, relatively low debt and generally strong credit ratings, but federal funding changes – particularly those affecting Medicaid – are emerging as the biggest cloud over their financial outlook.

That was the message from Savannah Gilmore of S&P Global during a National Conference of State Legislatures summit session a couple weeks ago appropriately titled “State Budget Forecast: Cloudy Days Ahead.”

“I’ve always wanted to be a meteorologist,” Gilmore joked.

For now, the forecast for states might best be described as partly sunny.

More than half of states have reserves equal to at least 10% of revenues, Gilmore said, while state debt averages only about 2% of gross state product.

“States have a large capacity to issue more debt and leverage should they need to,” she said.

S&P considers an 8% reserve target sufficient for a state to qualify for the highest rating under that part of its analysis.

“Over half of states have double-digit reserves or higher,” Gilmore said. “I think as we look ahead, that is a key element that really helps preserve that sunshine in the forecast.”

Many states also carry S&P’s top-tier AAA credit rating, reflecting what Gilmore described as an “extremely strong ability” to repay debt even under adverse conditions.

That doesn’t mean legislatures can coast.

Gilmore said state lawmakers directly influence creditworthiness through spending decisions, predictable revenue streams and policies affecting the financial health of local governments and schools.

S&P also looks at states’ multi-year financial forecasts, although Gilmore said states aren’t penalized simply for missing them. It would have been “wild,” she said, to expect a state several years ago to accurately forecast the fiscal consequences of a major geopolitical conflict in early 2026.

When Gilmore asked lawmakers which of four issues – inflation, weakening consumer spending, geopolitical conflict or federal policy and funding changes – posed the greatest challenge to their states, the overwhelming response was federal policy.

Medicaid is a major reason why.

The program has consumed an increasing share of state budgets, and Gilmore said provisions of the federal HR1 law, also known as the One Big Beautiful Bill, could place additional pressure on states as its more expensive provisions phase in.

Some states believe they may offset federal reductions through lower Medicaid enrollment, she said. Others have told S&P they see little chance of absorbing the cuts without making difficult choices.

“I’ve … talked with states that say there’s next to no way we could absorb that level of federal cuts, and ultimately there’s going to be difficult decisions on the horizon,” Gilmore said.

States are already looking for ways to prepare.

New Mexico created a Medicaid Trust Fund last year that can be tapped to supplement Medicaid spending if certain thresholds are reached. Other states are considering ballot measures to address constitutional provisions tied to voter-approved Medicaid expansions.

Gilmore said strong reserves and management practices give states a better chance of weathering those changes.

“States are very resilient,” she said. “A lot of them are highly rated, and what that means to us is you have strong capacity to navigate disruptions.”

The key, she added, will be “strong management, proactive forecasting and long-term planning” as federal changes reach their phase-in dates.

S&P is less concerned about whether a state chooses to raise or cut taxes than whether the resulting budget remains structurally balanced, Gilmore said.

Some states have cut taxes, while others are considering higher taxes on upper-income earners. Because those taxpayers’ incomes tend to fluctuate more with markets and the economy, Gilmore said S&P looks closely at how states plan to use the resulting revenue.

The agency may be more comfortable, for example, if volatile revenue is directed toward one-time spending or programs that can be adjusted when collections fall.

Gilmore said states also appear roughly divided over whether to remain fully aligned with the federal tax code following changes made in HR1.

And despite pension liabilities representing a significant portion of states’ long-term obligations, Gilmore said she has not seen a major shift in pension investment strategies aimed at boosting returns.

S&P is, however, watching states’ exposure to private equity.

“We’re just finding that some of those returns can be a little more unpredictable,” she said.