Advocacy News – Feb. 15, 2024
What happened: Last week, Governor Whitmer presented her $80.7 billion state budget proposal. Included in the proposal was a 13-fold increase to waste disposal in Michigan landfills by increasing what is known as the state’s tipping fee.
The proposed fee, increasing from $0.36 per ton of solid waste to $5 per ton, is to be used for recycling programs and cleaning up contaminated sites. The 1,289% increase in the fee is said to bring Michigan in line with average fee rates in Midwest states. However, the statistical averaging can draw a deceiving picture. Currently fees in neighboring states averages $5.32 per ton, with Wisconsin at $13 and Indiana at $0.60, creating a very different picture than the idea that Michigan is an outlier.
What we’re saying: The MI Chamber, along with partner groups such as the Michigan Waste and Recycling Coalition, were quick to voice concerns with the proposal. While at face value it may seem innocuous, increasing the costs of waste removal represents a tax on every Michigander, and disproportionately affects low-income communities.
The impact: In doing some preliminary number crunching on the proposal’s impact, it was found the average school district could see as much as a $300,000 increase in costs. While the MI Chamber is a fierce advocate for better funding and regulations surrounding contaminated site clean-ups in the state, the $60 million generated by this fee hike is a fraction of the funding necessary to make a significant impact on cleaning up some of the state’s 12,000 orphan sites.
What’s next: The MI Chamber has begun to meet with lawmakers on the negative impacts this proposal would create. While some have voiced significant reservations, it is still unclear whether the proposal will continue to gain traction through the budget process.
For more information, contact Mike Alaimo at malaimo@michamber.com.