Advocacy News – Feb. 27, 2025
Last night, Governor Whitmer delivered her penultimate State of the State address to the joint Michigan Legislature and attending guests — delivering a speech that was intended, at least in part, to cater the House Republican caucus and President Donald Trump, who she said she hoped to find “common ground” with.
Why it matters: The Governor’s speech is intended to set the Executive’s policy goals for the coming year. While the speech was light on details, she focused on three goals with business-related priorities under each bucket:
Lowering Costs:
- Build, buy or fix nearly 11,000 homes to address the housing supply issues. The State is currently short about 140,000 housing units statewide, which is impeding job growth and retention in many areas of Michigan.
- Expanding affordable childcare.
Creating Jobs
- The Governor announced a new executive directive that will create more tuition-free paths to higher ed, career, and technical education for young men.
- She also called on President Trump to bring a fighter mission to Selfridge Air Base in Southeast Michigan.
Delivering Results
- The Governor acknowledged that Michigan’s permitting system is broken and called for bipartisan action to make permitting and licensing more efficient and less duplicative and costly.
- She also called for improved academic outcomes to literacy and testing scores. Despite record investments in the classroom, Michigan ranks a dismal 44th nationally for fourth grade reading scores in 2024.
What else:
- Tariffs – While the Governor said she was not opposed to tariffs outright; she did talk about the damage they could cause in Michigan if put into effect.
- Transparency – The Governor touched on the desire to work with Republicans on some key transparency measures in the legislative process, including greater disclosure of ‘pork-barrel’ spending in the budget process.
- Roads – The Governor called for an agreement on more funding for roads. Last week, the Governor pitched a high-level plan for roughly $3 billion more for roads — although many details of the plan remain unclear and likely include several taxes, and fee increases and is rumored to include a 2.5% increase in the Corporate Income Tax. The House Republicans also recently put out a plan that would create an additional $3.1 billion in road funding, without additional tax or fee hikes. While Republican leaders showed some support for the calls around budget transparency, permitting reform and road funding, they also cautioned that time will tell if the Governor is serious about funding bipartisan solutions to these issues. You can watch the full speech HERE.
What we’re saying: The Chamber put out a statement following the Governor’s speech which said, in part: “Addressing the challenges Michigan faces, including lagging population growth, deteriorating roads and bridges and declining education outcomes, requires a commitment to fiscal responsibility, sustainable budgeting and policies that promote – not hinder – economic opportunity. Proposals like a damaging Corporate Income Tax increase send the wrong message, deterring investment and slowing the very growth we need. The business community is committed to being part of the solution. We share the Governor’s optimism about Michigan’s bright future, but turning vision into reality requires thoughtful, meaningful policy making that ensures our state remains competitive, open for business and a place where free enterprise can thrive.”
For more information, contact Mike Alaimo at malaimo@michamber.com.