Lawmakers in House and Senate Urged to Reconsider FY 2023-2024 Budget Spending Levels
On June 28, 2023, the Legislature passed an unprecedented state budget of $82 billion for Fiscal Year (FY) 2023-2024. (Michigan’s Fiscal Year runs from October 1 – September 30.)
Of that money, $7B was one-time money from both federal funds and higher than expected revenue. While many pro-small business legislators advocated returning those dollars to taxpayers, the legislative majorities chose to spend almost all the budget surplus on pet projects, giveaways, and programs to further their anti-small business agenda.
In comparison, the FY 2018-2019 was $58B. Even removing one-time funds, that amounts to a 30% increase in spending.
NFIB expressed its concerns to legislators about the massive amount of increased spending represented in the budget.
“Small business owners believe that continued budget surpluses should be returned to the taxpayers, not used to grow government. This year we have already seen $3.2B of taxpayer money given to big businesses in the name of economic development. Meanwhile, almost nothing was done to help small business recover from forced shutdowns and restrictions. Since then, inflation, supply chain issues, and labor shortages continue to hamper their economic recovery.
The level of spending so far this year in addition to this budget are a huge red flag to small business owners who know that if there is a downturn in the economy, tax increases will be needed to maintain the spending levels.”
NFIB’s letter also noted that the FY ’23-’24 budget includes new full time government employees within several departments to specifically focus on enforcement of regulations. “NFIB will never defend bad actors, but the attitude seen in recent legislation along with these expenditures that presume the majority of business owners are intentionally breaking the law is alarming.”
Governor Whitmer is expected to sign the budget this month. For a detailed account of what is in Michigan’s budget, go HERE.
