Legislative leaders butt heads on economic development and more as Mackinac Conference closes • Michigan Advance (2024)

• Business
• Business + Labor
• Courts
• Criminal Justice
• Election 2024
• Elections
• Labor
• Politics + Gov

During a tense panel at the Mackinac Policy Conference, Michigan’s legislative leadership sparred over economic development and more following Democratic Gov. Gretchen Whitmer’s announcement of efforts to support entrepreneurship in the state.

House Speaker Joe Tate (D-Detroit), House Minority Leader Matt Hall (R-Richland Twp.), Senate Majority Leader Winnie Brinks (D-Grand Rapids) and Senate Minority Leader Aric Nesbitt (R-Porter Twp.) sat down Thursday with Michigan Public Political Director Zoe Clark, discussing democracy, economic support and working toward stability in the state’s development.

The quadrant panel is an annual tradition at the conference on Mackinac Island and typically features a congenial discussion among bipartisan leaders toward the end of the event. But the tone of this year’s panel was decidedly more combative, as Republicans criticized Whitmer and the Democratic Legislature for COVID health measures in 2020 to the Right to Work repeal to tax incentives benefitting the electric vehicle industry.

Citing polling released earlier this week by the Detroit Regional Chamber, Clark asked leaders why only 67% percent of Michiganders polled believed Democracy was the best form of government.

“I think you look, people are losing trust in our government. Right. I mean, they see some of the injustice that’s going on in our judicial system at the federal level. They see a system where they’re, you know, the cost of living is increasing. You know, they see all these sweetheart deals that big corporations are getting and the taxpayers are on the hook for it,” Hall said, likely referring to the prosecution of Donald Trump, whose supporters believe the many legal cases against the former president are politically motivated.

The panel took place just before Trump was found guilty on all 34 felony counts in the New York hush money trial.

“I think people are looking for leaders who are going to restore trust and not pick winners and losers, but treat people fairly all the way from the justice system, all the way to the tax code,” Hall continued.

Tate pointed to the country’s history and past events like the Civil War and World War II noting there had been ebbs and flows in support of American democracy.

“I think, at the end of the day, how are we ensuring that our institutions are supportive? Because, you know, this is an experiment. I mean, it gets out to the core of our country, we are this American experiment. And how do we continue to be a buttress for that, you know, for our values for our democracy,” Tate said.

“We know that there are a group of people that are pushing back on that, and we see that not only nationally, but they see that globally. So the question is, what are we going to do about it,” Tate said. “Are we gonna uphold our institution? Are we going to ensure that we’re continuing to … have civil conversations and not walk out the room around discussions? Or … are we just going to say, ‘Let’s walk away from 200 years, over 200 years of work that we built, and other people have built in this country?”

In order to continue to support democracy, Brinks said it is vital to keep having those discussions and focus on the needs, and core functions of state government.

“It shouldn’t be about the political gotcha points; it should be about engaging our constituents and all of the stakeholders in those kinds of policy discussions,” Brinks said.

Clark also asked leadership about their plans for economic development as both chambers and parties offer and weigh proposals.

Tate said there was room for the two chambers and the governor to come together in an effort to grow the economy, pointing to efforts aimed at complementing and fostering economic development.

“Look at the resources that we’ve invested in housing — creating a dedicated source for affordable and workforce housing space, because we know it needs that. You look at placemaking, we’ve also done that, as well, too. You look at, you know, economic development tools, such as R&D Tax Credit, reforming Renaissance zones that passed out of the house in a bipartisan fashion, which is something I’m very proud of,” Tate said.

“It is an ongoing discussion of how are we refining economic development to be the most competitive state, and not only in the Midwest, within the nation,” Tate said.

However, House Republicans have stood firm in their economic vision, with Hall saying they had placed solutions on the table.

Earlier this year, House and Senate Republicans both unveiled their economic development plans, which focused on rolling back regulations and reversing Democratic efforts, like their repeal of Michigan’s Right to Work laws, which allowed employees to receive union benefits without having to pay dues.

“I’m very talented at pointing out faults of Democrats, but I’ve learned some new tools, too, with [GOP former] Gov. [Rick] Snyder, which is putting forward a positive vision, and we’ve done that,” Hall said.

“No. 1, some of these are longer-term goals. But you know, the income tax went up this year. That’s not good for competitiveness for the state. We want to see [economic development] programs measured for return on investment for taxpayers, so we can better set priorities. You know, they have some good ideas, but they can’t just keep tacking them on and on and on, and spending and spending and raising taxes,” Hall said.

In early March, the Michigan Court of Appeals affirmed a decision by the Court of Claims that a 2023 decrease of the individual income tax rate brought on by a spike in state tax revenue in 2022 was only temporary. The coalition of Republican lawmakers and business groups who argued the rate reduction from 4.25% to 4.05% should be permanent have appealed the ruling to the Michigan Supreme Court.

While Republicans also want to see a return of Right to Work, right now what they can do is focus on making economic development efforts like Michigan’s SOAR fund more accountable and transparent, Hall said.

In looking to the future, one thing that has been missing is a long-term plan for what economic development looks like in Michigan, Brinks said, a criticism Hall has previously leveled at Democrats.

“We’ve been talking about that now for the last couple of months. It’s an idea that’s been percolating, but that can give us a roadmap that will outlast my time in the Senate, it will outlast you know, executive leadership,” Brinks said.

“Hopefully, that can be a guidepost that can garner support from both sides of the aisle and both chambers and help us move forward with a framework,” she said.

Without that roadmap, it’s hard for lawmakers to come together across the aisle and across chambers to deliver something that’s sustainable, fiscally responsible, and can predictably provide support to Michigan residents and businesses.

However, Nesbitt argued in the past year Democratic efforts including repealing Right to Work laws, the expiration of a temporary income tax rate cut, reimplementing prevailing wage and allowing the Michigan Public Service Commission to oversee permitting for large-scale solar, wind and battery storage projects had taken Roundup to the state’s economic garden, borrowing a metaphor used by Republican former Gov. Rick Snyder during his time in office.

When asked if he would give an immediate effect vote to the state budget for Fiscal Year 2025, Nesbitt responded by asking if Democrats were going to steal from the teacher pension fund, echoing criticisms that a $670 million reduction in contributions to the fund as COVID-19 funding dries up is being used to bankroll Democratic priorities. While the Michigan Public School Employees Retirement System’s unfunded liabilities have passed $35 billion, those are on schedule to be paid off by 2038, according to a report from Gongwer.

The budget needs immediate effect from two-thirds of the House and Senate in order to go into effect by the start of the new fiscal year on Oct. 1. Unlike the House, the Senate holds roll-call votes and this is a way that the minority party can exert some power.

When asked his projection on the House’s political makeup following the November election, Hall disagreed with Nesbitt’s projection of 60 Republican members and 50 Democrats, saying the number was too low. The House is currently made up of 56 Democrats and 54 Republicans.

“Donald Trump won four districts that Democrats hold now twice, and another 10 he won in ‘16. So we got a lot to pick from and it’s tough for the speaker because going out and saying 56 is the best-case scenario, that’s a hard case to make and you know, he is a good salesman. But this is a different environment and we have a great organization. We’re gonna win,” Hall said.

In her closing remarks, Brinks said lawmakers can either participate in a culture of grievance and try to relitigate the events of the last decade, or they can come to the table and work together to find solutions for the people they represent. She also praised Tate for his performance in the House.

“Speaker Tate has done a fantastic job in the state House. It can be challenging to work in a new majority, but I am more than confident that we are in a fantastic position to run on the things that we have gotten done,” Brinks said.

“I am proud that we have been able to do what we’ve been able to do in the last year-and-a-half. And I’m confident that as our house members are out there running for reelection and as we have our new candidates on the ballot in front of voters that we will be able to make that case,” Brinks said.