MIDLAND, Mich. — The Mackinac Center for Public Policy today calls for a Sustainable Michigan Budget that restrains spending to no more than the growth of the state’s population and inflation. In order to ensure that the state budget does not grow out of control, Michigan lawmakers should approve a 2023-2024 budget that spends less than $47.57 billion in state funds, a 7.9% increase in the budget. Gov. Whitmer is expected to unveil her budget plan on Wednesday.

Under Michigan’s balanced budget requirement, some lawmakers feel they ought to spend all the revenue they have available. But there are benefits to spending less. Having a sustainable budget encourages the government to prioritize spending decisions, ensures lawmakers will have resources available to deal with an uncertain future, and keeps state budget growth manageable over the long term.

“The large revenue growth lawmakers have seen over the past three years is unlikely to continue,” said James Hohman, director of fiscal policy at the Mackinac Center. “Restraint ensures that residents get the best return on their tax dollars.”

Administrators expect revenue growth to trigger an automatic reduction to the income tax rate, which would lower the rate from 4.25 to 4.05%. This makes the state more competitive, helps to grow our state’s economy and lets taxpayers keep more of their own money year after year. Passing a Sustainable Michigan Budget ensures that the state can afford to reduce taxes.

“Lawmakers are already seeing the benefits of measured increases in state spending from last year’s policymakers,” said Hohman. “They ought to continue to be judicious about how they spend more taxpayer dollars.”

Learn more about the Sustainable Michigan Budget here.