Honigman Capitol Report

Revenue Estimating Conference Official Revenue Forecasts Announced Today

The May Consensus Revenue Estimating Conference was held this morning and included presentations focusing on state and federal economies and state government revenues. Official revenue forecasts were established for fiscal years 2023, 2024, and 2025 by a consensus of the conference principals including the State Treasurer, the Director of the Senate Fiscal Agency, and the Director of the House Fiscal Agency. Overall Revenue Forecasts (in millions) are listed below:

Revenue estimates are based on the most recent economic projections and forecasting models.

Whitmer Announces New Electric Vehicle Corridor

Governor Gretchen Whitmer announced a new Electric Vehicle Corridor Wednesday between Kalamazoo and Quebec City, Quebec. In a press release from Whitmer, which included Detroit Mayor Mike Duggan, U.S. Transportation Secretary Pete Buttigieg and Canadian Minister of Transport Omar Alghabra, the officials said the EV Corridor will feature fast charging stations approximately every 50 miles. The distance between Kalamazoo and Quebec City is just over 850 miles, requiring around 17 charging stations. Buttigieg stated “with historic investments in EV infrastructure from the Biden-Harris Administration and the Canadian government, we are creating a new generation of good-paying manufacturing jobs, making it possible for drivers everywhere to reap the benefits and savings of these vehicles while helping us fight climate change." Mayor Duggan highlighted the importance of working toward the goal of zero emissions. According to the press release, the corridor is a part of investments made by the Bipartisan Infrastructure Law signed by President Joe Biden in 2021.

Civil Service Commission Proposes Dropping Cannabis from Drug Testing

Public comment is being accepted through June 23, 2023 on the Civil Service Commission’s proposal to exclude pre-employment marijuana testing for non-test designated positions in all state departments and agencies. The proposed amendment relaxes drug testing requirements and states that if an agency does require testing for other drugs, the agency must obtain written approval from the director. If the rule is adopted, the director could also make changes that allow people with an active three-year sanction based on a positive result to request rescission. Civil Service Commission Chair Jase Bolger referenced the passage of Proposal 1 in 2018 which legalized recreational use of marijuana as the reason why “it’s time we treat it as like we do alcohol.”

Most Mid-Michigan Democrats Back Slotkin for U.S. Senate

Last week, Senate Appropriations Committee Chair Sarah Anthony (Democrat), all other elected Democratic legislators from mid-Michigan and 50 other leaders came out in support of U.S. Rep. Elissa Slotkin’s bid for the open U.S. Senate seat. In addition, Lansing Mayor Andy Schor, half of Ingham County’s elected officials and more than half of the Lansing City Council also voiced support for Slotkin. With just over 500 days left before the 2023 general election, the endorsements are significant in that, with only one other Democratic candidate in the field (Southeast Michigan business executive Nasser Beydoun), Slotkin has already buttoned down significant support.

Looking Ahead

With both the House and Governor’s recommended budgets considerably larger than May revenue estimates for the upcoming fiscal year, talks will intensify related to what items to trim and how much. Despite recent Michigan unemployment numbers as low as 3.8 percent, a reduction in the individual income tax rate and projected weaker economic growth are among the factors conspiring to blunt January estimates.