(Source: MIRS.news, Published 05/15/23) As House and Senate Democrats began preliminary discussions today on working through their different 2024 budget plans, the chair of the House Appropriations Committee advocated on MIRS Monday for more money for economic incentives, not less, as some of her colleagues have suggested.
Rep. Angela Witwer (D-Lansing) said the next 18 months are "the most important time" for companies to invest in advanced battery and manufacturing due to the federal CHIPS Act. Michigan "will want to be a part of that," she said.
Up to now, Gov. Gretchen Whitmer has been pushing the Strategic Outreach and Attraction Reserve (SOAR) fund to drop hundreds of millions of dollars into large-dollar investments like the planned Gotion plant in Big Rapids or the Ford battery plant near Marshall.
"Until there is a national call to stop doing it, why would we stop competing?" Witwer said. "We need more tools in our toolbox … and I think SOAR is one of those tools that we need to have."
House Democrats last week passed a Fiscal Year 2024 budget that is nearing $81 billion, the largest in state history. Witwer said after state revenues are set again on Friday at the Consensus Revenue Estimating Conference (CREC), she expects that number will be pared down.
The current House Democratic product was crafted by subcommittee chairs with few parameters from House leadership, Witwer said. She'd like to continue to advance these priorities – K-12 spending, mental health services and low-income housing – during final target negotiations.
Republicans grumbled as the House budgets passed that they didn't restrict the Governor's ability to move money around within state government as prior ones had.
Witwer said she believes the Republicans are having a hard time adjusting to the minority. Asked if she's concerned that the Governor could go around the appropriations process when spending money, as was done in 2019, the House Appropriations Committee Chair said, "I think the administration works well with us right now, so I don't think that this is going to happen."
In other news, Witwer said she expects a final budget to be passed and sent to the Governor in mid-June.
