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Karoub Report – March 2019

Posted by: Jennifer Gomori Posted date: March 6, 2019

Gov. Whitmer budget funds roads, schools, provides targeted tax relief

Gov. Gretchen Whitmer’s budget calls for increasing the gas tax by 45 cents under a three-part phase-in starting Oct. 1, 2019 through Oct. 1, 2020. That would raise about $2.5 billion in new annual revenue for roads, which will be deposited into a new Fixing Michigan Roads Fund and allocated to the most highly traveled and commercially important roads at both the state and local levels; Gov. Whitmer is also asking for an additional $507 million to increase K-12 funding in her Fiscal Year (FY) 2020 budget including up to $180 more per pupil; The governor called for eliminating the so-called “pension tax” and proposed paying for it by taxing “pass-through” businesses at the same 6 percent rate as the existing Corporate Income Tax; Budget recommendations include funding to support a new trooper recruit school with the anticipation of graduating 50 new troopers to keep the Michigan State Police enlisted strength at about 2,100; and revenue sharing will increase 3 percent for counties, cities, villages and townships. For more details on the budget recommendation, click on the March 2019 Karoub Report and related link below.

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