By Governor Gretchen Whitmer
April is tax season and financial literacy month. As Michiganders wait for tax refunds to hit their bank accounts and assess family budgets ahead of summer vacation season, the rising costs of essentials like gas and groceries are at the forefront of their minds. For the Black community, like every community, every dollar counts. That’s why we are working hard to lower costs and put money back in your pocket, where it belongs.
Countless Michiganders had the rug pulled out from under them when the last administration slapped on the retirement tax, taking money our seniors had been promised after a lifetime of hard work. Understanding the disparate impact this tax would have on communities of color, I fought against it as a state representative. It was wrong. Last year, our new majority in the Michigan Legislature made it right. I was proud to sign legislation rolling back the retirement tax, which will save half a million households an average of $1,000 a year. Our repeal equalized public and private pensions and delivered immediate relief to first responders.
We also quintupled the state match for the Working Families Tax Credit, also known as the EITC, which is projected to put an average combined state and federal refund of $3,150 back in the pockets of 700,000 working families. As of March 31st, 2024, the Treasury has already processed 464,000 returns, a good portion of which are from residents in communities of color. Statewide, that’s more than $420 million back into family budgets.
In my first term, I signed bipartisan legislation to bring down the cost of car insurance. Last year, we delivered refunds of $400 per vehicle to Michigan drivers. To grow our economy and lower costs more, our budget proposal includes the MI Vehicle Rebate plan, which would save Michiganders between $1,000 and $10,000 on a new vehicle.
Housing is often the largest expense in a family’s budget. That’s why this year, we will make the largest investment to build housing in Michigan history to build or refurbish 10,000 homes. Getting this done will expand the supply of all kinds of housing and lower costs for working families.
We made four key moves to lower the cost of education. We delivered free breakfast and lunch to all 1.4 million public school students in Michigan, saving parents over $850 a year per kid on groceries and valuable time every morning. We expanded free pre-K to 5,600 kids last fall, saving families $10,000 a year, and have already taken steps to expand it to thousands of kids. We expanded Michigan Reconnect, making 350,000 more Michiganders eligible for tuition-free paths to higher education and skills training. Finally, we enacted the Michigan Achievement Scholarship, which lowers the cost of college by thousands and helps 65% of students go tuition free when combined with federal aid. But we’re just getting started. Our budget proposal includes the Michigan Guarantee, which would deliver free public education from pre-K through community college to every student in Michigan.
All these cost savings add up to one thing: more money in your pocket to spend on the essentials you need to survive like groceries, gas, school supplies, or a rainy day. While no one person can solve inflation by themselves, we can help lower costs on the stuff that makes a real difference in your life. You work hard, save money, and deserve to breathe a little easier about your finances. I’ll keep working with partners in the legislature to fight for you.