Capitol Connection Newsletter: April 11, 2023
In This Issue
- MDOT Construction Update for LRCC Members
- Great Lakes Michigan Job Coalition Pushes Great Lakes Tunnel Project to Resume
- State Income Tax to Decrease for One Year
MDOT Construction Update for LRCC Members
As we move into another year of economic recovery and growth, it’s important to stay informed about the state of our transportation infrastructure and how it affects our businesses and communities. That’s why we’re excited to invite you to a virtual construction update by the Michigan Department of Transportation (MDOT) on Thursday, May 18 from 1 to 2 p.m. via Zoom.
During this update, you’ll hear directly from MDOT officials about the progress of ongoing projects in our region, as well as their plans for future improvements. You’ll also have the opportunity to ask questions and provide feedback on how MDOT can better support your transportation needs and concerns.
This event is open to all members of the LRCC, but registration is required. There is no charge for members. We hope you can join us for this informative and engaging conversation with MDOT. Registration is available below.
Great Lakes Michigan Job Coalition Pushes Great Lakes Tunnel Project to Resume
The Great Lakes Jobs Coalition is advocating for the resumption of the Great Lakes Tunnel Project in Michigan to start as soon as possible. The U.S. Army Corps of Engineers extended the federal permitting process pushing construction to begin in 2026. The project involves building a tunnel to house a replacement section of the Enbridge Line 5 pipeline that runs beneath the Straits of Mackinac, a critical waterway connecting Lake Michigan and Lake Huron. The coalition argues that the project will create jobs, improve energy security, and protect the Great Lakes from potential oil spills.
The LRCC is a member of the coalition, and this project aligns with the Chamber’s policy priority of economic development and job creation. Learn more about Great Lakes, Michigan Jobs below.
State Income Tax to Decrease for One Year
The Michigan Department of Treasury announced that Michigan’s state income tax will decrease to 4.05% for one year. The current state income tax is 4.25%. More information is available below.
Why did this happen?
In the 2015 road funding package, there was language that mandated an income tax reduction in the rate if General Fund (GF) revenues grow by factor of inflation plus economic growth. Both the House and Senate Fiscal agencies projected GF revenue increased enough to trigger an income tax decrease to about 4.05 percent.
Why only one year? Michigan Attorney General Dana Nessel released an opinion in response to a request from Michigan Treasurer Racheal Eubanks that stated any income tax rate reduction would be temporary under a 2015 law that triggers a reduction based on revenue growth. Republicans have continued to argue this reduction should be permanent.
Learn more here.