Governor Gretchen Whitmer toured the Detroit Auto Show Wednesday and delivered an address to industry leaders about for some of her plans for 2025, including big asks for road funding and economic development incentives.
The Democratic governor has not delivered her State of the State address or rolled out her budget yet, but shared signals on what’s coming. She said Michigan faces global competition to dominate electric vehicle production.
“This is a serious moment,” she said. “Right now, the future of the entire auto industry is at stake. The very core of Michigan’s economy is on the line.”
Her plans for a development fund have been met with bipartisan support as well as bipartisan derision for business subsidies. But she said other states keep pots of money for business attraction and Michigan cannot afford to fall behind. As a tradeoff, she has proposed a payroll tax break for businesses that add new jobs in the state.
Whitmer faces a different political environment in Lansing after Republicans won enough seats last year to win control of the state House, while the Senate remains in Democratic hands.
Whitmer said she is willing to consider tax cuts in negotiations with Republicans, who took control of the state House this year. But she said a permanent new revenue source is needed for roads and other infrastructure. She also said the state needs to fund economic incentives to compete for manufacturing development.
Whitmer said she stands ready to work with President-elect Donald Trump and Republicans in the state Legislature to enact an economic agenda.
“Now I don’t want to pretend we’re always going to agree, but I will always seek collaboration first,” she said. “I won’t go looking for fights. I won’t back down from them either. Because I’m not here to play games. I’ve got a job to do.”
She said a compromise in Lansing that includes budget cuts and new revenue for roads and manufacturing incentives is possible. Republicans say they’re listening but cool to the prospect of new taxes.
“We think we can do it without it, but we’re looking forward to the discussion,” state Representative Joe Aragona (R-Clinton Township) told Michigan Public Radio. “We’re hoping to have the discussion, yeah, but our plan has billions of dollars without raising revenue.”
He said House Republicans’ starting point is using a projected increase in state revenue next year for roads.
