Budget deal reached to fund roads, avoid state government shutdown

Plan would end taxes on tips, overtime, Social Security; cut waste from state budget State Rep. David Martin today announced that House and Senate leaders, together with the governor, have reached a framework agreement to fund roads, complete the state budget before the Oct. 1 deadline, and prevent a government shutdown. Martin, R-Davison, said the deal will meet Michigan’s most urgent infrastructure needs, lead to a more efficient and effective state government, and provide long-awaited tax relief for working families and seniors. “This agreement shows what we can accomplish when we focus on delivering results for the people of Michigan,” Martin said. “We are going to fix our roads; eliminate waste, fraud, and abuse in state government; and deliver meaningful tax relief so families can keep more of what they earn.” The plan implements President Trump’s tax relief plan at the state level by eliminating state taxes on overtime pay, tips, and Social Security income. This will help more than 500,000 Michiganders make ends meet and afford their monthly bills. The plan will also result in nearly $2 billion more each year going to local road repairs. Every penny of tax collected at the gas pump will go directly to road repairs, with additional funding freed up by cutting waste, fraud, and abuse in the state budget. Martin emphasized that the deal will also restructure the state’s broken budget process, rein in excess spending, and put Michigan on a stronger long-term financial footing. “This agreement marks a new chapter for Michigan,” Martin said. “We are cutting waste, returning more money to hardworking people and seniors, and finally putting every dollar at the pump into fixing our roads. I’m confident this plan will build a stronger future for our state and restore people’s trust that their government can get the job done.” As final negotiations continue, Martin said he expects the budget to include record-high funding for Michigan schools, while making clear that the House does not support raising hunting and fishing license fees as Senate Democrats have proposed.