What do members need to know about the
newly passed 2022-2023 state budget?
After weeks of negotiations with the Whitmer Administration, the Michigan Legislature is adjourned for the summer after passing a record-breaking $76 billion Fiscal Year 2022-2023 state budget. The budget includes an additional $1 billion one-time payment towards paying down debt in the Michigan Public Employees’ Retirement System (MPSERS), as well as $425 million to offset MPSERS costs from an accelerated reduction in the payroll growth rate. Both of these investments will further strengthen the retirement system going forward. Overall, the budget provides significant investments into public schools, with an increased emphasis in funding special education, as well as money set aside in various budgets to strengthen public employee retirement systems at both the state and local levels.
The Legislature also passed HB 4375, which would delete nearly a dozen years worth of complicated and cumbersome restrictions on retirees returning to the classroom to fill essential vacancies, such as bus drivers and substitute teachers. HB 4375, sponsored by Rep. Steve Johnson (R-Wayland), significantly streamlines the MPSERS Act to allow retirees to return to the classroom without earnings limitations 9 months after retirement. There’s much more work to be done to fix the school employee pipeline in Michigan and ensure students receive support and quality education, but we are glad to see relief and resources prioritized with SB 854 and HB 4375. We look forward to Governor Whitmer signing the legislation.
While Governor Whitmer and the Michigan Legislature have both proposed varying degrees of tax relief, those discussions will continue in the coming months as roughly $7 billion of combined revenue in the School Aid and General Fund remains on table. With so much revenue available, it is likely that both sides come to some sort of agreement on tax relief yet this year. MARSP will continue to advocate for relief from unfair tax increases on retirement benefits enacted in 2011. We encourage members to continue pressing the Administration, current legislators, and all candidates seeking office this year to take action on proposals that reduce or repeal taxation of retirement benefits in Michigan.
Help amplify our efforts in Lansing by letting your locally elected officials know your experience and expectations when it comes to tax repeal. For a streamlined approach, try our online advocacy tool:
