News Bite

New York Times Says Whitmer Reversed Underinvestment; Her First Budget Had Decade’s First Decline

State spending increased for nine consecutive years but that ended with Whitmer’s first budget

The New York Times made a claim that the state of Michigan has a “long history of underinvestment in the state and its citizens.” But that’s not supported by state budget data, if “underinvest” means “spending less.” State budgets going back 10 years show an increase in state dollars being spent, even after adjusting for inflation.

The New York Times made its claim in a June 25 news article about Michigan Gov. Gretchen Whitmer: “By late May, it was becoming clear to Whitmer that instead of being the governor who reversed Michigan’s long history of underinvestment in the state and its citizens, she might well be one who accelerated the process.”

Spending from state government dollars (not including local or federal dollars) increased for nine consecutive years from 2009-10 through 2018-19, even when accounting for inflation. That’s according to the Michigan Senate Fiscal Agency. The streak snapped in 2019-20 with Whitmer’s first budget, when total state spending declined in inflation-adjusted terms.

In the 2009-10 fiscal year, the state spent the equivalent of $30.09 billion in current dollars. By 2018-19, state spending had risen to $34.85 billion. The rise ended in the first state budget signed by Whitmer, which authorized $34.78 billion in state spending for the 2019-20 fiscal year, which began Oct. 1, 2019.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

News Bite

Officials Saw Struggle Coming To Process Epidemic Unemployment Claims

There are 11,824 people still waiting months after filing

The New York Times reported that as early as March 10, while contemplating a statewide stay-at-home order, Gov. Gretchen Whitmer’s staff was concerned about the state’s ability to handle the unprecedented numbers of people seeking unemployment benefits the order would cause.

The New York Times wrote, “The chief of staff, JoAnne Huls, scribbled notes on whiteboards [on March 10]: How would they get money and health benefits to people who would lose jobs?”

And months later, they’re still struggling to make it work.

On June 23, the state of Michigan announced that there were 11,824 people probably eligible for unemployment benefits who had filed before May 1 and are still waiting. Officials have announced a goal of making decisions on those 11,824 claims by July 4.

 

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.