News Story

Michigan had 18K electric vehicles in 2021; will it reach 2M by 2030?

Whitmer seeks $113M for charging equipment and subsidies

The Michigan Department of Environment, Great Lakes and Energy believes that Michigan needs to build the charging infrastructure for 2 million electric vehicles by 2030.

That is a lofty assumption, considering Michigan’s starting point.

According to U.S. Department of Energy data from 2021 — the most recent numbers available — Michigan had 17,500 EVs, out of roughly 8.7 million vehicles registered. That means EVs accounted for about 0.2% of all vehicles in Michigan.

If Michigan had the same number of vehicles in 2030 as it does today, 2 million EVs would account for roughly 22% of the vehicles in the state.

In Gov. Gretchen Whitmer’s 2024 budget, Whitmer seeks $65 million for EV charging stations. She seeks another $48 million over two years in sales and use tax exemptions for EV purchases. That’s $113 million to accommodate and stoke demand for electric vehicles.

 

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

Michigan’s 2024 budget will spend all but 3% of state’s $9B surplus

Whitmer has requested a record $79B budget for 2023-24

If the 2023-2024 Michigan budget passes as recommended by Gov. Gretchen Whitmer, the state will spend all but $250 million of its $9 billion surplus, budget director Christopher Harkins said Wednesday.

“When we make changes to our tax code, and we make sure that we reinvest in our in our people and put money back in their pockets, that’s a direct impact on our resources,” Harkins said Wednesday, answering a lawmaker’s question.

“This budget recommendation leaves about $250 million on the balance sheet, between both the general fund and the School Aid Fund, at the end of fiscal year ‘24,” Harkins added.

In a 62-page document, the governor’s budget recommendation never mentions the word “surplus” once.

Harkins spoke before the appropriations committees of the Michigan House and Senate, delivering Whitmer’s 2024 budget recommendations. Whitmer recommends a $79 billion budget, whose single biggest source of revenue is federal dollars. Federal money will account for 41% of Michigan’s 2024 budget, according to the executive summary.

The governor recommends spending the surplus now instead of increasing the upcoming year’s budget. For instance, Whitmer recommends spending $44 million more on community colleges in the upcoming fiscal year, and about $215 million on increasing current year community college spending.

James Hohman, director of fiscal policy at the Mackinac Center, described this as “an imprudent way to do budgeting.”

“There has been a tendency among our lawmakers to spend every dollar they have available,” Hohman told CapCon. “You shouldn’t just ratchet up spending because you’ve got money.”

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.