The 2024-25 budget proposal from Michigan Democrats would scrap a $630 million payment meant to pay down liabilities in the school pension fund even as other legislation would provide $3 billion in corporate handouts. Deleting the pension allocation from the budget would cost Michigan taxpayers an additional $1.4 billion over time due to increased interest payments.

The Michigan Public School Employees Retirement System currently has $29.9 billion in underfunded pension liabilities. Gov. Gretchen Whitmer proposed removing $670 million from the state budget meant to pay down that debt. The budget, as proposed by the House, would remove $630 million, and the Senate’s budget would do the same.

While lawmakers contemplate this move, they are also considering legislation to allocate $3 billion in taxpayer funding to corporate welfare. House Bill 5768, introduced by Rep. Jason Hoskins, D-Southfield and 25 Democratic colleagues, would allocate $250 million annually in corporate income taxes to hand-picked business beneficiaries.

“There’s something odd about using a tax to take money from all businesses to hand it out to select businesses,” said James Hohman, director of fiscal policy at the Mackinac Center for Public Policy. “Taxes are supposed to fund the government, not a favored few private companies.”

Diverting money from the pension plan would increase taxpayer obligations to beneficiaries by $1.4 billion, according to the Reason Foundation Pension Integrity Product.

The governor’s office did not respond to a request for comment.

“The Democrats’ proposal to raid the teacher pension fund is simply irresponsible,” Rep. Jaime Greene, R-Richmond, told Michigan Capitol Confidential. “Delaying the paydown of pension debt jeopardizes both teachers’ hard-earned retirements and the state’s financial stability. To protect retired educators, safeguard taxpayer resources, and support Michigan students, we must prioritize paying down this debt as quickly as possible — instead of robbing Peter to pay Paul.”

Public Act 92 of 2017 established a floor for state contributions to the retirement system, including contributions to make up for unfunded liabilities. It passed the Legislature with only Republican support and was signed into law by Republican Gov. Rick Snyder. In 2022, the voters of Michigan gave control of the governor’s office and the Legislature to Democrats.

Michigan landlords who rent five or more units could be forced to accept Section 8 Housing Choice Vouchers under a bill package in Lansing.

The Legislature is considering Senate bills 205, 206, and 207, as well as House bills 4062 and 4063. Together, the bills seek to prohibit landlords who have five or more units from discriminating against tenants or prospective tenants based on their income source, such as housing assistance, Social Security, or veterans benefits.

Reps. Jennifer Conlin, D-Ann Arbor Charter Township, and Jason Morgan, D-Ann Arbor, say these bills would improve tenants’ rights in Michigan.

“We made a step toward eliminating systemic barriers in the housing industry,” Conlin said in a news release. “Housing is a basic human right, and no one should be unhoused in Michigan. These bills are about ensuring every Michigander has equitable access to housing.”

HB 4063 and SB 207 would amend the Elliott-Larsen Civil Rights Act to include income sources as a protected category when it comes to real estate transactions.

“Housing is not a luxury — it’s a basic life necessity,” Morgan said in a statement. “Ensuring that the good families, veterans and seniors of Michigan are protected from discrimination based on their source of their income is fundamental to ensuring our hometowns are strong and inclusive.”

The Property Management Association of Michigan opposes legislation that expands the Elliott-Larsen Act to include income sources as a protected class.

“Source of income would include Section 8 Housing Choice Vouchers, which is a program that is strictly voluntary in nature,” the group told CapCon in an email. “Many property owners choose not to participate in the program because of the inefficient manner in which the program is administered, and this legislation would force landlords to accept the vouchers and the bureaucracy that goes with it. We look forward to working with members of the Legislature to come up with alternative solutions to increase access to affordable housing in Michigan.”

The nonpartisan House Fiscal Agency estimates the bill would raise costs to the Department of Civil Rights by an unknown amount. The annual salary costs for an additional complaint investigation investigator are about $160,000.

These bills would allow tenants and would-be tenants to file lawsuits against landlords who violate the proposed laws, seeking damages, injunctive relief, or both.