"The right to criticize government is also an obligation to know what you are talking about."

-Lent Upson, first director of Citizens Research Council

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February 7. 2025

As the Michigan Legislature convened for its new 2025-26 session – one that will now involve split leadership between the Republican-controlled House and Democratic-controlled Senate – one of the earliest votes addressed proposed reforms to limit what had been a growing trend within the budget process: legislatively-directed budget earmarks, or what some might call “pork”.

Earmarking is not new.  It has been a common element of state budgets for decades, but the growth in earmarking took an already bad budgeting practice and made it worse.

What we found after a deep dive into Fiscal Year 2024 earmarked appropriations was even more troublesome; almost two-thirds of the total were what we called “eleventh hour” earmarks – meaning they were included in the final budget without ever having been previously vetted during budget hearings or included in any committee-approved budget bills along the way. These earmarks are particularly troublesome as a budget practice since it virtually assures that little or no evaluation or vetting of these funding allocations can take place, and that the earmarks remain completely shielded from public scrutiny until the budget is passed.

In a Nutshell:

 -- Legislatively-directed earmarks (a.k.a. “pork) typically circumvent the open and deliberative budget process that is designed to better ensure that state revenue resources are allocated to the public programs and services of highest priority.

 -- However, a 2023 Research Council analysis demonstrated that roughly two-thirds of all General Fund earmarks in the Fiscal Year 2024 budget were added in the final budget bill, having received no previous daylight until the final budget vote.

 -- A House Resolution adopted last week represents a major step forward toward improved oversight and transparency, and Governor has signaled her endorsement of similar standards. However, a Research Council review would make one significant recommendation: put these protocols in state statute.

More Analysis from our Blogs:

• Consequences of State-Directed K-12 Funding: Loss of Local Decision-Making
• Getting the "Dys" out of Michigan's Dysfunctional Legislature
• Now is a Good Time for Lawmakers to Tackle Local Government Finance Reform
• Popular, But Expensive, Weight-Loss Drugs Create Major Questions for Policymakers

Join Us After Work at Bas Bleu in Detroit, Feb. 19

DUE TO THE WEATHER FORECAST, THE WINE/CHEESE EVENT SCHEDULED FOR TOMORROW, FEBRUARY 8, IS CANCELLED. WATCH HERE FOR A NEW DATE! 

Please join us Wednesday, February 19, from 6-7:30 pm, at Bas Bleu in Detroit, with complimentary charcuterie and a cash bar, hosted by Research Council Director Aya Waller-Bey. Registration is required. Learn more and RSVP here.

The Research Council's Detroit-based February events are designed to let Detroiters know who the Citizens Research Council is, more about our Detroit Bureau, what we do, and how everyone can use our public policy research, analyses, and expertise to help make Detroit and Michigan better. We will give a short overview of Detroit-focused research and we hope to hear the concerns and questions as we move into new year with a divided Legislature, a Detroit mayor's race and a host of challenges and opportunities. 

Registrations reached capacity and have closed for the Skillman Foundation event. Thank you for your interest!

Click here for information on all events here: https://crcmich.org/event.

Join us Tuesday, February 18, at 11 am as MIRS News and Research Council budget experts discuss Governor Whitmer's spending and tax proposals for FY26 and what it means for anticipated discussions regarding road funding, K-12 education, local governments and economic development. While revised January estimates improved the state's revenue picture, overall budget growth was much lower than in prior years, as one-time state and federal revenues tied to the COVID pandemic disappear. We would love to have you join us and take your questions.

Bob Schneider, senior research associate for state affairs at the Research Council, gave a presentation on Michigan's revenue and budget outlook for FY2026 at a February 4 forum on "The Michigan Economy", where he was a panelist. The event was part of an ongoing series of public forums hosted by MSU's Institute for Public Policy and Social Research (IPPSR). Click here to view. 

On Thursday, February 6, Eric Lupher, president of the Citizens Research Council, gave a high level presentation of three research papers commissioned by the Detroit City Council before the Planning and Economic Development Standing Committee of the Council. The papers assessed and analyzed the City of Detroit's economic condition, economic development policies, opportunities for reform and alternative approaches to reliance on tax incentives. The presentation can be found here (p. 5). Click below to access the research and analyses:

 -- Detroit's Economic Condition and Economic Development Efforts

 -- Detroit's DDA and Funding Government Operations Again

 -- Detroit's Use of Tax Abatements; Strategies to Improve Competitiveness

Whitmer proposes tax on vapes, nicotine products to curb usage, generate more revenue, WWJ Detroit (February 6)

CRC: State Budget Surplus Comes From Expiring Corporate Tax Earmarks, MIRS News (February 4)

House speaker wants to pull back business tax credits to pay for roads. Experts say it won’t be so simple, Crain’s Detroit (January 23)

Fiscal Experts: 2025 is a great time to give local governments some options on funding, MAC (January 23)

Bigger ideas needed to really fix Michigan’s damn roads, Bridge Michigan (January 21)

While Both Sides Blather On About “Fixing The Damn Roads” – Michigan Road Funding Ranks 30th Nationally, Thumbwind (January 21)

Michigan making record interest income on mountain of cash, Detroit News (January 20)

How Michigan is trying to recapture its innovation mojo, Michigan Advance (January 11)

Gretchen Whitmer’s Chance for Wide-Ranging Legacy Derailed by Botched Legislative Session, ProPublica (January 10). Also appeared - Alternet (January 12)

Senate Fiscal Agency: Michigan’s revenue forecast may be stronger than expected, WKAR Public Radio (January 7). Also appeared - WCMU Public Media (January 7)