A2Y Chamber Statement of Support for TheRide’s August 2022 Millage Proposal

TLDR: The Ann Arbor/Ypsilanti Regional Chamber is formally supporting the August 2nd Ann Arbor Area Transportation Authority (TheRide) millage proposal. Please take a look at the statement of support for the proposal which is on the ballot in the cities of Ann Arbor and Ypsilanti and Ypsilanti Township. Andy Labarre

June 23rd, 2022 – The Ann Arbor Area Transportation Authority (TheRide), has proposed a millage to maintain and improve its transportation services to advance the community’s needs for social, environmental and economic sustainability. If approved by voters, TheRide will accomplish these purposes with funds raised by an August ballot measure for 2.38 mills, (replacing the existing 0.7 mill levy for a net increase of 1.68 mills). This is a large ask for voters and taxpayers at an uncertain time, but it will provide vital services that are greatly needed, and do so with an entity that has earned the trust of our community. The Ann Arbor/Ypsilanti Regional Chamber supports TheRide’s proposal for many reasons.

These funds will allow TheRide to continue providing its essential transit services and implement needed service enhancements. These include establishing an Ann Arbor-Ypsilanti Express Route to decrease travel time between the communities by 30% with limited-stops; Expanded overnight and holiday services, and expansion of NightRide to all of City of Ypsilanti, all of Ypsilanti Twp. north of Textile Road; Increased service frequency with more weekend buses to increase all 60-minute service to every 30-minutes; In-person customer service agents and office improvements at the Ypsilanti Transit Center, allowing ticket sales and in-person customer service; longer hours of service on both weekday and weekend evenings and earlier Saturday morning services; and a Capital Fund for future projects such as terminals, Bus Rapid Transit, zero-emission buses, garage, etc. These services are more than just desired amenities.

The proposed enhancements will benefit our local economy and community by better activating more parts of our workforce. They will also help our employers attract and retain talent by offering alternative transit options which appeal to a wide array of individuals, from young professionals to active retirees. These services are a particular necessity if we want to continue building a strong local tech sector, and they will help our community make important progress on equity measures related to racial and geographic disparities that continue to negatively impact Washtenaw County. Residents in lower opportunity areas will have access to the same services as all other residents. TheRide is an entity with a successful 50-plus year track record, a strong and engaged board of directors, and a staff that makes community engagement and response a key organizational value. Further, approval of the proposed millage will increase the amount of State and Federal funding that can be captured locally for transit, including operating funds and grants for capital projects. 

The Chamber acknowledges that this is a large funding request, but also acknowledges the inherent limitations imposed by the State for how essential services like transit can be paid for. Millage increases tend to be small in isolation but large in aggregate, and increase costs for community members. This impacts issues like housing affordability and general cost of living in the area. This is one part of broader challenges faced by Michigan communities. Since implementation of the 1978 “Headlee” amendment, Michigan limits the amount of state taxes and fees that can be imposed on taxpayers by the Legislature. This limit is to 9.49% of total personal income in Michigan, but as a policy choice, the Michigan Legislature does not authorize collecting up to this limit. The gap between the amount of tax revenue the state could collect and actually does collect is now almost $12 billion annually, with an estimated aggregate amount of $141B between FY 2001 to FY 2021. As a result, many communities now seek to make up parts of that gap on a millage-by-millage basis rather than as a part of a comprehensive budget.

Acknowledging that TheRide’s ask is large, the Chamber believes that the value and benefits it will provide are larger. This millage will provide services our residents and employers need, and it will position our local economy to best navigate changes and uncertainties ahead in a way that allows for greater workforce participation, cleaner and more sustainable transportation options, and with an enhanced quality of life that will attract and retain individuals that will keep our community engaged and vibrant. TheRide’s millage is worth supporting.

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Ypsilanti Community Beautification Day

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The Ypsilanti Community Beautification day planning committee is seeking nominations for the May 16, 2020 cleanup day. The goal of the 2020 Cleanup day is to increase inclusion across the community and develop strong partnerships with community stakeholders, municipalities, businesses and neighborhood groups throughout the community. All nominations are due by March 19th. All nominations will be reviewed by the committee and notified by April 1st. Please complete the site nomination form and give as much detail as possible.
 
Nominate a location HERE
Learn more about partnership levels HERE

Member Spotlight: St. Joseph Mercy Ann Arbor

Name: Bill Manns

Title: President, St. Joseph Mercy Ann Arbor and St. Joseph Mercy Livingston

How long has your company been a member of the Ann Arbor/Ypsilanti Regional Chamber?

We have been a member of the Chamber since December 1, 1968.

What is a typical day like for you?

A typical day for me begins at 6:30 a.m. with a series of morning meetings with physicians, my direct reports and health system leadership. These meetings are spent discussing patient care, staffing needs and growth strategies for various service lines, as well as St. Joe’s position within the health care market. After lunch and some quiet reflection, my afternoon is filled with more meetings and time devoted to rounding on hospital units. Regular rounding offers me an opportunity to meet with and hear from our patients, their families and frontline staff. By devoting time to rounding and listening, I can better understand the experience of our patients and work with nurse managers and other leaders to offer guidance, support and additional resources to ensure we deliver the very best care possible.

What do you enjoy most about the A2Y Chamber?

The Chamber brings together a group of like-minded people looking to bring jobs and economic growth to our region. As a major health care provider and employer in Ann Arbor and Ypsilanti, it’s really important that St. Joe’s be engaged. We want to ensure that we are doing everything we can to help create a thriving economy and a vibrant community. We’re proud to be an A2Y Chamber Legacy Leader as the Chamber embarks on its next 100 years of supporting the local business community.

What’s your favorite tip for someone in your industry?

There are two pieces of advice that come to mind. First, God gave us one mouth and two ears for a reason. Regardless of your job role or how high up in an organization you might be, you should listen twice as much as you speak. People often want to give their thoughts or opinion on an issue without fully understanding it first. Second, a career in health care administration is a calling, not a job. This is a complex and evolving industry in which we need to balance our commitments and responsibilities to our patients, community, and staff, with our commitment to the fiscal wellbeing of the hospital and health system.

What is a surprising fact about your business?

Three things. One, St. Joe’s sits on 340 acres which makes us one of — if not the largest — single hospital campus in the country by acreage. Second, our industry is constantly evolving. Currently, the health care industry is coming to terms with the hospital being a “provider without walls.” We are now meeting our patients where they are, whether that is in community outpatient centers or their homes using telemedicine. Third, our health system is an innovator when it comes to the hiring process. We are currently implementing evidence-based selection at St. Joe’s that removes unconscious bias from the hiring process and helps hiring managers better identify the diverse pipeline of health care talent available within our community. This is a major initiative that we expect will reduce turnover, save money, and increase diversity among staff. I recently gave a presentation on this initiative to the A2Y Chamber Workforce Pipeline Summit in March.

If you would like to be featured in our Member Spotlight, contact us.

Member Spotlight: A.F. Smith Electric, Inc.

Name: Brian Koepp

Title: President

How long has your company been a member of the Ann Arbor/Ypsilanti Regional Chamber?

Since 1991!

What is a typical day like for you?

A typical day for me is full of surprises. I may arrive at work with a specific list of tasks to complete during the day, however, soon after arriving, any number of things can jump in the way and my day is completely re-directed. We are a service-oriented business, so if one of our existing customers, or even a new customer, have an urgent need, we/I take care of them.

That being said, my days are filled with going through the mail, reading/responding to email, executing contracts, going over proposals and working with my team of Estimators/Project Managers to be sure we are quoting projects as accurately as possible and projects are receiving the attention they need, and many other things.

What do you enjoy most about the A2Y Chamber?

Bringing business together for the good of our business and personal communities

What’s your favorite tip for someone in your industry?

The high cost of safety. All aspects of construction have a certain level of danger, however, being an electrical contractor adds another level to deal with and we take this very seriously.

What is a surprising fact about your business?

The danger that it is!

If you would like to be featured in our Member Spotlight, contact us.

Member Spotlight: CMIT Solutions

Name: John Holbel

Title: President, CMIT Solutions

How long has your company been a member of the Ann Arbor/Ypsilanti Regional Chamber?

Since May 2018

What is a typical day like for you?

5:30 am – Have breakfast, catch up on news of the day & recent cyber attacks and breaches, and check for important emails.

6:30 am – Layout the work day, review client tickets, and the day’s appointments.

7:30 am – Align priorities for the day, review issues list, facilitate team scrum, and action plans for the day.

Daylight hours (8 am to 6 pm) are spent with client’s, appointments, implementations, networking, and business development. Dinner time with family fluctuates depending on training events, industry conferences, and networking events. Then I wrap up the day by checking email and reading, which is a passion of mine.

What do you enjoy most about the A2Y Chamber?

The A2Y chamber community is very active. Members are willing to help each other and collaborate. There is a broad range of knowledge, industry, and activity across the Washtenaw community. The A2Y Chamber is very proactive and presenting opportunities for business to connect with one another and help the community grow.

What’s your favorite tip for someone in your industry?

Cyber Crime is a business issue and not a technical issue. Business Assets can be protected.

What is a surprising fact about your business?

There is a severe shortage of cybersecurity skill-sets and there is no evidence of improvement over the last 3 years. There will be a 1.8M gap in information security jobs by 2022 and the average cybersecurity professional is two years behind in knowledge from what current cybercriminals are currently doing.

If you would like to be featured in our Member Spotlight, contact us.

Member Spotlight: NewFoundry

Name: Richard Chang

Title: CEO, NewFoundry

How long has your company been a member of the Ann Arbor/Ypsilanti Regional Chamber?

Four years

What is a typical day like for you?

I’ve actually been out of NewFoundry’s day-to-day operations for about 2 years. My other two partners, our wonderful leadership team, and our staff keep NewFoundry running and delivering the outcomes that we hope exceed our clients’ expectations.

My days are primarily spent on business development initiatives for NewFoundry and also trying to give back to the community which we have been fortunate to be a part of. The latter is typically achieved by being a part of various non-profit boards (such as the A2Y Chamber of which I’m the Chair for 2019, United Way, Michigan Works Southeast, and Intermitten), volunteering via other organization committees, and also doing speaking engagements. My favorite speaking engagements have been when I get to be in front of students at Ypsilanti and Ann Arbor school districts.

What do you enjoy most about the A2Y Chamber?

The A2Y Chamber has a lot going for it that separates it from other Chambers: (1) the diversity of companies that are members, (2) the diversity of the members in our board of directors, (3) the great content programming and diversity of participants at our events, (4) our Public Policy committee is one-of-a-kind and absolutely amazing, and (5) the A2Y Chamber staff is wonderful!

What’s your favorite tip for someone in your industry?

Diversity is the word by which we all should live and also run our businesses: diversity of team members, diversity of clients, diversity of income sources, diversity of thought and approaches to solutions… the list goes on and on! Nothing but good can come about when living by that one word.

What is a surprising fact about your business?

Visitors to our studio are always surprised when we tell them that our building once housed a medical practice. Our open teamwork area was once segmented into individual physician’s exam rooms and our large conference room was the waiting room. We completely opened up the space when we bought it, but you can still see the niche where an aquarium once stood; we now use it for our trophy case!

If you would like to be featured in our Member Spotlight, contact us.

Analysis of the Business Implications of State Cannabis Law

Background

On Nov. 6, 2018, Michigan voters approved a ballot proposal to decriminalize recreational marijuana. The Michigan Regulation and Taxation of Marihuana Act (MRTMA) took effect Dec. 6, 2018, and permits adults over 21 to possess and consume legally acquired cannabis. It also allows licensed entities to cultivate, process and sell cannabis commercially.

Marijuana remains illegal under federal law. The U.S. Drug Enforcement Administration (DEA) classifies cannabis as a Schedule I drug, which means that it has no accepted medical use and a high potential for abuse. Certain derivative products are classified as Schedule V, which means they have the lowest potential for abuse.

The A2Y Regional Chamber takes no position on state and federal cannabis law, but it recognizes the business community’s exposure to legal changes and seeks to inform members on the issue.

Implications of the Law

The conflicting federal standards, coupled with the vague language of the MRTMA, have produced legal ambiguities for consumers, cannabis industry members and businesses that engage with them. Here are some answers and questions about how the A2Y business community is affected by cannabis law:

Human Resource Policy

According to the MRTMA, employers are not required to tolerate employee consumption perceived to affect work performance. Businesses can:

  • Institute and enforce workplace drug policies that prohibit employees from working under the influence or using marijuana on company property;
  • Conduct pre-employment drug tests, random employee drug tests, or reasonable suspicion drug tests according to company policies; and
  • Discipline, terminate or refuse to hire employees for testing positive in violation of workplace drug policies.

The Michigan Court of Appeals ruled that employers cannot withhold unemployment benefits from employees who hold medical marijuana cards and test positive. Non-medical consumers may be disqualified from benefit reception, though.

Neither the MRTMA nor legal precedent clarifies whether non-at-will employees, such as union workers, deserve special consideration. The terms of the employment contract may require distinct procedures or permit employees to claim disability protection under the Americans With Disabilities Act.

While the State empowers companies to set internal drug policies, federal contractors and grant recipients remain bound to stricter standards. The Drug-Free Workplace Act (DFWA) requires some contractors and all grantees of federal agencies to operate drug-free work facilities or risk indefinite termination of funds and contracts.

Public Education Operations

The MRTMA prohibits marijuana consumption on the grounds of primary and secondary schools, but it does not rule on institutions of higher education. Federal law is more definitive. As a DEA Schedule I drug, cannabis falls under the purview of the Drug-Free Schools and Communities Act (DFSCA). The DFSCA obligates federally-funded institutions of higher education to develop programs preventing possession, use or distribution of marijuana on school grounds. Violations jeopardize financial aid.

Lending and Investment

The federal government has not explicitly prohibited marijuana-related banking activity. However, according to the American Bankers Association, financial institutions that lend to, bank the money of, or process transactions for cannabis-related operations could risk charges of money laundering. Servicing non-cannabis clients in the supply chain — including utilities companies — could create similar risk. State Attorneys General have requested legal clarity on the issue.

Michigan legislators passed a resolution urging Congress to approve the Secure and Fair Enforcement Banking Act (H.R. 1595) to protect banks from sanctions. The bill remains in the U.S. House Subcommittee on Crime, Terrorism and Homeland Security but is expected to be taken to a chamber vote in the coming weeks. A Senate bill (S. 1120) that seeks protections for both banks and insurance companies remains in the Senate Committee on Banking, Housing and Urban Affairs. The Congressional efforts have the support of U.S. Treasury Secretary Steven Mnuchin.

Real Estate Management

Landlords can restrict or ban tenants from smoking, growing, processing, distributing or displaying cannabis on their property. However, they cannot prevent tenants from possessing cannabis or consuming it through smoke-free methods, such as through edibles or topical applications. Whether landlords can prohibit vaping is unclear. The right will depend on whether the State defines vaping as “smoking” or a distinct form of consumption.

Operations of Public Places

The MRTMA prohibits consumption in public places but permits use in areas that are inaccessible to people under 21 and that municipalities formally designate as consumption areas. Marijuana use is not restricted by Michigan’s Smoke-Free Air Law, which prohibits tobacco smoking in businesses and licensed food establishments. It is similarly unaddressed by the Washtenaw County Clean Indoor Air Regulation, which bans nicotine vaping in public spaces or places of employment. Municipalities will determine whether social establishments can allow consumption.

Policy Analysis

Industry Impacts  —  The Michigan Petroleum Association and Michigan Association of Convenience Stores say the average gas station will pay an extra $1,125 per day in taxes. This figure represents the statutory tax incidence, not the economic incidence. Gas is a relatively inelastic good, which means consumers would bear more of the tax burden than gas stations would. The associations also expect consumers to offset higher gas expenses by cutting spending in station convenience stores. Station owners record higher margins from commodities than fuel, so lost store sales could hurt operations. Consumers near state borders are predicted to escape the tax altogether by buying gas in Ohio and Indiana. Washtenaw County commuters may similarly pursue substitutes; they can avoid the fuel tax by biking or electric scootering. These changes in consumer behavior would hurt local gas stations.

Economic Impacts  —  Road improvements are expected to increase travel efficiency and reduce vehicle-repair expenditures across Michigan. These factors free up consumer time and resources for discretionary spending. The economic benefits could be offset by the fuel tax increasing business transportation and distribution costs. Rising input costs would yield higher prices for consumer goods and services, which could hamper the broader consumer spending and decrease Michigan’s national price competitiveness.

Environmental Impacts  —  The tax could help reduce Michigan’s carbon emissions by inspiring drivers to cut consumption or purchase more fuel-efficient vehicles. However, the University of Michigan Energy Institute expects rising registration fees to disincentivize purchases of cleaner vehicles. This would undermine carbon-reduction efforts. Policy proponents argue the $225 fee increase is minimal.

Equity Impacts  —  The policy mitigates negative effects on low-income motorists by doubling the Earned Income Tax Credit from 6% to 12%. In the near term, though, high-income earners may escape fair contributions to the road-repair fund and shift the cost burden onto low-income earners. As EV prices remain prohibitively high, EV ownership may be the exclusive privilege of high-income drivers. After about 13,500 miles, ICE drivers would pay higher annual taxes per mile than their EV counterparts would. Low-income motorists would effectively subsidize the road use of high-income drivers. Some experts propose an electricity use tax as an equitable alternative to charging static EV registration fees.

Industry Development Timeline

Legal experts await clarity on insurance and banking obligations; vaping restrictions; and consumption in age-restricted social establishments. They expect some answers as soon as June, when the Michigan Department of Licensing and Regulatory Affairs (LARA) plans to issue draft regulations. Formal state regulation will appear no later than Dec. 6, 2019. Conflicts between state and federal law may clear with the passage of the bipartisan Strengthening the Tenth Amendment Through Entrusting States (STATES) Act. The federal law would exempt state-authorized activity from the Controlled Substances Act. It has been endorsed by U.S. Attorney General William Barr and remains in the Senate Judiciary Committee and the House Subcommittee on Crime, Terrorism and Homeland Security.

The A2Y Regional Chamber, with business networks across the state, is closely watching cannabis policy developments and will provide updates as information becomes available.

Member Spotlight: Amy Cell Talent

Name: Amy Cell

Title: Chief Matchmaker, Amy Cell Talent

How long has your company been a member of the Ann Arbor/Ypsilanti Regional Chamber?

Two years

What is a typical day like for you?

Ha! Every day is different. I am usually working with a few different clients to help them with recruiting and HR issues. I am also networking with “opportunity seekers” as we provide coaching and workshops to help people find their passion, too.

What do you enjoy most about the A2Y Chamber?

I love the programs and learning about current events in the local business community.

What’s your favorite tip for someone in your industry?

Put together a long term talent pipeline program and grow your talent – it is much cheaper and more effective than needing to rely on recruiting during this type of “war for talent” market. Invest in internships, co-ops, apprenticeships and providing opportunities for high school students.

What is a surprising fact about your business?

There are actually a lot of amazing people available and looking for new opportunities.

If you would like to be featured in our Member Spotlight, contact us.

Analysis of Gov. Whitmer’s Gas Tax Proposal

Executive Summary

Gov. Gretchen Whitmer proposed a fuel tax to raise funds for statewide road repair. The tax exclusively targets vehicles with internal combustion engines (ICE) but also effectively raises the ownership fees for electric vehicles (EVs). Experts debate the policy’s effect on taxpayer equity, environmental sustainability, and economic growth. The State Legislature appears unlikely to pass the current draft.

Background

Poor road conditions cost Michigan motorists an average of $686 per year in vehicle repairs. Insurance fees, lost productivity, and other factors raise the cost to $1,980. Studies point to underinvestment in infrastructure. The State ranks No. 42 in road expenditures per vehicle miles traveled. It funds road maintenance through the Michigan Transportation Fund (MTF), which is financed by fuel taxes and vehicle registration fees. The revenue source has seen little growth over the years. Registration fees have risen proportionately with vehicle values, but until 2015, fuel taxes had never been adjusted for inflation and had not increased since 1997. The State had issued bonds to offset funding deficiencies; the Michigan Department of Transportation (MDOT) is now paying down $1.2 billion in outstanding debt.

In 2015, Michigan approved a $1.2 billion-per-year funding package for road and bridge repair. A five-year phase-in began in 2017. The plan included a 7.3-cent increase in gas taxes to 26.3 cents, an 11.3-cent increase in diesel fuel taxes to 26.3 cents, a $20 hike in registration fees, and a $600 million allocation from the general fund. It also indexed the fuel tax for inflation; effective in 2022, the tax will rise annually by either 5% or the inflation rate, whichever is lower. MDOT said the 2015 plan has slowed road deterioration but cannot solve the state’s infrastructure problems. Studies suggest the roads need another $2 billion to $2.6 billion annually.

Fuel Tax Proposal

To fill the funding gap, Gov. Whitmer proposed raising fuel taxes from 26.3 cents to 71.3 cents. The increase would be phased in with 15-cent hikes in October 2019, April 2020, and October 2020. Inflationary indexing would begin as planned in 2022. Whitmer expects $2.5 billion in gross annual revenue from the new tax beginning in 2021. The sum would be apportioned to a new Fixing Michigan Roads Fund ($1.9 billion) and restoration of the general fund ($600 million). The proposal eliminates the general-fund earmark for roads and restores $500 million siphoned from the School Aid Fund.

Those who oppose the plan point to its impact on Michigan’s at-pump taxes, which would become the highest in the nation, according to the Tax Foundation. Michigan fuel taxes are compounded by a 6% sales tax. The additional 45-cent-per-gallon excise tax would raise the average at-pump tax from 44.13 to 89.13 cents per gallon. For a 15-gallon tank, the total tax increase would cost an extra $7.16 per fill-up.

Whitmer’s plan would also indirectly raise registration fees for battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs) to the highest rates in the country. The Michigan Vehicle Code ties each one-cent increase in fuel taxes to a $5 increase in BEV fees and $2.50 increase in HEV fees. For a 45-cent fuel raise, EV owners would pay an extra $102.50 to $225. The average ICE vehicle that gets 27 miles to the gallon could travel 13,500 miles before breaking the BEV rate. Since the average U.S. driver travels 13,476 miles annually, the proposed tax appears to draw comparable contributions from the average BEV and ICE owners. Altogether, EV fee increases are expected to generate $3 million in new revenue.

Five years into Whitmer’s 10-year road plan, a commission would be appointed to examine the market share of fuel-efficient and electric vehicles. The commission would explore fuel-tax alternatives to capture an evolving tax base.

Policy Analysis

Industry Impacts  —  The Michigan Petroleum Association and Michigan Association of Convenience Stores say the average gas station will pay an extra $1,125 per day in taxes. This figure represents the statutory tax incidence, not the economic incidence. Gas is a relatively inelastic good, which means consumers would bear more of the tax burden than gas stations would. The associations also expect consumers to offset higher gas expenses by cutting spending in station convenience stores. Station owners record higher margins from commodities than fuel, so lost store sales could hurt operations. Consumers near state borders are predicted to escape the tax altogether by buying gas in Ohio and Indiana. Washtenaw County commuters may similarly pursue substitutes; they can avoid the fuel tax by biking or electric scootering. These changes in consumer behavior would hurt local gas stations.

Economic Impacts  —  Road improvements are expected to increase travel efficiency and reduce vehicle-repair expenditures across Michigan. These factors free up consumer time and resources for discretionary spending. The economic benefits could be offset by the fuel tax increasing business transportation and distribution costs. Rising input costs would yield higher prices for consumer goods and services, which could hamper the broader consumer spending and decrease Michigan’s national price competitiveness.

Environmental Impacts  —  The tax could help reduce Michigan’s carbon emissions by inspiring drivers to cut consumption or purchase more fuel-efficient vehicles. However, the University of Michigan Energy Institute expects rising registration fees to disincentivize purchases of cleaner vehicles. This would undermine carbon-reduction efforts. Policy proponents argue the $225 fee increase is minimal.

Equity Impacts  —  The policy mitigates negative effects on low-income motorists by doubling the Earned Income Tax Credit from 6% to 12%. In the near term, though, high-income earners may escape fair contributions to the road-repair fund and shift the cost burden onto low-income earners. As EV prices remain prohibitively high, EV ownership may be the exclusive privilege of high-income drivers. After about 13,500 miles, ICE drivers would pay higher annual taxes per mile than their EV counterparts would. Low-income motorists would effectively subsidize the road use of high-income drivers. Some experts propose an electricity use tax as an equitable alternative to charging static EV registration fees.

Political Analysis

The Michigan House Speaker and Senate Majority Leader (both Republicans) acknowledge the need for road repair but oppose the fuel tax. They propose to fund roads with revenue from the existing sales tax on fuel. That revenue currently supports schools and local governments. Whitmer is willing to negotiate on other budget points, including a GOP-opposed business tax, to advance her fuel tax proposal as is.