LANSING, Mich. (WOWO). Michigan’s next governor is promising an ambitious affordability agenda, but Jocelyn Benson will take office facing major economic and policy challenges — and questions about how much her proposals will cost.
Benson, a Democrat who won the governor’s race, declared that “now the work begins” shortly after becoming governor-elect Wednesday. The work includes addressing rising household expenses, housing shortages, healthcare costs, energy prices, declining manufacturing employment, education concerns and questions about government transparency.
Those issues were among the leading concerns identified through Bridge Michigan’s yearlong Bridge Listens project, which collected input from more than 6,400 residents and asked them to identify and rank the state’s biggest problems according to Bridge Michigan.
Affordability is a central part of Benson’s agenda. Michigan residents are dealing with higher grocery and gasoline prices and a shortage of affordable housing. The state’s manufacturing sector remains a major part of its economy, but continues to lose jobs.
Michigan’s median household income is nearly $73,000 — about 10% below the national figure. The state also has a higher unemployment rate and an aging workforce.
Housing costs are another major concern. Dan Gilmartin, executive director and CEO of the Michigan Municipal League, said during last month’s Bridge Michigan Issues Summit that the state has talked extensively about the housing crisis without taking enough action.
“We don’t act,” Gilmartin said.
He argued that addressing the shortage requires a comprehensive approach, including the cost of building materials, financing and the availability of housing.
Benson has proposed several measures aimed at reducing household expenses. Her plans include creating a healthcare affordability board, changing how Michigan sets energy rates, offering a $5,000 tax credit for caregivers and expanding the state’s Rx Kids cash assistance program for mothers.
She has also called for holding investors accountable when they purchase properties and drive up rents for profit.
On property taxes, Benson wants to expand and update the Michigan Homestead Property Tax Credit to account for current housing costs and inflation. She says raising the program’s income eligibility limits would allow more working families, senior citizens and homeowners on fixed incomes to qualify.
But turning those proposals into law could be difficult, particularly with state finances already under pressure.
Bridge Michigan reported that Benson has not laid out how she would pay for several of the proposed programs. The $5,000 caregiver tax credit alone was estimated to cost the state $37 million when Gov. Gretchen Whitmer included it in a proposed 2024-2025 budget.
Benson may have a more cooperative path through the Legislature. Democrats won control of both legislative chambers, giving the incoming governor unified Democratic control of state government.
Some proposals, including changes to the Homestead Property Tax Credit, have also received bipartisan support in the past.
Still, Benson will have to turn campaign promises into workable legislation while confronting the state’s budget limits and competing demands. The question facing the incoming administration is not simply how to address Michigan’s problems, but which proposals can secure the funding and legislative support needed to become reality.
