State Budget Near the Finish Line
| By Unknown user - May 12, 2011 6:17:10 PM ET |
Both the state House and Senate have passed separate versions of the state budget as of last week. Differences between the House and Senate versions of the bills will be resolved in a joint committee consisting of House and Senate members.
Both chambers approved a revenue (tax) proposal that dramatically changes Michigan’s tax structure, and preserves the EITC but at a reduced rate. The Governor is expected to sign the legislation into law.
Although the final votes involved protracted debate and negotiation, the content of the appropriations bills remained largely unchanged from the Committee proposals, which I outlined in my last budget update. However, there are a coupl recent changes that would have an impact on UWSEM's Agenda for Change, and may affect the work of UWSEM and partner agencies. Here are the highlights:
Want to check out the bills yourself? Links to the budget bills are collected here, and the revenue bill (which contains the EITC, Homestead Tax Credit, and Child Tax Credit) can be found here.
Both chambers approved a revenue (tax) proposal that dramatically changes Michigan’s tax structure, and preserves the EITC but at a reduced rate. The Governor is expected to sign the legislation into law.
Although the final votes involved protracted debate and negotiation, the content of the appropriations bills remained largely unchanged from the Committee proposals, which I outlined in my last budget update. However, there are a coupl recent changes that would have an impact on UWSEM's Agenda for Change, and may affect the work of UWSEM and partner agencies. Here are the highlights:
- Michigan EITC – The legislation retains the EITC, although it greatly diminishes the value of the credit from 20% of the federal credit to 6%. Under the legislation, an average family would receive a credit of $140.
- The changes proposed by the House to the Homestead Property Tax Credit and Child Tax Credit, intended as a compromise for the loss of the EITC, are not adopted. The final legislation significantly reduces the Homestead Property Tax Credit and eliminates that Child Tax Credit.
- Senior Programs – Final version of the House budget proposal greatly diminishes funding for community services, and senior meals, and cuts senior volunteer programs. Although these items were restored during a committee meeting, they were removed again during the final vote. The Governor also proposes decreased funding, although at a less severe level, and the Senate supports some decreases for senior volunteer programs but maintains funding for community services and senior meals.
Want to check out the bills yourself? Links to the budget bills are collected here, and the revenue bill (which contains the EITC, Homestead Tax Credit, and Child Tax Credit) can be found here.
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