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Friday, October 4, 2024

Lauwers criticizes new Michigan state budget for tax hikes and raiding teacher retirement fund

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State Senator Dan Lauwers | Michigan House Republicans

State Senator Dan Lauwers | Michigan House Republicans

LANSING, Mich. — State Sen. Dan Lauwers, R-Brockway Township, issued a statement following the approval of a state budget by Lansing Democrats. The budget involves taking $670 million from the state’s teacher retirement fund and increasing personal income taxes by $700 million.

"Families across the state have been forced to tighten their belts and cut spending to deal with across-the-board cost increases, yet when it comes to the state budget, Democrats continue to swipe the state’s credit card with no regard for when it’s time to pay the bill," said Lauwers.

He criticized the current majority for depleting a $9 billion surplus within a single budget cycle. "Last year, we had a $9 billion surplus that could have funded state priorities for years to come. Instead, the current majority blew through this surplus that took a decade to save up in one single budget cycle," he added.

Lauwers expressed concern over the reliance on tax increases and using funds from teacher retirements to balance the budget. "Now, as Democratic leadership scrambles to come up with the money to be able to balance the books, the only solution that was put on the table was shamelessly going to taxpayers and asking the people to bail them out of their ill-advised, partisan overspending."

He further noted that this budget fails in several areas including per-pupil spending and road infrastructure improvements. "Because of this drastic overspending, the Democrat-sponsored budget fails to increase per-pupil spending for the first time since I was elected 12 years ago," he stated.

Lauwers also highlighted what he perceives as poor fiscal management: "The key to responsible budgeting is living within your means, and this budget simply does not do that."

In conclusion, Lauwers attributed these financial decisions to poor leadership: "The reality is we shouldn’t even be in a position where we need an income tax increase or to steal from our teachers’ retirements to fill gaps caused by overspending. This is a breakdown in both leadership and common sense."

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