House GOP announce plans to bring back Right to Work, Snyder-era economic policies

State Rep. Matthew Bierlein, April 17, 2024 | House GOP photo

A day after state House Democrats won two special elections to regain a majority, Republicans on Wednesday announced a plan “to grow local economies” that included rolling back regulations and reversing some key Democratic policies.

“The state is lacking a coordinated economic growth plan,” House Minority Leader Matt Hall (R-Richland Twp.) said. “Unfortunately, after five years of [Gov. Gretchen] Whitmer, I don’t think that we are going to get that from her.” 

The 30-minute news conference was held in the state Capitol and included Hall and several of his GOP colleagues. The Republican caucus, according to Hall, looks to introduce several bills as early as next week, although they are unlikely to gain traction in the Democratic-led chamber. 

In 2022, Democrats won control of the state House and Senate simultaneously for the first time since 1984. The state’s executive branch offices are also headed by Democrats. In special elections held on Tuesday, state House Democratic candidates Peter Herzberg and Mai Xiong scored victories in two Southeast Michigan districts, which means Democrats will soon have a 56-54 majority again.

All 110 seats in the Michigan House are on the ballot in November, with Democrats and Republicans locked in a battle for control of the chamber for the last two years of Whitmer’s term.

Last year, Whitmer signed legislation to ax the 2012 Right to Work law signed by her Republican predecessor, former Gov. Rick Snyder. The controversial law allowed workers to get all union benefits without having to pay dues.  

Michigan’s economy has been performing well, as has the national economy, with University of Michigan economists predicting last fall that the economy will continue to grow and won’t face recession. At the January Consensus Revenue Estimating Conference, officials said that state tax revenue is expected to dip in the next few years after Democrats passed tax cut measures including a boost to the Earned Income Tax Credit (EITC) and elimination of the retirement tax. Michigan’s unemployment rate was 3.9% in February, the same as the national rate for March.

Bringing back Right to Work is one of the GOP’s priorities. State Rep. Matthew Bierlein (R-Vassar) is set to introduce legislation, saying that “repealing it undermined the principles of individual liberty and choice in the workplace.”

Hall added the repeal put “closed for business sign” on Michigan. 

“I’ve sat in meetings where I’ve tried to help bring companies to Michigan and that’s one of the things that they say … if you’re not a Right to Work state, we’re not considering you,” Hall said. 

House Republicans also want to lower the state income tax rate from 4.25% to 4.05%. The  rate returned to 4.25% in 2024 from 4.05% last year because of a court order in a dispute over whether the 2023 rate was a permanent or temporary cut.

A measure passed years ago by a Republican-led Legislature allowed for the default income tax rate of 4.25% to be reduced whenever state revenues exceeded a certain cap. For the current tax year, that income tax rate was set at 4.05%, though state Treasurer Rachael Eubanks made clear it was to be for one year only, a decision backed by an opinion from Democratic Attorney General Dana Nessel’s office.

The GOP also wants to review and cut regulations, essentially restoring some measures from the Snyder era. 

Last year, Whitmer enacted legislation reversing a Snyder administration rule that doesn’t allow state agencies to impose regulations stricter than federal regulations. Whitmer also signed bills eliminating the Environmental Rules Review Committees that critics called “polluter panels” that slowed down environmental rules changes. House Republicans want to bring the Snyder policies back.

“State officials don’t seem to care how many jobs they kill or businesses they close with their burdensome regulations,” said Rep. Cam Cavitt (R-Cheboygan), who said he plans to introduce legislation reestablishing the review committees. “We all care about the environment and natural resource advisory boards are essential to sorting out which rules are necessary to protect it and which cause way more harm than good to our community.”

State Rep. David Martin at the House GOP press conference, April 17, 2024 | House GOP photo

Republicans also said they will propose ways to better measure the effectiveness of workforce development programs and provide more transparency and oversight of economic development plans, including the Strategic Outreach and Attraction Reserve (SOAR).

Rep. David Martin (R-Davison) said small businesses need more help from the state. 

“There’s been too many big corporations, lots of help for them, laying off people and meanwhile Main Street has been forgotten,” said Martin.  

“I will always stand up for the small, family-owned businesses that keep our communities thriving,” Martin added. “I hear and understand the problems they are facing, and I’m committed to making sure their voices are heard. The plan we announced today will put more opportunities into the hands of local entrepreneurs and make a real difference for small businesses across Michigan.”

When asked by reporters on Wednesday if it would be possible to see movement on SOAR fund legislation that passed the Senate in Late March in addition to work on the budget, House Speaker Joe Tate (D-Detroit) said there would be more discussions moving forward.

“What we’ve seen for the past 16 months, economic development has been something that a lot of our members, including myself, have been interested in.

“We worked on a bipartisan R&D [research and development] tax credit; we worked on Renaissance Zone reform,” Tate said. “We were able to do a lot of investment, make a lot of investments in our workforce and affordable housing, which is a part of economic development. So we’ll take a look at it and see.”

State Rep. Nancy De Boer (R-Holland) also called for a stronger review of job placement programs. 

“That step will help give us accountability and ensure that taxpayer dollars are spent on programs that are proven useful,” said De Boer. 

Michigan Democratic Party Chair Lavora Barnes blasted House Republicans in a statement.

“MAGA [Make America Great Again] Matt Hall and his caucus have abandoned our middle class at every turn, from voting against $1 billion in tax cuts to actively working against Democratic efforts to build a Michigan where everyone has the opportunity to thrive,” Barnes said. “Voters won’t be fooled by this stunt. While Democrats are fighting for workers and lowering unemployment, Republicans will continue to sell Michiganders down the river.”

Former House Speaker Lee Chatfield at the Mackinac Policy Conference, May 30, 2019 | Andrew Roth

Hall asked about Chatfield charges

On Tuesday, Nessel announced she was charging former House Speaker Lee Chatfield (R-Levering) with running a criminal enterprise. 

He faces 13 counts, including charges of conducting a criminal enterprise, embezzlement and a violation of the Charitable Trust Act. There are two counts, embezzlement from a nonprofit organization and conspiracy to commit embezzlement from a nonprofit organization, against his wife, Stephanie Chatfield.

“Our investigation has uncovered evidence that Lee Chatfield used various different schemes to embezzle, steal and convert both private and public monies to fund a lavish lifestyle that a state salary could not possibly afford,” Nessel said.

That comes after Nessel last year charged two former Chatfield aides with several felonies, including embezzlement, criminal enterprise and filing a false tax return. Robert and Anne Minard, have pleaded not guilty. 

Hall was asked at the press conference on Wednesday about the charges against the Chatfields.

“I would just say that, you know, these 501(c)(4)s are created for a reason. And they all have missions, and they are supposed to be benefiting social welfare and so it’s important that those that raise money for those organizations. No. 1 is that they are independent boards that are executing their mission. I don’t think a politician should steer their spending [that way]; that’s not what they are for. No. 2, a politician shouldn’t be using them to pay their credit card off and things like that,” Hall said.. 

“So, you know, to the extent that the accusations … we will see whether they are proven,” Hall continued. “But I’ll just say, if the activity that has been described, if true, is not what these accounts are intended for, and no one should be using them that way. I certainly, strongly disagree with them being used that way. And if they are used that way, people should be charged with crimes and convicted for using them that way. They should follow the law. And as you know, the IRS has pretty strict rules on how to do this. So elected officials, if they are raising money, if these funds, because they believe in the causes, you had better vet the organizations, you better make sure that they have good board members, and you shouldn’t be using them as personal bank accounts.” 

Tates says the budget is job one

The House was back Wednesday after spring break, but session was quickly interrupted by a tornado warning. Lawmakers, staff and media moved off the House floor to seek shelter.

After the scramble and session was over, Tate talked with reporters about Democrats’ priorities on the heels of Tuesday victories from state House Democratic candidates Peter Herzberg and Mai Xiong.

“We had two vacated seats for several months. We know that we will have those members sworn in here probably in the next couple of weeks or so. And we know where we’re at just in terms of the timeline and we know that a budget is critical to prioritize at the end of the day. We want to make sure that we do it in a thoughtful way, make sure that we deliver something Michigan residents can be proud of,” Tate said.

While the hope is to continue moving pieces of legislation through committee and the chamber, the Fiscal Year 2025 budget remains as the top priority, Tate said. The budget goes into effect on Oct. 1, but lawmakers are supposed to have legislation wrapped by July 1 — although there’s no penalty if they fail to meet that deadline.

When asked if the House could take action in the coming months on a bipartisan set of bills passed by the Senate in October aimed at further reforming Michigan’s auto no-fault law, Tate said they would continue to look at the policies but reiterated that the focus would be on the budget.

Members of the Michigan House of Representatives and government staff packed into the hallways on the first floor of the Capitol building during a tornado warning on April 17, 2024. | Kyle Davidson

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