LANSING, Mich. (WXYZ) — Racing to avoid a state government shutdown, Michigan lawmakers say a tentative deal has been reached.
Watch Simon Shaykhet's video report:
The budget framework includes a new 24% wholesale tax on marijuana, changes to the gas tax and more.
Outside the Secretary of State office in Dearborn, customers like Teyarra Nundley are cautiously optimistic about recent developments at the state Capitol.
“I think it would be important not to shut down, especially in a city like Dearborn. We have a lot of people coming in here for citizenship, things like that,” Nudley said.
According to the State Budget Office, the governor and legislative leaders have reached an agreement to pass a budget by the Oct. 1 deadline, and it includes long-term road funding, school funding and more.
However, free school lunch for all students is still unresolved.
Watch our previous coverage when lawmakers announced the agreement below:
A new 24% wholesale tax increase on marijuana passed as a bill. That new wholesale tax is on top of an existing 16% for other taxes including sales tax.
“As tax rates increase, people will be incentivized to go back to the gray market. This is going to produce less sales in stores,” said Matthew Abel, cannabis industry advocate.
Abel quickly responded to the bipartisan move aiming to raise $420 million in additional money for roads.
Lawmakers on both sides also weighed in.
“We do see other states have a higher tax on marijuana than we do here in Michigan. I think it’s a good idea -- pot for potholes,” Sen. Darrin Camilleri, D-Brownstown Township, said.
Sen. Joe Bellino, R-Monroe, said “I’m a definite no on that. All my counties are on the border. My counties are all on the border. Even though I voted no on the marijuana bill years ago, my counties are making money on it now. There’s no way I’m going to vote yes on that.”
The governor has said lowering costs is at the heart of what’s being decided as well as commitment to infrastructure.
Republican leaders say this year’s budget is expected to be less than last year’s $82.5 billion, but Nundley says it comes down to our kids’ futures.
“Offering them quality education and also a meal to keep them going through the day, that’s beneficial and absolutely again essential.”
Fuel taxes are still being worked out as well along with other details.
