State Senator McMorrow's Budget Claims Don't Align With Michigan's Actual Numbers
State Sen. Mallory McMorrow, who will run for a United States Senate seat this fall, has made claims about Michigan's budget and economy that don't align with the actual numbers, according to an analysis from the Mackinac Center for Public Policy.
In a March 9 interview with MIRS News, McMorrow stated that "adjusted for inflation, the state of Michigan is operating with the same revenue we had in 1968 despite gaining more than 3 million people from then until today."
The state's revenue and population numbers do not support that assertion, according to James Hohman, a fiscal policy expert at the Mackinac Center for Public Policy.
Population Growth
Michigan's population increased from 8.7 million in 1968 to 10.1 million in 2025, an increase of 1.4 million, not the 3 million McMorrow claimed.
Revenue Growth
McMorrow also asserted that state revenue has been flat since 1968. The record doesn't support that claim, according to Hohman. State revenue was $2 billion in the 1967-68 fiscal year. If the state government revenue trend were flat, state revenue, adjusted for inflation, would be $18.9 billion. Instead, it was $48.9 billion in 2024-25, an increase of 2330%.
This means the state spent $2,178 per person in 1967-68 but $4,832 in 2024-25, for a 122% increase.
McMorrow's Position
"We saw a presentation in state Senate Appropriations that shows that our revenues simply are not keeping up," McMorrow told MIRS. "However, the tax burden has shifted off of corporations and on to middle-income taxpayers."
McMorrow continued, "So I hear residents saying, 'I feel like I'm paying a lot. I'm not getting anything for it,' and we need a fairer tax structure that supports the revenue that we need to ensure we can appropriately fund our schools, our roads, our infrastructure and, especially right now, Medicaid."
Tax Burden Shift
The senator's comments about tax burden shifting from corporations to middle-income taxpayers have gained traction as Michigan considers various tax proposals. Other states have recently increased their tax rates, including Washington, which passed a 9.9% income tax on incomes over $1 million, effective in 2028, and Massachusetts, which enacted a 4% surcharge on incomes over $1 million annually. A similar tax proposal failed to garner enough signatures to reach the 2026 ballot in Michigan.
Context on Spending
McMorrow did not respond to a request for comment on the Mackinac Center's analysis of her statements.
The Mackinac Center's analysis comes at a time when Michigan lawmakers are balancing competing priorities for the state's budget. Schools have been the biggest beneficiaries of Michigan's surplus, with the school aid budget increasing from $13.0 billion before the pandemic to $18.9 billion in the current budget, a $5.8 billion gain.
Medicaid received the next biggest increase in annual spending, with the federal government paying the bulk of Medicaid costs. Total state spending on the Department of Health and Human Services increased from $7.5 billion in 2018-19 to $11.4 billion today, a $3.8 billion increase.
Roads were the next biggest priority, with the transportation budget increasing from $3.5 billion in 2018-19 to $5.4 billion in the current budget. Road funding is at historic levels and should be sufficient to repair roads faster than they deteriorate.
The Bigger Picture
The analysis highlights the complexity of Michigan's budget decisions and the importance of accurate information when discussing state finances. As Michigan continues to grapple with budget priorities, including education funding, infrastructure needs, and healthcare costs, it's crucial that public officials and policymakers provide accurate information to Michigan voters.
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