The biggest issue with Gov. Gretchen Whitmer’s $74 billion budget proposal is that it uses public funds to reward preferred groups of taxpayers and citizens, while ignoring others.

Michigan is in a rare place in that it has more money than it needs to run state government. In most years, governors and lawmakers are forced to make tough choices about how to cover too many needs with too few dollars.

For 2023, the state has a $7 billion surplus, thanks to spending cuts made to counter the impact of the COVID-19 pandemic and increased tax revenue from unanticipated economic growth.

In addition, it still has $4.7 billion left in federal American Rescue Plan Act money intended for virus relief.

The temptation for politicians sitting on such a large pile of cash, particularly in an election year, is to use it to buy favor with voters most likely to be supportive of their campaigns.

Whether it is her intent or not, it appears that Whitmer is doing just that. A key piece of her tax relief proposal would restore the tax exemption on public employee pensions. Former Gov. Rick Snyder ended that special treatment for government retirees in 2011, in part to erase a budget deficit, but also because he recognized the unfairness of taxing private sector pensions while allowing public pensions to go tax free.

Snyder also made the compelling case that giving tax breaks for pensioners penalized the 80% of seniors who don’t have defined benefit retirement plans.

It was true then, and still true today.

Whitmer wants to restore the special status for government retirees, and if allowed to do so, would also return the unequal treatment of retirees.

Similarly, she is proposing one-time “Hero Pay” checks for pandemic first-responders of up to $1,000.

Lots of employees worked under dangerous and difficult conditions when the virus was at its worst. The pool of front-line workers has yet to be fully identified, but it would undoubtedly leave out some workers who took risks during the pandemic.

Whitmer also is taking care of one of her most loyal constituencies — school teachers. She’s asking for retention bonuses for teachers that would grow from $2,000 to $4,000 over three years.

In addition, the governor wants handouts to those who buy electric vehicles and install charging stations.

Everyone in Michigan suffered from the pandemic, and everyone could use additional dollars in their pockets. The fairest approach would be to provide a broad-based tax cut for both residents and businesses. Or put the excess into restoring Michigan’s failing infrastructure. That way, all taxpayers benefit.

Since much of the extra money Lansing has to work with represents a temporary windfall, policymakers should also consider using it to paydown the state’s long-term pension and health care obligations, a move that would pay off for future taxpayers and public employees alike.

Stashing a larger amount than the $52 million Whitmer proposes in the rainy day fund would result in lower borrowing costs and protect Michigan from an economic downturn.

Whitmer and the Legislature should avoid picking winners and losers in the 2023 budget and seek instead to provide equitable relief to all taxpayers.

–Detroit News