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With the budget complete, what should lawmakers do next? – Mackinac Center

This article originally appeared in The Detroit News October 21, 2025.

Give Gov. Gretchen Whitmer and the Legislature a quiet round of applause for completing the state budget earlier this month. The Legislature is split — Republicans control the House and Democrats have the Senate — so agreeing on how to spend $81 billion took negotiation and tradeoffs. But passing a budget is a minimum expectation for lawmakers.

Now that it’s complete, what issues should lawmakers prioritize? Three ideas: Cut red tape, improve housing regulations and expand government transparency. The budgeting process showed that state leaders can work together despite divided government. Any new legislation needs to thread the same bipartisan needle.

Whitmer offered several ideas that could attract bipartisan support during her February State of the State Address.

One such idea was licensing reform. “A lot of our licensing rules and requirements don’t make sense,” said Whitmer.

People in Michigan must get government permission for all sorts of jobs — 180 different occupations. This places a heavy burden on people who just want to work. The licensing process is costly and time-consuming. Many of the training requirements are baffling and inconsistent. Barbers must get 1,800 training hours while EMTs need 194 hours of instruction. And some restrictions prevent people with a criminal background from getting a license.

Michigan still refuses to recognize many out-of-state licenses, a refusal that makes it harder to attract skilled workers in today’s mobile economy. A highly effective teacher who moves from Florida or Indiana or Ohio has to jump through multiple hoops to teach in Michigan public schools.

Rep. Bill G. Schuette, R-Midland, chairs the House Rules Committee. He introduced House Bill 4924, which would create reciprocity for out-of-state licenses. Schuette also spearheads the bipartisan Red Tape Reduction Initiative, with 50 bills aimed at simplifying regulations and permits.

“It takes a lot of white paper to cut red tape,” says Schuette.

Whitmer also highlighted permitting in her State of the State address. She asked state agencies to speed up the approval process, simplify duplicative permits and drop others. “You shouldn’t need a permit to sell ginseng, install a model train, or lime your soil,” she said.

Housing costs often come up in conversations with lawmakers. Housing is subject to the same supply and demand forces as any other product: If the supply of a thing increases, the price drops.

Any legislation addressing housing should demonstrate this understanding of basic economics. Whitmer said as much about housing in February: “we must also address the core issue of supply.”

Rep. Kristian Grant, D-Grand Rapids, and Rep. Joe Aragona, R-Clinton Township, are working on a proposal to reduce construction costs and free developers to build more housing units. The state won’t build these homes and apartments; it just needs to get out of the way. This approach is more effective than merely offering subsidies to would-be homeowners.

Government transparency has bipartisan support and deserves bipartisan action. The Freedom of Information Act requires some government agencies to disclose public records upon request, but the governor and lawmakers have been exempt since the law was adopted in the 1970s. Michigan lags nearly every state in this regard.

Sens. Jeremy Moss, D-Southfield, and Ed McBroom, R-Vulcan, have labored for years to improve transparency requirements for the governor and lawmakers. Their bills, SB 1 and 2, passed the Senate in January and await action in the House. Additionally, the state should demand more transparency from agencies that offer business subsidies, such as the Michigan Economic Development Corp.

These ideas have champions on both sides of the aisle. With the budget now behind them, lawmakers should focus on priorities that will unleash economic opportunity and improve government accountability.




Permission to reprint this blog post in whole or in part is hereby granted, provided that the author (or authors) and the Mackinac Center for Public Policy are properly cited.

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