New housing, old school debates: 6 takeaways from Mackinac Policy Conference

• At Mackinac conference, Michigan officials announced new efforts to build 2,500 new affordable housing units in ten years
• House and Senate leaders, meanwhile, seem doubtful the Legislature will pass a budget by July 1 — and blame each other for it
• Detroit Mayor Mike Duggan, running for governor as an independent, pitches plan to improve Michigan schools

MACKINAC ISLAND — Michigan leaders announced new housing projects, continued fighting over the state budget, unveiled new school improvement plans and debated the impact of tariffs Wednesday at the Detroit Regional Chamber’s Mackinac Policy Conference.

The annual gathering at the Grand Hotel on Mackinac Island, which runs through Friday, attracts lawmakers, lobbyists, public officials and more. 

Here's what they had to say on the first full day of the conference:

Lansing drama travels

Partisan tension followed lawmakers from Lansing to Mackinac Island, where state House and Senate leaders on Wednesday voiced skepticism they can reach a budget deal by July 1. 

While they have until Oct. 1 to avoid a government shutdown, the self-imposed July deadline is meant to provide school leaders with certainty as they build their own annual budgets this summer. 

“We’re going to do our best to get a deal,” said House Speaker Matt Hall, R-Richland Township. But, he cautioned, that is likely “going to be well after July 1.”

“If we take our time, we’re going to do something much better, and we’re going to finally fund all of these priorities for Michigan,” Hall told reporters at a media conference on the Grand Hotel balcony.

While the Republican-led House has not yet advanced any budget bills, Republicans in March introduced and quickly approved what Hall called a "government shutdown prevention plan": A roughly $20 billion proposal to continue funding schools and other basic government services if lawmakers cannot balance the budget by Oct. 1. 

Related:

• As lawmakers prep budget, economists warn tariffs may cost Michigan 13,000 jobs
• From taxes to Medicaid, what Trump’s ‘big, beautiful bill’ would mean for Michigan
• Matt Hall storms Lansing: Insulting, unapologetic and 'winning every week'

The Democratic-led Senate, meanwhile, approved budget bills earlier this month totaling a cumulative $84.5 billion. House leaders have slammed the move as unserious though, given that economists recently warned lawmakers tax collection revenue will be lower than expected this year and next.

Senate Majority Leader Winnie Brinks, D-Grand Rapids, said it’s now on the House to “come to the table and start actually talking about things that should go in the budget.”

“In the lack of, or in the absence of, them passing a serious budget, all we have to work with is this bare-bones shutdown budget,” Brinks said in an interview with Bridge Michigan early Wednesday.

“If that’s where they want to start, fine, but this point of the process demands that we get in the room and negotiate. …They are not responding to our invitations to do that.”

GOP leader outlines education priorities

Hall did provide some glimpses into what the House is considering for its education budget, claiming their proposal will raise Michigan’s per-pupil spending to $12,000 a child.

That would be more generous than Gov. Gretchen Whitmer’s budget proposal, which would raise per-pupil funding to $10,000, and Senate Democrats’ budget that would raise the rate to $10,008.

Hall didn’t detail where House Republicans will find additional money to raise the per-pupil allotment, which currently sits at $9,608, other than to note there would be budgetary cuts elsewhere. 

He also indicated the House’s budget would “end earmarks for the for-profit companies,” revise state regulations on local school districts and raise the state’s School Aid rainy day fund to $1 billion. 

As for colleges, Hall said the House budget proposal will include funding for a $5,500 scholarship that any Michigan high schooler can apply for, provided they attend an in-state school. The money would pay out every year for four years, bringing the cost to $22,000 per student. 

Community college students, meanwhile, would be eligible to apply for a $2,750 scholarship that would pay out similarly.

While Hall acknowledged it may not cover the entire cost of college for students, “that’ll really bite into that (cost) pretty good and help you with the affordability for our universities.” 

“We want Michigan students to be going to Michigan universities, colleges and community colleges,” Hall said. “We want our universities to be attracting and working to gain Michigan students.”

Duggan knocks Lansing

The partisan fighting from Lansing was rich fodder for Detroit Mayor Mike Duggan, who is running for governor as an independent after leaving the Democratic Party. 

"I've been dealing with Lansing a long time," Duggan said in a policy speech that bordered on a campaign rally. "It is the worst I have ever seen. Lansing is absolutely obsessed with Republicans versus Democrats. Who is in charge? Do I have the majority? Can I get the majority?"

Positioning himself as a problem solver, and arguing that “partisan turmoil” is at the root of Michigan’s problems, Duggan proposed a $4.5 billion plan to improve Michigan schools and said principals at schools that fail to improve should be fired. 

Duggan, who traditionally gives a keynote address at the annual conference, said he wants $4.5 billion over five years to train more teachers and literacy instructors, and to rebuild “decimated” career technical education programs offered in high schools. The funding would also come with accountability measures that Duggan said are necessary but would likely “piss people off.”

“There’s got to be consequences,” Duggan said. “If we’re going to pour $4.5 billion into our schools, the people who run the schools need to have some skin in the game.”

Read more: Mike Duggan's pitch for Michigan schools: Fix reading, fire failing principals

Watch: How governor candidate Aric Nesbitt says he'd fix Michigan education

Ambassador on US-Canada trade dispute: 'This too will pass'

An ongoing trade dispute between the US and Canada has been overblown and can still be resolved amicably, according to Pete Hoekstra, who became Trump's Ambassador to Canada this year after leading the Michigan Republican Party in the 2024 election cycle. 

"This too will pass," Hoekstra said Wednesday at the Mackinac Policy Conference.

While Trump's 25% import tax on Canadian goods remains in place, Hoekstra suggested most products flowing between the countries are exempt under the United States-Mexico-Canada Agreement.

"The perception that there's a lot of tariffs is a false perception," he said. "It's driven by emotions."

Hoekstra struck an optimistic tone a day after Trump continued his push to make Canada the 51st state by offering it no-cost protection under a potential missile defense system the president is calling the "Golden Dome."

Trump's pressure campaign and trade policies have sparked sharp criticism in Canada, where King Charles on Wednesday reaffirmed that Canada plans to remain a sovereign nation.

The trade dispute has major ramifications for Michigan, which borders Canada and is reliant on an auto industry supply chain that blurs borders. University of Michigan economists recently projected that Trump’s tariffs could cost the state 13,000 jobs. 

Canadian officials have responded by discouraging travel to the US. Ontario and Quebec, meanwhile, have both pulled US alcohol products from retail shelves, a move that Hoekstra called "outrageous."

Still, he dismissed the tensions as "pebbles in our shoes" — obstacles, but not insurmountable ones as Trump seeks a new agreement to equalize trade between the two countries.

"Our competition in autos is not Canada," Hoekstra said. "Our competition with autos is China, who we have to beat."

State to build 2,500 new affordable homes 

Allen Edwin Homes has committed to building 2,500 additional homes over the next 10 years in communities around Michigan as part of the state’s fight to grow its affordable housing stock, officials announced. 

The new construction will be supported by the Michigan State Housing Development Authority’s (MSHDA) Housing Tax Increment Financing Program, known as TIF, which supports the construction or rehabilitation of housing priced affordably for families earning up to 120% of area median income. 

“The Housing TIF Program has already made a big impact in helping us confront the housing shortage, with hundreds of new housing units supported by this financing and thousands more on the way,” Amy Hovey, MSHDA President and CEO, said in a statement. 

“We’re grateful to have partners like Allen Edwin Homes who are embracing innovative solutions to help get more homes built that are affordable for working people in Michigan to purchase.” 

Michigan’s fight to build more affordable housing appears to be working, US Census data indicating the state has grown its affordable housing stock by adding 22,000 new units in 2024.

Labor department puts $107M to workforce development 

Michigan will commit up to $107 million through various projects in an effort to grow the state’s infrastructure workforce, officials announced Wednesday.

“Infrastructure investments will connect Michigan residents to training opportunities for good-paying jobs and make Michigan more prosperous for all,” Susan Corbin, director of the Department of Labor and Economic Opportunity (LEO), said in a statement.

As part of that $107 million figure: 

• $35.7 million will come from LEO’s Transmission Siting and Economic Development Grant Program. Funding will go toward supporting specialized education and training through electric utility apprenticeship and pre-apprenticeship programs, as well as training for electric vehicle infrastructure construction and installation.
• $11.5 million will come from the Department of Environment, Great Lakes and Energy's Solar for All and Training for Residential Energy Contractors initiatives to support the deployment of solar to households in low-income and disadvantaged communities across the state. 
• $60 million will come from the Broadband, Equity and Deployment Program within the Michigan High-Speed Internet Office. This will be used to provide funding for non-deployment uses, including broadband infrastructure workforce development, to support the successful deployment of broadband infrastructure.

The state Department of Transportation will additionally invest $11 million in already existing funds into workforce programs aimed at improving Michigan’s transportation system. The money will support training aimed at driving economic growth, enhancing mobility, and improving safety while targeting key infrastructure areas including roads, bridges, aviation, and rail.