Funding the Michigan Reform Plan

Start with what Michigan can pass now.
Scale up with fairer long-term revenue.

The Michigan Reform Plan is designed to be ambitious, but it is also designed to be executable.

That means the funding strategy is phased.

Michigan can begin delivering major early wins through statutory revenue changes, public-return rules, trust funds, reserve structures, and targeted capital financing. Larger long-term expansion can then be supported through amendment-backed fair-tax reforms once voters have seen results, trust has grown, and stronger governing coalitions are in place.

This approach is built around a simple principle:

deliver early, build credibility, and scale responsibly.

Two Phases of Funding

The Michigan Reform Plan uses a two-stage financing strategy.

Phase 1 funds the first wave of reforms using revenue sources that can be enacted statutorily under current law. These sources are designed to support early implementation in healthcare, housing, education, energy, industrial renewal, and public accountability.

Phase 2 scales the plan further through constitutional amendment-backed tax reforms that allow Michigan to raise larger, more durable revenue from very high incomes and wealth proceeds.

This structure allows Michigan to begin acting immediately without pretending the entire long-term platform can be financed overnight.

Phase 1: Fund the First Wins Now

The first phase focuses on revenue mechanisms that can begin supporting implementation quickly under existing legal authority.

These include:

  • a high-value real estate equity transfer surtax

  • restoration of an estate and inheritance tax

  • stronger corporate accountability and excess compensation taxes

  • public-return mechanisms tied to major publicly supported private projects

  • trust funds, reserve rules, and stabilization structures

  • bond financing where appropriate for capital-heavy investments

These revenues are intended to support the first governing phase: visible improvements that lower pressure on families, strengthen public systems, and prove that government can still deliver results.

Fund the first wave with revenue Michigan can enact now, then scale up with broader fair-tax reform later.

The Policy

Phase 2: Scale Up With Fairer Structural Revenue

Some of the largest long-term reforms in the Michigan Reform Plan require revenue changes that Michigan cannot fully enact through statute alone.

That is why the plan also includes ready-made constitutional amendment proposals for:

  • a Fair Share Income Tax Amendment

  • a Wealth Proceeds Tax Amendment

These measures are designed to expand long-term funding for healthcare, education, and broader public investment once voters authorize the state to adopt fairer revenue rules.

The strategy is straightforward: deliver real results first, then campaign for the next level of reform with proof, momentum, and stronger public trust.

Start now with statutory revenue. Scale later with voter-approved fair-tax reform.

The Policy

Revenue Is Tied to Public Purpose

The Michigan Reform Plan is not built around vague promises that revenue will “somehow” be used well.

Each major funding stream is tied to specific public purposes through trust funds, dedicated allocations, reserve rules, and public reporting requirements.

Examples include:

  • healthcare and medicine affordability

  • housing stability and first-time homeownership

  • school funding and student opportunity

  • worker training and apprenticeship pathways

  • public reserves and shortage security

  • long-term infrastructure and industrial readiness

This structure helps ensure that major revenue changes produce visible public benefit instead of disappearing into general drift.

When Michigan helps finance major projects, the public should not carry all the risk while private investors keep all the upside.

That is why the funding framework includes public-return tools such as:

  • revenue-sharing agreements

  • profit participation

  • equity or equity-like participation where lawful

  • repayment provisions

  • clawbacks for nonperformance

  • reinvestment into long-term public priorities

Over time, these tools help build a Michigan Reform Reinvestment Fund that can support infrastructure, workforce development, site readiness, and other strategic investments.

Public Investment Should Create Public Return

If public dollars help create private wealth, the public should share in the return.

The Policy

Strong Reserve Rules Make the Plan More Credible

The funding strategy also uses reserve and smoothing rules to protect against volatility.

Instead of assuming every good revenue year can be spent all at once, the plan uses trailing-average appropriation caps and stabilization reserves to make long-term investments more reliable.

That means:

  • volatile revenue is smoothed over time

  • excess collections help build reserves

  • core commitments are protected during weaker years

  • the state avoids overpromising based on one unusually strong cycle

This is one of the most important ways the Michigan Reform Plan is designed to be serious and durable.

The Plan Does Not Depend on Friendly Federal Politics

The Michigan Reform Plan assumes minimal federal help in the near term.

If future federal funding becomes available, Michigan can use it to accelerate implementation, reduce pressure on state revenue, or expand successful programs.

But the base plan is designed to stand on mostly state-controlled revenue and financing tools.

That makes the funding strategy more conservative, more honest, and more resilient.

Related Tax Legislation

The Michigan Reform Plan includes both core funding legislation and related tax legislation, but they do not all serve the same purpose.

The core funding package is designed to finance major public priorities: healthcare affordability, prescription access, housing stability, school investment, workforce development, industrial renewal, and long-term public capacity.

That package includes tax changes such as:

  • a high-value real estate equity transfer surtax on luxury property and controlling-interest transfers

  • restoration of a Michigan estate and inheritance tax on very large estates

  • stronger corporate accountability and excess compensation taxes, including taxes tied to extreme CEO-to-worker pay ratios, stock buybacks, and certain high-end corporate property holdings

  • amendment-backed proposals for a Fair Share Income Tax and a Wealth Proceeds Tax, which would provide larger long-term revenue once approved by voters

Together, these measures are intended to help lower costs, strengthen public systems, and fund the next stage of the Michigan Reform Plan.

Some other tax legislation may be related to the broader reform agenda, but is narrower in purpose and should remain separate from the main funding framework.

That includes the Michigan Athlete Signing & Retention Credit Act. This is not meant to function as a major revenue source or a core financing pillar of the Reform Plan. It is a separate supplemental tax measure designed to address a specific concern: if future tax changes create a competitive disadvantage for major Michigan sports teams in signing or retaining top players, the credit could offset part of that impact under a capped, temporary, and publicly reported structure.

The case for keeping it separate is simple. The core funding package is about broad public priorities. The athlete credit is about a specific competitive and regional economic concern tied to sports-related revenue, tourism, and local business activity when teams perform well.

Keeping these narrower tax-code adjustments outside the main funding package makes the overall financing framework clearer, more disciplined, and easier to evaluate.

The Policy

Use broad tax reform to fund broad public priorities, and keep narrower tax-code changes separate.

Funding Documents and Draft Legislation

Explore the funding framework, revenue measures, and draft legislation supporting the Michigan Reform Plan.

Document Groups

1. Core Funding Framework

2. Constitutional Amendment Track

3. Phase 1 Revenue Measures

4. Supplemental / Related Tax Legislation

5. Fiscal and Reserve Materials

Serious Reform Requires
Serious Financing

The Michigan Reform Plan is not based on slogans. It is based on a phased, realistic financing strategy that can begin delivering results now and scale responsibly over time.

That is how Michigan can move from frustration to governing — and from governing to lasting reform.

Read the Full Reform Plan

View the Michigan Reform Plan
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