Eric Doster, attorney for Small Business for Better Michigan, proposes changes to the proposed summary language for the Invest in MI Kids ballot initiative. July 31, 2025 | Photo by Kyle Davidson/Michigan Advance
Supporters and opponents of a proposed constitutional amendment to fund schools with a new tax on wealthy Michiganders came out in force on Thursday, as members of the Board of State Canvassers worked to finalize petition language summarizing the effort.
However the board ultimately deadlocked on the summary language, unable to find a middle ground on language detailing how the amendment would impact small business owners and whether the proposal can guarantee funds are used for specific investments into schools.
While the board previously approved language for the Invest in MI Kids initiative at its June 27 meeting, procedural issues resulted in the board rescinding its approval, sending the initiative back to the beginning of the process.
The initial summary presented to the board on Thursday used the same language they approved in June. However, the board was split with Vice Chair Mary Ellen Gurewitz and Canvasser Heather Cummings, both Democrats, in support of reapproving the previous language, while Board Chair Richard Houskamp and Canvasser Paul Cordes argued they should alter the summary in light of Thursday’s testimony.
“We approved the summary. And now everybody who doesn’t like the summary wants, as Ms. Cummings says, they want a second bite at the apple, and I don’t think we should give it to them,” Gurewitz said.
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The Invest in MI Kids coalition is proposing a 5% “fair share surcharge”on individual filers making more than $500,000 and over $1 million for joint filers, with the coalition arguing the effort would address $4 billion to $5 billion of underfunding Michigan schools.
However, business groups from throughout the state argued before the board that the effort would amount to a graduated income tax and would bring harm to small businesses owners.
“Many small businesses are organized as S corps, LLCs, partnerships and sole proprietors, which means they claim business income on their individual income tax. And this proposal narrows in on that specifically,” said Kelli Saunders, vice president of policy and engagement for the Small Business Association of Michigan. “The $500,000- $1 million reportings are not their take home pay. Small business owners must leave earnings in the business for hiring, expanding salary and benefit packages, cost increases, capital expenditures and normal increases in day to day operations to keep the doors open.”
Anne Kuhnen, Kids Count policy director for the Michigan League for Public Policy, said the proposal would raise over $1.5 billion in revenue to help educate the future workforce, emphasizing that the tax would be applied to individuals, not businesses.
“The surcharge applies to all income an individual taxpayer earns from salaries, gambling or lottery winnings, investments, capital gains, spousal incomes and businesses, as well as other eligible sources. But it is not a business tax.…This surcharge also does not enact a graduated income tax. Instead, it proposes a new separate tax at a simple flat rate,” Kuhnen said.
Michigan Board of State Canvassers Vice Chair Mary Ellen Gurewitz and Canvasser Heather Cummings. July 31, 2025 | Photo by Kyle Davidson/Michigan Advance
Canvasser Paul Cordes and Board of State Canvassers Chair Richard Houskamp. July 31, 2025 | Photo by Kyle Davidson/Michigan Advance
Eric Doster, attorney for Small Business for Better Michigan, proposes changes to the proposed summary language for the Invest in MI Kids ballot initiative. July 31, 2025 | Photo by Kyle Davidson/Michigan Advance
Lobbyists and members of the public supporting and opposing the Invest in MI Kids ballot effort packed the Board of State Canvassers meeting room. July 31, 2025 | Photo By Kyle Davidson/Michigan Advance
State Rep. Regina Weiss (D-Oak Park) offers comment to the Board of State Canvassers in support of the Invest in MI Kids ballot initiative. July 31, 2025 | Photo By Kyle Davidson/Michigan Advance
Lobbyists and members of the public supporting and opposing the Invest in MI Kids ballot effort packed the Board of State Canvassers meeting room. July 31, 2025 | Photo By Kyle Davidson/Michigan Advance
A copy of the petition to be circulated by the Invest in MI Kids Ballot Proposal Coalition. July 31, 2025 | Photo By Kyle Davidson/Michigan Advance
Molly Sweeney, organizing director of 482Forward, a member of the Invest in MI Kids ballot proposal coalition tells reporters the group plans to begin circulating petitions. July 31, 2025 | Photo By Kyle Davidson/Michigan Advance
Daniel Ziegler, an attorney representing the Coalition to Stop the Business and Family Tax Hike objects to his exclusion from negotiations on summary language for the Invest in MI Kids ballot initiative. July 31, 2025 | Photo by Kyle Davidson/Michigan Advance
Daniel Ziegler, an attorney representing the Coalition to Stop the Business and Family Tax Hike objects to his exclusion from negotiations on summary language for the Invest in MI Kids ballot initiative. July 31, 2025 | Photo by Kyle Davidson/Michigan Advance
Michigan Director of Elections Jonathan Brater and Deputy Director of Elections Adam Fracassi. July 31, 2025 | Photo by Kyle Davidson/Michigan Advance
Steve Liedel, attorney for Invest MI Kids offers comment on the Michigan Board of State Canvassers proposed summary for the proposed Constitutional Amendment. July 31, 2025 | Photo by Kyle Davidson/Michigan Advance
While the amendment would require money from the additional tax go toward classrooms in local school districts, including funding for career and technical education, attracting and retaining high-quality educators and reducing class sizes, Brian Shoaf, vice president of Public Policy and business advocacy at the Detroit Regional Chamber, argued the Legislature and the governor have the final say over how these funds are spent.
State Rep. Regina Weiss (D-Oak Park) disagreed, offering her opinion as a lawmaker and former chair of the House Appropriations Subcommittee on School Aid and Education that the Legislature could not spend that money for any other purpose than what is outlined in the amendment language.
In hopes of breaking the deadlock, Steve Liedel, attorney for Invest in MI Kids, offered to meet with Michigan Director of Elections Jonathan Brater and Eric Doster, attorney for Small Business for Better Michigan, which is opposing the effort, with Brater drafting a new summary based on the conversation.
Not included in the conversation was Daniel Ziegler, an attorney representing the opposing Coalition to Stop the Business and Family Tax Hike, who objected to his exclusion.
However, the new proposal language, and the subsequent tweaks made to the summary were not enough to bring the board into agreement. With Gurewitz bringing a vote to approve the revised petition summary, the board voted on party lines, failing to approve the language.
However, the board did vote to approve the form of the constitutional amendment. With that approval, Molly Sweeney, organizing director of 482Forward, a member of the ballot proposal coalition, said the plan is to move forward and distribute the petitions using the language previously approved by the board and presented by Brater earlier in the meeting.
“We’re going to make sure it gets through and we believe the law’s on our side. We have an approved petition, we have an approved form, and we’re ready to go,” Sweeney said.
While petitioners can ask the director of elections to prepare a summary to be approved or rejected by the board, they are not required to use that summary. However, a summary approved by the Board cannot be challenged on the grounds that it is misleading or deceptive.
Regardless, Liedel dismissed any concerns that the effort would not be permitted to move forward under the previously approved summary.
In order to make the ballot in 2026, Invest MI Kids will need to gather 446,198 signatures within 180 days to be placed on the statewide ballot in the 2026 election.
However, Houskamp told reporters that if the matter does make the ballot, the next battle over this petition will likely involve the ballot summary language.
In addition to arguing the proposal cannot truly require the Legislature to spend funds raised by the amendment in specific ways and that the matter amounts to a graduated income tax, Houskamp also took issue with placing tax policy directly into the Michigan Constitution, where it cannot easily be altered.
“The 1,000-word summary doesn’t mean anything at the end of the day. The trouble is, if you catch somebody standing in front of the library and you read that 100-word summary, that makes it sound like this is a great deal. You flip it over and read the petition, and you really read it, well, yeah, it’s got a couple flies in it. And I think that those little issues with that petition are not little issues. I think they’re major issues,” Houskamp said.