2007 House Bill 5194 ↩

Senate Roll Call 397: Passed

To increase the state income tax from 3.9 percent to 4.35 percent, effective Oct. 1, 2007. The bill will take an additional $765 million, and is part of a deal to avoid state spending cuts that includes a $750 million service tax (<a href="http://www.michiganvotes.org/RollCall.aspx?ID=237048">House Bill 5198</a>, later replaced by a <a href="http://www.michiganvotes.org/2007-HB-5408">21.99 percent Michigan Business Tax surcharge</a>), plus modest school employee pension reform (<a href="http://www.michiganvotes.org/RollCall.aspx?ID=237070">Senate Bills 546</a> and <a href="http://www.michiganvotes.org/RollCall.aspx?ID=237073">547</a>), a bill to make it easier for school districts to seek competitive bids on employee health insurance (<a href="http://www.michiganvotes.org/RollCall.aspx?ID=237063">Senate Bill 418</a>), legislation limiting “double dipping” by retired school employees (<a href="http://www.michiganvotes.org/RollCall.aspx?ID=237036">House Bill 4800</a>) and a repeal a prohibition on contracting out mental health services in state prisons (<a href="http://www.michiganvotes.org/2007-SB-622">Senate Bill 622</a>). Note: the Lieutenant Governor (Democrat John Cherry) presides over the Senate and cast the 20th and deciding vote.