Nik Rajkovic / news@whmi.com

Governor Gretchen Whitmer on Monday announced her Saving Michiganders Money Plan, proposing additional tax cuts and cost-saving measures for seniors, families, and workers across the state. The proposals are part of a package the Governor is proposing for the next state budget.

According to the governor's office, it completes the rollback of the retirement tax, putting an average of $1,000 back in the pockets of almost 500,000 seniors. It will end state taxes on Social Security, saving 40,000 seniors hundreds of dollars a year.

The budget also proposes property tax relief for 355,000 seniors, saving households $345 a year by refunding approximately 10% of their property taxes. Officials said this represents the highest property tax relief in over a decade.

For families, the plan continues the increased Working Families Tax Credit, delivering an average combined refund of $3,900 to 665,000 families. It maintains free PreK for All, saving more than 50,000 families $14,000 a year per child.

Gov. Whitmer also proposes a new sales tax holiday on school supplies, which would also apply to clothing, classroom items, and computers. The targeted tax cut would cover both online and in-person purchases.

For workers, the plan ends state taxes on tips, saving nearly 140,000 service industry workers hundreds of dollars a year. It also eliminates state taxes on overtime, saving 500,000 workers hundreds of dollars annually. Which would also apply to clothing, classroom items,

The plan will continue to provide free breakfast and lunch to all 1.4 million public school students. Free school meals save families nearly $1,000 a year on groceries per child. The proposal includes making free school meals permanent by law.

"As Michiganders face a lot of national economic uncertainty, we must work together to lower costs so they can pay the bills, put food on the table, and provide for their kids. In this year’s budget, I’m proposing the Saving Michiganders Money Plan to continue lowering taxes for seniors, workers, and families, feed kids, cut taxes on school supplies, and lower the cost of a public education from preK through college. Let’s work together to save Michiganders money."

Every high school graduate can attend community college for free or earn a bachelor’s degree while saving up to $27,500 under the plan.

The state has already rolled back the retirement tax, quintupled the Working Families Tax Credit and ended state taxes on tips, overtime, and Social Security. Michigan has made breakfast and lunch free for all public school students and established free preK and community college programs.

Other completed initiatives include Michigan Reconnect, offering tuition-free associate degrees or certificates to Michiganders 25 and older, and the Michigan Achievement Scholarship, lowering degree costs by thousands of dollars. The state raised the minimum wage to $15 and established earned sick time policies.

On Wednesday, the State’s Budget Director, Jen Flood will present the Governor’s budget recommendation to a joint session of the House and Senate Appropriations Committees.