Capitol Connection: August 5, 2025
Today is Primary Election Day in Lansing!
Tuesday, August 5, 2025 — The Lansing Regional Chamber of Commerce (LRCC) and its political arm, the Lansing Regional Chamber-Political Action Committee (LRC-PAC), urge all voters to head to the polls and make their voices heard in today’s Primary Election.
This year’s primary includes candidates running for key leadership positions across the City of Lansing, as well as local ballot proposals that will directly impact our region’s businesses, neighborhoods, and residents. Your vote is critical to shaping the future of our community.
For Lansing Voters, please consider voting for the pro-growth candidates
Federal Affairs
LRCC Supports Robust Federal R&D Funding
The Lansing Regional Chamber of Commerce joined more than 70 chambers and business organizations nationwide in signing the Business for Federal Research Funding (BFRF) Coalition’s July 2025 appropriations letter. The coalition’s message to Senate Appropriations Chair Susan Collins and Vice Chair Patty Murray urges Congress to maintain strong funding for federal research and development (R&D) in FY26 across key agencies including NIH, NSF, DOE, and DOD.
The letter highlights R&D’s critical role in advancing American innovation, competitiveness, and job creation—emphasizing economic returns such as a 22:1 ROI from the SBIR/STTR programs and $94 billion in total economic output generated by NIH-supported research. The Chamber supports this call to action as a vital piece of the regional and national economic strategy.
State Affairs
Graduated Income Tax Proposal Sparks Business Concerns
Proponents of the Invest in MI Kids initiative are moving forward to circulate petitions for a 2026 ballot proposal that would impose a 5% income tax surcharge on Michigan’s highest earners, directing new revenue to education.
Key updates:
- Board of State Canvassers Deadlocked: The panel split 2-2 on revised summary language. Supporters will move forward using the version approved on June 27.
- Business Community Raises Concerns: The Michigan Chamber of Commerce, National Federation of Independent Business, the Lansing Regional Chamber of Commerce and others argue the tax would disproportionately impact small business owners filing individual income taxes.
- Clarity on Terminology: Critics say the proposal amounts to a graduated income tax with a new 9.25% bracket, while proponents argue it’s a flat-rate surcharge on top earners.
The LRCC is closely monitoring this initiative and evaluating its potential implications on small business growth and Michigan’s overall tax climate.
Regional and Local Affairs
Chamber Supports Transformational Development Projects in Lansing
This week, the Lansing Regional Chamber of Commerce submitted letters to Lansing City Council supporting two key redevelopment efforts:
Pleasant Grove & Holmes Mixed-Use Project: The Chamber endorsed Brownfield Plan #80, Amendment No. 1, which will bring 30 new housing units, a neighborhood café, credit union, community center, and public plaza honoring Malcolm X to South Lansing—fostering cultural, economic, and community revitalization.
City Rescue Mission Redevelopment: The Chamber also voiced strong support for the redevelopment of the former City Rescue Mission site on Michigan Avenue, which will create additional housing, enhance retail opportunities, and improve public infrastructure along the corridor.
Construction Bidder Ordinance Proposal
The Chamber provided input on Lansing’s proposed “Responsive and Responsible Bidder” ordinance, expressing support for policies that promote quality and workforce development while urging clarification on apprenticeship requirements. The Chamber advocated for the inclusion of alternative training paths—such as trade schools, community college programs, and military certifications—to ensure fair competition and access to city contracts.
Eaton County and Delta Township Reach Public Safety Agreement
Delta Township and Eaton County have reached a new agreement that restores dedicated sheriff patrols within the township following a temporary disruption. Under the revised arrangement, Eaton County will provide 24/7 law enforcement coverage, with officers stationed directly in Delta Township to ensure uninterrupted public safety services.
To fund this enhanced coverage, Delta Township has proposed a special public safety assessment. The total cost is just under $8 million for Fiscal Year 2025-2026. Township leaders estimate the assessment would cost property owners an average of $161 annually, reflected on their winter tax bill if approved by the Township Board later this fall.
The Township Board has moved to set a public hearing on the proposed assessment, offering residents an opportunity to provide input before a final decision is made.
