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5 min readThe Governor of Michigan Gets Audited: Gretchen Whitmer on State Finances, Tariffs, and the Pension Gap
Episode: Financial Audit
The day before election day, Caleb Hammer sat down with Michigan Governor Gretchen Whitmer for a state-level financial audit — and the first thing that stood out was the governor's reaction to the word "gooning." She had just learned the term from her lieutenant governor, and when Hammer used it to describe his own obsessive interest in state budget data, Whitmer laughed and asked him to explain it to her audience. It was a disarming moment in a conversation that otherwise covered billions in unfunded pension liabilities, the limits of tariff policy, and the structural problems baked into Michigan's budget.
The State of Michigan's Finances
Michigan carries $6.925 billion in outstanding debt, but that number actually fell by $300 million — 4.2% — year over year. Whitmer noted that states cannot run deficits the way the federal government can, and she has passed a balanced bipartisan budget every year she has been governor. The state's bond rating has been upgraded to double-A, and Whitmer has personally traveled to Wall Street to meet with rating agencies.
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What you'll learn
- 1 (01:23) **Tariffs as a Scalpel, Not a Sledgehammer** - Governor Whitmer explains her nuanced view on trade policy, arguing tariffs must be targeted to protect Michigan's auto and agriculture sectors without disrupting integrated supply chains.
- 2 (04:20) **Michigan's Economic North Star** - Whitmer outlines her core philosophy for the state budget: ensuring anyone can build a life in Michigan by investing in people, places, and advanced manufacturing jobs.
- 3 (10:22) **Incentive Spending & Battery Plant Controversy** - Discussion of the state's incentive packages, specifically the Blue Oval battery park, where the deal was slashed from $1.03 billion to $409 million with projected jobs cut from 2,500 to 1,700.
- 4 (14:45) **State Debt & Pension Underfunding** - Analysis of Michigan's $6.9 billion outstanding debt (down 4.2% year-over-year) and the $24.4 billion unfunded pension liability, which is five times the annual K-12 school aid fund contribution.
- 5 (29:53) **Revenue Sources & School Funding Controversies** - Breakdown of Michigan's revenue streams, including the $270 million from marijuana taxes and the use of "sin taxes" to fund education, which the host criticizes as regressive.
- 6 (37:00) **Tax Policy & the Working Families Tax Credit** - Discussion of the state's personal income tax rate (4.25%) and the expanded Earned Income Tax Credit (EITC), which provides a 30% state match for low-income workers.
- 7 (46:00) **Pork Spending & Budget Transparency** - The host calls out nearly $1 billion in "pork" spending, including $10 million for the Potter Park Zoo, $5 million for the Special Olympics, and $1.6 million for the Grand Rapids Ballet.
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Guests on this episode
Show Notes
Join us for the post-show! The producers and I reflect on the conversation and give our brutally honest opinions. Watch here: ➡️ https://bit.ly/chpostshow ⚡️ Download the DollarWise Budgeting App today:➡️ https://bit.ly/dollarwiseapp ⚡️ Get your FREE Hammer Financial Score:➡️ https://bit.ly/calebhammer 🔥 GamerSupps: tasty, cheap ($0.25/serving)! Save 10% with code CALEB: gamersupps.gg/caleb 👉 Checking & Savings: Get up to a $350 bonus with a new Chime® Checking account, and earn up to 3.50% APY on your savings: https://chime.com/calebhammer ============================= *Our Sponsors for This Video* ============================= Use Yrefy to refinance your private student loans today at: https://yrefy.com/hammer or call (888) Yrefy-78 Thanks to Henson Shaving for sponsoring this video! Head to https://hensonshaving.yt.link/YJaiJ6g and use code calebhammer to receive 100 blades for free (2+ years worth). Just make sure both products are in the cart for the code to take effect. ============================= *Master Your Money with Caleb Hammer* ============================= ⚡️Budget YOUR dream life with my simple courses: ➡️ https://bit.ly/calebhammer ⚡️Check out all of my custom Financial Audit merch: ➡️ https://bit.ly/caleb-merch ============================= *Gretchen Whitmer's socials* ============================= Instagram: https://www.instagram.com/gewhitmer/ Facebook: https://www.facebook.com/GovGretchenWhitmer YouTube: https://www.youtube.com/@governorgretchenwhitmer/featured Twitter: https://x.com/GovWhitmer TikTok: https://www.tiktok.com/@biggretchwhitmer Threads: https://www.threads.com/@gewhitmer ============================= *Check Out My Resources* ============================= 👉 I'VE MOVED MY INVESTMENTS TO WEBULL! https://www.webull.com/k/Caleb 👉 Checking & Savings: Get up to a $350 bonus with a new Chime® Checking account, and earn up to 3.50% APY on your savings: https://chime.com/calebhammer 👉 Land a high-paying job with no experience or degree: ➡️ https://coursecareers.com/CalebHammer 👉 Get $20 from Acorns for free: ➡️ https://acorns.com/caleb 👉 First 100,000 Fizz sign-ups with code HAMMER10 get $1.0: https://www.joinfizz.com/caleb 👉 Helium Mobile: Use promo code CALEB for a FREE plan ➡️ https://hellohelium.com/ 👉 Protect your online privacy and security for free with Aura: ➡️ https://aura.com/hammer 👉 Get an exclusive HighLevel 30-day trial: https://gohighlevel.com/calebhammer ============================= *Chapters* =============================
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