#FactsMatter podcast host Guy Gordon and Eric Lupher, president of the Citizens Research Council, take a deep dive into Article IX of the Michigan Constitution, which governs finance and taxation. They explore why Article IX has become a magnet for constitutional amendments over the past 60 years, noting that Michigan voters often turn to constitutional changes because of deep mistrust in the legislature’s ability to manage taxation and spending.

The conversation examines several major issues that could resurface if Michigan voters approve a constitutional convention:

• Flat vs. graduated income tax: Michigan’s constitution mandates a flat rate, but exemptions and credits create de facto progressivity. Lupher explains that other states adjust their tax structures legislatively, whereas Michigan locks its structure into constitutional text.

• Sales tax limitations: Michigan’s 6% sales tax is constitutionally capped and heavily earmarked, leaving no room for local sales taxes—something many local governments may seek to revisit.

• State revenue limit: A Headlee-era cap tying state revenues to personal income has become “irrelevant,” Lupher notes, as personal income has stagnated and state revenues have fallen. “We are now $11, close to $12, billion dollars below that revenue limit…”

• Earmarking: The constitution’s extensive revenue earmarking restricts legislative flexibility, especially during recessions. Lupher recalls that earmarking was a major reason voters approved the 1961–63 constitutional rewrite.

• Borrowing restrictions: Michigan requires voter approval for certain types of state borrowing, an important safeguard, but one that can limit responsiveness during emergencies or major infrastructure needs.

• Local government finance constraints: Headlee, Proposal A, and taxable value limits have severely restricted local governments’ ability to raise revenue. Lupher suggests that local governments may be the most motivated constituency for a constitutional convention.

• Pensions: The constitution’s strong protections for public pensions were intended to ensure that governments kept their promises to workers. Although defined-benefit plans are less common today, these protections remain significant.

Throughout the conversation, Lupher emphasizes that Article IX is cluttered with statutory-level detail, often copied directly from older laws. This makes the constitution inflexible and difficult to modernize. “If you’re going to start in one place to clean this up… that’s it.”

The episode closes with a sober reminder: while Article IX may be the strongest argument for a constitutional convention, Michigan’s polarized political climate makes such an undertaking risky and contentious.

© 2026 Citizens Research Council – MI
38777 Six Mile Road, Suite 208, Livonia, MI 48152-3974
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