I Confronted The Governor Of Michigan | Financial Audit

25:09It's similar to what President Trump has done on the national level, or it is investing in kids and newborn health that was a Senate priority. We got a lot of good stuff done, but there's always going to be additional work to do to shore up as we think long-term, especially as we've got so many public servants who are aging and are going to be relying on this. So how can I fix it overnight? I can't fix it overnight. Not overnight. I recognize that it's an important part of a long-term solution that we've got to continue to strive toward. Well, what is the steps to put in for the long-term solution, though, to fix the pension?

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26:28Well, first, as you said, we were in a stronger position than we were and a lot of that's been driven by the market. So we'll take it, right? But how do we ensure that we're putting more resources in? We've got our MIPSERS, which is our school employees retirement. That is gonna be coming offline in a few years because we're paying, we're getting up to full funding there. And so that is one additional mechanism that we'll have to put toward additional retirement dollars. So my concern when it comes to, you know, I know that's not a retirement plan for everyone in Michigan. It's, you know, the employees for the state.

27:06But when it comes to, especially on the federal level, entitlement programs that are put in, I'm a big fan, a lot of the concept of a lot of them. But one thing that we at least find within the last 100 years, if a big entitlement is put in, it's impossible to get rid of. And my fear with, you know, like a pension plan like this, right, is it's so attached. You know, people are going to be very patriotic about it who are, you know, state employees. But if it is not a sustainable system, it's going to be borderline impossible to tweak in a significant enough way to change it or even get rid of.

27:39Kind of like Social Security. It's not going to work for my generation. I'm going to get a substantially less amount of money. Yep. And that sucks. And it's going to be much more on the level of a literal Ponzi. It's not right now. Because right now, you know, money coming in, it's not fully dependent on money coming in. By the time I retire, it's going to be fully dependent on money coming in. So that's what makes me nervous about like the pension system. Well, I think to be clear, you know, people aren't getting pensions now, right? Like this is not a long-term issue that we're seeing continuous, you know, continued in terms of policy.

28:17Previous governors and legislators got into the pension system. I'm not. And I've been doing this for 25 years. So we're phasing out is what I'm saying. So as you think about like how is this sustainable over the long run, it's not going to be as big an issue for us in the long run because it's not available to people. That's good. Now, spending, 44 % goes to Health and Human Services, as we said. 31 % to education, transportation, 6.8%. And I know that was a big thing for you. I remember Fix the Damn Roads when I still lived there. Yes, sir. 4.3 % to the general government. Public and safety corrections, 3.81%.

28:54I assume most of public safety is locally funded. Revenue sharing,$1.67 billion. Tax credits,$1.46 billion. And I do have a little bit to talk about that as we continue to go through this. And then just some smaller ones in general. And then when it comes – and I would love to actually learn more about this. when it comes to the revenue and we got operational grants is$33 billion. General tax is$21 billion. Education,$16 billion. And transportation,$3.7 billion. Go into operating grants. I love to kind of learn a little bit more about that personally. You know, as I was sitting there thinking about how revenue is collected from the state.

29:33Operating grants where? I mean, do you have a specific department question? Well, as we're just pulling in like where the money is coming into the state. a big chunk operational grants. You know, maybe through everything I was pulling from the state's websites, it just wasn't specific enough. But I was like, what is this? I'm so curious. Maybe she could answer it for me. Yeah, I'm going to, I don't want to guess off the top of my head and be wrong. Yeah, fair enough. Government activity revenues. Totally good. It just, yeah, it could be a variety of things. and it's probably a lot of a variety of things.

30:13And we already talked about the net position, but when it comes to the school aid fund, that is a balance, but it is restricted for education of$4.45 billion. What's interesting about this, and I'd love to hear your perspective, is there's controversial things that are funding a big part of it. It got weed, you know, which is interesting. I was much more in favor of legalization many years ago, but so many studies have been coming out these last few years about just kind of overall effects on people. It's not like, you know, shaky dependency, but many things you do when you smoke every day are no longer as enjoyable when you stop smoking, you know, and just some overall health effects.

30:51I mean, if you're putting things in your lungs in general, it's usually not great for you. The state released its annual marijuana tax revenue totals yesterday. $270 million. Mainly because of the marijuana dollars, we've got about a million dollars of work planned just in road improvements. Outside the state capitol, supporters of the cannabis industry gathered to fight a proposed 24 % tax on marijuana. A 24 % wholesale tax on marijuana is set to begin in January, part of a long-term plan to fund road construction in the state budget. Over the last few years, the city's been able to take a much more aggressive approach in repairing them, filling in the potholes thanks to pot taxes.

31:29The$42 million in revenue comes from just from recreational sales and is being split among communities that allow these sales thanks to Michigan's Taxation of Marijuana Act. So there is that. That brings in$33.1 million. Then there's sports betting and iGame. Combined grocery seats,$2.86 to$2.9 billion. But the state taxes and fees is$466. There's a lot of dependency issues, especially on gambling and things like that. How do you feel that so much of school is being funded through blazing it up and going and blowing all that money? Yeah. I don't love that we see a lot of gaming funding in our schools, et cetera.

32:12But at the end of the day, people are engaging in the conduct and every state taxes it and operates budgets based on whatever taxes they collect. you know, our sales taxes also help fund our schools. Our sales taxes are lower than they are here in Texas. So to make up what the difference is, right? Like there are legislatures and governors past have selected different things to include in the school aid fund. It's not like I came into office and said, all right, this is how we're going to start doing it. But you got to recognize that sin taxes are always easiest taxes for legislators to take votes on.

32:50And that's generally why we see them continuing to fund things like schools and everything else in state government. Well, people would say and advocate for it that it hurts the lower income the most. There's not, yeah, that's not wrong. And yet I think that that's one piece of the education budget. But by and large, it's two cents out of our six cent sales tax goes to our schools too. Yeah. Okay. And then as we continue there, the school stabilization fund is$1.3 billion. So, I mean, the overall school funding tends to look relatively healthy, but there is a lot of kind of restricted spending.

33:31So 1.3 is stabilization and counter-cyclical of$477 million, but 4.46 is restricted into education, which I think is good. At least we're not going in and tapping it, right? Right. Well, we just created that in the last two years, the stabilization fund, because I know it's important that you've got like a savings fund in case some unforeseen thing happens. And who, God only knows, right? Like the last seven years, if they've taught me anything, it's that there could be some new thing around the bend that you're not anticipating. So we've got a rainy day fund or budget stabilization fund. For the rest of the budget, I wanted to create one for schools because I think it's really important that we've got additional resources.

34:07And that's what's next. Yeah. This is a good chart. What's that? This is a good chart. The Brainy J fund. Yeah. See? It's only going up. COVID took a little bit. Okay, fair enough. It was hard. Yeah, it was a little, I'll be honest. I was a little annoyed when I came home for Christmas two years in a row. Yeah. Like we had to eat outside, but we were in inside pods outside. It was a little weird. Then I came back here and then I could just do whatever. Well. That was a bit weird. I'll be honest. But remember what the temperature was. Here you can walk around outside all day. right? At home in Michigan in the winter, we're all inside breathing on each other.

34:46But if I was allowed to be inside outside, why couldn't I just be inside inside? Because you were inside outside with just your small group of people. And the servers and bussers. Listen, Caleb, none of us wants to go back and relive that. We were doing the best we could with very little or very bad information. I'll accept that. Tito's Handmade Vodka is America's favorite vodka for a reason. From the first legal distillery in Texas, Tito's is six times distilled till it's just right. And naturally gluten-free, making it a high-quality spirit that mixes with just about anything. From the smoothest martinis to the best Bloody Marys, Tito's is known for giving back, teaming up with nonprofits to serve its communities, and do good for dogs.

35:25Make your next cocktail with Tito's. Distilled and bottled by Fifth Generation Inc. Austin, Texas. 40 % alcohol by volume. Savor responsibly. I just remember being a little annoyed. I'm sure. And it was cold too. Like what the f*** are people doing? Why the, it's so cold. What are we doing? Like. Your blood got thin moving down south, didn't it? Well, now I hate the summers. So it's fair. You know, I do, I, they're, they're, yeah. I'd like to get a place up there again on Gull Lake at some point in retirement. I love Gull Lake. I used to think razor burns were just the cost of shaving. Like irritation and bumps are just how it works, right?

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36:37Check out Henson at the link below. It is one of those rare swaps that saves your skin and your wallet. Get 100 free blades with the purchase of a razor that is over two years worth. Let's get back to the show. Personal tax rate. There was a 2023 drop to 4.05%, but that was brought back up to 4.25%. And the Supreme Court denied an appeal on August 30th of last year. Were you more of a proponent of keeping it at 4.05 or moving it back to that 4.25? I was a proponent of following the law, which said I had to go back up to 4.25. Okay, if you were able to pass the law to bring it back down to four, would you?

37:13If someone could tell me how we're going to fund the things that we need to fund. Would you cut back on anything in order to fund that? I think we've made a lot of hard cuts recently. So before I would agree to take more important resources out of our budget, I'd want to know where people think they're coming from. Part of the hardship of being in this spot is at the end of the day, I got to make sure the book's balanced, right? And so it angers some people on my left. It angers some people on my right when I say, no, I don't want to look at that tax cut unless you've got a solution for me. And no, I'm not going to look at the spending unless you tell me where the money's coming from.

37:47I'm curious. If this was me in my obnoxious middle and this was the right and this is the left and let's say Bernie and Mondamia right here where are you? It depends on who you ask but I think You! I mean I think I This episode is brought to you by State Farm Listening to this podcast Smart Move Being financially savvy Smart Move Another Smart Move Having State Farm help you create a competitive price when you choose to bundle home and auto Bundling Just another way to save with a personal price plan Like a good neighbor State Farm is there. Prices are based on rating plans that vary by state.

38:29Coverage options are selected by the customer. Availability, amount of discounts and savings, and eligibility vary by state. I'm closer to the middle. When I still lived there and you're going through the primary, there was a dude with like, I think like a fake toupee. Oh, yeah. Kind of guy. I think he's in Congress now. But he was like the progressive, you know, far left running. And then you were the more center. He and Abdul El-Sayed, yes, were both way on the, yes. But then you won. Kind of irritated me at the beginning, to tell you the truth, because I'm proud to be a very, you know, progressive former legislator with like the receipts, right?

39:03Like I'd been in the legislature, took lots of votes. I had an agenda and two guys who never ran for anything ran and, you know, took all these positions and tried to make me look like I wasn't really a good Democrat. You know what? It irritated me at the beginning, but they actually probably did me a favor because I think more people were open to hearing me out. And that's probably how I won. But can you beat Gavin Newsom? In Michigan? Yeah. I can beat anyone in Michigan. Fair enough. Now, one of the big percentages that money does go to, if we're bringing taxes, you know, legally up from 4.5 to 4.25, there is the working families tax credit.

39:42And this is a redistribution type system. And I think a lot of people forget in this country, even compared to many Western countries, our income tax system is actually towards the top of the progressive world. A lot of the funding that comes in those Western European systems, social democracies that we like are usually value added taxes. That's what kind of pays the bills, right? And that tends to hurt everyone where we tend to be more progressive, where the top 1 % of this country pays, I believe it's like 30 % of all income taxes. The top 50 % pays 48 % or 98 % of all income taxes, the top 50 % of earners.

40:14So we have this where we move the taxes back up, but the state of Michigan is handing more money out. So there's a single worker with no kids making$15 ,000 and the federal government might get$600 to$700. There was a match of 6 % of Michigan, but now we're getting up to 30%. So the earned income tax credit, that's what that is. The working families tax credit is what we're calling it now, but it was really the earned income tax credit. And this has been around for decades. A lot of states offer the EITC to draw down federal dollars for people that are working full-time but can't make ends meet.

40:50You know, like a lot of people you have on your show, right? You've got people who are working$15 an hour jobs cannot, you know, cannot make it doing that. And so this incentivizes full-time work by giving people some additional tax relief. And disproportionately, it's like over 50 % supports people who are also raising kids. So it's like got that compounding benefit. Yeah, a single parent with two kids making$25 ,000 a year would roughly get$6 ,800. And now, you know, you get that 30 % match for Michigan. Now, technically, you know, this is a form of redistribution. It is. You know, maybe it's with a good heart.

41:29Do you think at the end of the day, it is overall beneficial to the economy in terms of the way we're looking for our economic structure to be created and managed? Well, I think government at the end of the day is really about making sure that every one of us can be safe, right? Like that's the most basic of government's job is to keep people safe. But also to create the conditions where every person can thrive, right? to create an economy that business people can have the workforce that they need. I mean, it's all about what are our priorities and how do we make sure that all boats rise, you know, a rising tide lifts all boats.

42:10I mean, I think that that's the philosophy that I've always looked at all of these policies with. And, you know, I think that it's important to have debate. I think it's important to understand some of the shortcomings of past policies and look to what others are doing and see, can we make it better? I mean, one of the things that we've done is really invest in our workforce, bringing down the cost of higher education, bringing down the cost of getting into a trade school. There was something called the Tennessee Reconnect. We, you know, borrowed that idea, made it our own, and we've got the Michigan Reconnect, which helps people 25 and up go back to school and additional credentials.

42:51So, you know, it's in all of our interest to make sure that those basics are addressed. So there's also one of the more controversial things for EV holders like myself. I have a Model X, and I love it, and they hate me for it, and it's great. You know, we have$160 a year for EVs since they're not paying, you know, gases. They're not getting gas tax. Is it fair, especially if you're more on the clean energy side, that they're punished for not having a gas vehicle? So how are you punished for not having a gas vehicle? $160 a year for EVs and$60 a year for PHEVs as well. Yeah. Okay. So that's for a registration fee.

43:34I mean, you're still using the roads, right? So it's a register. Is that about tolls? It's a register. We have. Tools look good here in Michigan and Texas. We're exploring tools. You know, it's a little more challenging because we don't have people cutting through Michigan like we do Ohio and Pennsylvania. So it's a little more challenging, but we're studying it. And I think, you know, we're going to explore whether or not, you know, there's a roadway or two or many that might make sense. Go to Canada, right? Cut through Michigan to go to Canada. Yeah, yeah. I don't know if tools are honestly good or not, but I just, you know, that's one of the controversial things that I kind of want to bring up.

44:09Controversial. It's not like people are like raising stakes. Okay. And then we'll move on. How did you get into this? Can I ask you a question? This? Yes. Why is this your passion? Did you have a bad experience or did you make a bad decision? I was poor as f***ing Michigan. Okay. But that was my choice, not Michigan's fault. Okay. And I was dumb. I started learning about personal finance a lot. And then after wanting to switch career fields from product management and wanted to work with a YouTuber. Someone kind of led me along for a couple months, didn't hire me, so I decided to start my own.

44:43It's the short version. All right. Yeah. What's the worst financial mistake you ever made? That I ever made? I mean, I maxed out a credit card at 18 immediately on a piano. I wanted to get a piano because I was going to be a music major. I have to get a nice piano,$2 ,500. Just, there you go. Or McDonald's every day, junior year of college. Also maxed out another$2 ,500 card. At McDonald's? That's why we got this. That's what we got this, baby. What's that? Damn. So we already talked about, you know, some of the spending incentives cut back from the Ford Marshall Plan. And then there is the Make It in Michigan where we spent a billion dollars on five EV plants.

45:21As of 2025 of this month, lawmakers killed that multi-billion subsidy program, right? Well, we are retooling a bit. So I'm working with the legislature to make sure we still have some good economic development tools. But, you know, you got to retool. You got to be nimble. We're competing against Ohio. We're competing against Japan. You know what I mean? Like we're competing against the world. So we've got to have the tools we need. And then pork. Government loves pork. We got$950 million there. So$234 million public infrastructure grants, like$50 million for downtown Pontiac, $20 million to the city of Wyoming, $20 million Detroit Greek Town Corridor, $5 million to Grand Rapids Children Museum,$122 million community enhancement projects, like 12 million statewide YMCAs,$5 million Detroit Fisher Building,$5 million Special Olympics.

46:15$5 million West Michigan Chamber. Do they not have their own money? Special Olympics? I mean, Special Olympics? Are you against Special Olympics? No, I just, not the biggest fan of taxes sometimes. I understand. Especially now that I have to write the check instead of it getting automatic. I get it. I get it. But, you know, this is not unique to Michigan. It's not great. And we are making changes to have more transparency in the process. Yes. To make sure that people who are promoting whatever project they want to get done have to do it so many days in advance so that the whole world can scrutinize it so that they can make their case that it's the right thing to do.

46:54And trust me, I qualify for the Special Olympics. I'm... 91 million for healthcare projects, 20 million to the Henry Ford House, 30 million second on Medical Center, 10 million for Detroit firefighter health support, and then dozens of smaller options like$900 ,000 to a Troy cricket field. That's lots of Indian immigration there. 200 ,000 to a new Buffalo disc and a 1.6 million Grand Rapids ballet from the States. Why can't Grand Rapids do that? It's a good question, Caleb. I'll have to tell you what legislator asked for that and you can ask them that question. That's just, you know, I love my home state.

47:30I know. Well, this doesn't make sense when you're looking at it from, you know, 40 ,000 feet. I get it. But don't we? I get it. Before we sign it? I understand. But at the same token, I got to get a budget to my desk and legislators come with their, you know, with their special projects and they negotiate them in. And I introduced a budget. It doesn't have any pork in it. All right? Yeah. When I introduced the budget. So these are not things that I ever was advocating for. But the legislature gets their shot at it, and this is often what you see. Detroit Downtown Boxing Gym,$2 million. Detroit Zoo,$7 million.

48:05We like the zoos. They're great. Zoos are exciting. Frankenmuth Youth Sports Complex,$10 million from the state. Potter Park Zoo in Lansing,$10 million. You know, this is the part of the show where I usually go through the spending, and it's like, we got some bullsh** to spend in there. We got some f**king taquitos. That's what we call them here. Taquitos? Some bullsh**. Yeah, you're stopping in the gas station, get yourself some bulls**t, some Special Olympics bulls**t. Now, we love the Special Olympics. We love the Special Olympics. I don't endorse anything you said of, yes. Yeah. Well, actually, and why it's kind of controversial is a lot of it is like no bid, negotiated lay, and sponsored disclosure or after pack passage.

48:45Yeah, I know. It's gross. I mean, I think that every dollar should be, if it's used in those ways, there should be a bidding process. or front-end transparency, which is what I think we're going to get done. There's also$3 million in, I think, this year for state-managed retirement plan marketplace for businesses under 100 employees. Like, I'm a small business under 100 employees. I save money on taxes implementing a retirement plan. Why does the state of Michigan need to come in and use taxpayer money to set up retirement plans for private businesses? It's a good question. I don't have a great answer for you other than I think the goal there is obviously to help the Small Business Association help their members get health care.

49:30And at least there, I mean, there are some things in court, like$2.5 million for the Lansing Lugnuts. Who goes to the Lugnuts? I don't know what a Lugnut is. A Lugnut, it's a part in your car, and the Lugnuts are the baseball team in Lansing. Hmm, interesting. Lots of e-bike incentives,$1 ,250 per bike,$1 ,250. dollars per bike. Electric bikes, e-bikes, could soon become more affordable under the new state budget. Republicans say the program is another example of wasteful spending. The vouchers could save buyers anywhere from$500 to just over$1 ,200. What was the public feedback about what kind of access there should be now for bikes?

50:09I would say it was really split. Some were very much in favor and in support of what the department was proposing. Some were very much against it. So it was expensive, of, you know, just people are paying a lot of money in taxes. And it's a small percentage overall, but it all stacks up, right? Right. And, you know, when we're thinking of like the pork that it goes to of almost a billion bucks, like that kind of, that starts to hurt. That kind of starts to hurt. This one was kind of, this is a pilot program put into law this year, $2.5 million going to grant program aimed at short-term lenders, payday loans, essentially.

50:43Government-funded payday loans. Now, I know you didn't advocate for this. I'm not saying that. You're right. I just as soon signed a budget that doesn't have any of those things in it, like the budget that I introduced in February. The state of Michigan outlook is actually pretty, in general, pretty good. 3.9 % growth income per capita this year projected going forward about 3.2%. And we do expect slower growth overall, economists are saying, but still growth in Michigan, which is good. You got up to the AA, AA plus. That's exciting credit rating. And Detroit's kind of, you know, getting a nice little rebound.

51:15You know, that little core area. We like that. If I would live anywhere, it would be Grand Rapids personally if I moved back. But 50 % of the year being overcast just can't do it. Ford Blue Cruise hands-free highway driving takes the work out of being behind the wheel, allowing you to relax and reconnect while also staying in control. Enjoy the drive in Blue Cruise-enabled vehicles like the F-150, Explorer, and Mustang Mach-E. Available feature on equipped vehicles. Terms apply. Does not replace safe driving. See Ford.com slash Blue Cruise for more details.

51:55There is, you know, potential tariff risk right now. Manufacturing is flat to down and uncertainty is definitely high. It is, the state is 49th in population growth. That is a long-term risk. You know, growing populations required for a thriving economy. And CEO sentiment is negative. and, you know, so those are kind of the concerns of the state of Michigan. Do you have any thoughts on those before we kind of go on into some of the other good news? Of course I do. I got thoughts on all of it, but, you know, I'll keep it succinct. I think, you know, there are a lot of good things happening. I think overwhelmingly, we just saw a new poll come out about kind of sentiment in Detroit.

52:34Some crazy number, like 78 % of people feel like we're on the right track. I don't know how long it's been since you've been to Detroit, but we hosted - I try to avoid it. Well, we hosted the draft last year. It was spectacular. I mean, there's so much good stuff going on. Detroit, Grand Rapids. Michigan's a great place. And yes, we've got some challenges. But I feel like we're making real headway. And it's an exciting time to be in Michigan. For at least half the year. Oh, all year round. Caleb, people are going to need places like Michigan. 20 % of the world's fresh surface water. That is true.

53:11You know, we don't have nearly the climate stuff that you guys have down here, for instance. Yeah, we got them droughts, droughts and flood. Or on the East Coast, you know. I mean, when we have an ice storm, you know, we got the equipment to take care of it. That is true. The only reason I'd move back to Michigan is if the world is collapsing. That would be the one thing. Oh, you're kidding me. I'm f***ing with you. I'm f***ing with you. My family's there. I love Michigan. That's it. You know, I got my Michigan stuff. I know. You got a Michigan gift here, too. Oh, thank you. Yes. Hi, Alyssa and Here Financial Audit.

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55:01So the personal finance being taught in school, I'd love to learn more about that. Yeah. Well, you know what? It is, there's no question in my mind that we're missing an important - Head shark. A shark, yes. For the hammer. You're the hammer. There are not sharks in Lake Michigan. And I love sharks, but I love Shark Week. You love Shark Week? Oh, God. You've got to, yes, there's a whole story there. Okay. Do you want to hear it? No. Okay. Google Gretchen Whitmer and Shark Week. It's not just sharks.

55:5818 plus terms apply. Shark Week is Shark Week. But anyway, yes. Hammerhead Shark because I love sharks. What else? I don't push you over the edge in 2028. Shark Week. I'm sorry. I'm just being a dick for no reason. Let's see. Oh, some coasters. I think. I'm feeling coasters. Look at that. The state of Michigan coaster. We love it. It is the Great Lakes State. There you go. And it is the Mitten State, Wisconsin. and f*** off. Like, what are they doing? Wisconsin, give me a break. Yeah, yeah. Tell them to f*** off. Fork off. Okay. I really appreciate it. I would love to learn more about personal finances being taught.

56:41There's something more. Oh, wait. Here's the... Ah. Oh, yeah, Natty. This is exciting, and I want to close the conversation on a happy note with that. Okay, we'll save it. Western Michigan, the national championship in college hockey last year. Thank you. Yes. They beat my alma mater, Michigan State, on the way. You're damn right. We split with Michigan this weekend. Yes. But personal finance being taught in school. So, you know, there's no question that everyone needs to know personal finance. I remember talking to my daughter when she was taking algebra and she's like, why do I need to know quadratics?

57:16I need to know how to pay my taxes and buy a house. And, you know, that sentiment, I think, is real, right? We've got to give people the tools they need to take care of themselves. And we had to do it before they head off to college and get that credit card when they're 18 years old and buy a stupid piano. I still have it. Thank you. Okay. Pianos aren't stupid. But to buy a piano at 18 was not smart. No, it was horrible. It was stupid. So, you know, we want to, giving people budgeting, having a rudimentary understanding of markets and how to save. You know, I'm always talking to my kids about maximize what you can.

57:52If your employer has some sort of a match, do the maximum. Like that's what my parents always taught me. And I did it my whole time. And I've been a public service, you know, my whole life. I've, you know, I'm not complaining about what I make, but I don't make a fortune. It's public service. That's part of it. As governor, it's$159 ,000 a year, you know, and certainly that's the highest I've ever been paid. So, you know. A new book, right? Yeah, I'm donating that money to charity. I can't make additional money while I'm governor. So anyway. Well played. But the point is like you max it out, you max it out.

58:25And we want people to understand that. You know, I think a lot of people get into trouble very quickly because they just don't have that root of memory. Even my husband, who was a dentist, he went to school, you know, K through 12, went to college four years, went to dental school four years. You do have really nice teeth. Thank you. I paid a lot of money. I knocked these suckers out when I was in eighth grade. But anyway, the point is, he graduated after all the schooling, didn't have any idea how to run a business. No one taught him. At Capella University, learning online doesn't mean learning alone.

58:58You'll get support from people who care about your success, like your enrollment specialist who gets to know you and the goals you'd like to achieve. You'll also get a designated academic coach who's with you throughout your entire program. Plus, career coaches are available to help you navigate your professional goals. A different future is closer than you think with Capella University. Learn more at capella.edu. from that. That's why all dentists killed themselves. Yeah. Oh, God. That's... It's true. I got dark fast. No, it's true, though. High suicide rate. But I had to, you know, I had to figure that out on the fly.

59:34I didn't get that rudimentary knowledge. So that's what we're trying to do. Give people, arm people with information. And this was required for graduation? Yes. Very good. Is there any way out of that? Because I know sometimes you can take like, this is a slightly different class, but it's kind of adjacent, so you don't have to take that class. I don't believe so. I think that this is And anyone who's in 10th grade now will have to have had it in order to graduate. Well, W for that, right? I mean, that's great. It's good. It's important. That's very important. Can you change one thing for me, though?

1:00:06What? This is so moronic. I don't understand because Texas does it, too. I think it's just Michigan and Texas, if I'm not mistaken. Tesla cannot be a license as a dealer in the normal sense with the Michigan Vehicle Franchise Act in Michigan. I know we want to protect the auto industry, but we got new type of auto industry coming. I don't know if they build in Michigan, but like we like let people just buy a car. And they have to be avoid being in-state new direct sales under dealership law. So the sale is orchestrated out of state and then the vehicle titled in Michigan afterwards. And Tesla cannot directly own a service or repair faculty in Michigan under the same corporate structure.

1:00:45That's stupid. It's really stupid. It would take an act of the legislature to get it done. So I can't do it unilaterally. I will say this though. There's no shortage of Teslas driving on Michigan roads. Yeah, but they have to get, it has to be an order out of state. We have to do this. And like, if I buy the Cybertruck, which - Who would do that? Well, I love my ex. Like, I'm just saying, I love my ex. Cybertruck, not for me. But if I were to buy them, they're made in Austin. It gets like shipped out of state, then back in. It's really silly. That's weird. It's just like, why is the government like picking?

1:01:18Well, I guess it's going like full old school. like Obama era, winners and losers. It's kind of hard. You're picking like an old school dealership. Why is it the law in Texas? That is weird. I don't know. But in Michigan too. We're supporting the big three. I think we can understand the history why that's the reality currently in Michigan. But maybe like, you know, get a little sucky sucky Elon and, you know, try to get him to build some stuff in Michigan. Hey man, Elon Musk wants to have a conversation about building in Michigan. I'm all ears. I'm a game. Yes. Come on in. Why would you go anywhere else?

1:01:5250 % overcast of the year. Depression. I can't do it. I cannot do it. Now, student loans in the country. You know, you'll probably be somewhere nearing the White House at some point. And right now, we got$1.63 trillion in student loans. That's crazy. In federal student loans alone, not to mention private. And we got$40 ,000 for the average borrower in 40 % dropout, by the way. I'm among that 40%. And that is 45 million people have federal student debt. And delinquency rates are rising at 7.73%. Now, my big question is, you know, the Trump administration through the BBB did enact some changes. And that kind of included the RAP plan.

1:02:39President Trump's new tax and spending law brings sweeping changes to the federal student loan system. Total student debt in America is at$1.8 trillion. It's roughly tripled in the last 17 years. A surge in past due student loans is sparking new concerns about the health of the U.S. economy. Currently have$22 ,000. $56 ,000. $90 ,000. $134 ,000. $108 ,137.48 in student loans. In one survey, 60 % of younger borrowers said they'd be in their 40s before their student loans are paid off. My daughter's going to a school she can't afford,$240 ,000 in debt. She's going to be a well-financed barista when this is over.

1:03:21And simplifying a lot of the complicated repayment processes. And that means payments are set at 1 % to 10%. But I've seen all over TikTok, a lot of people mostly on, well, the TikTok generation, like kind of far left. They're like, I'm not going to pay. Then they get their wages garnished. They're like, I can't afford to pay. And it's like 1 % of their income. What is your thoughts on this? Because I know you have a different political philosophy than the president of the United States. But that doesn't seem like a bad thing, but everyone on the left side of the political aisle was like, this is evil.

1:03:49So where we're sitting right now, there's a f***ing monster, and every once in a while I smell toast. Do you smell the toast? Yeah, it's a bakery. You're not having a stroke. So I make sure I wasn't having something going on. I'm sorry. I always forget to tell people. You know, when I went to college, way back in my day, when I went to college, the state picked up about 75 % of my tuition, and my family and I had to come up with the other 25%, right? And nowadays, it's the exact opposite. So we have shifted. We've, as a society, have said, it's not in all of our interests that we have an educated population.

1:04:23It's on you if you're going to pursue that. And so state picks up 25%, the individual picks up 75%, and they're putting more and more on credit cards, more and more taking out debt, right? And so this is a part of the equation that's gotten us here. Now, what is the solution? I think there's a lot of debate and I don't think that there's any solution on the horizon right now. But I guess what I would challenge you and ask you is, what do you think? I mean, you're someone that this, you know, you're closer to the generation we're talking about that's carrying all this debt. You've had your amount of debt that you acquired.

1:04:58What do you think the solution is? Because - Well, I think this potentially might have a part of the solution. One thing that many on the left are kind of angry about this, and trust me, bring a right-wing governor on and I'll critique their things too. you're just on the left wing. So obviously we're going to talk about things that are interesting. But they got upset that there are graduate borrowing limits, undergraduate borrowing limits. You talked about how 75 % used to be paid for by the state. Now it's 25 % and it's on the individual. Well, a lot of the times on the left, we've seen borrow an infinite amount of money to go to college, no caps.

1:05:31Why wouldn't the colleges just continue to raise how much it costs to go there if you can borrow whatever? If one goes up, the other is going to go up. So setting these caps should hopefully at least discourage, like, they have to have people in, you know, butts in classrooms, right? Yeah. They have to. And if people can't borrow a certain amount to go there, they won't be able to go. My hope is that would hopefully, you know, restrict the endless increase of administrators and everything and just bullshitting that colleges do. Now, unfortunately, foreign students, they pay cash. And that's an easy replacement.

1:06:06And another fear is people will just go borrow from the private student loans. So, but I think what was kind of confusing to me is like the solution, I haven't heard a solution on the left other than just keep raising what people can borrow forever. And of course the schools are always going to just say, well, can I have more money then? Because you can borrow more. Did you, when Biden supported, you know, had his writing off debt plan, did you, how did that hit you? Yeah. I wouldn't have qualified at that time. Actually, I think I may have due to my previous year tax return. I was qualified for like a smaller forgiveness and I'll take free money.

1:06:44You know, I'll take free money, but it wasn't a solution. It was nothing long-term. It helps a select group of people that have already gone to school, but it doesn't help anyone in the future because it didn't address the actual issue. Right. It was interesting to me, you know, as I talked to people in Michigan, you know, people who did take out debt, but had paid it off, who were so like, you know, salty about the fact that someone else who hadn't paid off their debt could get it written off. Yeah, I don't really. And it was kind of interesting. It's a hard challenge to figure out what the equitable solution is because we don't want people carrying debt for their whole lives.

1:07:21No, but letting people borrow infinite amount forever. It doesn't. In my, you know, I went to high school in Michigan. I went to a good high school. Yeah. but still every administrator and everything was borrow any amount to go to whatever school you want for whatever degree you want. We got people getting bullshit degrees that are not going to translate in the market and they're borrowing whatever it takes to go to the school that has the sports team they care about. I mean, this is not working. Yeah. Well, we should, we could have a whole conversation about sports and college. If you were president in a hypothetical world, you know, of course you will never run, but would you want the wealthy to pay more taxes?

1:07:59I mean, just for the purpose of paying taxes or for the purpose of strengthening our economy and our paying off our national debt for purpose of our homeland security and making sure that we've got defense. I think we've got a lot of important things that we have not been doing. But do you advocate for tax increases among... I'm not here as a candidate for a higher office and I'm not here to advocate for any new taxes. In Michigan, would you raise taxes? In Michigan, I mean, we did just raise taxes on sales of cannabis. But income taxes on individuals or, I know there's no capital gains taxes, but would you?

1:08:38I have not introduced an income tax in Michigan, no. And you wouldn't support it if it came across your desk? It ain't coming. Okay. I mean, I'm just telling you, I know you want to play the hype. I want to have a tax conversation. You want to play all the hypotheticals, but I'm grounded in reality. It ain't coming. Why am I going to take a position on something that's never going to happen? Okay. When you're president, would you propose higher taxes, income taxes? Well, I don't know. All that concerns me is, you know, California, you know, they've lost 1.6 % of personal tax income because people can move anywhere now.

1:09:15The UK itself, they've lost 16 ,500 millionaires going all across the world. They're losing tax revenue substantially, 10 % lost in taxes and capital gains taxes because they decided to close some loopholes and they're like, let's get people to pay the fair share. And now they're losing more tax revenue. So that's why I wanted to kind of hear your philosophy on this. Now we are wrapping up here. Can I ask a couple quick fires? Mr. Press Secretary? Sorry. A couple quick fires? Very cool. Quick fires. Very good. Michigan is a declining population state where southern states, you know, Texas gained 4.3, Florida 4.7, where states like New York, Michigan, California are leaving.

1:10:02Why do you think that's happening? Why is that transition happening in this country? I wouldn't say we're declining. We're not growing as fast. Yeah. I think that's an important distinction. The year that this metric was taken, which was 2020 to 2023, that had a 0.3 % loss. In our last census, we were up a percentage point. So whatever, I mean, it's not worth quibbling. It's just the point that, you know, we do have an older population in Michigan. And I think that's part of why our strategy around investing in people, places, and opportunities, you know, that bring good paying jobs is gonna continue to be really important.

1:10:35But I do have a head of chief growth officer for state in the country to do that. We wanna stay focused on how do we grow our population. It's important. And now in the state of Michigan, we are seeing Michigan Court Rule 6.106 provides that the default presumption is release on personal recognitions, which is no money bond, or on unsecure bond rather than cash bail. We are starting to see even a shooting that happened in Austin over the weekend was someone that has already had multiple violent offenses. We know that people, individuals with three to 10 violent crime convictions represent only 0.9 % of the total population, but account for almost 50 % of violent crime.

1:11:12And those who have been released from prison account for 70 % were rearrested within three years. Is these no-cash bail systems that, you know, we're tending to see places like New York, New Jersey, Illinois, DC, and we talked about Michigan, is that actually benefiting people or is it just, are we not keeping people safe like we want to? I think, you know, I'm proud of a lot of the the trajectories that we're on in Michigan. I think that when it comes to the no cash bail, what we see is a situation where people without resources pay a much bigger penalty than those that do. Just one more example of it is in the criminal justice realm.

1:11:49Our recidivism rate is really low in Michigan. I'm proud of that. But certainly, you know, there are always going to be examples of where someone is, you know, not a part of the general rule and is an egregious example. And I think you've just raised a couple. And then two final rapid fires. First one, a little more sad. Second one, very happy. Political extremism. It's scary. I think we're in for a violent couple of years. It's a non-governable city. People are exercising a lot of their rights to take it to the streets and get their voices heard. Political extremism was the number one issue in America.

1:12:31An alarming rise in political violence across the U.S., targeting both Democrats and Republicans. Nearly a third of Americans now believe political violence may be necessary to get the country back on track. A man broke into the Pennsylvania governor's mansion in April and set the dining room alight in an attempt to kill Governor Josh Shapiro and his family. President Donald Trump is announcing on True Social, Charlie Kirk is dead. The horror unfolded around nine last night. A group of people leaving a young diplomat's reception at the Capitol Jewish Museum in Washington when a gunman opened fire.

1:13:02Both diplomatic staff at the Israeli embassy were killed. Tonight it's being investigated as a targeted terror attack. Right now it's 6.04 happening today. Minnesotans will begin saying goodbye to a powerful political leader who was tragically assassinated in her own home. Stop the steel! Let's get that dark!

1:13:25I know people on Martha's Vineyard, on Martha's Vineyard, who if they had the opportunity to kill Donald Trump, probably would. They think he's Hitler. We just saw Charlie Kirk get shot. Me, you know, people are going to view me as more right-wing from this conversation because I pushed back on some left-wing policies. And if Governor Abbott from Texas was here, I'd push back on some right-wing policies. That's what happens. But people are going to see that and they've already called me fascist and Nazi online just because I say personal responsibility is okay with money. Whoa, scary. but people are labeling that and then killing them because they're fascists.

1:13:55Kill all fascists. Okay, maybe that makes sense. But if you label a normal person a fascist, you kill them. What do you think is going on with political extremism right now? And how would you solve it? I think it's really dangerous when we have leaders who want to fan the flames of anger and violence. I think we'll continue to see it grow, which is why I take it so seriously, which is why whether I'm the target of it or one of my colleagues on either side of the aisle is or the president of the United States is. I speak out against it every single time. I don't make excuse for it. I do not accept it.

1:14:28No matter where it's coming from, it's not okay. And I think it'd be refreshing if everyone with a platform did that. And then final, hey, the poll came out today, NCAA hockey, the top three teams, Michigan State, Michigan, Western Michigan. We are the hockey state. That's right. We own this place. National champions last year, Western Michigan. I don't know. You're probably rooting for Michigan State, but I just want to share a little bit of hockey love here. I love it. Let's go, man. Yeah. Awesome. All right, future president of the United States, Governor Whitmer here. Thanks for joining us for this financial audit.

1:15:04I'd say, you know, Hammer Financial Score for the state of Michigan. Honestly, looks halfway decent. Couple pension concerns, couple of that overall net worth concern, but looking at about a six or a seven out of 10. So CalebHammer.com for that. Thank you, Governor. Thank you. And don't forget to join us for the Financial Audit Post Show, where we do an extra 20 minutes of this conversation with me and the team and the producers, and we break down this conversation and go into more tea. I'll see you there. Click that join button. Bye. Caleb, what's the one question you really wanted to ask, but you knew that you maybe couldn't ask?

1:15:36Oh, we didn't talk about hearing you say in front of the governor. Or gooning out of the gate. That was my favorite moment. Hammer Elite is the best YouTube membership on the platform, and I just upgraded it. three exclusive dedicated shows every single day, Monday through Friday. Join with the link in the pinned comment or description below. This is the best membership you'll ever join. That's a promise. Rinse takes your laundry and hand delivers it to your door, expertly cleaned and folded. So you could take the time once spent folding and sorting and waiting to finally pursue a whole new version of you.

1:16:12Like Tea Time U. Mmm. Or this Tea Time U. Or even this tea time you Said you hear about Dave Or even tea time tea time tea time you So update on Dave It's up to you We'll take the laundry Rinse, it's time to be great