Gov. Whitmer criticizes detailed income disclosures on officeholders' spouses

Lansing — Michigan Gov. Gretchen Whitmer stepped into a debate among Democratic lawmakers Thursday by criticizing the idea of requiring officeholders to file financial disclosures that include detailed information about their spouses' income and assets.

Whitmer's new remarks conflicted with past statements she's made calling for Michigan to use "the federal disclosure form." Generally, disclosures for federal lawmakers cover spouses with some exemptions if they have no knowledge of a spouse's assets or can't benefit from them.

After speaking at a Michigan Press Association convention in downtown Lansing, the Democratic governor indicated she would ultimately sign the bills that emerge from the Legislature. But she said there was a legitimate concern that information about spouses "will be held against female candidates for positions in a way that it won’t be held against male candidates for positions."

"I think that is something that raises some red flags for me," Whitmer said. "But if it’s a matter of their name and their occupation, you can Google and find that stuff so I don’t have a problem.”

Asked specifically if she will veto the transparency bills if they require detailed reporting on spouses, Whitmer then responded, "I am not going to make any veto threats right now. I am going to continue talking with the Legislature. But I think I’ve been pretty clear about what I think is important.”

Some Democrats have argued if the financial disclosure policy taking shape in the Legislature doesn't require detailed reporting on spouses, officeholders will be able to simply shift assets, connections and investments they want to hide to their husband or wife, rendering the screen for conflicts of interest useless.

The disagreement over how to treat spouses has become the key point of contention as Democrats who control the House and Senate rush to craft a financial disclosure plan before departing Lansing for the end of the year's session. Under a ballot proposal that voters overwhelmingly approved last year, the Legislature has until the end of 2023 to enact a law that requires them to publicly report information on their sources of income, assets, liabilities and business agreements.

The Legislature is expected to adjourn at some point in early November.

More:Treatment of spouses spurs divide in Michigan Democrats' transparency plan

Michigan has long been one of only two states in the country without some level of financial disclosure for lawmakers.

In the state Senate, Democrats and Republicans are backing a disclosure plan that requires lawmakers, the governor, the attorney general and the secretary of state to report their spouse's "occupation" and assets they jointly hold with their spouse. The Senate proposal reflects Whitmer's stance.

During a committee hearing Wednesday, Secretary of State Jocelyn Benson, a Democrat, endorsed the overall Senate legislation but labeled the provision on spouses "relatively ineffective."

"We should include not just the occupation but also employer and financial disclosure for spouses," Benson said. "The current language creates too many loopholes."

Then, on Wednesday, a group of 22 House Democrats — 39% of the caucus — introduced a competing financial disclosure plan, without the backing of House Speaker Joe Tate, D-Detroit.

The alternative plan was supported by House Ethics and Oversight Chairwoman Erin Byrnes, D-Dearborn, and Rep. Phil Skaggs, D-East Grand Rapids, who've led the House's handling of the financial disclosure topic.

Their bills would include detailed reporting on spouses' income, assets and investments.

“If there is a process where spousal assets are not divulged, then my assumption would be that every member who is married will simply proactively transfer their assets over to their spouse,” said Skaggs, whose wife, Kate Skaggs, is a partner in The WinMatt Group, a Lansing multi-client lobbying firm. “The voters didn’t ask for us to implement this constitutional amendment in a clever way that actually makes a mockery of it.”

House Democratic leadership introduced its own disclosures bills Thursday, mirroring the Senate's language on spouses. The main bill was sponsored by Appropriations Chairwoman Angela Witwer, D-Delta Township, who has faced a storm of criticism for her handling of her relationship with her former public relations firm, Edge Partnerships.

A Detroit News investigation in September revealed Witwer, a top ally of Tate, had openly maintained close ties with Edge Partnerships, which works for some of the state's largest trade associations, and used her position in a way that helped one prominent client get access to policymakers. The News subsequently found that Witwer drives a Cadillac SUV leased by Edge Partnerships, while the firm works for clients that seek appropriations from the Legislature. Witwer has said the vehicle was part of her structured buyout from the firm.

Just last month in Michigan, Rick Johnson, a former House speaker who became the chairman of the medical marijuana licensing board, was sentenced to federal prison for accepting bribes from marijuana lobbyists and businesses. Some of the bribes were funneled to Johnson through his wife, Jan Johnson, whom the lobbyists claimed to had hired as a bookkeeper.

As a candidate for governor in 2018, Whitmer released a "Sunshine Plan," which called for "candidates running for statewide office and the Michigan Legislature to submit the federal financial disclosure form."

"I will call for all department directors, appointees and key advisors to submit financial disclosures as well, because we owe it to Michiganders to be transparent and ethical in our decisionmaking," Whitmer's plan said.

She repeated that stance during an interview with The News in October 2022 before her reelection in November.

Whitmer's husband, Marc Mallory, retired from his Lansing dentistry practice in 2020.

cmauger@detroitnews.com