During this pandemic, many people have been making major sacrifices in the name of humanity. Doctors and nurses are working overtime and putting their lives in danger by treating patients without proper armor. Celebrities and other privileged members of the society are giving handsome donations so that the under privileged don’t starve to death or face any other brutality.
Another person to lead by example is Gov. Gretchen Whitmer. On Monday, she announced that she will be giving up 10% of her salary during the course of this pandemic. She also acknowledged that she predicts grave economic recession ahead, and for that, serious actions need to be taken today. She later requested her senior staff to make 5 percent cut in their salary.
“I’m going to lead by example. I know that times are tough and that we as a state are going to be confronting a tough budget as a result of the economic shutdown.” – said Gov. Gretchen Whitmer.
Source: Bridge Magazine
As of now, Gov. Whitmer’s salary is $159,300 per year. This figure was decided by the State Officers Compensation Commission. Thus, she might not be able to return her salary, but she can offer that 10 percent pay cut to the state or use it for donation.
The decision was made after the governor realized that the state was witnessing record-high unemployment rates. The decision was further imposed when the state revenue took a huge amount from the lower retail sales.
Basically, due to the stay-at-home orders, people are spending less money. As a counter effect, the sales tax amount is considerably less. Additionally, with such a large number of people filing for unemployment, the income tax rate is also speeding down. In March, Senate Fiscal Agency announced that there has been a severe decline in state revenue from gas tax, diesel tax, and casino revenue.