With an estimated television audience of more than 560,000 and an approval rating reported as high as 66-percent, Governor Rick Snyder delivered his first State of the State Address Wednesday night, sounding much like a C.E.O. delivering a business plan during the 44-minute speech. After departing from what had become the “norm” in Lansing by scheduling the speech quite early in the year and not providing the media with an advance copy of his remarks, Governor Snyder stuck with his theme of economic development priorities and urged the Legislature and citizens alike to participate in what he characterized as “solving problems.”

In his strongest statement of the evening, Snyder communicated a clear and enthusiastic message of support for the Detroit River International Crossing DRIC), ensuring listeners that the State would not incur any debt. Further, the Governor explained his recent brokering of a deal whereby $550 million from the Canadian government will be used as matching funds to assist in other road projects throughout Michigan.

Also clear among the Governor’s initiatives was his calling for the elimination of the state’s “item pricing” law and his reiterating of his campaign promise to eliminate the Michigan Business Tax (MBT) and replace it with a 6-percent corporate net income tax (see related story).

Other items included in Governor Snyder’s remarks were:

• Funding the Pure Michigan advertising campaign at $25 million each year
• Amending the law allowing for the appointment of emergency financial managers for municipalities and school districts by allowing said officials to be appointed earlier as signs of fiscal trouble become apparent
• Decentralization of the Michigan Economic Development Corporation (MEDC) through increased coordination with regional agencies
• Passing a 2-year budget by May 31st
• Emphasizing “economic gardening” by focusing efforts on existing Michigan businesses in addition to business attraction.

Finally, the Governor announced the release of the new Michigan Dashboard (www.michigan.gov/midashboard), a tool for the measurement of Michigan’s progress in specific statistics relative to other states.

The recurring theme of cooperation and bipartisanship continued through Wednesday’s activities as even the Democratic response, delivered by Senate Minority Leader Gretchen Whitmer (D-East Lansing), sought to ensure an understanding of the Party-leaders’ willingness to work with the new Governor.

The first two bills of the new Legislature, often symbolizing the top priorities for the respective legislative chambers, both tackle the Michigan Business Tax (MBT). House Bill (HB) 4001, introduced by Rep. Kurt Heise (R-Plymouth), eliminates the 21.99 percent surcharge on the MBT, while Senate Bill (SB) 1 represents a complete repeal of the MBT and the surcharge and was introduced by Sen. Dave Hildenbrand (R-Lowell).

With Governor Rick Snyder also calling for swift action to eliminate the MBT, it is very likely the Legislature will move the measures quickly; however, without a replacement enacted, the MBT’s elimination would bump the projected budget deficit numbers significantly. MBT revenue is approximately $2.2 billion – potentially putting the Fiscal Year (FY) 2012 deficit at nearly $4 billion.

Speaker of the House James “Jase” Bolger (R-Marshall) made several announcements regarding House committee assignments. Due to workload concerns and scheduling conflicts, the following changes were made to assignments previously published:

• Rep. Maureen Stapleton (D-Detroit) is replacing Rep. Jimmy Womack (D-Detroit) on the House Natural Resources Committee
• Rep. Jon Bumstead (R-Newaygo) is replacing Rep. Bob Genetski (R-Saugatuck) on both the House K-12 Appropriations Subcommittee and House Education Appropriations Subcommittee.  Rep. Genetski is replacing Rep. Bumstead on the House Department of Community Health Appropriations Subcommittee
• Rep. Richard LeBlanc (D-Westland) is replacing Rep. Ellen Cogen Lipton (D-Huntington Woods) on the Appropriations Subcommittee on Transportation

Speaker Bolger also announced the composition of the constitutional and statutory committees (C = Chair, VC = Vice Chair, MVC = Minority Vice Chair; Democrats are italicized):

Capitol Committee
Rep. Wayne Schmidt (R-Traverse City) (C), Rep. Jim Stamas (R-Midland) (VC), Rep. Holly Hughes (R-Montague); Rep. Joan Bauer (D-Lansing) (MVC), Rep. Thomas Stallworth (D-Detroit)

House Fiscal Agency Governing Board
Rep. Chuck Moss (R-Birmingham) (C), Speaker Bolger (R-Marshall) (VC), Rep. Jim Stamas (R-Midland); Rep. Richard LeBlanc (D-Westland) (MVC), Rep. Rick Hammel (D-Mt. Morris Twp.), Rep. Kate Segal (D-Battle Creek)

Joint Committee on Administrative Rules
Rep. Rick Olson (R-Saline) (C), Rep. Bruce Rendon (VC), Rep. Ken Horn (R-Frankenmuth); Rep. Bob Constan (D-Dearborn Heights) (MVC), Rep. Barb Byrum (D-Onondaga)

Legislative Council
Speaker Bolger (R-Marshall) (C), Rep. Jim Stamas (R-Midland) (VC), Rep. John Walsh (R-Livonia), Rep. Chuck Moss (R-Birmingham); Rep. Mark Meadows (D-East Lansing) (MVC), Rep. Stacy Erwin Oakes (D-Saginaw)

Finally, the Speaker announced the development of three subcommittees of Stand Committees:

Agriculture Committee Subcommittee on Agricultural Processing
Rep. Cindy Denby (R-Handy Township) (C), Rep. Joel Johnson (R-Clare), Rep. Bruce Rendon (R-Lake City); Rep. Charles Brunner (D-Bay City), Rep. Marcia Hovey-Wright (D-Muskegon)

Commerce Committee Subcommittee on Economic Development and Trade
Rep. Sharon Tyler (R-Niles) (C), Rep. Ben Glardon (R-Owosso), Rep. Mike Shirkey (R-Clarklake); Rep. Jon Switalski (D-Warren), Rep. John Olumba (D-Detroit) 

Natural Resource Committee Subcommittee on Forestry and Mining
Rep. Matt Huuki (R-Atlantic Mine) (C), Rep. Peter Pettalia (R-Presque Isle), Rep. Harold Haugh (D-Roseville)

In addition to the seven appointments of department heads (Department of Agriculture Director Keith Creagh, Department of Community Health Olga Guerra Dazzo, Department of Environmental Quality Director Dan Wyant, Adjutant General/Department of Military and Veterans Affairs Director Gregory Vadnais, Department of Natural Resources Director Rodney Stokes, Michigan State Police Director Kriste Kibbey Etue and Treasurer Andy Dillon), Governor Snyder’s Administration has announced the following appointments:

• Former state Treasurer Doug Roberts to the State Tax Commission
• Richard Popp and Stephen Gulis Jr. to the Northern Michigan University Board
• John Madigan and James Richardson to the Natural Resource Commission
• David Hooker and John Kennedy to the Grand Valley State University Board of Control
• William Kanine and Patricia Maryland to the Central Michigan University Board of Control
• Robert Kennedy and Diane Hanson to the Agriculture Commission

Snyder Officials Receive Pay Raise
Many of Michigan Governor Rick Snyder’s top cabinet members will receive a pay increase relative to their counterparts under the previous administration, according to documents released by the Snyder team. Department of Technology, Management and Budget Director John Nixon and Michigan Economic Development Corporation (MEDC) President & CEO Michael Finney will be the highest paid at $250,000 annually.

Consensus Revenue Estimating Conference (CREC) Says Budget Hole at $1.8B
Although State revenues are rising, because of an increase in the Medicaid budget, the projected budget deficit for the 2012 Fiscal Year (FY) remains at $1.8 Billion. Individual income tax, sales tax and Michigan Business Tax (MBT) revenues are expected to increase, placing the General Fund projections at $7.227 billion for FY 2011 and $7.294 billion for FY 2012.

Benson Out for MDP Chair – Anuzis 2nd in RNC Chair Race
After speculation and urging by some party faithful, former Democratic Party nominee for Secretary of State Jocelyn Benson announced she will not seek the position of Chair of the Michigan Democratic Party (MDP) at the Party’s February convention in Detroit. In other party leadership news, Wisconsin Republican Party Chair Reince Priebus became the new Chair of the Republican National Committee (RNC) over Michigan Republican Committeeman Saul Anuzis. This was Anuzis’ second attempt at the position, finishing third in 2008 to outgoing Chair Michael Steele.

Wayne State University President Named
The Wayne State University Board of Governors announced that interim President Allan Gilmour will take the position permanently following a unanimous vote by the Board. Former President Jay Noren resigned in August of 2010.

Hoisington Named Top Lobbyist
In the recent edition of Inside Michigan Politics, the results of the Most Effective Lobbyist survey conducted every five-years were announced, naming Public Affairs Associates President Tom Hoisington as the top overall lobbyist and multi-client lobbyist. Additionally, Bill Wortz and Becky Bechler were recognized among the top 20 professional lobbyists. And finally for the 24th year Public Affairs Associates, Inc. was rated one of the most effective lobbying firms in our state. Thank you to all who participated in the survey and to our clients who make it possible for everyone at PAA to do what we do!