A snowflake had not-yet fallen on Tuesday in anticipation of the predicted blizzard conditions for Tuesday night and Wednesday morning when Governor Rick Snyder activated the state’s Emergency Operations Center and both the State House and State Senate announced there would be no session Wednesday or Thursday.

The storm, which ultimately resulted in approximately one foot of snow, closed a handful of offices in addition to the House and Senate; however, didn’t keep many from working. Governor Snyder, who activated the state’s Emergency Operation Center to ensure the state’s prisons, hospitals and other essential facilities were properly prepared, stayed at the Lansing residence Tuesday night and reportedly began meetings as early as 7AM on Wednesday, while Lt. Governor Brian Calley told friends that he would be in budget meetings to ensure the February 17th goal for budget-release is met.

Stating that the 268-page comprehensive annual financial report (CAFR) issued by the State of Michigan is “not made for human consumption,” Michigan Governor Rick Snyder released a 21-page “citizens guide” to Michigan’s financial health during a presentation to nearly 400 people at the Business Leaders for Michigan Leadership Summit on Monday. Developed by the Anderson Economic Group (AEG), with input from the Citizens Research Council of Michigan, the Michigan Government Finance Officers Association and the Michigan Association of Certified Public Accountants, the guide graphically depicted many fiscal measurements such as the fall in the balance of the state’s “Rainy Day” or Budget Stabilization fund, now at around $2 Million – “about enough,” the Governor added, “to run the state for half an hour.”

The report was also met with a considerable quantity of controversy surrounding the claim that the average salary and benefit package for a state employee is more than double that of public sector employees. Although the Governor made sure to communicate that the specific measurement did not account for differences in educational level and other factors – and should be viewed in “macro” manner, others were quick to denounce the data. Numerous reports have been commissioned and released with large differences of opinion on the matter that is sure to find its way into the upcoming budget debate.

Prior to the Governor’s remarks, Snyder’s Budget Director John Nixon reported that the Administration will present a two-year budget on February 17th. The Legislature will only be asked to pass the 2012 fiscal year portion due to questions regarding constitutional issues; however, a fiscal year 2013 projection will be included.

In the wake of the Administration’s release of a discussion draft for replacing the Michigan Business Tax (MBT) with a 6-percent corporate income tax, many related discussions have begun surrounding potential revenue replacement measures and other details. In addition, both House Tax Policy Committee Chair Representative Jud Gilbert (R-Algonac) and Senate Finance Committee Chair Senator Jack Brandenburg (R-Harrison Township) have indicated that, so far, they like what they see.

One potential factor in the MBT-replacement debate is in regards to the fate of those tax credits to which the State has already committed. The Administration is evidently considering a plan that would honor credits such as the Michigan Economic Growth Authority (MEGA), renaissance zone and Brownfield development credits issues under current law.

Meanwhile, elimination of the personal property tax (PPT), an issue many were disappointed did not find its way into the Administration’s original proposal, is evidently still alive as Lt. Governor Brian Calley indicated the Governor’s recognition of the problems with the tax on companies’ investment in equipment and other capital.

In regard to the potential for an elimination of the Earned Income Tax Credit (EITC), proposed as a possible budget-balancing measure related to a business tax cut, the Michigan Catholic Conference, AARP, the Community Economic Development Association of Michigan and the Michigan League for Human Services have voiced their opposition. The EITC is a tax benefit for low and moderate-income working individuals and families.

Governor Rick Snyder continued to announce appointments to several boards, commissions and other positions:

Prima Civitas Grows, Adds Webster
The Prima Civitas Foundation will be expanding its scope of activity, changing its location and organizational leadership this Spring. Founded to link those seeking intellectual capital with those that have it, Prima Civitas will be moving to a location on Grand River Avenue in East Lansing under the leadership of New CEO and Chairman, Steve Webster, who will replace current leader and former Lansing Mayor David Hollister.

Rep. Daley’s Son, Thomas, Passes
The entire Capitol paused to mourn the passing of Thomas Daley, 23, the son of State Representative Kevin Daley (R-Lum), after a fatal accident on the family farm. Services are set for 11AM Saturday, February 5th at the Immaculate Conception Church (814 West Nepessing Street) in Lapeer. The family is reachable at 3387 Daley Road, Lum, Michigan 48412.

MRP Convention Held, Leaders Elected
The Michigan Republican Party (MRP) met in Grand Rapids last week at their convention and elected leadership for the next election cycle. Current MRP Finance Chair Bobby Schostak was, as expected, elected Chair. Sharon Wise will serve as Co-Chair. Additionally, after six years with the MRP, Executive Director Josh Venable will be leaving to assist Ambassador Ron Weiser as Co-Chair of the Republican National Committee Finance Committee while the former director of then AG Mike Cox’s gubernatorial campaign, Stu Sandler, will serve as transition director for Mr. Schostak.

Washington Firm Adds Hoekstra
Former US Congressman and gubernatorial hopeful Peter Hoekstra (R-Holland) joined the DC entity Dickstein Shapiro LLP as a senior advisor. Having served as Chairman and Ranking Member of the House Permanent Select Committee on Intelligence, Hoekstra will focus on national security, defense, foreign relations, and intelligence issues.

More People Moving
After working in communications capacities for multiple statewide campaigns and office-holders (e.g. former Governor Granholm, then-Speaker Andy Dillon’s gubernatorial campaign, etc.), T.J. Bucholz is joining the PR firm Lambert, Edwards & Associates (LE&A).The Michigan Association of Counties new Director of Legislative Affairs is Ben Bodkin, replacing Tom Hickson who will be joining the Michigan Catholic Conference as VP for Public Policy. Midland Chamber of Commerce Government Affairs Director Jason Greer will be the Michigan Chamber of Commerce’s new Small Business Advocate and Chamber Partnership Manager.