Snyder Tax Plan Introduced – First House Hearing Held

Two bills encompassing Governor Rick Snyder’s plan for restructuring Michigan’s tax system were introduced this week by House Tax Policy Committee Chairman Jud Gilbert (R-Algonac). House Bills 4361 and 4362 were the topic of a House Tax Policy Committee hearing this week – and will be at four subsequent meetings of the same panel scheduled for March 8, 9, 15 and 16.

Lt. Governor Brian Calley appeared before the Committee and stuck to the themes of “simple, fair and efficient” in his description of the Administration’s proposal, which would eliminate the Michigan Business Tax (MBT), implement a 6-percent corporate income tax on C-corporations and broaden the base of the individual income tax through the elimination of exemptions and deductions.

The controversial elimination of the income tax exemption for public and private pensions drew the most attention from the Lt. Governor’s remarks, stating that the current tax system unfairly favors nonworking retirees. Mr. Calley presented multiple, tangible examples of scenarios under the current tax system and the structure proposed by the Snyder Administration such as the retiree making $59,000 that has less tax liability than a working family (including two children) with $49,000 in income.

In related news, Senate Republicans are currently discussing alternatives to some of the funding mechanisms under the Snyder plan as a means to avoid the heat of the pension tax issue or the controversy of the earned income tax credit (EITC) elimination. Alternatives reportedly under consideration include increasing the 6-percent corporate income tax to 7-percent, and/or expanding the base of the tax to more than C-corporations only.

posted by PAA Online , Friday, March 4, 2011 12:29 PM
LINK DIRECTLY TO THIS ARTICLE

Partial-Birth Abortion Ban Passed By Senate Committee

Under the shadow of questions regarding Senate Majority Leader Randy Richardville’s (R-Monroe) alleged concerns about focusing on social issues, the Senate Judiciary Committee quickly passed Senate Bills 160 and 161 Tuesday. The measures would place a state-level ban on a procedure commonly known as partial-birth abortion – already banned under Federal law.

The measures would make the performance of the procedure a felony punishable by a fine of up to $50,000 and up to two years in prison. Those advocating for abortion rights seemed resigned to the fact that the bill would pass and may ultimately become law, given the current Federal ban.

posted by PAA Online , 12:27 PM
LINK DIRECTLY TO THIS ARTICLE

Project Labor Agreements Under Fire

Just one week after Republicans targeted prevailing wage laws and binding arbitration for public safety workers, the House Committee on Commerce took testimony Tuesday on House Bill 4287, legislation to eliminate the use of project labor agreements (PLAs) in any project being paid by taxpayer dollars.

PLAs are agreements between trade unions and construction management firms that, in nearly all instances, require union labor – a practice which, according to advocates, limits the number of firms that bid on said projects and raises costs.

Committee Chair Wayne Schmidt (R-Traverse City) did not indicate when a vote would be taken but promised further testimony in coming weeks.

Labels: PLA

posted by PAA Online , 12:26 PM
LINK DIRECTLY TO THIS ARTICLE

Emergency Financial Manager Reform Nears Passage

Again, while not quite in line with State Treasurer Andy Dillon’s hope for enactment by the end of February, the Senate Committee on Education took a step closer by passing House Bills 4214, 4216, 4217 and 4218, the final pieces of a legislative package to reform the statutes governing emergency financial managers (EFMs) for school districts and municipalities. The action means the House and Senate are now in agreement on the differences that had remained and the package could be bound for the Governor’s desk as soon as next week.

In addressing many of the controversial aspects of the package, including eliminating the measure allowing a private firm to serve as an EFM and altering the powers of an EFM in regard to asset sales (anything over $50,000 and the closure of a school building would now require approval by the State Treasurer), Republicans had hoped to obtain some Democratic support – a goal not-yet achieved.

Governor Rick Snyder’s budget recommendations include a $471 per-pupil funding cut to school districts as well as cuts to revenue sharing for counties and municipalities – a proposal that has many close to the issue agreeing that the recommendations, if adopted, could result in a drastic increase in the amount of local governmental units finding themselves under the control of an EFM.

Labels: EFM, emergency financial manager reform

posted by PAA Online , 12:25 PM
LINK DIRECTLY TO THIS ARTICLE

Civil Service Commission Battles Rage On

The same week that a constitutional amendment was introduced by Representative Marty Knollenberg (R-Troy) to abolish the Civil Service Commission (House Joint Resolution N), a Senate panel voted to reject the Commission’s ruling extending state employee benefits to non-married partners. According to the ruling, state employees could include live-in girlfriends or boyfriends and their children on health insurance plans as long as the couples (straight or gay) have lived together for at least a year.

Senate Concurrent Resolution (SCR) 9, sponsored by Senator Mark Jansen (R-Gaines Township) passed the Senate Reforms, Restructuring and Reinventing Committee on a party-line vote. The Governor and the State Employer, Jan Winters, both support the measure from a cost perspective – pegging estimates at $8 million.

The Michigan Attorney General and State Employer have determined the Commission’s ruling to be an increase in rate of compensation, which allows the Legislature 60 days to reject or reduce the increase; however, any action by the legislature requires a two-thirds vote in each chamber.

posted by PAA Online , 12:23 PM
LINK DIRECTLY TO THIS ARTICLE

Gubernatorial Appointments Continue

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

Verlie Ruffin appointed Children’s Ombudsman

Fire Fighter Training Council

Brian Blomstom, Mike Deprez, Tim James, Aileen Pettinger, David Purchase and Steve Richardson

Great Lakes Commission

Patricia Birkholz and Helen Taylor

Michigan Board of Osteopathic Medicine and Surgery

Drs. Peter McAndrews, Susan Sevensma, Dennis Dorbitt, William Cunningham and Charles Kelly

Michigan Board of Social Work

Pamela Manela and Eleanor Blum

Michigan Commission for the Blind

Larry Posont and Lydia Schuck

Michigan Commission on Law Enforcement Standards

Mike Wendling, James Bosscher, Ronald Bretz, Doreen Olko and Richard Weiler

Michigan Domestic Violence Prevention and Treatment Board

Jeffrie Cape, Jim Fink and Chris Marie Sullivan

Michigan Economic Growth Authority Board

State Treasurer Andy Dillon, Department of Licensing and Regulatory Affairs (LARA) Director Steven Hilfinger, Michigan Economic Development Corporation President & CEO Michael Finney and State Budget Director John Nixon.

Natural Resources Trust Fund Board

Samuel Cummings and Rodney Stokes

posted by PAA Online , 12:21 PM
LINK DIRECTLY TO THIS ARTICLE

PAAdvisory Briefs

New Press Secretary for Richardville

Senate Majority Leader Randy Richardville (R-Monroe) announced that longtime Senate Republican staff member Amber McCann will be replacing Matt Marsden as Senate GOP spokesperson and press secretary. Marsden, who will remain on Richardville’s staff in an undetermined role, was replaced after a public clash and exchange of barbs with Senator Rick Jones (R-Grand Ledge) over the Senate Judiciary Committee’s hearing on partial-birth abortion bills.

NITC Included in MDOT Budget Calculations

Governor Rick Snyder’s Department of Transportation Budget recommendation for fiscal year 2012 would only be balanced if the Legislature enables the New International Trade Crossing (NITC – formerly DRIC), resulting in the use of $550 million in Canadian money and hundreds of millions in federal match. MDOT Director Kirk Steudle presented to the Senate Appropriations Committee Wednesday afternoon.

Landfill Restriction Reform Tabled

House Energy & Technology Committee Chair Representative Kenneth Horn (R-Frankenmuth) announced that he would be creating a working group on House Bills 4265 and 4266, legislation that would permit landfills to again take yard waste. Advocates for the reform claim adding yard waste back to landfills would increase the amount of methane gas used to produce electricity while opponents claim the measure would endanger composting facilities across the state.

Chief Justice Calls for Elimination of Bench Positions

Michigan Supreme Court Chief Justice Robert Young, Jr. told the House Appropriations Judiciary Subcommittee that the time has come to support the findings of the Judicial Resources Report, which has called for the elimination of judge positions for multiple years. Governor Rick Snyder’s budget recommendations include the elimination of six trial court judgeships for the 2012 fiscal year.

AG Appointments Made

Michigan Attorney General Bill Schuette announced the appointment of Warner Norcorss & Judd attorney John Bursch as Solicitor General and former Solicitor General Eric Restuccia as Deputy Solicitor General.

Former Lt. Governor Damman Passes at 78

Former Michigan Lt. Governor James Damman passed away at 78 year old in Texas. First elected to the House of Representatives in 1970, Damman was selected as running mate to former Governor Milliken for the 1974 election when then Lt. Governor James Brickley stepped down to become President of Eastern Michigan University.

posted by PAA Online , 12:21 PM
LINK DIRECTLY TO THIS ARTICLE

This Week's Newsletter

Past Newsletters