GOP Claims Progress – More To Come

Governor Rick Snyder, Senate Majority Leader Randy Richardville (R-Monroe) and House Speaker Jase Bolger (R-Marshall) joined forces at a press conference Thursday to tout the newly-elected leaders’ accomplishments to date and to address recent tension between the Administration and the Legislature on budget and tax proposals.

Highlighting the Emergency Financial Manager reform, new funding for the Pure Michigan campaign, limitation on new ergonomic standards, repeal of the item pricing law, and new Michigan Natural Resources Trust Fund money, the Republican leaders, joined by Lt. Governor Brian Calley, also described the importance of the work that still lies ahead. Not trying to sidestep the topic of disagreements, the relationships they have forged to ultimately accomplish tasks were stressed over any differences in position.

The Senate Republican Caucus continues to develop additional alternatives to the Governor’s budget and tax proposals; the biggest sticking-point remains the Governor’s plan to eliminate the income tax exemption for public and private pensions. Late last week the Caucus released the majority of their alternative plan, which included increasing the Governor’s proposed 6 percent business tax to 6.75 percent and expanding the base to include not only C-corporations but also S-corps.

Business groups; however, have been steadfast in their support of the Governor’s original proposal. Representatives from the Michigan Chamber of Commerce, the Small Business Association of Michigan, the National Federation of Independent Business, the Michigan Association of Realtors, and the Michigan Auto Dealers Association met with Senator Richardville regarding the Caucus’s alternatives in what was described as a positive meeting that, more than anything, resulted in Sen. Richardville’s increased understanding of the organizations’ position in favor of the Governor’s plan.

Meanwhile, the House Tax Policy Committee continued hearings on the Governor’s proposal as the panel’s Chair, Representative Jud Gilbert (R-Algonac), expects changes to be made. Although a “yes” himself, many of Rep. Gilbert’s Republican colleagues in both the Senate and the House have indicated their current opposition specifically to the pension tax issue.

posted by PAA Online , Friday, April 1, 2011 10:40 AM
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Corrections Privatization Debated By Panel

Although the potential savings would not be realized in time to impact the fiscal year (FY) 2012 budget, a joint panel of the House and Senate Appropriations Subcommittees discussed the possible privatization of entire prisons.

The panel heard testimony from both proponents and opponents of privatization within the corrections systems. Proponents provided evidence of potential cost savings of as much as two-thirds, while opponents decried the move, claiming increased costs, lowered standards and the loss of jobs for union employees.

The Senate panel’s Chair, Senator John Proos (R-St. Joseph), reiterated the Legislature’s top priority of protecting public safety while urging colleagues to keep an open mind to potential cost-saving measures for the state’s largest department.

posted by PAA Online , 10:39 AM
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Dems Seek Constitutional Amendment To Protect SAF Money

Senate Democratic Leader Gretchen Whitmer (D-East Lansing) announced Democrat’s intentions to introduce a constitutional amendment to prevent the use of School Aid Fund (SAF) dollars for higher education and community colleges. The move by Democrats is in response to Governor Rick Snyder’s budget proposal, which includes using $452 per pupil from the SAF for higher education and $296 per pupil for community colleges.

The amendment would reportedly eliminate “higher education” from Article IX, Section 11 of the Michigan Constitution, which currently reads:

“There shall be a state school aid fund which shall be used exclusively for aid to school districts, higher education and school employees’ retirement systems, as provided by law.”

An amendment to the Constitution would require two-thirds approval by both chambers of the Legislature, a tall task given the significant Republican majorities in both the House and the Senate; however, a task Senator Whitmer claims to be on the road to surmounting as she described the support of two Republican Senators and two Republican Representatives.

Meanwhile, the Chair of the House Appropriations Subcommittee on K-12 school funding, Representative Bill Rogers (R-Brighton), stated that he is open to the Governor’s proposal to use SAF dollars for community colleges and higher education as an option given the budget deficit.

posted by PAA Online , 10:36 AM
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Item Pricing Repeal Signed

Now known as the “Shopping Reform and Modernization Act,” House Bill 4158 became Public Act 15 of 2011 Tuesday when Michigan Governor Rick Snyder signed the legislation. Flanked by the bill’s sponsor, Representative Lisa Posthumus Lyons (R-Alto), Lt. Governor Brian Calley, Senator Mike Kowall (R-White Lake), and leaders from the grocery and retail industries, Governor Snyder reflected on his personal history stocking shelves in the early 1970’s as he repealed the decades-old law.

The measure, which takes effect September 1, 2011, will require appropriate signage, electronic scanners, or other means to “clearly and reasonably convey the current price of the consumer item.” Retailers also remain required to reimburse customers for an overcharge, plus pay up to 10 times the difference for a limit of $5 per incident.

A $100,000 appropriation was included in the legislation to educate the public regarding the upcoming changes that proponents claim will save retailers and, ultimately, consumers, billions of dollars.

posted by PAA Online , 10:35 AM
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PAADVISORY BRIEFS

Knollenberg for Congress

As has long been expected, State Representative Marty Knollenberg (R-Troy) has announced that he will file the required paperwork with the Federal Elections Commission in pursuit of a run for the U.S. House. Although it is uncertain how the districts will appear after the Legislature re-draws the lines, Rep. Knollenberg’s current State House seat is in the 9^th U.S. House District, the seat once held by his father, former Rep. Joe Knollenberg, until his defeat by the incumbent U.S. Rep. Gary Peters (D-Bloomfield Township) in 2008.

State Police Post Closure Recommendation Receives Nod from Lawmakers

Three key lawmakers have voiced support for the recommended closure of 33 State Police Posts, as reported in last week’s PAAdvisory. Chair of the House Appropriations State Police Subcommittee, Representative Peter MacGregor (R-Rockford), Minority Vice Chair Rep. Richard LeBlanc (D-Westland), and Senate Appropriations Subcommittee Chair Senator Patrick Colbeck (R-Canton Township) all indicated that the recommendation reflects a financial reality and a change in how MSP currently operates.

Vanderbilt Casino Ordered Closed

A Federal Court issued an injunction Tuesday, ordering the closure of the Bay Mills Indian Community’s new casino in Vanderbilt. Judge Paul Maloney found the tribe to be operating the casino illegally, as casinos can only be operated on parcels legally added to a tribe’s previously held lands. Bay Mills has appealed the ruling to the U.S. Court of Appeals for the Sixth District.

Governor Signs/Defends Unemployment Insurance Legislation

Governor Snyder signed legislation Monday, providing an extension in benefits for Michigan’s currently unemployed while decreasing the number of weeks newly unemployed individuals will qualify after January 15, 2012. House Bill 4408, sponsored by Representative Jim Stamas (R-Midland) and now Public Act 14 of 2011, has since received national media attention, resulting in the Governor’s response that the measure was critical to ensure benefits did not end April 1^st.

posted by PAA Online , 10:34 AM
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