House Puts Final Touches On Budget Work – Passes Omnibus Bills

In a session day reminiscent of previous years, the House of Representatives completed work on their budget legislation Thursday by passing an omnibus bill that combines fiscal year 2012 spending for K-12, higher education and community colleges. House Bill 4325 passed 57 – 53 after a six-and-a-half hour session. Republican Representatives Hugh Crawford (R-Novi), Kurt Heise (R-Plymouth), Holly Hughes (R-Montague), Andrea LaFontaine (R-Richmond), Pat Somerville (R-New Boston) and Dale Zorn (R-Ida) joined Democrats in opposition to the legislation.

The House version of the budget cuts K-12 spending by 3.5 percent, a bit less than the 3.9 percent recommended by the Governor; however, sticks to Snyder’s plan of using nearly $1 billion in School Aid Fund resources for higher education and community colleges.

Speculation heading into session, which included visits from Lt. Governor Brian Calley, Budget Director John Nixon and Administration lobbyist Dick Posthumus, had the Republicans as many as 20 “yes” votes shy of passage. The potential for as much as $500 million in new revenue rumored to be coming from the May 16^th Consensus Revenue Estimating Conference made many lawmakers second-guess a tough vote that may not be necessary in the long run. The most significant change to the plan may have been the turning point in the GOP caucus’ efforts to secure the necessary votes. The amendment called for universities to lose 5 percent of their state funding if benefits are provided to unrelated “live-ins” of employees.

On Wednesday, the House rolled the other 13 budgets into one bill, HB 4326, and passed the nearly $40 billion spending plan on a 62 – 48 vote with only Republican Representative Kenneth Kurtz (R-Coldwater) joining the 47 Democrats in voting no. The budget includes the closure of the Florence Crane Correctional facility in Mr. Kurtz’s district.

Overall, the House GOP passed a plan that calls for approximately $250 million less than what Governor Snyder proposed in February. Democrats, united in their opposition, took exception to the fact that only one of the 112 amendments offered during the committee process was adopted – and it was then removed on the House floor. Republicans countered by claiming that the 112 amendments accounted for $2 billion in additional spending – an impractical approach to solving the state’s ongoing fiscal dilemma.

The measures will now move to the Senate where it is expected they will be rejected (just as the Senate versions will likely be rejected by the House) so that conference committees may be appointed to finalize the fiscal year 2012 budget – a budget Governor Snyder has asked for by May 31^st.

posted by PAA Online , Friday, May 6, 2011 11:12 AM
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Tax Package Referred To Reforms Committee

Senate Majority Leader Randy Richardville

In the most-watched bill referral of the legislative session – a procedure which rarely garners attention, Senate Majority Leader Randy Richardville (R-Monroe) sent the package of bills encompassing the tax restructuring proposal to the Senate Committee on Reforms, Restructuring and Reinventing. House Bills 4361, 4362, 4479, 4480, 4481, 4482, 4483 and 4484 narrowly passed the House of Representatives last week (56-53).

Assuming that the Committee’s two Democratic members, Minority Vice Chair Senator Coleman Young (D-Detroit) and Senator Rebekah Warren (D-Ann Arbor) are certain “no” votes, at least three of the four Republican Committee members will have to join Committee Chair Senator Mark Jansen (R-Gaines Township) in supporting the package for it to move to the Senate floor. Chairman Jansen has been a consistent supporter of the proposal. Remaining Republican Committee members are Senators Tom Casperson (R-Escanaba), Patrick Colbeck (R-Canton Township), Mike Kowall (R-White Lake Township) and Dave Robertson (R-Grand Blanc).

Richardville, House Speaker Jase Bolger (R-Marshall) and Governor Rick Snyder reached an agreement on the tax overhaul – and the Speaker has since delivered. The most significant portions of the plan call for the replacement of the much-maligned Michigan Business Tax (MBT) with a 6-percent corporate income tax on C-corporations and the elimination of nearly all individual income tax exemptions and credits – including the exemptions provided to those collecting public and private pensions (through a three-tiered system). It is the pension piece that has the Leader searching for votes.

The legislation could be discharged from the Committee to the full Senate if the votes are not secured at the Committee-level; however, that would do little to move toward the majority vote needed on the Senate floor. Hearings of the Senate panel have been scheduled for May 10^th and 11^th with a vote tentatively scheduled for the 12^th. Richardville is reportedly meeting with his caucus members, working to convince them the proposal is truly a fiscally conservative plan while other caucus members are evidently searching for alternatives to the estimated $300 million in revenue from the pension piece.

Labels: Randy Richardville

posted by PAA Online , 11:06 AM
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Detroit Public Schools Have New Boss

Roy S. Roberts, Detroit Public Schools EFM

Retired General Motors Executive Roy Roberts has been appointed Emergency Financial Manager for the Detroit Public Schools by Governor Rick Snyder. Roberts, who agreed to a $250,000 contract for one-year, will succeed outgoing EFM Robert Bobb whose contract expires in June.

Roberts had been working as the managing director of Reliant Equity Investor, a private-equity investment firm, since retiring from General Motors as Group Vice President of North American Vehicle Sales, Services and Marketing. Roberts was with GM for 23 years of his 40-year career in the auto industry.

Roberts has a long history of community involvement in Detroit – including the announcement of a $1 million gift to the Detroit Institute of Arts (DIA) by him and his wife, Maureen. The new EFM is inheriting the reins of a school district that was $327 million in the red last June.

Labels: Detroit EFM, Roy Roberts

posted by PAA Online , 11:05 AM
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Senate Banking Moves Mortgage Fraud Measures

If an individual convinces a financial institution that he or she has a legitimate title to a property, secures a mortgage and keeps the money – it is technically not illegal under current law. That may change with a package of legislation unanimously approved by the Senate Committee on Banking and Financial Institutions this week.

Prosecutors currently charge such individuals under other statutes, such as uttering and publishing; however, they claim these practices are not sufficient. The bi-partisan sponsored and supported package, Senate Bills 43, 44, 249, 250, 251, 252 and 253, make mortgage fraud a felony with significant fines and prison time.

Michigan currently ranks in the top 10 states for mortgage fraud. The package may see quick action on the Senate floor according to Committee Chair Senator Darwin Booher (R-Evart).

Labels: mortgage fraud

posted by PAA Online , 10:59 AM
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Welfare Lifetime Limit Moves

The House Committee on Families, Children and Seniors moved legislation this week placing a true 48-month limit on welfare benefits for able-bodies adults. House Bill 4409, sponsored by Representative Ken Horn (R-Frankenmuth) and HB 4410, sponsored by Representative Sharon Tyler (R-Niles), were moved to the House floor on a 7-1-1 vote. Democratic

Representative Marilyn Lane

(D-Fraser) joined the Committee’s Republicans in supporting the measure, while the Committee’s Democratic Vice Chair, Representative Dian Slavens (D-Canton) abstained.

Michigan currently has a 48-month cap; however, the list of possible exemption is significantly narrowed under the measures. Only those who are exempted from the Jobs, Education and Training (JET) Program or those who are the victim of domestic violence or pregnant will be exempted after the first year. A “good cause” provision exists for the first year.

Democratic members of the Committee offered several amendments, such as an effort to reduce the penalty for a second violation of the self-sufficiency plan and a proposal for further exemptions in high unemployment areas.

Rep. Lane

was successful in winning an amendment providing for a 90-day “pause” of the clock to determine if a person is a victim of domestic violence.

Labels: welfare lifetime limit

posted by PAA Online , 10:59 AM
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PAAdvisory Briefs

Snyder Recall Underway

On a 2 - 1 vote, the Washtenaw County Elections Commission approved the language for a recall effort of Governor Rick Snyder. The body stated the language, being put forward by the liberal activist group Michigan Citizens United, was clear enough for voters to understand why the recall is being sought. The group must now obtain 806,000 valid signatures for the measure to be on the November ballot.

SUTA Dumping Measure Heading to House

Senate Bill 12, legislation prohibiting the State from combining the Unemployment Insurance Agency (UIA) accounts of two business entities without a violation of the Unemployment Security Act, passed the Senate on a 26-12 party-line vote Tuesday. UIA, under current law, can combine accounts when an entity is found to be “SUTA Dumping,” the practice of transferring payroll to another entity with a lower UIA tax rate. The measure, sponsored by Senator Mark Jansen (R-Gaines Township), will now be addressed by the House Committee on Commerce.

House Overwhelmingly Approves Adoption Bills

A three-bill package designed to speed-up the approval of adoption in Michigan passed the House of Representatives on 109-1 votes. Representative Maureen Stapleton (D-Detroit) was the lone no-vote on all three measures. House Bills 4381, 4382 and 4383 serve to permit a representative designated by the Superintendent of the Michigan Children’s Institute to consent to adoptions.

NITC Bill to Wait

The Snyder Administration confirmed this week that legislation necessary to authorize the New International Trade Crossing (NITC) plan will not be introduced until work on the fiscal year 2012 budget and associated tax restructuring proposals have been completed. The proposed new span across the Detroit River between Detroit and Windsor, Ontario has received the support of major business organizations, every living Governor, and is considered a top infrastructure priority for the Canadian Government.

Full House Receives Fireworks Reform

House Bills 4293 and 4294, sponsored by Representative Harold Haugh (D-Roseville), were moved to the House floor by bi-partisan votes of 14-1 in the House Regulatory Reform Committee Wednesday. The measures permit the sale of consumer-grade fireworks in Michigan and provide a fee structure earmarked to the Bureau of Fire Safety.

Land Not Running for US Senate

Former Michigan Secretary of State Terri Lynn Land has announced that she will not seek the Republican Party’s nomination to take on incumbent US Senator Debbie Stabenow (D-Lansing) in 2012. With former US Representative Pete Hoekstra (R-Holland) also bowing out last month, some attention is now moving to Livonia Republican US Representative Thaddeus McCotter.

posted by PAA Online , 10:58 AM
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