Snyder Tax Plan Becomes Reality – Passes Senate

With a final concurrence by the House of Representatives following the Senate’s vote, Michigan Governor Rick Snyder was able to claim victory on one of the major agenda items of administration (and previously a major platform item for his campaign) – eliminating the Michigan Business Tax (MBT) and replacing it with a 6-percent corporate income tax.

The S-5 Substitute for House Bill 4361 passed the Senate Thursday afternoon when Lt. Governor Brian Calley broke a 19-19 tie with his “yes” vote. All 12 Democratic Senators voted “no” and were joined by Senators Brandenburg (R-Harrison Township), Patrick Colbeck (R-Canton), Dave Hildenbrand (R-Lowell), Joe Hune (R-Hamburg), Rick Jones (R-Grand Ledge), Dave Robertson (R-Grand Blanc), and Tory Rocca (R-Sterling Heights).

The legislation first had to make its way out of the Senate Committee on Reforms, Restructuring and Reinventing – a task that appeared to be doomed at many points this week as Capitol insiders predicted a discharge directly to the floor. In fact – the Committee, Chaired by Senator Mark Jansen (R-Gaines Township) adjourned Thursday morning having not taken a vote. Senator Colbeck reportedly had a change of heart and, although he ultimately was among those that voted against the measure on the floor, he added his “yes” in committee.

The Senate changes in the S-5 substitute restore an Earned Income Tax Credit (EITC) representing 6-percent of the Federal EITC and provide for a buy-back provision for those with existing Brownfield development credits at roughly 90-cents on the dollar. Additionally, the $1 appropriation place-holder was replaced with $1 million for the Department of Treasury’s implementation efforts.

Following the narrow vote on the Senate floor, the measure was returned to the House for concurrence where the rules were suspended and the House concurred in the Senate substitute 56-52. The package of legislation, also including HB 4362, HB 4479, HB 4480, HB 4481, HB 4482, HB 4483 and HB 4484, moves now to the Governor’s desk for signature.

posted by PAA Online , Friday, May 13, 2011 1:11 PM
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Conference Committees Appointed For Budget Bills

As expected, the House and Senate voted this week to not concur in each other’s budgets – setting the stage for the conference committee process to begin. Conference committee members were named and, following the completion of their work (set to begin next week), the conference reports will be combined into two omnibus budget bills as preferred by the House GOP caucus.

Please note: Senate Appropriations Committee Chair Roger Kahn (R-Saginaw) will be serving on all 16 of the conference committees and is therefore not listed below.

Agriculture and Rural Development -- Sen. Mike Green (R-Mayville), Sen. Hoon-Yung Hopgood (D-Taylor), Rep. Phil Potvin (R-Cadillac), Rep. Anthony Forlini (R-Harrison Twp.) and Rep. Jim Ananich (D-Flint)

Community Colleges -- Sen. Darwin Booher (R-Evart), Sen. Glenn Anderson (D-Westland), Rep. Ken Goike (R-Ray Twp.), Rep. Bob Genetski (R-Saugatuck) and Rep. Sean McCann (D-Kalamazoo)

Department of Community Health -- Sen. John Moolenaar (R-Midland), Sen. Vincent Gregory (D-Southfield), Rep. Matt Lori (R-Constantine), Rep. Peter MacGregor (R-Rockford) and Rep. Rashida Tlaib (D-Detroit)

Department of Corrections -- Sen. John Proos (R-St. Joseph), Sen. Glenn Anderson (D-Westland), Rep. Joe Haveman (R-Holland), Rep. Greg MacMaster (R-Kewadin) and Rep. Steve Lindberg (D-Marquette)

Department of Education -- Sen. Howard Walker (R-Traverse City), Sen. Hoon-Yung Hopgood (D-Taylor), Rep. Bill Rogers (R-Brighton), Rep. Earl Poleski (R-Jackson) and Rep. Joan Bauer (D-Lansing)

Department of Energy, Labor and Economic Growth -- Sen. Mark Jansen (R-Gaines Twp.), Sen. Bert Johnson (D-Detroit), Rep. Al Pscholka (R-Stevensville), Rep. Bill Rogers (R-Brighton) and Rep. Jim Ananich (D-Flint)

Department of Environmental Quality – Sen. Mike Green (R-Mayville), Sen. Hoon-Yung Hopgood (D-Taylor), Rep. Eileen Kowall (R-White Lake), Rep. Jon Bumstead (R-Newaygo) and Rep. Sean McCann (D-Kalamazoo)

General Government -- Sen. John Pappageorge (R-Troy), Sen. Bert Johnson (D-Detroit), Rep. Earl Poleski (R-Jackson), Rep. Matt Lori (R-Constantine) and Rep. Fred Durhal (D-Detroit)

Higher Education -- Sen. Tonya Schuitmaker (R-Lawton), Sen. Morris Hood III (D-Detroit), Rep. Bob Genetski (R-Saugatuck), Rep. Kevin Cotter (R-Mt. Pleasant) and Rep. Joan Bauer (D-Lansing)

Department of Human Services -- Sen. Bruce Caswell (R-Hillsdale), Sen. Vincent Gregory (D-Southfield), Rep. Dave Agema (R-Grandville), Rep. Greg MacMaster (R-Kewadin) and Rep. Shanelle Jackson (D-Detroit)

Judiciary -- Sen. John Proos (R-St. Joseph), Sen. Bert Johnson (D-Detroit), Rep. Kevin Cotter (R-Mt. Pleasant), Rep. Anthony Forlini (R-Harrison Twp.), and Rep. Rashida Tlaib (D-Detroit)

Department of Military and Veterans Affairs -- Sen. Patrick Colbeck (R-Canton), Sen. Vincent Gregory (D-Southfield), Rep. Peter MacGregor (R-Rockford), Rep. Nancy Jenkins (R-Clayton) and Rep. Richard LeBlanc (D-Westland)

Department of Natural Resources -- Sen. Mike Green (R-Mayville), Sen. Hoon-Yung Hopgood (D-Taylor), Rep. Jon Bumstead (R-Newaygo), Rep. Eileen Kowall (R-White Lake) and Rep. Steve Lindberg (D-Marquette)

School Aid Fund -- Sen. Howard Walker (R-Traverse City), Sen. Hoon-Yung Hopgood (D-Taylor), Rep. Bill Rogers (R-Brighton), Rep. Earl Poleski (R-Jackson) and Rep. Ellen Cogen Lipton (D-Huntington Woods)

Michigan State Police -- Sen. Patrick Colbeck (R-Canton), Sen. Vincent Gregory (D-Southfield), Rep. Peter MacGregor (R-Rockford), Rep. Nancy Jenkins (R-Clayton) and Rep. Richard LeBlanc (D-Westland)

Department of Transportation -- Sen. John Pappageorge (R-Troy), Sen. Glenn Anderson (D-Westland), Rep. Dave Agema (R-Grandville), Rep. Ken Goike (R-Ray Twp.) and Rep. Brandon Dillon (D-Grand Rapids)

posted by PAA Online , 1:10 PM
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Public Assistance 48-Month Limit Moves – But With No I.E.

House Bill (HB) 4409 and HB 4410, legislation to significantly lessen the quantity of exemptions from the state’s 48-month lifetime public assistance limit, passed the House of Representatives Thursday. The odd bi-partisan vote tally and lack thereof on the vote for immediate effect, was the eye-catching portion of the debate.

The legislation itself passed by an overwhelming 72 – 36 vote, with 10 Democratic members of the House joining their Republican colleagues in support of the reform. The 10 were Representatives Tim Bledsoe (D-Grosse Pointe), Lisa Brown (D-West Bloomfield), Charles Brunner (D-Bay City), Paul Clemente (D-Lincoln Park), Brandon Dillon (D-Grand Rapids),

Marilyn Lane

(D-Fraser), Richard LeBlanc (D-Westland), Tim Melton (D-Auburn Hills), Roy Schmidt (D-Grand Rapids), and Dian Slavens (D-Canton Township).

When it came time to grant the measures “immediate effect,” which requires a two-thirds vote by the House (74 votes), all of the 10 previously “yes”-voting Democrats voted “no.” The often procedural vote had been “gaveled” through by the Republican majority caucus on every matter so far this year – making it unclear why House Speaker Jase Bolger (R-Marshall) permitted the roll call vote on immediate effect in this instance.

posted by PAA Online , 1:09 PM
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Kindergarten Eligibilty Age Debate Ongoing

Although originally introduced to potentially impact the fiscal year 2012 budget under the Senate GOP plan, legislation to bump up the required date of birth for a potential kindergartener continues to be debated before the Senate Education Committee as a policy matter. Senate Bill (SB) 315 and SB 316, sponsored by Senator Darwin Booher (R-Evart), proposes to move the required birth date of a child for kindergarten eligibility from December 1^st to September 1^st.

The measures could save approximately $165 million, hence the proposal’s initial introduction as a one-time fix in the Senate GOP budget.

Only Connecticut and Vermont join Michigan in having a December 1^st cut-off.

Under a substitute being considered by the Committee, the date move would go into effect for the 2012-2013 school year, not the 2011-2012 school year. Also being considered is the ability for students to take a test for early eligibility if parents so-decide.

In response to concerns regarding class size during the transition, a presumed reduction in the first year and increase in the second, the legislations’ sponsor indicated a willingness to discuss a phase-in of the date change.

posted by PAA Online , 1:08 PM
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Michigan Ag Goes After CSC Ruling

Michigan Attorney General Bill Schuette has announced a lawsuit challenging the Civil Service Commission’s (CSC) order granting health care benefits to unrelated adults and their dependents living with state employees. The order, which takes effect October 1^st, permits unmarried state employees to include an unrelated adult “co-habitant” and the co-habitant’s dependents on state health care plans.

Schuette, in taking action parallel with earlier positions of Michigan Governor Rick Snyder, is filing the lawsuit based on the CSC’s alleged violation of their authority.

Republican House Speaker Jase Bolger (R-Marshall) and Senate Majority Leader Randy Richardville (R-Monroe) issued statements praising Schuette for his actions. Both Republican legislative leaders had previously and frequently communicated their opposition to the CSC ruling – going as far as attempting to overturn the ruling legislatively. The measure, SCR 9, obtained the necessary 2/3 majority in the State Senate; however, failed to do so in the House – ending the opportunity for legislative reversal.

posted by PAA Online , 1:08 PM
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PAAdvisory Briefs

Miller Joins House Dems

The House Democratic Caucus has announced the addition of Ben Miller as Director of Constituent Relations. Miller is the former executive Director for Coalition for Progress, a former Calhoun County Commissioner and previously worked on the staff of former Governor Jennifer Granholm and State Senator Don Koivisto.

High-speed Rail Grants Secured

$200 million in federal grants have been secured to improve track lines from Dearborn to Kalamazoo by 2014, as announced by Governor Snyder and US Transportation Secretary Ray LaHood. Michigan joined Illinois, Missouri, and Wisconsin in applying for the funding which was rejected by Florida earlier in the year.

Granholm Portrait Unveiled

Ferndale artist Charles Pompilius’ rendition of former Michigan Governor Jennifer Granholm was unveiled in the Capitol in a ceremony that included remarks by current Governor Rick Snyder, former Lt. Governor John Cherry and many others. The portrait includes a model of the Chevrolet Volt, a windmill and a state flag among other symbols.

posted by PAA Online , 1:07 PM
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