CREC Finds $429 Million For Coming Fiscal Year

The new targets and the budget deal described above were largely possible because of $428.7 million in “new” money. The Senate Fiscal Agency, House Fiscal Agency and the Department of Treasury agreed at Monday’s Consensus Revenue Estimating Conference (CREC) that the state will see a total of nearly $430 million more than expected by the end of the 2011 fiscal year - $296.3 million in General Fund revenues and $132.4 million in School Aid Fund Revenues.

The CREC also predicted a $498.6 million climb in revenue for the 2012 fiscal year - $356.9 million to the General Fund and $141.7 to the School Aid Fund. The yet-to-be signed new state business and individual tax structures; however, represent an estimated cost of $535.2 million.

A rise in Medicaid caseloads to more than 2 million will require increase spending in additional predictions, bumping the cost by $86.5 million in the current fiscal year and $55 million more for FY 2011.

posted by PAA Online , Friday, May 20, 2011 10:05 AM
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New Targets Reached – Budget Deal Announced

Flanked by Lt. Governor Brian Calley, Budget Director John Nixon and Senate and House appropriations committee leadership and members, Governor Rick Snyder, Senate Majority Leader Randy Richardville (R-Monroe) and Speaker of the House Jase Bolger (R-Marshall) announced a complete budget agreement for fiscal year 2011, well ahead of recent year’s timetables, and likely on target for the Governor’s May 31^st deadline.

The 18 appointed conference committees will now begin meeting on the 16 separate budgets from the Senate and the two omnibus budgets from the House – with the goal of passing all conference reports by the middle of next week.

The impact of the increase in available resources from Monday’s Consensus Revenue Estimating Conference (see related story) was felt in the K-12 numbers most significantly. The new agreement calls for an additional $310 per pupil - $150 million to districts that demonstrate “best practices,” and $160 million to aid districts in covering retirement liabilities.

Other highlights include:

· A reduction in the amount of state employee concessions from $180 million to $145 million.

· An additional $30 million to local units - $15 million for county revenue sharing and the other $15 million into the Economic Vitality Incentive grant program for municipalities.

· $25 million to the film industry

· $255 million into the Budget Stabilization Fund or “rainy day fund”

· A 4-percent cut to community colleges

· No prison closures

· No State Trooper reductions

posted by PAA Online , 10:05 AM
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House Committee Passes Teacher Tenure Reform

The House of Representatives Committee on Education reported a package of legislation Wednesday, providing for significant reform to the teacher tenure system. House Bills 4625, 4626, 4627 and 4628 now move to the full House for consideration.

The panel held four hearings on the package over an eight-day period, including considerable amounts of testimony – often heated – in opposition to the measures. The majority of the votes for passage of the measure were not straight party-line votes, with Representative Thomas Hooker (R-Byron Center) joining some Democrats in abstaining, while other Democrats voted “no.”

· House Bill 4625, sponsored by Representative Bill Rogers (R-Brighton), sets standards for achieving and retaining teacher tenure and revises associated procedures, increasing the necessary time to five years (from four) and requiring a teacher be rated as effective for a majority of that time.

· House Bill 4626, sponsored by the Committee’s Chairman, Representative Paul Scott (R-Grand Blanc), reinstates the “arbitrary and capricious” standard for teacher tenure hearings.

· House Bill 4627, sponsored by Representative Margaret O’Brien (R-Portage), eliminates the “last in, first out” or LIFO standard as a factor when teacher reductions are required – requiring “effectiveness” as the prevailing standard.

· House Bill 4628, sponsored by Representative Ken Yonker (R-Caledonia), makes parallel changes necessary in the Public Employment Relations Act (PERA).

Democrats attempted and failed at passing several amendments, from a substitute to remove essentially all substantive portions of each bill, to an amendment to apply the reform to charter schools.

posted by PAA Online , 10:04 AM
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80-20 Health Care Benefit Measure Passes Senate

Essentially all public employees will be required to pay 20 percent of their health care premiums beginning January 1, 2012 under legislation passed by the State Senate Wednesday. The legislation would affect employees of the State, cities, counties, townships, school districts, community colleges and charter schools.

Senate Bill 7, sponsored by Senator Mark Jansen (R-Gaines Township), passed the upper chamber 25-13, with Senator Tom Casperson (R-Escanaba) joining all twelve Senate Democrats in opposition. The measure now moves to the House of Representatives where it has been referred to the Committee on Oversight, Reform and Ethics. The Chairman of the House panel, Representative Tom McMillin (R-Rochester) has indicated his intention to address the measure soon. Additionally, House Speaker Jase Bolger (R-Marshall) has expressed his support for the reform.

Democrats were unsuccessful in their attempts at many amendments, including one by Senator Glenn Anderson (D-Westland), seeking to tie-bar the measure to House Bill 4081, legislation sponsored by Representative Dian Slavens (D-Canton) seeking to end the lifetime healthcare benefits for lawmakers.

A separate measure that requires the same of Michigan’s 15 public universities also passed – this time on a straight party-line vote of 26-12. SJR C seeks to amend the Michigan Constitution as the public universities are autonomous under the Constitution. The Senate vote secured the necessary 2/3 approval; however, the proposal has an uncertain future in the House as significant crossover votes by Democrats (11 members) is necessary to obtain a 2/3 majority.

posted by PAA Online , 10:04 AM
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PAAdvisory Briefs

GM Lands MEGA Tax Credit

General Motors (GM) will be on the receiving end of a $10 million tax credit as approved by the Michigan Economic Growth Authority (MEGA). The credit will go towards GM’s planned $130 million investment in a new global technology and data center in Warren.

Ann Flood Named OFIR Deputy

Executive Vice President and Chief Operating Officer of American Physicians Capital, Inc. (APCapital) Ann Flood was named Chief Deputy of the Office of Financial and Insurance Regulation (OFIR). Kevin Clinton, the new OFIR Commissioner, was formerly President & CEO of APCapital. Flood will manage the Insurance Monitoring Division, Health Plans Division, and the Office of the General Counsel.

DeBano to Lead Restaurant Association

Former Chief of Staff to then-Secretary of State Terri Lynn Land, Brian DeBano will become the President & CEO of the Michigan Restaurant Association effective June 6. Prior to service to the Department of State, DeBano spent five years on the staff of former Governor John Engler and several years as a staff member in the House of Representatives.

Engler/McCotter Not Running for US Senate – GOP Still Searching

Both former Michigan Governor John Engler and current US Representative Thaddeus McCotter (R-Livonia) have taken their names off the list of potential challengers to incumbent US Senator Debbie Stabenow (D-Lansing). Former US Representative Peter Hoekstra and former Michigan Secretary of State Terri Lynn Land previously announced their intentions not to run. A new name being circulated is Oakland County Water Resources Commissioner John McCulloch.

Campground Closures Delayed

The 23 planned state forest campgrounds slated for closure will be delayed until after the June 9 meeting of the Natural Resource Commission (NRC) according to Department of Natural Resources (DNR) Director Rodney Stokes. The order, reported earlier this Spring by PAAdvisory, included closing 23 of the 133 campgrounds; however, Stokes has delayed implementation of the order to further investigate potential leasing and management agreements.

EFM Statute At-Risk

Progressive organizations have reportedly joined forces in the hopes of securing the more than 160,000 signatures necessary to halt implementation of Michigan’s new Emergency Financial Manager (EFM) statute. Michigan Forward, Rainbow PUSH Coalition, the Grand Rapids Institute for Information Democracy, and perhaps NAACP chapters as well as select unions are hoping to secure 3,500 volunteers in 10 cities to collect the signatures and put the measure to a vote of the people on the November ballot.

posted by PAA Online , 10:03 AM
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