Budget: Done and Done

When Michigan Governor Rick Snyder first set the May 31^st goal of completing the fiscal year (FY) 2012 budget, many Lansing insiders, and even veteran lawmakers, reacted with what can best be described as a “yeah…right.” Without a single all-night session, and five full days ahead of the May 31^st deadline, the Legislature did just that – completed work on the FY 2012 budget Thursday.

The Governor was flanked by legislative leaders and officials from his administration at a mid-day press conference praising the remarkably early completion of the budget debate. The budget was passed in the form of two omnibus bills, House Bill 4325 and House Bill 4526, reflecting the contents of all 16 budget bills agreed-to by conference committees.

House Bill 4325, the education portion of the budget, passed the House of Representatives on a vote of 59-50 with four Republicans joining all Democrats in voting no. The Republican no-votes were Representatives Kurt Heise (R-Plymouth), Holly Hughes (R-Montague), Paul Muxlow (R-Brown City) and Pat Somerville (R-New Boston). Representative Harold Haugh (D-Roseville) remains at home recovering from surgery.

The $12.7 billion budget moved through the Senate, also with room to spare – securing passage on a 21-17 vote. Senators Bruce Caswell (R-Hillsdale), Goeff Hansen (R-Hart), Rick Jones (R-Grand Ledge), Mike Nofs (R-Battle Creek) and Tory Rocca (R-Sterling Heights) voted no with all 12 Democrats. In another sign of unity, the vote for immediate effect passed 26-12 with all Republicans voting yes amidst considerable pressure not to do so.

House Bill 4526, the $8.3 billion, 649-page general fund budget, received only one no-vote among Republicans in the House – that of Representative Thomas Hooker (R-Byron Center). The measure, representing a $32.4 million cut from the FY 2011 budget, passed the Senate 23-15. Senators Caswell, Nofs and Rocca voted no.

posted by PAA Online , Friday, May 27, 2011 10:08 AM
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Governor Signs New Tax Structure Into Law

Governor Snyder put his pen to an eight-bill package Wednesday, and in so doing, delivered on his campaign promise of eliminating the Michigan Business Tax (MBT) with a 6-percent corporate income tax. The Governor signed House Bill 4361, 4362, 4479, 4480, 4481, 4482, 4483 and 4484.

Surprising some with the relatively low-key signing, when many expected a significant event on the Grand Hotel Porch, for example, Governor Snyder signed the legislation in the Romney Building’s press auditorium. He was joined by Lt. Gov. Brian Calley, Senate Majority Leader Randy Richardville (R-Monroe), House Speaker Jase Bolger (R-Marshall) and other legislative leaders including House Tax Policy Committee Chair Representative Jud Gilbert (R-Algonac), the sponsor of the legislation.

The package of Public Acts, which are the topic of many discussions regarding potential “clean-up” legislation, serve to cut Michigan taxes on business by $1.73 billion while flattening the base of the income tax through exemption and credit elimination to the tune of $1.48 billion.

posted by PAA Online , 10:07 AM
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House Panel Passes Detroit Tax Bills

Two bills characterized as technical changes were passed by the House Committee on Tax Policy Wednesday, with the majority of the yes votes coming from the panel’s Democratic members.

Committee Chair Representative Jud Gilbert (R-Algonac) and Representative John Walsh (R-Livonia) joined Democrats in approving the two measures, House Bill 4623 and 4624. The legislation lowers the population requirement for municipalities to levy taxes from 750,000 to 600,000.

Proponents argue the changes are necessary to allow the City of Detroit to continue levying its 2.5-percent income tax and 5-percent utility tax, given the City’s drop in population to below 750,000 in the 2010 US Census.

The support shown by Republican leaders in the Legislature has been described as a potential trade for assistance on procedural matters (namely, immediate effect votes) in both the House and the Senate. Further, it has also been rumored that the changes may be used as leverage by the Snyder Administration in obtaining necessary votes for the New International Trade Crossing (NITC). Legislation regarding the proposed span from Detroit to Windsor is tentatively scheduled for introduction s

posted by PAA Online , 10:06 AM
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Education “Best Practices” Unveiled

The Snyder Administration and Republican legislative leaders previously announced a plan to soften the hit to school districts in the FY 2012 budget by setting aside $154 million for districts to obtain (in the form of an additional $100 per pupil) if the district delivers on four out of five best practices. Those five criteria were revealed during the hearing on the conference report on the K-12 budget by the House-Senate conference committee Tuesday. They are:

1.) Develop a public “dashboard” of performance measurements for the district, including graduation and drop-out rates.

2.) Health insurance policies held by the school district

3.) Minimum 10% employee contribution for health insurance premiums

4.) Obtain a competitive bid on a minimum of one non-instructional service contract of more than $50,000

5.) The Continuation or implementation of consolidation plans

The criteria regarding health insurance policies being held by the school districts has caused some immediate heartburn among Democratic lawmakers and, most obviously, the Michigan Education Association (MEA) whose health insurance spin-off MESSA (Michigan Education Special Services Association) provides insurance to an estimated 45-percent of the market.

In related news, the higher education budget was passed including boilerplate language that may be headed for veto by Governor Snyder. The issues, viewed by some as attempt by conservatives to forward a social agenda through the budget process, are:

Requiring Michigan’s public universities to issue reports on embryonic stem cell research
Urging the institutions not to offer benefits to domestic partner, and
Requiring the accommodation of students’ religious beliefs in counseling programs

posted by PAA Online , 10:05 AM
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PAAdvisory Briefs

Tourism Climbs

Michigan’s tourism industry grew from 2009 to 2010 – including the largest jump ever in out-of-state spending, marking the first time Michigan residents were out-spent by visitors. $17.2 billion rolled in during 2010, up from $15.1 billion in 2009.

Williams to Lead Detroit Chamber Advocacy

Detroit Regional Chamber of Commerce Government Relations Director Brad Williams will be the organization’s new Vice President of Government Relations in an announcement made earlier this week. The Calvin College graduate succeeds long-time Detroit Chamber VP Sarah Hubbard.

McCotter Contemplating Presidential Bid

US Representative Thaddeus McCotter (R-Livonia) has evidently not dismissed a run for President of the United States as quickly as he rejected the notion of running for United States Senate. Former State Senator and current McCotter staff member Bruce Patterson indicated that Congressman McCotter is considering a spot on the national stage and will make an announcement soon.

Pscholka Recall Language Approved

A three-member Berrien County election panel has approved the recall petition language put forward by Benton Harbor Commissioner Dennis Knowles in an attempt to recall Representative Al Pscholka (R-Stevensville). Petitions may not be accepted until Rep. Pscholka has served for six months, and the effort must obtain more than 6,600 valid signatures in the next 90 days.

posted by PAA Online , 10:04 AM
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