Senate Amends Welfare Cap

House bills 4409 and 4410 would end we benefits to approximately 12,000 families after a 48-month limit; however, the Senate amended the bill exempting those caring for disabled children or spouses, seniors, and the mentally or physically disabled. Prior to this legislation, the state’s 4-year welfare limit was only loosely enforced. The bills would take effect October 1^st.

The Senate rejected an amendment proffered by Sen. Bruce Caswell (R-Hillsdale) granting local DHS offices fifteen 60-day exemptions to the rule each year.

Senate Democrats expressed their outrage over the bill. Sen. Vincent Gregory (D-Southfield) commented that the bills “will result in families losing much needed assistance during the worst economic downturn in years.”

posted by PAA Online , Friday, July 15, 2011 11:01 AM
LINK DIRECTLY TO THIS ARTICLE

Senate Panels Hear Testimony On Health Insurance Exchange

Unless the Patient Protection and Affordable Care Act is repealed by Congress or struck down by the courts, Michigan will have no choice but to participate in mandatory healthcare insurance exchanges. The state can, however, craft its own exchange instead of using the federal government’s exchange.

Wednesday, the Senate Insurance and Health Policy committees heard testimony from business and labor groups, the Small Business Association of Michigan, and the Michigan Chamber of Commerce. All agreed that a state-run Health Exchange is a better option than the federal government’s model. The state is working against a January 2013 deadline upon which such an exchange must be established before the PPACA takes effect in 2014.

The exchange will become a clearing house for small business and non-profits having less than 100 employees. Senate Republicans expressed their dismay for having to even consider the plan. A 150-member workgroup, including diverse stakeholders, has been meeting for several months to consider implementation strategies including the establishment of a governing board with industry experts.

posted by PAA Online , 10:59 AM
LINK DIRECTLY TO THIS ARTICLE

Richardville Aims For More Effective Film Incentive

Senate Majority Leader Randy Richardville (R-Monroe) introduced legislation Wednesday which would retain the tax reimbursement for film production and personnel costs through 2015, starting with a 27 percent reimbursement for production costs and 30 percent for personnel costs, with amounts declining over that time.

Included in the bill is a bonus granted to Michigan-owned studios. The state currently provides grants from a $25 million pool to encourage the growth of Michigan’s film industry. Tax credits would amount to an additional $75 million, an amount Richardville finds acceptable, but cautioned that the fund’s performance should be monitored closely.

The decline from last year’s $111.8 million appropriation has been criticized by film officials who argue that it is not enough money to remain competitive with other states.

During an appearance on Michigan Public Radio Network Sen. Richardville said "I think we'd make a mistake to pull the plug completely, we can't throw the baby out with the bathwater." Richardville also stated that the incentive needs to target production companies and studios in Michigan, stating "We're not going to pay Hollywood actors millions of dollars to come here, wave to some people and leave."

posted by PAA Online , 10:58 AM
LINK DIRECTLY TO THIS ARTICLE

Governor Proposes Solution To Long-Term Employee Costs

The Snyder administration and lawmakers will continue informal talks on long-term employee retirement costs. The administration hinted that they wanted the Legislature to review HB 4701 and HB 4702 in June.

HB 4701 and HB 4702 would both make significant changes to the retirement health care benefits offered to state workers, as well as increase the amount of employee pension contributions. Many employees were hoping that the section of the bill requiring the state to refund the 3 percent of wages they have paid toward future health care costs was implemented, though many unionized workers have shown opposition to the rest of the bill, some bringing their objections to court. The verdict in that case is still forthcoming.

The Snyder administration has proposed providing a lump-sum payment to workers under the defined contribution plan, depending on how long they have worked for the state, but would otherwise stop offering retirement health care insurance to employees. The administration is seeking $145 million in total state employee concessions under the 2011-12 budget. It is unclear if the House Appropriations Committee will consider the bills yet this summer.

posted by PAA Online , 10:57 AM
LINK DIRECTLY TO THIS ARTICLE

PAAdvisory Briefs

State Revenues Up In June

According to figures released by the State Fiscal Agency, total state revenues increased by 1.8 percent from June 2010 to June 2011, netting $1.7 billion last month. During the 2010-2011 fiscal year, the state raised $11.955 billion, up 8.6 percent from the same time a year before. Income, gross income, and the Michigan Business Tax all saw increases. Taxes in decline were tobacco, real estate, and state education.

Durant Decision On Potential Senate Bid This Month

Clark Durant is currently consulting politicians and fundraising experts about a potential bid for the 2012 Republican U.S. Senate against incumbent U.S. Sen. Debbie Stabenow (D-Lansing). Already in the race are former Kent County Probate Judge Randy Hekman, activist Peter Konetchy, Oakland County Water Resources Commissioner John McCulloch, and Rob Steele who lost a bid for 15th U.S. House District in 2010 to John Dingell (D-Detroit). This would be Clark Durant's second U.S. Senate bid after losing the primary to Attorney General Bill Schuette in 1990.

Teacher Tenure Bill Presented To Governor

On Wednesday, the House of Representatives presented HB 4626 to Governor Snyder to be signed into law. It is part of a series of “tie-barred” bills which remove certain elements of teacher evaluation from collective bargaining, and remove seniority from consideration during workforce reductions.

Richardville Seeks Feb. 28 Presidential Primary

Senate Majority Leader Randy Richardville wants the Michigan Republican primary election to correspond with the Feb. 28 date of local elections, but is still seeking input from “Washington and other folks.” As it stands, the Feb 28^th date would currently conflict with RNC rules, potentially costing the state delegates, although a local committee has supported the idea; the final decision will be made at the August 13-14 meeting.

posted by PAA Online , 10:57 AM
LINK DIRECTLY TO THIS ARTICLE

This Week's Newsletter

Past Newsletters