Welfare Reform Package Passed

House Bills 4409 and 4410 are headed to Governor Rick Snyder for approval after action by the House of Representatives Wednesday. The measures are part of the 2011-2012 fiscal year budget beginning October 1^st and received immediate effect by the Senate earlier in the day.

The legislation represents the end of cash assistance for thousands of Michigan residents by implementing a 48-month limit on able-bodied adults. Food stamps and assistance for health care and day care are still available for those removed from cash assistance. Also exempt from the reform are physically or mentally incapacitated individuals, senior citizens, victims of domestic violence and adults with disabled children.

Recipients will also be permitted to work more hours and still receive the cash assistance under the reform, which was sponsored by Representative Ken Horn (R-Frankenmuth) and Representative Sharon Tyler (R-Niles).

All 63 Republican House members voted in favor of the package, and were joined by 10 Democratic colleagues. Representatives Tim Bledsoe (D-Grosse Pointe), Lisa Brown (D-West Bloomfield), Charles Brunner (D-Bay City), Paul Clemente (D-Lincoln Park), George Darany (D-Dearborn), Marilyn Lane (D-Fraser), Richard LeBlanc (D-Westland), Lesia Liss (D-Warren), Roy Schmidt (D-Grand Rapids), and Dian Slavens (D-Canton Township) crossed over, while an additional three Democrats did not vote.

posted by PAA Online , Friday, August 26, 2011 10:38 AM
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80/20 Health Insurance Cost Reform Headed To Governor

After being approved by conference committee on Tuesday, Senate Bill 7 secured quick House and Senate approval Wednesday and is on its way to the desk of Governor Snyder for approval. The Senate approved the measure on a 25-13 vote with Senator Tom Casperson (R-Escanaba) joining all 12 Democrats in opposing the measure. The vote in the House of Representatives was 59-48 with 5 Republicans voting “no” and one Democratic, Representative Tim Melton (D-Auburn Hills), voting “yes.”

The legislation places limits on the amount a local unit of government, including school districts, can contribute for employee health insurance plans. Local units’ contributions are capped at $5,500 for an individual, $11,000 for a couple and $15,000 for a family.

Alternatively, if approved by a simple-majority vote of the local board (e.g. school board, county board of commissioners, city council, etc.) and agreed to by the mayor, county executive, superintendent or other empowered executive where appropriate, the local unit can opt to split the health insurance costs with employees at 80% - 20%. There is also a total opt-out provision for local units, allowing for neither alternative to be followed; however, the total opt-out requires a two-thirds majority vote of the local board every year.

The measure, once signed, will take effect on January 1^st of 2012; however, it will not affect labor contracts already in place until they expire or are otherwise modified. Senate Joint Resolution C, the measure necessary to extend the same reform to state and public university employees, again failed to obtain the 74 votes necessary in the House of Representatives.

posted by PAA Online , 10:37 AM
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Court Rules Marijuana Storefronts Illegal

Since Michigan voters approved the medical use of marijuana in 2008, dispensaries have been established all over the state; however, Wednesday’s Court of Appeals ruling that these shops are not authorized by the Michigan Medical Marijuana Act (MMMA) will likely result in most doors closing.

The unanimous, published ruling of the Court of Appeals in State of Michigan v. McQueen doing business as Compassionate Apothecary LLC overturned the decision of the Isabella County Circuit Court and prohibits the patient-to-patient sale of medical marijuana. The dispensary industry, including the Michigan Medical Marijuana Association, viewed the decision as a major set back to the industry and to those legitimate patients seeking relief to ailments; however, they saw little room in the decision to support maintaining the storefronts.

The three-member court, composed of a judge appointed by both former Governors John Engler and Jennifer Granholm as well as a non-appointed, elected member, pointed to the absence of the word “sale” in the MMMA in their unanimous decision, noting that the law authorizes the “delivery” and “transfer” of the substance only.

Michigan Attorney General Bill Schuette joined Isabella County Prosecutor Larry Burdick in the case and stated that he will be communicating with all county prosecutors regarding the decision and informing them that dispensaries in their counties may now be closed based on nuisance actions.

posted by PAA Online , 10:36 AM
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Options To Concessions Being Examined

Michigan Budget Director John Nixon, CPA, was on the receiving end of proposals from the state’s departments containing options for cost savings if agreements are unable to be reached with state worker unions regarding concessions. The 2011-2012 budget includes $265 million in overall reductions, with employee-related costs savings accounting for $145 million.

Announcements in regards to alternatives may be made as early as next week, as the new fiscal year begins October 1^st and one of the alternatives to the concessions being discussed is employee layoffs. A 30-day notice to state employees is required if layoffs are being used, bumping the timeline up to September 1^st.

In addition to layoffs, budget and department officials are reportedly examining the elimination of programs, cuts to travel and not filling current vacancies. A four-day work week, something Mr. Nixon utilized in Utah, is evidently not on the table; however, allowing some employees to work longer shifts and fewer overall days is being discussed.

posted by PAA Online , 10:35 AM
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PAAdvisory Briefs

Michigan Jobless Rate Creeps to 3^rd Highest

The U.S. Bureau of Labor Statistics has Michigan tied with South Carolina for 3^rd in highest unemployment rates in the month of July. Twenty-eight states and the District of Columbia saw increased jobless rates from June to July, both Michigan and South Carolina climbed to 10.9 percent, moving from 5^th to 3^rd highest.

Clarke to Change Congressional District Sought

U.S. Representative Hansen Clarke (D-Detroit) will not be seeking re-election in the 13^th U.S. House District where he currently serves; instead he will run in the new 14^th U.S. House District. Many had been speculating what the new lines would do to Mr. Clarke as well as U.S. Representative John Conyers (D-Detroit).

Obama Headed to Michigan

President Barack Obama will be in Michigan over the Labor Day weekend. The President will deliver a speech to the Metro Detroit Central Labor Council in Detroit on Monday, September 5^th.

School Board Election Date Change Measure Passes House

Legislation to change school board elections to the same time (even-years) as presidential and gubernatorial elections passed the House Wednesday. House Bills 4005 and 4006, sponsored by Representative Kurt Heise (R-Plymouth), were introduced as cost-saving measures and received the support of many conservative Democrats in addition to the chambers Republican members.

Scott Recall to Appear on November Ballot

Needing 9,604 valid signatures to have their recall efforts against State Representative Paul Scott (R-Grand Blanc) on the November ballot, the Citizens Against Government Overreach filed 12,133 signatures with the Secretary of State, 11,047 of which were deemed valid by the Department. Thursday, Mr. Scott appealed the matter to the Michigan Supreme Court.

posted by PAA Online , 10:34 AM
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