Potential Financial Surplus Appears As Books Close on 2010-2011

Although the final number will not be known until after the state’s audit is complete and the books are officially closed on fiscal year 2010-2011, both the House and Senate Fiscal Agencies reported estimates this week above the numbers from the May Revenue Estimating Conference.

The House Fiscal Agency’s numbers came out first, estimating revenue for 2010-2011 will run $285 million above the May forecast - $145 million in the School Aid Fund and $140 million in the General Fund. The Senate Fiscal Agency followed up with even higher estimates, $272.9 million in the School Aid Fund and $158.3 million in the General Fund for a total of roughly $431 million.

Many in Lansing are lining up to point out where the surplus funds should be directed while others are more interested in calling attention to yet existing liabilities. Senate Appropriations Committee Minority Vice Chair Glenn Anderson (D-Westland) has already begun stressing the importance of restoring funds to the K-12 per-pupil allowance – something Senate Appropriations Chair Roger Kahn (R-Saginaw) has called a “long shot.”

The Snyder Administration, while recognizing the positive news the potential surplus brings, stressed caution and pointed to the state’s ongoing unemployment debt, long-term pension liabilities and the Budget Stabilization or “rainy day” Fund.

posted by PAA Online , Friday, October 14, 2011 10:38 AM
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Bipartisan Credit Scoring Reform Package Passes House

After ending the last Senate Session with former Senator Martha Scott (D-Detroit) requesting leadership to “take up my bills” for the better part of four years with no action, the House of Representatives overwhelmingly passed a package of legislation Thursday providing for further consumer protections in the utilization of credit scores in setting insurance rates.

The four bill package, sponsored by Representatives Ben Glardon (R-Owosso), Lisa Howze (D-Detroit), Paul Opsommer (R-Dewitt), and Deb Shaughnessy (R-Charlotte), passed the House 103-5.

Contrary to the efforts of Ms. Scott and others, this package allows insurance companies to continue the utilization of credit scores in setting insurance rates; however, prohibits the credit scores from being used to deny or cancel coverage. Additionally, if an insurance company checks an individual’s credit while shopping for coverage, the action will not have an effect on the credit score.

Four Democratic House members, Representatives Lisa Brown (D-West Bloomfield), Phil Cavanaugh (D-Redford Township), David Nathan (D-Detroit), and Maureen Stapleton (D-Detroit) were joined by one Republican, Representative Tom McMillin (R-Rochester) in opposing the package.

posted by PAA Online , 10:38 AM
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Options Arise On N.I.T.C. Legislation

With hearings before the Senate Economic Development Committee on the legislation authorizing the New International Trade Crossing (NITC) concluding Wednesday, Senate Majority Leader Randy Richardville (R-Monroe) is debating options for moving the measures to the Senate Floor.

Reports have indicated that it is questionable whether the “yea” votes are there on the Senate panel, chaired by Senator Mike Kowall (R-White Lake Township). Senator Richardville has confirmed that other options have and continue to be considered, such as re-referring the measures to the Senate Government Operations Committee or discharging the legislation directly to the floor.

The Governor has made it clear that moving forward on the NITC initiative is a high priority for his Administration and would prefer to see positive action prior to his anticipated special message on infrastructure scheduled for the end of October.

In related news, House Speaker Jase Bolger (R-Marshall) has indicated that Senate Bills 410 and 411 will be referred to the House Transportation Committee upon receipt from the Senate.

posted by PAA Online , 10:37 AM
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Michigan No-Fault Insurance Changes Move To House Floor

The House Insurance Committee voted Thursday to send changes to Michigan’s no-fault insurance law to the full House of Representatives for consideration. While Michigan’s current law provides for unlimited lifetime medical coverage for expenses resulting from an auto accident, the legislation, House Bill 4936 sponsored by Committee Chair Representative Pete Lund (R-Shelby Township), allows individuals to choose insurance with $500,000, $1 million or $5 million in coverage.

The measure passed on a 9-7 vote after two weeks of very intense committee testimony, filling the hearing room and overflow rooms on multiple occasions. The issue has members from both sides of the aisle expressing concerns, and advocates in some cases crying foul.

One of the most contentious issues debated is the concern over transparency by the Michigan Catastrophic Claims Association (MCCA). The MCCA reimburses auto insurance companies for personal injury protection claims of more than $500,000 and would be on the verge of shutting down if it were a private entity, according to testimony from Office of Financial and Insurance Regulation (OFIR) Commissioner Kevin Clinton.

posted by PAA Online , 10:36 AM
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Scott Recall On Hold

Ingham County Circuit Court Judge Clinton Canady III ordered an injunction Thursday, at least temporarily halting recall efforts against State Representative Paul Scott (R-Grand Blanc). Judge Canady’s ruling stated that any votes that had been received should not be counted and that the recipients of any absentee ballots to-date should be notified that the recall election would not be moving forward and, therefore, should not vote at this time.

The Court of Appeals ruled last week that the Circuit Court was wrong not to issue the injunction when the matter was originally addressed, resulting in the new hearing and action.

posted by PAA Online , 10:36 AM
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PAAdvisory Briefs

Langley Named Head of Policy

Current Jackson County Assistant Prosecutor Peter Langley has been named Policy Director by Senate Majority Leader Randy Richardville (R-Monroe). Mr. Langley has previously worked for former Senators Alan Sanborn and Phil Hoffman.

Granholm Lands TV Gig

Former Michigan Governor Jennifer Granholm will be hosting a primetime program, “The War Room” on the network founded by former U.S. Vice President Al Gore, Current TV. Ms. Granholm will be resigning her positions on corporate boards; however, will continue her appearances on “Meet the Press.”

Stabenow Increases Campaign War Chest

Incumbent U.S. Senator Debbie Stabenow (D-Lansing) reportedly raised more than $1.2 million in the third quarter of 2011, while spending just over $325,000. Senator Stabenow’s Federal Election Commission filing will show a cash on-hand balance of just under $5 million.

‘Partial Birth’ Abortion Ban Signed

Governor Rick Snyder signed the legislation Tuesday banning the procedure known as ‘partial birth’ abortion. Senate Bill 160 (now Public Act 168) and House Bill 4110 (now Public Act 169) were sponsored by Senator Arlan Meekhof (R-West Olive) and Representative Ben Glardon (R-Owosso). The procedures are already illegal under federal law.

Snyder Approves Liquor Tax Elimination

Although restaurants and bars didn’t pay it, grocery and party stores did – however, no more. Under legislation signed by Governor Rick Snyder Tuesday, the 1.85 percent liquor tax on such establishments has been eliminated. Senate Bill 331, sponsored by Senator Joe Hune (R-Hamburg), is now Public Act 166.

posted by PAA Online , 10:34 AM
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