Snyder Delivers Special Message on Infrastructure

Michigan Governor Rick Snyder delivered his special message on infrastructure and transportation Wednesday from Lawrence Technological University in Southfield. Noting that the issues may not inspire the same level of passion as his messages on other items such as education, the Governor stressed the importance of no longer taking our infrastructure for granted.

The Governor’s remarks focused on three items, the potential consolidation of road commissions, an examination of the road funding formulas, and vehicle registration fees.

Road Commission Reform: Michigan has 617 road agencies; a number the Governor claims is too high. Snyder’s proposal would allow counties to transfer authority from road agencies to the counties themselves. Additionally, the message included criteria road agencies would need to meet to receive state transportation dollars, including competitive bidding on contracts and the development of management plans for federal highways and bridges.

Road Funding Formula Reform: Michigan’s current road funding formula, though extremely complicated, puts roughly 39 percent of Michigan Transportation Funds into the state’s hands, 39 percent into the counties’ hands, and 22 percent in the hands of municipalities. The Governor’s message, while providing little detail, calls for essentially scrapping the formula and starting over on a structure that will bring the highest funding to those roads with the most lanes, most traffic, and most travel through commercial areas.

Vehicle Registration Fees: While being careful not to specifically call for the increase, yet put it on the table in a self-described attempt to begin the discussion, the Governor described how a $120 per-vehicle increase in registration fees would raise nearly $1 billion for road funding.

The Governor’s remarks also included a reiteration of his desire for the Legislature to pass the New International Trade Crossing (NITC) authorization measures for a new span from Detroit to Windsor. Additionally, Snyder discussed his desire to replace the current 19 cent per gallon gas tax with a lower rate tax at the wholesale level.

posted by PAA Online , Friday, October 28, 2011 10:43 AM
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State Employee Benefit Reform Measures Pass Committee

The House Appropriations Committee passed legislation Thursday to reform state employee retirement benefits on party-line votes. House Bills 4701, sponsored by Representative Bill Rogers (R-Brighton) and 4702, sponsored by Rep. Chuck Moss (R-Birmingham) cleared the panel on identical 17-10 votes.

The most substantive portion of the reform would require state employees who are eligible to receive a defined benefit plan, or pension, to choose between freezing their pension and moving to a 401(k) style benefit or stick with their pension and begin paying 4 percent of their salary toward the benefit.

The objections of employee unions and Democratic Committee members were evident through the often hot-tempered hearing. Democrats offered seven amendments to the measures, all failing on party-line votes. Republicans and Democrats differed on issues from the very idea that there is truly a problem that needs to be solved by the reform, to the inclusion of overtime when pensions are figured.

Representative Earl Poleski (R-Jackson) won the only amendment, striking language that would allow certain retired employees to continue drawing pensions if brought back into employment by the State Budget Director, the Speaker of the House, or the Senate Majority Leader.

posted by PAA Online , 10:42 AM
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Senate Addresses Education Reform Legislation

Only the controversial mandatory schools of choice (Senate Bill 624) and conversion schools (SB 620) bills remain unaddressed as the Senate took action Thursday on six more pieces of the Republican Caucus’ reform package.

Five of the measures, SB 621, SB 622, SB 623, SB 709, SB 710, passed 26-12. SB 621, sponsored by Senator Goeff Hansen (R-Hart) provides further opportunities for home-schooled and private school students to take classes in public schools. The other four would allow high school underclassmen to take college courses, as juniors and seniors are currently allowed to, as well as eliminate the course prerequisites and testing requirements often in place.

The vote on Senate Bill 619 was much closer, passing 20-18. The legislation, sponsored by Senator Patrick Colbeck (R-Canton) would eliminate the state’s limit on online schools, currently set at two. Republican Senators Tom Casperson (R-Escanaba), Bruce Caswell (R-Hillsdale), Roger Kahn (R-Saginaw), Mike Nofs (R-Battle Creek), and Tory Rocca (R-Sterling Heights) voted no.

posted by PAA Online , 10:42 AM
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House Commerce Passes Workers’ Comp Changes

The House Commerce Committee passed legislation this week providing for greater limitations on the benefits received by injured workers. House Bill 5002, sponsored by Representative Brad Jacobsen (R-Oxford), cleared the panel on an 11-7 party-line vote, with Representative Marty Knollenberg (R-Troy) passing. Democrats attempted five amendments to the measures, all failing on party-line votes.

The legislation places specific limits on the amount of benefits paid to an injured worker at 80 percent of after-tax wages as well as requiring the injured worker make a “good faith” effort to secure other work if a total loss of earning ability was not suffered.

Further, the proposal seeks significant changes to the qualifications for workers’ compensation magistrates, requiring only that the individual be a member in good standing with the State Bar of Michigan having practiced for a minimum of five years.

posted by PAA Online , 10:41 AM
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House Receives Helmet Law Repeal

The House Transportation Committee passed legislation 13-4 on Wednesday, moving a step closer to settling the 35-year fight to repeal the state’s helmet requirement. House Bill 4608 and Senate Bill 291 will now move to the House floor.

The legislation would allow motorcyclists 21 years of age and older to go helmet-free provided they carry $20,000 in personal medical insurance coverage.

Representatives Kevin Daley (R-Lum), Mark Ouimet (R-Scio Township), Wayne Schmidt (R-Traverse City), and Alberta Tinsley-Talabi (D-Detroit) voted against the bills.

posted by PAA Online , 10:41 AM
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PAAdvisory Briefs

Wolpe Passes at 71

Former U.S. Representative Howard Wolpe passed away at his Saugatuck residence Tuesday at 71 years of age. Wolpe served in the Michigan House of Representatives until being elected to Congress in 1978 to a seat representing Kalamazoo, Battle Creek and western portions of the Lansing area. The Democratic Party’s gubernatorial nominee in 1994 had recently retired as a special advisor to U.S. Secretary of State Hillary Clinton.

Anderson Running for Congress

State Senator Glenn Anderson (D-Westland) has added his name to a growing list of candidates for the newly drawn 13^th U.S. House District. Current U.S. Representative John Conyers (D-Detroit), State Senator Bert Johnson (D-Highland Park), and State Representative Shanelle Jackson (D-Detroit) have previously announced their candidacy.

Scott Recall Decision Final – Will Appear on Ballot

The Michigan Supreme Court issued a decision bringing an end to the debate over the recall effort targeting State Representative Paul Scott (R-Grand Blanc). After last week’s Supreme Court ruling throwing out the previous Court of Appeals action and denying the stay of the November recall, Rep. Scott attempted one last effort, requesting that the Court delay the election until the next election on February 28^th. The Court denied the request and the recall will move forward on the November ballot.

Revenue Estimating Conference Set

House Fiscal Agency Director Mary Ann Cleary, Senate Fiscal Agency Director Ellen Jeffries, and State Treasurer Andy Dillon will determine revenue estimates for the current 2011-2012 and the upcoming 2012-2013 fiscal years at the Consensus Revenue Estimating Conference on Friday, January 13, 2012 at 9am. The numbers will be the basis for Governor Snyder’s budget recommendations expected in February.

State Employees Reach Agreement on Future Pay Raises

The State of Michigan’s roughly 35,000 employees will receive a 1 percent pay increase in fiscal year 2013 and a lump sum payment of 1 percent of base wages in fiscal years 2013 and 2014 under a tentative agreement reached between the State and the Coalition of Unions representing the employees.

posted by PAA Online , 10:39 AM
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