State Retiree Benefit Changes Pass Amid House Floor Chaos

Significant reform to benefits provided to State of Michigan retirees passed the House of Representatives Thursday as procedural maneuvers on the floor by both parties culminated in shouting matches.

House Bills 4701 and 4702 passed along party lines (63-45 and 63-44, respectively); however, it was the vote on immediate effect that caused the chaos. With Republicans and Democrats standing and shouting, Representative Paul Opsommer (R-DeWitt) granted immediate effect to HB 4701 on a voice vote. After considerable objection and request for a recorded vote on immediate effect, Democratic Floor Leader Representative Kate Segal (D-Battle Creek) submitted a letter containing the signatures of House Democrats; however, the recorded vote was not taken.

Prior to the votes, debate had already become contentious as Republicans and Democrats sparred over the substance of the reform. Proponents argue that the unfunded liability for the state in retiree obligations is already $10 billion – and growing, a sign of an unsustainable system. Opponents argue the reform is radical change that puts the future health of retirees at risk.

The package would require state employees on the defined benefit plan, or pension, to pay 4 percent of their salary toward their retirement, but would refund the 3 percent that those employees have been paying toward healthcare benefits (an issue currently being litigated). Additionally, under the reform, employees hired after January 1, 2012 will not get a matching contribution toward health care coverage.

posted by PAA Online , Friday, November 4, 2011 10:46 AM
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Film Incentive Measure Moves

The Senate passed a measure Thursday to provide the structure for the future of Michigan’s film incentive programs. Senate Bill 569, sponsored by Majority Leader Randy Richardville (R-Monroe), passed 34-4 with the four “no” votes coming from Republican Senators Mike Green (R-Mayville), Joe Hune (R-Hamburg Township), Arlan Meekhof (R-West Olive) and Dave Robertson (R-Grand Blanc).

The legislation creates the structure for awarding film incentives through the appropriations process, rather than refundable tax credits as were previously provided and eliminated by the tax reform measures pushed by Governor Rick Snyder earlier this Spring. The Film and Digital Media Production Assistance Program is created under the measure, and will award the incentives in a tiered structure created to favor companies employing Michigan residents and purchasing Michigan products and services.

The 2012 fiscal year budget currently contains $100 million in film incentives, with $50 million tentatively budgeted for fiscal year 2013.

Senator Bert Johnson (D-Highland Park) was successful in his attempts to gain approval on a couple of amendments regarding transparency, including a requirement that the fund report quarterly to the Legislature.

posted by PAA Online , 10:46 AM
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Anti-Bullying Measure Splits Senate, Passes to House

Under legislation passed by the Senate Wednesday, school districts would be required to develop and implement anti-bullying policy. Senate Bill 137, sponsored by Senator Rick Jones (R-Grand Ledge), passed the Senate on a straight party-line vote of 26-11.

The content of a substitute version of the legislation adopted on the Senate floor; however, created significant and passionate disagreement from Democrats – as well as fallout continuing throughout the week. The disagreements began with Democratic arguments that specific characteristics should be enumerated in the legislation, such as race, gender, or sexual orientation. The GOP caucus position is that the enumeration of specific characteristics could risk leaving some groups out of the intended protection.

The most significant issue causing division of the upper chamber during debate, and subsequent fallout, was language included in the floor-adopted substitute providing an exemption from bullying policies for statements made based on a religious belief or moral conviction. While Republicans claim the measure represents a significant move forward, Democrats claim the exemption provides permission to bully under certain circumstances.

Subsequent to the bill’s passage, Kevin Epling, the father of East Lansing teen Matt Epling who took his own life in 2002 after being bullied and for whom the bill is named, criticized the legislation. Thursday, State Superintendent of Schools Mike Flanagan, also criticized the measure.

Senate Bill 137 now moves to the House for consideration.

posted by PAA Online , 10:45 AM
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Sweeping Changes to Workers’ Comp Pass House

The House of Representatives passed legislation Wednesday providing for significant changes in the state’s workers’ compensation law. House Bill 5002, sponsored by Representative Bradford Jacobsen (R-Oxford), codified current case law and places greater limitations on benefits paid to injured workers.

The measure passed the House on a largely party-line vote of 59-49 with four Republicans, Representatives Mike Callton (R-Nashville), Kevin Cotter (R-Mt. Pleasant), Tom Hooker (R-Byron Center) and Ken Yonker (R-Caledonia), joining all Democrats in opposing the bill.

The first of the two most significant changes would require that workers make a “good-faith” effort to find other employment that is “reasonably available,” while leaving both terms undefined. The second places specific limits on the amount of benefits a worker is eligible to receive, setting the limit at 80 percent of the worker’s after-tax wages.

Speaking in opposition to the measure, Representative Jim Townsend (D-Royal Oak) noted that compensation insurance rates have decreased rather consistently in recent years. Senate Majority Leader Randy Richardville (R-Monroe) has indicated the measure will be addressed in the Senate after the November recess for deer hunting season and Thanksgiving.

posted by PAA Online , 10:45 AM
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Helmet Law Repeal One Step Closer

The House of Representatives passed legislation 69-39 on Wednesday, moving yet another step closer to settling the 35-year fight to repeal the state’s helmet requirement. Senate Bill 291 will now move back to the Senate. Michigan Governor Rick Snyder has not yet indicated what will become of the proposal if it arrives on his desk.

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, the highest dollar amount requirement in the United States.

The motorcycle industry has been lobbying for a repeal of the law since 1976. Proponents of the measure claim an influx of riders would bring additional tourism dollars to one of Michigan’s largest economic sectors.

posted by PAA Online , 10:44 AM
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PAAdvisory Briefs

Bloomberg Gives Michigan Positive Report

Bloomberg’s Economic Evaluation of the States has ranked Michigan second, a report Snyder Administration officials hope will aid in their efforts to encourage new business investment. Only North Dakota ranked above Michigan on the list; however, North Dakota was also the only state that achieved an improved economy between the 4^th quarter of 2008 and the 2^nd quarter of 2011. Michigan simply declined less than all other states.

Asset Test for Food Assistance Changed

The Michigan Department of Human Services, reportedly after receiving significant input from advocacy groups and case workers, have changed their standards regarding the treatment of vehicles in determining eligibility for the food assistance program. Persons with greater than $5,000 in assets or vehicles valued at greater than $15,000 were ineligible for food assistance under the policy effective October 1^st. Starting January 1, 2012, the new policy will provide for a one vehicle exemption from the asset test and a $15,000 value limit on subsequent vehicles.

Saugatuck Area Seeking Consolidation

A Consolidated Government Committee (CGC) representing residents in the City of Saugatuck and Saugatuck and Douglas Townships have presented the State with petitions signed by nearly 450 residents. State law requires 5 percent of the area’s population be included in the collected signatures – the CGC submitted signatures on behalf of roughly 8.5 percent of the more than 5,100 residents. Next step for the potential consolidation of the governmental units is the State Boundary Commission.

State Christmas Tree In-bound

Mr. and Mrs. Jerry and Beverly Kilburn of Houghton Lake have donated this year’s State Christmas Tree, a 61-foot blue spruce scheduled to arrive Saturday, November 5^th. The tree lighting will be Friday, November 18^th during the annual Lansing Silver Bells in the City festival.

posted by PAA Online , 10:44 AM
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