Senate Dems Role-Out Free Tuition Plan

The Michigan Senate Democratic Caucus unveiled a plan this week that would provide free tuition for Michigan students at public universities and community colleges. The “Michigan 2020 Plan: A Passport to Prosperity” is modeled after the Kalamazoo Promise.

Under the proposal, students could receive annual grants for two or four-year degrees equal to the average of tuition at Michigan’s 15 public universities (currently $9,575). The grant amount would vary on the amount of time the student had spent in Michigan’s K-12 system. If the student chose an institution costing more than the grant amount, the student would be responsible for the difference. If the reverse were true, the student could utilize the remaining amount for approved educational expenses.

The plan also calls for mechanisms to fund the estimated $1.8 billion proposal. First, the state’s sales tax would be extended to online retailers. Earlier studies have reported an estimated $142 million left on the table in 2012 by not collecting from online sales.

The second funding course is through the 6-percent decrease in costs of the state’s $28 billion in contracts. A contract reform group would be developed to present recommendations to the Governor and the Legislature.

Finally, the proposal calls for the development of a five-member Sunset Commission charged with review of all of the state’s tax credits and making recommendations for elimination of 10 percent, or roughly $3.5 billion. The Commission would be comprised of economists from Michigan State University, Michigan Technological University, the University of Michigan, the Upjohn Institute and Wayne State University.

Legislation is reportedly being drafted to encompass the proposal, which is also being reviewed by the House Democratic Caucus.

posted by PAA Online , Friday, January 13, 2012 10:18 AM
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2011 Foreclosure Rates Drop 26 Percent

A RealtyTrac report issued this week showed that approximately 100,000 Michigan homes were foreclosed in 2011, a 26 percent decrease from 2010 and a 15 decrease in rate from 2009. The number put Michigan sixth in the country behind Nevada, Arizona, California, Georgia and Utah.

On a national level, December’s foreclosure rate was the lowest in more than four years and was down 34 percent overall from 2010. Although still staggering, the estimated 1.89 million homes foreclosed in 2011 is the lowest number since 2007.

Detroit’s foreclosure numbers ranked 18^th among the country’s major metropolitan areas after two years of reduced foreclosure rates in the city.

posted by PAA Online , 10:17 AM
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Highland Park Schools To Fall Under Control Of EM

After receiving the report of the 10-member financial review team last week, Michigan Governor Rick Snyder declared the Highland Park School District in a state of financial emergency Thursday. Under Public Act 4, the next step is the appointment of an emergency manager.

PAAdvisory reported last week that a balanced budget had only been achieved for the district in one of the last six years. The budget deficit grew from $6.6 million to $11.3 million from the 2009-2010 to the 2010-2011 fiscal year. Additionally, the review team noted that the District, as of mid-November, had $1.7 million in unpaid bills – some as late as six months delinquent.

The situation was compounded this week when Treasury officials made the trip to Highland Park to determine the exact amount necessary to make payroll for the District this week. $188,000 was determined to be the number and the District will receive their January state aid payment in advance to meet their obligations.

A January 17^th meeting is schedule with District officials to discuss next steps. The district is expected to appeal the declaration.

posted by PAA Online , 10:16 AM
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Ballot Language Filed For Increased Renewable Energy Requirement

The State Board of Canvassers will be meeting next week to review and potentially approve for circulation ballot language that would require Michigan utilities to generate 25% of their electricity from renewable sources by 2025. The language was filed by the group Michigan Energy, Michigan Jobs.

The Michigan Legislature passed a 10% Renewable Portfolio Standard (RPS) requirement by 2015; however, the pressure has been on since, mostly from environmental interests and Democratic office-holders, to increase the standards. Proponents of the measure, including many organized labor entities, see the measure as a job provider – beyond the environmental impacts.

The proposal would also restrict utilities from increasing electricity rates by more than 1 percent in any one year in an effort to comply with RPS standards.

posted by PAA Online , 10:15 AM
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PAAdvisory Briefs

Friend to Many, Bruce McDonald, Passes

PAA lost a good friend this week with the passing of Bruce McDonald. Many of our clients will remember Bruce for his gracious hosting of our annual cocktail cruise at Bay Harbor aboard his yacht, Trilogy. Bruce was a successful businessman, a true MSU supporter, and a great friend. He will be missed.

NITC Announcement Expected After State of the State

Governor Rick Snyder continues to review options for moving forward on the New International Trade Crossing initiative for an additional bridge from Detroit to Windsor. Sources have been speculating when the Governor may bring forward his intentions with regard to the proposed new structure. Signs now indicate that an announcement is to be made after the State of the State address next week.

Long-time Chamber Executive to Retire

After 34 years with the Michigan Chamber of Commerce, long-time vice president and general counsel Robert “Bob” LaBrant will be retiring at the end of March. LaBrant’s career in chamber management began in 1972 at the Appleton, Wisconsin Chamber of Commerce.

Budget Presentation February 9th

Governor Rick Snyder will unveil his recommendations for the 2012-2013 and 2013-2014 fiscal year budgets on February 9^th at a joint hearing of the House and Senate Appropriations committees. The Governor will be joined by Michigan Department of Technology, Management & Budget Director John Nixon, CPA.

December Revenues Fall Slightly

State revenues dipped a bit in December, largely due to lower than estimated income tax withholding collections. The Senate Fiscal Agency reported that December revenues were $12.6 million below estimates; however, other taxes, such as the state’s sales tax, were up and help to offset the lower withholding numbers.

Stabenow Continues Fight for FRIB

Following comments from the U.S. Department of Energy that it may consider breaking earlier commitments to fund the Facility for Rare Isotope Beams (FRIB) at Michigan State University, U.S. Senator Debbie Stabenow issued a statement regarding the bipartisan commitments to the project and the facility’s potential economic impact. The University estimates the facility will create nearly 6,000 temporary jobs during construction, 400 full-time positions once operating, and generate nearly $200 million in tax revenue.

Santana Loses Committee Role

State Representative Harvey Santana (D-Detroit) is no longer the Minority Vice Chair of the House Agriculture Committee after House Speaker Jase Bolger (R-Marshall) removed him from the position following the December altercation on the House floor. Rep. Charles Brunner (D-Bay City) will assume the post.

posted by PAA Online , 10:11 AM
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