State of the State 2012

Michigan Governor Rick Snyder delivered his second State of the State address Wednesday evening before a joint session of the Michigan Legislature. The Governor’s 52-minute speech, delivered as it was in 2011 without prepared text, departed from that of some previous Governors’ addresses in that it provided significant commentary in the form of progress reports on those initiatives announced in 2011 and was brief in the area of new proposals.

The Governor stressed that 2012 was to be a year about completing the work that began in 2011, referencing specifics such as the New International Trade Crossing (NITC), insurance coverage for autism, the health insurance exchange, transportation funding reform, and regional transit in Southeast Michigan.

Among the few new announcements were the Governor’s plans to travel to Asia and Europe this year for trade missions, as well as a partnership with the Michigan Health and Hospital Association, Michigan Grocers Association and Gerber Food Inc. on the issue of childhood obesity called Pure Michigan Fit. The Governor also called on the Legislature to pass legislation to “lock-in” the Education Achievement Authority (EAA) into statute. The EAA was established to oversee the state’s poorest performing schools through an agreement with Eastern Michigan University and the Detroit Public Schools; however, the Governor’s advisors are reportedly concerned that the authority may not hold up in court without being established in statute.

In one of the more humorous moments, the Governor described the work of \reviewing and recommending elimination of unnecessary regulations. He used the example of the Department of Environmental Quality’s “28 separate requirements for outhouses, including one that the seat not be left up.” He reported that was not necessary at the Snyder home as he “reported to a higher authority.” The first Lady laughed at that line.

Addressing some of the Administration’s successes through measurements that are a part of the Governor’s “dashboard,” Mr. Snyder emphasized the reduction of Michigan’s unemployment rate to a 3-year low. An outline of Governor Snyder’s second State of the State address is available here, and at www.paaonline.com/resources

posted by PAA Online , Friday, January 20, 2012 10:43 AM
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Revenue Estimates Conservative; Budget Supplemental Coming

State Treasurer Andy Dillon, House Fiscal Agency Director Mary Ann Cleary and Senate Fiscal Agency Director Ellen Jeffries announced numbers late last week representing their agreement for upcoming revenue projections.

For the current fiscal year that ends September 30, 2012, projections for both the General Fund and School Aid Fund were increased from May 2011 estimates. The General Fund was increased $278 million due mostly to expected increases in income tax collections. The School Aid Fund projections were increased $138.3 million.

With regard to the 2012-13 fiscal year projections, the three fiscal officials estimated no increase in General Fund revenues, placing the number at $9 billion. The School Aid Fund is projected to see a small increase in revenue to $11 billion, approximately 2.7 percent higher. The $20 billion total estimate is about 1.5 percent higher than current fiscal year totals.

While the good news at the Revenue Estimating Conference was somewhat restrained, the State Budget Director indicated that the Administration will be preparing a supplemental in coming weeks to spend the $457 million remaining following the closing of the State’s 2010-2011 fiscal year last September 30.

Budget Director John Nixon, CPA, said that the Governor would be making the request as a portion of his February 9^th 2012-13 budget presentation and focusing on “key areas” such as Medicaid caseloads and state employee union contracts.

posted by PAA Online , 10:42 AM
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New Roads Funding Proposal Pending

Although specifics were not included in his State of the State address Wednesday evening, Governor Rick Snyder did urge the Legislature to act on a new transportation funding proposal and referenced a $1.4 billion underinvestment in infrastructure.

The new proposal is reportedly expected to be introduced in coming weeks in the form of a 13-bill bipartisan legislative package that would call for an increase in the wholesale percentage gas tax as well as an increase in vehicle registration fees.

The Governor’s revenue-neutral 2011 transportation funding proposal saw little movement and considerable criticism by the Legislature and the public. The old plan called for a similar increase in the wholesale percentage gas tax, a larger increase in vehicle registration fees, and an elimination of the 19-cent per gallon gasoline and 15-cent per gallon diesel fuel taxes.

The new proposal is reported to raise an additional $1.4 billion for infrastructure funding.

posted by PAA Online , 10:41 AM
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Public Lake Access Bill Passes Senate

Senate Bill 778 passed the Senate 30-6 Thursday, with no debate, moving one step closer to the conclusion of an issue bouncing around the Legislature for many years.

The legislation, sponsored by Senator Mike Kowall (R-White Lake), would prohibit the blocking of access to the water at a public road end, such as the overnight mooring of a boat. The bill would permit a local unit of government to install a dock. Property rights questions surrounding road-ends of public roads at lakes have resulted in confrontations according to the bill’s sponsor.

Senators Darwin Booher (R-Evart), Tom Casperson (R-Escanaba), Bruce Caswell (R-Hillsdale), Hoon-Yung Hopgood (D-Taylor), Rebekah Warren (D-Ann Arbor) and Coleman Young, Jr. (D-Detroit) voted in opposition of the measure.

posted by PAA Online , 10:40 AM
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PAADVISORY BRIEFS

State Employees See Big Pay Day

More than $95 million in escrowed funds were returned to State of Michigan employees on Thursday in what amounted to a one-time significant pay increase. The 3-percent employee contribution to retirement was ruled unconstitutional after a year, so approximately 50,000 individuals received the refund. Employees had the option of having the amount deposited into their retirement accounts or included in their paycheck.

Governor Participates in Online Town Hall

Governor Rick Snyder answered approximately 25 questions submitted via social media outlets and other vehicles in an “online town hall meeting” as a follow-up to Wednesday’s State of the State address. Roughly 4,500 questions were submitted through the Governor’s website, Facebook, Twitter and other methods.

State Police Cruisers at Home?

During a hearing of the Senate Appropriations Subcommittee on State Police and Military and Veterans Affairs, a State Police Department official explained that the Department is in the early stages of considering allowing troopers to take their patrol cars home at night. Other states have reportedly seen better-maintained vehicles while it also serves to increase trooper visibility in communities.

Protestors Target Snyder Residence

Approximately 700 protestors spent part of Monday’s Martin Luther King, Jr. Day protesting Michigan’s Emergency Financial Manager Law (Public Act 4) outside of Governor Snyder’s neighborhood in Ann Arbor. Protestors were reportedly organized by the NAACP and By Any Means Necessary (BAMN) and were protesting the EFM statute largely because of their belief that it disproportionately affects minority communities.

Hendges Promoted

Jeremy Hendges, Legislative Director for House Speaker Jase Bolger (R-Marshall) since January of 2011, has been promoted to Legislative Director and Senior Strategy Coordinator. The Grand Valley State University alum and Traverse City native had previously served on the staffs of former House Republican Leader Kevin Elsenheimer, as well as former Senators Jason Allen and Alan Cropsey.

Hoogendyk Announces Candidacy

Former State Representative Jack Hoodendyk has formally announced his candidacy for the U.S. House of Representatives in the 6^th District. Congressman Fred Upton is the incumbent.

Kowall Ends Congressional Bid

State Senator Mike Kowall (R-White Lake) has suspended his bid for the 11^th District U.S. House of Representatives against incumbent Congressman Thaddeus McCotter (R-Livonia). Senator Kowall became a candidate for the U.S. House when Mr. McCotter decided to make a bid for the White House, an endeavor which has also been suspended.

posted by PAA Online , 10:39 AM
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