Govenor Snyder Unveils Fy 2013 Budget Recommendations

Michigan Governor Rick Snyder was joined Thursday by Lt. Governor Brian Calley and State Budget Director John Nixon in presenting the Administration’s recommendations for the FY 2013 budget before a joint meeting of the House and Senate Appropriations committees. The $48.2 billion total spending plan came with a considerably more positive, yet still restrained tone. The Governor’s recommendations, including 2014 projections, can be viewed in its entirety at http://www.paaonline.com/resources.php
As with last year, the budget will be presented in two pieces of the legislation – one on education (K-12, community colleges and higher education) and one for the remaining State expenditures. The Governor stated that he hoped the budget would be completed along a timeline similar to the May completion of the current budget.

Highlights of the roughly 2.4 percent larger budget include:

· The use of $119 million in one-time General Fund money for roads in order to maximize Federal matching dollars – a total of $3.3 billion, or a 0.4 percent decrease from 2011 – 2012 FY.

· $195 million for economic gardening efforts within the Michigan Economic Development Corporation (MEDC), as well as $25 million for film incentives

· $50 million to the Department of Technology, Management & Budget, specifically to update the state’s oldest information and accounting systems

· $179 million for the public school employees’ retirement system

· $25 million for State buildings needing repair and renovation

· $130 million for the budget stabilization or “rainy day” fund

· $12.69 billion for School Aid, $12.5 billion of which is ongoing spending, representing a 2.5 percent increase over the current fiscal year

· A roughly 2.8 percent increase in higher education funding, from $1.36 billion in the current year to $1.39 billion in 2012-2013

PAAdvisory will analyze additional details of the Governor’s FY 2013 budget recommendations in coming editions.

posted by PAA Online , Friday, February 10, 2012 10:31 AM
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Cyberschool Expansion Proposal Receives Cap

As expected and reported in last week’s PAAdvisory, the House Education Committee reported Senate Bill 619 Wednesday on a nearly straight party-line vote; however, not before changing the face of the proposal. The Committee’s vote was 10-8 with only Representative Tom Hooker (R-Byron Center) voting “no” with the Democratic members.

The legislation, sponsored by Senator Patrick Colbeck (R-Canton), as originally introduced, proposed to remove the 1,000-pupil maximum enrollment at the two currently permitted Michigan cyberschools. The measure would also have removed the cap of two total cyberschools and expand the scope of the schools beyond only at-risk and urban populations.

The substitute provided to committee members late Tuesday night and voted out of the committee on Wednesday contains a cap of no more than 15 cyberschools through December 31, 2013, and no more than 30 thereafter.

The cap that was added for enrollment at the cyberschools is not to exceed half of the population of Michigan’s largest school district, which is currently the Detroit Public Schools and the roughly 66,000 students.

posted by PAA Online , 10:31 AM
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Road Commission Dissolution Measures Pass to Governor

Two bills that allow counties to absorb the duties of and dissolve road commissions passed the House of Representatives Tuesday after failing to do so in December. The measures now move to the Governor for his expected signature.

House Bill 5125, sponsored by Representative Jon Switalski (D-Warren), and House Bill 5126, sponsored by Representative Dale Zorn (R-Ida), both passed on 63-41 votes with roughly 16 Republican members casting “no” votes and 17 Democratic members supporting the bills.

Democrats were united in their opposition to the same bills in December, fueling speculation that a deal had been struck; however, House Democratic Leader Rick Hammel (D-Mount Morris Township) stated that the Democrat’s opposition in December was the result of the Caucus’ understanding that the two bills were supposed to be part of a larger, bipartisan package. Now that the 30-bill bipartisan transportation package has been introduced, Rep. Hammel explained that his Caucus members were comfortable supporting the road commission dissolution measures.

In related news, the House Transportation Committee held a hearing Wednesday on House Bills 5301, 5302 and 5313 – three of the 30 bills in the bipartisan transportation package recently introduced. The three bills propose to require road agencies and road commissions to develop and maintain dashboards, review and adjust signal device timing every five years, certify to the Department of Transportation that they are compliant with the required 80/20 split on health insurance and put all new employees on defined contribution retirement programs.

posted by PAA Online , 10:30 AM
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Senate Committee Delays Vote on Community College Proposal

Shortly before the Senate Education Committee was scheduled to meet and vote on House Bill 4496 Wednesday, Committee Chair Senator Phil Pavlov cancelled the vote. The legislation would permit community colleges to offer four-year or baccalaureate degrees in five specific areas of study.

Despite the vocal objection from the state’s universities, the Chair had originally indicated he was comfortable with moving forward on the measure. Questions have recently arisen, reportedly from members of both parties, with regard to the constitutionality of the measure.

Opponents are arguing that the function of a community college will change, as will their governing, under the proposed law – potentially questioning their existing funding structures. Senator Pavlov expects the vote to be rescheduled for next week.

posted by PAA Online , 10:30 AM
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Michigan Joins Foreclosure Settlement

Michigan Attorney General Bill Schuette announced Tuesday that Michigan had joined a settlement against five of the United State’s largest financial institutions for $19 billion to assist homeowners affected by foreclosure proceedings. At least 40 other states are also part of the settlement.

By joining the case against Ally Financial, Bank of America, Citigroup, JP Morgan Chase and Wells Fargo, the State stands to see nearly $500 million. Notably, the Attorney General stated that by entering the settlement, Michigan is not waiving rights to potentially file criminal charges and seek associated penalties against the banks.

In addition to the cash payments the banks will send to those who went through foreclosure from 2008 – 2011, the banks will also provide homeowners who are current with their mortgages, but owe more than their current home values, with a program for refinancing.

posted by PAA Online , 10:29 AM
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PAAdvisory Briefs

Dual Enrollment Package Clears House Panel

A package of bills providing high school students more opportunities to take courses at community colleges and universities while qualifying for high school credit passed the House Education Committee. The package includes Senate Bill 621, 622, 623, 709 and 710.

County Commission Appointment Bill Debated

The House Redistricting & Elections Committee took testimony on Tuesday regarding House Bill 4357, sponsored by Representative Eileen Kowall (R-White Lake Township). The measure would allow county commissions to fill vacancies through appointment during odd-numbered years rather than hold special elections. An identical bill, Senate Bill 204, was approved in the Senate in January.

Judge Rules on Financial Review Team Meetings

Ingham County Circuit Court Judge William Collette ruled this week that financial review teams appointed under Public Act 4 are considered public bodies and therefore must adhere to the Open Meetings Act. The Judge ordered the review team in Detroit to meet in the open. The Department of Treasury is reportedly considering appeal options.

Bishop Launches Prosecutor Bid

Former State Senate Majority Leader Mike Bishop launched his campaign for Oakland County Prosecutor at a non-fundraising dinner Tuesday night. The event was attended by more than 300 people, including former Bishop rival Michigan Attorney General Bill Schuette and Michigan Republican Party Chair Bobby Schostak.

posted by PAA Online , 10:29 AM
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