Reports: Consent Agreement Near for Detroit

The State of Michigan has put another proposal on the table for the City of Detroit’s consideration – a “financial stability agreement” that calls for the appointment of an emergency manager by the Governor if the city fails to meet the included reforms. Most substantively, the new plan calls for the city to negotiate contracts with the roughly 48 unions representing municipal employees. The plan does not include a state appropriation – a sticking point to some members of Detroit City Council.

While remaining hospitalized after surgery last Saturday, Detroit Mayor Dave Bing is reportedly generally supportive of the new proposal.

The Rev. Jesse Jackson made a surprise visit to the Council meeting, voicing opposition to the plan and calling on State and Federal Government to provide financial relief to the city, a move State Representative Maureen Stapleton (D-Detroit) attempted on the Michigan House of Representatives floor during session Thursday. Rep. Stapleton attempted to amend House Bill 4289 with a $200 million appropriation to the City of Detroit. Her measure failed overwhelmingly.

The new proposal still calls for the creation of a financial advisory board, as the State’s first plan did, but in a considerably more advisory capacity. Instead, the plan focuses on the renegotiation of union contracts, as described above, and the implementation of a revenue estimating process to aid in the development of multiple year budgets.

To go into effect, the proposal needs approval and signatures by many, including a majority of the Detroit City Council. Three council members were involved in drafting the latest proposal. Five signatures are needed to approve.

posted by PAA Online , Friday, March 30, 2012 10:43 AM
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Autism Package Headed to Governor's Desk

After the heartbreaking scene that unfolded in the last hours of session in 2010, none of the advocates for health care insurance coverage expansion to autism treatment gave up when the proposal died in the Senate. Little did they know that the following session would bring a tireless advocate in the Lt. Governor and, with it, victory.

The Michigan House of Representatives and Senate gave final approval to a package of legislation Thursday that requires private insurers to cover treatment for autism. Senate Bill 414, 415, and 981, sponsored by Senators Mike Green (R-Mayville), Tupac Hunter (D-Detroit), and Senate Majority Leader Randy Richardville (R-Monroe), respectively, are now on their way to Governor Rick Snyder’s desk for approval.

Although some business organizations voiced opposition to the initiative, the proposal was seen as a foregone conclusion when a compromise was reached on a funding mechanism for the coverage earlier this year.

Senate Bills 414 and 415 were both approved 91-19 in the House, with a handful of Republicans voting in opposition. Five Democrats joined an additional two Republicans in opposing Senate Bill 981, which sets up the fund in the Michigan Department of Licensing and Regulatory Affairs to compensate insurance providers. The bill passed 84-26.

Concurrence in the House changes came in the form of final passage in the Senate shortly thereafter as the Lt. Governor presided over session.

posted by PAA Online , 10:43 AM
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Supreme Court Hands GOP Victory in Oakland County

After taking oral arguments late last week, the Michigan Supreme Court ruled Monday in Houston v. Snyder, overturning the Court of Appeals ruling that the Public Act that transferred reapportionment authority in Oakland County to the Board of Commissioners itself was a local act and, therefore, unconstitutional. Public Act 280 of 2011 then took effect on Wednesday.

Sure to be a loud theme among Democrats during elections this fall, the 4-3 decision from the State’s highest Court more-or-less designated the County Board of Commissioners as the apportionment committee, providing the authority to Republicans.

Prior to the law’s passage, county commission lines were drawn by an apportionment committee composed of the County Clerk, County Treasurer, County Prosecutor and the two chairs of the county’s political parties. For the first time in 2011, this committee had a Democratic majority and re-drew the lines. The County Board of Commissioners will now redraw the lines again.

Plaintiff Counsel in the matter has stated that a Federal suit is possible

posted by PAA Online , 10:42 AM
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Helmet Law Repeal Awaiting Governor's Pen

A very old battle in Lansing may be coming to an end as legislation repealing the mandatory helmet law received final passage in the Senate Wednesday and is bound for Governor Rick Snyder’s desk. Senate Bill 291 is sponsored by Senator Phil Pavlov (R-St. Claire Shores).

While the Governor had reportedly hoped the issue would be included in the larger insurance reform debate, the Legislature (or at least a majority of it) determined the issue should not wait and moved the bill to the Governor.

In an interesting and seldom seen procedural twist, the Senate had to reconsider a vote twice – something Senate rules do now allow, therefore, requiring suspension of the rules. Advocates for increased insurance coverage minimums for those choosing to ride without a helmet originally won passage on a floor amendment increasing the $20,000 minimum in the House-passed version to $100,000. The 22-15 vote was reconsidered, three Republicans changed their votes, and the amendment passed again – this time 19-18. Following the suspension of the rules and the second reconsideration of the vote, the amendment failed 18-19.

The final vote on the measure was 24 – 14 with 7 of the “yes” votes coming from Democrats and 17 coming from Republicans.

posted by PAA Online , 10:41 AM
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Paadvisory Briefs

Lower Court Rulings on EM Appointments Overturned

The Michigan Court of Appeals overturned the rulings of two Ingham County Circuit Court Judges early this week. Judge William Collete’s ruling that the City of Detroit and the State of Michigan could not enter into a consent agreement was overturned as well as Judge Rosemarie Aquilina’s ruling that restored Flint Mayor Dayne Walling to power by determining that Flint Emergency Manager Michael Brown was appointed incorrectly.

Lotto Winner Food Assistance Prevention Bills Passed

Senate Bills 711, 712 and House Bill 5033 were moved to Michigan Governor Rick Snyder’s desk for approval this week. The package of legislation requires the Michigan Lottery Bureau to report the names of winners of $1,000 or more to the Department of Human Services who will then include the earnings in an asset test to determine eligibility for food assistance.

Personal Income Up in 2011, Unemployment Continues Downward Trend

According to the U.S. Bureau of Economic Analysis, personal income increased 5.2 percent in Michigan in 2011 – the largest increase since 2000. Most notably, Michigan’s income growth rate had not topped the national average since 1995 – beating the national average of 4.3 percent by a large margin in 2011. The average per capita income in Michigan for 2011 was $36,533. In related good news, the state’s unemployment rate fell to 8.8 percent for February, the lowest level since mid-2008.

MGCCC Legislation Passes House

Despite the opposition of organized labor, Senate Bill 1018 passed the House of Representatives Wednesday on a party line vote of 63-46. The bill, sponsored by Senator Dave Hildenbrand (R-Lowell), clarifies that home health care workers are not public employees and therefore unable to organize. The legislation passed the Senate 25-13 last week.

Appropriations Subcommittees Active

Many House and Senate Appropriations Subcommittees were active this week in passing preliminary versions of departmental budget bills for the 2012 – 2013 fiscal year. With the Legislature on Spring Break for the next two weeks, PAAdvisory will provide analysis of current budget proposals in coming editions.

posted by PAA Online , 10:40 AM
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Client Corner

PAAdvisory is excited to publish the latest edition of Client Corner, a segment in select editions of the newsletter highlighted specific news from our clients. This week, we bring to you an announcement from the International Council of Shopping Centers (ICSC).

The 42^nd Annual ICSC Michigan IDEA Exchange will take place July 25 and 26^th, including roundtable discussions, a retail runway, a keynote address and 2 hours of deal-making at The Henry in Dearborn (formerly the Ritz Carlton). More information can be found at http://www.icsc.org./

The International Council of Shopping Centers (ICSC) was established in 1957 to provide educational programming, advocacy and unmatched networking, and now has 60,000 members in 90 countries. In Michigan, the ICSC has 1,200 retailers, developers, investors, mall managers and professional service providers. Shopping centers are Michigan’s 3^rd largest industry as the 3,535 centers employ 373,030 Michiganders, generate $60 billion in sales revenue, and collect $3.6 billion of sales tax revenue.

posted by PAA Online , 10:39 AM
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