Marathon Meeting Held on MPSERS

With an unfunded liability of more than $45 billion, the Michigan Public School Employee Retirement System (MPSERS) is in need of reform according to Senate Republicans. What the reform should look like remains an unanswered question after a marathon hearing of the Senate Appropriations Retirement Subcommittee Wednesday.

The legislation in question is Senate Bill 1040, introduced by Senator Roger Kahn (R-Saginaw). The measure essentially requires MPSERS participants to choose between an 8-percent contribution to their pension, a smaller retirement multiplier (1.25 rather than 1.5 percent) or move to a 401(k)-type retirement system. Further, the legislation places a maximum of $100,000 on compensation and does not allow participants to begin collecting until age 60 rather than 55.

The Office of Retirement Services has indicated the reform could save as much as $380 million in the first year - $260 in reduced pension costs and $120 in reduced retiree health care costs. The hearing room in the Boji Tower was overflowing with individuals hoping to testify – with a significant portion speaking in strong opposition to the measure.

posted by PAA Online , Friday, April 13, 2012 9:44 AM
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MQCCC Legislation Now Public Act

Senate Bill 1018, legislation to end the organization of home health care workers, is now Public Act 76 of 2012 after receiving the signature of Governor Snyder. Senator Dave Hildenbrand’s legislation was described as a logical return to the original intent of law by proponents and a needless attack on organized labor by opponents.

The Michigan Quality Community Care Council (MQCCC) originated from a declaration by the state of Michigan that home health care workers receiving only Medicaid or Medicare money were public employees and, therefore, permitted to organize.

The new law clarifies that the Michigan Employment Relations Commission (MERC) cannot recognize the MQCCC, the Service Employees International Union (SEIU) supported bargaining unit, as the employees are not public employees.

posted by PAA Online , 9:43 AM
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Agriculture Big Business in Michigan

The Michigan State University Product Center released a report this week showing that the state’s agriculture industry produced more than 900,000 jobs and more than $90 billion in economic impact in 2010. The economic impact represented a 52 percent increase since the Center last released a study in 2004; however, the job total was a nearly 11 percent fall from the 2004 total of 1.04 million.

Experts explain that the job loss relates mostly to efficiency improvements made in agriculture. The majority of both the jobs and overall economic impact is realized after products leave the farm.

Food wholesale and retail accounted for more than half the total economic impact at more than $50 billion. This measure includes grocery stores and restaurants. Farms themselves contributed more than $13 billion and 100,000 jobs to the state’s workforce.

posted by PAA Online , 9:42 AM
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Glimpse at Some Departmental Budgets

The appropriations process was moving along swiftly prior to the Legislature’s departure for spring break, and promises to return to activity when the House and Senate return to the Capitol next week. During the last week of March, many departmental budgets were passed from House and Senate Appropriations Subcommittees.

The Senate Appropriations Transportation Subcommittee reported the transportation budget to the full Appropriations Committee totaling $3.46 billion – over $130 million more than the current fiscal year and $10 million more than Governor Snyder proposed. The difference; however, is the Governor’s plan included $119 million in general fund appropriations to ensure federal matching funds were secured. The Senate Subcommittee reduced the general fund amount to just $23 million and replaces it with $96 million in state truckline funds through Senate Bill 351.

The transportation budget is Senate Bill 963.

The full Senate Appropriations Committee passed the Department of Corrections budget, Senate Bill 951, prior to spring break – a roughly $2 billion measure. The budget is more than $65 million lighter than that which was recommended by Governor Snyder, and $17 million less than the current fiscal year. The majority of cuts came from continued privatization of functions, such as food service, and the elimination of nearly 600 non-officer positions.

posted by PAA Online , 9:42 AM
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PAAdvisory Briefs

State Chamber Promotes Holcomb

The Michigan Chamber of Commerce has announced the promotion of Jim Holcomb to General Counsel, adding that to his current title of Senior Vice President for Business Advocacy. Mr. Holcomb will oversee all political, legal and legislative matters for the Chamber.

EM Coming to Muskegon Heights Schools

Following the finalization of the recommendations by the financial review team, as reported by PAAdvisory last week, Michigan Governor Rick Snyder has declared a financial emergency in the Muskegon Heights School District. A hearing to appoint an emergency manager has been tentatively scheduled for April 18, pending the school district’s request.

Lottery Winner Welfare Prohibition Signed

Governor Rick Snyder signed Senate Bills 711, 712, and House Bill 5033 this week. The package of legislation requires the Bureau of State Lottery to notify the Department of Human Services of any winners of $1,000 or more – and requires DHS to then subject the winnings to its asset test for assistance.

Meadows Announces District Court Bid

Current and soon-to-be term-limited State Representative Mark Meadows (D-East Lansing) has announced his intentions to run for the District Court in East Lansing following the announcement of current Judge David Jordon’s retirement. Prior to serving in the House of Representatives, Rep. Meadows was an assistant attorney general and Mayor of East Lansing.

New Charter Schools to Open

Fourteen new charter schools have received recommendations to open in the Fall of 2012 according to the Michigan Association of Public School Academies. The new schools were made possible by the passage of Public Act 277 of 2011 which increased the cap on charter schools to 300 for the 2012-2013 school year. Schools will open in Flint, Grand Rapids, Hamtramck, Harper Woods, Kalamazoo, Ypsilanti and eight of the fourteen schools will open in Detroit.

Adams Honored by U.S. Small Business Administration

The United States Small Business Administration recognized Michigan Credit Union League & Affiliates President & CEO Dave Adams as the 2012 National Financial Services Champion for his work in increasing access to capital for small businesses in Michigan.

posted by PAA Online , 9:41 AM
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