PPT Package Substantially Amended- Passed by Senate

The State Senate made significant changes to the personal property tax (PPT) elimination package on the Senate floor Thursday – so significant that the three major organizations representing local government changed their respective positions to “neutral” after months of consistent opposition. The Michigan Municipal League, the Michigan Association of Counties and the Michigan Townships Association had previously been opposed to anything shy of a constitutional guarantee of full revenue replacement; however, the substitute package passed by the Senate changed their collective tune.

Senate Bills 1065 (Brandenburg), 1066 (Robertson), 1067 (Caswell), 1068 (Robertson), 1069 (Hildenbrand), 1070 (Nofs), 1071 (Nofs) and 1072 (Brandenburg) now move to the House where an uncertain future lies ahead. The House had already indicated that the measures will not be addressed prior to departure for Summer recess.

The key change came in the form of an amendment offered by Senator Dave Hildenbrand (R-Lowell). The “repealer” amendment calls for the return to the current state of the PPT if future Legislatures fail to provide for reimbursement to local units for revenues lost due to the tax elimination.

Also added were amendments to address concerns with the reform’s effect on local bond indebtedness and how much revenue a local must lose prior to obtaining reimbursement.

Even with the changes, the legislation still received “no” votes from all Democratic members of the Senate and a handful of Republicans.

posted by PAA Online , Friday, May 11, 2012 10:25 AM
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Habitual Offender Measure Clears Senate Panel

The Senate Judiciary Committee addressed legislation this week that requires a minimum 25-year sentence for fourth-time offenders. Senate Bill 1109, sponsored by Senator Rick Jones (R-Grand Ledge) was unanimously approved and moved to the Senate floor.

Under the proposal, an individual who has been convicted of three or more felonies will have to spend at least 25 years in prison if that person is found guilty of committing or conspiring to commit a fourth “serious crime.” Those qualifying crimes include second-degree murder, manslaughter, kidnapping, assault with intent to murder, etc.

The legislation is supported by law enforcement agencies and Michigan Attorney General Bill Schuette, who was present for the hearing. If the measure had been in effect in 2011, an estimated 50 individuals would have fallen under the law.

posted by PAA Online , 10:24 AM
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Shared-Work Unemployment Benefit Reform Debated

The Senate Reforms, Restructuring and Reinventing Committee took testimony this week on legislation to permit an employer to reduce affected employees’ work hours while permitting the employees to received reduced unemployment benefits.

Senate Bill 1094, sponsored by Senator Bruce Caswell (R-Hillsdale), represents a reform initially proposed during Governor Rick Snyder’s November special message on recruiting and retaining talent. By allowing employees to received reduced benefits while still working, the measure could prevent significant numbers of layoffs as has been noted in other states.

The program is designed to be fully funded by the federal government; however, the legislation includes a provision for continuation upon loss of federal funding.

posted by PAA Online , 10:23 AM
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Martin Tapped as Detroit CFO

Parker Moves to Highland Park Schools

Longtime financial guru Jack Martin has been named the new chief financial officer (CFO) of the City of Detroit by Mayor Dave Bing. The CFO position was newly created by the Consent Agreement, or Financial Stability Agreement, entered into by the State of Michigan and the City of Detroit earlier this Spring.

Martin is the founder and Chairman of Martin, Arrington, Desai & Meyers, PC and has been serving as the Emergency Manager for Highland Park Public Schools since January. Additionally, Martin was a member of the Detroit Financial Review Team that originally recommended the Consent Agreement.

Martin will take over as Detroit CFO on May 21^st and will be replaced in Highland Park by Governor Snyder’s appointment of Joyce Parker, the current Emergency Manager for the City of Ecorse. Having recently announced the first balanced budget in the City of Ecorse since 2005, Ms. Parker and Governor Snyder view the City of Ecorse as significantly improved, allowing for her to take on both positions simultaneously.

The Mayor also has to appoint a project manager under the Consent Agreement.

posted by PAA Online , 10:23 AM
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Representative Olson Not Seeking Re-Election

State Representative Rick Olson (R-York Township), arguably the most unfortunate consequence of the Republican-led redistricting effort, has announced he will not seek re-election to his current House seat this Fall.

The newly drawn seat, the 55^th House District, has a significantly stronger Democratic base.

Representative Olson had spent some time flirting with the idea of running as a Democrat in recent months; however, has decided not to largely based on the news of a competitive Republican Primary for the York Township Supervisor – a fact Mr. Olson indicates will reduce potential crossover voting.

Andrew Brown-Harrison is currently the only Democrat to have filed in the 55^th District; however, Adam Zemke has announced his intention to do so and has begun to collect significant endorsements.

posted by PAA Online , 10:22 AM
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PAAdvisory Briefs

Mr. Romney Comes to Lansing

Former Massachusetts Governor and presumptive GOP Presidential nominee hopeful Mitt Romney addressed a crowd at the Lansing Community College’s Dart Auditorium Tuesday. Governor Romney was introduced by Michigan Governor Rick Snyder prior to his remarks on his first trip to Michigan since his victory in the February primary.

Court of Appeals Panel Chosen on PA 4 Referendum

The random draw process resulted in a conservative Court of Appeals panel to hear the case of whether the Board of State Canvassers acted correctly or not in denying certification of the referendum on Public Act 4 – the Emergency Manager Law. The three judges drawn were: Judge Kristen Kelly, appointed by former Governor Engler to the Wayne Circuit Court before winning election to the Court of Appeals; Judge Michael Riordan, appointed by Governor Rick Snyder this year; Judge Kurtis Wilder, also appointed by Mr. Engler

Senate Conferees Named

Senate Majority Leader Randy Richardville (R-Monroe) appointed the Senate conferees for the Senate’s 16 department budget bills and the House’s two omnibus measures. Senate Appropriations Committee Chairman Senator Roger Kahn (R-Saginaw), Vice Chair Senator John Moolenaar (R-Midland) and Minority Vice Chair Senator Glenn Anderson (D-Westland) will serve on the conference committee for the House’s two omnibus budgets. Senator Kahn will be joined by the respective Senate Appropriations Subcommittee Chairs and Minority Vice Chairs on the conference committees for the 16 budget measures from the Senate.

Tax Proposals See Mixed Results

While millage requests for bond issues in Bloomfield, Brighton, Coloma (school infrastructure), Garden City (public safety), Oak Park (public safety and solid waste) and many others were passed Tuesday, voters also rejected proposals in Allen Park, Grand Rapids Community College (infrastructure) and Ypsilanti (municipal income tax proposal). Those proposals rejected in Allen Park and Ypsilanti were designed primarily to avoid state intervention and may result in preliminary financial reviews.

posted by PAA Online , 10:19 AM
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