Budget Targets Agreed To- Conference Reports Rolling

Michigan Governor Rick Snyder, Senate Majority Leader Randy Richardville (R-Monroe) and Speaker of the House Jase Bolger (R-Marshall) may have little trouble meeting their self-imposed June 1^st deadline for legislative approval of the 2012-2013 fiscal year budget based on action taken this week, and action imminent for next week.

With the Legislature not leaving Lansing for the annual Mackinac Policy Conference, focus will be on reaching agreement and moving conference reports.

Highlights of the targets include $90 million set aside for income tax adjustments (see related story), and $140 million to the budget stabilization (“rainy day”) fund. The targets, in more detail, are:

Total

Department/Budget Area TOTAL GF/GP

Agriculture and Rural Development $36,098,900

Attorney General $33,825,800

Civil Rights $11,953,600

Community Health $2,817,437,800

Corrections $1,941,485,600

Education $68,093,200

Environmental Quality $29,812,400

Executive $4,887,900

Human Services $1,011,143,900

Judiciary $170,751,500

Legislative Auditor General $13,004,900

Legislature $109,412,700

Licensing and Regulatory Affairs $50,570,900

Military and Veterans Affairs $38,233,400

Natural Resources $19,737,900

State $14,888,100

State Police $317,513,800

Technology, Management and Budget $405,916,200

Transportation $23,000,000

Treasury-Debt Service $135,040,400

Treasury-Operations $88,347,100

Treasury-Strategic Fund Agency $173,701,600

Subtotal State Departments $7,514,857,600

Community Colleges $96,516,400

Higher Education $1,101,628,300

School Aid $282,400,000

Subtotal Education $1,480,544,700

Total State Departments and Education $8,995,402,300

The Legislature wasted little time – in fact, the conference reports for the Department of Environmental Quality and the Department of Natural Resources were signed Thursday. Nine more conference committees are expected to meet on Tuesday, May 29^th.

The reported potential sticking points are the Senate, House, and Executive variances on some higher education items, such as how to distribute a scheduled 3 percent increase to Michigan’s fifteen public universities and how to handle the issue of reporting research on embryonic stem cells.

posted by PAA Online , Friday, May 25, 2012 10:12 AM
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Budget Deal Includes Income Tax Rate Cut, Personal Exemption Increase

Within the budget targets Governor Rick Snyder, Senate Majority Leader Randy Richardville (R-Monroe), and House Speaker Jase Bolger (R-Marshall) agreed to Wednesday was $90 million to make adjustments in the individual income tax structure.

Legislation will be introduced next Tuesday by two freshman representatives in vulnerable seats. This legislation would return $90 million to Michigan taxpayers through adjustments to the individual income tax rate and personal exemption amount.

Representative Ed McBroom (R-Vulcan) will introduce a bill to reduce the individual income tax rate from 4.35 percent to 4.25 percent effective October 1, 2012. The rate is schedule to do so on January 1^st of 2013 – the legislation will accelerate the schedule.

Representative Holly Hughes (R-White River Township) will introduce a bill to increase the personal exemption by $250 (from $3,700 to $3,950) effective October 1, 2012, an additional $50 on January 1, 2014 and yet another $100 on January 1^st of 2017.

Estimates vary on the direct dollar impact the proposals would have on Michigan taxpayers.

posted by PAA Online , 10:11 AM
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MSPERS Reform passes Approps Committee- Awaits House Floor Action

The House Appropriations Committee passed their version of Senate Bill 1040 Thursday, legislation providing for significant reforms to the Michigan Public School Employee Retirement System (MPSERS). The measure passed on a straight 17-10 party line vote with Republicans supporting and Democrats opposing.

The vote followed significant debate this week, mostly with regard to how the reform will affect charter schools. The House’s intention is reportedly to pass the measure quickly to ensure the Governor is able to sign the reform along with the 2012-2013 budget bills.

With the latest version of the bill passed Thursday, teachers with a traditional pension that were hired prior to 2010 will be allowed to remain on a pension; however, they would be required to contribute more or see their multiplier decreased. The House also amended their version following the discussion with charter schools to allow charter schools to continue paying towards MPSERS unfunded liability based on payroll rather than operating expenditures.

The House and Senate versions differ significantly however, the agreed-upon budget targets included $130 million for MPSERS pre-funding, a sign of the direction of the ultimate agreement on reform.

posted by PAA Online , 10:10 AM
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Senate Unanimously Moves Work Sharing Proposal

Legislation to permit an employer to reduce affected employees’ work hours while permitting the employees to receive reduced unemployment benefits unanimously passed the Senate Wednesday.

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 receive reduced benefits while still working, the measure could prevent a significant number of layoffs as has been noted in other states.

Senator Vincent Gregory (D-Southfield) attempted to amend the measure and increase the number of weeks of state unemployment back to 26 weeks instead of the current 20 weeks. The amendment failed with only Senator Tory Rocca (R-Sterling Heights) voting with Democrats.

posted by PAA Online , 10:09 AM
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Court of Appeals Rules on Financial Review Teams

A Michigan Court of Appeals panel ruled Tuesday in three consolidated cases (Davis v. City of Detroit Financial Review Team et al, McNeil v. City of Detroit Review team et al, and Muma v. City of Flint Financial Review Team et al), determining that the special review teams appointed by the state under Public Act 4 do not have to meet in public.

The anticipated decision, most certainly a win for Governor Snyder and State Treasurer Andy Dillon, found that the financial review teams are not governing bodies nor are they empowered to make decisions. The three judge panel included Judge William Whitbeck, Judge Michael Kelly and Judge Peter O’Connell.

Union activist Robert Davis, named in one of the cases, has indicated his intention of appealing the decision to the State Supreme Court.

posted by PAA Online , 10:09 AM
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PAAdvisory Briefs

Beach Owners Closer to Grooming Rights

Senate Bill 1052 passed the Senate this week 26-11 on mainly party lines. The measure, sponsored by Senator Tom Casperson (R-Escanaba), allows property owners to groom beaches without obtaining a permit from the Department of Environmental Quality. The legislation now awaits a hearing before the House Natural Resources, Tourism and Outdoor Recreation Committee.

Detroit Financial Advisory Board Appointments Made

With this week’s appointment of former Ford Motor Company executive Dr. Ronald Goldsberry and last week’s appointment of Marygrove College President Emeritus Dr. Glenda Price, Governor Rick Snyder has finished his three appointments to the Financial Advisory Board created by the Consent Agreement with the City of Detroit. Seven of the nine members have been appointed in all, the two remaining belonging to the Detroit City Council who is delaying action pending the outcome of a legal challenge to the Consent Agreement.

Unemployment Down in All Markets in April

All of Michigan’s 17 major labor markets saw declines in unemployment rates in April – some significant, ranging from 1.1 to 2.4 percent. Predictably, the largest decreases were realized in the state’s northern most regions where seasonal hires have begun. Eight of Michigan’s regions claimed April rates at or below the national average.

Karelse Named President of Funeral Directors

The Michigan Funeral Directors Association announced Ronald Karelse was elected President. Mr. Karelse is Vice President of the Heritage Life Story Funeral Homes in Grand Rapids. The MFDA represents 1,300 funeral directors and roughly 650 funeral homes statewide.

Bottle Deposit Change Unanimously Passed

The House Regulatory Reform Committee approved legislation Wednesday to exclude flexible pouch containers from the state’s bottle deposit law. House Bill 5660, sponsored by House Majority Floor Leader Representative Jim Stamas (R-Midland) was reported 11-0 and prohibits the containers from being redeemed for deposit in Michigan stores.

posted by PAA Online , 10:08 AM
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