Much-Anticipated U.S. Supreme Court Ruling Leaves Questions For State

While office-holders and political personalities lined up to react to the United States Supreme Court’s decision regarding the constitutionality of the 2010 Patient Protection and Affordable Care Act, the decision results in many questions regarding its effect on Michigan.

The Supreme Court decided today, in a 5-4 decision, that the vast majority of the provisions with the Act, dubbed “Obamacare” by most opponents, are in-fact constitutional. Chief Justice John Roberts cast the deciding vote and penned the majority opinion for the court in SCOTUS Docket 11-393, National Federation of Independent Business v. Sebelius.

Most significant among the resulting questions is the decision’s impact on Medicaid – specifically what the decision means in barring the Act’s penalization of any state that does not expand Medicaid coverage to individuals earning as much as 133-percent of the federal poverty line.

Additionally in the air for Michigan is pending action on legislation authorizing a state health exchange. The Senate passed Senate Bill 693 last November; however, despite urging by Governor Snyder, the House decided to await the Supreme Court’s decision. Proponents of the measure argued that it is better to pass a version with input from Michigan policy makers than be required to implement what is delivered to them by the Federal government. Now with the Supreme Court upholding the law, some policy makers, including Michigan Attorney General Bill Schuette and House Health Policy Committee Chair Representative Gail Haines (R-Lake Angelus) believe the House should wait until after the November Presidential Election.

Also affected is the State’s largest insurer, Blue Cross Blue Shield of Michigan. By current statute, the Blues are Michigan’s insurer of last resort – required to insure those with preexisting conditions or who were otherwise denied coverage by other insurers. The individual market reforms included in the Act require all insurers to do as much after 2014, requiring associated changes in the enabling laws in Michigan.

Finally, and likely most significantly, is the political fall-out of the decision during an election year. Members of both parties, from party leaders to office-holders to grassroots members reacted with loud voices Thursday over social media outlets, radio, press conferences – to anyone that would listen. Based on the buzz, there is little doubt that the decision will have an immediate energizing effect on those opposed to the Act – generally Republicans and other conservative interests. What remains to be seen is whether this issue may serve to unite GOP factions prior to the August party primary election and if the energy will be sustained through the first Tuesday of November. It will also be interesting to see how the decision will work to energize the Democratic base, the immediate winners Thursday.

posted by PAA Online , Friday, June 29, 2012 11:05 AM
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Capital Outlay Signed – More Than $300 Million To Higher Ed Facilities

Governor Rick Snyder signed House Bill 5541 into law Monday at Wayne State University. The fiscal year 2013 Capital Outlay budget, sponsored by Representative Eileen Kowall (R-White Lake), includes approximately $304 million for 18 projects at higher education institutions statewide.

Highlights include:

$30 million to Grand Valley State University for an office and classroom building and science lab

$750,000 to Bay de Noc Community College for remodeling of the nursing lab and lecture hall

$8.9 million to Mid-Michigan Community College for Mt. Pleasant campus unification

In addition to Grand Valley, other institutions receiving $30 for projects include Central Michigan University, Michigan State University, Oakland University, the University of Michigan – Ann Arbor, the University of Michigan – Dearborn, and Wayne State University. The final product was very similar to the Governor’s budget recommendations for increased investment in higher education.

posted by PAA Online , 11:03 AM
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Timmer Out, Pero In On Board Of State Canvassers

Jeffrey Timmer announced earlier this week that he has resigned from the State of Board Canvassers as the position was consuming too much of his time. The resignation was effective June 18^th.

Appointed to replace Timmer on the Board is Colleen Pero, currently a public affairs consultant and former special counsel and state affairs director to Governor John Engler. Ms. Pero will serve the remainder of Timmer’s 4-year term which expires January 31, 2013.

The Board is, by statute, composed of two Republicans and two Democrats and will be very busy in coming months certifying ballot proposals and developing ballot initiative description language.

posted by PAA Online , 11:02 AM
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Strategic Fund Board Approves Bridge Plan

The Michigan Strategic Fund (MSF) Board unanimously approved the plan under which the New International Trade Crossing will move forward with a vote Wednesday. Lt. Governor Brian Calley Canadian Counsel General Roy Norton and a group of legislators, including Republicans John Walsh (R-Livonia) and Al Pscholka (R-Stevensville), provided testimony before the Board urging approval.

The MSF’s role in the agreement will be to acquire the land necessary to accommodate the bridge, provide access to the bridge, and construct buildings for customs and offices on the U.S side.

The primary opposition at Wednesday’s hearing came from the Americans for Prosperity organization, claiming that taxpayers will end-up footing the bill for the bridge – an argument the Governor and many other stakeholders vehemently deny.

posted by PAA Online , 11:00 AM
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Executive Changes At DNR And MDARD

As reported in last week’s PAAdvisory, Michigan Department of Natural Resources (DNR) Director Rodney Stokes has departed his cabinet position and moved to the Executive Office to a position as a special advisor on city “placemaking” where he will work with communities on ensuring ample recreational opportunities and green space are present.

Monday, Michigan Governor Rick Snyder announced that Keith Creagh, currently the Director of the Michigan Department of Agriculture and Rural Development, will succeed Mr. Stokes as Director of the Department of Natural Resources. Mr. Creagh has had a career or more than 30 years with the Department of Agriculture.

Taking Mr. Creagh’s place at the Michigan Department of Agriculture and Rural Development will be Jamie Clover Adams, currently the policy director for the Michigan Department of Environmental Quality. A former Director of the Kansas Department of Agriculture, Ms. Clover Adams was a finalist for the Michigan post as early as 2007 when former Senator Don Koivisto was named Director by the Michigan Agriculture Commission.

posted by PAA Online , 10:57 AM
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PAAdvisory Briefs

Governor Signs Bottle Deposit Exemption

House Bill 5660, sponsored by House Majority Floor Leader Jim Stamas (R-Midland), is now Public Act 213 of 2012 after receiving the Governor’s signature. The measure effectively reverses a ruling by the Department of Treasury that alcoholic beverages sold in flexible pouch containers are subject to the State’s 10-cent bottle deposit law. Since the statute creates a special exemption from the law by amending the Michigan Constitution, three-quarters approval was necessary in both chambers of the Legislature.

Phony Candidate Appears in 11^th Congressional Race

A new candidate appeared on Facebook very early this week – appearing to be launching a new write-in campaign for the 11^th Congressional Direct. One problem – he doesn’t exist. The 62-year old “Dan Anderson” used stock photos of a British male model and President Obama’s “Register for Change” bus. There is no Dan Anderson of the specific age given registered to vote in Birmingham according to the Secretary of State’s office. The Facebook page appears to be a scam to confuse GOP Primary voters currently faced with the choice between 11^th District candidate Kerry Bentivolio, the Tea Party-supported candidate on the ballot, and former State Senator Nancy Cassis, running a write-in campaign.

Executive Order Eliminates MEGA Board

Governor Rick Snyder issued an Executive Order Tuesday (E.O. 2012-9) eliminating the Michigan Economic Growth Authority (MEGA) Board and the Michigan Next Energy Authority and transferring the functions of both to the Michigan Strategic Fund Board. The E.O. also transfers the Michigan general corporations act, non-incorporated private educational institutions act and prevailing age on state projects act to the Department of Licensing and Regulatory Affairs (LARA).

Agricultural Disaster Bill Signed

House Bill 5717, sponsored by State Representative Ray Franz (R-Onekama) was signed into law Tuesday by Governor Snyder with the support of much of Michigan’s agricultural industry. The legislation provides for loans to farmers who suffered significant losses due to this Spring’s high temperatures and subsequent freezes and requires a one-time $15 million appropriation for costs. Estimates of Michigan’s loss, including apple, tart and sweet cherry, peach, and juice grape crops are greater than $200 million.

posted by PAA Online , 10:56 AM
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