MPSERS Reform Stalls – Heads To Conference Committee

Heading into Wednesday’s single legislative session day for July, all eyes were focused on the potential reform to the Michigan Public School Employee Retirement System and whether the House, Senate, and Governor Snyder’s Administration would reach a consensus. An agreement was not reached and the vehicle legislation, Senate Bill 1040, is now bound for a conference committee.

The House of Representatives waited into the evening as Senate Republicans recessed and caucused multiple times; however, ultimately they were unsuccessful in securing the necessary votes to pass the House version (H-3) of the measure. Ten Republicans joined all twelve Senate Democrats in voting no and the legislation failed 16-22. Conference committee members have not yet been announced; however, it is expected not to take too long as the Governor has already made his hopes known that MPSERS reform will be ready for a potential session day on August 15^th.

The Senate has been pushing all along for a plan that included a 401(k)-like defined contribution retirement plan for new hires – something not in the House version of the reform. Another version, a compromise offered by Senators Mark Jansen (R-Gaines Township) and Phil Pavlov (R-St. Clair) was reportedly also discussed but it too fell short of the 20 necessary votes for passage.

Budget Director John Nixon, CPA, seen in and out of the Senate chamber several times throughout the day, stressed the need to address the reform sooner than later.

posted by PAA Online , Friday, July 20, 2012 9:57 AM
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Legislature Finalizes Mortgage Foreclosure Settlement Spending

Michigan joined other states and the Federal Government in entering into a settlement this year with five mortgage companies – Michigan’s share was roughly $800 million. The lion’s share of the settlement went directly to victims of unfair foreclosure practices. The State was left with a bit less than $100 million - $87.2 million of which was contained in a spending plan sent to Governor Rick Snyder on Wednesday.

House Bill 5015, sponsored by House Appropriations Chair Chuck Moss (R-Birmingham) had moved to the Senate in June as an empty vehicle measure. The new plan was inserted, passed by the Senate 31-6, and promptly returned to the House. The House then approved the measure 100-3, sending it to the Governor.

Highlights of the plan include:

· $25 for demolition of blighted residential areas, with $10 specifically for Detroit

· $15 million to the Michigan State Housing Development Authority (MSHDA) for legal aid and counseling services related to foreclosures

· $5 million to the Department of Military & Veterans Affairs specifically for members of the military affected by foreclosure

posted by PAA Online , 9:56 AM
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House Action on Health Exchange Will Await Further Clarity

House Speaker Jase Bolger (R-Marshall) issued a statement Wednesday explaining that, despite ongoing pressure from Governor Rick Snyder, the House of Representatives will not be acting on the health exchange issue until more questions can be answered specifically with regard to the U.S. Supreme Court ruling in SCOTUS Docket 11-393, National Federation of Independent Business v. Sebelius.

The House will instead begin a series of joint legislative committee hearings of the Health Policy Committee and Appropriations Subcommittee on Licensing and Regulatory Affairs Chaired by Representatives Gail Haines (R-Lake Angelus) and Al Pscholka (R-Stevensville), respectively.

Senate Bill 693 was passed by the Senate last November; however, House Republicans have continued to oppose the State’s involvement in the health exchange. The Governor, meanwhile, wishes to have the State develop and implement its own solution rather than be handed a package from the Federal Government.

posted by PAA Online , 9:54 AM
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School Aid Act Rewrite Effort Underway

A key portion of Michigan Governor Rick Snyder’s special message on education is picking up steam – the development of a draft rewrite of the school aid finance act originally written in 1979. Attorney Richard McLellan will be leading the project.

The highest priority of the project will be to create a funding mechanism that relies on student proficiency, based on the concept of funding following the student. The intention of the project is not to focus on funding levels or sources. Further, the project will focus on public education and not touch on the issues surrounding vouchers for parochial and private schools.

Along with Mr. McLellan, Governor Snyder’s Strategy Director, Bill Rustem, and Deputy Legislative Director, Darin Ackerman, will work with chief drafter Peter Ruddell of Wiener Associates to have a draft ready for late fall and the beginning of the 2013-2014 budget debate.

posted by PAA Online , 9:53 AM
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PAAdvisory Briefs

Simonson Passes

Richard “Rick” Simonson passed away at the age of 62. The Baldwin resident, serving in his 36^th year as parliamentarian for the Michigan Republican Party, was executive director of President Gerald R. Ford’s presidential election campaign and served on the Albion College Board of Trustees.

SFA Says June Revenues Bump

With General Fund revenues up more than $87 million and School Aid Fund revenues also in the black by nearly $27 million, the Senate Fiscal Agency pegs June’s revenue an estimated $118 million total over budget. Income tax collects were up 17.6 percent from June of a year-ago to $741.4 million.

Hospital Association Announces Officers

The Michigan Health and Hospital Association announced the new officers of its Board of Directors. The new Board Chair will be William Jackson of Charlevoix Area Hospital; the new Chair-elect will be Dennis Swan of Lansing’s Sparrow Health System; and the new Treasurer will be Thomas DeFauw of Port Huron Hospital.

“Med Mal” Stalls in Senate Insurance Committee

A package of legislation to redefine the standards to bring a medical malpractice suit were the topic of a hearing Wednesday that had attendees well over the room’s capacity and spilling onto Allegan Street outside of the Boji Tower. Senate Bills 1115, 1116, 1117 and 1118 represents a predictable battle between doctors and lawyers. The Senate Insurance Committee did not vote on the measures.

posted by PAA Online , 9:52 AM
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