Fiscal Year 2014 Executive Budget Recommendations Presented

Michigan Governor Rick Snyder presented his fiscal year 2014 budget recommendations Thursday to a joint hearing of the House and Senate Appropriations Committees. The overall spending package calls for a roughly 5.2 percent increase over the 2013 fiscal year budget, to a total of $50.1 billion.

The entire budget presentation is available online here.

The budget growth is due largely to the Governor’s $1.2 billion revenue enhancement package for transportation and infrastructure funding and a recently announced Medicaid expansion.

Significant highlights of the Governor’s budget recommendations include:

$727.7 million in new revenue from a gas tax increase (moving to a wholesale gas tax formula, representing an effective 14 cents per gallon increase)
$508.3 million in new revenue from increase vehicle registration fees (60 percent increase for automobiles, 25 percent increase for trucks and trailers)
$11.8 million in new revenue from Department of Natural Resources (DNR) fee increases
$11.6 million for the Healthy Kids Dental Program, expanding to 3 new counties
A 2 percent increase in K-12 education to $13.2 billion
$65 million increase to the Great Start Readiness Program for early childhood education
A total of $21 million for dredging the State’s waterways
Increase to the Pure Michigan campaign of $4 million to $29 million total
$75 million to the Budget Stabilization Fund (“Rainy Day Fund)
A range of 1.3 to 2.2 percent increases for the 28 community colleges
A range of .2 to 5.1 percent increases for the 15 public universities

posted by PAA Online , Friday, February 8, 2013 10:14 AM
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Johnson Challenges Incumbent Brewer For MI Dem Party Control

On Tuesday, the state’s seven Democratic members of Congress signed a letter which entailed the steps necessary to build a stronger party and confirmed their support of Lon Johnson as its chair. The Congressional members include: United States Senators Carl Levin (Detroit) and Debbie Stabenow (Lansing), and U.S. Representatives John Conyers (Detroit), John Dingell (Dearborn), Dan Kildee (Flint), Sander Levin (Royal Oak), and Gary Peters (Bloomfield Township). Mr. Johnson also received endorsement from United Auto Workers (UAW) President Bob King.

Mr. Johnson formally declared his candidacy for Party Chair and finalized it by releasing his website, www.lonjohnson.com. His endorsers believe he will bring a sense of hard work, vision and energy that will help to unite the party.

Mr. Johnson’s counterpart, Mark Brewer, has been Democratic Party chair for the past 18 years and expects to last two more. Mr. Brewer responded to the Democratic members of Congress, by announcing endorsements from 36 County Party chairs and four Congressional District Party chairs (1^st, 2^nd, 4^th, and 9^th districts). Also, the Michigan Education Association reaffirmed its support for Mr. Brewer.

Mr. Brewer plans to get re-elected by promoting sound financial management of party operations, expanding the number of constituency caucuses to build the party, fighting Republicans aggressively, and maintaining a strenuous schedule of traveling in the state to interact with Democratic leaders.

There are a few unknowns going into the party’s February 23 convention at Cobo Center in Detroit. The candidates are in a frantic race to gain support from the American Federation of State, County and Municipal Employees and the Service Employees International Union.

The race to become the next Democratic Party chair will be intense but both sides hope the contest stays amicable and not divisive.

posted by PAA Online , 10:13 AM
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In Or Out? Questions Surround Senator Levin's 2014 Bid

Largely drowned-out by the ongoing talk of the race for Chair of the Michigan Democratic Party (see related article) is the talk about whether or not long-time incumbent U.S. Senator Carl Levin (D-Detroit) will again seek re-election for another six-year term.

Senator Levin, now 78, will be 80 by the time the 2014 election rolls around and has previously stated publically that he has no desire to “die in office.”

Further adding to the speculation is Senator Levin’s lack of fundraising efforts in 2012. Those close to the Senator; however, have responded that historically Senator Levin has not begun to raise campaign resources until the year prior to the actual election. Others are also quick to point out that the Senator’s seniority and long-time commitment to the state makes any challenge almost “token” in nature, requiring little fundraising.

In the case of a retirement by Senator Levin, the next obvious question is who will be ready to run for the statewide seat. The obvious front-runner at the moment is U.S. Representative Gary Peters (D-Bloomfield), reportedly very close to Senator Levin.

posted by PAA Online , 10:11 AM
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House Receives 'Sales Tax On The Difference' Legislation From Senate

Senate Bill 89 and Senate Bill 90 passed the Senate Wednesday and will now make their way to the House of Representatives for consideration. The measures passed on 36-2 and 36-0 votes, respectively. Senators Roger Kahn (R-Saginaw) and Coleman Young (D-Detroit) voted against the bills.

The two bills propose a 10-year phase out process that would exclude, from sales and use tax, the value of a trade-in on a new or used motor vehicle, watercraft, or recreational vehicle. 10 percent of the agreed upon value will be exempt from taxation with the exemption amount increasing by 10 percent each year for 10 years. Senator Dave Robertson (R-Grand Blanc) is the sponsor of the legislation.

The Senate amended the measures in two ways – first, by making the language applicable to automobiles implemented by “fiscal year” as to coincide with the budget and, secondly, by changing the effective date for watercraft to immediately as opposed to June 1, 2013 as introduced.

Revenue impact estimates are roughly $240 million over the 10 years.

posted by PAA Online , 10:10 AM
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Last Week's Survey Results

In the February 1^st edition of PAAdvisory, readers were asked if they believe the overall environment in the Legislature will be one of more or less cooperation than last session?

60 percent of readers expect the cooperative nature of this session’s environment to be about the same, while an equal 20 percent believe it more cooperative and less cooperative.

posted by PAA Online , 10:09 AM
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PAAdvisory Briefs

Senator George Hart Passes
Known as “the singing Senator,” former State Senator George Hart of Dearborn passed away. He was 88. Hart served in the Senate from 1978 – 1982 and again from 1986 – 2002 when he left due to term limits. Known for the frequency in which he would break into song on the Senate floor or at local events in Dearborn, Hart was a World War II Veteran, longtime member of the Dearborn City Council and Wayne County Commission. Having married his longtime companion Catherine last December, Hart passed while on vacation in New Mexico.

“Main Street Fairness Act” Introduced

Legislation introduced by Representatives Eileen Kowall (R-White Lake) and Robert VerHeulen (R-Walker) this week would require out-of-state retailers to collect the 6 cent sales and use tax on Michigan consumers, proposing to bring equity between the online retailers and their brick-and-mortar counterparts. House Bills 4202 and 4203 were introduced with considerable bipartisan co-sponsorship and referred to the House Tax Policy Committee.

House Committee Changes Announced

House Speaker Jase Bolger (R-Marshall) announced some changes in committee assignments Wednesday. Representative Kenneth Kurtz (R-Coldwater) replaced Representative Andrea LaFontaine (R-Columbus) on the Agriculture Committee, while Representative LaFontaine then replaced Representative Amanda Price (R-Park Township) on Judiciary. Also on Judiciary, Representative Philip Cavanaugh (D-Redford Township) replaced Representative Robert Kosowski (D-Westland), who then also switched places on the Military and Veterans Affairs Committee. Finally, Representative Price replaced Representative Pete Lund (R-Shelby Township) on Tax Policy.

posted by PAA Online , 10:07 AM
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Question of the Week 2/8/2013

posted by PAA Online , 9:00 AM
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