Michigan Governor Rick Snyder took to the podium in the State’s Cadillac Place office Thursday afternoon and, flanked by Detroit Mayor Dave Bing, solemnly spoke the words most have described as inevitable for quite some time. Just two days after the appeal hearing requested by the Detroit City Council, the Governor declared the financial emergency and introduced the man who would take the operational reins of State’s largest city.

Washington, DC-based lawyer Kevyn Orr, a turnaround and bankruptcy attorney with the international law firm of Jones Day, will be paid $275,000 per year for the position, which he has termed “the Olympics of restructuring.” The Chevy Chase, Maryland resident resigned from his partnership with Jones Day, where he was slated to open a new office in Miami.

Orr received both his undergraduate and law degrees from the University of Michigan.

In somewhat of a surprise development, the Detroit City Council has opted not to continue its appeal of the financial emergency declaration and EFM appointment. Council member JoAnn Watson had prepared a proposal for the Council to consider providing for the hiring of the Sugar Law Center to represent the Council in the Circuit Court. After an hour in closed session with the city’s lawyers, Council members reappeared and Watson withdrew her motion.

State Representative Jim Ananich (D-Flint) enjoyed a comfortable victory over a crowded field in Tuesday’s Democratic primary for the 27th Senate District seat. The seat was left vacant by the current Genesee County Clerk, former State Senator John Gleason. Representative Ananich credits his victory to his effective grassroots campaign as well as his work ethic.

In a primary where more than 16,000 people voted, Rep. Ananich picked up 51.3 percent of the votes. Fellow State Representative Woodrow Stanley (D-Flint) was the other major vote-getter in the five-person race, obtaining 37.8 percent of the vote. Genesee County Commissioner Ted Henry finished third with 10.2 percent.

The next step in the process is the special general election on May 7th, where Representative Ananich will run against Republican Robert Daunt. Mr. Ananich is heavily favored in the strongly Democratic seat. The Democrats outnumbered the Republicans by an 8-to-1 margin in Primary turn-out numbers this week.

Early this week, the Senate Outdoor Recreation and Tourism Committee approved a handful of bills (SB 218, SB 243, SB 252) that are aimed at creating an emergency loan program for dredging at private marinas. The legislation would also earmark a specific amount of state funding to dredging for the next three years.

SB 218 unanimously was reported and would allow water resource improvement tax increment finance authorities to dredge territories and shorelines of the Great Lakes harbors.

SB 243 was reported with much more hesitancy because it would create a series of regulations on the state’s dredging program. This bill would require the Department of Natural Resources to conduct an assessment (every three years) of all Michigan harbors to determine if dredging and/or infrastructure improvements are necessary.

SB 252 would specifically set up the loan program which has the state paying 5 percent of the loan’s principal with loans limited to five-year terms and a maximum cost of $500,000 per marina.
Thursday, the full Senate acted on the proposals, moving the measures to the House of Representatives for consideration.

The same committee also acted on two more dredging-related measures later in the week – SB 229 and SB 264. The prior is the subject of great debate regarding the intent of the Natural Resources Trust Fund and the authority (or lack thereof) of the Legislature to change the use of those dollars. The latter serves to streamline the permit process for dredging.

As a bit of time has passed since U.S. Senator Carl Levin’s announcement that he will not seek re-election in 2014, the field of both Democratic and GOP contenders is just beginning to take shape – mostly as some make clear their intentions not to run.

This week, Scott Romney added his name to those not seeking the office, which also includes current Michigan Attorney General Bill Schuette.

Names that remain in discussions include Lt. Governor Brian Calley, State Senator Roger Kahn (R-Saginaw), and State Representative Pete Lund (R-Shelby Township); however, those leading the same discussions at the moment appear to be U.S. Congressman Mike Rogers (R-Brighton), U.S. Congressman Justin Amash (R-Kentwood) and former Secretary of State and Republican National Committeewoman Terri Lynn Land.

Meanwhile on the Democratic side, the path currently appears to be paved for current U.S. Congressman Gary Peters (D-Bloomfield) as other Democratic office holders line up in support.

State Superintendent of Public Instruction Mike Flanagan has indicated that he is also considering a run.

In the March 8th edition of PAAdvisory, readers were asked if they would support an increase in the Michigan Sales Tax rate from 6 percent to 7 percent to provide additional funding to education in Michigan.

Only 29 percent of respondents replied “yes,” while 71 percent answered “no.”

Richardville Hopes Senate Will Vote on Health Insurance Exchange
Senate Majority Leader Randy Richardville (R-Monroe) is still hopeful that the upper chamber will conduct a vote this month on a proposal to enact a state-federal health insurance exchange. House Bill 4111 recently passed the House, providing $31 million in federal money to cover the start-up costs of the state-federal exchange. The bill was passed with support of Republicans, however; some admittedly are unhappy about having to pass the proposal. They explained that supporting this proposal was better than allowing the exchange to be federally run only.

Senate Panel Moves Pharmacy Technician Licensing Bill
The Senate Regulatory Reform Committee unanimously moved SB 92 this week, providing for a licensing structure for pharmacy technicians working under the supervision of a pharmacist. The measure, sponsored by Senator Mike Green (R-Mayville) contains a $20 application fee and $15 license renewal fee.

Committee Shake-up for Olumba
State Representative John Olumba (I-Detroit) was removed from his policy committee positions this week by House Speaker Jase Bolger (R-Marshall) and placed on the House Appropriations Committee. He will serve on the Community Health, Corrections, and Fiscal Oversight subcommittees. Representative Marcia Hovey-Wright (D-Muskegon) will replace Rep. Olumba on the House Insurance Committee; Rep. Jim Townsend (D-Royal Oak) will replace him as Minority Vice Chair of the House Oversight Committee, and Rep. Brian Banks (D-Harper Woods) will replace him on the House Criminal Justice Committee.

Kilpatrick Convicted
Former Detroit Mayor Kwame Kilpatrick’s lengthy jury trial came to an end this week as he was convicted of 24 counts of corruption dating back to his time as Minority Leader of the Michigan House of Representatives. Kilpatrick and longtime friend and contractor Bobby Ferguson, also convicted on multiple accounts, are being held without bail until their sentencing. Kilpatrick’s father, Bernard Kilpatrick, was also convicted on one count; however, he is not being held.