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House Appropriations General Government Subcommittee Moves Budgets
The House Appropriations General Government
Subcommittee met early this week while the Legislature is on Spring Break and
moved budgets for several of Michigan’s departments, some a bit more
controversial than others.
At the top of the list was House
Bill 4220 which, similar to other budget policies moved in recent weeks,
ties a portion of statutory revenue sharing funds for local units to whether or
not labor contracts have been renewed.
This is viewed by some as an attempt to avoid the right-to-work law.
Under the bill, which passed on a 4-2 straight party-line vote, one of the
three requirements for a city, county, township, or village to obtain funding
from the Economic Vitality Incentive Program is not to enter into a new labor
contract between December 10, 2012 and March 28, 2013 unless the contract would
save more than 10 percent.
Republicans have claimed that many public
employers, including universities, community colleges, cities, etc. have rushed
to renew labor contracts or sign new contracts prior to the March 28, 2013
effective date of the right-to-work law passed late last year.
The subcommittee also passed budgets for:
The
Department of Treasury: $2.70 billion, a 1.1 percent decrease from last year,
including $4 million to the Pure Michigan campaign and a 50 percent cut in the
film incentive program funding from $50 million to $25 million.
The
Department of Technology, Management & Budget: $1.2 billion, an
increase of $21 million over last year (1.8 percent) but still $22 million less
than the Governor’s recommendation.
The
Legislature:
$119.9 million, a $4.7 million increase (4.1 percent) over last year.
The
Department of Civil Rights: $14.6 million, including new operational reporting
requirements and a requirement that the Department notify the Legislature and
State Budget Office before submitting a complaint to the federal government.
The
Department of State:
$218.9 million, a $1.7 million decrease (.8 percent) from last year.
The
Auditor General:
$21.7 million, a $2.7 million increase (14.6 percent) over last year.
The
Attorney General:
$89 million, a $3.9 million increase (4.6 percent) over last year.
Michigan Cities with Emerging Downtowns
Detroit and Grand Rapids have both been
included in Forbes Magazine’s list of 15 U.S. Cities’ Emerging Downtowns. Both
cities can make a claim, to some extent, that it’s attributed to the revamping
of local commercial and residential real estate. More specifically, Grand
Rapids can give praise to the booming medical industry, while Detroit can
praise the influx of young professionals.
Detroit can credit, in large part, its real
estate transformation to QuickenLoans founder and billionaire Dan Gilbert who
has relocated many of his businesses to the area as well as spending millions
to redevelop the area’s commercial real estate.
Grand Rapids, on the other hand, has
converted more than a dozen abandoned office buildings and warehouses into
remodeled residential, retail and office spaces. Another improvement is the $30
million Downtown Market set to open this upcoming summer.
Affirmative Action Case to be Heard by U.S. Supreme Court
Certiorari was issued on Monday by the U.S.
Supreme Court for the case that Michigan Attorney General Bill Schuette
appealed after the U.S. Court of Appeals ruled the 2006 Michigan proposal was
unconstitutional.
The Country’s highest court will hear
arguments on whether the 2006 Michigan voter-approved constitutional amendment
banning affirmative action violates the U.S. Constitution’s equal protection
clause. The proposal outlaws affirmative action in universities and government
on the basis of race and sex. In the 2006 election the proposal received 58
percent approval among the 600,000 voters.
Mr. Schuette sounded optimistic that the
proposal would be upheld by the Supreme Court and noted that acceptance into
one of Michigan’s great universities should be solely based on merit. Opponents
and proponents alike praised the decision by the U.S. Supreme Court to hear the
appeal. Both sides have interest because if Michigan’s ban is overturned it
could lead to the overturning of California’s ban and possibly other states as
well. Proponents believe that a successful appeal at the Supreme Court level
will establish the right of the public to pass decisions on issues such as
affirmative action.
March 22nd Survey Results
In the March 22nd edition of PAAdvisory, readers were asked, “given U.S. Senator Carl Levin’s recent announcement that he will not be seeking re-election, considerable speculation remains with regard to who will run for the open seat in 2014. Who do you believe will be the Democratic nominee?”
An overwhelming 79 percent of respondents believe U.S. Representative Gary Peters (D-Bloomfield) will receive the Democratic Party’s nomination. Others receiving votes were State Senator Gretchen Whitmer (D-East Lansing) and former U.S. Representative Mark Schauer.
PAAdvisory Briefs
Orr’s
Spokesperson to be Bill Nowling
The spokesperson for Detroit Emergency
Financial Manager Kevyn Orr will be Bill Nowling. Mr. Nowling is currently
working at the Duffey Petrosky public relations firm in Farmington Hills and is
also known for his work as Governor Rick Snyder’s campaign spokesperson for the
2010 general election. He has also worked as spokesperson for former Senate
Majority Leader Ken Sikkema as well as communications director for the House
Republicans.
Increase
in Wage and Salary Employment for January
The month of January saw an increase in both
the wage and salary employment for the state of Michigan. It marked the largest
one-month increase (27,000 jobs) since January of 2000. The increase was most
notably driven by the transportation equipment manufacturing sector, which
contributed 16,000 jobs. On the national level the unemployment rate increased
from 7.8% to 7.9%, however; the 7.9% was down from the 8.3% of one year ago.
Motorcycle
Helmet Requirement Repeal Numbers Released
At a traffic safety summit this week
organized by the Michigan Office of Highway Safety Planning, the first numbers
were released since the State’s motorcycle helmet law was repealed. Studies
showed that during the months of April – December in 2008 through 2011,
helmet-use rate was 98 percent; however, during the same months in 2012, after
the repeal, helmet-use rate dropped to 74 percent. Researchers estimated that,
had every rider been wearing a helmet in 2012, there would have been 26 fewer
deaths and 49 fewer injuries.
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