Senate Appropriations Moves Fifteen Budgets to Senate Floor

The full Senate Appropriations Committee met Wednesday and Thursday, moving six budgets to the full Senate Wednesday and another nine on Thursday.

On Wednesday, the Department of Human Services budget saw the most changes from the Subcommittee version, with several amendments being added. Senator Vincent Gregory (D-Southfield) earned a rare amendment from a Democrat, adding $500,000 back into the budget for the Chaldean Community Foundation. Senator John Moolenaar (R-Midland) restored $100,000 through an amendment to the 2-1-1 program, considered the 911 of health and human services. The budget ultimately passed 11-3 with Senators Morris Hood III (D-Detroit), Hoon-Yung Hopgood (D-Taylor), and Bert Johnson (D-Highland Park) voting “no,” and Senator Gregory abstaining.

The topic of utilizing School Aid Fund money in budgets outside of the K-12 budget was again discussed during the deliberations on the Community Colleges budget Wednesday. Senator Glenn Anderson (D-Westland) attempted to amend the budget to utilize General Fund appropriations rather than School Aid Fund dollars and won the support of two Republican colleagues, Senators Patrick Colbeck (R-Canton Township) and Mike Green (R-Mayville). The amendment still failed 7-9.

The Community Colleges budget ended up passing by the slimmest of margins, 9-7, with Senators Green and Colbeck voting “no” with all Democrats.

Wednesday’s Committee action also saw the School Aid, Higher Education, Judiciary, and Corrections budgets move to the Senate floor.

Thursday’s action was highlighted by the General Government budget, which included lengthy deliberations over the issue of Internet Lottery sales. Subcommittee Chairman Senate John Pappageorge (R-Troy) wanted to make sure the Senate-passed version of the budget differed from the House-passed version to ensure a policy decision was made. The $3.35 million for 10 full-time equivalents ultimately was removed from the Senate budget. Also of note is the absence of any appropriation to the state’s Budget Stabilization, or “rainy day,” Fund.

Education, State Police, Military & Veterans Affairs, Natural Resources, Environmental Quality, Agriculture & Rural Development, Licensing & Regulatory Affairs, and Insurance budgets were also moved in Thursday’s hearing.

posted by PAA Online , Friday, April 19, 2013 10:34 AM
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Federal Sequester Causes Spending Cuts; No Layoffs to State Employees

The automatic spending cuts that took place on the Federal level, through the process known as sequestration, will not result in layoffs for state employees according to Governor Rick Snyder. Several weeks ago, six layoffs were planned with the necessary paperwork being issued by state departments and agencies to provide the required notice to state employees; however, Governor Snyder’s administration was able to avoid any layoffs. The state will lose a total of $150.5 million in federal funds for programs this year and in future years.

The children’s clothing allowance, the state-funded program providing $137 annual allowance for 21,000 children, is completely eliminated. Other spending cuts were more or less automatic due to the reduction in federal grants and the decision of Governor Snyder to not replace federal dollars with state dollars.

In total, fiscal year 2012-13 will have program reductions of about $59.2 million and fiscal year 2013-14 will have another $91.3 million in reductions. Due to federal funding cuts the state will have spending reductions in education totaling $54 million. They will be specifically in special education services, Title I, career and technical education, after-school programs, teacher quality grants, and other categorical grants.

posted by PAA Online , 10:33 AM
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Review Team Appointed for Hamtramck

Michigan Governor Rick Snyder has appointed a financial review team to look into the finances of Hamtramck under Public Act 436 of 2012. The review is a step toward the potential appointment of an emergency financial manager if a financial emergency is declared. Hamtramck was previously under an emergency financial manager from 2000 – 2007.

The Department of Treasury already conducted a preliminary review at the request of Hamtramck and found an unsatisfactory deficit elimination plan, unfunded pension and other post-retirement benefit liabilities, and budget practices non-compliant with the Uniform Budgeting and Accounting Act.

The review team will be composed of:

Max Chiddister, President of Chiddister and Associates
Frederick Headen, Department of Treasury Legal Advisor
Ed Koryzno, Administrator of The Department of Treasury’s Office of Fiscal Responsibility
Eric Lupher, Citizens Research Council of Michigan Director of Local Affairs
Doug Ringler, Director of the Department of Technology, Management & Budget’s Office of Internal Audit Services

The review team has 60 days to present their findings and can request an additional 30-day extension.

posted by PAA Online , 10:32 AM
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Congressional Campaign Finance Reports in - Peters Among Top Fundraisers

U.S. Congressman Gary Peters (D-Bloomfield Township) reported significant funds raised in his first quarter campaign finance report, further fueling speculation that he is positioning himself for a run at the U.S. Senate seat being vacated by retiring Senator Carl Levin (D-Detroit). Mr. Peters raised $370,916 from January 1^st to March 31^st of 2013, ending the period with $813,386 in cash on-hand.

Most see the race for the Democratic nomination down to Mr. Peters and Debbie Dingell, wife of U.S. Representative John Dingell (D-Dearborn) and member of the Wayne State University Board of Governors.

On the GOP-side, the top fundraiser was U.S. Representative Fred Upton (R-St. Joseph), reporting $475,607 raised and $389,099 in cash on hand. Congressman Mike Rogers (R-Brighton) is in the best cash on hand position with roughly $1.4 million, raising $164,500 for the first quarter.

Also among those reportedly considering a run for the Senate, U.S. Representative Justin Amash (R-Cascade Township) reported raising $123,707 with $100,000 in debt and $114,492 in cash on hand.

Interesting among the reports filed was that of newly-elected U.S. Representative Kerry Bentivolio (R-Milford) who won the seat in 2012 following former-Rep. Thad McCotter’s well-publicized disqualification. Congressman Bentivolio filed two reports, the first for the committee from his 2012 election, which reported just over $30,000 raised and over $200,000 in debt. The second report was filed for Mr. Bentivolio’s new committee for his 2014 re-election effort, which reported nearly $41,000 raised, $35,749 in cash on hand, and no debt.

posted by PAA Online , 10:31 AM
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April 12th Survey Results

In the March 29^th edition of PAAdvisory, readers were asked, “The House of Representatives is currently controlled by the GOP with 59 members to the Democrat’s 50. Representative John Olumba (I-Detroit) left the Democratic Caucus earlier this year. In 2014 when all 110 seats are again up for election, do you believe the House will:”

· Remain exactly the same

· Remain GOP controlled with a greater majority

· Remain GOP controlled with a smaller majority

· Switch to Democratic majority

· Be split power

53 percent of respondents believe the GOP will remain in control but will have a smaller majority while 35 percent believe their majority will increase while they stay in power. 12 percent believe the Democrats will take over the House.

posted by PAA Online , 10:30 AM
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PAAdvisory Briefs

March Unemployment Rate Down Again

Although still higher than the national average of 7.6 percent, Michigan’s unemployment rate fell to 8.5 percent for March as the state reported both lower numbers on unemployment and higher total employment. The 8.5 percent rate is another .3 percent lower than February’s 8.8 percent and a full ½ point lower than the 9 percent rate in March of 2012. The roughly 396,000 people considered unemployed marks the first time since June 2008 that the number fell below 400,000.

Capital Community Mourns Farley

Jonathan Farley, Chief of Staff to State Senator David Robertson (R-Grand Blanc) passed away Wednesday after a battle with cancer. Jonathan was 40 years old and is survived by his wife, Erika, and their two children. The Public Affairs Associates team joins everyone in the Capital community in extending our warmest thoughts and prayers to Jonathan’s family and friends.

Reports Show Tourism’s Continued Growth

Two reports issued at the Pure Michigan Governor’s Conference on Tourism in Detroit this week show tourism growth in 2012, and projects continued growth in 2013. A Michigan State University study showed a 6 percent increase in tourism spending in Michigan in 2012 and projects a 5.5 percent increase in 2013. The Pure Michigan campaign also released a report finding increased spending and resulting increased state tax revenues.

posted by PAA Online , 10:29 AM
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Question of the Week 4/19/2013

posted by PAA Online , 9:47 AM
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