Gov. Snyder and Legislative Leaders Establish New Spending Targets

Gov. Rick Snyder and Republican lawmakers reached new spending targets for the Fiscal Year 2014 budget. The agreement follows last week's revenue estimating conference, which projected an additional $483 million in Fiscal Year 2013 and another $219 million in Fiscal Year 2014. The increase in revenue is primarily due to better-than-expected income tax collections.

The new spending proposal includes an additional $350 million for one-time road and bridge projects, which is far less than the $1.2 billion Gov. Snyder originally requested to fix the state’s infrastructure. To date, lawmakers have been unable to agree on how to fund a comprehensive road package.

In addition to the already planned 2 percent increase for Michigan schools, an additional $140 million will be put toward K-12 education. State Democrats highly criticized the spending targets for not allocating more money to schools and for “prioritizing roads over kids.”

Lastly, leaders placed $75 million in the state’s Rainy Day Fund, bringing the fund’s balance to $580 million. In a video statement, the Governor stated a healthy Rainy Day Fund will help to ensure “Michigan’s strong financial position.”

The target agreement did not include funding to expand Medicaid health insurance for low-income adults. However, the House Michigan Competitiveness Committee is currently deliberating on a proposal that would extend Medicaid health insurance to individuals with income up to 133 percent of the poverty level. Legislative leaders were reluctant to provide a timeline as to when, or if, an agreement will be reached on Medicaid reform.

Speaker of the House Jase Bolger (R-Marshall) and Senate Majority Leader Randy Richardville (R-Monroe) have both named conferees to the budget conference committees. The committees will use these new spending targets in developing the final budget recommendations.

posted by PAA Online , Friday, May 24, 2013 11:14 AM
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Higher Education and Community College Conference Report Signed

On Thursday, the House-Senate Conference Committee signed the Higher Education budget report on a straight party-line vote. Senate Bill 193 would provide approximately $25 million in additional funding for the state’s 15 public universities and set the tuition restraint at 3.75 percent. The restraint was also tied to performance-based measures. Additionally, the report included a $2 million funding increase for the eight universities under the Michigan Public School Employees Retirement System.

In addition to the modest funding increases, Republican lawmakers inserted provisions in the report that would prohibit domestic partner benefits, require universities to report on embryonic stem cell research, and allow social workers not to counsel homosexual patients if it violated his or her religious beliefs.

Meanwhile, the budget report (Senate Bill 199) for the state’s 28 community colleges was signed on Thursday morning. The $336 million budget, which is aligned with Gov. Snyder’s recommendation, includes funding increases from 1.7 percent to 2.6 percent to the respective community colleges. The only point-of-difference between the House and Senate budgets was a $1.1 million appropriation for the Virtual Learning Collaborative. This initiative was included in the new budget target agreement; thus, it was added to the final report.

The Legislature is working to finalize all of the budgets before a self-imposed June 1 deadline. Since several lawmakers will be attending the Detroit Regional Chamber’s Mackinac Policy Conference next week, it is anticipated that the budget process will not be completed until June 7.

posted by PAA Online , 11:13 AM
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Per-Pupil Funding Increased, Department of Education Budget Stalled

The Fiscal Year 2014 School Aid Conference Committee budget (Senate Bill 182) was approved on Thursday afternoon. The $13 billion funding report included a guarantee that every school district would receive an increase in its per-pupil allocation. A reduction in what the state pays toward the Michigan Public School Employees Retirement System was also included in the report. After various hold-harmless adjustments were inserted into the report, the Committee essentially ensured that every school district would receive at least a $5 per-pupil funding increase. Lastly, the report included a $65 million increase for the Governor’s pre-kindergarten Great Start Readiness Program but $25 million of it will be placed in a reserve fund. If there is sufficient need for the additional money, legislative action would be required to transfer the money into the program.

Meanwhile, the conference committee on the Michigan Department of Education budget was rescheduled until next week. The main source of contention is whether funding should be appropriated for the full implementation of Common Core Standards, a set of education principals established by the National Governors Association and the Council of Chief State School Officers. Gov. Snyder supports the full adoption of the guidelines; however, some Republican lawmakers want to delay or completely stop the implementation.

posted by PAA Online , 11:13 AM
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Corrections, Judiciary and Licensing and Regulatory Affairs Budgets Advance

In a flurry of legislative activity, conference committee reports were finalized for the Michigan Departments of Corrections, Judiciary, & Licensing and Regulatory Affairs. Here is a brief recap of the budgets:

Corrections

Under the provisions of Senate Bill 197, Mound Prison would be reopened with the city of Detroit reimbursing the state for running the center. Additional funding provisions included job training pilot program to assist parolees returning to the workforce and a one-time new employee training school at community colleges. The budget also reflected a $6 million savings for privatizing food services.

Judiciary

The final report (Senate Bill 191) included an additional $5 million appropriation for Michigan to develop or expand specialty courts for substances abusers, military veterans and those with mental health issues. The report also included funding for two additional attorneys in the State Appellate Defender’s Office.

Licensing and Regulatory Affairs

The report (Senate Bill 190), passed on straight party-line votes, would prohibit state departments from writing rules more stringent than federal standards and from using full-time employee counts as placeholders in future budget discussions. Funding was also appropriated for a nursing home survey, a new fireworks safety grant, and to law enforcement efforts to crack down on medical marijuana operations.

posted by PAA Online , 11:12 AM
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Rutledge Elected New House Minority Floor Leader

The House Democratic Caucus selected Rep. David Rutledge (D-Ypsilanti) as their new Floor Leader on Wednesday.

State Representative Rudy Hobbs (D-Southfield) announced last week that he was stepping down from this leadership position to devote more time to his campaign to replace U.S. Representative Gary Peters in the 14^th Congressional District. Congressman Peters (D-Bloomfield Township) is a candidate to replace the retiring Carl Levin in the U.S. Senate. On a related note, U.S. Representative Sander Levin (D-Royal Oak) endorsed Rep. Hobbs for Congress. Rep. Hobbs previously worked for Rep. Levin.

Rutledge is serving his second term for the 54^th House District, representing part of Washtenaw County including the city of Ypsilanti and Superior and Ypsilanti townships. He previously served in numerous leadership positions in county government, was a Captain in the U.S. Air Force, and owned his own environmental services company.

To ensure a smooth transition, Rep. Hobbs will work with Rep. Rutledge until June and then hit the campaign trail.

posted by PAA Online , 11:11 AM
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State House Passes Health Insurance Claims Assessment Extension

The full House passed legislation (Senate Bill 335) on Wednesday that would extend the sunset provision for the Health Insurance Claims Assessment law to 2018 and maintain the tax at one percent. The current law was originally scheduled to sunset on January 1, 2014.

Under the provisions of the current law, a one percent tax is placed on a majority of health claims in an effort to generate revenue for the state Medicaid program. However, the tax is failing to generate the $400 million that was originally projected and needed to fully fund the Medicaid program.

The budget currently assumes that the tax will generate the full $400 million; therefore, lawmakers will need to find a solution for the shortfall before Oct. 1. Two options to address the gap include tapping into Medicaid Trust Fund or reducing Medicaid services or provider payments. Another alternative to fill the shortfall would be the automobile no-fault insurance reform proposal, currently before the full House, which includes a new $25 assessment on car insurance policies.

The House returned Senate Bill 335 to the Senate for final concurrence and then it will be sent to Gov. Snyder for his signature.

posted by PAA Online , 11:06 AM
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House Committee Addresses Father Registry & Extended Care Bills

The House Families, Children and Seniors Committee passed a package of legislation (House Bill 5959, 4660, 4661 and 4662) this week that would create a Responsible Fathers Registry in an effort to make the adoption process more efficient for fathers.

Under the provisions of the legislation, the Michigan Department of Community Health would be required to develop an online registry for fathers to admit paternity of a child who was born outside the confines of marriage. A father would be legally required to register within five business days of the child’s birth in order to receive information on paternity hearings. If a father does not register within the specified timeframe, his parental rights could be terminated for any child born after October 1, 2014.

The Michigan Probate Judges Association expressed concern during the committee hearing that a father’s parental rights could be unfairly terminated as a result of this legislation. If the mother provides misleading information to the father on the status of the pregnancy, a father may fail to register and thus lose his rights.

The Committee also briefly discussed two bills (House Bills 4436 and 4437), introduced by Rep. Marilyn Lane (D-Fraser), which would allow an individual to receive extended medical care at an adult foster care home. Additionally, Medicaid payments would be directly submitted to the adult foster care home. House Bill 4437 would allow the retroactive spend down of funeral costs.

The Committee will not meet next week; however, Committee Chair Rep. Ken Kurtz (R-Coldwater) indicated House Bills 4436 and 4437 would be brought up at a later date for further discussion.

posted by PAA Online , 11:05 AM
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Detroit Area Lawmakers Introduce Auto No-Fault Proposal

On Monday, Detroit area lawmakers unveiled a comprehensive proposal to reform the state’s automobile no-fault insurance system.

Under the provisions of the “Detroit Democratic Auto No-Fault Package,” a commission would be created to track fraud and abuse; insurance companies would be required to justify rate increases; stipulate that 80 percent of premiums collected must be spent on policy holders; ban the consideration of credit history, education and occupation in determining premiums; and institute other changes to the system. Additionally, it would not cap lifetime medical benefits or limit what medical providers charge insurers for auto-related injuries.

The bills are in direct response to the Republican-sponsored legislation (House Bill 4612) that would cap medical coverage for catastrophically injured car accident victims at $1 million after January 1, 2014. The bill would also reduce insurance rates by $125 per vehicle in the first year after the legislation is enacted and place limits on attendant care and home modifications to accommodate injuries. House Bill 4612 is currently before the full House and the House Democrats have voiced their unanimous opposition to the legislation.

A majority of the bills in the Detroit Democratic Auto No-Fault Package are currently being drafted. Once drafting is completed and the bills are introduced, they will be assigned to a House committee for consideration.

posted by PAA Online , 11:05 AM
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May 17th Survey Results

In the May 17th edition of PAAdvisory, readers if they are heading to Mackinac Island for this year’s policy conference.

Only 15 percent of respondents indicated they were attending this year’s Conference, with 85 percent answering that they are not planning on making the trip.

posted by PAA Online , 11:04 AM
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PAAdvisory Briefs

Guardianship Bill Reported Out By Senate Committee

The Senate Families, Seniors and Human Services passed Senate Bill 176 which would allow the court to schedule a guardianship hearing for a developmentally disabled person when he or she is 17 years, 6 months old. This legislation will ensure that there is not a gap in care for the individual when the guardianship officially begins on their 18^th birthday. The Michigan Probate Judges Association supports the bill, which is currently before the full Senate.

House Fiscal Agency Discusses Vehicle Registration Taxes

The House Fiscal Agency (HFA) provided testimony and delivered a detailed report to the House Transportation and Infrastructure Committee on the state's process for charging vehicle registration taxes. In addition to reaching an agreement on how to fund a comprehensive road package, lawmakers are beginning discussions on how to simplify registration taxes. The Committee did not take any action on the HFA report.

Board of State Canvassers Begin Processing Ballot Proposals

The Board of State Canvassers approved the petition form for a Right to Life of Michigan ballot committee that would prohibit insurance companies from including abortion coverage. The committee (No Taxes for Abortion Insurance) can begin collecting the required number of signatures needed to be placed on the next statewide ballot. Additionally, the Commission approved the signatures submitted by Keep Michigan Wolves Protected to allow voters to decide in November 2014 on whether the wolf hunt law (PA 520 of 2012) should continue.

Senators Levin and Stabenow Endorse Gary Peters for U.S. Senate

U.S. Senators Carl Levin (D-Detroit) and Debbie Stabenow (D-Lansing) endorsed Gary Peters for U.S. Senate. Sen. Levin, who has represented Michigan since 1979, recently announced he would not seek a seventh Senate term. These endorsements signify that Congressman Peters has largely secured the Democratic nomination. At this time, the Republican field remains unclear. U.S. Representatives Mike Rogers and Justin Amash, and former Secretary of State Terri Lynn Land are all considering running for the Republican nomination.

House Business Office Investigating Rep. John Olumba’s Literature

Rep. Rashida Tlaib (D-Detroit) filed a formal complaint with the House Business Office this week charging Rep. John Olumba (I-Detroit) with improperly using state dollars for campaign-related purposes. According to the complaint, a volunteer was distributing a “legislative briefing” from Rep. Olumba that included an invitation to attend a meeting about his Detroit mayoral campaign. The document was also being distributed outside of Rep. Olumba’s district, which is against House rules. Rep. Olumba was previously fined for mailing outside his legislative district. Rep. Olumba denied any knowledge of the literature or where it was being distributed.

Democratic Candidate Announces Candidacy for Attorney General

Mike Totten, a university law professor and volunteer federal prosecutor, filed the necessary paperwork to run for Attorney General in the 2014 campaign. At this time, Mr. Touten is the only Democrat to announce their intention to challenge incumbent Attorney General Bill Schuette.

posted by PAA Online , 11:03 AM
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Question of the Week 5/24/13

posted by PAA Online , 9:32 AM
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