School Aid Budget Completed; House Finishes General Fund Budget

The Legislature passed the Fiscal Year 2014 School Aid budget earlier this week and sent it to the Governor for his signature. Additionally, the House passed the general omnibus budget but the Senate adjourned for the week before taking final action.

The school aid budget (House Bill 4228) included:

An average of 2.2 percent funding increase for higher education, as long as tuition increases are capped at 3.75 percent
An average of 2 percent operations funding increase for community colleges
3.2 percent increase for the K-12 budget with an assurance that every school district would receive at least a $5 per-pupil funding increase
Language prohibiting schools from spending money on Common Core (a set of nationwide education standards) without prior approval from the Legislature

The general omnibus budget highlights (House Bill 4328):

$50 million for film incentives
2.4 percent increase in the Michigan Department of Community Health budget
Additional money for the Grand Rapids Veterans Home to improve psychiatric and behavioral care, hire more nurses, and to upgrade its drug inventory and control procedures
Funding to keep three juvenile justice facilities open and to hire a data analyst to compile statewide data on juvenile justice
4.8 percent increase in revenue sharing for cities, villages, and townships
$350 million for one-time road and bridge projects
Boilerplate prohibiting state funds from being used for construction or planning for the new Detroit-Canada bridge and requiring a quarterly report be sent by the Michigan Department of Transportation on all construction planning or non-construction activities
$75 million for the state’s Rainy Day Fund
Provisions prohibiting state departments from writing rules more stringent than federal standards and requiring state officials to get quotes on contracts more than $5 million

House Bill 4328 did not include funding to expand Medicaid. However, the House Michigan Competitiveness Committee continues to hold hearings on a proposal that would extend Medicaid health insurance to individuals with income up to 133 percent of the poverty level.

During the budget debates, Democrats criticized the budgets for not giving a higher spending priority to education and for failing to include Medicaid reform provisions.

posted by PAA Online , Friday, May 31, 2013 10:53 AM
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Mark Schauer Announces Candidacy for Governor

On Tuesday, former Democratic Congressman Mark Schauer (D-Battle Creek) filed paperwork with the Michigan Department of State to run for governor in 2014.

Over the last month, Democratic Party Chair Lon Johnson worked to remove any formidable candidate from the race in an effort to avoid a costly Democratic primary. As such, Democrats see Schauer as their best opportunity to defeat incumbent Republican Gov. Rick Snyder. Gov. Snyder has not officially announced his re-election campaign; however, it is highly anticipated that he will run again.

Meanwhile, a number of statewide polls have suggested that the governor’s race could be close. An EPIC/MRA poll released last month gave Schauer a 1-point lead over Gov. Snyder, 39 percent to 38 percent. Additionally, only 38 percent of the respondents approved of Gov. Snyder’s job performance.

Schauer previously served in the Michigan Legislature for 12 years and the U.S. House of Representatives. He currently works as a business development representative for the Laborers-Employers Cooperation & Education Trust Fund.

posted by PAA Online , 10:48 AM
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House Tax Policy Passes “Sales Tax on the Difference” Legislation

On Wednesday, the House Tax Policy Committee passed legislation that would allow Michigan residents to pay a lower sales tax when trading in a car. The Committee also passed two similar bills (Senate Bills 89 and 90) that were previously approved by the state Senate.

House Bill 4234, introduced by Rep. Andrea LaFontaine (R- Columbus Twp.), stipulates that the sales tax would only be charged on the difference between the price of a new or used motor vehicle, recreational vehicle, or titled watercraft and the agreed-upon trade-in value. A trade-in allowance would be phased in over six years for the purchase of cars, whereas, the Senate-version provides for a 10-year phase-in period. Currently, Michigan residents who buy a new or used car pay sales tax on the full price without a credit when they trade in a vehicle.

Representatives from the Michigan Department of Treasury testified on Wednesday that the estimated revenue loss in 2013 would be $134 million. Of that amount, approximately $36 million would affect revenue sharing payments to local governments and $98 million would impact the School Aid fund.

Meanwhile, supporters of the bills argued that Michigan auto dealers are losing business to other states that assess taxes on the difference between the price and the trade-in value.

After the hearing, House Speaker Jase Bolger’s office stated that $20 million for tax relief has been allocated in the budget. Bolger (R-Marshall) supports the bill in an effort to increase auto sales in the state.

House Bill 4234 and the Senate bills are currently before the full House for consideration.

posted by PAA Online , 10:45 AM
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U.S. Congressman Dingell To Be Honored As Longest-Serving Member of Congress

On June 13, U.S. Rep. John Dingell (D-Dearborn) will be honored as the longest-serving member of Congress. The celebration will occur in the National Statuary Hall of the United States Capital.

Dingell was first elected to the U.S. House in 1955 and currently holds the record for the longest service in the House. In June, he will become the longest serving Member in either Chamber.

posted by PAA Online , 10:43 AM
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May 24th Survey Results

In the May 24^th edition of PAAdvisory, readers were asked if they would be traveling for the Memorial Day weekend.

The results were equally divided between those traveling within the state (45 percent) and those staying home (45 percent). Only 1 percent of respondents indicated that they had out-of state travel plans.

posted by PAA Online , 10:43 AM
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PAAdvisory Briefs

Legislature Projected to Adjourn June 20

On Wednesday, Senate Majority Leader Randy Richardville (R-Monroe) announced that the Legislature will likely adjourn for the summer on June 20. It is expected that Governor Snyder and Legislative leaders will announce a fall agenda prior to the June 20^th adjournment.

Phil Phelps Announces Candidacy for 49^th House District

Phil Phelps, a former staff member for Rep. Pam Faris (D-Clio), announced his candidacy for the 49^th House District. The vacancy was created when state Representative Jim Ananich was elected to serve in the 27^th State Senate District. The election is set for an August 6 primary and a November 5 election day.

Former Secretary of State Terri Lynn Land To Announce Plans for Senate Race

On Monday, former Secretary of State Terri Lynn Land (R-Grand Rapids) will announce on Twitter whether she will run to replace Carl Levin in the U.S. Senate. Sen. Levin announced in March he would not seek a seventh Senate term. Congressman Gary Peters (D-West Bloomfield) has largely secured the Democratic nomination for the race.

House Fiscal Agency Releases Analysis on Auto No-Fault Bill

The House Fiscal Agency recently released a detailed analysis on the Governor’s proposal to reform the state’s automobile insurance system. In particular, the report addresses the fiscal impact House Bill 4612 would have on the state budget, especially the Medicaid program, if the bill is enacted. The analysis can be found at http://www.house.michigan.gov/hfa/PDFs/13h4612h1_passed%20committee.pdf.

House Will Defend Itself Against Lawsuit

A former House staff member filed a lawsuit last week against Rep. Brian Banks (D-Detroit) and the State of Michigan claiming that he was sexually harassed by the lawmaker and that Rep. Banks improperly submitted mileage invoices. While Rep. Banks will be required to hire his own legal counsel for the sexual harassment component of the suit, Speaker Bolger indicated the House will use existing resources to defend itself against the mileage accusations. The Attorney General’s office will not be involved in the case.

Former Supreme Court Justice Sentenced To Prison

Former Supreme Court Justice Diane Hathaway was sentenced to one year and one day in prison followed by two years of supervised release for bank fraud. In January, she pleaded guilty to hiding assets during a short sale of her Grosse Pointe Park home. Hathaway was also ordered to pay $90,000 in restitution.

Michigan Film Offices Announces Incentives

The Michigan Film Office announced incentives for a new sports-related cable television show and the second season of the Eminem-produced program Detroit Rubber. The pilot was awarded an incentive of $78,153 on $259,922 of projected in-state expenditures and is expected to hire 35 Michigan workers. Detroit Rubber Season 2 was awarded an incentive of $68,348 on $235,987 of projected in-state expenditures. The project expects to hire 20 Michigan workers.

posted by PAA Online , 10:41 AM
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Question of the Week 5/31/13

posted by PAA Online , 9:54 AM
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