Governor Snyder Pushes $350 Million for Detroit Pensioners

Governor Snyder, standing with Senate Majority Leader Richardville (R-Monroe) and House Speaker Jase Bolger (R-Marshall), called for a commitment of $350 million over the next twenty years in order to mitigate pension reductions for Detroit retirees.

The Governor was quick to add, however, that the State would only provide funds if there was a settlement that included public employee unions and retirees that are currently fighting the municipal bankruptcy. Additionally, Mr. Snyder said independent management would be needed for the City’s general retirement system for the State to commit funds. He indicated that may not be needed for the pension system that handles police officers and fire fighters.

Governor Snyder recommended that the funds come out of the 1998 national tobacco settlement. In the current fiscal year, the tobacco settlement provides $253.5 million to the State, with a great deal of those funds going to the 21^st Century Jobs Trust Fund. The state has already securitized about 24 percent of its settlement revenue; it agreed to take a lump sum payment in exchange for giving the rights to the revenue stream to bondholders.

Governor Snyder would not say whether he wants the board that oversees the general retirement system replaced, saying that would be part of the mediation process.

Mr. Bolger and Mr. Richardville have yet to decide which chamber will formally introduce legislation for the proposal.

Governor Snyder insisted that municipal bond holders would have no claim to these supplemental funds in the event that the legislation makes it through the House and Senate.

While state funding, in part, is intended to mitigate pension cuts, Governor Snyder made clear that the money will not be enough to keep city pensions at 100 percent. He expects the exact figure to be determined as part of the official plan of adjustment the city proposed to the U.S. Bankruptcy Court. The estimates of the unfunded liability in the pension system vary greatly, but the official estimate is $3.5 billion.

posted by PAA Online , Friday, January 24, 2014 11:01 AM
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Mental Health & Wellness Commission Delivers Recommendations to Legislature

The Mental Health and Wellness Commission released a series of 60 recommendations on Tuesday. The Commission’s recommendations are aimed at providing better services for those with developmental disabilities or mental illness, as well as give them better opportunities to pursue autonomous lives.

The commission is a bicameral, bipartisan initiative. State Senator Rebekah Warren (D-Ann Arbor) said the Commission’s members represented “the left of the left and the right of the right,” illustrating the significance of the unanimous approval on the recommendations.

Of the recommendations outlined, many focused on how to combat the stigma that is often placed on individuals and families dealing with mental illness, developmental disabilities, or substance abuse. Chair of the Commission, Lieutenant Governor Brian Calley, whose daughter is autistic, stated that he, too, has struggled with a sense of stigma. Mr. Calley pointed out a recommendation by the Commission that the state end the use of the words “retardation” and “retarded” in all laws and rules.

Among the recommendations:

· Use the same substance use disorder provider credential standards in all forms and contracts for all departments;

· Update the Mental Health Code to match federal law that allows information sharing in some instances;

· Use common policies and guidelines in the Department of Community Health;

· Develop a “consistent and minimum” formulary that crosses all fee-for-service and Medicaid managed care plans for prescribing psychotic and psychotropic drugs;

· Find ways to help with women struggling with postpartum issues if they lose Medicaid coverage 60 days after giving birth;

· Ensure that children placed in foster care are designated for priority mental health services, even if the child has a mild condition; and

· Work with advocacy organizations across the state to develop and implement programs to reduce stigma.

posted by PAA Online , 11:00 AM
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Roads Cost State $7.7B Annually According to Study

A study from the national research organization TRIP released this week states Michigan’s dilapidated roads cost its residents $7.7 billion annually in additional operating costs due to lost time and wasted fuel from congestion and crashes. The study put the annual cost per driver at $1,600 in metro Detroit, $1,027 in the Grand Rapids area, and $1,032 for those in the greater Lansing region.

Further, the study said 57 percent of major urban roads in the Detroit area are in poor or mediocre condition with 40 percent in the Grand Rapids region and 49 percent in the Lansing area falling into the same category. TRIP also reported that 27% of Michigan’s bridges are in need of repair, improvement, or replacement.

In an effort to address the issue, Governor Rick Snyder has urged the Legislature for more than two years to pass legislation to raise $1.2 billion in new funds for roads, but lawmakers have hesitated to move forward with additional funding.

Will Wilkins, Executive Director of TRIP stated in the report, “Addressing Michigan’s needs for a safe, efficient and well-maintained transportation system will require a significant investment boost at the federal and state levels.” He continued, “But not addressing the state’s need for an improved transportation system will result in even greater costs to the public.”

posted by PAA Online , 10:59 AM
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Unemployment Falls to 8.4 Percent in December

The Department of Technology, Management and Budget (DTMB) released a positive job report Wednesday, showing a drop in both month-to-month and year-over-year unemployment. According to the report, the December seasonally adjusted jobless rate fell to 8.4 percent, down 0.4 percentage points from November’s rate of 8.8 percent.

The December rate is also 0.5 percentage points lower than the December 2012 rate of 8.9 percent, the department said. The preliminary average unemployment rate for Michigan in 2013 stood at 8.7 percent, down from 9.1 percent in 2012 and marking the fourth consecutive year of decreased unemployment.

The total labor force declined for the third consecutive month to 4.694 million people, compared to 4.707 million in November. The state labor force averaged 4.698 million people in 2013.

Unemployment during December fell below 400,000 people to 394,000 people, a drop of 19,000 from November, and 20,000 less than December 2012. The number was the lowest number of counted jobless persons since 2008.

posted by PAA Online , 10:58 AM
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Campaign Update: Daley, Nathan, Make Senate Bids Official, Chatfield Challenges Foster

State Representative Kevin Daley (R-Lum) announced on Tuesday that he would run for the 31^st Senate District seat, setting up a Republican primary against incumbent Senator Mike Green (R-Mayville).

Rep. Daley is unable to seek re-election to the House in November due to term limits.

Encouraged by his current constituents, Representative David Nathan (D-Detroit) also announced his intention to run for the Senate. He will run for the 5^th Senate District seat where Senate Minority Floor Leader Tupac Hunter (D-Detroit) cannot seek re-election due to term limits. The Democratic primary in the 5^th District is expected to be crowded.

Finally, political newcomer Lee Chatfield announced that he is challenging State Representative Frank Foster (R-Petoskey) for the 107^th House District seat, citing Mr. Foster’s support for Medicaid expansion and reform, Common Core State Standards, and adding gays to the Elliot-Larsen Civil Rights act as his motivation. Representative Foster stated that he plans to run on his record of reducing tax liability, supporting economic development, and passing right-to-work legislation.

posted by PAA Online , 10:57 AM
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January 17th Survey Results

In the January 17^th edition, PAAdvisory asked: What do you believe was the highlight of the Governor’s fourth State of the State Address?

a. His opening comment relative to “recent remarks” and a call for increased civility and tolerance (clearly a reference to the ongoing Dave Agema saga)

b. His clear support for some sort of individual income tax relief

c. The new Office of New Americans

d. His review of accomplishments and successes

57 percent of respondents indicated the highlight of the Governor’s speech was his review of accomplishments and successes (d). Another 29 percent of respondents answered b. his clear support for some sort of individual income tax relief. The remaining 14 percent believe the highlight of the speech was the Governor’s opening comment relative to “recent remarks,” likely a reference to Republican National Committeeman Dave Agema.

posted by PAA Online , 10:57 AM
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PAAdvisory Briefs

Jon Farley Award Established

An award has been established in memory of late legislative staffer Jon Farley, recognizing a legislative staffer who provides extraordinary service to the member of the Legislature or caucus for which they are employed. The Jon Farley Exceptional Legislative Staffer Award winner will be selected by a panel including some of Mr. Farley’s closest friends and contacts in Lansing. Jon Farley was most recently on the staff of Senator Dave Robertson (R-Grand Blanc).

Kesto Proposes Bill to Require Disclosure of Recent Felonies by Candidates

State Representative Klint Kesto (R-Commerce Township) is sponsoring a bill (HB 4825) that would require candidates running for public office to list any felony convictions within the last ten years on their affidavit of identity. The bill is currently before the House Elections and Ethics Committee. The legislation would not apply to juvenile felonies or expunged, non-public convictions.

posted by PAA Online , 10:56 AM
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Question of the Week 1/24/14

posted by PAA Online , 10:19 AM
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