Governor Rolls Out Budget Recommendation

Governor Snyder made his roughly $52 billion dollar budget recommendation to the Legislature on Wednesday. With adjustments for interdepartmental grants and transfers, the total spending will be $51.2 billion.

The largest individual source of funding for the budget will be federal money at about $21.1 billion, or 41.2 percent of the total budget. Of that portion, more than $12 billion will go to the Department of Community Health, largely for Medicaid.

Local units of government, including schools and community colleges, will receive $16.477 billion in spending.

The administration stated that 75 percent of the budget will be spent on health, human services, and education. 10 percent will go toward job creation, 6 percent toward public safety, another 6 percent to government services, 2 percent to environment, and less than 1 percent to the Budget Stabilization (“Rainy Day”) Fund, bringing the total reserve amount to $822 million.

Tax Proposal

Governor Snyder unexpectedly strayed from expectations by proposing an increase in eligibility for the state’s property tax credit. Governor Snyder’s first budget slashed the eligible income limit for the state property tax credit from $82,650 to $50,000.

The Governor has proposed to raise this level to $60,000, which will aid low to middle income families. Most legislators had entertained the idea of an income tax cut, but Governor Snyder’s Administration noted that more than half the benefit of such a cut would benefit families making over $100,000.

Under the proposal, 200,000-250,000 people would be eligible for the tax credit. Additionally, the formula for calculating the credit would be more generous.

In the first year, the cost of the program would be greater than $200 million because it would be retroactively applied to 2013. In the future, it will cost $102.7 million per year.

Those already eligible for the credit will not need to do anything different when filing their taxes this year, according to Lieutenant Governor Brian Calley. Those who will become newly eligible will be required to file an additional form later this year.

Higher Education

An additional $77 million will go toward Michigan’s 15 public universities. This represents a 6.1 percent increase, which is the largest since 2001. One-half of the new funds will be distributed across the board based on the university’s 2011 funding, rather than through performance metrics.

The other half will be distributed based on weighted undergraduate completions in critical skills areas, research expenditures, 6-year graduation rates, total completions, administrative costs as percentage of core expenditures, and the number of students receiving Pell Grants.

Universities would also be required to limit tuition increases to 3.2 percent to receive performance funding.

Community Colleges

Community college funding will be increased by 3 percent under Governor Snyder’s proposal, but for the first time will require community college’s to keep tuition increases below 3.2 percent in order to receive performance-based funding.

The additional $8.9 million will be applied in the same manner as funding for higher education, with half being equally distributed while the rest is based on performance metrics.

K-12

Under the Governor’s budget, K-12 school spending would be $13.8 billion, a 3.2 percent increase.

The increase includes an average increase of $100 per pupil for K-12, an additional $65 million for the Great Start Readiness Program, and $50 million into the Michigan Public School Employees Retirement System (MPSERS).

Lower-spending districts would receive up to $111 per student, and districts at the top of the scale would receive an additional $83 dollars per student.

According to the Governor, the goal was to reduce funding disparities between districts.

Local Governments

The Governor’s proposal also included dramatic funding increases in revenue sharing to aid local governments that have seen major cuts in recent years.

The constitutional portion of revenue sharing earmarked from sales tax revenues to cities, villages and townships would rise by 3 percent to $765 million.

Governor Snyder also recommended $271.8 million for statutory revenue sharing, a 15 percent increase from the current fiscal year. This total is still below the $300 million from the year before the Governor took office.

posted by PAA Online , Friday, February 7, 2014 12:21 PM
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Snyder (Finally) Announces Re-election Campaign

Governor Rick Snyder has officially initiated his 2014 re-election campaign with a series of events across the state. During an event on Monday he hailed Michigan’s progress since he took office, but insisted that his goals in the coming years remain the same.

Governor Snyder praised the improvements the state has made in job growth, higher incomes, improved manufacturing, increased population, and the elimination of budget deficits.

He claimed that Michigan is “a state that has come back more than any other state in the United States.”

The Michigan Democratic Party (MDP) organized protests at his events in Detroit and Lansing. Officials with the MDP claimed that the protestors consisted of retirees who were forced to pay income taxes as part of the business tax changes Mr. Snyder oversaw in 2011.

When asked about the changes to the tax code, Governor Snyder said that it was essential to end the Michigan Business Tax (MBT). He went on to say that replacing the Michigan Business Tax with the corporate income tax helped small and medium-sized businesses that have created jobs in the state.

With regard to the pension tax, Governor Snyder responded by asking if it was not fair that pensioners should pay the same taxes others have to pay on wages and salaries.

Governor Snyder urged all Michigan residents to help communicate the progress the state has made, both in terms of economic factors and in curbing things such as crime and infant mortality.

posted by PAA Online , 12:21 PM
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Year End Fundraising Reporting Analysis

Governor

Governor Snyder’s re-election campaign was funded by employees working for some of the state’s most recognizable business, while unions donated heavily to his likely Democratic challenger, Mark Schauer.

Governor Snyder raised $5.08 million, spent $1.9 million ($695,000 on fall television advertisements), and had $4 million on hand as of December 31. Mr. Schauer’s campaign raised $1.63 million and report $1.05 million on hand.

While Mr. Snyder again did not take PAC contributions, Mr. Schauer received $341,742 from PACs, with $271,400 stemming from union PACs.

Both candidates took advantage of the doubling of maximum contributions under PA 252 of 2013, which took effect December 27, giving donors who already were at the previous maximum five days to increase their contributions so they would apply to the 2013 fundraising period. Governor Snyder; however, received far more money as a result. Mr. Snyder had 102 contributors giving more than $3,400, and 33 at the $6,800 maximum. Mr. Schauer had about 30 go above $3,400 and 10 donate $6,800.

House

House Republicans continued to outraise House Democrats in the last quarter of 2013, with $447,491 raised and $1.37 million cash on hand. Democratic fundraising totaled $207,911 with $947,130 cash on hand.

Both the House Republican Campaign Committee and the House Democratic Fund reported zero debts. The Republicans spent $34,017 during the quarter and the Democrats spent $35,994.

House Democrats boasted 934 different donors who contributed to the fund, compared to the Republicans who had 44 different donors.

Only three Republicans and one Democratic incumbent have primary challenges at this point. Representative Dave Pagel (R-Berrien Springs) in the 78^th House District is being challenged by a Tea Party member. Mr. Pagel raised $7,575 during 2013, spent $2,049, and has $6,947 cash on hand. His opponent, Jim Walker, raised $1,265 with no expenditures or obligations.

Representative Al Pscholka (R-Stevensville) also has a Tea Party challenger in the 79^th House District. Mr. Pscholka raised $61,987 and spent $21,599. He also has $7,587 left over from the previous campaign and ended the year with $47,974 cash on hand. His opponent, Cindy Duran, raised $8,270, spent $1,225, and ended the year with $7,045 cash on hand.

Lee Chatfield announced a challenge to Representative Frank Foster (R-Petoskey) in the 107^th House District. Mr. Foster raised $56,612 in 2012 and spent $21,948, leaving him with $51,221 cash on hand. Mr. Chatfield did not form his committee until mid-January, so he did not have to file a report for fundraising in 2013.

Representative Brian Banks (D-Detroit) in the 1^st House District is the only Democrat to be challenged so far in a primary for 2014. His challenger, Rebecca Thompson, raised $20,098, spent $4,575, loaned herself $915, and ending the year with $15,375.

Representative Banks trails his challenger with $14,450 raised in 2013. He spent $6,145 and ended the year with $9,669 cash on hand.

Senate

Senate Republicans raised $445,593 in the last reporting period, nearly seven times more than the $64,000 raised by Senate Democrats during the same timeframe. Senate Republicans also have a roughly 3-to-1 advantage when it comes to cash on-hand: $1.57 million compared to $526,410 for Senate Democrats.

In the 13^th District, Ryan Fishman, a lawyer and Republican-turned-Democrat, raised $104,900 during the reporting period and still has $92,565 cash on hand. He personally contributed $33,481 to that sum. By contrast, his fellow Democratic candidate Cyndi Peltonen, only raised $1,145 and has $1,092 on hand.

Mr. Fishman matched well against Representative Tom McMillin (R-Rochester Hills), who raised $54,954 in the reporting period and had $52,869 cash on hand in his Senate campaign committee.

Former Representative Chuck Moss, a Birmingham Republican, did the best in the 13^th district race in terms of cash on hand. He transferred $102,191 from his House campaign committee to his Senate committee, where records showed he had raised $162,291 during the reporting period (including the transfer from the now-dissolved House committee). Mr. Moss has $160,175 on hand.

posted by PAA Online , 12:19 PM
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Campaign Update

State Representative Wayne Schmidt (R-Traverse City) currently leads the financial race for the 37^th Senate District. Rep. Schmidt is running for the seat being vacated by State Senator Howard Walker (R-Traverse City) after he decided not to seek re-election. Mr. Schmidt has collected $99,200 and has $93,443 on-hand.

His likely primary opponent, Representative Greg MacMaster (R-Kewadin), showed $17,032 in contributions to his Senate committee, with $4,333 on-hand, along with $1,000 in debts and obligations.

In the 26^th Senate District, a Republican primary to succeed State Senator Mark Jansen (R-Gaines Township) is expected, though so far the only candidate to formally declare for that seat is State Representative Peter MacGregor (R-Cannon Township).

Mr. MacGregor’s committee contribution statement showed that he had collected $114,988 to run for the Senate seat. He has $114,126 on-hand.

Calhoun County Commissioner Terris Todd created a campaign committee to run in the 62^nd House District where State Representative Kate Segal (D-Battle Creek) cannot seek re-election due to term limits.

Democrats have said the seat is crucial if the party wants to have enough seats to regain the majority in the House in 2014.

posted by PAA Online , 12:18 PM
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January 31st Survey Results

In the January 24^th edition, PAAdvisory returned to the Michigan trivia questions and asked: The world’s largest cement plant is located in what Michigan city?

a. Detroit

b. St. Joseph

c. Alpena

d. Iron Mountain

75 percent of respondents answered correctly – (c). Alpena. 17 percent chose (b). St. Joseph, and another 8 percent thought it was located in Iron Mountain (d).

posted by PAA Online , 12:18 PM
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PAAdvisory Briefs

Cotter Joins Race For Speaker

State Representative Kevin Cotter (R-Mount Pleasant) said on Monday that he has support from a number of House Republicans to become Speaker of the House in 2015. Mr. Cotter is currently serving his second term in office, and has raised $87,140. He stated that his primary goal is to keep House Republicans in the majority, also noting that he feels confident of their chances. Other names floating for the leadership race include Rep. Al Pscholka (R- Stevensville), Rep. Lisa Posthumus-Lyons (R-Alto), Rep. Frank Foster (R-Petoskey) and Rep. Aric Nesbitt (R-Lawton). Representative Pscholka is the only member of that group to publicly acknowledge that he is interested in running for Speaker.

Obama to Sign Farm Bill at MSU

President Barack Obama will sign the recently passed federal farm bill at Michigan State University today. President Obama will spend about two hours in the mid-Michigan area when he arrives and the signs the legislation on the MSU campus. The event will not be open to the public. The President plans to use the opportunity to highlight the importance of agriculture to the nation’s economy and will be accompanied by U.S. Senator Debbie Stabenow (D-Lansing), Chair of the U.S. Senate Agriculture Committee, who played a leading role in negotiating the controversial bill through Congress.

Grand Rapids Judge Plans Run for Supreme Court

Judge James Redford, who has been on the Kent County Court since 2002, is seeking the Republican nomination in the Michigan Supreme Court race at the party’s August convention for the post. Judge Redford stated he had thought for some time about running for the Supreme Court, and gave it more consideration due to the retirement of Justice Michael Cavanagh. Justice Cavanagh is constitutionally prohibited from running again due to his age. Prior to being elected to the Kent County bench, Judge Redford worked in private practice and as an Assistant U.S. Attorney. He also served 28 years with the U.S. Navy Judge Advocate Corps.

Romney-McDaniel, Kahn Enter Race to Succeed Land on RNC

Earlier this week, activist Ronna Romney-McDaniel declared her candidacy to succeed Terri Lynn Land as Michigan’s Republican National Committeewoman. Ms. Romney-McDaniel is the daughter of former MSU Trustee Scott Romney and former National Committeewoman Ronna Romney. In 2012 she frequently campaigned in Michigan on behalf of her uncle, Mitt Romney, in his presidential bid. Sandra Kahn, Saginaw activist and President of the Republican Women’s Federation of Michigan, announced that she is running as well. Ms. Kahn is the ex-wife of State Senator Roger Kahn (R-Saginaw Township).

Snyder Names Goei to Head Office of New Americans

Governor Rick Snyder officially created the Office of New Americans last Friday, naming Bing Goei as director. Mr. Goei is currently the CEO of Eastern Floral and of the Goei Center. Mr. Goei came to the U.S. from Indonesia as a child in 1960, and following his successful business ventures ran in 2010 and 2012 for the State House of Representatives.

posted by PAA Online , 12:17 PM
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Question of the Week 2/7/2014

posted by PAA Online , 11:22 AM
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