Nixon to Depart March 1 – Top Staff Shake-up Results

John E. Nixon, CPA, Budget Director and Director of the Department of Technology, Management, and Budget (DTMB), will be departing the Administration March 1^st to return to his native state of Utah where he has accepted a position as chief business officer for the University of Utah.

Michigan Governor Rick Snyder simultaneously announced the internal promotion of other key staff to fill the roles left by Mr. Nixon’s departure. Current Deputy Chief of Staff John Roberts will take over as Budget Director and current Chief Information Officer David Behen will be appointed DTMB Director. Prior to Mr. Nixon’s appointment, those positions had historically been held by two individuals.

Additionally, current Deputy Legal Counsel Beth Clement will now move into the Deputy Chief of Staff role.

posted by PAA Online , Friday, February 14, 2014 11:16 AM
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Lyons Proposes EAA Compromise Sub

A substitute for the Education Achievement Authority (EAA) expansion measure is being floated among House members that would cap schools operated by the Authority at 50 after June 2015, but does not provide an exit strategy for those schools.

The substitute for HB 4369 would allow 27 schools to be operated by the Authority through June 2014, 39 through June 2015, and then 50 at any time thereafter. It also provides for an exemption for center programs, which are public education programs that provide special education services.

The substitute would require the state’s school reform officer to place highest priority on addressing unsatisfactory results at elementary schools. It would also allow a school district to enter an agreement with an intermediate school district which would authorize the ISD to operate or manage the school.

State Representative Lisa Posthumus Lyons (R-Alto), sponsor of the bill, said the House will vote on the legislation when there are enough votes to pass it she said that younger students would have an easier time adjusting to a completely new program than those who have been in a failing school system for more than 10 years. Ms. Lyons went on to say now that the negotiated language has been developed, it is time to educate members in the House of what changes have been made.

Senator Pavlov (R-St. Clair), chair of the Senate Education Committee, said that he and Ms. Lyons have “agreed in principle” on some changes. Mr. Pavlov said he thought people should not be concerned about the exit strategy, but rather focus on fixing schools. He said that the decision to remove a school from the EAA once the school shows improvement should be left to the state superintendent and other state officials.

Governor Snyder, who has pushed for putting the EAA into statute, said Wednesday that critics should visit one of the EAA schools to see for themselves the improvements that have been made.

posted by PAA Online , 11:15 AM
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Activists Submit Ballot Language for Minimum Wage Increase

Activists with Raise Michigan submitted language Monday to the Department of State’s Bureau of Elections for a statewide referendum to gradually raise the minimum wage to $9.50 in 2016. In order for the proposal to make the ballot, it must receive 258,088 signatures by May 28^th.

The proposal provides for a gradual increase of $2.50 over one year starting at $7.90 in January 2015, $8.50 in July 2015, and finishing a $9.50 in January 2016. The proposal also includes tipped workers, who currently have a minimum wage of $2.65 per hour. Their wages would rise by 85 cents annually until they reach full minimum wage.

Rather than pursue a constitutional amendment, activists with Raise Michigan have decided to pursue a statewide ballot initiative due in part to the “don’t mess with the Constitution message” that helped sink five proposed constitutional amendments on 2012’s ballot.

According to Frank Houston, director of the Restaurant Opportunity Center of Michigan, the strategy involves risk. Presuming supporters gather the necessary signatures, once the Board of State Canvassers certifies the petition the Legislature would have 40 days to approve the proposal. This would make put the proposal into law and keep it off the ballot. Alternatively, the Legislature could put a competing proposal on the ballot for voters to consider alongside Raise Michigan’s own proposal. The proposal that received more votes would become law under Michigan’s Constitution. If voters approve either proposal, the Legislature could amend it with a 2/3 supermajority vote in both houses and a signature from the Governor. Mr. Houston believes that the popularity of a rising minimum wage would help insulate it from such moves.

Business groups appear ready to fight the proposal. Brian DeBano of the Michigan Restaurant Association especially criticized the increase for tipped workers. Only seven states put tipped employees under the full minimum wage, and tipped employees, when accounting for wages and tips, make well more than the minimum wage already, he said. Mr. DeBano insisted that the proposed increase would force restaurant owners to raise menu prices and cut jobs.

Mr. Houston, however, said many restaurant workers do not make the equivalent of the minimum wage between their wage and tips. Instead of making workers go through several hoops to ensure their employer complies with the minimum wage law, it would be preferable to raise their wage, he said.

The Michigan Chamber of Commerce plans to become part of an opposition effort against the proposal. Wendy Block, a Chamber representative, said $9.50 would give Michigan one of the highest minimum wages in the country.

posted by PAA Online , 11:14 AM
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State Taxable Value Increases for the First Time Since 2008

According to a report issued by the State Tax Commission, the taxable value of all of Michigan’s real and personal property increased during 2013 for the first time in five years. The increase in value was slightly less than $1 billion across all privately-held real estate and property. After falling from a total taxable value of $360 billion dollars in 2008 to $315.78 billion in 2012, the value rose to $316.73 billion in 2013.

This could lead to a net increase in local government’s treasuries, which receive a large share of funding from property taxes. The tax commission said on Monday that it would not have the complete amount of property taxes collected in 2013 until later this year. Property tax revenue decreased from $14.1 billion in 2009 to $12.8 billion in 2012.

While the total taxable value of state property saw a slight increase, the state equalized value remained at roughly the same level as in 2012, about $350 billion, according to the report. In 2008 the state’s equalized value totaled around $450 billion. During the intervening period, the state’s equalized valuable and taxable total value have come the closest to matching probably since the creation of taxable value was created with the approval of Proposal A school funding two decades ago. The difference between equalized value and taxable value was $43 billion in 2013, while in 2008 the difference was about $95 billion.

Of the $316.73 billion, residential property accounted for 75% taxable value at $214.3 billion. Personal property accounted for $31 billion dollars of the total. Commercial property accounted for $15.3 billion.

posted by PAA Online , 11:14 AM
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February 7th Trivia Results

In the February 7^th edition, PAAdvisory asked: What Michigan city is the nation’s third oldest remaining settlement?

a. Detroit

b. Sault St. Marie

c. Monroe

d. Marshall

81 percent of respondents answered correctly, b. Sault St. Marie. 13 percent answered c. Monroe and the final 6 percent thought it was a. Detroit.

posted by PAA Online , 11:13 AM
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PAAdvisory Briefs

Senate Finance OKs Expanded Sales Tax on Difference

In 2013, Michigan enacted legislation phasing out the application of the sales tax on the value of a trade-in when purchasing a motor vehicle, but the Senate Finance Committee on Wednesday reported two bills (SB 754, SB 755) that would speed up the provision. Under PA 60 of 2013 and PA 234 of 2013, the sales tax exemption allowed on the value of a trade-in when purchasing a motor vehicle is $2,000 and beginning in January 2015 the value would increase by $500 per year until it reach $14,000. After that point there would be no limit on the agreed trade-in value exempt from the sales tax. Under SB 754 and 755, the exempt value would increase from the current $2,000 to $5,000. From then on, the maximum value would increase by $1,000 until it hits $14,000.

Peters Introduced Bridge Funding Bill

U.S. Representative Gary Peters (D-Bloomfield Township) introduced a measure designed to ensure the federal government funds the U.S. customs plaza at the proposed bridge connecting Detroit and Windsor, Ontario. The Customs Plaza Construction Act of 2014 calls for the federal government to construct customs plazas at critical international crossings. Governor Snyder has praised Mr. Peters for introducing the measure, which faces an uncertain future in the House. The Governor and the Canadian government have voiced concern at what they say is the reluctance of the federal government to pay for the new U.S. customs plaza as Canada pays for every other aspect of the project. Governor Snyder has said that he is talking with White House staff, federal departments and the state’s congressional delegation to resolve the issue.

Slavens to Run for 7^th Senate District Seat

State Representative Dian Slavens (D-Canton Township) on Wednesday announced that she had officially filed to run for the 7^th Senate District seat currently held by incumbent Senator Patrick Colbeck (R-Canton Township). Former Democratic Representative John Stewart has also filed to run for the Senate seat but recently submitted a dissolution document for his campaign committee. Although he said that did not necessarily mean he would be pulling out of the race, he did say in a phone interview that there would not be a contested primary.

posted by PAA Online , 11:12 AM
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Trivia Question of the Week 2/14/2014

posted by PAA Online , 10:43 AM
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