Senate Passes $100 Million in Road Funding, Addresses HICA Revenue Shortfall

In order to combat potholes arising from one of Michigan’s worst winters on record, the State Senate passed $100 million in additional funding for roads on Thursday. Although Senate Majority Leader Randy Richardville was hesitant to allocate the entire amount, he voted yes on the legislation.

The Appropriations supplemental, SB 608, passed by a 32-6 vote, about three hours after it was reported to the floor from the Senate Appropriations Committee. The bill includes $114.6 million for the Health Insurance Claims Assessment (HICA) revenue shortfall, as well as the construction authorizations for five capital outlay projects that were approved by a Joint Capital Outlay Committee on Wednesday.

Also included was $5.1 million to help schools taking in students from dissolved districts, $25 million in General Fund money for community mental health funding for non-Medicaid individuals, and the restoration of funding to Hutzel Women’s Hospital Perinatology Research Branch that conducts research and treatment on at-risk babies.

Senator Patrick Colbeck (R-Canton Township) argued that the community mental health funding would “lower the bar” when it comes to assessing how much state savings came from the Medicaid expansion (which ultimately would determine whether an automatic repeal is invoked).

Six Republicans voted no: Senators Darwin Booher of Evart, Jack Brandenburg of Harrison Township, Patrick Colbeck of Canton Township, Joe Hune of Hamburg, Phil Pavlov of St. Clair and John Proos of St. Joseph.

posted by PAA Online , Friday, February 21, 2014 11:20 AM
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House OKs Tax Relief Plan

The House Tax Policy Committee reported a package of bills that would roll back the individual income tax to 4.05 percent by 2016 and provide a trigger to continue the rollback based on the state’s revenue. This makes it the second proposed plan decreasing the income tax rate to advance from a legislative committee.

HB 5265, HB 5266, and HB 5267 were reported on votes of 12-2 with State Representative Vicki Barnett (D-Farmington Hills) abstaining. Representatives Jon Switalski (D-Warren) and Jim Townsend (D-Royal Oak) voted no.

The bills would reduce the income tax rate to 4.15 percent in October 2015, which would be further reduced to 4.05 on January 1, 2016. The package would then, beginning October 1, 2017, reduce the tax rate by 0.1 percent if the General Fund revenue in the preceding year increased by $300 million or more, adjusted for the rate of inflation for that year.

The Senate has introduced their own plan to reduce the rate to 3.9 percent by 2017.

Governor Snyder has been critical of the reduced income tax rate and has proposed his own plan, which would expand the Homestead Property Tax Credit, focusing on lower and middle income taxpayers.

Representative Jim Townsend (D-Royal Oak) has criticized the income tax rollback plan for giving more of a tax break to high earners than the middle class.

Ari Adler, spokesperson for House Speaker Jase Bolger (R-Marshall), said Mr. Bolger has not endorsed a tax plan yet. He said conversations will continue between House leadership, Senate leadership, and the Governor’s office.

Representative Barnett (D-Farmington Hills) offered a series of amendments that would tie the package to House Democratic priorities including reinstating the exemptions on pension income, reinstating the Earned Income Tax Credit to its original cap, and allocating funds to the road fund and School Aid Fund rather than rolling back the income tax.

Representative Bill LaVoy (D-Monroe) offered two amendments on the final bill in the package that would require a decrease in the state’s debt for the trigger on the continued rate rollback to be pulled. All Democratic amendments were defeated, while Republicans offered no amendments to the legislation.

Representative Farrington (R-Utica), Chair of the Committee, said he thinks that the issue raised by Representative LaVoy warrants further discussion and is valid. The ten Republican members abstained from voting on Rep. LaVoy’s amendment rather than voting no.

posted by PAA Online , 11:19 AM
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House Panel Takes on Community Service for Welfare Benefits, Lottery, and Ombudsman

The House Families, Children, and Seniors Committee took up a bill on Wednesday that would allow the Department of Human Services to use community service as a work requirement for receiving benefits through the Family Independence Program.

The bill, SB 276, would allow those who are not exempt from the Partnership Accountability Training Hope (PATH) program to perform community service in order to meet work requirements according to sponsor Senator Joe Hune’s (R-Hamburg) office.

The sponsor’s office also said those receiving public assistance will be able to give back to the communities that support them, stating it could lead to self-sufficiency if the person were offered a job in the process, which has happened before. The practice has already been adopted by the Department of Human Services (DHS), but SB 276 would codify its use.

State Representatives Marcia Hovey-Wright (D-Muskegon) and Dian Slaven (D-Canton) inquired as to whether or not mothers of young children would have to volunteer.

The sponsor’s office said the bill simply allows the Department to continue what it has been doing and does not address child care or minimum hour requirements. He said under the Social Welfare Act, work requirements can be met by attending to children.

However, the two Democrats said they are concerned if the person watching the children while their parent is providing community service would have credentials or licensing. Senator Hune’s office said the person would probably be required to hold some sort of credential. The committee did not act on the bill. The measure passed the Senate last September.

Lottery & Ombudsman

The Committee did act to report two bills unanimously: HB 4855, which would allow lottery winnings to be obtained to pay any debt owed to the DHS, and HB 5039, which would amend the responsibilities of the children’s ombudsman.

HB 5039 would require the ombudsman’s office to notify the DHS as soon as possible of any immediate safety concerns regarding a child who is part of an active or open protective services or foster care case. The requirement would be within one business day after knowing.

Other changes include allowing the ombudsman to specify its authority in the course of a child fatality investigation to request and be permitted access to any records from the court of jurisdiction, attorney general, prosecuting attorney, or any attorney retained by the DHS, as well as reports from a county child fatality review team. This would then allow the ombudsman to investigate all child fatality cases that occurred or have allegedly occurred due to child abuse or neglect.

posted by PAA Online , 11:18 AM
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House Panel Reviews Year-Round Schooling Proposal

State Representative Andy Schor (D-Lansing) introduced legislation in the House Appropriations School Aid Committee on Tuesday that would create a pilot program for year-round schooling.

Under HB 4982, public schools would operate year-round with the current three month summer vacation broken up into two week blocks. The pilot program would be implemented in at-risk schools.

Mr. Schor said teachers lose 30 to 60 days of instruction when they have to re-teach what students learned the year before.

Governor Snyder called for a similar pilot program using $2 million during his State of the State address last month. HB 4982 calls for $10 million, though Representative Schor said that the Governor’s figure could also work for a pilot program.

Representative Schor said the money would be used to update school buildings so that students can comfortably attend school during the summer, adding that elementary schools would be targeted due to the steep price of updating a high school.

In Lansing, Mr. Schor said the least expensive school to upgrade for summer use would cost $656,686, while the most expensive school is in the $900,000 range.

Stiles Simmons, superintendent of Baldwin Community Schools (where 94 percent of students qualify for subsidized lunch), said for him, the only downside to a balanced year schedule is the cost. He said summer break increases disparities between advantaged and disadvantaged students, with poorer students experiencing more learning loss.

Representative Brandon Dillon (D-Grand Rapids), Minority Vice Chair of the House Appropriations School Aid Subcommittee, said in the future, after testing out year-round schooling, the state could look at extending the total amount of time students are in school.

Representative Bill Rogers (R- Brighton), Chair of the Subcommittee, said he also is supportive of the balanced year schedule.

posted by PAA Online , 11:18 AM
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February 14th Trivia Results

In the February 14^th edition, PAAdvisory asked: What is the official state reptile of Michigan?

a. Eastern Massasauga Rattlesnake

b. Five-lined Skink

c. Painted turtle

d. Eastern American Toad

71 percent of respondents answered correctly, c. Painted turtle. 14 percent answered a. Eastern Massasauga Rattlesnake and another 14 percent thought it was d. Eastern American Toad.

posted by PAA Online , 11:17 AM
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PAAdvisory Briefs

Kowall Aims to Increase Penalties for Transporting Invasive Species

State Senator Mike Kowall (R-White Lake Township) is leading the charge on an eight-bill package aiming to crack down on people smuggling invasive species through the state, mostly with people going to Toronto carrying Asian Carp. He plans to do so by making punishments so severe that those knowingly involved will realize it is not worth the money they might make. All of the bills (SB 795 through SB 802) have been sent to the Senate Natural Resources and the Environment Committee.

Election Update

As expected, State Representative David Knezek (D-Dearborn Heights) has announced his intention to run for the 5th Senate District seat. Representative Knezek must defeat his colleague Representative David Nathan (D-Detroit), who has also filed to run. The seat is currently held by Senate Minority Leader Tupac Hunter (D-Detroit), who cannot seek re-election due to term limits. Additionally, Eric Leutheuser announced last weekend his intention to run in the 58th House District. The seat is currently held by Representative Ken Kurtz (R-Coldwater) who cannot seek re-election due to term limits. Mr. Leutheuser, a Republican, said he is known for his defense of Right to Life, Second Amendment rights, and fiscal responsibility.

posted by PAA Online , 11:15 AM
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Question of the Week 2/21/14

posted by PAA Online , 10:36 AM
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