Budget Supplemental Headed to Governor’s Desk

Senate Bill 608 was unanimously adopted by Conference Committee on Wednesday and passed both chambers by wide margins. It will now head to Governor Rick Snyder’s desk for his signature. The final agreement includes a General Fund allocation of $215 for roads. $100 million will go toward special winter road maintenance and $115 for priority road projects. The Senate had originally proposed using $100 million from the Roads, Risks, and Reserve (RRR) Fund to put toward the special winter road maintenance, but the money in that fund will remain intact for now.

State Representative Wayne Schmidt (R-Traverse City), Chair of the House Transportation and Infrastructure Committee, said he is encouraged by the funding provided in the supplemental. Mr. Schmidt also said he believes the momentum on increased road funding is increasing. Representative Rashida Tlaib (D-Detroit), the Minority Vice Chair of the Committee and member of the Conference Committee that unanimously adopted the measure, said she was pleased with the bipartisan effort but added there was still more work to do. Senator Patrick Colbeck (R-Canton Township) opposed the supplemental on the Senate floor due to its funding of Medicaid expansion, which he believes could have been put toward additional road funding.

HICA

The supplemental did not provide for a solution to the revenue shortfall associated with the Health Insurance Claims Assessment (HICA), but Senator Roger Kahn (R-Saginaw Township), Chair of the Conference Committee and sponsor of the bill, won an amendment that will force the Legislature to choose a date to tackle the issue. Also included in the amendment is a provision allowing the money in the RRR fund to be used for the HICA shortfall if a decision has not been made on a long-term solution within a certain timeframe.

The Senate originally appropriated $115 million to fill the gap, but the House struck the provision from their reported version. The House seeks to include a $25 fee through no-fault reform to help fund HICA, but the Senate would rather address the two issues separately.

Additional Issues

The Hutzel Women’s Hospital in Detroit will receive $10 million, half of what the Senate had originally proposed. The House had completely eliminated funding for Hutzel, but the Conference Committee led to that compromise. While the Regional Transit Authority (RTA) does not appear to be funded, Senator Kahn stated that is not the case. According to Mr. Kahn, RTA funding will be separated into two parts. RTA will receive $900,000 for fiscal years 2013-2014 by “repurposing some of the dollars that already exist,” and $1.1 million in 2014-2015. The bill will also appropriate $170,000 for the Office of New Americans and $13 million for community mental health centers.

posted by PAA Online , Friday, March 14, 2014 11:53 AM
LINK DIRECTLY TO THIS ARTICLE

House Passes Landline Services Bill

The Michigan House of Representatives passed SB 636 on Tuesday, which would eliminate the Public Service Commission’s (PSC) role in approving a telephone provider to abandon an exchange. The Senate has concurred with the House changes, so the Federal Communication Commission (FCC) will become the sole regulator. This will streamline the process of allowing telephone companies to drop landline services.

The legislation, which would not go into effect until 2017, contains provisions requiring voice lines to remain available and for a reliable and comparable service to 911 to exist before landline service ends. A substitute adopted on the House floor requires the PSC to maintain a public database on providers in the state. The substitute also requires providers post various notices at least 90 days before discontinuing the service.

The bill cleared the Senate floor and the House Energy and Technology Committee in December. The Michigan Association of Chiefs of Police opposed the bill due to concerns on reliability for seniors and in rural areas. Representative Ed McBroom (R-Vulcan) opposed the bill, citing unreliable cell service in his community. He said he can see the cell phone tower from his house but still can’t make calls at times. Representative Aric Nesbitt, Chair of the House Energy and Technology Committee, said the bill ensures reliability before a landline service would be dropped.

posted by PAA Online , 11:52 AM
LINK DIRECTLY TO THIS ARTICLE

MDOC Fines Aramark Over Contract Breaches

The Michigan Department of Corrections is fining Aramark, the company that provides meal services to state prisons, a total of $98,000 for two breaches of contract. The first set of fines, totaling $86,000, has been levied against the corporation for conducting unauthorized meal substitutions and not preparing the appropriate number of meals. The second fine of $12,000 stems from allegations of employee misconduct.

Aramark had been required to develop a plan by January 17^th to resolve issues having to do with meal counts and excessive substitutions. The plan was submitted on time, but the company went on to make 188 authorized and 52 unauthorized substitutions between then and February 20^th. In addition to the unauthorized substitutions, Aramark regularly failed to provide an adequate amount of meals.

In January the Michigan Corrections Organization had alleged Aramark employees were having sex with inmates. Corrections officials acknowledged conduct issues, but denied any sexual contact between Aramark employees and inmates. A letter dated March 6 said there were 12 different instances of violations for breaking departmental rules and demonstrating over-familiarity with different prisoners.

posted by PAA Online , 11:52 AM
LINK DIRECTLY TO THIS ARTICLE

Campaign Update

State Representative Bob Genetski II (R-Saugatuck) has decided not to run for the 26^th Senate District, which should give State Senator Tonya Schuitmaker (R-Lawton) a clear path to the Republican nomination. Senator Schuitmaker’s home has been redistricted into the new 26^th, which is new territory for her, as she is currently in the 20^th District.

As Representative Mike Shirkey (R-Clarklake) is officially running for the Senate, State Representative Mike McCready (R-Bloomfield Hills) joins Representative Frank Foster (R-Petoskey) as finance co-chair, along with Representative Mike Callton (R-Nashville) as incumbent fundraising chair, and Representatives Lisa Posthumus-Lyons (R-Alto), Gail Haines (R-Lake Angelus), and Klint Kesto (R-Commerce Township) as part of the House Republican Campaign Committee finance team. Rather than run for the second House term he is eligible for, Representative Shirkey is pursuing the 16^th Senate District seat where Senator Bruce Caswell (R-Hillsdale) is not seeking re-election.

posted by PAA Online , 11:51 AM
LINK DIRECTLY TO THIS ARTICLE

March 7th Trivia Results

In the March 7^th edition, PAAdvisory asked: Michigan has how many lighthouses and navigational lights? 38% of respondents replied with the correct answer of 116. 50% replied with 94, and 13% answered 211.

posted by PAA Online , 11:50 AM
LINK DIRECTLY TO THIS ARTICLE

PAAdvisory Briefs

Benton Harbor Progress

The financial emergency in Benton Harbor has been declared resolved following a recommendation by Emergency Manager Tony Saunders. The city cut General Fund expenditures by 30 percent, reached two collective bargaining agreements, increased pension contributions and reduced crime. Governor Snyder named a Receivership Transition Advisory Board to help the city work towards financial sustainability. The board will consist of two former Whirlpool employees, the Berrien County Treasurer and an audit manager for the Department of Treasury.

U.S. Senate Approves Four New Michigan Federal Judges

The U.S. Senate approved four appointees to the U.S. Court for the Eastern District of Michigan this week. Three were approved unanimously, with the fourth, Linda Parker, approved on a 63-37 vote. Ms. Parker is the former Department of Civil Rights director in Michigan, and currently a Wayne Circuit Judge. Along with Ms. Parker came Matthew Leitman, currently a principal at Miller Canfield in Troy; Judith Ellen Levy, an assistant U.S. attorney in Detroit and head of the civil rights division; and Laurie Michelson, who has been an eastern district magistrate since 2011.

Tourists Spend $1.2 Billion In 2013

Research Firm Longwoods International, which specializes in the effect of tourism advertising, said the Pure Michigan ad campaign attracted 2.4 million people from the Great Lakes region in 2013 and then another 1.6 million from markets across the nation. The report indicated a record $1.2 billion in tourist spending for the year. The state spent $13 million on the Pure Michigan campaign in 2013, with at least 5,000 ads running on 25 cable television channels. The study indicated the $13 million spent on the campaign resulted in $86.5 million in tax revenues to the state. The state therefore receives $6.66 for every dollar contributed to the campaign, up from $5.76 in 2012. In the 2014 campaign, the state will advertise in the Toronto market for the first time, and will begin to establish a market in China. The campaign also plans to increase its presence in Great Britain and Germany.

posted by PAA Online , 11:48 AM
LINK DIRECTLY TO THIS ARTICLE

Question of the Week 3/14/2014

posted by PAA Online , 11:05 AM
LINK DIRECTLY TO THIS ARTICLE

This Week's Newsletter

Past Newsletters