Rogers Will Not Run for Re-election

U.S. Representative Mike Rogers (R-Brighton) announced Friday morning that he will not seek re-election to Congress this year. Congressman Rogers was first elected to the U.S. House in 2001 and currently holds one of the Chamber’s most important positions as Chair of the House Intelligence Committee.

The announcement was made Friday morning on the “Paul W. Smith Show” on WJR-AM radio in Detroit. Congressman Rogers will become the host of a talk radio show focused on national security.

The 8^th Congressional District includes all of Ingham and Livingston counties and a portion of northern Oakland County. Although the seat certainly contains a solidRepublican base in numbers, the quantity of high-profile office holders on both sides of the aisle will likely bring a significant amount of attention to both the primary and general elections for the seat.

posted by PAA Online , Friday, March 28, 2014 11:54 AM
LINK DIRECTLY TO THIS ARTICLE

New Revenue Sharing Formula Passes in General Government Budget

A new formula that would fund more communities, but provide a smaller increase to those currently receiving aid, was approved by a House Appropriations General Government Subcommittee. State Representative Earl Poleski (R-Jackson), Chair of the Subcommittee, proposed the bill last week, and an ammended version was passed.

The Economic Vitality Incentive Program (EVIP) currently provides revenue sharing dollars to 486 cities. Under Representative Poleski’s proposal, current members would receive a 1 percent increase. 1,105 additional cities, villages and townships would receive per capita payments of $7.14609, as long as they receive at least $5,000, raising the total number of local government entities receiving revenue sharing payments to 1,492. The current threshold is $3,000, and if the proposal is approved the new minimum of $5,000 will cut off 17 local governments from revenue sharing.

The proposal would change the way in which communities receiving more than $50,000 would qualify for their money. Communities entering the program for the first time would have to meet the current requirements for transparency, service sharing and the handling of retirement benefits. Each mandate completed would entitle the communities to 1/3 of their payment.

Communities that were in the program as of the 2012-2013 fiscal year would still have to meet transparency requirements, but the service sharing mandate would be replaced by a requirement that the community commits at least 5 percent of its statutory revenue sharing to road maintenance. The retirement benefits mandate would be replaced with a required commitment of 5 percent of their statutory payment to unfunded accrued liabilities.

Additionally, local governments that have a dedicated millage for roads would not have to spend another 5 percent to make this requirement; they would simply be required to spend that 5 percent. This is a change from last week’s version of the bill. State Representative Fred Durhal (D-Detroit) believes that the state should abolish EVIP requirements and return to statutory revenue sharing, but supports funding more communities.

The committee, while approving the budget for nine departments funded by the general government budget bill (HB 5301), also approved language requiring departments and agencies to give 14 days notice before finalizing a salary increase exceeding 5 percent. Representative Poleski said the move came in response to large raises approved earlier this year for fund managers in the Department of Treasury which were as much as 90 percent.

Attorney General

The Subcommittee approved half the increase sought by Governor Snyder to combat human trafficking, at $200,000. This was the only major change to the Governor’s recommendation of $90.8 million in funding, a 1.9 percent increase from the current year.

Executive Office

The subcommittee made no changes to the Governor’s recommendation for executive office operations, approving $5.9 million, a 10.2 percent increase from the current year. Most of the increase stems from the Governor’s newly created Office for New Americans to assist in attracting high-skilled immigrants to Michigan. The increase specifically for Executive Office operations totaled 3 percent.

Legislature

The overall budget for the legislative branch was $131.9 million, a 6.6 percent increase from the current year. The Subcommittee appropriated an additional $360,000 to fund operations at the Capitol on top of the $3.1 million recommended to designate the Capitol as a historic site. The budget also included a $4.8 million increase to fund legislative staff and operations.

State

The Subcommittee approved a $1 million increase for auto insurance fraud prevention, $800,000 less than what Governor Snyder had recommended. The state budget overall would contain $222.3 million, a 1.7 percent increase from the current year.

Technology, Management & Budget

The subcommittee cut Governor Snyder’s proposed $28 million increase for upgrading the state’s IT systems to $14 million, totaling a $47 million appropriation. It also rejected the Governor’s proposed doubling of funding for the Regional Prosperity Initiative. However, it did support the $9 million proposed increase for the Michigan Public Safety Communications System to replace equipment and a $7 million increase for new cyber security initiatives. The total DTMB budget contains $1.27 billion, a 6.3 percent increase from the current year.

posted by PAA Online , 11:53 AM
LINK DIRECTLY TO THIS ARTICLE

New School Best Practices

A new proposal, HB 5310, would replace four out of the eight best practices from the current year’s school aid budget. Districts would still have to meet seven of the eight criteria to receive the $52 per student grant under the school aid budget. The bill includes the $180 million General Fund increased contribution recommended by the Governor, but comes in at $42 million less overall, at $13.76 billion because the $27.8 million for teacher evaluations has been converted to a $100 placeholder.

The budget would require districts improve third grade reading proficiency levels, implement the Michigan Comprehensive Guidance and Counseling Program, have all contracts comply with employee compensation requirements or have no prohibited subjects of bargaining contracts. The bill would drop the requirements that districts provide for dual enrollment, measure student growth twice a year, provide online learning and post a public dashboard of finance and economic measures.

State Representative Brandon Dillon (D-Grand Rapids) urged that some of the proposals be included as pilot programs rather than be added to the best practices list. He said the counseling program, in particular, could cost a district more to implement than it would receive in additional grants. Representative Bill Rogers (R-Brighton), Chair of the Subcommittee, said the plan, particularly for the counseling program, is intended to persuade districts not to drop it.

The Subcommittee also provided $4.7 from the School Aid Fund for performance grants, giving a total of $51.1 million. The Subcommittee also moved all of the foundation grant increase into the “2x formula,” for increases ranging from $56-$112 per student, compared to $83-$111 under the governor’s formula that included $55 per student across all districts. The budget would also move equity payments into the foundation allowance increase. The foundation increase, which costs $141 million, is offset by $115.4 million in savings because of expected property value increases and a reduction in pupils.

The budget, as currently written, would increase funding for the Great Start Readiness program by $65 million to a total of $239.6 million. $25 million would be put into a reserve fund and $10 million would be set aside to reimburse transportation costs. The proposal would not, as the governor had suggested, increase the per diem program rates nor increase eligibility past 250 percent of the poverty line.

Student assessment funding under the proposal would lose $2 million in federal funds. The subcommittee rejected all of the changes the governor had proposed to accommodate new tests. The bill includes the $2 million Governor Snyder had proposed for year-round school pilots, but caps each grant at $750,000 and prohibits the funds from being used for contract modifications. The Subcommittee rejected a $250,000 career readiness and reduced funding for Michigan Virtual University by $2 million. It increased career and technical education funding by $1million, Science, Technology, Engineering & Mathematics (STEM) grants by $500,000, and added $1.7 million in General Fund dollars for health and nutritional education software.

Low income students under the proposal could receive subsidized advanced placement (AP) and international baccalaureate (IB) exams, but they would have to pay at least $5 of the total cost.

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

Campaign Update

Attorney General Bill Schuette held events in his hometown of Midland and in Oakland County this week, kicking off his campaign for re-election. Mr. Schuette focused on his tough stance on crime and protecting Detroit pensions, but was asked about the U.S. Court decision on same-sex marriage. Mr. Schuette claimed he had no choice but to file an appeal of Judge Friedman’s decision, stating the Michigan Constitution was not a “buffet line” where one can simply pick and choose what they wanted to support or oppose. Mr. Schuette is running for his second term, the last one he may serve under term limits.

Democrat Adam Robarge, a Marquette resident and a member of the League of Conservation Voters, has filed paperwork to run in the 38^th Senate District. He will challenge Republican State Senator Tom Casperson of Escanaba. Mr. Robarge currently works as a liaison for Ore Dock Brewery and was a coordinator for the Keep Michigan Wolves Protected campaign. His involvement with the wolf campaign is what drew him to running for the State Senate, he said.

Grass Lake Township Supervisor, Republican Jim Stormont has created a campaign committee to run in the 65^th House District, where State Representative Mike Shirkey (R-Clarklake) has decided not to run for re-election. Stormont, a Republican, said he intends to use his background as Township Supervisor and as a mechanical engineer to move Michigan’s economy forward with conservative policies. Local businessman Dale Moretz, a Republican, has stated his intention to run for the seat as well.

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

March 21st Survey Results

In the March 21^st edition, PAAdvisory asked: Some recent polls have been released showing the Governor’s race as closer than some expected. Who is the next Governor of Michigan?

82 percent of respondents believe Governor Rick Snyder will be returning for a second term. 18 percent believe former Congressman Mark Schauer will be victorious.

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

PAAdvisory Briefs

Michigan Unemployment Rate Falls

Michigan’s seasonally adjusted unemployment rate dropped 0.1 percent in February to 7.7 percent. The total number of people employed in February 2014 stood at 4.356 million, 26,000 more than January 2014 and 69,000 more than February 2013. This marks the sixth consecutive month the state’s jobless rate declined. In February 2013 the unemployment rate was 8.8 percent.

Senators Caswell, Jones Introduce Tax Increase Proposal

State Senators Caswell (R-Hillsdale) and Jones (R-Grand Ledge) on Tuesday introduced a joint resolution calling for a 1 percent increase in the sales tax that would be dedicated strictly to road funding. Senate Majority Leader Randy Richardville (R- Monroe) said he introduced a similar measure a couple of years ago, and maintains that there are many ways to solve the problem and each should be considered. He acknowledged that passing a tax increase in an election year would be difficult.

Snyder Signs Micro-Brew Legislation

Legislation aimed at expanding small breweries in the state was signed by Governor Rick Snyder on Tuesday. The legislation will allow brewpubs to control an additional five locations, and doubles the current production limit from 30,000 barrels a year to 60,000. Smaller brewers may also expand the places that would be considered on-premises sales.

PPT Reimbursement

The House passed a package of Senate bills with changes in the reimbursement formula, which was returned to the Senate for final approval and are now on their way to the Governor Snyder’s desk. The formula will be based on the reduced acquisition cost of the exempted property as opposed to a property’s industrial real property value. The Department of Treasury indicated the new formula would more closely reflect trends in personal property values. Without the change, some local governments would not have received the full reimbursement promised by legislators as a result of curbing the personal property tax.

posted by PAA Online , 11:49 AM
LINK DIRECTLY TO THIS ARTICLE

Question of the Week 3/28/14

posted by PAA Online , 10:45 AM
LINK DIRECTLY TO THIS ARTICLE

This Week's Newsletter

Past Newsletters