House Appropriations Committee Moves Education, Departmental Omnibus Budgets

The House of Representative Appropriations Committee met for several hours during the House’s first session day following Spring Break Thursday, passing both the Education Omnibus Budget containing K-12, Community College and Universities spending plans, and the omnibus budget bill for the state’s various departments.

The state departmental budget bill, House Bill 5313, passed the panel 19-0 with all Republicans and Independent RepresentativeJohn Olumba voting supporting the measure. All Democrats on the Committee abstained.

The spending plan includes $110 million to fill the Health Insurance Claims Assessment (HICA) shortfall and the General Fund portion of the transportation funding package introduced by House Speaker Jase Bolger (R-Marshall) last week. In total, the bill is $36.39 billion.

The same panel also addressed the Education Omnibus bill, House Bill 5314, passing the measure on the same 19-0 vote. The $15.63 billion spending plan contains $1.56 billion in General Fund monies and $12.15 billion from the School Aid Fund.

posted by PAA Online , Friday, April 18, 2014 10:42 AM
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Governor Snyder Pushes for Increased Recycling

Governor Snyder has announced a plan to assist communities in setting up curbside recycling and create new markets for recycled materials. Governor Snyder has appointed nine individuals to the newly created Recycling Council to oversee the implementation of his plan. He cited studies that have shown Michigan recycles 20% less waste than the national average of 35%. Recyclable materials thrown away by Michiganders are worth about $435 million annually.

The plan would be supported by $1.5 million in State dollars -- $1 million in the 2014-15 budget for the overall program and $500,000 in pollution prevention grants through the Department of Environmental Quality to help local communities create recycling programs. The plan also calls for increased public education on recycling.

· Michael Csapo of Fenton will represent the recycling community and is the general manager of Resource Recovery and Recycling Authority of Southwest Oakland County.

· Jim Frey of Detroit will represent academics and consultants. He is CEO and co-founder of Resource Recycling Systems.

· Linda Gobler of Lansing will represent the retailers on the council. She is president and CEO of the Michigan Grocers Association.

· Jim Kulp of Dexter will represent the processors. He is the operations manager for Clean Tech Incorporated, the state’s largest bottle recycling facility.

· Bill Lobenherz of Lansing will represent the bottlers. He is president of the Michigan Soft Drink Association.

· Kerrin O’Brien of East Lansing will represent environmental interests. She is the executive director of the Michigan Recycling Coalition.

· Tonia Olson of Lansing will represent waste haulers, waste industry, and landfill owners and operators. She is the director of governmental and community relations for Granger.

· Elisa Seltzer of Levering will represent public and community interests. She is public works director for Emmet County.

· Doug Wood of Muskegon will represent local government and regions. He is the director of the Kent County Department of Public Works.

posted by PAA Online , 10:41 AM
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State Revenue Increases Less Than Previously Anticipated

The State’s General Fund and School Aid Fund revenue totaled $1.2 billion in March, a 3.6 percent increase over last year’s level. While revenue did increase, it was $45.7 million short of the Senate Fiscal Agency’s forecast. The shortfall has been attributed to weaker-than-expected growth in income tax withholding and insurances taxes as well as greater-than-expected Michigan Business Tax and Single Business Tax refunds.

Net income tax revenue was $329.3 million in March 2014, an increase of 14 percent year-over-year, which is about $21 million below than the original estimate. Withholding payments were 4.5 percent higher than they were a year ago despite also being below predicted levels. The report however did note that sales tax receipts increased 12.8 percent from March 2013, $17.5 million above forecasted levels. This is the first instance of year-over-year growth in sales tax revenue since December 2013, which the agency noted could be due to improved weather.

Use tax collections also fell short, up 12.1 percent over last year, but $11.6 million below forecasted levels. Additionally, SBT, MBT, and Corporate Income Tax collections totaled a negative $6.6 million for the month. Last fiscal year’s MBT revenue is expected to be dominated by several large refunds. The timing of when these refunds will be claimed and processed is expected to significantly affect the accuracy of the monthly MBT estimates according to the SFA.

posted by PAA Online , 10:40 AM
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Campaign Update

News

Debbie Dingell filed the maximum 2,000 petition signatures to gain a place on the ballot to replace her husband U.S. Representative John Dingell (D-Dearborn) in Congress. Her fundraising, name recognition, the lean of the district, and her prior activities make her a favorite to win both the Democratic nomination and the race.

Ingham Country Treasurer Eric Schertzing is collecting signatures to run for the 8^th U.S. House District now that Ingham County Clerk Barb Byrum has declared she will not run. He still may face Central University Professor Susan Grettenburger and former state demographer Ken Darga in the Democratic primary.

State Senator John Pappageorge (R-Troy) has endorsed former State Representative Andrew “Rocky” Raczkwoski to succeed him in the 13^th Senate District. Mr. Razckowski is running in a crowded primary that includes former RepresentativeMarty Knollenberg and former RepresentativeChuck Moss, as well as political newcomers Ethan Buker and Al Gui.

State Senator Bert Johnson (D-Highland Park) has ended his congressional campaign, and will run for re-election in the State Senate. RepresentativeJohn Olumba (I-Detroit) has already declared he will run in Johnson’s 2^nd District as a Democrat, which may lead to a showdown if Senator Johnson’s announcement does not change RepresentativeOlumba’s mind.

State Representative Peter Pettalia (R-Presque Isle) announced on Monday his intention to run for re-election to the 106^th House District, rather than run against House Majority Leader Jim Stamas (R-Midland) for the State Senate. Pettalia cited his wish to keep the Republican Party in the majority in the House as his reasoning for abstaining.

Former RepresentativeKurt Damrow and Dan Grimshaw will join five others in the Republican primary for the 84^th State House District. Mr. Damrow defeated RepresentativeTerry Brown (D-Pigeon) in 2010, but lost to Mr. Grimshaw in the primary in 2012, who then lost to RepresentativeBrown in the General election. RepresentativeBrown cannot seek re-election due to term limits and will run for the 25^th Senate District seat against incumbent Senator Phil Pavlov (R-St. Clair).

State Senator Virgil Smith (D-Detroit) received significant endorsements for his re-election campaign, working to defeat a challenge from State Representative Rashida Tlaib (D-Detroit). The United Auto Workers, Michigan Building and Construction Trades Council, and Michigan Teamsters Joint Council all endorsed Senator Smith’s campaign.

Finance

Debbie Dingell raised $500,000 in her first month of candidacy for the U.S. House, more than several incumbents did over the past two years. 93 percent of that sum came from individual donors.

Democratic U.S. Representative RepresentativeGary Peters and Republican Terri Lynn Land are neck-and-neck in fundraising. RepresentativePeters raised $1.35 million in the first quarter, while Ms. Land raised $1.5 million. Peters has $4.82 million total, which is just under the $5 million raised by Ms. Land, which includes $1.7 million in personal funds.

In the 11^th U.S. House District, David Trott has raised $1.68 million and has $1.04 million cash on hand. Mr. Trott has put $808,402 into the campaign from his own funds. Mr. Trott is challenging U.S. Rep Kerry Bentivolio (R-Milford), who has $155,917 in cash, but also has $203,854 in debt from his initial campaign committee from 2012.

Bobby McKenzie, an anti-terrorism expert recruited by top Democrats to challenge RepresentativeBentivolio, has raised $239,861, but only has $164,986 cash on hand. Anil Kumar, another Democrat, has $610,542 cash, $610,000 of which is his own money. He has raised $223,126 so far for the election, but has spent $172,475.

In the 3^rd House District, U.S. Representative Justin Amash (R-Cascade Township) has $114,491 cash on hand after raising $123,707 last quarter. He is still carrying $100,000 in debt. Brian Ellis is challenging RepresentativeAmash in the GOP primary and has raised $429,632 total, with $413,423 in cash on hand, but has $400,100 in debt.

Former State Representative Pam Byrnes, who is challenging U.S. RepresentativeTim Walberg (R-Tipton) in the 7^th U.S. House District, has raised $221,819 with $423,343 in the bank. Meanwhile RepresentativeWalberg has raised $116,360 with $327,472 in the bank.

In the 1^st District, U.S. RepresentativeDan Benishek has raised $952,623 and has $654,483 in cash, with $74,500 in debt. His opponent, former Kalkaska County Sherriff Jerry Cannon, has raised $438,200 and has $270,479 in cash.

State Representative Rudy Hobbs has a slight fundraising lead over Southfield Mayor Brenda Lawrence in the 14^th District Democratic primary. State RepresentativeHobbs has $173,329 cash from the $370,403 he raised and $5,000 in debt. Ms. Lawrence raised $223,240 and has $145,411 in the bank.

Senate Majority PAC, a Democratic Super PAC, has spent $884,000 criticizing Republican candidate Terri Land on her policy history. The PAC has raised more than $19.7 million since January 1, 2013.

On the state level, independent committees and organizations have outspent candidates in the first quarter of 2014. Governor Snyder’s campaign spent $400,000 on a Super Bowl Ad, accounting for most of the $666,000 the campaign has spent so far. The Democratic Governors Association spent $1.469 million in Michigan in the first quarter on a series of commercials. The Republican Governors Association spent only $268,000. Americans for Prosperity has largely been responsible for advertising against U.S. Rep Gary Peters, especially for his support of the Affordable Care Act. AFP spent $2.6 million through March 31^st.

posted by PAA Online , 10:39 AM
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April 11th Survey Results

Last week’s PAAdvisory asked, outside of passing the 2014-2015 fiscal year budget, what significant issue do you believe the State Legislature will tackle before summer recess?

93 percent of respondents believe road/infrastructure funding will be tackled before the summer recess. 7 percent believe the EAA expansion proposal will be completed. No respondents thought the Legislature would tackle auto no-fault insurance, before summer recess.

posted by PAA Online , 10:38 AM
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PAAdvisory Briefs

Unemployment Rate Drops Again

According to a new report by the Department of Technology, Management and Budget, Michigan’s seasonally adjusted unemployment rate dropped 0.2 percentage points to 7.5 percent in March. 19,000 more individuals were working in March than in February, and the number of unemployed people dropped by 8,000. This marks the seventh consecutive month of decreased unemployment in Michigan.

Snyder Signs School Aid Supplemental

Governor Snyder signed HB 4925 this week, which provides additional funds for schools for the rest of the year, expands early childhood programs and encourages schools to look at year-round schedules. The bill cuts $44.4 million from the school aid budget by adding $51.7 million in federal funds. The new federal funds represent a “Race to the Top” grant the state received for early childhood program improvements.

posted by PAA Online , 10:38 AM
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Question of the Week 4/18/2014

posted by PAA Online , 10:14 AM
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