House Passes $450 Million Road Funding Plan

The House has taken the first step towards fixing Michigan’s dilapidated infrastructure, approving the plan announced by Speaker Jase Bolger last month. The plan initially increases transportation funding by about $450 million next year, and it is believed to provide an additional $500 million annually by 2018.

The most significant change proposed stems from HB 5477, which would eliminate the per-gallon tax on gasoline and diesel. The tax would be replaced by a 6 percent tax on the wholesale price of fuel, which would tie the tax to inflation. The change, which passed 85-24, provides additional revenue from diesel taxation while maintaining the current amount of gasoline tax revenue.

The majority of additional funding is provided by HB 5458 and HB 5492, which shifts $370 million in sales and use tax collected on fuel from the General Fund to transportation. An approved amendment to HB 5492 puts a seven-year sunset requirement on the use tax reallocation. HB 5167 and HB 4251 modify competitive bidding requirements for the Department of Transportation and local road agencies. HB 5452 and HB 5453 increase fines and permit fees for overweight trucks. HB 5460 calls for contractor warranties on state roads and was the only bill in the package to pass unanimously. HB 4630 changes state registration fees.

posted by PAA Online , Friday, May 9, 2014 10:38 AM
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Detroit Financial Support Legislation Released

Submitted for introduction late Thursday was the highly-anticipated 11-bill package defining the State’s role in the City of Detroit’s bankruptcy proceedings. The newly formed House Committee on Detroit’s Recovery and Michigan’s Future, will meet on the legislation as early as Tuesday according to Committee Chair Representative John Walsh (R-Livonia).

The legislation calls for the State to provide $194.8 million from the Budget Stabilization Fund, which would then be repaid through tobacco settlement dollars.

The package also calls the development of a seven-person commission to oversee the City finances for the next 20 years. The commission will be comprised of members appointed by the Governor, the Senate Majority Leader, the House Speaker, the Mayor, the State Treasurer, and others – however, not by Detroit City Council.

The plan also would require the City to move all new employees to a defined contribution retirement plan rather than the existing defined benefit system and end the City’s ability to opt out of the law prohibiting a government from paying for more than 80 percent of employee health insurance premiums.

posted by PAA Online , 10:37 AM
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House Makes More Changes To Revenue Sharing

The omnibus government operations budget bill, HB 5313, passed 92-17, seeing around 70 proposed amendments. The bill was passed without the road funding requirement added in a House subcommittee. State Representative Jeff Farrington (R-Utica) won an amendment to the proposal that removes the requirement for municipalities participating in the Economic Vitality Incentive Program (EVIP) to spend an amount equal to 5 percent of their revenue sharing payment on roads. The communities must still meet financial transparency requirements and commit an amount equal to 5 percent of the revenue sharing payment to unfunded liabilities.

Most of the amendments suggested by Democrats were shot down, but Representative Adam Zemke (D-Ann Arbor) won an amendment providing $600,000 to certain students for GED tests after June 2015. Those receiving testing aid would have to either enroll in postsecondary academic or vocational coursework at a Michigan college or university within two years of passing. Alternatively, they must complete a workforce development agency-approved GED preparation program.

Representative Joe Haveman (R-Holland), House Appropriations chair, won an amendment that limits film incentive funds going to the west Michigan film office to 10 percent. Representative Bruce Rendon (R-Lake City) won an amendment that increases an item in the Department of Community Health’s budget from $700,000 to $1.5 million for pregnancy and parenting support services. The funds must be used to “promote childbirth and alternatives to abortion.”

The bill also requires the Michigan Economic Development Corporation to provide a plan by February 2015 on funding the Pure Michigan campaign with incrementally increasing private-source matching funds. The first increment must be 50 percent non-restricted and 50 percent private. The private sector match must increase by 5 percent every year from then on until private sources account for 75 percent of all funding.

posted by PAA Online , 10:37 AM
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Board of State Canvassers Approves Second Wolf Hunt Referendum

The Board of State Canvassers certified that wolf hunting opponents had garnered enough signatures to put a second referendum measure before the electorate. The second referendum was made necessary after lawmakers and the governor approved new legislation for the 2013 hunt to continue before enough signatures could be collected for a second referendum. Keep Wolves Protected turned in 224,557 signatures, 182,732 of which were considered valid, which exceeds the requirement of 161,305 signatures to get on the ballot.

In a few weeks, wolf hunting supporters may present the board their own petition signatures that would propose giving the Natural Resources Commission sole authority to make game decisions. Their plan is to have the legislature approve their proposal. Should that happen, the referendums to block another hunting season would be defeated. Citizens for Professional Wildlife Management, the group circulating the petition, said it intends to turn in its petitions on May 27. They will continue to collect signatures at major hunting goods stores in the meantime.

posted by PAA Online , 10:36 AM
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House Energy & Tech Moves “True Cost of Service” Measure

The House Energy and Technology Committee moved a measure Tuesday that will require Michigan utilities to ascertain true costs of service to each customer class and, over the next year, adjust rates to match those costs. House Bill 5476, sponsored by Representative Jim Stamas (R-Midland), was voted from committee without opposition from members.

The measure is designed to replace the rate currently provided to Hemlock Semi Conductor as part of the economic development package that brought the plant to Michigan.

The bill would do away with ratios of costs currently included in electric utility law and designed to reflect the higher cost of serving residential customers relative to the lower cost of serving large industrial customers and instead examine the actual cost of service.

The plan also requires the Public Service Commission (PSC) to report to the Legislature relative to all of the plans submitted for each utility’s rates, and again when a proposed decision for the PSC had been developed by an administrative law judge.

posted by PAA Online , 10:35 AM
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Quote of the Week

PAA is providing some light-hearted quotes from year’s past for a few weeks:

“Now we’ve got them right where they want us.” - Senator Dick Allen, 1981

posted by PAA Online , 10:34 AM
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PAAdvisory Briefs

EAA Board Chair Appointed

Governor Rick Snyder has appointed Joyce Hayes Giles Chair of the Education Achievement Authority (EAA) Board of Directors and Executive Committee. Ms. Hayes Giles, of Detroit, is former Vice President of Public Affairs at DTE Energy and succeeds Mark Murray as Board Chair. Mr. Murray will remain on the EAA Board. The appointment to the Executive Committee expires March 13, 2018 while the appointment to the Board remains at the pleasure of the Governor. Neither appointment is subject to the advice and consent of the Senate.

Nakagiri Files for Lieutenant Governor

Tea Party activist Wes Nakagiri filed paperwork with the Republican Party State Committee at their Shanty Creek meeting to seek the nomination for Lt. Governor at the Party’s summer convention. After previously failing to do so, Nakagiri submitted signatures of 33 Republican Party state committee members, including members from 13 of the 14 Congressional districts. The State Party’s policy committee will review and rule on the paperwork at their meeting in June or July.

Minimum Wage Preemption Introduced

Senate Majority Leader Randy Richardville (R-Monroe) introduced legislation Thursday proposing to increase the state’s minimum wage to $8.15/hour by September 2014. Senate Bill 934 proposes to do so, however, by repealing the current minimum wage law and replacing it. If passed and signed by Governor Snyder, the legislation would bring to question the validity of the ballot initiative currently being pursued to increase the minimum wage gradually to $10.10 per hour, as the proposal seeks to amend the statute Senator Richardville’s legislation would repeal.

posted by PAA Online , 10:33 AM
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