Senate Passes Minimum Wage Bill

In a somewhat surprising move Thursday, the State Senate passed a considerably more generous version of the minimum wage increase legislation introduced by Senate Majority Leader Randy Richardville (R-Monroe).

As introduced, Senate Bill 934 would have increased the minimum wage from $7.40/hour to $8.15/hour. The S-7 substitute for the legislation, which ultimately passed, increases the wage to $8.15/hour in September of 2014, to $8.50/hour on January 1, 2015, to $8.85/hour on January 1, 2016, and to $9.20/hour on January 1, 2017. Further, the measure includes an annual inflation adjustment not to exceed the inflation rate or 4 percent after 2017 and prevents the wage from rising if the state’s unemployment rate exceeds 10 percent.

Tipped workers wage would go from $2.65/hour to $3.10/hour on September 1^st of this year, to $3.23/hour on January 1, 2015, to $3.36/hour on January 1, 2016, and to $3.50/hour on January 1, 2017.

The bill passed the Senate 24-14 with most of the opposition coming from Republicans. Twelve of the 26 Republican members voted “no” while ten of the twelve Democratic members of the Senate voted “yes.”

Significantly, the legislation repeals the current minimum wage law and replaces it with a new law. 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 do so by amending the statute Senator Richardville’s legislation would repeal.

posted by PAA Online , Friday, May 16, 2014 10:04 AM
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Revenue Estimate Down $317 Million for Current Year

The May Revenue Estimating Conference took place Thursday, and as expected, the result will likely complicate budget discussions during coming weeks.

The Department of Treasury, House Fiscal Agency, and Senate Fiscal Agency have projected revenues for the 2013-2014 fiscal year to be $317 million below what was projected in January - $253.2 million less in the General Fund, and $63.7 million less in the School Aid Fund.

For the 2014-2015 fiscal year, projections were revised downward from January estimates as well, by $299.1 million - $220.5 million in the General Fund and $78.5 million in the School Aid Fund.

If the estimates hold true, revenue in the current 2013-2014 fiscal year would actually drop as compared to 2012-2013; however, in 2014-2015, even with the downward adjustments announced today, overall revenue would still increase by 4.1 percent.

posted by PAA Online , 10:03 AM
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Teacher Evaluation Package Passes House

Teacher and administrator evaluations in Michigan’s schools are the subject of a reform package that passed the House of Representatives in significantly bipartisan fashion this week.

House Bill 5223 and 5224 passed the House 95-14 and 96-13, respectively.

The two bills are sponsored by Representatives Margaret O’Brien (R-Portage) and Adam Zemke (D-Ann Arbor) and have been the subject of intense work and negotiation, including House Education Committee deliberation, for nearly four months.

Related legislation also passed the Senate Wednesday, delaying implementation of the evaluations until the 2015-2016 school year. That measure, sponsored by Senator John Pappageorge (R-Troy) also reduces the percentage of the evaluation that must be based on student growth and assessment data from 50 percent to 40 percent.

Although no official timeline has been given, the Senate is expected to act quickly on the measures.

posted by PAA Online , 10:03 AM
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Clerk Rules Conyers Off Ballot

Wayne County Clerk Cathy Garret has ruled that current U.S. Representative John Conyers does not have sufficient petition signatures and therefore will not qualify for the August Primary ballot. The clerk confirmed last week’s findings by County election staff that Congressman Conyers had 592 valid petition signatures, needing 1,000 to qualify.

An appeal to Michigan Secretary of State Ruth Johnson is expected, as well as a court challenge of the decision, and even Democratic Party Chair Lon Johnson is predicting Mr. Conyers will ultimately end-up on the ballot for the 13^th U.S. House District.

If that is not the case, Horace Sheffield III is arguably the favorite to win the seat.

Mr. Conyers could also run a write-in campaign; however, in the absence of that or a successful challenge, Mr. Conyers would become the fifth member of Michigan’s Congressional delegation to step down in one year – joining U.S. Senator Carl Levin (D-Detroit), and U.S. Representatives Dave Camp (R-Midland), John Dingell (D-Dearborn), and Mike Rogers (R-Brighton).

posted by PAA Online , 10:02 AM
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House Energy & Tech Debates Natural Gas Infrastructure Package

A three bill package to expand natural gas infrastructure was the topic of a House Energy & Technology Committee hearing this week. House Bills 5555, 5556, and 5557 were introduced by Committee Chairman Representative Aric Nesbitt (R-Lawton) and Representative Jim Townsend (D-Royal Oak) and are aimed to provide the infrastructure necessary to serve currently underserved areas as well as increase fines for non-compliance with safety provisions.

House Bill 5555 allows a natural gas utility to file an Infrastructure Expansion Investment Plan with the Michigan Public Service Commission (PSC) to build new infrastructure. The PSC would be required to hold a hearing under the plan within 180 days of filing, and issue an order to amend, approve, or disapprove the plan.

HB 5556 increases fines for violation of rules while constructing the new infrastructure to levels more consistent with federal standards, increasing the minimum fine from $10,000 to $20,000 per day, and increasing the maximum fine from $500,000 to $800,000.

HB 5557 prohibits the PSC from allowing rate increases by utilities to recover charges from fines.

posted by PAA Online , 10:01 AM
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Quote of the Week

“We’re not setting a precedent here today if we lie.”

- Senator Earl Nelson, 1977

posted by PAA Online , 10:00 AM
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PAAdisory Briefs

Full House Gets HICA Bills

The House Appropriations Committee passed legislation to the full House Wednesday to end the deficit in the health insurance claims assessment (HICA). Senate Bills 893 and 913 were passed without changes. The bills, which the Senate passed last week, were passed unanimously with only Representative Mike Shirkey (R-Clarklake) passing on one of the measures. The current HICA fund deficit is expected to have a shortfall of $114 million. This legislation is expected to solve one of the most significant fiscal dilemmas currently facing the State.

April Unemployment Down

April numbers continued Michigan’s trend of falling unemployment rates, moving downward another 0.1 percent to 7.4 percent. Further, the Michigan Department of Technology, Management and Budget reported that employment grew by 14,000 for the month and the labor force also increased by 11,000. Since August of 2013, Michigan’s unemployment rate has fallen 1.6 percentage points while the national rate has dropped 0.9 percent.

House Approves Auditor General Appointee

Wednesday, the House unanimously approved House Concurrent Resolution 28 to appoint Doug Ringler, CPA, CIA, as the state’s new Auditor General. The measure now goes to the Senate for a concurrence vote. Mr. Ringler, who will be appointed to an 8-year term upon Senate approval, succeeds Tom McTavish, CPA. Mr. Ringler currently serves as Governor Snyder’s Chief Audit Executive, is a certified public account (CPA) and certified internal auditor (CIA), and was recommended following a national, bipartisan and bicameral search.

More than 237,000 Enroll in Healthy Michigan

Officials have announced that more than 237,000 Michigan citizens have signed up for healthcare coverage under the state’s expanded Medicaid program eligibility in only the first six weeks of the program. The state expects 470,000 total people to sign up for the program, with 320,000 coming this year. Notably, the 237,000 total is already more than the 225,000 people that critics of the Affordable Care Act have claimed lost their coverage due to required changes.

posted by PAA Online , 9:59 AM
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