Road Funding Efforts Fail as Legislature Adjourns Until At Least July

The Senate was unable to pass road funding this week after voting a number of times and staying in until almost 1:00AM Wednesday and nearly 9:00PM Thursday. House Bill 5477 was voted down in no less than 3 different forms putting a hold on the bill that makes up the majority of road funding. The forms varied greatly as one would have focused on raising new money, one focused on the new tax structure and raising little new money, and one attempted to simply add a penny to the current tax paid at the pump.

Senate substitute S-9 failed twice Wednesday, once on an unrecorded 17-15 vote, falling just shy of the 20 needed to pass, and the second was a record roll call vote that ended with 17 aye votes and 21 no votes. The substitute looked to put a 7 percent wholesale tax on gasoline, this would equate to roughly 19.4 cents per gallon. The substitute then called for a 2 percent increase every year for 5 years, this would raise the tax to about 41.5 cents per gallon. 17 Republicans were joined by 4 Democrats in their effort to defeat the substitute.

After the failure of the first substitute Senate Majority Leader Randy Richardville (R-Monroe) proposed Senate Substitute S-10 that would have set the wholesale tax on gas at 7 percent with no increase. The plan was said to be revenue neutral and only addressed the structural change. The substitute failed the first time it was open for voting in a 14-24 fashion and was then considered a second time failing 19-16. The substitute had reached the 20 vote threshold for passing but before the minute long voting period had ended Senator Steve Bieda (D-Warren) changed his vote causing the substitute to fail.

Senate Majority Leader Richardville (R-Monroe) and Senate Minority Leader Whitmer (D-East Lansing) traded shots after session adjourned. Mr. Richardville made a statement saying that the chamber was close to solving road funding but the Democrats decided they did not want to address the structural problem. Ms. Whitmer responded saying that she was able to get two-thirds of her members to vote for the first substitute while Republican leadership could only get a third of their members to cast yes votes. She continued to attack Republican leadership saying that Governor Rick Snyder had not worked a single vote and was failing to lead on the issue.

The Senate also took up HB 5493 in an effort to repeal the current diesel tax and replace it with a tax rate equal to the rate in HB 5477. The bill was originally defeated with 18 yes votes and 19 no votes; however, when reconsidered the bill was passed by a 20-18 margin. Since the tax rate is tied to the rate in HB 5477 both bills would have to pass in order for the diesel tax to be enacted.

Senate Bills 847 and SB 752, involving the Homestead Property Tax Credit, were both passed with 37-1 vote counts. Senator Kahn was the only opposition to the bills which would lower the threshold for determining the credit to 2.6 percent of total household income from 3.5 percent and increase the credit as well as change the total household resource disqualifier. These bills are tie-barred to HB 5477 and HB 5493; meaning that in order for the Homestead Property Tax Credit bills to become law, so too must the road funding and diesel parity bills.

Another bill that was hotly debated by the Senate was HB 4630 which would alter motor vehicle registration fees. The debate pertained to an amendment Senator Morris Hood III (D-Detroit) proposed that would lower weight limits for trucks by 10,000 pounds a year for three years. The amendment was proposed after HB 5452, aimed at increasing overweight truck fees, failed 16 yes votes to 22 no votes. The amendment was defeated with only three Republicans supporting it. One amendment that passed would change the tax to $75 for pole trailers, semitrailers, trailer coaches, and trailers between zero and 2,499 pounds, a $200 tax for trailers between 2,500 pounds and 4,999 pounds and a $300 tax for 10,000 pounds and over. An amendment forcing vehicles that transport patients and medical equipment to pay a $10 fee for their plate was also passed. Senate Substitute S-3 containing these amendments to HB 4630 narrowly passed the chamber. While HB 4630 was being reconsidered arguably the most important amendment which would freeze registration fee rates beginning January 1, 2016 was passed. The amended version of the bill passed 21-15.

Three less controversial transportation funding bills were also passed in the Senate on Wednesday night. HB 5167 which passed with unanimous support would require Request for Proposals (RFP) on all projects over $100,000 for the Department of Transportation. It would also require local road commissions to go through an RFP process for all projects over $100,000 excluding routine maintenance. HB 5460 and HB 4251, which would require that road construction projects over $1 million have a warranty through the road agency and would require the bidding out of a project if a township contributes 50 percent of funding for a road construction project over $1 million, were passed 37-1.

Senate Joint Resolution A, which would increase the state sales tax from 6 percent to 7 and mandate that 90 percent of the new revenue be put towards road funding, failed miserably with a final vote count of 14 yeas and 24 nays. Since the issue was a constitutional amendment, two thirds of the chambers had to vote yes in order to pass the resolution. A motion to reconsider was made after the vote. SJR A was defeated with 13 Republicans and all Democrats excluding Senate Minority Floor Leader Tupac Hunter (D-Detroit) opposing.

An S-12 version of the measure was put on the voting board late Thursday that simply maintained the 19 cent per gallon gasoline tax, but allowed it to increase with inflation providing very little if any immediate revenue. That measure, however, met a similar demise.

During the action Thursday, a frustrated Senator Roger Kahn (R-Saginaw), a major supporter of the effort to raise as much as $1.8 billion, attempted to adjourn the Senate and ultimately left session.

It is yet unclear if the Legislature will continue to debate the issue until the expected single-day session in mid-July.

posted by PAA Online , Friday, June 13, 2014 10:10 AM
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Education Omnibus Heads to Snyder

The omnibus education budget was passed Wednesday by slim margins in both the House and the Senate. The budget allocates $15.75 billion to state universities, community colleges, and K-12 schools. The budget was approved with $177 million to increase foundation allowances. A $50 per-pupil increase could be seen in all districts along with a new equity payment, for school districts with foundation allowances lower than $7,251, of up to $125 per pupil if Governor Rick Snyder’s recommendation of distributing $150 million through the 2X formula is followed. The basic allowance would be set at $8,099 while the minimum pupil allowance would be $7,251.

The budget is a 4.1 percent increase to the current fiscal year’s budget and it is also higher than the original suggestions from the House, Senate, and the Governor. The Great Start Readiness Program will receive a reserve fund balance of $25 million while they will see a $65 million increase. The budget, as passed, would also allow families who have income levels of 300 percent of the poverty line or below to enter the program if all children whose families are at 250 percent of the poverty line have been helped. Included in the budget is $1.2 million for the contracting of health and nutrition education software. The bill also stipulates the use of the Michigan Educational Assessment Program (MEAP) for the 2014-2015 fiscal year and then requires the bidding out of a new test.

The Michigan Public School Employees’ Retirement System (MPSERS) received a $108 million increase in funding in order to maintain the 20.96 percent of payroll cap rate. Both the Governor and the House suggested $100 million to bring the cap rate down to 19.76 percent. The increase in the MPSERS funding is heralded by Republicans as an average of $500 per student of additional funding. The Democrats believe that while the MPSERS funding was good for schools it was a Republican policy that hurt the schools in the first place. School leaders have also expressed opposition saying that the $50 increase is not enough to close the gap of rising MPSERS costs and will lead to a $16 cut. These leaders said that it is possible for up to 150 school districts to feel the effects of these cuts.

posted by PAA Online , 10:09 AM
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Dietician Licensure Act Repeal Finalized

One of the final significant portions of Governor Rick Snyder’s Occupational Advisory Rules Committee Recommendations was pushed across the finish line Thursday evening when the Senate passed House Bill 4688, Representative Ed McBroom’s (R-Vulcan) legislation to deregulate dieticians.

The legislation, which passed the Senate 26-12 on a bi-partisan vote, will immediately repeal Michigan’s statute that regulates licensed dieticians – a statute that, despite going into effect in 2006, has never practically gone into effect.

The Department of Licensing and Regulatory Affairs (LARA), and its predecessor departments, have neither promulgated rules nor issued a single license under the statute, which heavily restricted access to the profession for other qualified professionals such as nutritionists.

posted by PAA Online , 10:08 AM
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Quote of the Week

“I would never get on public TV and castrate any of my colleagues.”

- Representative Carolyn Cheeks Kilpatrick, 1983

posted by PAA Online , 10:04 AM
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PAAdvisory Briefs

Part-Time Legislature Proposal Scuttled

The Committee to Restore Michigan’s Part-time Legislature suspended their campaign for a ballot proposal to make the Legislature part-time last week with news of the suspension coming Wednesday. The cause had some notable Republican support from Lt. Governor Brian Calley and National Committeeman Dave Agema, however there was not enough support to fund the effort or to get the effort organized. The failure to reach the signature threshold of 322,609 is not the first failed attempt at instituting a part-time Legislature in the state.

Board Seeking Recommendations for New Superintendent

On Wednesday the State Board of Education announced that they would seek public input on the replacement of the Superintendent of Public Instruction. The current Superintendent, Mike Flanagan, is going to retire next year. The board is accepting recommendations through their Facebook page, new website, emails, and during their meetings on June 17 and August 12.

posted by PAA Online , 10:04 AM
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