Detroit Bills Signed, Retirees Urged To Approve Plan

Friday, June 20, was a day of celebration in Detroit as the Governor signed bills granting $195 million dollars from the state to be used in the Detroit bankruptcy. The bipartisan package still needs to be approved by city bondholders and retirees in order to be put into effect. The event, which was held at the Department of Natural Resources Outdoor Adventure Center, was heralded as a milestone, but saw many speakers stress the necessity for a “yes” vote from pensioners, who have until July 11 to turn in their ballots, to complete the Grand Bargain.

Detroit Mayor Mike Duggan highlighted the strides that had been made both in Lansing and Detroit over the last year. Mr. Duggan said a year ago there was fighting in both Lansing and Detroit, but this time people from both parties were able to come together and accomplish something that only a year ago many thought was impossible. Emergency Manager Kevyn Orr echoed Mayor Duggan’s sentiment on the progress made. Mr. Orr said that when he first began pushing the Grand Bargain, many legislators said that they would not support putting any money toward the city. He applauded the leadership in Lansing that led to this bipartisan effort. The man behind brokering the Grand Bargain and the chief mediator in the Detroit Bankruptcy, U.S. District Court Judge Gerald Rosen, spoke to the incredible leadership not only from the Legislative Leaders and the Governor but from all three branches of government.

Members of the Legislature from both parties joined Governor Snyder in celebration at the bill signing. Both House Speaker Jase Bolger (R-Marshall) and Senate Majority Leader Randy Richardville (R-Monroe) reflected on the importance of the votes that were held in their chambers to provide aid to Detroit. Both men spoke Friday saying that passing the bankruptcy package has potential to be one of the most important things they do in their political careers. Mr. Bolger elaborated, saying that a difference will be made in Detroit due to all of the different parties that were involved banding together to help with the Grand Bargain. Mr. Richardville said that this legislation was about the people who it affected not the financial situation of the city and that is what made it historical.

Representatives John Walsh (R-Livonia) and Thomas Stallworth (D-Detroit) were in attendance as they were the driving force behind forging the legislation. Both men were thanked repeatedly by House Speaker Bolger and House Minority Leader Tim Greimel (D-Auburn Hills) for their tireless effort that made the passage of the package possible.

Shirley Lightsey, a representative of the Detroit Retired City Employees Association, touched on the frustrations from the retirees about the vote and the lack of information they have been given. She said that once the information was received retirees still had to get over their frustrations with the package; however, she said that the only way to vote was yes. She stated that with a yes vote retirees would see a 4.5 percent cut to their pensions but the alternative was a 27 percent cut if the Grand Bargain was not approved.

Representative Thomas Stallworth III (D-Detroit), Governor Rick Snyder, and Emergency Manager Kevyn Orr all spoke to the importance of a yes vote on the issue. All three men emphasized that the passage of the Grand Bargain is the best scenario for retirees. While issues of mistrust and cuts to pensions were discussed it was made clear that a no vote would only set the bankruptcy process back and lead to a loss of funds from foundations, unions, and the state.

House Bill 5566, HB 5567, HB 5568, HB 5569, HB 5570, HB 5573, HB 5574, HB 5575, HB 5576, and HB 5600 were all signed into law by the Governor between Thursday night and the ceremony on Friday.

posted by PAA Online , Friday, June 27, 2014 11:49 AM
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Snyder Signs Education Budget Increasing Funds, Restoring MEAP

On Tuesday, Governor Snyder signed the budget increasing funds for all education levels and retaining the Michigan Educational Assessment Program (MEAP) for another year. The total money directed toward education programs reaches $15.75 billion. Community colleges will receive a 3 percent increase, universities a 6 percent increase, and a $50 per student increase to all school districts with up to $125 available for the lowest funded district under House Bill 5314. The Governor acknowledged that the distribution of funds is different from his preferred distribution, which would give the lowest funded districts twice the increase of the other districts, but stated that the budget involves compromises and this was one of the compromises. HB 5314 also dedicates $1.2 million for a statewide contract for health and nutrition software which was supported by the chair of the House Appropriations School Aid Subcommittee, Representative Bill Rodgers (R-Brighton).

Governor Snyder elaborated on his reasoning for increased funding for universities, saying that he hopes the funding will allow for a drop in tuition as well as restoring all the funding that was removed in his first budget. In addition to the increase in funding, the Governor said that the state needs to increase incentives for dual enrollment programs, which allow high school students the opportunity to earn college credits for free.

Mr. Snyder said that early childhood programs saw an increase in the budget making them fully funded, and the state became a “no wait” state for preschool due to the increase. Participating in the bill signing were some of the top robotics teams in the state representing the First Robotics program. The teams used their robots to deliver the pens used to sign the budget to Governor Snyder.

The decision to allocate much of the K-12 education increase to the Michigan Public School Employees Retirement System (MPSERS) has drawn many opponents; however, Mr. Snyder defended this spending stating that school districts will be able to spend their money they receive directly on more vital areas because of the state funding to MPSERS.

Due to stipulations in the budget, the Department of Education will be required to use the MEAP next year rather than the Smarter Balanced Assessment Coalition which was their plan. Contrary to original statements from the department, Superintendent of Public Instruction Mike Flanagan said that the department will comply with the law and have a new MEAP ready for administering next year.

posted by PAA Online , 11:49 AM
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Campaign Update

Senator John Moolenaar (R-Midland) received an endorsement from U.S. Representative Dave Camp (R-Midland) to be his successor in the 4^th U.S. House District. The endorsement provides Senator Moolenaar with yet another advantage in a race in which he is already favored. Mr. Moolenaar faces both Peter Konetchy and Paul Mitchell in the Republican primary.

Representative Joe Haveman (R-Holland) has endorsed Daniela Garcia to succeed him in the 90^th House District. With this endorsement, Mr. Haveman has made it clear that he is not supporting his distant cousin Geoff Haveman who is also running in the five-way Republican primary.

On Tuesday Representative Rudy Hobbs (D-Southfield) announced endorsements from the American Federation of Teachers-Michigan and the Michigan Education Association (MEA) in his bid for 14^th U.S. House District. The announcement was made at the Lathrup MEA Offices.

posted by PAA Online , 11:48 AM
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Quote of the Week

“If this were a true democracy they’d take him out to the wood shed and shoot him.”

Rep. George Montgomery, 1976

posted by PAA Online , 11:47 AM
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PAADVISORY BRIEFS

Federal Government OKs Disaster Declaration for Newaygo, Osceola Counties

People affected by severe flooding in Newaygo and Osceola in April are now able to receive federal aid after the U.S. Small Business Administration granted the state’s request for a disaster declaration. The declaration will also allow citizens and businesses affected by the flooding to receive low-interest loans. Clare, Kent, Mecosta, Missaukee, Montcalm, Muskegon, Oceana, and Wexford counties were covered in a previous declaration.

Snyder Appoints Review Team for Benton Harbor Schools’ Finances

Due to the Local Emergency Financial Assistance Loan Board’s decision in April regarding the financial stress of Benton Harbor Area Schools, Governor Rick Snyder has appointed a financial review team to look over the schools financial situation. The school district has been running a deficit since the 2006-07 fiscal year and is expected to have a $14.7 million deficit at the end of the fiscal year ending June 30, 2014. The team has 60 days to report to the Governor whether or not there is a financial emergency in the district.

Hilfinger Departs MEDC to Return to Foley & Lardner

The chief operating officer of the Michigan Economic Development Corporation, Steven Hilfinger, announced that he will be returning to Foley and Lardner LLP, his previous law firm. Before Mr. Hilfinger joined the MEDC, he was the director of the Department of Licensing and Regulatory Affairs.

posted by PAA Online , 11:46 AM
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