Early Warning System Bills

On Wednesday, the Senate Appropriations Committee heard public testimony on a package of bills designed to reduce the number of Michigan school districts in deficit or financial distress. State Senator Roger Kahn (R-Saginaw Township), Chair of the Senate Appropriations Committee, decided to delay voting on the bills until concerns of school groups could be addressed. The package of bills (SB 951, SB 952, SB 953, SB 954, SB 955, SB 957, and SB 978) had been discussed and modified over the summer in three work group sessions, but the original intent remains the same.

State Senator Howard Walker (R-Traverse City), who has spearheaded the effort, said the legislation was designed to institute a graduated scale of non-improvement, with greater degrees of disincentives such as the withholding of state aid or the placing of an emergency manager in the event a school or district continues to slide into financial distress. State Senator Bruce Caswell (R-Hillsdale) noted that financial information that schools submit to the state is inaccessible for nearly a year, making it difficult for the state to discern whether a school is in trouble.

Senator Mark Jansen (R-Gaines Township) expressed concern over the cost of additional employees that would be necessary to oversee the implementation of the legislation, but an official from the Department of Treasury said the cost is minimal when compared to the costs of having deficit districts or the appropriation of emergency funds. The Michigan Association of Intermediate School Administrators, Oakland Schools, Wayne Regional Education Service Agency, the Michigan Association of School Boards, and the Genesee Intermediate School District (ISD) showed support for some, but not all of the legislation. Others, such as the Calhoun ISD, felt the bills could be too burdensome. Senator Kahn said he would get together with Senator Caswell, Senate Majority Leader Randy Richardville (R-Monroe), and officials in the education community to discuss a future course of action and the timeframe to come to a compromise.

posted by PAA Online , Friday, September 12, 2014 1:01 PM
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Polls Show Schauer-Snyder Even, Peters Leading Land

Two polls from the first week of September, one from Public Policy Polling (PPP) and another from the Glengariff Group commissioned by the Detroit News, show the gubernatorial race is a dead heat between incumbent Governor Rick Snyder and Democrat Mark Schauer. Both polls showed Governor Snyder leading Schauer by 2 percentage points (44-42 for PPP, 46-44 for the Detroit News), and both results were within the margin of error. The last time the Glengariff Group polled the race, Governor Snyder was up 45 percent to Mark Schauer’s 35 percent. PPP’s last survey had each candidate at 40 percent. The polls were taken at the same time that Governor Snyder began a television ad campaign to counter Mark Schauer’s recent ads.

In the U.S. Senate race, both the Glengariff Group and Public Policy Polling show a strong lead for Democrat Gary Peters over Republican Terri Lynn Land. The Glengariff Group poll had Peters leading Land by a whopping 10 percent, while the PPP poll had Peters up by 5 percent head-to-head with Land and 7 percent when including third party candidates. The two polling services also had Secretary of State Ruth Johnson leading Democratic opponent Godfrey Dillard, while the Attorney General race between incumbent Republican Bill Schuette and Democrat Mark Totten was within the margin of error in both polls.

posted by PAA Online , 1:00 PM
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House Panel Approves Suspicion-Based Drug Testing for Welfare Recipients

The House Committee on Families, Seniors, and Human Services moved measures this week. SB 275 and HB 4118, which if passed, will establish a pilot program within the Department of Human Services that will allow for suspicion-based drug testing, based on a questionnaire, as a condition for receiving Family Independence Program benefits. All Democrats on the House Families, Children and Seniors Committee opposed the measure.

The bills allow recipients to continue receiving benefits after their first positive test for a controlled substance, so long as they attend a drug treatment program approved by the Department of Community Health. A second positive test would render the recipient ineligible for future benefits. The bills further define a controlled substance, while allowing for the presence of a substance so long as the individual possesses a prescription. This includes medical marijuana patients.

Edward Hoort, Director of the Center for Civil Justice, opposed the bill, telling the committee that the money spent administering drug tests would be better spent on drug treatment centers around the state. He noted states with similar programs have found few violators of the system, arguing that poor individuals do not have the money for drugs. Jane Zehnder-Merrell, Kids Count Director at the Michigan League for Public Policy, also spoke in opposition to the bill. She said substance abuse issues often involve multiple relapses, and that the second chance provision in the bill flies in the face of medical knowledge. She also argued that, like in other states, the bill will lead to more money being spent than saved.

State Representative Marcia Hovey-Wright (D-Muskegon) offered an amendment that would allow for the eldest child of the family to receive benefits in the event that their parent or guardian was rendered ineligible. The amendment was not adopted. State Representative Robert Kosowski (D-Westland) said he would support the bill if all state employees would also take a drug test. State Representative Kenneth Kurtz (R-Coldwater), Committee Chair, said he would take a drug test, but that the provision did not belong in SB 275.

posted by PAA Online , 12:59 PM
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Leaders Celebrate Detroit Water Deal

After a long, fierce, fight over the ownership and operation of the Detroit Water and Sewerage Department (DWSD), a compromise is nearly at hand. For more than a decade, the Detroit Mayor and City Council set wholesale water and sewer rates for the city and suburban communities, while suburban communities would tack on retail costs to get the water to consumers. While water main breaks have increased, and the idea of taking away control of the system from the city had been floated, it was something Detroit did not want to see. Tuesday’s deal is designed to solve all of those issues. Under the deal, Detroit will retain ownership of the System and will remain in charge of the water and sewer infrastructure serving city customers. However, the new Great Lakes Water Authority will have a suburban dominated board, control operations for regional infrastructure and set rates for the overall system, leasing Detroit’s infrastructure at $50 million annually for 40 years.

The payments to the city will be used to finance $500 to $800 million in bonds to upgrade the aging infrastructure in the city, but also to upgrade infrastructure under the authority’s control. Under the deal, the new authority will have two mayoral appointees, one representative from Macomb, Oakland, and Wayne counties, and one by the Governor to represent the service area outside the three counties. Major decisions will require a supermajority of five-sixths in order to pass. The proposed Memorandum of Understanding limits rate increases to no more than 4 percent for 10 years. However there will be an independent study to determine the economic viability of this limit, and there is an out clause in case it does not work. Union agreements will be honored, with 500 DWSD employees staying and 900 employees moving to the new authority. $4.5 million will be set aside to assist indigent ratepayers in order to avoid water shutoffs.

In order to proceed, the agreement needs approval from Detroit and one of the county boards of commissioners. In the event that the Detroit City Council rejects the proposed Memorandum of Understanding, the Detroit Emergency Manager could approve it on behalf of the city. If no counties act prior to the October 10 deadline, Governor Snyder will appoint the representative for that county. Officials expect that U.S. Bankruptcy Judge Steve Rhodes will see the new authority as part of closing out Detroit’s bankruptcy case.

posted by PAA Online , 12:58 PM
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PAAdvisory Briefs

Snyder Announces Board to Oversee PPT Replacement Revenues

Governor Snyder announced the five members of the new Local Community Stabilization Authority Council on Monday. The members will oversee distribution of revenue to local governments that replaced the phased-out Personal Property Tax (PPT) revenue. Once the initial appointments expire, members will serve six-year terms. The appointments were: Marquette County Administrator Scott Erbisch of Marquette for a term ending September 3, 2015; Dearborn Mayor John "Jack" O'Reilly for a term expiring September 3, 2016; business owner Megan Crandall of Traverse City for a term expiring September 3, 2017; Coldwater Township Treasurer Donald Rogers for a term expiring September 2, 2018; and Priority Health vice president and chief financial officer Mary Anne Jones of Rockford for a term expiring September 3, 2019.

Milliken Endorses Snyder

Michigan’s longest serving governor, Bill Milliken, said Tuesday he was endorsing Governor Snyder for re-election. The former Governor also supported Governor Snyder in 2010. Governor Milliken praised Governor Snyder for his efforts to bring in more than 300,000 new private sector jobs, raise funding for education, and help Detroit get back on its feet.

posted by PAA Online , 12:57 PM
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