Road Funding Measure Clears Senate

In the ongoing battle to raise roughly $1 billion for road funding in Michigan, the Senate was finally successful in passing a measure back to the House late Thursday afternoon.

After several more failed attempts (beyond the many in June), the S-13 substitute of House Bill 5477 was passed on a 23-14 vote. It took three attempts at adopting the substitute, one non-roll call and two roll call votes, before the chamber could even consider the matter. When the first roll call vote failed, the Senate recessed for about an hour after which the substitute was adopted without a roll call vote and the Senate moved very quickly to voting on final passage.

The bill would replace the current cents per gallon tax structure (19 cents per gallon on gasoline, 15 cents per gallon on diesel fuel) with a tax at the wholesale level. Under the bill, the percentage would start at 9.5 percent as of April 1, 2015 and move to 11.5 percent on January 1, 2016, 13.5 percent on January 1, 2017, and 15.5 percent on January 1, 2018.

A very similar measure was voted on in June and failed 17-21. The difference in vote tally today were moves from “no” to “yes” from Senators Darwin Booher (R-Evart), Judy Emmons (R-Sheridan), Goeff Hansen (R-Hart), Howard Walker (R-Traverse City), Morris Hood (D-Detroit), and Coleman Young (D-Detroit).

Ten Democrats joined 13 Republicans in supporting the measure. Senator John Moolenaar (R-Midland) was absent:

“Yes” votes include: Senators Jim Ananich (D-Flint), Steve Bieda (D-Warren), Darwin Booher (R-Evart), Tom Casperson (R-Escanaba), Judy Emmons (R-Sheridan), Vincent Gregory (D-Southfield), Goeff Hansen (R-Hart), Morris Hood (D-Detroit), Tupac Hunter (D-Detroit), Bert Johnson (D-Highland Park), Roger Kahn (D-Saginaw Township), Mike Kowall (R-White Lake Township), Jim Marleau (R-Lake Orion), Arlan Meekhof (R-West Olive), Mike Nofs (R-Battle Creek), John Pappageorge (R-Troy), Randy Richardville (R-Monroe), Tonya Schuitmaker (R-Lawton), Virgil Smith (D-Detroit), Howard Walker (R-Traverse City), Rebekah Warren (D-Ann Arbor), Gretchen Whitmer (D-East Lansing), and Coleman Young (D-Detroit).

“No” votes include: Senators Glenn Anderson (D-Westland), Jack Brandenburg (R-Harrison Township), Bruce Caswell (R-Hillsdale), Patrick Colbeck (R-Canton), Mike Green (R-Mayville), Dave Hildenbrand (R-Lowell), Hoon-Yung Hopgood (R-Taylor), Joe Hune (R-Whitmore Lake), Mark Jansen (R-Gaines Township), Rick Jones (R-Grand Ledge), Phil Pavlov (R-St. Clair Township), John Proos (R-St. Joseph), Dave Robertson (R-Grand Blanc), and Tory Rocca (R-Sterling Heights).

The measure was given immediate effect and returned to the House.

While speculation exists as to what provisions or “deals” were made to move votes, it is widely understood that the increase in Democratic support (from 8 “yes” votes to 10) was related to a $200 million commitment to restoring the Homestead Property Tax credit and an understanding from the Administration and the Senate Republican leadership that some highly divisive and partisan issues (such as changes to the electoral college or prevailing wage) would not be pursued during lame duck.

posted by PAA Online , Friday, November 14, 2014 9:13 AM
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Senate Appropriations Moves “Early Warning” Package

The Senate Appropriations Committee took action on a package of bills this week that proponents say will provide earlier indication to the State and others of a school districts financial distress and thereby discourage falling into emergency management. The panel moved Senate Bills 951, 952, 953, and 954 to the floor with the Democrats present at the hearing all opposing the measures.

SB 951 would allow the Department of Education to withhold all or part of the payment due to a district or intermediate school district (ISD) to the extent the withholdings were part of a plan developed and implemented by current law, which allows for districts with deficits of $100 or more per pupil to borrow money with state approval. The bill also allows the Department to withhold up to 10 percent of total state school aid if a district or ISD does not meet requirements to submit an annual budget complying with current law and make information on various expenditures available on its website.

SB 952 would impose several requirements on a school district, ISD or public school academy with an existing deficit fund balance, including immediately reporting the deficit to the State Superintendent of Public Instruction and the State Treasurer, as well as submitting an amended budget for the current school fiscal year and a deficit elimination plan within a certain period of time. The State Superintendent would establish the period within which a deficit would have to be eliminated and set special conditions to be met.

SB 953 would allow the State Treasurer to declare a financial emergency exists and recommend that the Governor appoint an emergency manager in a situation in which a school district was subject to an enhanced deficit elimination plan and failed to submit the plan or comply with its requirements.

SB 954 would allow the State to withhold funds for failure to submit deficit elimination plans or enhanced deficit elimination plans, as well as require the Departments of Education and Treasury to jointly consult with the chief administrative officer of a district or ISD required to submit a deficit elimination plan. This bill would remove language requiring a quarterly deficit district report to the Legislature and language prescribing the existing process for submitting deficit elimination plans.

The Committee did not act on Senate Bill 957, clearly the most controversial of the package in its current form. The substitute proposed to the Committee would have required school districts to submit budgetary assumption reports to the Center for Educational Performance and Information (CEPI) and would require the report to include at least expenditures per pupil for the prior year, the assumed foundation allowance, projected pupil membership, and projected expenditures per pupil. CEPI then must send a final assumption summary report to each intermediate school district and authorizing body that reflects any changes reported to it in budgetary assumptions, as well as transmit that report to the superintendent of public instruction and state treasurer.

Senate Appropriations Committee Chairman Roger Kahn (R-Saginaw) noted that the quantity of concern relative to SB 975 warranted delaying action until the Legislature’s return to session in early December.

posted by PAA Online , 9:12 AM
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SML-elect Meekhof Makes it Official – Hildenbrand to Chair Senate Appropriations

As expected, Senate Majority Leader-elect Arlan Meekhof (R-West Olive) made it official this week by announcing that Senator Dave Hildenbrand (R-Lowell) will Chair the Senate Appropriations Committee when the new Legislature takes office in January.

Senator Meekhof made several other announcements as well, including appointing Senator Jim Marleau (R-Lake Orion) as Chair of the Committee on Committees and Senator Dave Robertson (R-Grand Blanc) as Chair of the Policy Development Committee.

Joining Senator Marleau in deciding the committee structure and composition will be Senator Darwin Booher (R-Evart), Senator-elect Jim Stamas (R-Midland), and Senator-elect Mike Shirkey (R-Clarklake).

Joining Senator Robertson on the Policy Development Committee will be Senator Goeff Hansen (R-Hart), Senator-elect Wayne Schmidt (R-Traverse City), and Senator-elect Margaret O’Brien (R-Portage).

Finally, Senator Meekhof announced that his current Chief of Staff Bob DeVries will serve as Majority Leader Chief of Staff in the new legislative term.

posted by PAA Online , 9:11 AM
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PAAdvisory Briefs

Talk of Johnson’s Ousting

In the wake of a highly successful Republican result in November’s general election, chatter has started about the possibility of the Michigan Democratic Party replacing current Chair Lon Johnson. Oakland County Democratic Chair Frank Houston, Oakland County Commissioner Dave Woodward, and former Party Chair Mark Brewer are among the names being discussed as possibilities.

Lobenherz to Retire – Bajema to Succeed

Michigan Soft Drink Association and Lansing presence Bill Lobenhertz is retiring effective January 1, 2015 and will be replaced by Derek Bajema who joined the group as Vice President just recently. Lobenherz started his career in Lansing with the Legislative Service Bureau and worked for the Michigan Association of School Boards, Wayne State University, and Dykema Gosset. Bajema was most recently the Legislative Director for the Michigan Department of Agriculture and Rural Development and previously worked for former Senator Gerald VanWoerkom.

posted by PAA Online , 9:10 AM
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