Road Funding In Voters’ Hands

The news of an agreed upon solution to road funding between the Legislative Quadrant and Governor Rick Snyder was announced at noon on Thursday. The solution included an increase in the sales tax from 6 to 7 percent, the removal of the sales tax from gasoline, a new fuel tax which will be set at 14.9 percent of the wholesale price, increased fees for heavy trucks, changes to vehicle registration, and a new fee placed on electric and hybrid vehicles.

Bipartisan support in the House and the Senate as well as support from the Governor led to the passage of this transportation funding package, which is set to give Michigan voters the ability to fix the roads. While many of the bills in the package laid out crucial elements to road funding, the necessary $1.2 billion to execute the plan will come from a ballot initiative facing voters in May. If the ballot initiative, which will raise the sales tax, is defeated on May 12, a special election date, then all pieces of the transportation package other than “Main Street Fairness” would be repealed. The repeal of this legislation would send the State back to square one for road funding solutions.

With the announcement of the agreement on transportation funding the process to pass the bills began; however, the translation of the agreement into bills took eleven hours of work from the Legislative Services Bureau. Shortly after the completion of this process the three conference committees approved the measures sending them to a vote in the full bodies of the Legislature.

Although the House passed the eleven bill package shortly after midnight, the passage did not come as easy in the Senate causing both chambers to remain in session until early Friday morning with the final passage of the sales tax increase, the last piece of legislation, coming at 5:30 a.m. in the Senate. Most of the night was spent searching for the 26th vote, making the two-thirds majority needed, in the Senate chambers. The first attempt to pass House Joint Resolution UU, the sales tax increase, in the Senate fell one vote short of the two-thirds majority needed. Following this failure Senate Majority Leader Randy Richardville (R-Monroe) entered into a heated exchange with Senator Mike Green (R-Mayville) for voting no. When the vote was reconsidered Senator Green was the 26th vote needed for passage, shortly after his yes vote was recorded the House passed Mr. Green’s bill, Senate Bill 789, which eliminates local gun boards and moves concealed pistol licensing to county clerks.

Mr. Green was not the only one who received priority legislation to gain their support for the transportation package as Democratic caucuses in both chambers scored victories during the marathon session. The largest of these victories was the restoration of the Earned Income Tax Credit to 20 percent. The Lansing Democrats also celebrated the expiration of legislation such as the Michigan Religious Freedom Restoration Act, the changing of the Oakland County executive election date, and Electoral College reform.

The final day of Lame Duck session also saw the death of bills that would set up an early warning system for financially troubled schools, allow for the creation of a teacher evaluation system, legalize and put regulations on dispensaries of medical marijuana, and allow edible forms of medical marijuana.

posted by PAA Online , Friday, December 19, 2014 12:27 PM
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Prohibition On Student-Athlete Unions Heads To Snyder

The Senate passed House Bill 6074 on Tuesday with a 25-11 vote, sending the bill to Governor Rick Snyder’s desk for signing. If the bill is signed collective bargaining for college student athletes would be prohibited and the Michigan Employment Relations Commission (MERC) would be required to calculate expenses related to public collective bargaining. The bill would also require that a declaration naming the local units being represented be filed by exclusive bargaining representatives The MERC would receive $100,000 under HB 6074 to cover costs related to the posting of collective bargaining expenditures online.

The bill was passed close to party lines after being kept on the Senate floor, rather than being assigned to a committee, and being advanced to Third Reading. Senators Tory Rocca (R-Sterling Heights) and Tom Casperson (R-Escanaba) were the lone Republicans to oppose the bill, while Senate Minority Floor Leader Tupac Hunter (D-Detroit) was the sole supporter from the Democratic caucus.

The handling of the bill by the Senate drew criticism from Representative Andy Schor (D-Lansing), as he believed the lack of committee assignment kept the bill from being fully considered. Representative Schor furthered his questioning; saying that without hearing testimony from college athletes in committee the issue was being unfairly dismissed and an opportunity to help college athletes was being ignored.

The sponsor of the bill, Representative Al Pscholka (R-Stevensville), disagreed with Mr. Schor saying that the committee hearing in the House ensured that the legislation had not been rushed through the legislative process. Mr. Pscholka continued saying that the bill sent a much needed message to college student athletes, that the most important aspect of their time in college is their education and not becoming part-time employees of the university. Greg McNeilly, President of The Michigan Freedom Fund, joined in support of HB 6074, saying that the unionization of college athletes would increase the costs of a college education.

posted by PAA Online , 12:26 PM
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MSF Approves Pork Processing Facility, Senate Office Bonding

The Michigan Economic Development Corporation (MEDC) announced that, with the help of the Michigan Strategic Fund, Clemens Food Group will establish a pork processing facility in Coldwater Township. The Michigan Strategic Fund approved block grants totaling $12.5 million for on the job training, workforce development, land acquisition, and infrastructure improvements for the city of Coldwater. The facility is expected to create 810 jobs in the area and invest $255.7 million in capital investment, with 644 of these being funded by the block grants.

The Michigan site was selected over a site in Ohio, which was also being considered for the Midwest expansion of the Clemens Food Group pork production operations. The site was chosen based on the support for the facility from both the State and community as well as labor force preparedness and site feasibility. According to the MEDC, the Michigan Department of Agriculture and Rural Development spent three years considering the impact of a pork processing facility with the help of Michigan pork producers. The group used a grant for $100,000 in order to investigate the possible outcome of the plant.

The Director of Agriculture, Jamie Clover Adams, and Governor Rick Snyder both applauded the cooperation of the State and local governments with the Clemens Food Group. Adams continued saying that the project shows the improved agricultural economy throughout the state.

The Michigan Strategic Fund approved various other items including $70 million in bond financing for new Senate offices in the Capitol View building between the basement and seventh floor. The Strategic Fund also approved up to $20.035 million in private bond funding for the Greater Detroit Resource Recovery Facility in Detroit; $4.25 million in a grant to Brose New Boston, Inc. for expansion resulting in $97.6 million in investment and 475 new jobs; $1.7 million to the Paslin Company for the construction of a new facility in Shelby Township and expansion of their other facilities which will create 224 new jobs and invest more that $20.6 million; and $1.9 million in block grants, for on-the-job training for 138 new employees, was given to Watervilet Township for the expansion of a Lane Automotive Inc. facility.

posted by PAA Online , 12:26 PM
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Unemployment Rate Hits Recent Low As Jobs Added

Wednesday, the Department of Technology, Management and Budget announced that the seasonally adjusted unemployment rate was down to 6.7 percent. With the addition of 13,000 new jobs the state has seen four consecutive months of employment growth and the eighth month of 2014 that has shown an unemployment decline. The report showed 4.4 million people working out of the 4.7 million in the workforce. November’s changes put the year-to-date average unemployment rate at 7.4 percent, below the 8.8 percent rate from the same period in 2013.

posted by PAA Online , 12:25 PM
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Newsletter Next Week

A newsletter for the week of December 22, 2014 will not be released. The Public Affairs Associates office will be closed on Wednesday, December 24th through Friday, December 26th and again Wednesday, December 31st through Friday, January 2nd. We wish you a happy holiday season.

posted by PAA Online , 12:24 PM
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