Governor Calls for Significant Government Restructuring in State of the State Address

Michigan Governor Rick Snyder delivered the first State of the State address of his second term Tuesday evening. The Governor briefly outlined the improvements in Michigan since he first took office, recent legislative successes, and called for significant reforms to state government.

You can view the entire speech and read more detail here.

The Governor stated that he viewed his first term as being largely about putting the state back on sound fiscal ground and that his second term would be more about making changes to government so that it works better for people.

The most significant announcement from his remarks was the merger of the Department of Community Health (DCH) and the Department of Human Services (DHS), a proposal he titled “the River of Opportunity,” targeting reforms in the manner services are delivered to those needing assistance in returning to mainstream life. The new Department of Health and Human Services will be huge – some 14,000 employees and roughly 46 percent of the state’s entire $52.3 billion budget, but will be built to “improve lives, not maintain programs” as the Governor stated.

Other highlights included:

· Efforts to improve skilled trades training (Governor Snyder made it a point on Wednesday that funding for this program is a top priority and is safe even though his office is busy preparing some $330 million in cuts due to the projected budget shortfall);

· A new energy agency to coordinate environmental, regulatory, and economic issues;

· Regional prosperity teams for economic development; and

· Improved school management system.

The Governor also took time during his speech to call for support of the road funding sales tax increase package that will be before voters in May, asking citizens to vote yes.

Not much time was spent in discussing energy and the environment, or the Governor’s mention of a prescription drug addiction problem in Michigan; however, the Governor pointed to special messages coming on each in the next few months.

Finally, the Governor did mention that he encourages the Legislature to continue a conversation on expanding the Elliott-Larsen Civil Rights Act, decrying discrimination in any form; however, he did not go as far as to clarify his position on the issue or request that the Legislature pass an expansion.

posted by PAA Online , Friday, January 23, 2015 10:11 AM
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Arwood New MEDC CEO

Steve Arwood was appointed Michigan Economic Development Corporation (MEDC) CEO this week by the MEDC Executive Committee and soon-after was named President and Chair of the Michigan Strategic Fund by Governor Rick Snyder. Arwood will take the position immediately, replacing Michael Finney who was name senior advisor for economic growth in the Governor’s cabinet.

Arwood will also lead the new Talent and Economic Development Department the Governor announced at the end of 2014. His tasks will include implementation and execution of the MEDC’s core missions of business attraction and development, capital access, and improvement of Michigan’s image and brand.

Arwood came to MEDC as chief operating officer in August 2014 after serving as Director of the Department of Licensing and Regulatory Affairs (LARA). Former LARA Chief Deputy Director Mike Zimmer was named interim LARA Director and officially appointed to the director position in December to replace Arwood.

posted by PAA Online , 10:10 AM
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Michigan Unemployment Falls to 12-year Low

The state’s unemployment rate dropped 0.4 percentage points in December to 6.3 percent, the lowest the rate has been since the 6.2 percent rate of November 2002.

Employment was up 21,000 in December, at 4.437 million – still below the 2008 levels of prior to the Great Recession and the 4.7 million employed in November of 2002; however, down 2 percentage points in just the last year and down 2.7 percentage points from the 9 percent rate of August 2013.

Roughly 298,000 are unemployed, the first time since October 2001 that number has been below 300,000. Even the Detroit-Warren-Livonia labor market, the state’s largest and generally highest rate, fell to 7.5 percent – the lowest for that region since March 2008.

Professional and business services showed high gains of 3,000, with construction (2,000) and financial activities (2,000) right behind.

posted by PAA Online , 10:09 AM
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PAAdvisory Briefs

Smith to Lead Black Caucus

State Senator Virgil Smith (D-Detroit) was unanimously elected to lead the Michigan Legislative Black Caucus in an announcement made by his office this week. The Senator stated, “I look forward to working with my colleagues on both sides of the aisle to address the needs and concerns of our constituencies to everyone in the Michigan House and Senate.”

Retail Sales Gets Modest Increase in 2014

Sales for the 2014 holiday season were up 1.1 percent over the same period in 2013 according to the Michigan Retailers Association in their most recent Michigan Retail Index announcement. Sales were up 1 percent for the full year over 2013 numbers. Roughly one-third of retailers reported sales up more than 5 percent while another 23 percent had flat sales and only 25 percent lost ground from 2013.

PAAdvisory Correction

In last week’s edition, PAAdvisory incorrectly listed State Representative Aaron Roberts as the Vice Chair of the House Committee on Regulatory Reform. State Representative Brett Roberts (R-Charlotte) is the Vice Chair.

posted by PAA Online , 10:09 AM
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