House Fiscal Agency Paints Murky Picture for House Appropriations Committee

House Fiscal Agency Paints Murky Picture for House Appropriations Committee

Much has been made of the budget shortfall in the state’s current fiscal year that the Legislature will have to address early this session; however, during their first meeting this week the House Appropriations Committee learned from the House Fiscal Agency that their work won’t stop there as the 2015-2016 budget will bring challenges of its own.

Chairman Representative Al Pscholka (R-Stevensville) set strict parameters for the Committee’s operation in the new session after the panel was known for rarely starting on time during the last legislative session. The Committee’s meetings will start promptly at 9AM on Wednesdays and, if a quorum is not present, the meeting will be cancelled and rescheduled for either Thursday afternoon or Friday.

As for the information from the House Fiscal Agency, Director Mary Ann Cleary outlined several areas of liabilities including:

· Personal property tax reform will cost the state an estimated $126 million in General Fund revenue in fiscal year 2016 and $350 million in fiscal year 2017.

· Michigan Public School Employees Retirement System (MPSERS) payments will increase by $218 million in fiscal year 2016.

· Old Michigan Business Tax (MBT) credits being cashed-in to the tune of $288.9 million in combined General Fund and School Aid Fund revenue hit in the current fiscal year and an estimated $526.5 million combined in 2015-2016.

· $50 million this year and another $50 million next year to repay the Venture Michigan Fund for tax vouchers collateralized in 2006.

Chairman Pscholka made it clear that one of his primary goals is to better educate the public on the state budget process so that average taxpayers don’t believe the state has $53.2 billion to spend any way it wants.

posted by PAA Online , Friday, January 30, 2015 10:40 AM
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Shirkey Drops Advanced Nursing Legislation

State Senator Mike Shirkey (R-Clarklake) introduced legislation this week that very closely resembles former Senator Mark Jansen’s hotly-contested Senate Bill 2 from last session. Senator Shirkey’s bill, Senate Bill 68, is major reform to the Public Health Code to establish license requirements for advanced practice registered nurses (APRNs), expanding their scope of practice.

The measure was referred to the Senate Health Policy Committee, a panel Senator Shirkey Chairs. State Senator Rebekah Warren (D-Ann Arbor) co-sponsored the measure.

Unlike Senate Bill 2, Senator Shirkey’s proposal sets up a fund within the Department of Treasury where a portion of the license fees from APRNs would be deposited and used by APRNs working in under-served areas of the state. Many in the health care industry are predicting a shortage of primary care physicians in the near future and SB 68 is viewed as a measure aimed at providing needed access.

Senator Jansen’s measure did not progress after moving to the House of Representatives last session as the then House Health Policy Committee Chair former Representative Gail Haines supported the Michigan State Medical Society’s position in opposition to the measure. It remains to be seen what future the measure may have with new leadership across the board in both the House and Senate, at the committee level and the legislative chambers as a whole.

posted by PAA Online , 10:38 AM
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ACT Appeal Rejected

ACT appealed for the state’s decision to use the SAT for the college entrance portion of the high school test, and as expected, lost the appeal. Next week the contract is expected to return to the Administrative Board and is likely to be approved.

ACT officials appealed based on the argument that the state changed the request for proposals (RFP) without a notice to the bidders, and that the state had wrongly deducted points for their inclusion of a writing assessment. Chief procurement officer for Michigan Jeff Brownlee argued that both College Board (SAT) and ACT officials were given additional time to revise their pricing to meet the compliances of the RFP. Mr. Brownlee also commented that ACT had points appropriately deducted because the writing assessment is considered an enhancement to the test, where the RFP had requested off-the-shelf testing products.

ACT also put in a request for an appeal, dependent on their response from a Freedom of Information Act request; however Mr. Brownlee has preemptively rejected this stating that the Freedom of Information Act is not intended to assist in the RFP process.

posted by PAA Online , 10:37 AM
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Clash in the Committee; New Leadership Arrangements

House Speaker Kevin Cotter (R-Mt. Pleasant) and House Democrats have already begun to clash regarding the House Appropriations Committee leadership assignments this past week.

Speaker Cotter had originally appointed Representative Pam Faris (D-Clio) as the Minority Vice Chair of the Committee despite Minority Leader Tim Greimel’s desire and announcement that Representative Brandon Dillon from Grand Rapids would serve as the Democratic Vice Chair. Representative Greimel (D-Auburn Hills) had publicly announced Representative Dillon for the position before the committee assignments were presented to the public.

In response, all 11 Democratic members of the Appropriations Committee refused to serve the in the ranking position until the Speaker would meet with Representative Greimel and appoint Leader Greimel’s selection. Instead, Speaker Cotter appointed Representative Harvey Santana (D-Detroit) as the Minority Vice Chair, and removed Representative Faris from her position on the Committee.

Representative Santana is now the appointed Minority Vice Chair of Appropriations, and will also serve on the House Fiscal Agency Governing Committee in place of Representative Faris. She, on the other hand, will replace Representative Santana on the Financial Liability Reform Committee and the Military and Veterans Affairs Committee.

posted by PAA Online , 10:37 AM
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PAAdvisory Briefs

Martin to Florida; Campau to Head Realtors

Longtime Michigan Realtors Association CEO Bill Martin will be leaving Michigan to lead the Florida Realtors Association and will be succeeded by current Chief Operating Officer Robert Campau. The change will take effect March 20^th. Bill Martin served as a member of the Michigan House of Representatives from 1987-1994 and then as Director of the State Lottery and the Department of Corrections under former Governor John Engler. Mr. Campau has been with the Michigan Realtors since 1995.

Iron Belle Trail Announced

Currently in development, a new trail that connects Belle Isle in Detroit to Ironwood in the Upper Peninsula has officially received a name, sources from the Department of Natural Resources (DNR) announced this week. The “Iron Belle Trail” showcases a 1,250 mile hiking route and a 774 mile bicycle route, aspects that DNR Director Keith Creagh believe will help connect communities with recreational activities to be enjoyed by resident and visitor alike.

Michigan Improves to 12^th Lowest Unemployment Rate

Normally placed in the top ten highest rates for unemployment, Michigan has now improved to hold a shared 12^thlowest rate, according to data from the U.S. Bureau of Labor Statistics. At 6.3 percent, Michigan, along with Alaska and Washington, are ahead of several states including Washington D.C. (7.3). The lowest rates were held by North Dakota (2.8), Nebraska (2.9), Utah (3.5) and Minnesota (3.6).

Driskell Considering Bid to 7^th U.S. House Seat

Representative Gretchen Driskell (D-Saline) confirmed Wednesday that she is considering a run for the 7^th U.S. House Seat in 2016. The seat is currently held by U.S. Representative Tim Walberg (R-Tipton) and has been regarded as one of the more competitive seats in the state over the last few election cycles. Representative Driskell has not confirmed a decision at this time, only that she is considering a run.

posted by PAA Online , 10:36 AM
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