Road Fix Defeated at the Polls

Proposal 1 was dealt an overwhelming defeat as 80 percent of voters rejected the sales tax increase and road-funding plan. The proposal, backed by Governor Snyder, would have generated $1.2 billion more for roads as well as new funding for schools and local governments.

When the night was over and ballots were counted, only 19.9 percent voted in favor of the funding plan, which called for an overall tax increase of $1.9 billion. The proposal would have hiked the state sales tax to 7 percent from 6 percent, taken the sales tax off fuel sales, and hiked fuel taxes, raising close to $1.3 billion extra for roads. It would also have generated nearly $200 million a year more for schools, $116 million for transit and rail, sent $111 million more to local governments, and given a $260-million tax break through restoration of the Earned Income Tax Credit.

Now the Legislature and Governor Snyder must come up with a new plan to provide adequate funding for roads and transportation. Late this week, House Speaker Kevin Cotter (R-Mt. Pleasant) unveiled a plan for road funding since the voters rejected the ballot proposal, which includes a re-evaluation of certain tax credits as well as a review of some $20 billion in restricted revenue. The Speaker did not go into detail on the restricted revenue, however, a press statement put out by his office said "the income tax code contains several subjective and arbitrary credits and exemptions," and those "carve-outs" often force the state to cut checks with taxpayer dollars.

With the FY 2015-2016 budget still in play and revenue estimating conferences on the horizon, the Legislature may be able to find some additional monies for roads, but there will need to be a comprehensive plan put together from leadership in both chambers to fully fix Michigan’s deteriorating roads.

In the Senate, no official plan has been introduced but they will be meeting to discuss a strategy on how to move forward with road funding. Leaders in the Senate did agree that Proposal 1 seemed too complex and that voters sent a clear signal that they want a legislative fix instead.

There seems to be a difference between the House and Senate over the approach to road funding. Senate Majority Leader Arlan Meekhof (R-West Olive) indicated this week that he did not think the Senate would put forth a specific plan anytime soon as there needs to be a more deliberative approach to get it right this time.

posted by PAA Online , Friday, May 8, 2015 11:28 AM
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Senate Passes Omnibus Budget Bill and Sends it to the House

This week the Senate took a major step in completing this year’s budget by placing all the departmental budgets into an omnibus bill, Senate Bill 133, and passing it out of its chamber.

Within the budget there were a lot of placeholders inserted for various initiatives that need to be negotiated and worked out between both chambers. For example, there was a placeholder for a sexual assault prevention and education initiative; a statewide e-file system; blight removal in the city of Springfield; the Dort Highway Expansion; prisoner reentry legal services; and the first responder presumed coverage fund.

Rolling all the individual budgets into one omnibus is nothing new for the House, but in the Senate, this is a new concept. The Senate has a long time practice of voting on individual budget bills for most departments and major budget areas. Although there is one big budget, each individual conference committee will continue to meet to work out their differences and decide on the placeholders that have been inserted into the budget.

On the education front, the Senate also passed Senate Bill 134 the omnibus education budget that included roughly $15 billion in funding for higher education, community colleges, K-12 education and the Department of Education.

As the Legislature moves forward and the House and Senate meet for conference committees on these budgets, we can expect more changes as they try to complete the budget before members leave for summer break.

posted by PAA Online , 11:27 AM
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Senate Committee Moves Boxing and Charitable Gaming Bills

Two bills regulating professional boxing, professional or amateur mixed martial arts (MMA), as well as a bill regulating charitable gaming passed out of the Senate Regulatory Reform Committee this week.

Senate Bill 152 changes the duties and responsibilities of the Michigan Unarmed Combat Commission including giving them a partnership with the Department of Licensing and Regulatory Affairs to have jurisdiction and regulatory control over all boxing or MMA contests.

Some of the more significant changes include ensuring a contestant has been drug tested and having an on-site inspector. The legislation also revises and establishes new regulations concerning the conduct of the events, as well as revises fee amounts for licenses to have such events.

The Committee also passed unanimously a charitable gaming bill that caused a great deal of controversy last session. Senate Bill 187, a re-introduction of legislation by Senator Rick Jones (R-Grand Ledge) would add Article 2 to the Bingo Act to regulate the conduct of millionaire parties and provide for the licensure of suppliers to millionaire party licensees.

The legislation would also establish requirements for the presence and participation of members of the charitable organization at a millionaire party. Further the legislation would limit the amount that licensees could use to pay expenses to 45 percent of the gross profit from an event, as well as require a millionaire party licensee to maintain an event record and file a financial statement.

A more significant part of the bill which created contention last session is rescinds any rules promulgated by the executive director of the Michigan Gaming Control Board before the bill's effective date, and further mandates the executive director would have to promulgate rules to implement the new section added by the bill to the Bingo Act.

Both bills passed without issue from Committee and now heads to the full Senate for review.

posted by PAA Online , 11:24 AM
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Prevailing Wage Gets Hearing in the Senate

Next week the Senate has agreed to begin hearings on legislation to repeal Michigan’s prevailing wage law.

Although the Senate is moving forward with hearings, Governor Snyder has been outspoken in his opposition to repealing the law. Michigan’s current law covers construction workers employed on state financed or sponsored construction projects. The prevailing wage law gives the Department of Licensing and Regulatory Affairs authority to set wage and fringe benefit rates to be paid to construction workers on those projects.

Senate Bills 1, 2, and 3 are currently in the Senate committee on Michigan Competitiveness chaired by Sen. Mike Shirkey (R-Clarklake), who in the past has indicated his support for this type of legislation. The other members of the Committee, minus the one Democrat, are either sponsors or co-sponsors to this package so there is little committee anticipated opposition to this bill as hearings get underway next week.

Democrats in the Senate have already voiced their opposition to the bills stating that repealing this law will lower wages of Michigan workers and hurt Michigan families. The other side of the argument, however, disagrees and believes that prevailing wage laws cost taxpayers hundreds of millions of dollars each year.

Whatever the final outcome, prevailing wage laws have been a target in recent years across the country and have resulted in a national shift in how wages are paid for certain public projects.

posted by PAA Online , 11:24 AM
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PAAdvisory Briefs

Governor Ends Presidential Speculation

Governor Rick Snyder formally put an end to the Presidential speculation this week by announcing he will not run for President of the United States. The Governor in a statement said "I do not have plans to run for president in 2016. I will focus my attention on continuing Michigan's reinvention." He has indicated, however, he will continue traveling the country touting Michigan’s story of economic recovery and job creation.

Medicaid Director, Stephen Fitton Retiring

Stephen Fitton, head of the Medical Services Administration of the Department of Health and Human Services has announced he will retire at the end of June. During his time at the Department he was focused on efficient delivery of services to citizens and innovation. A spokesperson for the Department has stated that no replacement has been named at this time.

Republican Presidential Hopefuls Make Michigan Stop

Early this week Michigan was a hot spot for Republican hopefuls for the 2016 presidential nomination, with appearances from Wisconsin Governor Scott Walker, U.S. Senator Rand Paul of Kentucky, and neurosurgeon Ben Carson of Maryland. Mr. Carson announced his candidacy in Detroit, while Mr. Paul spoke to supporters in Kent County and Mr. Walker, who has not officially declared his presidential run, spoke to supporters in Lansing. As the Presidential campaign heats up Michigan, a key swing state, will see a lot of candidates traveling the state for votes.

Michigan Hosts Virtual Career Fair

Michigan’s newly created Talent Investment Agency announced this week that Michigan is hosting a virtual career fair on May 13 from 10 a.m. to 4 p.m. for job seekers and Michigan employers to connect in an online, virtual environment. There's no cost for job seekers to participate. Registration information can be found at www.mitalent.org/virtualcareerfair.

posted by PAA Online , 11:23 AM
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