Prevailing Wage May Be Left Up to Voters

It looks like the movement to end Michigan’s prevailing wage law that requires wages for state funded construction projects to be equal to union scale wages may be a voter initiated act.

If this happens, Governor Snyder’s opposition to repeal would be irrelevant because legislative approval of the petition, under the Constitution, would enact the proposal.

The Associated Builders and Contractors of Michigan filed petition language this week with the Secretary of State that would repeal prevailing wage. In order for voters to have a chance to repeal this law, 252,523 signatures (8 percent of the total vote for Governor in 2014) are needed to bring this matter before the Legislature. Both the House and Senate would then have 40 days to pass it. If not passed within that time-frame, then the measure would go on the November 2016 ballot.

Last week, the Senate passed a three-bill package, SB 1, SB 2, and SB 3, repealing prevailing wage amid some controversy between members. Democrats in the Senate 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, thinking that prevailing wage laws cost taxpayers hundreds of millions of dollars each year.

Supporters of the legislative package suggest that without the repeal, Michigan is at a competitive disadvantage as only a few states have a prevailing wage, and those without it, tend to attract a more skilled and competitive workforce.

Either way, the bill package now heads to the House of Representatives where it will be reviewed in committee prior to all 110 members having the opportunity to vote on this package. Although the House Republicans have stated prevailing wage is a priority there is currently no timetable for action.

posted by PAA Online , Friday, May 22, 2015 12:37 PM
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House of Representatives Approves Fee Bills

Much needed legislation increasing various fees in order to balance the 2015-16 budgets cleared the House this week. Below is a list of the significant fee increases the House passed.

HB 4444, passing 57-52, changes fees for a variety of health centers, and also extends the current requirement that they be inspected annually to every three years.

HB 4391 passed 61-48, and greatly increases fees for pesticides and fertilizers. The Department of Agriculture and Rural Development would also be required to review any impediments to farms being verified under the Michigan Agriculture Environmental Assurance Program, which is funded by the fees.

HB 4451 increases commercial feed license fees to $100 from $25 and the inspection fee to 30 cents per ton from the current 13 cents. The changes would raise $916,650, up from $395,250 from the current fees.

HB 4449 increase fees for air emissions and certain categories of facilities. For example, category 1 facilities, those that emit 100 tons or more of pollution, would see fees increased from $4,485 to $5,250, plus they would pay air emissions charges.

Electric generators would pay higher fees. Currently generators that emit up 5,000 tons a year pay $37,000. The new fee would be $41,830.

Those that emit up to 12,000 tons would see their basic fee go from $127,000 to $5,250 but they would pay higher air emission fees per ton discharged.

posted by PAA Online , 12:36 PM
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Parole and Probation Changes Proposed by Governor

This week, Governor Rick Snyder presented his Criminal Justice Special Message, citing the importance of addressing root causes of criminal behavior and preparing prisoners for reentry into their communities.

In his message the Governor reiterated his belief that we can create a safer, stronger Michigan if when offenders return to their communities, they have a job and become productive members of society, instead of turning back to a life of crime.

In his message the Governor called for a series of changes that effectuates his ideology regarding how the state handles those convicted of crimes.

The Governor’s message on criminal justice contained several major requests of the Legislature, including bills to parole inmates from prison once they reach their earliest release date if the Department of Corrections determines they have a high likelihood of succeeding outside of prison. The Governor also suggested setting a 30-day cap on incarceration for the most common types of probation violations.

Currently, the State of Michigan spends $250 million annually to incarcerate probation violators, and counties spend $57 million annually to jail probation violators.

The Governor also suggested there may be cost savings in changing how Michigan deals with treating elderly inmates and those with severe illnesses serving life sentences given the high cost of medical care. Although the Governor is opposed to early release for these criminals, he suggested working with the legislature to find a viable solution.

Law enforcement, including Michigan’s Attorney General had a mixed reaction to the message because their focus has been on incarceration and victims in the past.

Certain bills from legislators in both chambers have already been introduced and may help move forward the Governor’s criminal justice reform agenda.

Some of the reforms that would require legislative approval include:

Protecting crime victims by funding free service of Personal Protection Orders by law enforcement and successfully collecting restitution from offenders.

Cultivating the best possible police force by expanding diversity through recruitment, establishing a Michigan State Police Cadet Program and connecting law enforcement officers with community partnerships.

Calling on the Legislature to review funding for training prosecutors and public defenders, as well as helping exonerees find their footing again.

Providing wraparound services to help ex-offenders, including the possibility of placing a parole officer at a workplace if a sufficient number of ex-offenders are employed there.

Having the Department of Health and Human Services require quality metrics to measure outcomes from juvenile justice providers.

Asking the Legislature to make diversion programming the default placement for juveniles, based on needs and risk assessments.

Pairing MSP with the Department of Technology, Management and Budget to create a joint forensic team that will detect and investigate cybercrimes.

Reviewing with the intent to sign bills passed by the Legislature that expand the use of the Holmes Youthful Trainee Act, which allows younger offenders to successfully complete probation or incarceration in exchange for not having the offense appear on their permanent record.

Encouraging counties to reconsider pretrial detention practices, saving taxpayers money on jail costs and protecting offenders from potentially losing a job.

Examining the possibility of placing terminally ill and elderly prisoners in settings that could be more cost effective.

Ensuring MDOC’s compliance with the Prison Rape Elimination Act.

posted by PAA Online , 12:35 PM
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Out of State CON Study Suggests Michigan Could Limit Healthcare for Indigent Persons

A scholarly paper released this week by George Mason University suggested that Michigan's certificate of need process could limit health access for lower-income persons by restricting the number of hospital beds available in the state.

Representatives for the Department of Health and Human Services were not convinced suggesting Michigan’s health care system can meet their needs and our hospitals are not running at their maximum capacity.

The paper issued this week is largely based on looking at CON requirements overall and comparing the number of patient days hospitals used for Medicaid patients as well as the amount of uncompensated care provided the indigent.

When looking at these factors, George Mason University concluded that CON may make it more difficult for lower-income individuals to get health care because the laws can limit the number of hospital beds.

The paper also argued that CON does not control health care costs.

The Department of Health and Human Services disagreed citing a recent study conducted by the Center for Healthcare Research and Transformation at the University of Michigan that found the state had adequate capacity to treat low-income individuals.

In terms of the effect CON may have on health care costs, another recent study by CHRT showed that of three states - Michigan, Indiana and Wisconsin - Michigan, with the broadest CON requirements, had the lowest overall healthcare costs per capita.

There has been recent talk of the Legislature revisiting this issue, however, nothing specific has come up.

posted by PAA Online , 12:34 PM
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Bill Exploring Energy Transmission Connecting Peninsulas Taken Up in House

This week, the House Energy Policy Committee took testimony on a bill that would create a seven-member board to consider a project that would create transmission lines connecting the Upper and Lower Peninsulas so Michigan’s Upper Peninsula would not have to rely on out-of-state providers.

House Bill 4575 introduced by Representative Triston Cole (R-Mancelona) would create a seven-member Michigan Electric Infrastructure Board within the Department of Licensing and Regulatory Affairs. Their task would be to ensure adequate resources be able to reach Michigan electric consumers through the construction of transmission infrastructure that will reduce congestion and energy prices, provide for additional transmission capacity, ensure reliable and efficient operation of the integrated electrical transmission system, and support the state's energy policy goals.

posted by PAA Online , 12:34 PM
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PAAdvisory Briefs

Film Office Releases Strategic Plan

Michigan’s Film Office released this week its 2015 Strategic Plan, which among other things, creates a positive perception of Michigan, calls for a strengthening of partnerships with the private sector and building collaborations with the educational community. These goals are just part of the conclusions spelled out in Michigan Film Office Strategic Plan released Wednesday at the end of a three-month survey of policymakers, industry partners and film and creative industry stakeholders at the state and national level.

Smith Staff Reassigned To Ananich

Senator Virgil Smith’s Lansing staff was re-assigned this week per the request of Senate Minority Leader Jim Ananich. Senator Smith (D-Detroit) has not been to session since he was charged with three felonies and one misdemeanor last week that came after a weekend altercation with his ex-wife.

Report: 37 Percent of State's Rural Roads in Poor Condition

A report issued this week suggests that Michigan has the highest percentage of its roads in rural areas in poor condition. The report from TRIP, a nonprofit institute suggested the percentage of Michigan rural roads in poor condition at 37 percent. It also said 13 percent of Michigan bridges in rural areas were structurally deficient, 14th worst in the country.

Michigan Jobless Rate Matches U.S. Rate in April

Michigan's seasonally adjusted unemployment rate fell by 0.2 percentage point in April to 5.4 percent and in doing so matched the U.S. unemployment rate for the month. It was the first time in nearly 15 years, since September 2000, that the U.S. and Michigan unemployment rates matched. In that month, with the U.S. still experiencing its biggest economic boom since World War II, both the state and U.S. unemployment rate stood at 3.9 percent. The jobless rate declined because the state saw more people working (3,000 more people employed, with the state adding 88,000 jobs since April 2014), but also because the total labor force fell by 6,000 (to a total of 4.74 million, down 10,000 people from April 2014). In fact, the Department of Technology, Management and Budget, which released the figures, said the state has seen no growth in its total labor force since April 2014.

posted by PAA Online , 12:33 PM
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