Proposed Budgets Pass Conference Committee

The Department of Technology, Management and Budget’s (DTMB) spending plan for the fiscal year 2015-16 passed Tuesday with $500,000 allocated to studying what per pupil resources are necessary to ensure all students meet proficient levels in the required curriculum laid out by the state. The allocated money will allow for a vendor to conduct the survey. The budget for the DTMB, laid out in Senate Bill 122, will see smaller increases than called for by the Governor for special maintenance at facilities throughout the state.

The budget for the Michigan Economic Development Corporation would include a cut of 10.8 percent for the state’s business attraction programs, while giving a 13.8 percent increase to the Department of Talent and Economic Development for the Pure Michigan Program under Senate Bill 122. The bill also includes continued funding for revenue sharing, reaching $248.84 million.

On the education front, most public universities in the state would see an increase of between 1 and 2 percent, with four universities receiving more than a 2 percent increase. Under House Bill 4113, $6 million previously used for a program providing financial aid to adult part-time students attending Community Colleges would be used for operations in the School Aid Fund.

The budget for the Department of Natural Resources drew some controversy over $825,000 being appropriated to a special grant programs. Members of the conference committee were unsure of the purpose of the new funding in House Bill 4091.

The Judiciary conference committee passed House Bill 4105, which would decrease funding for the swift and sure sanctions program by $1.8 million, down from $2.5 million proposed by Governor Snyder.

The Department of Education budget saw increased federal funding for the Child Care Development Fund, raising the exit threshold for determining child development from 121 to 250 percent of the federal poverty level. The Corrections conference committee also funded the Goodwill Flip the Script program with $2 million, totaling a $1.96 billion dollar budget for the Department of Corrections.

The conference committee approved the Department of Licensing and Regulatory Affairs budget, totaling $407.65 million, without the 50 percent increase in annual fees, as proposed by House Bill 4106. The Department of Environmental Quality saw a decrease of 6.2 percent decrease from the current fiscal year in House Bill 4093, as passed by the conference committee.

The Health portion of the Department of Health & Human Services budget will see an 8.4 percent increase, raising the total up to $19.562 billion, under Senate Bill 118. The budget includes $635 million in federal funds for the 2014-15 fiscal year to address the unexpected enrollment in the Healthy Michigan program. The conference committee also passed Senate Bill 115, granting the Agriculture & Rural Development budget $86.5 million, a 3 percent decrease form the current fiscal year.

Other budgets taken up by conference committees included the Attorney General’s, which has a 1.8 percent cut from the current fiscal year, down to $92.1 million. The budget for the Department of Civil Rights would receive a 3.1 percent cut, down to $16.1 million. The Executive Office would receive a 6.5 percent cut due to the transition of the Office of New Americans to the Department of Licensing and Regulatory Affairs, bringing funding down to $5.53 million. Due to increased costs for legislative staff, the Legislature would see a 3.4 percent increase, bringing the total to $136.5 million. The budget for the Office of the Auditor General would increase by 3.1 percent, to $2.84 million, due to increases in staff costs. The Department of State would see little change with a budget of $225.26 million. A 0.6 percent increase would be seen by the Department of Treasury, raising the department’s total budget to $1.945 billion.

posted by PAA Online , Friday, May 29, 2015 10:57 AM
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Detroit Public School Plans Continue

On Wednesday, Mayor Mike Duggan said that the right plan for the Detroit Public School System is a compromise between the plans proposed by Governor Rick Snyder and the Coalition for the Future of Detroit Schoolchildren. Mr. Duggan stated that he predicted the financial situation of the district when the first emergency manager appointed by former Governor Jennifer Granholm, Robert Bobb, announced his plan to lay off district employees and close schools.

The estimate created by Mr. Bobb stated that the district’s budget would be in a surplus by 2010; however, this estimate assumed that enrollment in the district would not drop, which according to Mayor Duggan was to be expected with the cuts made. Through attempts to refinance the district and the accumulated debt, the district was left spending $161 million on debt payments and $268 million on payroll.

The Mayor agreed with Governor Snyder that removing the debt from the school operations through the creation of a new district was the responsible way to handle the issue at hand. He did disagree with the Governor’s idea that appointing a school board, stating that this would continue the enrollment losses throughout the district and lead to continued destabilization.

The Mayor continued saying that the concentration of high schools in the downtown region of Detroit was detrimental to the education system, as few schools covered the east and west thirds of the city. He argued that the transportation function that the Detroit Education Commission proposed was incredibly important, as nearly 30 percent of the families in the Detroit school district do not own cars.

While on Mackinac Island, the Coalition for the Future of Detroit Schoolchildren pushed those in attendance to urge their legislators to take action on a plan to help not only Detroit Public Schools, but also schools throughout the state. Tonya Allen, co-chair of the coalition, said that the state could not afford to let the Detroit Public School system dissolve.

posted by PAA Online , 10:56 AM
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Agriculture Fee Bills Stir Debate

Department of Agriculture and Rural Development (DARD) Director Jamie Clover Adams told the Senate Appropriations Committee that the approval of three bills related to regulatory fees, for DARD, was in the best interest of public health. Among the bills being discussed House Bill 4470 was the most divisive. This bill would increase the fee for a Free Sale Letter by more than doubling, raising the price to $60 from its current $25. The bill would increase many food establishment license fees.

Ms. Clover Adams detailed the issues currently being faced by her department, stating that they have come to a point where the fee revenue is not great enough to conduct food inspections and assist businesses in complying with the laws surrounding the handling of food. House Bill 4470 eventually passed the committee by an 11-2 margin, with Senator Hansen (R-Hart), Senator Young II (D-Detroit), Senator Gregory (D-Southfield), and Senator Hopgood (D-Taylor) abstaining from the vote.

The committee reported House Bill 4391, a bill to modify fees related to pesticide regulation, fertilizer regulation, and groundwater and freshwater protection, on a 12-0 vote with all Democratic members of the committee abstaining, and House Bill 4451 was also reported on a 12-0 vote with all Democrats abstaining. This bill would amend the Michigan Commercial Feed Law and increase the license fee for manufacturers and distributers of commercial feed by four times, raising the cost of the fee to $100.

posted by PAA Online , 10:56 AM
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Snyder, Rowe Push Skilled Trades

The former host of Dirty Jobs, Mike Rowe, spoke on Mackinac Island saying that the gap in skilled labor is the result of a successful public relations campaign staged by higher education, and said that skilled trades have to actively combat this campaign. Governor Rick Snyder agreed with Mr. Rowe saying that the development of skilled trade talent in the state should be a top priority issue.

Although he did not want the primary focus to be on money, Mr. Rowe touched on the fact that there is money to be made in skilled labor jobs. He shared that out of the 409 jobs that were covered on his show Dirty Jobs, around 40 of the people profiled were multi-millionaires. He also acknowledged that the politics of the skilled trade issue faces a barrier that will have to be knocked down in order for skilled labor to become reinvigorated.

The Governor announced a series of new videos on skilled jobs with the help of Mr. Rowe and business leaders from throughout the state. The six new videos were created with the intention of dispelling myths about the skilled trades and show workers in the welding, advanced manufacturing, construction, information technology, health care, and tool and die industries. Governor Snyder said that in order to continue our growth, we must develop the talent pool that is present in the state.

One such effort is an employer grant program, which provides funds to train people to fill vacancies as well as train current workers. The Dean of Workforce Development at Grand Rapids Community College, Bill Pink, stated that the school moved to a hands on apprenticeship model, allowing students to have time both in a classroom and in the workforce.

posted by PAA Online , 10:55 AM
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PAAdvisory Briefs

Duggan, In Strongest Words to Date, Rules Out 2018 Governor Run

During a question and answer session at the Detroit Regional Chamber Mackinac Policy Conference, Detroit Mayor Mike Duggan put to rest the rumors about his candidacy for governor in 2018 with an emphatic “No”. Many people have speculated about his candidacy due to his substantial support during his first term as Mayor both in the city and surrounding suburbs.

Smith Silently Returns To Senate

Senator Virgil Smith returned to the Floor of the Senate on Tuesday, but was silent when confronted about his arrest two weeks ago. The offices of neither Senate Minority Leader Jim Ananich (D-Flint) nor Senate Majority Leader Arlan Meekhof (R-West Olive) commented on Smith’s return.

Canvassers Approve Prevailing Wage Petition

On Tuesday, the Board of State Canvassers approved the form of the petition language for a proposed voter-initiated act to repeal the prevailing wage law. The petition is essentially a copy of Senate Bills 1, 2, and 3. The final vote was 3-0 with one member, Jeannette Bradshaw, abstaining from the vote. The backers of the initiative are expected to start collecting signatures in the coming weeks.

Group Urges Lawmakers to Keep EITC

The Michigan League for Public Policy voiced their disapproval of the House Republicans’ plan to eliminate the Earned Income Tax Credit in order to help fund roads. The League stated that 61 percent of people who claim the credit do so only temporarily, due to job disruption or other events. House Bill 4609, which would eliminate the credit, is scheduled be heard before the House Roads and Economic Development Committee next Tuesday.

posted by PAA Online , 10:55 AM
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