Gubernatorial Bid Rumored for Senate Majority Leader

Senate Majority Leader Arlan Meekhof (R-West Olive) is the latest Republican to be rumored as a candidate in the gubernatorial primary election. Mr. Meekhof will be unable to seek reelection in 2018 due to term limits and his spokesperson Amber McCann did not deny that a run for Governor was in the cards, stating that Mr. Meekhof is unsure of what his plans are for 2018.

While it is still very early in the process, the Republican primary could shape up to be one crowded with statewide officials, as Lt. Governor Brian Calley, Attorney General Bill Schuette, and U.S. Representative Candice Miller (R-Harrison Township), are also possible candidates. Mr. Meekhof would be the only potential candidate to hail from western Michigan, a powerful Republican voting block; however, he would face an uphill battle against a statewide office holder due to name recognition.

Both Mr. Schuette and Ms. Miller would also have a vast upper hand in fundraising, as their statewide networks would allow them to reach wealthy donors from throughout Michigan. Senate Majority Leader Meekhof’s lack of a political presence in the suburbs of Detroit could also pose a potential problem, due to the large Republican presence in the area.

Since taking charge as the leader of the Senate Republicans, Mr. Meekhof has received positive reviews from those in Lansing; however his tendency to vote conservatively could hurt his ability to pull independent voters in a general election. Conversely, his role in ushering a 15-cent gas tax increase through the Senate has hurt him with some ultra-conservative Republicans.

posted by PAA Online , Friday, July 24, 2015 10:58 AM
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Wayne County in Financial Emergency, According to State Review Team

According to a report authored by a state review team, Michigan’s largest county is facing a financial emergency. Governor Rick Snyder is the lone official who has the power to officially declare a state of emergency in the county, and in compliance with state law he must make his determination within 10 days of receiving the review team’s report.

Although the Governor has the ability to appoint an emergency manager to oversee the operations of the county in an attempt to fix the $52 million structural deficit, it seems more likely that a consent agreement will be made between the state and the county. The review, which was requested by Wayne County Executive Warren Evans, issued their final report on the County’s financial situation less than three weeks after coming into existence.

The report shows that Wayne County’s last four fiscal years have had large discrepancies between revenue and expenditures with vastly underestimated expenses. The largest underestimate came in the form of a $23.7 million shortfall while the smallest gap between estimated and realized expenditures was $16.7 million.

While healthcare makes up the largest percentage of long-term debt for the county, at a whopping 40 percent, the most visible show of the financial distress in the county comes in the partially erected jail; which saw its construction halted due to large amounts of over-spending on the project. Although the County is in a financial emergency, Mr. Evans stated that bankruptcy is not a guarantee.

posted by PAA Online , 10:58 AM
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Proposal to Raise Corporate Income Tax for Roads Supported by Labor

A ballot proposal to raise the Corporate Income Tax from 6 percent to 11 percent and dedicate the $900 million raised to roads is being supported by the Citizens for Fair Taxes. The Michigan Laborers, International Union of Operating Engineers, and the Michigan Regional Council of Carpenters and Millwrights are the unions who have joined forces to create the Citizens for Fair Taxes group.

The group believes that they are simply recovering lost revenue, which resulted from Governor Snyder cutting the Michigan Business Tax. Citizens for Fair Taxes has also argued that corporations are frequent users of the state’s infrastructure, meaning they have an obligation to pay into a road solution just as the citizens of the state do. According to the House Fiscal Agency, the combined tax revenue from corporations just eclipsed $100 million, coming in at $137.6 million.

In order for the proposal to become law it must first receive 252,523 signatures from registered voters, as it is a voter-initiated act. Following the gathering of signatures, the legislature has 10 days to act on the proposal. If the legislature chooses not to act, which would most likely be the case, the act will go on the November 2016 ballot. If the act succeeds in the election, the new corporate income tax rate would be effective as of January 1, 2017.

Many in the business community openly oppose the proposed increase, as they state that it would move Michigan back into the not so distant economic slump. The increase would put Michigan as the state with the highest flat corporate income tax, with only Iowa’s graduated tax, which has a maximum rate of 12 percent, beating Michigan out as the state with the highest possible corporate income tax.

Many Republican-based groups such as, Americans for Prosperity-Michigan and the Michigan Republican Party joined business leaders throughout the state including, the Small Business Association of Michigan and the Michigan Chamber of Commerce in their strong opposition to the proposal.

posted by PAA Online , 10:57 AM
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Department of Insurance and Financial Services Director Shines at Hearing

Director of the Department of Insurance and Financial Services, Pat McPharlin, impressed a joint meeting of the Senate Insurance and Banking and Financial Institutions committees. Governor Snyder appointed Mr. McPharlin as director in April following years of experience as the CEO of the Michigan State University Federal Credit Union.

Director McPharlin stressed to the joint committee hearing that he would bring experience from the community banking world to the Department of Insurance and Financial Services, even stating that he expects to run the department as he has run community banks in the past. During his time as the CEO of the Michigan State University Federal Credit Union, the credit union won many community awards and Mr. McPharlin was able to increase the assets of the credit union from $500 million to $3 billion.

Throughout the hearing, Mr. McPharlin responded quickly and intelligently to the questions brought to him by the Senators on topics ranging from the use of personal data in determining insurance rates to the use of different rules for in and out-of-state foreclosures. The Director stated that his first goal is to ensure open lines of communication between all three levels of the industry to his department in an attempt to understand their issues and how they need to be solved.

During his questioning, Mr. McPharlin answered questions regarding the effectiveness of his department such as: the average time spent on examinations, how DIFS could partner with the Legislature on foreclosures, and the average time it takes to resolve a complaint filed with the department. Director McPharlin also stated that he is unsure exactly how he feels about predatory lending.

posted by PAA Online , 10:56 AM
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PAAdvisory Briefs

Presidential Candidate to Speak at Lincoln Day Dinner

Billionaire Donald Trump is scheduled to visit Michigan, for the first time since announcing his bid for the Republican presidential nomination, in August. His appearance will come as the keynote speaker for the combined Genesee and Saginaw County Republican parties’ Lincoln Day dinner on August 11. The event, which will be held in Birch Run, has drawn massive interest, to the point of crashing the websites of the two involved parties.

Jake Davidson to Run for 82^nd House Seat

Jake Davidson, a Republican from Mayfield Township, has officially filed paperwork to run for the 82^nd House District, currently held by Representative Todd Courser (R-Silverwood). While Mr. Courser is considering a run for the 10^th U.S. House District, currently held by U.S. Representative Candice Miller (R-Harrison Township), he has yet to officially announce his plans for 2016. Jan Peabody, of Lapeer, has also expressed interest in running for the 82^nd District, after her narrow loss to Mr. Courser in the 2014 Republican primary.

Wall Street Bond Rating Agency Raises Michigan’s Outlook

Standard and Poor’s, (S&P), a Wall Street Bond Rating Agency has become the second major agency to upgrade Michigan’s outlook on general obligation debt to “positive”. The first firm to upgrade the State’s outlook to “positive” was Moody’s Investors Services, who changed their rating March 2014. While the change is certainly a welcome one it does not affect the state’s rating on their debt, which is an A+ on state appropriations backed debt and an AA- on general obligation debts.

Swartzle New Chief of Staff, Saari Appointed to the Public Service Commission

Governor Rick Snyder has appointed Norm Saari, House Speaker Kevin Cotter’s chief of staff, to the Public Service Commission. The appointment means that Mr. Saari will relinquish his duties as chief of staff to the Speaker with Brock Swartzle taking on the role as new chief. Mr. Saari will be replacing Greg White on the commission and he will serve a six-year term, effective August 2, 2015. Mr. Swartzle, who serves as the general counsel for the House, has experience in leadership as he was the executive director of the House Republican Policy Office and was a partner at his previous law firm.

Congressional Bid Possibility for Winfrey

Former Democratic candidate for secretary of state and current Detroit City Clerk Janice Winfrey has said she is in the process of considering a bid for the 13^th U.S. House District. The district is represented by U.S. Representative John Conyers (D-Detroit) who has held the seat since 1964. Ms. Winfrey stated she expects to make an official decision in the next three weeks; however, if she were to enter the race she would be facing an uphill battle to unseat a political icon such as Representative Conyers.

posted by PAA Online , 10:54 AM
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