House Passes Road Funding Plan

With the legislative quadrant discussions at an impasse, the House decided to take action and passed a $1.2 billion road-funding plan on Wednesday with no guarantees of support from either Senate Majority Leader Arlan Meekhof (R-West Olive) or Governor Rick Snyder. The plan involves $600 million in revenue from a gas tax increase and registration fee increases with $600 million from existing sources. These bills also include an income tax rollback and an expansion of the Homestead Property Tax credit.

Effective 2018, this plan would include a 3.3-cent increase in the overall fuel tax with an additional 4 cents for diesel, bringing it up to the gas tax level effective in 2017. Registration fees would also increase by $400 million total, about $55 additional per vehicle for commercial vehicles and $40 for passenger vehicles.

To offset increases, the amount of the homestead property tax credit available would increase by increasing the income cap to $60,000, with the phase out of the credit starting at $51,000, and increasing the amount of income affected from 3.4 percent to 3.5 percent.

The phase in portion of the plan would generate $400 million for the 2016-17 fiscal year and increase to $1.2 billion for the 2020-21 fiscal year. The General Fund is included in this increase, increasing from $150 million in the 2018-19 fiscal year to $600 million in the final year. The tax credit portion of the plan would start with $40 million in the 2017-18 fiscal year and will increase to $200 million in the 2020-21 fiscal year.

If general fund revenue outpaces inflation, a proposed income tax rollback has also been included. This rollback would begin in 2019. Democrats have criticized this rollback for not including a floor and believe it could strain the General Fund.

The bills passed are include: gasoline tax increase (HB 4614, HB 4616, HB 4738) with a vote of 56-50; vehicle registration fee increases (HB 4736) with a vote of 55-51; competitive bidding bills (HB 4610, HB 4611) and expansion of the Homestead Property Tax Credit (HB 4370) with a vote of 62-44; and concerning warranties (HB 4737) with a vote of 101-5. The income tax rollback passed with a vote of 61-45.

Reaction from businesses was mixed. Business Leaders for Michigan and the Detroit Regional Chamber expressed concerns regarding the use of the General Fund. The Michigan Chamber of Commerce and the National Federation of Independent Business-Michigan supported the package, with the National Federation of Independent Business-Michigan specifically praising the lower reliance on higher taxes and fees than other plans.

The bills now move to the Senate, where Senate Majority Leader Arlan Meekhof (R-West Olive) looks forward to the conversation.

posted by PAA Online , Friday, October 23, 2015 10:50 AM
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Senate Passes Teacher and Administrator Evaluations

The Senate passed a revamped proposal to reframe existing educator evaluations Tuesday by a vote of 35-2, with dissent from Senator Rebekah Warren (D-Ann Arbor) and Senator Coleman Young II (D-Detroit), and Senator Mike Green (R-Mayville) absent for the vote. The House passed the updated version last week, and the legislation currently awaits approval from Governor Rick Snyder.

SB 103 establishes training requirements and options for public school academies and school districts to develop their own teacher evaluation tool or create changes to an existing tool. Funding for these training requirements must come from the Educator Evaluation Reserve Fund. It also requires the Department of Education to keep and maintain a list of teacher and administrator evaluation tools and also include a list of the tools recommended by the Michigan Council on Educator Effectiveness. Districts will not be required to use the same tool for administrators and teachers.

If law, SB 103 will immediately establish for administrators 25 percent of the annual evaluation to be based on student growth and assessment data, the data being an aggregate of student growth data used in teacher evaluations in the district where the administrator works.

Teachers will have, beginning the 2018-19 school year, 40 percent of the year-end evaluation based on student growth, measured half by state assessment and half from a local assessment. SB 103 also allocates $14.8 million for districts to train teachers and administrators on the new evaluation tools.

Many educational interests were receptive to the bill, including the Tri-County Alliance for Public Education and the Michigan Association of Secondary School Principals with the adoption of the H-8 amendment. Other organizations were pleased as well, but are looking to the Department of Education for leadership.

posted by PAA Online , 10:49 AM
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Election Fundraising Update – U.S. House Races

Representative Gretchen Driskell (D-Saline) and Melissa Gilbert, challenging U.S. Representative Tim Walberg (R-Tipton) and U.S. Representative Mike Bishop (R-Rochester), respectively, have touted strong fundraising numbers that leave both parties neck and neck.

Melissa Gilbert has raised $200,372 in the third quarter with $183,317 left in cash on hand against U.S. Representative Mike Bishop. Mr. Bishop was able to outraise Ms. Gilbert, but not by a lot. Mr. Bishop reported $213,962 for the quarter, but with $529,352 in total for the cycle. Mr. Bishop does have, however, $31,872 in debt.

U.S. Representative Walberg slightly outraised Representative Driskell, reporting $133,160 for the quarter with a $77,970 transfer from the Walberg Victory Fund providing $93,844 in total for the cycle. These numbers are included in the $922,034 reported in cash on hand. Representative Driskell, in contrast, reported $200,372 in the third quarter with $183,317 left in cash on hand.

U.S. Representative Fred Upton (R-St. Joseph) is far ahead of Democratic challenger Paul Clements. Mr. Upton has reported $235,000 for the quarter with $1.28 million in total for the cycle. He also reported $829,168 in cash. Paul Clements has, in comparison, only raised $154,808 in total with $135,374 in cash on hand.

The election to succeed U.S. Representative Candice Miller (R-Harrison Township) has reports from Paul Mitchell, Senator Phil Pavlov (R-Saint Clair), and former Senator Alan Sanborn. Currently, Mr. Mitchell leads the fundraising with $328,025 raised in the first quarter with $363,758 cash on hand. Paul Mitchell has contributed $250,000 himself, as part of these funds. Senator Pavlov reported $57,349 for the quarter and $163,729 total for the cycle with $126,153 in cash on hand. Former Senator Sanborn in contrast reported $4,070 for the quarter and $46,337 overall with $25,851 cash on hand.

With U.S. Representative Dan Benishek (R-Crystal Falls) not seeking reelection, Democrat Lon Johnson is leading fundraising efforts against Jerry Cannon with no Republicans so far declaring candidacy. Former Democratic Party Chair Johnson has reported $350,977 all in the latest quarter with $293,265 cash on hand. This far exceeds Jerry Cannon, who has raised only $3,640 with none spent.

U.S. Representative John Conyers Jr. (D-Detroit) is being challenged by Detroit City Clerk Janice Winfrey. Ms. Winfrey reported $18,840 in the third quarter with $7,900 cash on hand. Mr. Conyers equally reported low numbers with $40,588. $42,997 was raised in the third quarter and $193,322 for the cycle.

posted by PAA Online , 10:48 AM
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Debt Rising in Detroit Public Schools

With the state of Detroit Public Schools (DPS) today, it will take the state over ten years and $715 million, plus a new governance structure, to remove public education in Detroit from the debt it has piled up, according to Governor Rick Snyder. In response, the Governor has unveiled a revised plan to his April proposal regarding Detroit Public Schools.

Two key differences in this proposal are a voluntary common enrollment system for charter and traditional public schools, and bigger finance from the Legislature. DPS debt is currently at $515 million, with additionally $100 million for investments and working capital to take over running DPS classrooms, and $100 million to cover operating losses once the 2016-17 fiscal year begins. The total $715 million debt would stay with the old district under Snyder’s plan and the 18-mill tax on all property outside principle district residents would go toward paying the debt. The millage raises $70 million a year. The 18 mills go to the School Aid Fund, which creates a problem because the state would have to make up those funds.

A Detroit Education Commission will also be established to hire a chief education officer. The officer would operate the common enrollment system encompassing DPS schools, charter schools, and the Educational Achievement Authority schools. The chief education officer also has the authority to close any schools due to low performance. A new school board will be initially created by Governor Snyder and the mayor, but eventually be fully elected by voters in 2021. The city’s Financial Review Commission will oversee the district’s finances until the debt is repaid.

The American Federation of Teachers-Michigan felt this plan has too much state control. There were equally mixed feelings among the charter school groups as well.

The proposal is expected to be sent to the Senate K-12, School Aid and Education Appropriations Subcommittee sometime next week. There are mixed opinions from the Legislators, but Chairman Senator Goeff Hansen (R-Hart) looks forward to reviewing the material. The Governor hopes this plan will pass before the end of the year, allowing Detroit Public Schools to see its effect in July.

posted by PAA Online , 10:46 AM
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PAAdvisory Briefs

Hospitals Saving Money and Saving Lives

The Michigan Health and Hospital Association announced an improvement in patient care has not only attributed to saving lives, but has also saved money. An estimated $100 million was saved in 2014 by reducing patient readmissions in over 10,000 cases. From 2010 to 2014, hospitals reduced the number of early elective births by 60 percent, meaning healthier moms and newborns in approximately 2,900 cases. From 2012 to 2014, the use of catheters was reduced by 27 percent, lowering the overall risk of infection.

Oakland Circuit Court Named

Governor Rick Snyder announced Hala Jarbou and Jerry Matis to succeed to the Oakland Circuit Court. Ms. Jarbou is replacing new Court of Appeals Judge Colleen O’Brien. Ms. Jarbou is an assistant U.S. attorney in the Drug Task Force for the U.S. Department of Justice, and will run in 2016 for the full term as judge. Jerry Matis will succeed Judge Rudy Nichols. Mr. Matis is in private practice and is vice chair of the Oakland County Board of Commissioners. Mr. Matis will also run in 2016 for the term that ends in 2020.

Elizabeth Gorz to Join MAC

Elizabeth Gorz, former lobbyist at Capitol Affairs, is joining the Michigan Association of Counties as a governmental affairs associate. Ms. Gorz was previously a staffer for former Senate Majority Leader and current U.S. Representative Mike Bishop (R-Rochester). She has also served as an aide to Senator Tory Rocca (R-Sterling Heights) and former Senator, current U.S. Representative John Moolenaar (R-Midland).

Michigan 14^th Most Energy Efficient

The American Council for an Energy-Efficient Economy announced that Michigan is the 14^th most energy efficient state in the nation. On the scorecard, Michigan received 23.5 of a total 50 points. This is a drop from a previous 12^th place ranking, likely due to not having an energy efficiency standard for state fleets and adopting federal efficiency standards for commercial and residential buildings. The American Council did praise, however, the loan programs for small businesses for energy efficiency and pollution prevention, the energy efficiency standards for state buildings, and energy efficient measures included in PA 295 of 2008.

Candidates for Wayne County Treasurer

With current County Treasurer Raymond Wojtowicz retiring, several candidates have applied for the position. Candidates include: Senator Bert Johnson (D-Highland Park); former Representative Phil Cavanagh of Redford Township; Etta Wilcoxon, a former candidate for Detroit city clerk and mayor; David Szymanski, former chief deputy county treasurer; Richard Hathaway, chief assistant to Prosecutor Kym Worthy; Beverly Kindle-Walker, previous county treasurer candidate; James Williams IV, former Wayne County Commission candidate; and Jerry Paffendorf of Loveland Technologies, a Detroit data firm. A three-person committee has been created for the election. Interviews are currently slated for early November.

posted by PAA Online , 10:45 AM
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