Governor’s Budget Proposal

Governor Rick Snyder was met with criticism and controversy as he presented his budget proposal on Wednesday. As expected, Flint remained dominant in concern with $195 million allocated to address the water crisis (see related story). Another $165 million was proposed for a new infrastructure fund. Overall, the budget is at $54.89 billion with $10.03 billion stemming from the General Fund.

Higher education will see a 4.3 percent boost overall and community colleges a 2.9 percent boost amounting to about $7.5 million. The increase for community colleges was seen as “reasonable” where legislators were overall pleased with higher education increases. In addition to the 4.3 boost, Governor Snyder also placed a 4.8 percent tuition restraint on universities, which some feel is too high. In total, the state’s universities would receive $1.599 billion under the Governor’s recommendation. The MSU AgBioResearch and Extension program will see a 2.3 percent increase, bringing total funding to $61.9 million. The Michigan Public School Employees Retirement System will see an additional $730,000, bringing total funding to $5.9 million. Student financial aid is set at $107.5 million with an additional $2 million going toward reimbursement costs for the Tuition Incentive Program. Finally, the budget includes $145 million from the General Fund to support debt for recently constructed university buildings.

For each university, this increase breaks down to: 5.2 percent for Central Michigan University; 4.6 percent for Eastern Michigan University; 5.6 percent for Ferris State University; 6.8 percent for Grand Valley State University; 4.1 percent for Lake Superior State University; 3.9 percent for Michigan State University; 4.3 percent for Michigan Technological University; 3.9 percent for Northern Michigan University; 6.1 percent for Oakland University; 5 percent for Saginaw Valley State University; 4.2 percent for the University of Michigan-Ann Arbor; 4.8 percent for U-M Dearborn; 5.1 percent for U-M Flint; 3.5 percent for Wayne State University; and 4.2 percent for Western Michigan University.

The cities, villages and townships will see a 3.9 percent boost in constitutional revenue sharing, but a 2.3 percent reduction to statutory revenue sharing.

Detroit Public Schools will see a total of $720 million over ten years to cover outstanding debt and startup funds for dividing the district while Flint receives $8.05 million for expanded child care assistance. The budget also provides $1.7 million to implement the Lieutenant Governor Brian Calley’s Special Education Reform Task Force. Overall, there is a $300 million increase in the School Aid Fund, including allowance increases of $120 per student for the lowest spending districts and $60 for the higher spending districts. The minimum foundation allowance increases to $7,511 with basic allowance increasing to $8,229. The overall budget represents a 2 percent increase from the current year.

Local tax revenue is being reallocated to pay off DPS debt and to combat lost revenue; Governor Snyder called for shifting tobacco settlement funds to the district. Governor Snyder also proposed a supplemental appropriation to cover $50 million of the district’s operating funds for the current fiscal year.

Early literacy improvement has also seen $243.9 million for preschool programs and $23.9 million for direct literacy programs. $1.4 million is designated for a pilot of the Integrated Behavior and Learning Support Initiative. The budget also provides a $5 million increase to $15 million for career and technical education programs. $2.5 million would be given to science, technology, engineering, and mathematics programs, including the First Robotics program.

posted by PAA Online , Friday, February 12, 2016 12:12 PM
LINK DIRECTLY TO THIS ARTICLE

Flint Water Update

Governor Rick Snyder in his budget presentation allocated a $195 million overall investment for Flint as it continues to face water issues. The $195 million includes about $14.1 million in federal funding. In a proposed supplemental, the Governor gives the Department of Education $17.6 million to address childcare and nutrition needs in the city with an additional $8 in federal child care development funds.

The Department of Environmental Quality receives $63.35 million in General Fund with up to $3.9 million for the Great Lakes Water Authority to pay service costs from July-September. $30 million will be given to the city of Flint to provide water bill relief for residential customers and up to $25 million will be allocated for replacement of lead service lines for high risk, high hazard homes. This $25 million will serve as a start to pipe replacement. $2.19 million will go to the Department of Health and Human Services to support food bank resources, evidence-based home visiting programs, and intensive services and outreach for children. $6.1 million in federal Temporary Assistance for Needy Family’s will be allocated as well.

The Department of Natural Resources would get $250,000 to support a limited summer youth employment program and the Department of Technology, Management, and Budget would get $50 million General Fund for deposit into a Flint Emergency Reserve Fund. Finally, a School Aid Fund supplemental provides $9.2 million General Fund for the assessment of children under age 4 for symptoms of lead exposure and an expansion of Early On services for any child in need.

Flint Mayor Karen Weaver outlined a plan for an estimated $55 million in public works project to replace the lead service lines. The Lansing Board of Water and Light and public works staff have already removed 13,500 lead pipes in Lansing over the last 12 years for $42 million, and Weaver is hoping the same could be done in Flint. The state has also created 10 “Sentinel Site” teams to inform citizens on testing their water. The teams consist of representatives from the DEQ alongside licensed plumbers.

As news has been released that the state was aware of an outbreak of Legionnaire’s disease months before the crisis, the blame has been shifting between the Genesee County Health Department and the state’s Department of Health and Human Services for not informing the public sooner. The DHHS has shouldered much of the criticism, but released emails between the DHHS and GCHD showing a lack of communication and frustration from department epidemiologists in the county’s slow action. The county and state’s lack of an announcement to the public regarding the outbreak is also of concern.

Lastly, another lawsuit has been filed against the Governor seeking damages due to the Flint crisis. There are four other lawsuits currently moving at both federal and state courts.

posted by PAA Online , 12:11 PM
LINK DIRECTLY TO THIS ARTICLE

DPS Committee Hearing

Local citizens were given the opportunity to speak out regarding legislation dealing with the reform of Detroit Public Schools pending before the Senate Government Operations Committee. With several speaking, the underlying emphasis was to keep local control and a need for fast action.

Treasurer Nick Khouri told the committee that despite DPS cutting expenditures in half over the past ten years and closing over 150 schools, the district is still struggling to keep up with fewer student enrollments and therefore fewer revenues collected for operations. DPS is spending relatively the same amounts in both debt obligations and teacher and faculty salaries and benefits every month. Meaning, money intended for educational purposes is going towards debt. By eliminating the debt about $1,100 would be received per pupil instead, according to Mr. Khouri.

Opposing the bills (SB 710 and SB 711) were David Hecker with the American Federation of Teachers-Michigan and Ivy Bailey with the Detroit Federation of Teachers. Both Hecker and Bailey focused on why local control is critical to the success of the district, a point both Senate Minority Leader Jim Ananich (D-Flint) and Senate Minority Floor Leader Morris Hood III (D-Detroit) agreed with.

The State Board of Education asked the Legislature for the Department of Education to receive the authority of overseeing siting of all schools in the state. The request was adopted on a party-line vote of 5-2 with board member Lupe Ramos-Montigny (D-Grand Rapids) abstaining. An original DPS resolution had called for inclusion of the Detroit Education commission in SB 710, which drew much opposition from board members who continued to emphasize local control.

posted by PAA Online , 12:11 PM
LINK DIRECTLY TO THIS ARTICLE

PAAdvisory Briefs

Senator Smith Pleads Guilty

Senator Virgil Smith pleads guilty to a felony charge of malicious destruction of property as part of a plea bargain from the Wayne County Prosecutor’s Office following an altercation Senator Smith had involving his ex-wife last May where Mr. Smith allegedly shot up her vehicle. Senator Smith would resign from the Senate as part of the plea bargain agreement. Wayne Circuit Judge Lawrence Talon has not agreed to the deal, instead has scheduled a hearing on March 14 to determine if the agreement is tough enough.

Schueller New Acuitas Legislative Director

Acuitas hired Matthew Schueller as its new legislative director on Wednesday. Mr. Schueller was previously a senior policy advisor in the House Republican Policy Office and a private practice attorney. He has degrees from Seton Hall University School of Law and the University of Michigan.

Schuette Settles for $470 Million

Attorney General Bill Schuette settled with mortgage lender and servicer HSBC to receive a $470 million joint state-federal settlement for mortgage-related abuses. Michigan borrowers are expected to receive more than $3.5 million. The money will provide payments to aid in past foreclosure abuses, loan modifications and other relief for borrowers. Eligible borrowers will be contacted directly.

Recall Petition Approved

The Board of State Canvassers on Monday approved one of ten petitions to recall Governor Rick Snyder marking the first petition to clear the canvassers after rejected attempts. The petition was filed against Snyder not for his involvement in Flint, rather because he created the State School/Redesign Office within the Department of Management, Technology, and Budget. Recall supporters have a 60-day window to collect 789,133 signatures. The petition is valid for 180 days.

TED Receive Funding for Skilled Trades

The Department of Talent and Economic Development would receive $1.1 billion in total ongoing funding under the Governor’s budget proposal, with a $10 million to the Skilled Trades Training program. This brings the total investment to $35.6 million.

posted by PAA Online , 12:10 PM
LINK DIRECTLY TO THIS ARTICLE

This Week's Newsletter

Past Newsletters