Flint Update

Several budgets were presented this week with a number of them allocating money to aid Flint. Chief among them is the Department of Environmental Quality (DEQ).

The DEQ Interim Director Keith Creagh spoke before the House Appropriations Environmental Quality Subcommittee and fielded questions from the Representatives regarding not only the budget, but also administrative changes to alter the culture at the DEQ to prevent miscommunication issues in the future. Mr. Creagh responded that employees are being encouraged to be receptive to minority opinions and said thorough employee training is a key component of departmental culture change.

The DEQ overall budget recommendation is $513.5 million with $47.69 stemming from the General Fund. With regards to Flint, $5.4 million has been allocated for corrosion control and water quality testing. $2.95 million in General Funds will be used to match federal Drinking Water Revolving Fund Loan Program grants and additional funds will ensure the state can capitalize on the full $25 million of federal funds available.

In the School Aid budget, $8.05 million was recommended for expanded childcare services for Flint. $10.1 million was also recommended for early educational programs, nutrition and social services assistance. The Governor also requested a $9.2 million supplemental for the current fiscal year for these services.

The House on Thursday passed SB 0136, giving Flint residents a 65 percent credit on any water bills from April 2014 through April 2016, implementing Governor Rick Snyder’s “Consumption and Consumer Use Credit.” Currently, 29,000 residents are on the water system and 5,000 are in arrears. Governor Snyder also announced Thursday an additional $2 million from the Financially Distressed Cities, Villages and Townships Grant to help with water infrastructure replacement costs. Flint will be equipped to start removing priority lead service lines within the next 30 days.

posted by PAA Online , Friday, February 19, 2016 12:54 PM
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DPS Update

Detroit Public Schools will see a lion’s share of the School Aid budget for fiscal year 2017. DPS will see a total of $720 million to cover its outstanding costs and provide startup money to divide the district.

Governor Rick Snyder’s current plan for the district is to create a new district in Detroit to perform existing operations but leave the debt with the current district. The debt will partially be paid with current local tax revenue, but will see some additional funds to cover lost revenue with tobacco settlement funds. The Governor has recommended $72 million a year in tobacco funds into the School Aid Fund.

House Republicans introduced a package of bills on Thursday to reach a solution for DPS, which was met with some criticism. HB 5382-5387 draws out limits to collective bargaining and avoids a fully-elected school board for eight years in the district. Reforms included altering the grading system to an A-F and third grade reading initiatives. Senate Majority Leader Arlan Meekhof (R-West Olive) has not commented on the House’s plan, but has been supportive of the Senate’s efforts with SB 710 and SB 711.

Currently, there are no similar reforms placed in the Senate plan, something Speaker Kevin Cotter (R-Mount Pleasant) said would be necessary for him to hold a vote. Speaker Cotter commented he has not ruled out bankruptcy as an option for the district.

Senate Majority Floor Leader Mike Kowall (R-White Lake Township) commented the Senate Government Operations Committee is unlikely to see quick movement on the plan in the future, but is hoping to have some progress before Easter break.

posted by PAA Online , 12:54 PM
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Liquor Advertising Bill Passed

The Senate unanimously passed a bill expanding the advertising items liquor licensees may provide to other licensees on Thursday. SB 667 allows a manufacturer, outstate seller or vendor of spirits to provide brand logo merchandise to a retailer to promote its products. The merchandise may be used for display purposes only. Manufacturers, sellers, and vendors can also buy drinks for on-premises retail customers for promotional purposes. Suction cups, cooler door attachments, and tear pad holders are some of the goods and services manufacturers and sellers can provide.

Manufacturers or wholesalers are required to file with the Liquor Control Commission a schedule of net cash prices to the retail licensee for all brands of beer for its market area, in addition to filing a beer package price reduction for its market area. The price reduction could remain in effect for 90 days, or be increased under specific circumstances.

This bill has moved to the House and has been referred to the House Committee on Regulatory Reform.

posted by PAA Online , 12:53 PM
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PAAdvisory Briefs

Chatfield Running for Re-Election

Representative Lee Chatfield (R-Levering) announced Tuesday that he will be running for reelection in his current 107^th State House District seat, officially taking him out of the running for the 1^st U.S. House District. Candidates for the Republican nomination for the Congressional seat now are former Senator Jason Allen of Traverse City and Senator Tom Casperson (R-Escanaba).

Basso Joins Blue Cross

Gabe Basso has joined Blue Cross Blue Shield of Michigan as the manager of state government relations. Mr. Basso previously served as the Department of Insurance and Financial Services legislative liaison and a legislative staffer. Vice President of Government Affairs Mark Cook commented, “Gabe’s knowledge of the political process and insurance policy expertise will be a valuable asset.”

Special Election for 28^th House Seat

Governor Snyder has called for a special election to fill former Representative Derek Miller’s seat in the 28^th House District. The special election is to occur during the regular August primary and November election dates. Former Representative Derek Miller vacated the seat upon his appointment as the Macomb County treasurer. Interested candidates must file for candidacy by Tuesday, April 19^th at 4 p.m.

posted by PAA Online , 12:53 PM
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