Flint Update

On Wednesday, Governor Rick Snyder announced the opening of the state Disaster and Emergency Contingency Fund to provide assistance to Genessee County and Flint. This allows local governments to apply for grants up to $100,000.

Flint Mayor Karen Weaver is also seeking financial assistance from both national and local private organizations. The city is seeking a federal package that will provide an initial $70 million from the Water Infrastructure and Innovation Fund and gives $100 million from the federal Drinking Water State Revolving Fund. The package has yet to be approved.

A federal racketeering statute has been filed against several state employees. Rackateer Influenced and Corrupt Organization Act (RICO) is known for criminal prosecutions. The RICO claim has been filed against Governor Snyder, several former members of his team, former Flint Mayor Dayne Walling, as well as several other local workers.

The RICO claims the accused intentionally defrauded the plaintiffs named in the lawsuit and allegedly committed mail and wire fraud in the mailing of water bills to residents. Wayne State University law professor Peter Henning commented he believed the claim would be difficult to establish that fraud had occurred. He added the lawsuit is a “scattershot approach” to see what lawsuit keeps.

posted by PAA Online , Friday, April 8, 2016 9:56 AM
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HICA Alternatives in the Works

Legislators are looking into alternatives for Michigan’s Health Insurance Claims Assessment (HICA) to help finance Medicaid programs. Attorney General Bill Schuette and others are preparing to defend the tax before the 6^th U.S. Circuit Court of Appeals.

Previously, the federal circuit court upheld HICA in 2014, but last month the U.S. Supreme Court ruled in a 6-2 decision in Gobeille v. Liberty Mutual Insurance Company that Vermont could not require self-insured companies to provide data on health insurance claims and covered individuals. With this decision, the 2014 Self-Insurance Institute of American v. Snyder ruling was vacated. Oral arguments have not yet been scheduled.

Business and healthcare groups, along with legislators, are discussing a new system to raise the money for a federal match for Medicaid. Senator Ken Horn (R-Frankenmuth), chairman of the Senate workgroup, commented the group is leaning toward a proposal using use tax revenue levied against the state’s Medicaid HMOs. The workgroup is hoping whichever proposal is adopted will allow for HICA to be phased out by 2020.

posted by PAA Online , 9:55 AM
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Election Update

Senate

Former Representative Rashida Tlaib announced she will not be running for Senator Virgil Smith’s seat in the Senate. In a Facebook post, the former Representative cited she believed her position with Sugar Law Center Economic & Social Justice is better suited for her to serve her community.

Former Representative Fred Durhal Jr. announced his campaign for the seat, as we discussed in last week’s PAAdvisory. Other possible candidates include Detroit Democratic Representatives Wendell Byrd and LaTanya Garrett. Representative Paul Clemente (D-Lincoln Park) and Representative Frank Liberati (D-Allen Park) are also possibilities.

Local

Former U.S. Representative Jim Barcia announced his run for Bay County executive, challenging current County Executive Tom Hickner. Mr. Hickner has held his position since 1992. Both candidates have a combined 68 years of experience in Bay County politics.

In his announcement, Mr. Barcia focused in on a more aggressive approach to economic development in the county. Bay County in February tied for 33^rd lowest unemployment rate at 5.6 percent.

posted by PAA Online , 9:55 AM
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PAAdvisory Briefs

Hunting Season Has No Fatalities

The Department of Natural Resources (DNR) announced there were no fatalities in the 2015 hunting season. This is the second season in a row with none. The DNR reported more injuries, however. Thirteen hunting-related injuries were due to self-inflicted gunshots and 6 were related to deer hunting. There were 11 injuries in 2014.

McPhee Resigns

Karen McPhee resigned from her position as Governor Rick Snyder’s education advisor effective April 1^st. Citing personal reasons, Ms. McPhee left her position after exactly a year. She was previously the Ottawa Intermediate School District superintendent. The Governor is reviewing candidates for the position.

Former Rep. Roy Schmidt Sentenced to Jail

Former Representative Roy Schmidt was sentenced to 45 days in jail with two years of probation for dealing marijuana. Mr. Schmidt pleaded no contest to one count of growing or manufacturing marijuana. Police found three pounds of marijuana in the former Representative’s home.

posted by PAA Online , 9:54 AM
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