Flint

The Legislature approved a 122-day extension of the State of Emergency in Genesee County and Flint on Wednesday. Senate Majority Leader Arlan Meekhof (R-West Olive) told reporters his understanding is that this will be the last extension. This extension allows Genesee County and Flint to continue to apply and receive state and federal aid.

In the Senate, Senator Hoon-Yung Hopgood (D-Taylor) attempted to adopt 11 amendments to the Senate’s Department of Environmental Quality proposal to give more money and resources to Flint. Only one amendment cleared and it related to water quality issues outside of Flint. The amendment required a study by the department on the long-term effects of perfluorinated compounds after the chemicals spilled from now-decommissioned Wurtsmith Air Force Base.

Senate Appropriations Committee Chair Senator Dave Hildenbrand (R-Lowell) commented he wants to handle the situation in Flint outside of the budget. He added the Legislature has appropriated three separate budget bills thus far, totaling $68 million in emergency funding.

Senator Hildenbrand also voiced his commitment to pursuing SB 777. SB 777 is a supplemental appropriations bill that would provide $126.7 million in revenue for six state budget areas in response to the crisis. Despite House Speaker Kevin Cotter (R-Mount Pleasant) saying he does not intend to take up any more supplemental appropriations, Senator Hildenbrand expressed the committee will continue to pursue additional resources.

Health and Human Services Director Nick Lyon and Environmental Quality Interim Director Keith Creagh appeared before the U.S. House hearing on the crisis on Wednesday. Mr. Lyon and Mr. Creagh were up before the subcommittees of Energy and Commerce Committee. Unlike the other two hearings, this one saw no intense questioning.

Director Lyon was asked about lead in the water and what the state is doing now to fix it. No questions were asked regarding Legionnaire’s disease or state action at the time of the breakout. Committee members instead pressed Joel Beauvais, deputy assistant administrator in the Office of Water at the U.S. Environmental Protection Agency, on a date for a revised Lead and Copper Rule. The agency is expected to release a proposal in 2017, to which Representative Fred Upton (R-Saint Joseph) commented that is too far off and would like to see the proposal sooner.

posted by PAA Online , Friday, April 15, 2016 11:23 AM
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March Jobless Rate Unchanged

Michigan’s seasonally adjusted unemployment rate stayed constant at 4.8 percent according to the Department of Technology, Management and Budget.

The total labor force grew by 26,000 to a total of 4.856 million in the state. This is 117,000 more than last year. Since March 2015, 157,000 more people have found employment totaling 4.624 million. Two months of unemployment at 4.8 percent leaves the state’s first quarter unemployment rate at 4.8 percent as well, marking the lowest first quarter rate since 2001.

Despite the jobless rate staying constant, the Detroit-Warren-Dearborn market declined to 5.7 percent from 5.8 percent. The area saw 18,000 more people enter the workforce with a total of 2.05 million. 19,000 obtained jobs for a total of 1.93 million.

The Department of Technology, Management and Budget said the state’s ratio of people working to population is 58.6 percent. The lowest percentage was 53.2 percent in December 1982. The highest was 66.8 percent in February 2000.

posted by PAA Online , 11:21 AM
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Budget Closes Two Prisons

The budget for the Department of Corrections was approved on Thursday reestablishing a lease of a private prison in Baldwin and calls for the closure of two unspecified prisons.

Senator John Proos (R-Saint Joseph), chair of the Appropriations Corrections Subcommittee, responded to Department of Corrections officials whom warned the committee of the closures by citing a trending surge in open beds. Department officials recognize the decrease in the state’s prison population, but feel it is too soon to say whether this will be long term. The closures would save about $46.97 million and the private prison in Baldwin would cost $31.6 million. From the savings, about $14 million will go into infrastructure needs at Corrections facilities.

The Senate bill and funding recommendation from Governor Snyder both increase funding from the General Fund to corrections, albeit the Senate bill is lower by $10 million.

posted by PAA Online , 11:20 AM
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PAAdvisory Briefs

Switch Contract

Switch, a Las Vegas based company, could see $26.4 million in state contracts. The Administrative Board Finance and Claims Committee is expected to approve a 10-year contract that allows Switch to take over one of the state’s current outdated data centers. The committee is expected to approve the contract next week.

No New Financial Emergencies

The Local Emergency Financial Assistance Loan Board found no financial distress in deficit school districts. Beecher Community School District, Hazel Park Schools, and Westwood Community School District were all found to be reducing their deficit and did not meet the criteria to be deemed in probable financial stress. The board did approve an emergency loan to Pontiac School District to reduce their payments for the next few years.

Capitol Commission Seeking More Funds

The Capitol Commission is seeking $300,000 to make security enhancements and resurface the parking lot behind the Capitol. Tim Bowlin, a commissioner and director of the House Business Office, originally projected a $2 million cost. The commission agreed the improvements to the parking lot are necessary, but the improvements are contingent on the additional funds.

posted by PAA Online , 11:20 AM
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