Detroit Public Schools

The Department of Treasury released a document stating that Detroit Public Schools (DPS) will run out of money in August under the House-passed plan. House Speaker Kevin Cotter (R-Mount Pleasant), in response, questioned both the timing and the new district’s wish list in the report.

According the Treasury, DPS would run $22.2 million deficit in August under the House plan with an $80.1 million negative cash balance in September. Under the Senate plan, the cash balance would not fall below $86.9 million. The major difference between the House and Senate plan is the Senate provides $200 million in transition costs, whereas the House allocates $33 million. Speaker Cotter said he has asked for specifics on what the $200 million would be spent on with no proper response, so they acted on a plan with the information given. Mr. Cotter said he and his members are frustrated by the lack of details from Treasury.

The Treasury document did specify that if the Legislature takes no action with the schools, the district would run out of money in July with a negative cash flow of $22 million. A negative cash balance of $18.7 million in July would also occur and grow to $134.9 million by the end of June 2017. The analysis also places the total additional cost of debt retirement and transitional items at $670 million, less than the original $715 million because the Legislature appropriated $48.7 million in supplemental funding.

Specifically, the document labels the $200 million to be used as follows: $125 million for cash needed at the inception of the new district ($58 million) and pending contingencies, payroll costs, professional transition costs and academic support; $65 million for deferred maintenance, upgraded school security and school closures and planning; and $10 million for investment in key academic programs.

Speaker Cotter insists the focus has been on paying off debt and returning to local control, both of which are accomplished by the House plan. He looks forward to more breakdowns of the $200 million.

posted by PAA Online , Friday, May 13, 2016 10:13 AM
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Casperson and MUCC at Odds Over Land Acquisitions

The Senate Natural Resources Committee heard testimony over legislation that would limit the amount of land the Department of Natural Resources can own. The bill also requires certain conditions on its payments in lieu of taxes (PILT) to local government on such land.

SB 39 and SB 40 both adopted S-1 substitutes, yet neither was reported. Among those who testified, several were opposed including the Michigan United Conservation Clubs (MUCC). Residents and local governments were generally in support. Dan Eichinger, executive director of the MUCC, specifically had concerns with determining whom would be the primary beneficiary of land acquired using the hunter/angler dollars. Committee Chair and bill sponsor Senator Tom Casperson (R-Escanaba) responded to MUCC criticism by stating he is attempting to give relief to land purchases across the state.

SB 39 prohibits the Department of Natural Resources (DNR) from owning more than 4.26 million acres of land if legislation is not enacted approving the DNR’s strategic plan to guide the acquisition and disposition of state land or the state does not make its required PILT to local governments. There would also be a limit specific to northern Michigan of 3.91 million acres put in place. The DNR’s strategic plan needs to identify the authorized uses of land managed by the department and specify the plan’s performance goals to maximize access to land, including the removal of man-made barriers. The DNR’s strategic plan timeframe would be shortened, and the department is to provide public access to all land under its control for outdoor activities. Finally, SB 39 prohibits the DNR from issuing an order to protect and preserve property under its control that limiting the use of or access to any land, unless acquired with federal funds or the state’s Game and Fish Protection Account, or in an emergency.

SB 40 simply expands the allowed uses of money in the Land Exchange Facilitation Fund to include the maintenance cost of natural resource management activities, the payment of special assessments levied on land owned by the DNR and state payment of PILT. The provision, which allows the department to make a proposed land purchase if the Michigan Natural Resources Trust Fund Board does not act on recommendations to purchase land within 60 days, will be removed.

Senator Casperson, when criticized by the MUCC and the department, argued the PILT issue may have already been addressed, but is far behind the Governor’s recommendation. Mr. Casperson feels if the department wishes to purchase more land, they have a responsibility to come to the Legislature like anyone else. The Legislator has this right per the Michigan Constitution. The committee did not vote on these bills, and more hearings are to be expected.

posted by PAA Online , 10:12 AM
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Flint

Senator Jim Stamas (R-Midland), chair of the Joint Select Committee on the Flint Water Public Health Emergency, announced the committee will conclude for now and will only meet with one another to discuss policy recommendations, which he hopes to issue by the end of the month.

Mr. Stamas commented he feels the residents deserve action on solutions to begin, and will only convene to discuss and debate any matters that arise between now and the issuance of the committee’s own recommendations. Primarily, discussions of changing the state’s emergency manager law have been discussed along with infrastructure investment and ensuring proper accountability for the executive branch and state departments. Senate Minority Leader Jim Ananich (D-Flint) and Representative Jeff Irwin (D-Ann Arbor) both expressed displeasure in the committee effectively concluding the public testimony. Both feel more work needs to be done. However, Senator Ananich did comment he understood Mr. Stamas’ reasonings.

The House Judiciary Committee heard testimony on two Flint-inspired bills that prohibit a public employee from intentionally altering data, and instituting criminal penalties for doing so. Some members on the committee questioned whether these bills were too broad to be effective.

HB 5588 and HB 5589, were introduced by Representative Phil Phelps (D-Flushing) and Representative Klint Kesto (R-Commerce Township), once they discovered there was nothing in state law prohibiting a public employee from intentionally altering, tampering, or destroying data. The bills aim to make these actions, along with the intent to mislead someone, a felony punishable by imprisonment of five years or less and up to a $5,000 fine. The bills will not include a research report or infringe on whistleblower protections, according to Representative Kesto.

Representative Martin Howrylak (R-Troy) believes the language in these bills is far too broad, to which Mr. Kesto responded the intent of the actor and purpose are specific. Representative Rose Mary Robinson (D-Detroit) also agreed on the vagueness of the terms used, where Representative Kurt Heise (R-Plymouth) questioned the need, as Attorney General Bill Schuette is pressing charges against those involved in the Flint water crisis. Representative Phelps responded had these laws been in place, it would have made it easier to hold those individuals accountable.

posted by PAA Online , 10:11 AM
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PAAdvisory Briefs

Beer, Wine Sales Approved by Senate Panel

The Senate Michigan Competitiveness Committee on Wednesday reported SB 929, a bill that allows gas stations in Michigan to sell beer and wine. The new licensees are specifically designated merchants and one license is available per each 1,000 people in the municipality. A portion of the licensing revenue will go to the Liquor Control Commission through the Liquor Control Enforcement and License Investigation Revolving Fund.

Whitmer New Interim Ingham County Prosecutor

Former Senate Minority Leader Gretchen Whitmer will take over as interim Ingham County prosecutor beginning July 1^st. Ms. Whitmer will serve the remainder of the year, but will not be running for full term. Ingham Circuit judges elected Ms. Whitmer to the position. She has previously served in the House and Senate and as an attorney with the Dickinson Wright law firm.

Milliken Endorses Driskell

Former Republican Governor William Milliken announced on Wednesday his support for Democratic Representative Gretchen Driskell (D-Saline) over U.S. Representative Tim Walberg (R-Tipton) in the 7^th U.S. House District. Ms. Driskell touts this endorsement as an indication of her bipartisan support in the district. Ms. Driskell has also received an endorsement from former U.S. Representative Joe Schwarz who held the seat for the 2005-06 session.

4^th Senate District Filings

Former Representative Fred Durhal Jr. and Ian Conyers are among top contenders for the open 4^th Senate District seat recently vacated by Virgil Smith. Nine Democrats and sole Republican Keith Franklin have filed for the seat. James Cole Jr., who ran for Detroit City Clerk in 2013, has also registered along with residents Patricia Holmes, Vanessa Simpson Olive, Ralph Rayner and Helena Scott. Detroit City Council Candidate Carron Pinkins has filed as well. Finally, Howard Worthy will run again for the seat.

posted by PAA Online , 10:10 AM
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