« January 2007 | Main | March 2007 »

February 28, 2007

Randy's American Dream

One of my fellow Michigan bloggers wrote a post recently that I think is one of the most insightful and eloquent things I've read in a long time.

Please take a moment to read My American Dream on Greed, Eggs, and Ham.  He post starts with dealing with life after having lost his car and continues to make some interesting points from there.

I'm a bit sentimental to his cause since my car was totalled in December after having been rear-ended by a drunk driver.  Regardless, he pretty much sums up how I feel.

You can read his post here

February 24, 2007

House Votes to Repeal Drug Immunity

The Michigan House of Representatives voted on Thursday to repeal the 1995 law that gave the pharmaceutical industry almost complete immunity from any lititgation surrounding their products.  House Bill 4044 was introduced by State Representative Mike Simpson (D-65, Liberty Township) was passed by a vote of 70-39.

The National Association of Manufacturers had previously refered to the Simpson bill as "threatening Michigan jobs with extinction."  MichBio was also very critical of this proposal; again arguing that it would hurt Michigan's economy.

I have to say that NAM  and MichBio were right about this one.  If this bill eventually becomes law, every single one of the new jobs that were created in the Great Lakes State as a result of it will certainly be lost.  Michigan residents will also likely lose the huge discounts in drug prices that happened as a result of Merck and others saving billions of dollars in settlement claims.

Oh, wait!  I forgot.

There weren't any new jobs created in Michigan when we have the drug companies this kind of immunity and our medicines didn't get any cheaper.

Of course, it is always a possiblity that the pharmaceutical industry could relocate a large number of their jobs outside of Michigan.  You know, to one of those other states that doesn't give immunity from litigation or cash to help them grow their business.

February 19, 2007

Levin Moves to Close Tax Shelters

Citing $100 billion in revenue drained from the U.S. Treasury at the expense of honest, hardworking American families who pay their fair share, U.S. Senators Carl Levin (D, MI), Norm Coleman (R-MN), and Barack Obama (D-IL), introduced comprehensive legislation to stop offshore tax haven and tax shelter abuses.

For more than four years, Mr. Levin and Mr. Coleman, the Chairman and senior Republican of the Permanent Subcommittee on Investigations respectively, have led an in-depth Subcommittee investigation into offshore tax havens, abusive tax shelters, and the professionals who design, market, and implement these tax dodges. Experts have estimated that the total loss to the Treasury from offshore tax evasion alone approaches $100 billion per year, including $40 to $70 billion from individuals and another $30 billion from corporations engaging in offshore tax evasion. Abusive tax shelters add tens of billions of dollars more.

The Stop Tax Haven Abuse Act is a strengthened version of a tax reform bill that Levin, Coleman, and Obama introduced in the last Congress. The legislation was strengthened as a result of a year-long Subcommittee investigation which resulted in a hearing and report on August 1, 2006, examining a series of case studies showing how U.S. taxpayers are using offshore secrecy jurisdictions to dodge U.S. taxes.

Among other measures, the 68-page bill would:

  • Establish Presumptions to Combat Offshore Secrecy by allowing U.S. tax and securities law enforcement to presume that non-publicly traded, offshore corporations and trusts are controlled by the U.S. taxpayers who formed them or sent them assets, unless the taxpayer proves otherwise;
  • Impose Tougher Rquirements on U.S. Taxpayers Using Offshore Secrecy Jurisdictions by listing 34 jurisdictions which have already been named in IRS court filings as probable locations for U.S. tax evasion;
  • Authorize Special Measures to Stop Offshore Tax Abuses by giving Treasury authority to take special measures against foreign jurisdictions and financial institutions that impede U.S. tax enforcement;
  • Strengthen Detection of Offshore Activities by requiring U.S. financial institutions that open accounts for foreign entities controlled by U.S. clients, open accounts in offshore secrecy jurisdictions for U.S. clients, or establish entities in offshore secrecy jurisdictions for U.S. clients, to report such actions to the IRS;
  • Close Offshore Trust Loopholes by taxing offshore trust income used to buy real estate, artwork and jewelry for U.S. persons, and treating as trust beneficiaries those persons who actually receive offshore trust assets;
  • Strenthen Penalties on tax shelter promoters by increasing the maximum fine to 150% of their ill-gotten gains, and on corporate insiders who hide offshore stock holdings by increasing the maximum fine on them to $1 million per violation of U.S. securities laws;
  • Stop Tax Shelter Patents by prohibiting the U.S. Patent and Trademark Office from issuing patents for “inventions designed to minimize, avoid, defer, or otherwise affect liability for Federal, State, local, or foreign tax”; and
  • Require Hedge Funds and Company Formation Agents to Know Their Offshore Clients by requiring them to establish anti-money laundering programs like other U.S. financial institutions, under regulations to be issued by the Treasury Department.
A summary of the Levin-Coleman-Obama bill, the bill text, and a floor statement by Levin explaining its provisions in more detail are available at levin.senate.gov.

Granholm Appoints Executive Clemency Advisory Council

Governor Jennifer M. Granholm (D, MI) on Friday took steps to continue sweeping reforms in the state's prison system that are a pivotal part of her overall plan to make government, more efficient and cost effective, which she announced in her State of the State Address earlier this month.  In addition to government reforms, the Governor's plan calls for spending reductions and a tax restructuring plan to ensure that Michigan can grow and compete in the 21st century.

Ms. Granholm has signed Executive Order 2007-2 establishing the Executive Clemency Advisory Council to assist the state Parole Board in reviewing clemency applications before they are submitted to the governor for final determination.  Granholm's reform calls for the release of nonviolent offenders from the state's prisons, starting with medically frail prisoners, non-violent elderly inmates, and foreign nationals who will be immediately deported upon their release.

The Executive Clemency Advisory Council will assist the Parole Board with an initial review of applications for reprieve, commutation, or pardon for the limited purpose of recommending to the board whether an individual application has merit.  The Parole Board is required by law to make a merit determination for every clemency request.  Only applications with merit receive comprehensive investigations by the Parole Board.  The initial merit review process requires the Parole Board to dedicate significant resources to each case within a limited time period.  The council will alleviate some of the Parole Board's resource constraints, and will ensure that all clemency requests continue to receive a fair, thorough, and efficient examination.

After the Parole Board reviews each clemency request, it is legally required to recommend that Ms. Granholm grant or reject the application.  Michigan's constitution gives the Governor exclusive authority to decide all clemency requests.  

The Executive Clemency Advisory Council will consist of seven members appointed by the governor, and will include representatives from law enforcement, crime victims or their families, and the general public.  Members of the council will serve at the pleasure of the governor.

The following individuals have been appointed as members of the Executive Clemency Advisory Council:

Dr. Charles G. Adams of Detroit, pastor of Hartford Memorial Baptist Church, appointed to represent the general public.

Gloria L. Baker of Roseville, accountant with Urban Science Options, appointed to represent crime victims or their families.

Joyce M. Braithwaite-Brickley of Traverse City, retired, appointed to represent the general public.

Mary Beth Kur of Petoskey, former Charlevoix County prosecutor now in private practice, appointed to represent law enforcement.

Rabbi David A. Nelson of Southfield, rabbi of Congregation Beth Shalom, appointed to represent the general public.

Janette L. Price of Eaton Rapids, former warden for the Michigan Department of Corrections, now retired, appointed to represent the general public.

Judge Rudolph A. Serra of Detroit, former judge of the 36th District Court, now in private practice, appointed to represent law enforcement and designated chair of the council for a term expiring at the pleasure of the governor.

The full text of Ms. Granholm's executive order is available on-line.

February 14, 2007

Senate Republicans Reject Spending Cuts

Republicans in the Michigan Senate voted today to reject Executive Order 2007-1, which was issued by Governor Jennifer M. Granholm (D, MI) to help reduce Michigan's budget deficit.  Unfortunately, they did not offer any of their own ideas as to how the Great Lakes State should deal with its lingering fiscal problems.

I can't say that I am surprised by today's development in the Michigan Senate.  Republicans in Lansing have long used the strategy of stone-walling the work of others, rather than try to put forward their own agenda.

The question of the day is:  how will Ms. Granholm respond?

During last year's gubernatorial campaign, she said that she would be more willing to play hard ball with Republicans in the Michigan Legislature.  This is something that she has been extremely reluctant to do in the past.  Will she start doing it now is ultimately the question for her to answer.

I would go so far as to argue that today's move to block Executive Order 2007-1 was nothing more than a test, served up by Senate Majority Leader Mike Bishop (R-12, Rochester Hills), to see if she is truly serious about moving her legislative agenda forward.  If Ms. Granholm fails this test, we can expect to see an endless series of moves like the one today for the next two years.

The proverbial ball is in the Governor's court.

Does she start by canceling a few road projects in Republican districts or another hard ball move?  Or does she resort to taking her case to the people of Michigan in hopes that it will persuade legislative Republicans to change their minds?

The ball is in Ms. Granholm's court.  We will soon know for certain.  She has up to 30 days in which to issue a replacement for Executive Order 2007-1.

February 13, 2007

Dems React to Trade Deficit

The U.S. Department of Commerce released its 2006 annual trade deficit figures today revealing another record-breaking year of $764 billion in losses for American workers.  Democratic Congressional leaders reacted by urging President George W. Bush (R) to chart a new direction in U.S. trade policy that addresses the explosive U.S. trade deficit and promotes broad-based equitable growth for all Americans.

The 2006 trade deficit represents a 6.5% increase over the 2005 record. House Speaker Nancy Pelosi (D-CA), Majority Leader Steny H. Hoyer (D-MD), House Ways and Means Chairman Charles B. Rangel (D-NY), and Trade Subcommittee Chairman Sander Levin (D-12, Roseville) joined key House Ways and Means Members in sending a letter to the President.  This letter called for the Bush Administration to be much more assertive when it comes to enforcing trade agreements around the world and, in particular, more agressive in dealing with violations of those agreements by America's trading partners.

The full-text of this letter is available on Mr. Levin's web site.  There is no early indications as to how Mr. Bush will respond to either this letter or the nation's growing trade deficit.  However, given the Bush Administration's track record, I expect this news to be met with an almost deafening silence.

Chertoff to Meet with Land

U.S. Senator Carl Levin (D, MI) secured a commitment from U.S. Department of Homeland Security Secretary Michael Chertoff to meet with Michigan Secretary of State Terri Lynn Land (R, MI) during his upcoming trip to Michigan regarding her proposal to streamline new federal ID requirements for border crossings with state-issued drivers’ licenses.  This commitment came during a hearing in Washington, DC of the Senate Homeland Security and Governmental Affairs Committee today.

Ms. Land has proposed a dual-purpose driver’s license/personal identification card that would combine the convenience and familiarity of a license with the secure technology of a passport. Such a document would harmonize the requirements of Western Hemisphere Travel Initiative (WHTI) and the REAL ID Act in one identification card.

WHTI will require individuals from the United States, Canada, and Mexico to present a passport or other document proving citizenship before entering the United States. Some border states have expressed concerns that this requirement could hurt cross-border commerce and tourism and delay traffic at border crossings.

Parental Notification Bill Passes Michigan Senate

The Michigan Senate unanimously passed legislation today that would require child care organizations to notify parents if a high risk investigation is being conducted involving their child’s care giver.

Sponsored by State Senator Bill Hardiman (R-29, Kentwood), vice chair of the Senate Families and Human Services Committee, the bill requires that parents must be notified within 24 hours after a child care organization receives notice from the Michigan Department of Human Services (DHS) that a high risk investigation is being conducted.

Senate Bill 97 states that the DHS should conduct a high risk investigation if any of the following conditions occur:

  • Abuse or neglect is the suspected cause of a child’s death;
  • A child is the victim of suspected sexual abuse or sexual exploitation; or
  • Abuse or neglect that resulted in severe physical injury to a child.

This legislation is a reintroduction of Senate Bill 1253 from last term. The bill received unanimous support in both chambers. Because of a technical error, however, the measure was not signed into law.

February 12, 2007

Obama Makes It Official

Barack ObamaU.S. Senator Barack Obama (D, IL) made it official recently.  He publicly said that he would indeed make a run for the White House in 2008.

This, of course, was little more than confirmation of what I had reported on this blog almost two months ago.  As trite as it may seem, it always nice to have confirmation of these things. 

Welcome to the party, Mr. Obama!

The good news for all Americans across this great land of ours is that there are now only 708 more days left until the grown-ups return to the White House.

Granholm Highlights Plan to Provide Free Worker Training

Just days after delivering her State of the State address, Governor Jennifer M. Granholm (D, MI) today visited Macomb Community College to discuss her plan to help displaced workers get the training they need to succeed in the new economy.  The governor talked about the challenges Michigan is facing and the need, now more than ever, to come together to diversify the economy and continue to invest in Michigan's people. 
 
"This moment demands bold action," Ms. Granholm explained.  "We must decide if we will invest in our people so that we can grow and compete, or make devastating cuts to education, health care and worker training - the very things that make us competitive." 
 
Ms. Granholm toured the technical training center at Macomb Community College where workers and students receive training in a variety of high-demand fields, including welding and advanced manufacturing.  The governor talked with students and education leaders about her new No Worker Left Behind program, which will provide a one-time opportunity for displaced workers to receive training for new jobs at no cost.  She noted that the state currently has 84,000 vacancies in fields like health care and skilled trades but that most of those positions require some type of training.
 
In addition to providing worker training, the governor's plan calls for:
 
-  Continuing to go anywhere and do anything to bring good jobs to Michigan, including further jobs missions to bring more private investments and job opportunities back to the state.
 
-  Diversifying the economy with a particular focus on the alternative energy sector. While alternative energy companies are already choosing Michigan for their growth, Granholm called for targeting more than $100 million in state and private resources to even more aggressively attract these high-growth companies.
 
-  Nurturing the growth of small businesses.  The governor has made more capital and start-up funds available to small businesses.  She called for passage of her plan to make 401(k) plans available to small business employees at little or no cost.
 
-  Requiring government to do business differently.  Granholm proposed changes to the prison system that will make more efficient use of taxpayer dollars while protecting public safety.  She proposed requiring local communities and school districts to share some services and save money, and she is increasing the number of workers protecting Michigan children, giving those workers new and better tools and requiring accountability for their work.
 
-  Investing in education.  Governor Granholm called for additional investment in our schools to build on the positive steps already taken.  The governor called on the Legislature to make kindergarten mandatory and raise the dropout age to 18, and for new investment to dramatically expand access to preschool.  The governor also proposed creating Promise Zones to allow local communities to capture tax revenue to help fund college scholarships similar to the Kalamazoo Promise. 
 
Ms. Granholm underscored that Michigan's ability to compete, attract jobs, and keep Michigan children here in the future is threatened by the state's financial crisis.  Although the governor has cut nearly $3 billion in state spending, more than any previous governor, and the state government has fewer employees today than at any time since 1973, the state is facing a $3 billion shortfall.  In her budget this week, Granholm proposed more than $400 million in spending cuts and a series of government reforms in addition to a plan to fix Michigan's broken tax system in a simple and fair way that enables further investment in Michigan's people.
 
While acknowledging that economic transition and the fiscal crisis that Michigan is facing are critical challenges to overcome, Ms. Granholm highlighted a number of promising developments:
 
  • This fall's college freshman will start school with a $4,000 Michigan Promise scholarship, which the governor signed into law at the end of last year.  This will give every Michigan child access to a college education or job training;
  • The governor's jobs missions to Japan and Germany have resulted in more than $230 million in new investments and more than 1,100 new jobs; 
  • Companies like Google and Whirlpool are growing jobs in Michigan, and 14 companies opened the doors of their world headquarters in Michigan last year; and 
  • Michigan's high school standards are now among the toughest in the nation, and Michigan MEAP scores are on the rise.
In addition to visiting Warren, the governor will also visit Grand Rapids, Flint, Jackson and Lansing this week to highlight key initiatives outlined in her State of the State Address.

Land Wants 16-Year Old to Register to Vote

Terri Lynn LandThe Associated Press is reporting that Michigan's Secretary of State Terri Lynn Land wants to see 16 year-olds to register to vote when they get they come into her office to get their first drivers license.  They won't be able to actually vote until after their 18th birthday, but they won't have to make a second trip to the Secretary of State's office in order to register.

Quite frankly, this is one of those ideas that as soon as I heard it, my first reaction was to wish that I thought of it first.  I hope that Michigan Legislature enacts the enabling legislation to make this happen and does so expeditiously.  More over, Governor Jennifer M. Granholm (D, MI) would be a fool not to sign such a bill once it reaches her desk.

The easier it is for first-time voters to register, the more likely they will be to vote.  And that the more people there are participating, the stronger our democracy is in the Great Lakes State.

February 01, 2007

Senate Republicans Add More Heat

Michigan CapitolAs the likely budget battle between Republicans in the Michigan Senate and Governor Jennifer M. Granholm (D, MI) begins to gather strength, the Republicans have added more heat to it.  Members of the Senate Appropriations Committee yesterday heard from representatives of the three state departments who violated the state Constitution by overspending their budgets from the previous year to the tune of $69.1 million.  The committee is chaired by Michigan Senator Ron Jelinek (R-21, Three Oaks).

Testimony was given by the Michigan departments of Corrections, Human Services and State Police to explain why more money was spent than allocated during fiscal year 2005-06. The departments also were questioned about reporting the overspending because Michigan law clearly states the Legislature be informed immediately of any overexpenditures. However, while the fiscal year ended on Sept. 30, 2006, it took until Nov. 21 for the Senate and House to be notified.

Unfortunately, the overexpenditures not only affect the previous fiscal year, but also the current fiscal year by adding nearly $70 million to Michigan’s budget deficit.

For FY 05-06, overexpenditures totaled $69.1 million, broken down by departments in the following way:

  • Department of Corrections, $19.6 million
  • Department of Human Services, $42.9 million
  • Department of State Police, $6.6 million.

Although overexpenditures have occurred in the past, three departments have not overspent at the same time since 1998 and overexpenditures have not neared the current dollar amount since fiscal year 1991-1992.

Levin & Stabenow Announce Money Money for Michigan Fire Departments

U.S. Senators Debbie Stabenow (D-MI) and Carl Levin (D-MI) announced yesterday that eight Michigan fire departments will receive $638,809 to pay for fire operations and fire safety programs, including training, equipment, wellness and fitness, and modifications to facilities. The funds are awarded through the fiscal year 2006 Assistance to Firefighters Grant Program.

The Assistance to Firefighters Grant Program helps rural, urban and suburban fire departments throughout the United States to prepare for emergencies and acts of terrorism.  It is administered by the U.S. Department of Homeland Security's Office of Grants and Training, in cooperation with the U.S. Fire Administration.

Individual grant awards can be found in the table below:

Organization

Location

Program

$ Amount

Williamston Fire Department

Williamston

Operations and Safety

$72,346

Hudson Fire Department

Hudson

Operations and Safety

$17,442

Porter Fire Department

Union

Operations and Safety

$57,468

Almont Fire Department

Almont

Operations and Safety

$10,731

St. Clair Area Fire Authority

St. Clair

Operations and Safety

$108,001

Troy Fire Department

Troy

Operations and Safety

$247,200

Hastings Fire Department

Hastings

Operations and Safety

$34,737

Springfield Township Fire Department

Davisburg

Operations and Safety

$90,884


Hosting by Yahoo!