Great Lakes Politics

Michigan Senator Tupac A. Hunter (D-5, Detroit) was named "Legislator of the Year" by the Michigan Credit Union League yesterday.

Mr. Hunter sponsored several initiatives to assist financial institutions, including establishment of Individual or Family Development Accounts, under which eligible individuals and families could establish special savings accounts to be used for education, first-time home purchases, or business capitalization.  He was also responsible for Public Act 192, which streamlines financial institution operations by repealing sections of statutes that required duplicate filings on suspicious activity. He was also cited for his tireless leadership on numerous consumer protection issues. 

Posted by fnemecek at 02:56 PM | Permalink

Michigan Senator Samuel Buzz Thomas (D-4, Detroit) recently became to first state senator in the Great Lakes State to launch his own video podcast as a way to reach out to his consitutents.

Mr. Thomas' video can be seen for free on YouTube.com.  He came across a little stiff in his delivery, but it looks like a promising endeavor for him.  If it goes well, I predict that many other members of the Michigan Legislature will start their own vodcasts in the near future.

Posted by fnemecek at 02:10 PM | Permalink

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.

Posted by fnemecek at 07:30 PM | Permalink

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.

Posted by fnemecek at 09:53 PM | Permalink

As 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.

Posted by fnemecek at 11:00 AM | Permalink

Governor Jennifer M. Granholm (D, MI) isn’t scheduled to unveil her new tax plan formally for another couple of weeks.  Republicans in the Michigan Senate, however, managed to strike first with their own plan, which they are calling the Business & Economic Stimulus Tax proposal or BEST.

The BEST proposal was introduced in Lansing on Thursday by Senate Majority Leader Mike Bishop (R-12, Rochester) and Senator Nancy Cassis (R-15, Novi) cuts taxes for Michigan businesses by $290 million.  A major lynchpin of the legislation is the choice of taxation it offers. Businesses with gross receipts between $350,000 and $15 million will have the ability to choose to pay either a modified gross receipts tax or a business income tax.

Neither Mr. Bishop nor Ms. Cassis offered any specific proposals at to how the State of Michigan, which is already straining under a budget shortfall, should make up for the loss of $290 in tax revenue.  Instead, they offered the standard GOP mantra that "government should live within its means".

Quite frankly, I'm getting tired of people using that line.  As a private citizen who happens to write a blog, I manage to live within my means.  However, when I take on a new project that might effect my income, I always have an idea of what I'm going to do as a result.  Press conferences, I'm afraid, will not solve Michigan's problems. 

The BEST proposal is contained in Senate Bills 94-96.  Those bills have been sent to the Senate Finance Committee for consideration.  Since Ms. Cassis chairs said committee, one should expect a fairly prompt hearing.

Posted by fnemecek at 11:17 AM | Permalink

Michigan Senator Gilda Z. Jacobs (D-14, Huntington Woods) and Michigan Representative Paul Condino (D-35, Southfield) are praising Governor Jennifer M. Granholm’s (D, MI) signing of PA 648, which will allow the Southfield school board to lower the school operating millage to 18 mills for primary residences in this school district.  The funding implementation will be addressed during the next legislative session.

The existing Proposal A funding formula inadvertently penalizes communities with large commercial tax bases.  Southfield school district, which includes Lathrup Village, is one of two districts helped by the new law.  The legislation will save the average Southfield homeowner approximately $77 annually.

“This reduction, while modest, is an important tool to attract and retain homeowners to aging Detroit suburbs,” Ms. Jacobs explained.  “It’s a way to address an inequity that is inherent to Proposal A.”

In most communities throughout the state, primary residence owners pay 18 fewer school operating mills than other property owners.  However, in Southfield and Lathrup Village, taxpayers pay the same millage rate whether or not they own a primary residence.  River Rouge is the second community adversely affected by Proposal A.

"Homeowners should not be punished with higher tax bills than their neighbors because the district has fewer homesteads to tax," Mr. Condino said.  "I thank the Legislature for their overwhelming bipartisan support of HB 4125, which will allow residents of Southfield and Lathrup Village to enjoy a small amount of the property tax relief other homeowners have long enjoyed under Proposal A."

Under the legislation, non-primary residence rates, including business and rental properties, would remain at the current rate as approved by voters.

Posted by fnemecek at 06:41 PM | Permalink

Senate Democratic Leader-elect Mark Schauer (D-19, Battle Creek) unveiled today the staff for both his leadership office and the caucus. The assignments include a number of returning staff, as well as new positions and increased responsibilities.

Leader’s office appointments include:

• Ken Brock as Schauer’s Chief-of-Staff. Brock has served in this capacity for both Schauer and former Senator Burton Leland (D-Detroit);
• Lisa Dedden-Cooper as Schauer’s Legislative Director. Dedden joined the Schauer office last year as Deputy Chief-of-Staff after serving in a similar role for the House Democratic Floor Leader;
• Lisa Metcalf as Schauer’s Deputy Chief of Staff for Administration. Metcalf has worked with Schauer since 2002 and previously worked on House Democratic Central Staff.
• Margaret Schulte as Director of Member Services. Schulte joins the leader’s office after working with Senator Liz Brater (D-Ann Arbor) and former Senator Ken DeBeaussaert (D-Chesterfield); and
  
• B.J. Neidhardt as Director of External Affairs. Neidhardt is the former Campaign Director for the Senate Democratic Caucus, and has also worked on the gubernatorial campaign of former Virginia Governor Mark Warner and U.S. Representative Dick Gephardt’s 2004 Presidential run.
  

Caucus office appointments include:

• David Randels as Caucus Staff Director. Mr. Randels has previously served as the Caucus Deputy Director of Constituent Services and Schauer’s Constituent Services Director;
• Nancy Green to remain Policy Director;
• Tom Lenard to remain Communications Director.  Mr. Lenard will also serve as Schauer’s spokesperson;
• Liz Kerr as Deputy Communications Director;
• Mike Vatter to remain as Director of Information Systems;
• John Mulcrone to remain as Democratic Legal Counsel.

Posted by fnemecek at 02:42 PM | Permalink

The Michigan Senate is working overtime at the moment, accomplishing more than they have all year.  This afternoon, they passed the Michigan Motion Picture Incentive Plan by a unanimous vote.

Michigan is currently one of the only states in the union that offer Hollywood absolutely no incentives to shoot in the Great Lakes State.  We have been losing almost $1 billion in investment as movies that are set in Michigan are filmed in Toronto or elsewhere.  This, of course, is on top of the music videos and automotive commericials that were also shipped to production companies outside of Michigan.

The incentive package was put together by State Representative Bill Huizenga (R-90, Zeeland), but has been bottled up in the Senate Finance Committe by its chair, State Senator Nancy Cassis (R-15, Novi).  Huizenga's proposal was modelled after a similar package in Louisiana, which has brought almost $800 million each year to the Pelican State.

The legislation now goes to Governor Jennifer M. Granholm (D, MI) who has indicated that she will sign it. 

Posted by fnemecek at 05:26 PM | Permalink

The Michigan Senate voted 26 to 12 yesterday to approve House Bill 6456, which was sponsored by State Representative Mike Nofs (R-62, Battle Creek) and has sat quietly in the Legislature since September.  Governor Jennifer M. Granholm (D, MI) is expected to sign it into law, in large part because of the 2,000 jobs that AT&T is expected to create in Michigan because of it.

The somewhat quick passage of this bill took some folks by suprise.  The bill has been sharply criticised by some for the fact it allows telecommunications companies to compete for internet and cable services, but doesn't do anything guarantee network neutrality or accessibilty to the internet in rural and low-income areas.

My counterparts over at Absolute Michigan managed to put their take on this issue up before I got a chance.  (Dangit!  Beaten to the punch!)  Suffice it to say, I agree with their take on it.

Posted by fnemecek at 11:55 AM | Permalink

Douglas Campbell, the Green Party’s candidate for Governor of Michigan, published an editorial in the Detroit News today.  He argues that Democrats need to stop complaining about how the Greens spoiled an election, which they have been doing ever since it became apparent that Andy Levin would have beaten John Pappageorge for the 13th District seat in the Michigan Senate if the Green candidate’s votes had gone to Levin instead.

Mr. Campbell is right, of course.  The Green Party isn’t going to stop running candidates any time soon.  Democrats need to position themselves to win even with a spoiler on the ballot.  It’s just a fact of life and the sooner Democrats accept it, the sooner they will regain control of the Michigan Senate.

Of course, the one fact that Mr. Campbell forgot to mention is the presence of a Green candidate on the ballot will almost certainly cause the Democratic candidate to move farther to the right in all of his positions in order to win.  The Greens, therefore, who do well to be more careful in selecting which campaigns they are going to field a candidate for.

That or quit complaining when there’s no one in Lansing who is even close to their ideology.

Posted by fnemecek at 04:10 PM | Permalink

Companies receiving a tax-free renaissance zone designation to build or expand in Michigan would be required to give preference to Michigan construction firms under legislation sponsored by State Senator Jud Gilbert (R-25, Algonac). Testimony in support of Senate Bill 1414 was given today in the Senate Committee on Commerce and Labor.

“This legislation helps clarify and put in writing something that should have been an obvious part of any contract – that Michigan workers be given preference over out-of-state workers,” said Gilbert. “In this day and age, a verbal agreement means nothing and is too easy for someone to forget. We need to ensure something as important as employing Michigan residents is put in writing so these jobs are not outsourced.”

This issue arose because a company in Marysville is using out-of-state laborers to build its new ethanol plant instead of local workers. Allegedly, there was a promise between the city and Marysville Ethanol to use local workers but nothing was ever written in the contract or city resolution.
Gilbert highlighted the importance of having local units of government involved in the process of establishing renaissance zones. He noted this is crucial because they are the first level of government with the opportunity to stress using Michigan jobs by including appropriate language in a resolution.

Gilbert's proposal makes it explicit that the following must be taken into consideration when designating renaissance zones for tax abatements:

• The creation of indirect jobs associated with construction or expansion of a facility; and
• The number of Michigan residents to be employed to construct or expand a facility.

Posted by fnemecek at 10:15 AM | Permalink

 

 

Legislation that would encourage major sporting events to locate in Michigan passed out of the Senate Appropriations Committee and now moves to the Senate Floor, said State Senator Shirley Johnson (R-13, Troy).

Sponsored by Johnson, Senate Bills 1372 and 1373 would extend the current sales tax exemptions given on sponsor packages at certain major sporting events. Such events include the Super Bowl, PGA Championship and the NCAA basketball tournament. The current tax exemption is set to expire on January 1, 2007.

The driving force behind the legislative package is the success of the 2006 Super Bowl at Ford Field in Detroit and the 2004 Ryder Cup at Oakland Hills Country Club in Bloomfield Hills.

By extending the tax exemption to include the NCAA Basketball tournament and the PGA Championship, sports organizations will be allowed to sell sponsorship packages at the event. The packages are an integral part of a major sporting event’s promotion.

I'm glad that Senator Johnson took a leadership role on this issue and that the Committee acted on it.  Now, however, I hope that the full Senate as well as their counterparts in the State House act swiftly to approve it.

Of couse, I can't help but contrast Senator Johnson's bill with State Senator Nancy Cassis (R-15, Novi) and her decision to keep an incentive package bottled up in the Senate Finance Committee that was designed to attract film and television production to the Great Lakes State.  Cassis' unwillingness to let this legislative package has already cost Michigan more than $1 billion in new investments and jobs.

Posted by fnemecek at 01:26 PM | Permalink