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Friday November 19, 2004

PALSROK TO OVERSEE TRANSITION

 

House Speaker-elect Craig DeRoche has named Representative David Palsrok as Chair of the committee that will oversee the transition between outgoing House Speaker Rick Johnson and Representative DeRoche.  The transition team is charged with evaluating the House Republican caucus and suggesting constructive changes that will best reflect Representative DeRoche's leadership style.  Necessary changes will also be made to improve the effectiveness of the House Republican majority.

 

Representative Palsrok (R-Manistee), elected to a second term, has a background that gives him insight into the challenges facing the House, DeRoche said.  Palsrok, prior to joining the House, worked as a legislative aide for former House Republican Floor Leader Dan Gustafson and as chief of staff to former Senate Assistant Majority Leader Michael Bouchard.

 

House Republican’s Leadership Team Includes:  Representative Bruce Caswell of Hillsdale and Representative-elect Kevin Elsenheimer of Bellaire as Associate Speaker Pro Tempore.   Representative-elect Dave Hildenbrand of Lowell and Representative John Stakoe of Highland Township are both Assistant Majority Floor Leaders.   Representative Brian Palmer of Romeo is majority whip and Representative David Farhat of Fruitport is Majority Caucus Chair.

 

2006 STATE BUDGET MAY BE $1 BILLION IN-THE-HOLE

 

According to Tom Clay of the Citizens Research Council, Governor Jennifer Granholm and state lawmakers will have to solve a $1 billion General Fund budget hole when they develop the state's next budget.  Clay also noted that the largest chunk of the '06 budget gap will come from reduced federal funding for Medicaid as well as new funding requirements and rising drug costs.

Clay made the assertion assuming that 2006’s Fiscal Year beginning October 1, 2005 will see a state revenue growth of 3 percent and also uses the current Fiscal Year budget as a baseline for spending. The problem, he argues, is not declining revenue as in past years, but expanding costs.

Greg Bird, spokesperson for Budget Director Mary Lannoye, acknowledges that the administration is well aware of this situation.  "I don't think I would dispute any of what Tom is saying," Bird said. "FY 2006 is going to be a very challenging year. We're very hopeful we can work with the Legislature to derive some acceptable solutions."

Ari Adler, spokesperson for Senate Majority Leader Ken Sikkema (R-Wyoming) said talk of the deficit in 2006 brings Sikkema's point home.  Sikkema argues that spending doesn't naturally or automatically go up unless the Governor and lawmakers allow it to. "There may be circumstances beyond our control [on the spending side]," Adler said, "but if there is anything we can effectively do to reduce the deficit, that's what we're going to be targeting."

Keith Ledbetter, spokesperson for House Speaker Rick Johnson (R-LeRoy), warned that the $1 billion is thus far only a prediction.  "That's one of the reasons we're holding a revenue estimating conference. I think we'll have a little bit better idea where revenues are," said Ledbetter. "We're also eager to see what the Governor is going to present to us in February and we also know we're going to have to hold the line on major spending increases."

DEROCHE QUESTIONS VALIDITY OF VETO

 

House Speaker Elect Craig DeRoche (R-Novi) is requesting an Attorney General's opinion on whether Governor Jennifer Granholm had the authority to veto a portion of boilerplate language in SB 1066, the FY 2004-05 DEQ budget bill.  The veto in question was that of line item Sec. 603 of SB 1066, the DEQ Budget. Granholm vetoed the line item on Sept. 28.

The line item creates a condition for a level of appropriation, based on whether or not the DEQ completes its wetland inventory. It states —

. . . the department shall complete the wetland inventory in 100 percent of counties by Aug. 30, 2005. If the wetland inventory is not completed, the appropriation (in part 1) for state general fund/general purpose shall be reduced by $5 million.

Press Secretary Liz Boyd said that Granholm vetoed the line item because it was unreasonable. “We are very supportive of finishing the wetlands inventory,” Boyd said, “but both the deadline and the penalty as outlined in the bill were unreasonable.”

 

PAADVISORY BRIEFS

 

Michigan Ranks Low on Women’s Wages: According to a report by the Institute for Women's Policy Research (IWPR), Michigan is ranked among the worst for women in terms of their wage equality with male workers. At the same time, the State was ranked as second highest for the participation of women in the political process.  The report gives Michigan a C- on employment and earnings. Since 1996, the state has slipped from 27th in the nation to 33rd, despite relatively high median annual incomes for women.  Michigan's overall score was dragged down by the gap between men's and women's wages. On average, Michigan’s women earn two-thirds of what Michigan’s men earn for full-time employment. Although the ratio has improved from 62 percent in 1996, Michigan women lost ground when compared to women in other states.

Holcomb Named Chief of Staff: House Speaker-elect Craig DeRoche (R-Novi) has named James Holcomb as his Chief of Staff for the 2005-2006 House session.  Holcomb, of Haslett, is a Milan native who received his law degree at Cooley Law School and his bachelor's degree from Central Michigan University (CMU). Holcomb has held a variety of positions within state government, most recently as majority legal counsel and director of the House Republican Policy Office.  Holcomb has served as legislative director for former Senator Joanne Emmons and legislative aide to former Representative Bob Brackenridge.

 

Stabenow Elected as Caucus Secretary: U.S. Senator Debbie Stabenow was elected as caucus secretary, the third highest-ranking leadership post in the Senate Democratic caucus. Stabenow joins U.S. Senator Harry Reid (D-NV), the new Senate Minority Leader, and Senator Richard Durbin (D-IL), the new party Whip, as the leadership team of Senate Democrats. “Debbie Stabenow brings to this leadership position her years of congressional leadership, a willingness to work across the aisle, and a great knowledge of the important issues facing American families,” incoming Senate Democratic Leader Reid said.