Friday December 17, 2004 SIKKEMA BELIEVES ECONOMY IS MOST IMPORTANT Turning Michigan's economy around into a growth economy is the "single most important issue" facing lawmakers and other state officials in the next session, according to Senate Majority Leader Ken Sikkema (R-Wyoming). He repeated his earlier argument stating that doing so will require the state to rethink how it writes its budgets. While he repeated his pledge that the state would not raise taxes to keep the 2005-06 budget balanced, he asked if the state would cut taxes as some business groups have called for. Senator Sikkema said it would be a victory just to avoid raising taxes during the fiscal year. Sikkema said, "We are not well positioned to turn Michigan into an economic growth state.” He added that the state will have to do more to rebuild its economy, as there is no single cure that will turn it around. During the 92nd Legislature from 2003 to 2004, the state enacted a number of proposals to help businesses - including a proposal to cut the add back of the cost of health benefits to a company's single business tax by 50 percent - which will help the state in the long term. These changes are still not enough to turn the state's economy around. Sikkema said that, "You cannot continue to pour money into Medicaid with no significant changes and divert funds from higher education and K-12 in the 2006 budget.” According to Sikkema, over the last four years, Medicaid expenditures have risen nearly 31 percent, while K-12 education spending has been flat and higher education spending is down. Governor Jennifer Granholm's administration said the state has actually saved money on Medicaid expenses, and that she would not support cutting services to vulnerable recipients. While the state was spending $800 million more than it was taking in during the three years preceding Granholm’s first year, this administration has been able to hold down Medicaid cost increases below the rise in caseload increases and health care costs. National per capita health expenditures increased 6.2 percent from 2003-04, but per person expenditures for Medicaid only increased 2.4 percent from FY 2003 to FY 2004, less than one half of the national average. LOCAL GOVERNMENT HAS TERM LIMITS When people in Lansing talk about term limits, there is rarely any mention of term limits on the local government level. A vast majority of cities have addressed this, supporters report that 24 municipalities have adopted the law from Marquette to Plymouth.
PAADVISORY BRIEFS Hoogendyk Will Likely Run For Governor. Republican state Representative Jack Hoogendyk of Portage says he will likely decide in January whether or not to take the first steps in launching a campaign for governor in 2006 against Democratic Governor Jennifer Granholm. Representative Hoogendyk is the first potential Republican candidate to circulate his or her name as a possible challenger to Governor Granholm, who is seeking re-election. He has yet to take any initial steps toward becoming a candidate, such as forming a campaign committee that would allow him to begin raising money. Trott Enters GOP Race. The race for Republican Party chair took a surprise turn with the entry of David Trott, a Bingham Farms attorney. Trott entered the race in a big way as he was endorsed by U.S. Representative Candice Miller (R-Harrison Township). Following Miller's endorsement, former House Majority Floor Leader Andrew “Rocky' Rackzkowski dropped out of the race and endorsed Trott along with National Committee member Chuck Yob and Attorney General Mike Cox. In an interview, Mr. Yob said Mr. Raczkowski would remain involved in the party, and would serve as a co-chair if Mr. Trott were elected. Myrah Kirkwood of Flint, who endorsed Mr. Raczkowski on Monday, would also serve as co-chair with Mr. Trott. Hummel Will Chair House Appropriations. Representative Scott Hummel (R-DeWitt) is House Speaker-elect Craig DeRoche's choice to chair the House Appropriations Committee. Representative Hummel will give up his speaker pro tempore post to take the helm of Appropriations Chair.
Sine Die December 29, 2004 House/Senate Return January 12, 2005 State of the State February 2, 2005 Please Note: Public Affairs Associates will be closed Friday, December 24 and Friday December 31, 2004 for the holidays. |