GRANHOLM URGES ACTION BEFORE SUMMER Governor Jennifer Granholm, flanked by Democratic leaders, announced that bills implementing her “Jobs Today” initiative were ready for introduction. Granholm voiced her desire to have the bills enacted before summer break in order to provide a much needed economic stimulus to the state. Granholm announced the proposal in her State of the State address and has continued calls for the Republican-controlled Legislature to act on these bills quickly. The bills awaiting introduction include: a bill to amend the state’s downtown development authority and tax increment financing authority laws to use captured property tax revenues to help fund downtown improvements; a bill to change the School Bond Loan Fund into a revolving fund capable of self-sustainability, thus allowing school districts to accept zero-percent loans for up to five years; and a bill to amend the State Building Authority Act to allow for special maintenance programs at Michigan’s universities and community colleges. BUDGET PROGRESSING AS EXPECTED Legislative leaders have targeted July 1st for completion of work on the FY 2005-06 budget. However, potential obstacles may derail this optimistic plan to complete work on the budget prior to the beginning of the state’s new fiscal year – October 1, 2005. One such obstacle is the Legislature’s transition to the outcome-based budgeting process advocated in “The Price of Government.” This new process has resulted in each chamber taking up every budget bill concurrently. In previous budget cycles, the House would deliberate on half the budget bills while the Senate concentrated on the other half. Thereafter, each chamber would pass its respective bills onto the other chamber for continued deliberation and concurrence. Substantial philosophical differences remain between the two chambers and negotiations could become contentious. DIALOGUE CONTINUES ON NURSE STAFFING BILL The Senate Health Policy Committee held a hearing on legislation mandating minimum nurse-patient ratios and banning mandatory overtime. A representative from the Michigan Nurses Association voiced his support for SB 169, a bill sponsored by Senator Bruce Patterson (R-Canton). He attributed Michigan’s nursing shortage to sub par working conditions in state hospitals, where nurses are required to work long hours, face mandatory overtime and are responsible for numerous patients. Moreover, he cautioned that under these circumstances nurses were more likely to make potentially life-threatening mistakes while caring for a patient. He also suggested that improved patient care and decreased turnover would result from better staffing ratios. This bill has been met with stiff resistance from state hospitals, who worry they can’t absorb the costs associated with hiring the additional nursing staff necessary to meet mandated nurse-patient ratios. They believe other creative strategies could be implemented to meet the goals advocated in this bill. GOVERNOR’S SBT PLAN GAINS SUPPORT? A survey of 610 business owners done by EPIC/MRA, a Lansing-based consulting firm, suggests that state businesses were open to supporting Governor Jennifer Granholm’s Single Business Tax proposal.
On a preliminary question about the plan, 65 percent were undecided, 18 percent supported it, and 17 percent rejected it. 79 percent knew little or nothing about the plan. However, on receiving the plan’s basic information, support rose to 55 percent while 25 percent rejected it. The survey also showed that while business owners may be willing to go along with the plan short term, they do not see it as a long term solution and will not support it long-term. As more information was given and questions about the plan were asked, support for the plan fell leaving 50 percent in support and 29 percent opposed. One reason for the fall in support came from the idea that it picked winners and losers. Press Secretary for Ms. Granholm says the SBT proposal needs to be viewed in conjunction with the Governor’s other plans in determining the economic outlook for business. SBT TO GET BUSINESS INPUT In related news, the House and Senate will hold hearings across the state to garner input concerning the Governor’s SBT proposal. A total of 12 hearings will be held throughout the state to debate the merits of the Governor’s proposal to lower the SBT in an effort to cut taxes for about 75 percent of businesses. The meetings are scheduled for: Monday, April 25 at 1 p.m. in Lansing; Monday, May 2 at 1 p.m. in Grand Rapids; Monday, May 9 at 1 p.m. in Traverse City; Thursday, May 12 at 3:30 p.m. in Gaylord; Friday, May 13 at 9:30 a.m. in Sault Ste. Marie; Friday, May 13 at 2:30 p.m. in Marquette; Monday, May 16 at 1 p.m. in Kalamazoo; Thursday, May 19 at 3 p.m. in Saginaw; Monday, May 23 at 1 p.m. in Oakland County; Wednesday, May 25 at 8:30 a.m. in Lansing; Wednesday, June 1 at 8:30 a.m. in Lansing. Separate hearings will be held on a component of the SBT proposal to cut personal property taxes on business by $1.2 million. The administration also expects the GOP to propose alternatives for aspects of the complete package that may trouble them. MICHIGAN ROADS REQUIRE MAJOR UPGRADE According to a Mike Nystrom, vice president of government and public relations for the Michigan Infrastructure and Transportation Association (MITA), Michigan roads are in dire need of increased funding. According to statistics, Michigan needs about $900 million a year to meet its road improvement needs. However, it is only eligible for about $200 million in federal funds. Therefore, Michigan must find ways to come up with additional funds to close the gap. Proposals have ranged from raising the tax on gasoline and diesel fuel to increasing registration fees. Others have advocated for imposing local road taxes, reallocating revenue from sales taxes derived from fuel purchases, as well as, implementing toll roads. ITEM PRICING LEGISLATION ON TAP A bill to allow customers to collect 20 times the amount of an overcharge (up to $10 and no less than $5) is currently under consideration. The Michigan Retailers Association is advocating for the inclusion of a provision eliminating current requirements to label every item in its member’s stores. Their effort has been met with resistance by critics who charge that such a move would weaken current item-pricing laws. MRA responded by arguing that this proposal would allow retailers to reduce wasted staff time spent on labeling. If passed, the bill would require retailers to post large signs clearly stating the price of an item, and provide self-serve scanners. Also, grocery stores would still be required to label every item. PAADVISORY BRIEFS HOUSE MEMBERS SEEKING ELECTION: Several members of the Michigan House of Representatives are exploring the possibility of running for mayor or other elective offices in their respective districts. 23 of the House’s 110 members have considered the idea including Rep. Clarence Phillips (D-Pontiac) who is running against incumbent Pontiac Mayor Willie Payne; Rep. Mary Waters (D-Detroit) who may challenge current Detroit mayor Kwame Kilpatrick; Rep. Chris Kolb (D-Ann Arbor); and Rep. Alexander Lipsey (D-Kalamazoo), who is considering running against Republican Attorney General Mike Cox or Sen. Tom George (R-Portage). MEETING SCHEDULED FOR WEDNESDAY: On Wednesday, Governor Jennifer Granholm and the legislative leaders will meet to continue discussions on ways to improve the state’s economy. GOT JOBS?: The Department of Labor and Economic Growth (DLEG) is coordinating an initiative to put displaced workers into jobs by year’s end. In May, DLEG, through the Michigan Opportunity Partnership, will seek out commitments from Michigan employers in an unprecedented attempt to place 30,000 prospective employees. LAWSUIT FILED CHALLENGING “NO CHILD LEFT BEHIND”: The Pontiac School District, along with eight other school districts from three states (Texas, Michigan, Vermont), filed suit in federal court on Wednesday. At issue, is the adequacy of funding necessary to fully comply with the requirements imposed on local districts by the 2002 “No Child Left Behind” Act. The suit seeks to determine whether a district has to expend its own money to comply with the Act, and whether the grant of federal funding can be withheld for non-compliance with the Act. GRANHOLM TESTIFIES AT MEDICAID FORUM: Governor Jennifer Granholm testified in the Nation’s capital this week on proposed cuts in federal Medicaid funding. In a forum sponsored by the Democratic Leadership Council and led by United States Senator Hillary Rodham Clinton (D-New York), Governor Jennifer Granholm will be among top Democrats testifying on the potential impact that proposed federal cuts to Medicaid could have on states. U.S. Senator Debbie Stabenow (D-Lansing) and U.S. Representative John Dingell (D-Dearborn) will also be participating. SENATOR ANNOUNCES FOR LANSING MAYOR: Senator Virg Bernero (D-Lansing), announced his candidacy for mayor of Lansing. This is Bernero’s second run at the capital city’s top job, losing to current Mayor Tony Benavides in 2003. |