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PAADVISORY December 29, 2005

Happy New Year and Thank you….

We want to wish all our clients and friends a Happy New Year and best wishes for a healthy and prosperous 2006.

As Public Affairs Associates approaches our 35th year of providing public policy consulting, we want to thank everyone for your continued business and support of our team.

Thank you, and again HAPPY NEW YEAR!

The PAA Team

LEGISLATURE CONCLUDES 2005 WITH SINE DIE SESSION

In what is normally a mere formality, the Legislature’s Sine Die session opened with a bit of a twist as the House acted on a bill to extend the sunset on the State’s current welfare provisions. The House adopted Senate Bill 757, a bill sponsored by Senator Shirley Johnson (R-Royal Oak). Passage of the bill became necessary due to the Governor’s veto of a package of bills that would have put into place new guidelines for state welfare recipients, including the imposition of a 48-month time limit on able-bodied individuals.

The Governor, indicating that the package simply went too far in forcing everyone off welfare assistance after they reached a 48-month lifetime limit, forced the Legislature’s hand and made passage of the SB 757 a must. Failure by the Legislature to act on the bill would have left the state without a welfare program, as the current program expires on January 1, 2006.

Leaders of the House and Senate GOP condemned the Governor’s veto, implying the issue would be revisited sometime in 2006.

The Legislature formally concluded 2005 by recessing Sine Die and is set to return on Wednesday, January 11, 2006.


GRANHOLM’S ECONOMIC PLAN DEFINED AGENDA IN 2005

5-Point Plan Already at Work Creating Jobs, Securing State's Future

As her third year in office comes to a close, Governor Jennifer M. Granholm said that the 5-point economic plan she detailed at the beginning of this year is already at work creating jobs and securing Michigan’s future.

“In an era of globalization, we must build upon our strengths and diversify our economy to be competitive,” said Granholm. “Since I first detailed my economic plan at the beginning of the year, we have taken great strides toward achieving that goal.”

Granholm highlighted the $2 billion job creation package that she signed into law in late November as the most significant step the state took this year to invest in its future. She also pointed to the 132 companies who announced Michigan expansions and investments of more than $3.7 billion this year as evidence that her plan is making Michigan an attractive place to do business.

“This year, we took critical steps to both put people back to work and to invest in our future,” Granholm said. “The state’s job training efforts are matching out of work citizens with available jobs, and we are accelerating critical infrastructure projects to create new jobs today, all while investing more than $2 billion in diversifying our economy and building a solid foundation for our future.”

Granholm outlined three critical areas of success in 2005:

1. Creating and protecting jobs by going anywhere and doing anything to attract and retain job providers.

• Granholm Administration efforts created or retained more than 93,000 jobs in 2005, bringing the total to more than 279,000 since 2003.

• In November, Granholm signed legislation creating the 21st Century Jobs for Michigan Fund to invest billions to diversify our economy and create good-paying jobs that won’t be outsourced.

• The Governor called for, and has signed, critical legislation to help protect manufacturing jobs by cutting business taxes by $600 million and creating incentives for manufacturers to locate jobs in Michigan.

• The Governor’s Jobs Today initiative is generating investment, creating jobs, and strengthening our quality of life. Already, the program has generated more than $2.7 billion in investment for road and bridge projects, environmental cleanup projects, upgrades to state buildings and community college and university campuses, affordable housing, upgrades to municipal sewer systems, and modernization of long term care facilities.

• The Governor’s MI Opportunity Partnership has already matched more than 17,000 unemployed workers with jobs through their innovative pledge drive.

2. Protecting our families by making sure that our children are safe where they live, play, and go to school, as well as protecting our families’ quality of life. Granholm called for, and has signed, legislation to keep violent and sexually explicit video games away from children, to strengthen the state’s sex offender registry, and to require background checks for employees in schools and child care facilities. Project S.A.F.E. Streets has removed more than 1,650 fugitives from our neighborhoods, and 32,000 people have prescription drug coverage thanks to the MIRx card. The Governor is also working to protect families from the skyrocketing cost of insurance through her group purchasing initiative and by calling for a 20 percent rate rollback on auto and homeowners’ insurance.

3. Educating our kids by creating rigorous new standards and raising investment to record highs. Funding for education in next year’s budget will be at record levels thanks to a $300 million increase in funding. The Governor has also called for a new rigorous high school curriculum, as recommended by the Cherry Commission on Higher Education and Economic Growth, to ensure that every student is prepared for higher education, which the State Board of Education recently adopted.

“With strong new safety measures protecting our children and efforts to make insurance affordable and health care accessible, we made great strides this year in protecting our quality of life as well as our economic future,” said Granholm.

The Governor also noted that while this year has seen strong economic progress, significant work remains to be done. She highlighted her call for a new Merit Scholarship award that would provide $4,000 to every child in Michigan who successfully completes two years of college, and the need to restructure Michigan’s business taxes.

“Michigan is on the right course to diversify our economy, create good paying jobs, and protect our quality of life,” said Granholm. “We must continue these efforts with all of our energy and focus.”

(Please note: This story was derived from a press release issued by the Governor on Thursday, December 22, 2005)

GOVERNOR SIGNS MACKINAC BRIDGE LEGISLATION

Governor Granholm signed into law bills clarifying the powers and duties of the State Mackinac Bridge Authority. Historically, the Authority was responsible for overseeing all aspects of the operation and maintenance of the 5-mile span connecting Michigan’s upper and lower peninsulas. However, governance of the bridge was challenged earlier in the year when Department of Transportation Director Gloria Jeff proposed reducing the Authority’s oversight responsibilities.

The proposal was met with stiff resistance from citizens and legislators alike. After a series of public and administrative hearings, the Legislature acted on this package of bills (SB 829, SB 830, HB 5339 and HB 5333) that reinforced and clarified the Authority’s role and responsibilities.

STATE SNOWMOBILE TRAILS INCREASED

Under a bill signed by Ms. Granholm, snowmobiles can now be operated on some limited access highways and freeways. SB 161 (PA 307), sponsored by Senator Jason Allen, empowers the Department of Natural Resources (DNR) with the authority to expand the type of mediums that can be designated as snowmobile trails.

Currently, snowmobiles can only be operated along the right of ways of roads that the DNR has designated as a snowmobile trail. The new law is viewed as an important tool to help spur increased tourism in the state.

GRAND RAPIDS TRANSIT BILL VETOED

Governor Granholm vetoed HB 4993, a bill that would have qualified the City of Grand Rapids for up to $14 million in state dollars for its’ public transit system.

In her veto message, Ms. Granholm indicated that the bill was bad for the rest of the state and for job development. Additionally, she indicated a desire for all areas to have an equal opportunity to compete for state mass transit funds.

The bill’s sponsor, Rep. Jerry Kooiman (R-Grand Rapids) blasted Ms. Granholm’s action.

PAADVISORY BRIEFS

Liquor Vapor Banned: The Governor signed into law a bill making the sale of alcoholic vapors illegal. HB 5067 (PA 320), sponsored by Representative Rick Jones, outlaws the sale, possession and use of alcoholic vapor devices in the state. State officials and anti-drinking advocates are concerned with a recent surge in the use of inhalation devices that utilize alcoholic vapors to produce a quicker high.

Representative Welcomes New Addition: Rep. McConico and his wife Jennifer welcomed a new addition to the family, with the birth of William Roosevelt McConico II. Baby McConico was born on Friday, December 23rd at 5:12 a.m. and weighed in at 6 pounds, 10 ounces. The couple has an older daughter, Kendall.

GUBERNATORIAL APPOINTMENTS

Wayne County Circuit Court

Megan Brennan of Grosse Pointe and Charlene Elder of Dearborn, were appointed to Wayne County's 3rd Circuit Court.

Ms. Brennan was an assistant attorney general in the Department’s labor division. She is a member of Incorporated Society of Irish-American Lawyers and the Michigan Supreme Court Historical Society. Ms. Brennan earned her law degree from Wayne State University and her bachelor's from Michigan State University. She will succeed Judge Susan Bieke Neilson who resigned this year.

Ms. Elder, a private practice attorney, has also served as Dearborn’s City Magistrate. She is a member of the Seeds of Peace, the Arab-American Anti-Discrimination Committee, and the Alliance for a Safer, Greater Detroit. Ms. Elder received her law degree from Detroit College of Law and her bachelor's from the University of Michigan. She will succeed Judge Edward Thomas who also resigned this year.

Both terms will expire January 2007.

Michigan Environmental Science Board

Philip Zazove, M.D. of Ann Arbor, medical director of MCare and professor of family medicine for the University of Michigan Medical School. Dr. Zazove is appointed to represent individuals with expertise in human medicine for a term expiring August 6, 2008. He succeeds Dr. Raymond Demers whose term has expired.

Bette J. Premo, B.S., M.S., Ph.D., of Amasa, CEO of White Water Associates, Inc. Dr. Premo is reappointed to represent individuals with expertise in ecological science for a term expiring August 6, 2008.

The Michigan Environmental Science Board is an independent, autonomous state agency established in 1992 to provide scientific and technical advice to the Governor on matters affecting the protection and management of environmental and natural resources. These appointments are not subject to disapproval.

Michigan Aquatic Nuisance Species Council

Jason C. Dinsmore of Haslett, resource policy specialist with Michigan United Conservation Clubs. Mr. Dinsmore is reappointed to represent the general public for a term expiring December 16, 2007.

Tim A. Eder of Chelsea, director of water resources with the National Wildlife Federation. Mr. Eder is reappointed to represent the general public for a term expiring December 16, 2007.

The Michigan Aquatic Nuisance Species Council advises the Office of the Great Lakes and the Departments of Environmental Quality, Natural Resources, Agriculture, and Transportation on the state’s efforts to prevent and control the introduction and spread of aquatic nuisance species within Michigan. It also coordinates research and monitoring activities pertaining to aquatic nuisance species, and makes revision and updates to Michigan’s Aquatic Nuisance Species State Management Plan, as necessary. These reappointments are not subject to disapproval.