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KAROUB ASSOCIATES
Legislative Consultants: Government Affairs
January 19, 2012
SNYDER: "FINISH WHAT WE STARTED"
In his second State of the State address that contained no major new initiatives, Gov. Rick Snyder outlined his and the Republican-controlled Legislature's accomplishments in 2011 but also citing some unfinished business. In the still to do department, Snyder touched on the New International Trade Crossing (NITC) calling it a jobs issue not a bridge issue and asked the Legislature to hold hearings on soon to be introduced legislation to improve Michigan's transportation system. He also touched briefly on the contentious Emergency Manager issue saying the state stands ready to help financially distressed local jurisdiction get back on a sound economic footing.
Snyder did call on lawmakers to require insurers to cover "evidence-based" therapies for autism; passage of the MI Health Marketplace (health exchange); and Pure Michigan Fit Program, a nutrition education program, to address childhood obesity.
In the area of education, the Governor called on the Legislature to approve the creation of an Educational Achievement Authority, an initiative to tum around the lowest- performing schools and have it in effect by September and to complete work on dual enrollment and cyber learning legislation. He also called on the House to pass legislation already adopted by the Senate to give vulnerable adults special witness protection against abusers, allowing advocates to speak on behalf of the elderly when appropriate, and establishing a senior alert program. Snyder also committed to continuing discussions with lawmakers and local units of government regarding personal property tax (PPT) reform to preserve funding for communities since the tax is a significant part of their revenue. There is legislation pending that would phase out or eliminate the PPT. Snyder said he would deliver a special message on public safety in March that will focus on increasing law enforcement, improving the operation of the criminal justice system and ensuring the availability of jobs. He will also deliver a special message on energy and the environment in the fall to focus on the intersection job creation, affordability, science and sustainability. Snyder pledged to "maintain a sense of urgency and finish what we started." "Last year was focused on dramatic policy improvements," Snyder said. "This year will be tackling unaddressed challenges and making this year about good government. His remarks could be described as politically safe in an election year. He made no bold promises that couldn't be kept, did call on the Legislature to act on bills that would require politically tough votes for Republican lawmakers, and handed out a thank you or two to labor unions for their cooperation in negotiating new state employee contracts as well as partnering with the state in efforts to create immigration opportunities for individuals with advanced academic degrees or are entrepreneurs who can create jobs in Michigan. SENATE DEMS: FREE COLLEGE TUITION
In a yet to be released nine-page "Michigan 2020 Plan: A Passport to Prosperity," Senate Democrats are proposing the state pick up the entire four-year college tuition tab for Michigan students. The document also calls for a sunset on tax credits, extension of the sales tax to online sales and cut state contract expenses. The plan is estimated to cost $1.8 billion annually when fully funded. Senate Minority Leader Gretchen Whitmer (D- East Lansing) said there are no new taxes in the plan. The plan calls for the creation of a Sunset Commission that would be charged with reviewing all tax credits with a goal of achieving a 10-percent reduction - about $3.5 billion. Extension of the sales tax to online retailers would pull in an estimated $141.5 million this year. Reducing the cost of government contracts would save more than $1. 6 billion, according to Whitmer. Under the Michigan 2020 Plan, students would receive an annual grant of up to the median average of tuition at Michigan's 15 universities which is currently $9,975. The grant would vary based on how long a student had spent in the state's K -12 education system. House Democrats are reportedly still reviewing the plan and specific legislation is being drafted. HIGHLAND PARK SCHOOLS TO GET EM AND MONEY
Gov. Rick Snyder has declared the Highland Park School District is in a financial emergency and that an emergency manager (EM) is on the way. The State of Michigan will also advance the district its January state aid payment so the school district can meet its payroll this week. A 10-member review team determined there was a financial emergency in the area and the Governor concurred. The next step under P A 4 is an Emergency Manager. MICHIGAN JOB GROWTH IMPROVING ... BUT
Testifying at the recent Consensus Revenue Estimating Conference (CREC), University of Michigan economist George Fulton said 2011 was a year of solid job growth in Michigan and that the state is besting the U.S. economy in jobs. "Our view is that the Michigan economy is more than two years into a sustained recovery," Fulton said "with manufacturing leading the state's comeback." Fulton pointed out, however, that the job growth is on tract to be subdued, something he said is not typical of past recessions. He projected Michigan's unemployment rate in 2012 will be 9.4 percent and won't average below 9 percent until 2014. UNEMPLOYMENT RATE FALLS SLIGHTLY
Michigan's unemployment rate fell to 9.3 percent in December - a half of one percent below the November figure. It is the lowest rate since 2008 and nearly 2 percent below the 11.1 percent in December 2010. Michigan also added nearly 80,000 private-sector jobs last year - jobs that are higher paying than the national average. POLL: ROMNEY LEADS IN MICHIGAN
A recent MIRS tracking poll in the Michigan Republican presidential primary shows former Massachusetts governor Mitt Romney leading with 43 percent. However, for the fourth straight poll, there is a different candidate holding the second spot. This time it is from Pennsylvania U.S. Sen. Rick Santorum with 20 percent. Former U.S. House Speaker Newt Gingrich has dropped down to 15 percent. U.S. Rep. Ron Paul is at 14 percent, followed by Texas Gov. Rick Perry who has plunged from a high of38 percent in late August to just 2 percent. KOWAL DROPS CONGRESSIONAL BID
Sen. Mike Kowall (R -White Lake) has announced he has decided to "continue my work in the Michigan Senate and to suspend my candidacy for Congress in 2012." Kowall was challenging U.S. Rep. Thad McCotter (R-Livonia) for the GOP nomination in the 11 th Congressional District. VA W BACKS BERNSTEIN
Attorney Mark Bernstein has received the endorsement of the UAW Michigan Community Action Program (CAP) for the University of Michigan Board of Regents. Other unions are also in his comer. The UAW support of Bernstein likely dashes the hopes of former Lt. Gov. John Cherry who had also expressed an interest in running. |
