Michigan Association of Public Employees

Legislative Consultants: Government Affairs- March 15, 2012

SNYDER PUSHES FOR CONSENT AGREEMENT IN MOTOWN
Gov. Rick Snyder this week rolled out his proposed financial consent agreement with the City of Detroit in an attempt to avoid appointing an Emergency Manager (EM).

The plan would create a powerful nine-member advisory board charged with overseeing financial operations, spending or debt restructuring.

Detroit Mayor Dave Bing would have EM powers but the powers to charge or terminate collective bargaining agreements would need the approval of the Financial Advisory Board.

Board members would need at least 10 years of experience with municipal finance transactions, labor matters or high-profile/bankruptcy environments. The board would be subject to the Open Meetings Act.

The proposal met with great disapproval by members of Detroit City Council as well as a majority of the House and Senate Democrat members of the Legislature.

The Detroit Financial Review Team is looking over the proposed consent agreement and must make a recommendation to the Governor by March 28.

Meanwhile, Rep. John Olumba (D-Detroit) announced sponsorship of what he called the Detroit Structured Reinvestment and Restructuring Omnibus (DSRRO) - a 50-bill package of "ideas" targeting social welfare reform, education reform, local government reform, commerce and labor reform, judiciary reform and senior citizen support. And he said there are more bill ideas on the way.

CHAMBERS EXCHANGE COERCED ABORTION/AUTISM BILLS
A three-bill package of legislation (SBs 0414,0415 and 0981) that would allow insurance carriers or third-party administrators to get reimbursements from the state for any autism related claims has passed the Senate with only some Republicans posting "no" votes.

The bills create a $50,000 cap and requires the Department of Licensing and Regulatory Affairs (LARA) to create and implement an autism coverage incentive program through which the carriers could seek reimbursement. The measures now go to the House.

Women would be prevented from being coerced into having abortions, provide for civil action by a woman against anyone who coerced her or tried to coerce her, and require an oral screening for coercion or domestic violence of a female seeking an abortion under a series of bills (BBs 4798,4799,5134,5181, and 5182) that passed the House but did not win Immediate Effect. The package now goes to the Senate.

GSRAs CAN'T UNIONIZE
Graduate student research assistants (GSRAs) at the University of Michigan (U-M) and other state universities cannot unionize.

Gov. Rick Snyder signed into law legislation (HB 4246) that prevents the organization of GSRAs before the Michigan Employment Relations Commission (MERC) was to meet to discuss organization efforts at the U-M.

The legislation was fast-tracked through the Republican-led House and Senate in the last three weeks.

UNIONS TAKE ON RTW-PLUS
In what appears to be a major counterattack against a plethora of laws enacted by the Republican-led Legislature and Gov. Rick Snyder, the Protect Our Jobs coalition (comprised of state labor unions) has launched a statewide petition drive to place before the voters a constitutional amendment that would ban Right to Work (RTW) legislation as well as a host of other anti-labor bills.

In addition to the RTW ban, the omnibus constitutional amendment would also ban more than 80 bills perceived to be anti-labor now pending in the Legislature - which could include the Emergency Manager (EM) law (P.A. 4) The Stand Up For Democracy coalition has turned 226,637 petition signatures into the Secretary of State to put the law on hold and place a ballot referendum in November.

Also included is SB 0971 that bans graduate student research employee unions. The House, on a 62-45 party-line vote last week approved the ban that would affect the University of Michigan and other state universities.

The constitutional amendment would also place the right to collective bargaining in the state -Constitution.

There are reports that labor unions are committed to spending $10-to-$15 million on signature collection and voter education to get the measure passed.

SNYDER CALLS FOR COMPREHENSIVE ATTACK ON CRIME
In a special message to the Legislature on Public Safety, Gov. Rick Snyder called for a comprehensive system of "smart justice" that recognizes the connection between enforcement, prevention and economic opportunity.

Many of the proposals are geared to the cities of Flint, Detroit, Saginaw and Pontiac which rank among the nation's top 10 most violent cities. Among them are a proposed "Secure Cities Partnership" agreement between the state and the four cities in which those cities would participate in local, state and federal law enforcement teams and receive some $46 million more in state resources - including the hiring of 180 more state troopers to beefup law enforcement in the four cities.

PANEL TAKES ON SCHOOL UNION DUES COLLECTION
The collection of union dues in public school districts would be banned under legislation (HB 4929) reported from the Senate Reforms, Restructuring and Reinventing Committee.

The measure, which was sent to the full Senate, would, in addition to banning public school districts from collection union dues for their unionized employees, would also require audits of public school unions and require those unions to file the audits with the state.

The measure appropriates $100,000 to cover the cost of the data collection thereby making the bill exempt from public referendum.

HOUSE MAKES COMMITTEE CHANGES
House Speaker Jase Bolger (R-Marshall) announced committee changes following the swearing in of new House members Reps. Joe Graves (R-Argentine Twp.) and Tim Greimel (D-Pontiac).

Rep. Lisa Posthumus Lyons (R-Alto) will chair the House Education Committee replacing Rep. Tom McMillan (R-Rochester Hills) who had been chairing the committee since the recall of Rep. Paul Scott last November.

Graves and Greimel were added to the House Health Policy Committee and to the House Military and Veterans Affairs and Homeland Security Committee.

Graves won the 51 st House District special election to fill the seat left open by recalled Scott. Greimel won the 29th House District special election to fill the seat left open by the departure of former Rep. Tim Melton who resigned.

LOTTERY WINNERS COULD BE LOSERS.
On a 26-10 vote, without debate the Senate has passed legislation (SBs 0711 and 0712) that would limit food stamps for lottery winners.

The measures would require the Department of Human Services (DHS) to apply an asset test for those applying for food stamps and require the Lottery Bureau to provide DHS the name of a prizewinner and amount of the prize to they can be cross-checked with those receiving state assistance. The bills now go to the House.

SENATE PASSES PRISON PRIVATIZATION
The Baldwin prison facility, which has been closed since 2005, could reopen as a private prison as long as there is at least 10-percent savings under legislation (SBs 0877 and 0878) passed by the Senate on a 21-17 vote.

Under the bill, any contract would be for an initial five year period with the option of two-year renewals. The GEO Group, then Wackenbut Corrections Corp., ran the facility from 1998 until 2005 when the contract was terminated by the state.

Similar legislation (HB 5174) passed the House last month.

July 13, 2011, the Michigan Senate voted 36 to 0 to reject the House version of the 80/20 – hard cap premium sharing bill (Senate Bill 007). This means that a conference committee composed of three from the Senate and three from the House will be formed. If the two groups are able to agree on a bill then that bill will be submitted to both the Houses for a vote. That vote is an up or down and it cannot be amended. We do not believe there will be any action taken on this bill before August 24, 2011

Ladies and Gentlemen,
First order of business is the call-in number for our Wednesday 11:00 a.m. call: 877-366-071 Passcode: 54949688#

ISSUES:
312 - The Senate has introduced SB 397, sponsored by Sen. Rick Jones w/ Richardville and Nofs co-sponsors. The Senate version is one we could live with. The House Government Operations Committee will take up HB 4522 tomorrow (Tuesday) at 9:00 a.m. I e-mailed the latest draft earlier. We will continue to be opposed to the House version. We will present the same written testimony we offered last committee hearing.

Pension Tax - SB 409, introduced by Sen. Geoff Hansen, adds the following exemption: RETIREMENT OR PENSION BENEFITS FROM EMPLOYMENT WITH A GOVERNMENTAL AGENCY THAT WAS NOT COVERED BY THE FEDERAL SOCIAL SECURITY ACT, CHAPTER 531. 49 STAT.620. This bill has been sent directly to the
Senate floor with no committee hearing. We expect action on the bill this week.

Health care cost-sharing - As we discussed, this issue is beginning to slow down as legislators come to the realization that this is complicated stuff. I will have more info as it is available but there is currently no planned committee hearings this week on this issue.

Retiree health care - House Bills 4701/4702 only apply to state employees but these bills call for a 4% salary contribution to retiree health care from those in the Defined Benefit plan and they move all state employees hired after 1997 into an HSA with the state making a one-time lump sum payment depending on how long you have been employed by the state.

Consolidation - The Senate will begin their hearings on the package of bills passed by the House dealing with consolidation starting Wednesday morning at 8:30. Sen. Jansen is going to try and combine the House bills with the Municipal Partnership bill he sponsored and that we have had success in amending to incorporate "impact" bargaining.

Gonna be another great week in Lansing.
Jim

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.