Rick Pluta

Governor Rick Snyder continues to negotiate with lawmakers to try to get his budget proposal through the Senate.

Parts of his proposal are facing a tough sell, even among his fellow Republicans.

The Snyder administration changed its position on eliminating the earned income credit, and now says families should still be able to claim it, but at a reduced rate.

Families eligible for the state credit in 2009 claimed an average of $432 per household. The Michigan League for Human Services says the reduced credit will still allow eligible families to take $140 off their 2011 tax bill, or add part of it to their return.

A state Senate committee opens hearings tomorrow on Governor Rick Snyder’s tax reform proposals.

Altogether, two dozen tax breaks could disappear if the governor’s plan is adopted.

Ending the tax exemption for pensions has gotten a lot of attention, but the plan would also largely eliminate the use of tax breaks that encourage the re-use of old factories and historic buildings.

Governor Rick Snyder enters a critical week as he tries to sell his tax and budget plans to state lawmakers. The governor is still trying to build support from his fellow Republicans in the Legislature. There’s wide agreement on scrapping the Michigan Business Tax and switching to a corporate profits tax while giving most businesses a tax cut. But even a lot of Republicans are balking at a new tax on pensions as well as ending nearly two dozen tax breaks.

On the budget side, many lawmakers continue to push back against the size of cuts the governor’s suggested for to K-through-12 schools. But the governor says the work will get done on time:

“I just view it as part of the process. We did our proposal.  We get different feedback from the House and the Senate. There’s differing views in both of those houses, and we’re going to work through it and we’re on a path to get it done by May 31st.”

That’s the deadline the governor has set for finishing work on the budget and tax reforms.

A state Senate committee is expected to hold hearings and vote on the governor’s tax plan this week -- with a Senate floor vote as soon as Thursday.

The new national employment report shows the economy is churning out new jobs as people return to the workforce to compete for them.

Governor Rick Snyder says that’s good for Michigan as he tries to convince state lawmakers to adopt his jobs strategy.

Private sector employment is considered a strong indicator of the strength of the economy and, for the first time in a long time, private companies are hiring at a faster-than-expected rate.

Governor Snyder says that’s good news.

Attorney General Bill Schuette has filed a lawsuit challenging the state Civil Service Commission's authority to approve contracts that allow benefit plans to cover the live-in partners of unmarried state employees.

The lawsuit says the commission exceeded its authority under the state constitution.

The contracts extend benefits to unrelated adults in a household -- that includes same-sex partners -- as well as their dependents

The Republican controlled state Senate has approved a measure to rein in the authority of state regulators to enact environmental protection rules.

The bill says Michigan’s environmental protection rules cannot be stricter than federal rules unless a law is passed to allow it.

Republican state Sen. John Proos says environmental policy should reflect the fact that Michigan competes with other states for jobs.

"We can’t operate in a vacuum in Michigan," said Pross. "If it’s more difficult to do business in Michigan than it is in Indiana, businesses and industries who hire Michigan families could just as soon choose the less-expensive option or the more-efficient option. Every day, other states benchmark against us. We should do the same to make sure we put ourselves in the best position to compete."

Republicans and some Democrats have long complained that Michigan’s environmental rules and the people who enforce them are too zealous.

Democrats, like State Senator Rebekah Warren, say the measure would make it harder for experts to address environmental crises that may be unique to the Great Lakes region.

"Federal standards to protect water quality, in particular, are designed to be the floor below which states are not allowed to drop," said Warren. "They are not written by people that feel the special stewardship like we do here in Michigan over one of the world’s most-important freshwater resources."

Opponents of the bill say it would make it more difficult to respond to an environmental crisis and it would make the process of protecting air and water more political.

One Democrat crossed over to join the Republican majority to approve the measure. The bill now goes to the state House.

Update 5:14 p.m.

Governor Rick Snyder’s tax overhaul plan began working its way through the Legislature today as it cleared the state House by a mostly party-line vote.

The Republican tax reform bill would replace the complex and unpopular Michigan Business Tax with a corporate profits tax.

Two-thirds of Michigan businesses would not have to pay the tax.

Part of the revenue lost to the state would be made up by eliminating dozens of tax breaks.

Many of them go to businesses and charities. Also gone would be earned income credit for working poor families and the income tax exemption for most seniors on pensions.

“This is a turnaround moment for Michigan,” said Republican House Speaker Jase Bolger. “Today’s winners are our local small business owners. Today’s winners are the unemployed because now those small business owners can create jobs.”

Democrats say it’s not fair to make working families and seniors make up the difference while most businesses pay less. Democratic state Representative Barb Byrum says it's not a fair trade.

“This legislation is not a shared sacrifice and should not be adopted. Today is just another day another day to give an 82% tax break to wealthy, corporate special interests. Another day to take from our children, our seniors, and our working poor."

The measure now goes to the Republican-controlled state Senate.

3:41 p.m.

Governor Rick Snyder’s tax overhaul plan has begun its march through the Legislature.

It won the approval of the state House by a mostly party-line vote.

The measure would scrap the complicated and unpopular Michigan Business Tax.

It would be replaced by a corporate income tax that would not be paid by two-thirds of the state’s businesses.

Part of that lost revenue would be made up by ending many tax breaks for businesses, working poor families, and seniors on pensions.

Governor Rick Snyder was in Detroit today to outline his expansive education reform plans. The governor says Michigan does not have to spend more money to improve the performance of a failing education system.

The governor say it’s largely a matter of reallocating resources to reward success and to craft a system that reflects Michigan’s new economic realities.

Governor Snyder says his education plan would refocus schools on student advancement and performance, empower teachers and hold them responsible, and offer parents more options when schools are failing.

Governor Rick Snyder says he may want to bank the money from an unexpected improvement in tax collections – if the windfall exists.

Early revenue projections suggest Michigan may collect $500 million more than anticipated.

But Governor Snyder says he’s not ready to count that money as part of his budget plans.

He says the state may be better off putting it into savings.

“I’m bullish that we’re on a positive economic path, but to say we’re going to see just an upward curve without a few bumps, I would be careful about speculating that given the challenge of gasoline prices and such.”

Democrats want to use any windfall to scale back proposed cuts to schools. The next official revenue estimate comes in mid-May.

The House and Senate are continuing to work this week on budget proposals with an eye toward finishing before June first.

State Police officials told a legislative committee that devices designed to pull data from cell phones are only used to investigate the most-serious crimes and are not part of routine traffic stops.

State Police officials say the data extraction devices are rarely used – and never without a search warrant or the consent of a phone’s owner.

State Police Inspector Greg Zarotney says the devices are used when certain crimes are committed:

"Typically, and I would say overwhelmingly, they are used in high-level crimes to investigate child exploitation, homicide cases, high-level drug cases, those types of situations where we’ve obtained the cell phone either through a search warrant or their consent, and we’re doing some type of data extraction to build our case,” sais Zarotney.

But State Police officials do not know how often the devices have been used.

Representative Tom McMillan chairs the House Oversight Committee, and he says the possibilities created by new technology also pose new challenges to privacy.

"As technology evolves, we may need to think about how to assure the public of a negative – what we’re not doing," said McMillan, "I don’t know what that’s going to look like, how possible it is, but I do think that we ought to broach that and start looking at that."

McMillan might hold future hearings on electronic privacy and protecting people against overly intrusive searches of phones and personal organizers.

The American Civil Liberties Union of Michigan is worried state police may be extracting personal data from cell phones illegally; a concern state police say is unfounded.

The Michigan State Police came under criticism for attempting to charge the American Civil Liberties Union hundreds of thousands of dollars for access to records on how the devices are used.

Zarotney says that’s because authorities don’t keep specific records on the devices, and gathering the information would have required inspecting thousands of police reports.

People and businesses that owe back taxes to the state of Michigan have until June 30th to pay up without paying fines and penalties.

There are potentially hundreds of thousands of people and businesses that owe the state unpaid taxes.

The state hopes to net $90 million dollars from the tax amnesty program. 

State Treasurer Andy Dillon says if you owe, now is a good time to pay:

"It doesn’t matter why you didn't pay your taxes – the penalties can be forgiven. And the penalties can be quite stiff. It depends on the tax that you’re talking about, but it can be as much as 25% of the liability that can be forgiven, and the sooner you pay it off, the sooner you stop paying interest on that obligation."

This is the third time since the 1980s the state’s offered amnesty to people and businesses with unpaid back taxes.

The program requires payment of all back taxes plus interest.

The amnesty program was approved by the Legislature last year to find some new revenue to help balance the budget.

The Michigan Tax Amnesty website declares "all excuses welcome."

Here's the program's TV spot:

Governor Rick Snyder offered some hints as to what his soon-to-be unveiled education reform plan will look like.

The governor addressed an education conference in East Lansing today.

Governor Snyder says student test scores are both “startling and scary,” and that Michigan is falling behind the country and the world in preparing young people for life after school:

“We need to do better and that’s something we need to focus on and we will,” said Snyder.

The governor says he wants to relax school regulations s to give teachers and principals more freedom and responsibility over educational decisions. And then he says the state will measure what happens:

“We need to put much more focus on proficiency, on growth, on measurements and results than we have had in the past," he said. "It’s about really delivering results for these kids. The whole system has to be geared to say, 'how do we make sure each and every child in our system gets a good year’s education each and every year?' Think about all the great talent, all the great resources that we have in our system, yet we’re not achieving the results that we have to achieve."

The governor also says he wants to do more to keep gifted teachers in classrooms instead of promoting them into administrative positions.

The governor says he envisions an education system that starts with pre-school and continues past college.

The governor will roll out his education reform agenda on Wednesday in Detroit.

It appears Michigan may be in for a revenue windfall of about $500 million dollars more than  it was expected to take  in this year.

The state Senate Democratic leader says Governor Rick Snyder and the Legislature should use that money to avert cuts to schools.

The state Senate Democratic leader is calling for protections in the Michigan Constitution against using the School Aid Fund for any purpose other than K-through-12 education.

Senate Minority Leader Gretchen Whitmer says she’s looking for any way she can to avert school aid cuts as high as $470 per student.

Governor Rick Snyder says he is opposed to provisions in Republican budget plans that would restrict how money is spent on embryonic stem cell research at public universities.

Republican lawmakers are renewing efforts to enact additional rules surrounding the voter-approved amendment that allows public funds to be used for the research.

Voters approved the amendment to the state constitution in 2008.

Since then, Democrats have blocked efforts by opponents of embryonic stem cell research to demand reports or enact additional restrictions on  it, but now Republicans are in charge in the Legislature.

Governor Snyder is a Republican who supports the voter-approved amendment and stem cell research.

The governor says he wishes Republican lawmakers would leave stem cell research out of the debates on university spending:

"I think we need to focus on higher education, not stem cells. We passed a constitutional amendment on that topic some time ago and we need to follow through on what our voters said."

The governor has the authority to veto budget line items.

The governor and the Legislature are continuing to negotiate on the budget with the goal of having it wrapped up by June first.