Politics & Government

LANSING, Mich. (AP) - The city of Detroit could continue charging a higher income tax rate than other Michigan cities under terms of legislation pending in the state House.

The bills that could come up for votes Wednesday also would affect utility user tax rates in Michigan's largest city.

Detroit likely needs changes in state law to keep some of its current tax rates because it is losing population. Census statistics show that the Motor City's population fell from 951,270 in 2000 to 713,777 last year.

Current state law allows higher personal income tax rates in cities with at least 750,000 people, affecting only Detroit. The law would have to change now that Detroit's population has dipped
below that 750,000 mark.

Detroit now charges an income tax rate of 2.5 percent for residents.

Powerless

Utility crews continue to work to restore electricity to thousands of Michigan homes and businesses that lost power after a wave of severe thunderstorms and tornados. The Associated Press reports:

CMS Energy Corp. says it may take until late Wednesday to have all power restored. It says Sunday's storms blacked out more than 115,000 of its customers, and about 42,000 remained without service Tuesday morning. DTE Energy Co. says about 30,000 of its customers lost power, and about 4,000 remained blacked out Tuesday morning.

The National Weather Service confirms that three funnel cloud touchdowns Sunday - one near Perry in Shiawassee County, one in the Three Rivers area in St. Joseph County and one in Coldwater in Branch County.No deaths or life-threatening injuries are reported.

Farm Bill

Michigan Senator Debbie Stabenow will hold the first field hearing on the 2012 Farm Bill later today. Stabenow is Chairwoman of the U.S. Senate Committee on Agriculture, Nutrition and Forestry. The hearing, titled, “Opportunities for Growth: Michigan and the 2012 Farm Bill,” will, as Stabenow’s office explains, “focus on the upcoming reauthorization of the Farm Bill (which determines agriculture policies every five years), examining agriculture as well as energy, conservation, rural development, research, forestry and nutrition policies that affect Michigan.” The hearing will be held at Michigan State University.

Countdown to Break

Leaders in the state Legislature say there is still a lot of work they would like to get done before lawmakers take a two-month summer break, Laura Weber reports. From Weber:

Democratic Senate Minority Leader Gretchen Whitmer says some of the issues she expects to see in the coming weeks include education reforms, redrawing Michigan’s political maps, and whether the state should build a second bridge between Detroit and Canada. The Republican-led Legislature sent Governor Rick Snyder the state spending plan last week. The governor is expected to veto some items within that budget and sign them into law next week.

Leaders in the state Legislature say there is still a lot of work they would like to get done before lawmakers take a two-month summer break.

Democratic Senate Minority Leader Gretchen Whitmer says some of the issues she expects to see in the coming weeks include education reforms, redrawing Michigan’s political maps, and whether the state should build a second bridge between Detroit and Canada.

“I expect most of that will be done before we break for the summer, yes. June ought to be a very busy time around here. Just because the budget bills get signed into law next week doesn’t mean we won’t be working very hard around here for the next month or so.”

The Republican-led Legislature sent Governor Rick Snyder the state spending plan last week. The governor is expected to veto some items within that budget and sign them into law next week.

The State Legislature completed work on a $46.5 billion state budget this week. It’s the quickest budget process since the 1960’s.

Michigan Radio’s Jenn White spoke with Susan Demas, political analyst for Michigan Information and Research Service, and Bill Ballenger, editor and publisher of Inside Michigan Politics.  You can hear the interview here:

Ballenger says  Governor Snyder had a clear plan coming into office, which helped get this budget passed so quickly. He also points to the strong Republican control.

These are the biggest margins of control since the years after World War II ended. This is how strong the majority is in the House and Senate with a Republican Governor. That is incredibly important.

Certain items in the tax structure and in this budget have gotten lots of attention from the public. Tax on pensions, the reduction of the Earned Income Tax Credit and the cuts to K-12 schools all have been on people’s minds.

The election of President Obama in 2008 made some believe racism in the United States had declined. That's according to a study from the University of Michigan. It measured perceptions of racism amongst Americans before the 2008 election and again in 2010.

Nicholas Valentino is a professor with U of M. He says it’s difficult to know how perceptions about racism are formed. But he thinks it might have to do with obstacles different racial groups face:

When Governor Rick Snyder took office in January, he said he wanted to have the state budget signed, sealed and delivered by the end of May.

Nobody in Lansing took that seriously. In fact, if the budget had in fact not been completed until July, that would still have been seen as a remarkable victory. 

After all, we’ve become accustomed to lawmakers frantically struggling on September 30th, the last day possible, to pass a budget before the state would have to shut down.

True, this year is different in that the governor’s party controls both houses of the legislature. But the reforms that Snyder was calling on them to make were so revolutionary it was hard to see how he could possibly win early passage.

Well, we were wrong. Rick Snyder may officially be a “non-politician.” But he is in fact one of the shrewdest political operatives I have ever seen. People have consistently underestimated him, beginning with the famous “nerd” commercial which launched his candidacy. Everybody scoffs at Snyder, and he smiles and keeps on winning. Primaries, general elections, legislative fights. The governor got virtually everything important he wanted here.

Where he did have to compromise - on the pension tax, for example - one got the feeling that he had planned on compromise all along. With a series of wrenching moves, he changed the way the system works. He seems to have eliminated the structural flaw that for years has caused automatic billion dollar deficits. He did so at a terrific cost, balancing the budget, and providing huge tax breaks for business by cutting aid to the poor, to children, and to education.

But he got what he wanted, and now we’ll see what happens. Make no mistake: This is entirely a Rick Snyder, Republican Party budget. It did not get a single Democratic vote. If this pays off, if the lowered business taxes do create new jobs, Snyder should be able to waltz to re-election, and the political culture of this state may be forever changed. But if it fails - if the promised new jobs don’t materialize, and people keep falling through the tattered safety net - well, it will be clear who to blame. It will take awhile to know exactly what’s happening. But what does the governor do next?