Politics & Government

We’re getting a roundup of this week’s state politics with Susan Demas, Political Analyst for Michigan Information and Research Service, and Ken Sikkema, former Republican state Senate Majority Leader and Senior Policy Fellow at Public Sector Consultants.

This week Governor Snyder and GOP leaders announced they had come up with a tax deal. Demas says the biggest part of the deal is that they modified the pension tax, which was controversial.

If you are on a pension right now, if you are 67 and older you are not going to have to worry anymore, they have taken that off the table. If you’re younger than 67 you will be taxed more than you would have previously. But that means that instead of the almost $1 billion that was suppose to raised it will only raise $300 million. So to make up the difference we will see more budget cuts. And the income tax will stay at the 4.35% rate. It will not drop down to 4.25%.

 State House Republican leaders failed to muster enough votes to reverse health benefits for the live-in partners of state employees. The new policy will treat unmarried employees with live-in partners the same as married employees, and it will apply to people in same-sex relationships. A two-thirds majority vote isrequired to reverse  the contracts approved by the state Civil Service Commission.

GOP lawmakers said the Civil Service Commission decision undermines “traditional families” and violates the intent of a voter-approved amendment that bans same-sex marriage and civil unions in Michigan.

House Speaker Jase Bolger says he is looking for other avenues to block the new policy from taking effect October first.

"I’m going to continue to explore the legality of their decision. I believe they made an end run around the constitution. I’m not an attorney, but I’m going to consult with attorneys to see if something can be done about their illegal decision,” Bolger said.

Democrats say the Legislature should not rescind agreements collectively bargained with state employee unions.

State Attorney General Bill Schuette has also been asked for an opinion on whether state employee live-in partner benefits violates Michigan’s same-sex marriage ban.

The State Supreme Court began the investigation of Judge James after frequent charges of financial mismanagement by Inkster city officials.

The state supreme court is investigating Inkster’s chief judge. An audit found several unusual expenses were paid for with court money. Judge Sylvia James has been placed on paid administrative leave because she could not explain why court funds were used to pay for travel, clothing, and other expenses.  Retired judge Vladimir Washington will take Judge James’ place.

A few hundred Tea Party supporters held a rally at the state Capitol. American flags and bright yellow “Don’t Tread On Me” umbrellas peppered the crowd at the rainy gathering. The group appeared more concerned with actions by the federal government than with the Republican-controlled state government.

Gail Goniwicha is a banker from Royal Oak. She says she likes the job Governor Rick Snyder is doing.

"I was very happy that he’s trying to get the unions to pay and do their fair share. I as a person contribute to my retirement and my medical every month, it comes out of my paycheck. I don’t believe anybody gets a free ride in the United States,” Goniwacha said.

Republican state Attorney General Bill Schuette said he's pleased the group expects their elected officials to be frugal with taxpayers’ money:

"This is an important day because it’s part of the building blocks of a new Michigan. A new Michigan that has less taxes, less spending, less regulation, less government, and more freedom. And everybody here says let’s all work together to build a new Michigan that has more jobs, more paychecks and more freedom.” 

A few signs in the crowd called to stop the proposed bridge project between Detroit and Canada. Governor Snyder hopes to get that plan before lawmakers soon, but a House committee has omitted the proposed funding for the bridge from its version of the state budget.

President Obama came under fire yesterday for proposing that the richest Americans pay a higher proportion of the tax burden, especially with deficits soaring out of control.

Republicans, some of whom are running for president, said this would hurt the economy‘s ability to create jobs.

They said this was just one more wrong-headed left-wing proposal to solve economic problems by “soaking the rich.”

Well, that’s a battle that will be fought out on the national stage, likely throughout next year’s presidential campaign and beyond.

All but one of Michigan's 15 representatives in the U.S. House say they'll run for re-election in 2012, the Associated Press reports. From the AP:

...according to an Associated Press survey of members this week and despite a coming redistricting process that in some cases could vastly impact the physical makeup of their districts.

The lone holdout in the delegation is Republican Rep. Thaddeus McCotter of Livonia, who declined to provide a "yes" or "no" response to whether he would run again next year, saying only that he was focused on serving his constituents.

District boundaries will be redrawn based on U.S. Census counts, and Republicans who lead the state House and Senate control the process.

Michigan was the only state to lose population in the past decade and will drop one of its congressional seats.

A state House panel has voted to cut aid to the state's 15 public universities by about 15 percent. The Associated Press reports:

The Republican-led state House appropriations subcommittee dealing with higher education funding approved the plan by a party-line vote Wednesday. The measure next goes to the House Appropriations Committee.

The funding plan started by the House is similar to one proposed by Gov. Rick Snyder but it has a few differences.

The House plan calls for an across-the-board funding cut of 14 percent to each of the state's 15 public universities in the budget year starting Oct. 1. Another 1 percent would be weighted depending on how much state aid each university gets on a per-student basis.

Funding cuts could be higher if universities don't agree to certain tuition restraints.

It's been a busy couple days at the state Capitol as Governor Rick Snyder and Republican legislative leaders announced yesterday that they had agreed on a tentative tax deal. And, earlier today, a GOP-led Senate committee approved measures to require public employees in Michigan to pay at least 20 percent of their health insurance costs.

Governor Snyder has said he wants a completed state budget for the new fiscal year by May 31st. The state is currently facing a projected $1.5 billion deficit for the fiscal year that begins October 1st.

Michigan's Democratic Senator Debbie Stabeow has $3 million on hand for her 2012 re-election bid, according to the Associated Press. From the AP:

The Associated Press on Wednesday obtained a copy of the Stabenow for U.S. Senate committee's April quarterly report, which is due to the FEC by Friday.

In it, the committee says Stabenow raised nearly $1.2 million in the period that ran from Jan. 1 to March 31 and has $3 million on hand in the run for her third term in the Senate.

Stabenow was first elected to the U.S. Senate in 2000. The only Republican to declare candidacy for the seat so far is Randy Hekman, a former Kent County judge. He announced his candidacy last month.

Other possible GOP candidates for the Senate seat include former West Michigan Congressman Pete Hoekstra,  former Secretary of State Terri Lynn Land and former Chairman of the Michigan Republican Party Saul Anuzis.

Proposals to require public employees in Michigan to pay at least 20 percent of their health insurance costs have advanced in the state Legislature, the Associated Press reports. From the AP:

A Republican-led Senate committee approved the measures Wednesday on party-line votes. Republican Sen. Mark Jansen of Kent County's Gaines Township says the measures could come up for votes on the Senate floor later this month.

The legislation would affect employees with the state, local governments, public school districts, public universities and other public employers.

Republicans say the measures are needed to help public employers control costs. Democrats say health care costs should be bargained in contracts.

Local units of government could exempt themselves from the act by a two-thirds vote of its governing body.

 The legislation is Senate Bill 7 and Senate Joint Resolution C.