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State Legislature
10:54 am
Mon March 7, 2011

Pension tax alternatives on the table for legislators this week

Credit user lincolnblues / Flickr
Michigan Senators plan to discuss alternatives to a pension tax this week

Michigan legislators are planning to discuss alternatives to Governor Rick Snyder's budget proposals this week.

One hot button issue is Snyder's plan to place a tax on pensions. That tax is estimated to raise $900 million.

It would go a long way in eliminating the state's budget deficit which is estimated around $1.5 billion.

It's angered a lot of seniors, and lobbying groups, like the AARP, are putting pressure on legislators in Lansing to keep the tax exemption on pensions in place (the AARP plans to hold a rally in Lansing on March 15th).

Laura Weber, with the Michigan Public Radio Network reported that Michigan Senate Republicans are meeting early this week to try to come up with alternatives to the pension tax plan.

Weber spoke with Republican State Senator Tory Rocca who said his opposition to taxing pensions is simple:

"It’s a tax increase, and on top of that it’s a tax increase on senior citizens, and if you look at what their cost of living is and what their cost of living increases are, they tend to have a higher cost-of-living increase than other people because a lot of their cost-of-living is weighted toward health care, which does increase at a rate greater than the rate of inflation every year."

The Associated Press reports that State Senate Majority Leader Randy Richardville didn't say whether Snyder's pension tax plan had enough support to win approval.

But he did say that if legislators want to scrap the tax plan, they'll have to find money elsewhere. From the AP:

Richardville said that if the Senate opposes pieces of Snyder's proposal they will have to balance it out by cutting programs or finding revenues somewhere else within the budget.

That's $900 million more, which could mean more proposals out of Lansing for bigger cuts.

Commentary
10:54 am
Mon March 7, 2011

Shared Sacrifice?

If you want to see why this recession was different from others in recent history, spend a little time over at the Detroit Rescue Mission Ministries.

They’ve been seeing and feeding people they’ve never seen before, people who never imagined they’d need help.

The other day, I went to see Dr. Chad Audi, the mission’s President and CEO. Not only is their caseload flooded, he said, “more and more we are seeing the working homeless.”

These are people who have jobs, but still have no place to live. The Rescue Mission does what it can to get them into housing, but the need is far greater than it used to be -- and for many, the ability to give is less.

Incidentally, there are some who think of the mission as just a soup kitchen, possibly because of their mass appeals for help with Thanksgiving and Christmas dinners for the homeless. A soup kitchen was pretty much what it the mission was when it was founded a century ago. Founder David Stucky kept people alive with food from his own pantry during the worst of the Great Depression.

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State Legislature
6:45 am
Mon March 7, 2011

Senate ready to vote on Emergency Financial Manager bills

Credit Ifmuth / Flickr
Capitol Building, Lansing, MI

The state Senate is expected to vote this week on a proposal to give emergency financial managers more control when they take over the budgets of cities, townships or school districts.

State Senator Phil Pavlov says the purpose of the proposal is to help communities that are in financial trouble fix their problems before they have to be taken over by an emergency financial manager.

He says it sets warning signs so problems can be dealt with earlier. But he says if emergency managers do step in, they need to have total control of the situation.

“The emergency manager would be able to make some very difficult decisions, and we know that we have to have somebody with the power to do that under extreme situations."

Unions oppose the proposal because it would allow managers to throw out contracts.

Governor Rick Snyder asked the Legislature to approve the increased power for emergency financial managers during his State of the State speech.

election 2012
1:46 pm
Fri March 4, 2011

First republican announces candidacy against U.S. Senator Debbie Stabenow

Credit Jonathon Colman / Creative Commons
Hekman hopes to replace sitting U.S. Senator Debbie Stabenow in the U.S. Capitol building in 2012.

A former Kent County judge is the first republican to declare he’s running against U.S. Senator Debbie Stabenow in the 2012 election.

Randy Hekman has a number of titles. He’s pastor of Crossroads Bible Church in Grand Rapids, CEO of  research consulting firm Hekman Industries. He directed and helped start the Michigan Family Forum; a conservative non-profit group that tries to influence state policy. He served in the Navy, is an attorney and sat on the bench in Kent County probate court for 15 years.

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Commentary
11:12 am
Fri March 4, 2011

Primary Problem

If you haven’t been traumatized enough by this seemingly endless winter and the governor’s budget proposals, I’ve got something that may really give you nightmares.

It’s presidential election time again. Now, you may be saying wait a minute. Wasn’t the last congressional election only four months ago? Well, yes. But the presidential election is next year, and the candidates are already out campaigning, though none of them are calling it that. I am aware that people who don’t know each other yet will meet, fall in love, and have babies before we finally get around to voting a year from November.

But presidents have a far longer gestation period. And one sure sign that the election season is on is that the leaders of our two great political parties are once again attempting to screw up the Michigan primary.

They’ve gotten pretty good at this, and last time, the Democrats managed to make themselves the laughingstock of the nation, by holding a primary that was both ruled illegal and invalid and which did not have a guy named Barack Obama on the ballot. 

Early indications are that they’ve learned nothing from their mistakes. Here’s the problem. For many years, the election calendar has worked like this. Iowa goes first, with a set of caucuses which pick that state’s delegates in January. Then, New Hampshire follows with the nation’s first primary election.

Then a couple other small states follow in February, and after that, the other states can do whatever they want. This is a good system, because it allows candidates without much money to be seen and tested in small states where you don’t need millions.

Iowa and New Hampshire are also now swing states that switch sides frequently in November. But Michigan party leaders are jealous. They want to go first. Last time they broke party rules and held a January primary which was a farce.

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