Politics & Government

Detroit’s two pension boards would be required to post all of their spending online, under a bill before the state House.

The legislation is a response to stories published in 2009 about board members’ travel expenses. The boards’ trustees, their attorneys and staff racked up bills totaling hundreds of thousands of dollars for trips to places like Singapore, Hong Kong and Dubai.

State Representative Tom McMillin in the bill’s sponsor:

 Tomorrow, Governor Rick Snyder will present to the legislature his proposed budget for the next fiscal year. The state is currently running a deficit of close to two billion dollars.

The governor also wants to make changes to the business tax system that would further add to that deficit. Keep in mind that by law, a balanced budget has to be enacted by September 30th.

Dale Kildee won his first term in the United States Congress in 1976. Next year, he plans to run again. The Associated Press reports Kildee's spokesman says the octogenarian politician has always planned to run for another term. 

Each Wednesday, Morning Edition Host Christina Shockley sits down with Michigan Radio’s Senior Political Analyst Jack Lessenberry to get an update on state politics. This week, the focus is on Governor Snyder’s budget proposal and what cuts he might suggest.  

The details of the United States and Michigan budget cuts are beginning to leak out.  The United States Congress is trying to come together on a plan to cut a huge amount of spending. Governor Rick Snyder will be delivering his budget proposal for next year on Thursday.

One area of debate is how the Environmental Protection Agency can regulate greenhouse gas emissions. A new statewide poll shows voters in Michigan would support these rules, but Republicans in the US Congress are moving against them this week.

Al Quinlan conducted the poll funded by the Energy Foundation, a pro-renewable energy group.

"We asked people simply whether they favor or oppose the EPA regulating these emissions the results were 64% favor, 27% oppose. And there was broad based support across partisan lines."

Michigan Congressman Fred Upton is a leading opponent of EPA regulation of greenhouse gasses.

Sarah Alvarez-Michigan Radio Newsroom

Report: "Fireworks" over part of Snyder's Budget Plan

Chris Christoff, the Lansing Bureau Chief for the Detroit Free Press, says Governor Snyder plans to "eliminate Michigan's generous income tax exemptions for retiree pensions and IRA withdrawals as part of his budget plan" to be released tomorrow. Christoff wrote "a source familiar with the plan" says doing away with the tax exemption could generate more than $1 billion in revenue. From the Free Press:

Many expect Gov. Rick Snyder to set off political fireworks Thursday when he unveils a budget and tax revision plan he says will be simple, fair and efficient...Perhaps nothing will boom louder than a plan to tax pensions and other retirement income the same as all other income -- at 4.35%.

A Snyder spokesperson would not comment on the "speculation." Doug Pratt, a spokesman for the Michigan Education Association, told the Freep that Snyder will "will hear from a lot of retired employees in this state that are not going to be happy with that one." And an aide to republican State Senator Jack Brandenburg said the plan is "a nonstarter."

The Associated Press writes that Michigan's benefits for retirees are one of the most generous in the country:

The Washington-based Center for Budget and Policy Priorities says Michigan's benefits are twice as generous as those of second-place Kentucky. A retired couple in Michigan can have more than $100,000 of income without having to pay any state income tax...

Political pressure in the past has made it hard to reduce senior tax breaks to help the state's bottom line, even as Michigan steadily loses more to the tax breaks as the number of older taxpayers grows.

Governor Snyder will release his budget plan tomorrow.

Prison staff fear privatization is coming

Almost everything in the state is on the chopping block. There has been talk of privatizing parts of the prison system as a way to save money. The Associated Press says the Governor's budget plan will look at cutting around 10 to 20% out of the state's corrections budget.

State workers in prisons fear that will mean privitization. The Associated Press spoke with United Auto Workers Local 6000 spokesman Ray Holman:

The Prison support staff fear the governor may outsource their jobs to private companies to save money.

"If you're cutting $400 million ... you're going to have to go after something," said Holman, whose union represents tens of thousands of state workers, including prison support staff. "We stand to take a substantial hit." 

Former GM exec may return as advisor

The Detroit News says former GM executive Bob Lutz may return to the company as an advisor. From the Detroit News:

General Motors Co. has been in talks with former product chief Robert Lutz about bringing him back as a paid consultant, The Detroit News has learned.

The details were unclear Tuesday, but the 79-year-old Lutz continues to have a close relationship with GM, and the two have been in discussions about formalizing an advisory role, according to sources familiar with the discussions.

Lutz was known as a plain speaking executive at GM who was skeptical of the commercial appeal of electric cars and hybrids. As the Guardian reported when he retired in 2010, Lutz once described global warming "as a total crock of shit."

The Guardian writes that Lutz "predicted the internal combustion engine would reign supreme for at least a further decade, and that it would be "years and years" before alternatives make up even a tenth of the market."