Legislative Report

September 2010

We survived the primaries! The large field of candidates has been whittled down to a reasonable number. Hopefully we can expect fewer political robocalls, glossy literature with inane statements written on them, and untimely knocks at the door by those poor souls seeking to influence our vote. We can better focus on the individuals running for each office and the ballot issues we will vote on November 2 as we go to the polls as well informed voters.

We should pay special attention to what the candidates for state offices espouse. We should not listen passively as they tell us what they will do, if elected. We should drill down to find out if they really know the issues they will face and whether they have that all important ingredient for a politician to possess: the political will and common sense to do what is proper and right and not what is politically expedient. We all should recall the election of four years ago and try to remember what the candidates said they would do, if elected, and what they actually did. What we should try to avoid as we elect our state’s leadership for the next four years is what former Governor Milliken calls “partisan ugliness.”

It is “partisan ugliness” that probably will prevent us from having a budget by October 1, the beginning of the new 2011 fiscal year. There are major deficits in the 2010 fiscal year budget and the 2011 fiscal year budget. So in the next month, the Governor and legislative leadership will have to find common ground to resolve a $220 million shortfall this fiscal year which ends September 30 and an almost half billion dollar shortfall in the 2011fiscal year which begins on October 1, 2010. Governor Granholm has announced her plan for resolving these problems. Of course, it will require the cooperation of the Republican controlled Senate and buy-in by the Democratic controlled House.

The current year’s deficit will be addressed by cuts in spending and using federal funds to cover some of the shortfall. Her plan also calls for use of a School Aid Fund surplus to finance community colleges thereby freeing up General Fund dollars to cover the deficit. For the 2011 fiscal year, she is proposing some interesting measures such as changing the escheats formula from a five year schedule to a three year schedule before unclaimed valuables held in escheats accrue to the state, changing the Liquor Control Commission distribution system from essentially a two firm distributor system for spirits to a one firm system, and instituting a tax amnesty program whereby taxpayers would be able to pay back taxes and penalties but would not have to pay interest on the delinquency. The Governor’s plan also includes some type of an early retirement system as embodied in SB 1226 which is currently stalled in the House. It is interesting to note that just as one thinks all the one-time measures to balance the budget have been exhausted, the Governor comes up with additional ones.

There was not much legislative activity going on in Lansing during the month of August due to the primary elections and exhausted politicians having to recuperate from a tiring campaign after the election. The following is an abbreviated report on several bills of utmost importance to us as retirees/seniors:

Pooling of public employees health care programs — HB 5345 calls for pooling the plan design, selection and administration for all public employees’ health care benefits in the state into one entity under the jurisdiction of the state. SERA will continue to keep a watchful eye on this bill which remains in its committee of origin, the Judiciary Committee. This is a bill which SERA strongly opposes.

Early retirement for state employees — SB 1226 is a bill the administration is planning on to help balance the 2011 budget by encouraging state employees to take early retirement. Thus far there has been no movement on this bill which has passed the Senate and has been before the House for some time now. The failure to pass this bill further complicates balancing the 2011 budget.

Miscellany

Candidates for major state offices — Both major political parties have held their post-primary state nominating conventions. The following are the major state candidates for each party:

Democratic   Republican
Virg Bernero Governor Rick Snyder
Brenda Lawrence Lt. Governor Brian Calley
David Leyton Attorney General Bill Schuette
Jocelyn Benson Secretary of State Ruth Johnson
Denise Langford Morris
Alton Thomas Davis
Supreme Court Justice Robert Young Jr.
Mary Beth Kelly

The State Board of Canvassers approves ballot proposal language — The following language has been approved by the Board of Canvassers for two proposals which will appear on the November 2 ballot:

Proposal 2010 — 1:

A PROPOSAL TO CONVENE A CONSTITUTIONAL CONVENTION FOR THE PURPOSE OF A GENERAL REVISION OF THE STATE CONSTITUTION

Shall a convention of elected delegates be convened in 2011 to draft a general revision of the State Constitution for presentation to the state’s voters for their approval or rejection?

Proposal 2010 — 2:

A PROPOSAL TO AMEND THE STATE CONSTITUTION TO PROHIBIT CERTAIN FELONS FROM HOLDING ELECTIVE OFFICE AND SPECIFIED TYPES OF PUBLIC EMPLOYMENT

The proposed constitutional amendment would:

Make a person ineligible for election or appointment to any state or local elective office or to hold a position in public employment in this state that is policy-making or has discretionary authority over public assets, if

  • within the preceding 20 years, the person was convicted of a felony involving dishonesty, deceit, fraud, or breach of the public trust; and
  • the conviction was related to the person’s official capacity while holding any elective office or position of employment in local, state or federal government

Require the State Legislature to enact laws to implement the prohibition. Should this proposal be adopted?

Tea Party candidates not allowed on ballot — The four member State Board of Canvassers split 2 -2 along party lines which effectively denied candidates running on the Tea Party banner to have their names placed on ballots. The Democrats supported the attempt to get ballot recognition of the Tea Party candidates after they presented the required number of signatures. The two Republicans opposed the effort primarily on technical grounds. The Tea Party appealed to the State Court of Appeals which also refused to grant the Tea Party candidates ballot recognition. The Republicans have claimed trickery and fraud by Democrats for the emergence of Tea Party Candidates and their attempt to get recognition as a political party. The Court of Appeals decision is being appealed to the Supreme Court by those seeking the Tea Party recognition/designation on the ballot.

Physicians Health Plan to administer high risk health insurance pool — As the result of the legislature not taking action quickly enough (by appropriating federal dollars), the federal government intervened and contracted with Physicians Health Plan (PHP) to manage and administer the insurance program for individuals who have a pre-existing condition and may have been denied health care coverage. Had the legislature acted sooner, the plan would have been split between PHP and Priority Health under a state awarded contract. Realizing the dilemma faced by the state and federal government which can only contract with one entity, Priority Health withdrew from the competition for the contract. This high risk pool will exist until 2014 when the federal health care legislation requires all insurance companies to accept individuals with preexisting conditions

Senate continues to reject certain gubernatorial appointees — Having established a policy that they will not approve certain appointments made by the governor requiring their advice and consent, the Senate continues to reject any appointment that takes effect within 60 days or less prior to the November 2 election. It is the Senate leaderships’ position that these appointments, some of which are for a duration of six to eight years and some which are not effective until January 1, 2011, should be left for the incoming governor to make. Senate Majority Leader Mike Bishop has talked to Rick Snyder about specific individuals who have been nominated and plans to do the same with Virg Bernero to determine if they can agree on individual nominees who are acceptable to both candidates.

People in the News

Elizabeth Weaver has resigned as a Michigan Supreme Court justice after serving two terms as a justice. Ms. Weaver was nominated by the Republican Party in previous elections, but recently has become alienated from her fellow Republican nominated justices. She was planning on running as an independent, but suddenly resigned after making a deal with the Governor to appoint someone from the upper part of the state as her replacement. The Governor made the appointment of Alton Thomas Davis of Grayling as her replacement at the same press event announcing Ms. Weaver’s resignation. Mr. Davis will carry the designation of “incumbent” on the November 2 ballot as he seeks election to the full term of the position to which he was just appointed.

Representative Tim Moore who previously had indicated he would be leaving the legislature at the end of August has done so. He resigned to accept the job of principal of an elementary school in his hometown of Farwell.

Editor’s note: Alvin Whitfield is former President of the Lansing SERA Chapter and former Chairperson of the Michigan SERA Council and current Legislative Representative for both the Council and the Lansing Chapter. He may be contacted at 1241 Runaway Bay Drive, C-3, Lansing, Michigan 48917; phone 517/703-9666; e-mail: alwhit@worldnet.att.net.

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