It's finally come. The highly debated, much anticipated (or dreaded, depending on whom you are) first snow of the season. With great joy, I surveyed the deck yesterday and admired the gentle dusting of beautiful shimmering crystals of frozen water.
This is Michigan; this statement shouldn't surprise the readers of this diary. Michigan means, happily, snow in the winter. Snow gives hours of play to the young, moments of deep dread to the driver, and uneasy thoughts to the budgeting staff of any municipality. Have we saved enough in the budget to take care of the roads? Too much?
"Michigan Gov. Jennifer Granholm remains optimistic that some Senate Republicans will support more money for schools, but GOP Senate Majority Leader Mike Bishop said Tuesday he won't alter the Senate's only proposal for raising some extra cash.
"We sent revenues over to the House that we believe are far more palatable and far more sustainable than what she's proposed," Bishop told reporters. "If this governor wants revenue, she's going to have to take what she gets."
And just what is that proposal for raising cash? Delay tax credit increases for the poor.
The GOP-led Senate has passed a bill that would eliminate a scheduled increase in a tax credit for low-income workers and use the money saved to begin rolling back a business tax surcharge and add $100 million to the school aid budget.
Another wonderful example of compassionate conservatism: kick the working poor. That's Mike Bishop's way or no way.
With the upcoming new headquarters building costing millions of dollars, and a new trooper recruit school costing taxpayers 10 million dollars, The department needs to seriously consider a much cheaper alternative to bolster dwindling police ranks.
The Committee for the Certification of Michigan State Police Motor Carrier Officers consists of a group of concerned citizens attempting to correct an organizational problem within the Michigan Department of State Police (MSP). With the help of Representative Neal Nitz a bill, HB4321, has been introduced in the House and is currently being reviewed by the House Judiciary Committee. The purpose of the committee is to encourage passage of this bill which would correct the described problem and result in the immediate placement of approximately 150 certified police officers on the road at a fraction of the cost of a Trooper recruit school.
Just a quick reminder; this is day 2 of week 3 of your 30 day continuation budget. Sub only Gongwer reports, "officials are not expecting legislative action on budget bills this week."
If you've been following our posts on MESSA "reform", you know that the Senate and House Fiscal Agencies have concluded that the legislation does not save money. In an op-ed for The Daily Press last Saturday, Bill Milligan sets the record straight on the myths surrounding MESSA, and shares some of his own experiences with health care:
In 2003 the new carrier (not MESSA) we chose jacked up rates 40 percent overnight. Again, our ad-hoc team scrambled and solicited new bids. We brought MESSA to the campus out of that process, and I can tell you that in that initial meeting with the MESSA rep, nobody in our MEA union was in a good mood. We were tired of the skyrocketing costs, co-pays annually being added to our workers, and yearly switching. We viewed MESSA with jaded skepticism.
MESSA proved itself to us - and I mean our union members and our nonunion members: staff, administration, and board - to be the most stable and cost-effective insurance when comparing apples to apples with other carriers.
...
So what was this bill all about, then? The big annoyance that certain political entities have with MESSA is that it serves and answers to all its members - not just the elite ruling class of a school (human resource director and top administration). Thus the real problem with MESSA and thus the MEA is an issue of control and who has it. That is the issue and that is the rub.
The MEA issued a special alert yesterday to answer some frequently asked questions for its members. The alert addressed the following:
* SB 418, which attacks public employees' health insurance without saving the state ANY money; * SB 546 and 547, which slash retirement benefits for new school employees starting next summer, making it harder to recruit and retain the best and brightest employees for Michigan's students; and * SB 549, which requires intermediate school districts (ISDs) to set common spring and winter breaks without any consultation with parents or school employees.
In addition to the FAQs about the reforms(which are over the fold), the alert also addressed one other question:
"How will we hold accountable the leaders in Lansing who betrayed us on Monday?"
The MEA will be issuing information on that in the next few days.
MIRS News just reported a tidbit that will make Michigan Republicans cheer: The combined sales and services tax has moved Michigan from "slightly below" the national average to "slightly above", in terms of taxes.
As you know, Republicans like to complain about how Governor Granholm's taxes are the only reason the auto manufacturers left Michigan in the 90's. Or something like that. (Don't look for their ramblings to make sense) But they especially like to say that Michigan is over-taxed, which has not been true. It's still not true, but now, at least they can say Michigan is "slightly above" the national average in taxes.
"In terms of our personal income, $1.35 billion is about four-tenths of one percent," Kleine said. "It's just a little over 11 percent (of personal income that is being paid to cover state and local taxes)."
This will bring Republicans great joy. It reinforces their self-righteous hatred of the Governor. "See, we told you she was awful. Wah. Wah."
(I especially enjoy the Republicans who complain about how the new income tax hurts the low wage earners the most, but then they refuse to support a progressive income tax)
Me, I'm cool with the new taxes. But, I'm not a cry-baby Republican who thinks I can save the world by keeping my chump change in my pocket.
Iris K. Salters, Preside of the MEA, issued a statement today on the "reforms" that were passed along with the new revenues last night.
"Our political leaders in Lansing have made a devastating mistake in balancing the state budget on the backs of school employees. SB 418 will harm Michigan's public employees without helping the state budget at all, while the slashes to school employee retirement will make it even more difficult to recruit and retain the best and brightest employees for Michigan's students.
We've said all along, this reform costs Michigan money, and it doesn't save money at the local level. But like we pointed out earlier, it was political cover for the Republicans. They couldn't allow a vote on revenues without being able to say they got something out of it.
Salters also mentions the cherry-picking aspect:
"The health insurance pools that will be set up under SB 418 will be cherry-picked to death because of the politically motivated claims data reporting requirements. This bill - which never had any proof of cost savings attached to it - will end up costing many school districts more money. Pools that are already offering high-quality, low-cost health insurance will end up with higher rates when low-ball insurers swoop in to poach low-cost, healthy groups.
In other words, risk pools will get smaller, and low cost pools will have to raise prices.
The Michigan League for Human Services today issued a statement thanking Michigan lawmakers, calling the new budget "a step in the right direction":
The League applauds the lawmakers who cast courageous votes, Gov. Jennifer Granholm for supporting higher taxes and those citizens who took the time to express their support of a budget that keeps vital services and protects vulnerable citizens.
The League expressed its concern for low wage earners, who will be disproportionately hurt by the increase in Michigan's flat income tax. The League also mentioned that programs such as day-care subsidies for low-income parents may still be considered for budget cuts.
I mentioned the service tax in my last post, and that it would generate $613.8 million in 2008, and $751 million per year afterwards. As promised, here is the list of services affected by this legislation, and the expected revenue:
- Business Service Centers ($9.5 million)
- Carpet/Upholstery ($5.2 million)
- Couriers and Messengers ($3.1 million)
- Document Prep Services ($4.8 million)
- Investigation Guard/Armored Car ($27.0 million)
- Janitorial ($43.8 million)
- Investment Advice ($16.8 million)
- Landscaping ($40.5 million)
- Mini-warehouse and self-storage ($3.9 million)
- Transit and Ground Passenger, limo and cab ($10.5 million)
- Office Administration ($79.2 million)
- Other Personal Services ($48.2 million)
- Other Travel and Reservation ($6.7 million)
- Personal care, no haircuts ($14.1 million)
- Scenic Transportation ($14.2 million)
- Security System Services ($14.2 million)
- Service Contracts ($23.5 million)
- Skiing ($2.2 million)
- Interior Design ($27.8 million)
- Tour operators ($2.6 million)
- Consulting ($188.2 million)
- Packaging and labeling services ($20.8 million)
- Warehousing and storage ($21.0 million)
Ok. Not thrilled about the MESSA "reform", as many of you know. But, it's the price Michigan paid for having a Republican Senate.
So here are some of the details of the 3 part deal that ended the 4 hour Michigan shutdown:
The income tax: First, we have a brand new income tax rate of 4.35%. This is an increase from 3.9%. It was passed in the House, 57-52, with Republicans Ed Gaffney and Chris Ward crossing over to vote with Democrats. Democrats Marty Griffin, Mike Simpson, and Lisa Wojno voted no.
In the Senate, the income tax was passed 19-19, with Lt Gov John Cherry casting the tie-breaking vote to make it 20-19. Cross-over votes were Republicans Patty Birkholz, Tom George, Ron Jelinek, and Gerald Van Woerkom, who voted YES. Democrats Glenn Anderson and Dennis Olshove voted NO.
Under this legislation, the income tax rolls back to 3.95% in 2011, and then to 3.9% in 2015. The income tax is expected to raise $765 million for the state in 2008.
The sales/service tax: The second piece is the bill that expands the 6% sales tax to a number of services, listed in another post. This will take effect December 1.
In the House, this passed 56-53. Only the Democrats voted in favor of this. Two Democrats voted against it: Marc Corriveau and Kate Ebli.
In the Senate, Democrat Glenn Anderson voted NO. Republicans Valde Garcia and Ron Jelinek voted YES, bringing the total to 19-19. John Cherry was once again the tie-breaker.
The services tax is expected to produce $613.8 million in 2008, and $751 million per year afterwards.
There's a diary over on Michigan Liberal reporting that Mike Bishop would not allow people to take photographs of the votes in the Senate last night.
Really??
This from the source:
IE votes-tough votes- are not record roll call, so they are not printed in the Senate Journal, the official record of what happened. Film/photos may be only record of who voted for what.
Go check out the diary on Michigan Liberal.
What is Mike Bishop's problem, with letting people have information???
Jeesh.
update:Gongwer reports that Senate rules forbid photographing a non-roll call vote, and another blogger reports that Bishop required a newsman who took a picture of the vote last night to erase his tape.
Good grief.
update #2, 8:23pm: Sub only MIRS reports that it was a Senate staff photographer, and that Bishop "expressed some skepticism about Schauer's claim that he had no idea what she was doing."
(Point of reference: Bishop also thought Wizardkitten was a Senate staffer, and that the budget wouldn't be such a big deal ... so, that's how crafty Mike Bishop is.)
I would have waaay more respect for the Republicans if they would just admit they were using this MESSA "reform" as a means to weaken their political opposition. But they won't do it.
If you recall, the Senate Fiscal Agency concluded that the MESSA reforms would COST the state more money, in administrative and IT costs. It also concluded that it could not determine any amount of savings at the local level. It specifically said that the reform would not "force or guarantee" any savings to districts.
Keep this in mind as Hoogendyk and the Republicans celebrate their victory.
The state House on Sunday night overwhelmingly passed a temporary budget extension that could allow the state to avoid a partial government shutdown that otherwise would hit shortly after midnight.
The budget extension was tied to a bill placing the state's 6 percent sales tax on a wide range of services, which the House had just passed, and to a bill raising the income tax, which had not yet come up Sunday for consideration by the House or Senate.
The Senate already has passed the bill extending the current budget 30 days, but it had yet to vote on the sales tax.
No Republicans voted for the bill placing the sales tax on services; all Democrats did, except for Marc Corriveau of Northville and Kate Ebli of Monroe, who voted no.
There were no votes against the two bills placing the budget extension in place.
From the comments- DJ had a great point. The Republicans, by voting for the extension that was tie-barred to a tax increase, in effect voted for the tax increase. All of them.
Despite the support of a handful of Democrats, the MESSA reform bill just died in the House. They cleared the board on it.
Note: for folks bouncing back & forth between us & Hoogendyk (there seem to be a handful), Hoogendyk's claim that MESSA will save money is false. According to the Senate Fiscal Agency, it will cost the state money, and it cannot be determined whether or not it will save money at the district level. This reform is nothing more than a political attack on the MEA. For more info, view our MESSA diaries.
In the comments we talked a little about Hoogendyk's blog ... in his latest post he tells us that the only people who have asked him to raise taxes are civil servants who want to avoid a lay-off.
It is a sad commentary that more than a few civil servants would rather see millions of tax payers take another hit just so they don't have to take a few days off without pay.
This is the way the Republicans are going to spin this. They don't want to take the blame for their own bad behavior, so they're going to distract the public by blaming the civil servants.
But even our own people are trying to blame the wrong people for a shutdown. Over on Michigan Liberal there's a comment that the MEA shouldn't shut down the state government.
The only people shutting down the state government are the state legislators. Let's not allow Michigan workers be blamed for the failures of Michigan legislators.
Dillon is one of 4 Democrats voting in favor of MESSA busting bill.
Gongwer reports that there are currently 43 YES votes. 39 Republicans, and 4 Democrats. Other Democrats supporting the bill are George Cushingberry, Steve Tobocman, and Marty Griffin.
