What do state employees earn?

http://blog.mlive.com/taking_notes/2007/06/state_employees_everywhere_are.html

The Lansing State Journal published the annual salaries of every state employee. They weren't happy. But, if you are interested and want to know, the numbers are there.

What do state employees earn?

http://blog.mlive.com/taking_notes/2007/06/state_employees_everywhere_are.html

The Lansing State Journal published the annual salaries of every state employee. They weren't happy. But, if you are interested and want to know, the numbers are there.

The Michigan business tax...a few details

Here are a few of the details coming out about the Michigan Business Tax being voted on tonight:

• A $1.7 million credit for Michigan International Speedway
• A $1.3 million credit for the Palace of Auburn Hills
• Expanded charitable contributions credit for zoos, museums and other things
• Additional compensation credit for Meijer
• Additional compensation credit for Spartan Stores

The Michigan business tax...a few details

Here are a few of the details coming out about the Michigan Business Tax being voted on tonight:

• A $1.7 million credit for Michigan International Speedway
• A $1.3 million credit for the Palace of Auburn Hills
• Expanded charitable contributions credit for zoos, museums and other things
• Additional compensation credit for Meijer
• Additional compensation credit for Spartan Stores

The new Michigan business plan...hire an accountant

We are likely to vote on the new business tax plan tonight. It is more confusing than the one it replaces. It will not invite new business investment and it will not promote new hiring. A summary of the bill can be read at: http://www.michiganvotes.org/Legislation.aspx?ID=50218. Let me know if you can figure it out.

The new Michigan business plan...hire an accountant

We are likely to vote on the new business tax plan tonight. It is more confusing than the one it replaces. It will not invite new business investment and it will not promote new hiring. A summary of the bill can be read at: http://www.michiganvotes.org/Legislation.aspx?ID=50218. Let me know if you can figure it out.

Michigan House of Representatives; Dysfunctional

The depth of the economic crisis in Michigan is greater than ever and there are no signs of a turnaround. Consider:

• Michigan's unemployment rate of 6.9% is fully .9% higher than the next highest state, Mississippi.


• In a recent poll done by EPIC/MRA fully 3% of those questioned said they would "definitely" be moving out of the state of Michigan because the economic or employment situation was so bad. That number would equal 300,000 residents!


• We lost another 18,000 net jobs in the month of May.


• Michigan's per capita income fell by .7% in the last five years; nationwide it rose 4.2%. Our per capita income is now 6.7% below the national average.


• Michigan was the only state in the nation last month to experience a decline in Gross State Product.


• Housing permits are down 39% from a year ago, the worst in the Midwest.

Meanwhile, there is little evidence that the Legislature is in any hurry to get the meaningful work done in a timely manner.  Consider:

• The Single Business Tax, considered to be the worst business tax in the nation, was voted into oblivion last August. (It actually expires in December 31 of this year).  In spite of the general consensus that businesses in Michigan need to know what their future tax liability may be as soon as possible, it is now 10 months later and still no plan has been passed by the Legislature.


• The '06-'07 budget, which ends on September 30th of this year, was found last January to be about $900 million in the red. Yet legislation to "fix" the shortfall was not finally completed until late May, five months later.


• The '07-'08 budget begins October 1, 2007. Forecasts are for a revenue shortfall of perhaps $1.5 billion.  Virtually every school district in the state and many municipalities begin their budget year on July 1st and need to know how much state revenue to expect. The governor sent her budget to the Legislature in February. As of this writing, we have no budget and no plan to match revenues with spending.  

Why can't the House gets its work done?  I believe the answer can be found in our state constitution.  Michigan is one of only five states that place no deadline on its Legislature.  Most states have a date certain when it must be finished for the year. Generally, it is in the spring or early summer.  But not in Michigan. We have until the last day in December to finish.

We used to be much more responsible than this.  Until the early 1950's the Legislature only met every OTHER year. Until the mid 1960's the Legislature had a self-imposed deadline to get their work done by June. And until that time, the average length of stay in the House was around six years.  We had in effect, a time-limited, term-limited Legislature.

Today, we are in session year-round even though we only meet about 92 days per year.  But, because we have no deadline to get our work done, we seem to be in no hurry and typically don't get finished until we have to.

I believe the answer is to amend the state constitution to require the legislature to finish its work by May 1st each year.  We will still have enough time to meet as many days each year as we do now.  But under a deadline, we will roll up our sleeves and get to work immediately to balance the budget and pass truly essential legislation. Do you think it makes sense to put the Legislature on a deadline? Let me know what you think; send me an e-mail

2008 budget will "blow you away"

It is almost July 1st, and the first two budgets (out of 18) for the new year are just coming out of the Appropriations Committee. Here are a few first glances.

The two budgets that just emerged from Approps. are for Dept. of Community Health (DCH) and Dept. of Corrections (DOC). Those two budgets combined, if enacted would use $5.3 billion in general fund money. On the assumption that we enact the new business tax, we will have about $8.7 billion available. It looks like when added to all the other budgets that have not come out yet, our Democrat approps. chairman will have over $10 billion in spending plans. That's a $1.3 billion shortfall!

Here are a few details of the corrections budget:

• Overall GF spending is up by 9%.
• They start with a $76 million reduction from savings due to changes in sentencing guidelines and parole policies. (It will take about 200 bills to be passed before the new guidelines take effect and savings would be realized.)
• $1.25 million for a "Legislative Corrections Ombudsman" office. (This helps us answer mail from residents of the state prisons when they write us.)
• Additional $3.3 million for dry cleaning the guards uniforms. (Note: many county jails are going to military style "jumpsuits" for the guards. They are more comfortable, less costly and don't need to be dry cleaned.)
• $1.2 million for Dept. of Information Technology (DIT) to upgrade the phones. (Hmm...I wonder, did we bid that out?)
• While working toward the goal of reducing prison population, DOC finds it necessary to ADD 493 new employees (FTEs).

Here are a few things we are learning about the DCH budget:

• The overall budget increases general fund spending by 9%.
• Includes $26.2 million increase to fund a 4% across the board pay increase.
• Deletes childhood vaccinations (couldn't afford it, had to give everyone a raise)

Stay tuned. There is much more...

2008 budget will "blow you away"

It is almost July 1st, and the first two budgets (out of 18) for the new year are just coming out of the Appropriations Committee. Here are a few first glances.

The two budgets that just emerged from Approps. are for Dept. of Community Health (DCH) and Dept. of Corrections (DOC). Those two budgets combined, if enacted would use $5.3 billion in general fund money. On the assumption that we enact the new business tax, we will have about $8.7 billion available. It looks like when added to all the other budgets that have not come out yet, our Democrat approps. chairman will have over $10 billion in spending plans. That's a $1.3 billion shortfall!

Here are a few details of the corrections budget:

• Overall GF spending is up by 9%.
• They start with a $76 million reduction from savings due to changes in sentencing guidelines and parole policies. (It will take about 200 bills to be passed before the new guidelines take effect and savings would be realized.)
• $1.25 million for a "Legislative Corrections Ombudsman" office. (This helps us answer mail from residents of the state prisons when they write us.)
• Additional $3.3 million for dry cleaning the guards uniforms. (Note: many county jails are going to military style "jumpsuits" for the guards. They are more comfortable, less costly and don't need to be dry cleaned.)
• $1.2 million for Dept. of Information Technology (DIT) to upgrade the phones. (Hmm...I wonder, did we bid that out?)
• While working toward the goal of reducing prison population, DOC finds it necessary to ADD 493 new employees (FTEs).

Here are a few things we are learning about the DCH budget:

• The overall budget increases general fund spending by 9%.
• Includes $26.2 million increase to fund a 4% across the board pay increase.
• Deletes childhood vaccinations (couldn't afford it, had to give everyone a raise)

Stay tuned. There is much more...

Michigan Council for Arts and Cultural Affairs (MiCACA)

We have a Michigan Council for Arts and Cultural Affairs (MiCACA) that hands out money like candy at a 4th of July parade. In the last year, the state has given grants to, among others... Arts Beats and Eats Foundation, Copper Country Suzuki Assn., River Raisin Ragtime Revue, Kids-n-stuff Interactive Experience, and dozens more. The MiCACA does not list on their information exactly what the money is used for.

Follow-up. Since posting this blog, I have received two heartfelt responses from organizations who receive state funds for their arts programs. (See comments below). I appreciate those comments, but I think the writers are missing the point. The Kalamazoo Symphony and the Beats and Eats program are great organizations and they do much good for their communities. My point is that I do not believe taxpayer funding of these programs is a core function of government. Not everything that is good should be funded by the state! I was the executive director of a non-profit organization for seven years that provided a wealth of human services in Kalamazoo county. Many of those services were similar to those offered by government agencies at taxpayer expense. The difference was, we did it at ZERO cost to the taxpayer and much more efficiently.

The arts are very important to the health and vibrancy of a community. If the community wants them, they will pay for them. Just as one writer pointed out, Chrysler is providing grants for their program. There are plenty of private donors out there who can and do fund the arts. That's the way it should be.

Michigan Council for Arts and Cultural Affairs (MiCACA)

We have a Michigan Council for Arts and Cultural Affairs (MiCACA) that hands out money like candy at a 4th of July parade. In the last year, the state has given grants to, among others... Arts Beats and Eats Foundation, Copper Country Suzuki Assn., River Raisin Ragtime Revue, Kids-n-stuff Interactive Experience, and dozens more. The MiCACA does not list on their information exactly what the money is used for.

Follow-up. Since posting this blog, I have received two heartfelt responses from organizations who receive state funds for their arts programs. (See comments below). I appreciate those comments, but I think the writers are missing the point. The Kalamazoo Symphony and the Beats and Eats program are great organizations and they do much good for their communities. My point is that I do not believe taxpayer funding of these programs is a core function of government. Not everything that is good should be funded by the state! I was the executive director of a non-profit organization for seven years that provided a wealth of human services in Kalamazoo county. Many of those services were similar to those offered by government agencies at taxpayer expense. The difference was, we did it at ZERO cost to the taxpayer and much more efficiently.

The arts are very important to the health and vibrancy of a community. If the community wants them, they will pay for them. Just as one writer pointed out, Chrysler is providing grants for their program. There are plenty of private donors out there who can and do fund the arts. That's the way it should be.

Force feeding of birds could be prohibited.

A new bill being considered in the House: HB 4871.

"A person who engages in the force-feeding of a bird, or who directs an employee to engage in the force-feeding of a bird, is guilty of a misdemeanor punishable by a fine of not more than $1,000.00. A person who knowingly trades in, or offers to trade in, products derived from force-feeding a bird is guilty of a misdemeanor punishable by a fine of not more than $1,000.00 per day. "

This is all about "foie gras". It is goose liver, a delicacy that originated in France. But, do we really need new laws to stop a practice that apparently does not take place in Michigan? Consumption of foie gras is in decline because of public pressure and awareness of how foie gras is produced. That's the way it should be. We shouldn't have to rely upon government to be our conscience and ensure that we do not engage in inhumane behavior.

Personal responsibility and individual accountability should be all that is necessary.

Force feeding of birds could be prohibited.

A new bill being considered in the House: HB 4871.

"A person who engages in the force-feeding of a bird, or who directs an employee to engage in the force-feeding of a bird, is guilty of a misdemeanor punishable by a fine of not more than $1,000.00. A person who knowingly trades in, or offers to trade in, products derived from force-feeding a bird is guilty of a misdemeanor punishable by a fine of not more than $1,000.00 per day. "

This is all about "foie gras". It is goose liver, a delicacy that originated in France. But, do we really need new laws to stop a practice that apparently does not take place in Michigan? Consumption of foie gras is in decline because of public pressure and awareness of how foie gras is produced. That's the way it should be. We shouldn't have to rely upon government to be our conscience and ensure that we do not engage in inhumane behavior.

Personal responsibility and individual accountability should be all that is necessary.

Overbearing, Onerous, Overregulatory-Part 2

Did you know that restaurants are trying to kill you? We need legislation (introduced by Rep. Lee Gonzales) to protect you from the evil restaurateurs! Thank goodness the Legislature is in session...

HB 4194 to require restaurants to print on their menus or on table tents a list of any foods containing trans fatty acids, with the text of the notice to be at least 11 point type and a color that contrasts with the rest of the menu.

HB 4195 to prohibit restaurants that are part of a chain with more than 20 stores in the state from using lipids (oil or shortening) containing trans fatty acids in their cooking, and to impose record keeping requirements on restaurants related to this.

HB 4197 to give preference in the awarding of contracts for the operation of cafeterias in public facilities to firms that do not use trans fatty acids in food preparation.

Many of the important bills we introduce never see the light of day, but in fact, a notice has gone out that there will be a workgroup meeting of legislators and interested parties Wednesday, June 27th in Lansing to discuss this bill and decide when to move it out of committee.

"If it moves, tax it. If it slows down, regulate it. It is stops, subsidize it." Ronald Reagan.

Overbearing, Onerous, Overregulatory-Part 2

Did you know that restaurants are trying to kill you? We need legislation (introduced by Rep. Lee Gonzales) to protect you from the evil restaurateurs! Thank goodness the Legislature is in session...

HB 4194 to require restaurants to print on their menus or on table tents a list of any foods containing trans fatty acids, with the text of the notice to be at least 11 point type and a color that contrasts with the rest of the menu.

HB 4195 to prohibit restaurants that are part of a chain with more than 20 stores in the state from using lipids (oil or shortening) containing trans fatty acids in their cooking, and to impose record keeping requirements on restaurants related to this.

HB 4197 to give preference in the awarding of contracts for the operation of cafeterias in public facilities to firms that do not use trans fatty acids in food preparation.

Many of the important bills we introduce never see the light of day, but in fact, a notice has gone out that there will be a workgroup meeting of legislators and interested parties Wednesday, June 27th in Lansing to discuss this bill and decide when to move it out of committee.

"If it moves, tax it. If it slows down, regulate it. It is stops, subsidize it." Ronald Reagan.

The Overbearing, Onerous, Over-regulatory beat goes on.

Today, the House Education committee is debating HB 4087. (see www.michiganvotes.org)

This bill would prohibit smoking in college dorms. I do not smoke. I have no use for cigarette smoke. But I would ask, is this really what the Legislature should be involved in? Universities have governing boards, which according to the state constitution, are AUTONOMOUS. I used to serve on the House Higher Education Appropriations Committe. One thing I had burned into my brain by the university leaders was that they are autonomous. They like getting our money (nearly $2 billion) but they do not want to be told how to run their school and have constitutional protection from being told by the legislature how to spend your money.

Fact is, smoking is a legal activity, and university boards should be able to make decisions like this on their own. I would suspect that if a given university were to ban smoking on campus and the legislature tried to overturn that decision, we would hear howls of complaint from the university board about how we are overstepping our bounds and sticking our noses into their business.

The Overbearing, Onerous, Over-regulatory beat goes on.

Today, the House Education committee is debating HB 4087. (see www.michiganvotes.org)

This bill would prohibit smoking in college dorms. I do not smoke. I have no use for cigarette smoke. But I would ask, is this really what the Legislature should be involved in? Universities have governing boards, which according to the state constitution, are AUTONOMOUS. I used to serve on the House Higher Education Appropriations Committe. One thing I had burned into my brain by the university leaders was that they are autonomous. They like getting our money (nearly $2 billion) but they do not want to be told how to run their school and have constitutional protection from being told by the legislature how to spend your money.

Fact is, smoking is a legal activity, and university boards should be able to make decisions like this on their own. I would suspect that if a given university were to ban smoking on campus and the legislature tried to overturn that decision, we would hear howls of complaint from the university board about how we are overstepping our bounds and sticking our noses into their business.

Toxins, Beer, Packages and Music...

What do these items have in common? They are all subjects of House Resolutions today. We are busy, folks. Here are the resolutions we approved on June 19, 2007:
HR 138: Commemorating June 2007 as Black Music Month.
HR 140: Designating July 2007 as Michigan Craft Beer Month.
HR 141: Honoring the 100th anniversary of the United Parcel Service.
And, most importantly...
HR 139: Memorializing manufacturers of products marketed for children who are seven years old or younger to remove certain toxic substances from the products and replace these substances with the least toxic substances available.

Fear not, citizens! The Legislature is in session, protecting our kids while celebrating good music, good beer and a great package delivery company.

...not that there is anything wrong with that!

Toxins, Beer, Packages and Music...

What do these items have in common? They are all subjects of House Resolutions today. We are busy, folks. Here are the resolutions we approved on June 19, 2007:
HR 138: Commemorating June 2007 as Black Music Month.
HR 140: Designating July 2007 as Michigan Craft Beer Month.
HR 141: Honoring the 100th anniversary of the United Parcel Service.
And, most importantly...
HR 139: Memorializing manufacturers of products marketed for children who are seven years old or younger to remove certain toxic substances from the products and replace these substances with the least toxic substances available.

Fear not, citizens! The Legislature is in session, protecting our kids while celebrating good music, good beer and a great package delivery company.

...not that there is anything wrong with that!

The new "simplified" tax plan; "do you have a graphing calculator?"

We have been waiting for some time for a new business tax plan.  I continue to believe that what Michigan needs is NO new business tax plan.  The Single Business Tax (SBT) expires at the end of this year.  We should not replace it with ANYTHING.  And, yes, there are plenty of easy (although painful) cuts that could reduce spending to match revenues. I have included a listing of the bullet points on the new business tax that has apparently been agreed to by the Senate, House and the governor.  I have also included an edited version of an essay by my good colleague Fulton Sheen, former tax policy chair. I hope you find it helpful. If you have any comments, feel free to contact me at jackhoogendyk@comcast.net.

Here are some of the "highlights" of the new, improved, simplified Michigan Business Tax Plan:

• 2/3 margin tax consisting of sales minus purchases of tangible property; rate under .08%


• 1/3 business tax income; rate under 5%


• Capital stock tax for banks


• Increase insurance premiums tax to 1.24% plus credits


• 12 mil personal property tax for commercial personal property


• 24 mil personal property tax for industrial personal property


• 35% refundable credit on remaining industrial personal property


• Telephone credit corresponding to commercial personal property


• Investment and compensation credits capped at 65% of liability


• R&D credit capped at 75% of liability


• ME-2 Entrepreneurial credit


• Allow qualifying firms to pay a 1.8% tax on adjusted business income


• Increase officer compensation disqualifiers to $160,000 to $180,000


• Increase aggregate business income disqualifier to $1.3 million


• Allow flow-through entities to access the compensation credit

------------

New Tax Restructuring Could Make Things Worse
by Fulton Sheen, edited by Jack Hoogendyk

The new business tax being proposed to replace the SBT runs roughshod over the goals of simplification and equity in taxation for all businesses in Michigan.  The state treasurer would likely not favor separate tax systems for different businesses nor has he been enthused with the original house tax proposal.  Establishing a base gross receipts tax rate and giving credits to in-state, but not out state businesses, so as to export a greater tax liability to out-state business is a great idea, but it will be challenged as an abridgement of the Commerce Clause, because we are taxing out-state differently than in-state business.  Ohio tried something similar and has been challenged in court; they may have to redo their plan.  Trying to cobble together two competing plans which are comprised of four different taxes, with only one overlapping business income tax, is not good tax policy; it is politics at its worst.

No matter how they duct tape the House and Senate plans together or how many additional carve outs and exceptions they create to make it work and to cut a deal,  Michigan's Business Tax Structure will be a mess and even more complicated than it was before.  We will still have a Gross Receipts Tax of .75% (which the people rejected when they over-rode the Governor's veto of the SBT), a Personal Property Tax (which every state around us has gotten rid of), with "potential" credits for some businesses that range between 24% - 46%, if you can qualify; and we will now add a third tax, a Business Income Tax, which ranges from 1.85% for companies with receipts under $20 million and 5% for those above $20 million.  

Goals were set three years ago were to create a simple, equitable, broad tax base which is easy to comply with and inviting to new investment.  This new tax scheme will do none of these things and likely make our business environment worse not better.  So what have we really accomplished? With regard to our ailing tax policy and economic condition, we have put a fresh coat of paint on the house, but the foundation is collapsing.

A much better option, which should be considered, is the Michigan Fair Tax Proposal (HJR L). This proposal, introduced and championed by Representative Fulton J. Sheen, is transparent, easy to understand and easy to comply with. It would tax in-state employers and out-state employers the same, regardless where they are headquartered.  It is competitive and would attract new business.  It would also guarantee revenue sharing for townships, cities, and counties by making all revenue sharing constitutional.  To learn more about the Fair Tax Plan, go to www.FultonSheen.us or www.MIFairTax.org.

Evolution, Embryos & English

The Michigan Department of Education is required to solicit input on new school content expectations and guidelines.   The deadline for comment is June 29. You can review these documents at the links below. 

http://www.michigan.gov/documents/mde/Science_GLCE_Survey_ppt_5-10-07_196654_7.pps
http://www.michigan.gov/documents/mde/Social_Studies_Web_Survey_196653_7.pps

This is comprehensive but important material.  Decisions made this month will determine what our children are taught in schools across the state. Below are some comments I have received regarding some of he content. You can see there are some "interesting" items in the course content.  If you have concerns, you may provide feedback, but your time is limited.  You can email Lisa Hansknecht from the Department of Education at hansknechtl@michigan.gov by June 29.

Regarding Science content expectations:

There seems to be some "politically charged" topics included in these expectations: evolution, human impact on the earth, humanity of the embryo and reproduction.

1. Evolution          

The problem arises in determining at what age children should begin to be "taught" about these topics and from which perspective of the "right" answer.  For example, second grade, and even fourth grade, seems far too young to introduce children to the concept of evolution.  If you read the L.EV.02 and L.EV.04 standards, they could easily be taught and titled "Adaptation".  There is no need to introduce the word "evolution" yet.

2. Human impact on the earth
S.IR.02.13 "the effect humans have on the 'natural' world" (are humans not natural?) and E.ES.03.39 "Urban sprawl, strip mining, etc" are also problematic.  Children at this age are not ready to debate the credibility of these issues, so it can only be considered "indoctrination" to a certain perspective.  Should children be burdened with these issues at this age?

3. Humanity of the embryo
L.OL.07.32 "the basic tissue of an embryo" seems a veiled attempt to suggest the collection of developing cells is not actually an embryo.  This interpretation is not one universally accepted by the majority of the science community, let alone the parents of our children in Michigan.
 
4. Human reproduction
L.OL.07.41
The advantages versus disadvantages of sexual versus asexual reproduction seems odd as well.  Perhaps understanding the difference is relevant, but especially considering the audience of 7th graders, it seems potentially disruptive.

----------

Regarding Languages other than English (LOTE):

Overall, these expectations seem reasonable.  As in science, there seem to be "social policy" issues imbedded in them, which should be eliminated.  Education law should not incorporate indoctrination.  This is important and urgent.They discuss a "pluralistic America" which suggests we are discouraging the assumption that English is the language of America.
I hope you find this informationi useful.  Feel free to contact me if you have any input or suggestions. Regards, 

Dinner, Detroit and Debt

Tuesday we came to session at 1:30 to enjoy another delicious "first bill" DINNER provided by one of our colleagues. Kudos to his wife who spent three days preparing it. It was truly a delicious homemade meal. While we enjoyed the food in our seats on the House floor, we were treated to some lovely chamber music by a quartet from the DETROIT Symphony. After that, we did vote on one bill. It was final passage of House Bill 4850, which authorizes additional borrowing of $415 million (from the bank) and creating a DEBT (for our children) of about $990 million to be paid back over the next 20 years (by our children, assuming they don't leave the state to look for work.)

So, all in all, a pretty good day!

P.S. To learn more about the debt we saddled all of you with, please go to http://www.michiganvotes.org/. On the front page, type in HB4850 and you will see a complete update on the bill.

Dinner, Detroit and Debt

Tuesday we came to session at 1:30 to enjoy another delicious "first bill" DINNER provided by one of our colleagues. Kudos to his wife who spent three days preparing it. It was truly a delicious homemade meal. While we enjoyed the food in our seats on the House floor, we were treated to some lovely chamber music by a quartet from the DETROIT Symphony. After that, we did vote on one bill. It was final passage of House Bill 4850, which authorizes additional borrowing of $415 million (from the bank) and creating a DEBT (for our children) of about $990 million to be paid back over the next 20 years (by our children, assuming they don't leave the state to look for work.)

So, all in all, a pretty good day!

P.S. To learn more about the debt we saddled all of you with, please go to http://www.michiganvotes.org/. On the front page, type in HB4850 and you will see a complete update on the bill.

The MEA shows their colors; money trumps opportunity for students to achieve

I recently introduced a bill, HB4855, which allows high school students to forgo their last two years of high school and enroll in community college instead. They would receive up to a $3500 grant to attend. The rationale is that it can help accelerate a student's education, keep them challenged and save state a great deal of money. (Instead of the state funding a high school student at $7000+ per year, the state funds up to $3500 for that student to go to college instead.) You can read about the bill here:
http://www.michiganvotes.com/SearchVotes.aspx?EntityID=1482&Keywords=&op=Search

The "State News" from Michigan State University did a story on it. You can read it here: http://www.statenews.com/article.phtml?pk=41315

What is interesting in the story is the candid response to the idea that came from the Michigan Education Association. You would think they would have as their first priority making sure students get a good education by ensuring that we have quality, well-compensated teachers. But the only response that was printed in the State News from Karen Schulz, MEA communications consultant was, "Schools are struggling already. Any proposal that drains funds from school districts causes a problem. Every single school district in the state is mindful that every student who leaves costs money," she said.

The fact is that, assuming the $3500 for the college grant came from the School Aid Fund, there would be a minimum of $3500 left over in the SAF, which means MORE money available for each student who is attending a public school.

The legislature and the governor will continue to fund public education. But we should give students this additional option to either concentrate on a trade or associate's degree, or jump start their bachelor's degree one or two years early. It's about giving our kids an opportunity to achieve, isn't that the American way?

The MEA shows their colors; money trumps opportunity for students to achieve

I recently introduced a bill, HB4855, which allows high school students to forgo their last two years of high school and enroll in community college instead. They would receive up to a $3500 grant to attend. The rationale is that it can help accelerate a student's education, keep them challenged and save state a great deal of money. (Instead of the state funding a high school student at $7000+ per year, the state funds up to $3500 for that student to go to college instead.) You can read about the bill here:
http://www.michiganvotes.com/SearchVotes.aspx?EntityID=1482&Keywords=&op=Search

The "State News" from Michigan State University did a story on it. You can read it here: http://www.statenews.com/article.phtml?pk=41315

What is interesting in the story is the candid response to the idea that came from the Michigan Education Association. You would think they would have as their first priority making sure students get a good education by ensuring that we have quality, well-compensated teachers. But the only response that was printed in the State News from Karen Schulz, MEA communications consultant was, "Schools are struggling already. Any proposal that drains funds from school districts causes a problem. Every single school district in the state is mindful that every student who leaves costs money," she said.

The fact is that, assuming the $3500 for the college grant came from the School Aid Fund, there would be a minimum of $3500 left over in the SAF, which means MORE money available for each student who is attending a public school.

The legislature and the governor will continue to fund public education. But we should give students this additional option to either concentrate on a trade or associate's degree, or jump start their bachelor's degree one or two years early. It's about giving our kids an opportunity to achieve, isn't that the American way?

Another perspective on Part-time Legislature

The concept of reducing the Legislature to part-time is becoming more popular all the time. Here is a slightly abridged viewpoint from Ken Braun at the Mackinac Center for Public Policy, a non-profit organization that has no political ties. The full version can be viewed on the Mackinac web site at www.mackinac.org Let me know what you think...you can email me at part.time.mi@gmail.com

Too Much Time on Their Hands
by Ken Braun, Mackinac Center for Public Policy
 
Michigan substantially overpays its lawmakers relative to virtually every other state. However small an amount of money it would represent relative to the size of their spending problem, putting lawmakers on part-time pay would be an important and symbolic first step toward reducing the size, scope and cost of state government.

Michigan lawmakers receive a $79,650 annual salary, plus an additional $12,000 expense account. According to the National Council of State Legislatures, Michigan has the second-highest paid legislators in America. Well over half the states pay lawmakers less than half of what Michigan does. Some much less than that:

• New Hampshire pays $200 for a two-year term


• Alabama $10 per session day


• New Mexico, nothing (just expenses).

Michigan is one of a dozen or so states with a full-time Legislature. There is no evidence that it needs to be full-time or that we are better governed than the part-time states. Texas, the second largest state in both people and geography, has part-time lawmakers and pays them just $7,200 annually.

"Full-time" is also a relative term. In 2006, the Legislature met fewer than 100 days. Neither the House nor the Senate scheduled a single session day during the month of October - coincidentally the month before Election Day. Each met just six days in August.

It cost taxpayers $113.9 million for their Legislature in fiscal year 2006. This divides out to $167,000 per law passed and approximately $54,000 per bill introduced. We could do without much of this legislative activity. For example, last year a dozen bills designed to name or rename roadways after historical people, groups and politicians were pending in legislative committees. Seven received enough attention to become laws.

Two that became laws, one to rename a highway after President Ronald Reagan and another to commemorate the UAW Sit-Down Strike, got bogged down in a minor partisan dispute between pro-UAW and pro-Reagan lawmakers. Several amendments and hearings later, the bills were tie-barred to each other - meaning one could not become law without the other - and the governor signed them both.

Other examples:

The Senate unanimously passed a proposal to rename a prison after a former lawmaker.
The committees that got those bills renaming roads also had more than 20 bills pending for 2006 which dealt with specialty license plates, such as those that picture university logos.
There were bills pending in both chambers to designate official state birds, fruits and a Poet Laureate.

Even when nothing happens to them, these bills all require the time of legislative staff and attorneys to draft them. What has been listed here are only some of the more egregious examples of needless lawmaking and activity by one of the few full-time legislatures in America. A lot of state government needs to be downsized and cutting back to part-time lawmakers isn't a bad place to begin.

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Kenneth M. Braun is a former employee of the Michigan House of Representatives and nowa policy analyst specializing in fiscal and budgetary issues for the Mackinac Center for Public Policy, a research and educational institute headquartered in Midland, Mich.  
 
 www.mackinac.org
 
To learn more about the part-time legislature issue go to: http://parttimemichigan.googlepages.com

Just another run-of-the-mill example of government waste

I recently received this note from a retired state employee. It's just a small thing, but a classic example of how bureaucrats think when they are not accountable.

"For a very long time, state agencies were able to obtain items free from State Surplus in Lansing. I have seen the ex-Governor's desk available, barely used carpeting from the Capitol building, thousands of file cabinets and chairs, various tools and equipment available to any state agency that needed it. Anything that was not claimed was auctioned off to the general public.

About five years ago, Surplus started charging agencies for each item. This change discouraged agencies from "shopping" at Surplus. From that point on, instead of reusing state owned items, agencies ordered new. Instead of an item being handed off to another agency for continued use, at virtually no cost to the taxpayer, the State would order a new one, at a much higher cost."

Just another run-of-the-mill example of government waste

I recently received this note from a retired state employee. It's just a small thing, but a classic example of how bureaucrats think when they are not accountable.

"For a very long time, state agencies were able to obtain items free from State Surplus in Lansing. I have seen the ex-Governor's desk available, barely used carpeting from the Capitol building, thousands of file cabinets and chairs, various tools and equipment available to any state agency that needed it. Anything that was not claimed was auctioned off to the general public.

About five years ago, Surplus started charging agencies for each item. This change discouraged agencies from "shopping" at Surplus. From that point on, instead of reusing state owned items, agencies ordered new. Instead of an item being handed off to another agency for continued use, at virtually no cost to the taxpayer, the State would order a new one, at a much higher cost."

How we REALLY balanced the budget

Kudos to Nolan Finley of the Detroit News for his blog today about how we finally “balanced” this year’s budget. You can read the entire blog at http://info.detnews.com/blogs/bloggers.cfm?id=finley
He cites a Citizens Research Council revelation that the 2007 budget was balanced using over $1 billion in one-time gimmicks. They break down this way:
--$407 million borrowed against future tobacco settlement payments
--$165 million in delayed payments to universities (adding to next year’s problem)
--$131 million in withheld pension payment obligations
--$312 in fund shifts (dollars dedicated for one purpose “borrowed” for another)

Nolan is right when he says, “If Granholm were CEO of a public company and engaged in this sort of fiscal fakery, she'd be facing prosecution under the Sarbanes-Oxley Act.

How we REALLY balanced the budget

Kudos to Nolan Finley of the Detroit News for his blog today about how we finally “balanced” this year’s budget. You can read the entire blog at http://info.detnews.com/blogs/bloggers.cfm?id=finley
He cites a Citizens Research Council revelation that the 2007 budget was balanced using over $1 billion in one-time gimmicks. They break down this way:
--$407 million borrowed against future tobacco settlement payments
--$165 million in delayed payments to universities (adding to next year’s problem)
--$131 million in withheld pension payment obligations
--$312 in fund shifts (dollars dedicated for one purpose “borrowed” for another)

Nolan is right when he says, “If Granholm were CEO of a public company and engaged in this sort of fiscal fakery, she'd be facing prosecution under the Sarbanes-Oxley Act.

Mortgaging the future

I think most taxpayers, certainly all homeowners know how a mortgage works. You get money from the bank which you use to buy a house. The security for the money you borrowed is the house itself. The idea is that in thirty years or less, you have paid off the debt you owe, with interest, but the house is worth more so you come out ahead on the deal. On the other hand, if you don't make the payments, the bank takes your house away.

Well, your state legislature "took out a mortgage" last week. We borrowed $410 million from the bank to cover our obligations for this year and "balance" the budget. We will use tobacco settlement dollars to pay it back. It will take us twenty years at about $45 million per year to pay off the bank. That means we start each year with a budget hole. Great deal, eh? Oh yeah, there is the problem of what we put up for security. I guess we will just let our kids and grandchildren pick up the tab.

By the way, the word mortgage come from the Old French, it means "dead pledge."

Mortgaging the future

I think most taxpayers, certainly all homeowners know how a mortgage works. You get money from the bank which you use to buy a house. The security for the money you borrowed is the house itself. The idea is that in thirty years or less, you have paid off the debt you owe, with interest, but the house is worth more so you come out ahead on the deal. On the other hand, if you don't make the payments, the bank takes your house away.

Well, your state legislature "took out a mortgage" last week. We borrowed $410 million from the bank to cover our obligations for this year and "balance" the budget. We will use tobacco settlement dollars to pay it back. It will take us twenty years at about $45 million per year to pay off the bank. That means we start each year with a budget hole. Great deal, eh? Oh yeah, there is the problem of what we put up for security. I guess we will just let our kids and grandchildren pick up the tab.

By the way, the word mortgage come from the Old French, it means "dead pledge."

Senate elites speak their minds

The Senate Government Operations Committee held a hearing today on the topic of whether the Legislature should go part-time. Chairman and Majority Leader Mike Bishop gave strong and earnest support to the concept.

Some of his colleagues on the committee however, had a different view. One member expressed concern for how much work is involved and wondered how we could EVER do this job on a part-time basis. "The time spent in this career as a legislator is so intensive and so time-consuming that unless you walk in our shoes for a week, you never know just how much we do and the sacrifices that our families really make for us to be here."

Another member made it clear that 50-60 hours a week is just not enough time to get all the work done and to fulfill all the demands and requirements of being a legislator. There was also a subtle suggestion that, what with a $40 billion budget to oversee, perhaps we are underpaid!

The topper was a simple statement made by a third member of the committee who shall remain nameless. Keeping in mind our track record over the last five months, this Senator said, "I think we have an effective legislature."

Senate elites speak their minds

The Senate Government Operations Committee held a hearing today on the topic of whether the Legislature should go part-time. Chairman and Majority Leader Mike Bishop gave strong and earnest support to the concept.

Some of his colleagues on the committee however, had a different view. One member expressed concern for how much work is involved and wondered how we could EVER do this job on a part-time basis. "The time spent in this career as a legislator is so intensive and so time-consuming that unless you walk in our shoes for a week, you never know just how much we do and the sacrifices that our families really make for us to be here."

Another member made it clear that 50-60 hours a week is just not enough time to get all the work done and to fulfill all the demands and requirements of being a legislator. There was also a subtle suggestion that, what with a $40 billion budget to oversee, perhaps we are underpaid!

The topper was a simple statement made by a third member of the committee who shall remain nameless. Keeping in mind our track record over the last five months, this Senator said, "I think we have an effective legislature."

A word from Leon Drolet

I had a radio interview today with a local station to talk about the budget situation. During the discussion, I mentioned that most of my colleagues are on Mackinac Island hanging out with all the lobbyists. It gave me a thought for a new blog entry. But when I got home, I found an e-mail from my former colleague, Leon Drolet. He said in his hard-hitting way what was on my mind. So, without his permission, here is an edited version of his "blog"...he is rather blunt but he gets his point across.

"The Detroit Regional Chamber of Commerce’s Annual Policy Conference on Mackinac Island wraps up today. Each year prominent politicians of both parties mingle with Michigan’s business leaders to build consensus on improving our state. Last year, I attended and found the Conference more like a junket to the Land of Oz.

The atmosphere on this beautiful island is very genteel. The food is magnificent, and the wine flows freely. Elegantly dressed government elites mingle with leaders of the automotive industry and, surprisingly, lobbyists for tax-spending organizations like public universities, associations representing Medicaid beneficiaries, public schools, and non-profit entities that depend on government grants. Most of the attendees represent public sector organizations.

Of course, its all FREE for most legislators and its well worth the conference fee to be part of the ‘in’ crowd making decisions about how much money will be taken from citizens and who it will it be redistributed to.

Guess who’s NOT on the Island? You, if you are an everyday taxpayer or a small business owner. The Island may actually exceed Lansing itself in disproportionate representation of tax-spenders and tax-eaters compared to taxpayers. Is it any surprise that the policy agreements that come out of the conference are big-spending, centrally planned, government boondoggles?

This year, the big agreement on the Island is that the state’s dreaded Single Business Tax will be replaced by a new tax - dollar for dollar. Ah, you citizen taxpayers. Don’t you understand the need for everyone on the Island to find consensus, to get along?

The media will gush about the bipartisanship! There will be peace on the porch of the Grand Hotel tonight as the sun sets on Lake Michigan. New friends will enjoy fine cigars and glasses of pinot noir.

But for the rest of Michigan, the sun is setting on our economic future."

Leon Drolet
www.mitaxpyers.org

A word from Leon Drolet

I had a radio interview today with a local station to talk about the budget situation. During the discussion, I mentioned that most of my colleagues are on Mackinac Island hanging out with all the lobbyists. It gave me a thought for a new blog entry. But when I got home, I found an e-mail from my former colleague, Leon Drolet. He said in his hard-hitting way what was on my mind. So, without his permission, here is an edited version of his "blog"...he is rather blunt but he gets his point across.

"The Detroit Regional Chamber of Commerce’s Annual Policy Conference on Mackinac Island wraps up today. Each year prominent politicians of both parties mingle with Michigan’s business leaders to build consensus on improving our state. Last year, I attended and found the Conference more like a junket to the Land of Oz.

The atmosphere on this beautiful island is very genteel. The food is magnificent, and the wine flows freely. Elegantly dressed government elites mingle with leaders of the automotive industry and, surprisingly, lobbyists for tax-spending organizations like public universities, associations representing Medicaid beneficiaries, public schools, and non-profit entities that depend on government grants. Most of the attendees represent public sector organizations.

Of course, its all FREE for most legislators and its well worth the conference fee to be part of the ‘in’ crowd making decisions about how much money will be taken from citizens and who it will it be redistributed to.

Guess who’s NOT on the Island? You, if you are an everyday taxpayer or a small business owner. The Island may actually exceed Lansing itself in disproportionate representation of tax-spenders and tax-eaters compared to taxpayers. Is it any surprise that the policy agreements that come out of the conference are big-spending, centrally planned, government boondoggles?

This year, the big agreement on the Island is that the state’s dreaded Single Business Tax will be replaced by a new tax - dollar for dollar. Ah, you citizen taxpayers. Don’t you understand the need for everyone on the Island to find consensus, to get along?

The media will gush about the bipartisanship! There will be peace on the porch of the Grand Hotel tonight as the sun sets on Lake Michigan. New friends will enjoy fine cigars and glasses of pinot noir.

But for the rest of Michigan, the sun is setting on our economic future."

Leon Drolet
www.mitaxpyers.org