KEY LEGISLATION:
Unemployment Highest in 9 Years
Michigan’s seasonally adjusted unemployment rate
hit a nine-year high of 6.6
percent, the Department of Career Development (DCD) announced this week.
The
DCD noted that this was a half percent higher than this time last year,
and
almost a full percentage point higher than the February national rate
of 5.8 percent.
The general consensus is that a weakening in Michigan
manufacturing is to
blame. Senator Alan Sanborn (R-Richmond), who is heading up a joint
Senate-House Economic Development Task Force, is not surprised to hear
of
the rise in unemployment in Michigan. He suggested that the legislature
can
help alleviate the problems facing Michigan businesses by examining
the
Single Business Tax and finding a means to control rising insurance
costs.
DEQ Budget Focuses on New Fees
The Department of Environmental Quality (DEQ) budget
is forcing Republicans
to examine $14.77 million in fee increases proposed by Governor Granholm.
Most if not all of the fee increases will fall on businesses in Michigan.
Granholm is calling for four fee increases to help subsidize the DEQ’s
programs.
The first fee seeks to charge municipalities, companies,
and anyone else the
State allows to put a certain amount of pollutants into the water over
$10
million a year for clean-up costs through a new point source pollution
permit. After administration of the program, the new fees are expected
to
raise $7.2 million a year.
The second fee is a groundwater discharge permit fee.
This fee is expected
to raise $3.6 million, and would add 18 employees to the department.
The third fee seeks to raise solid waste disposal permits. Currently
these
permits generate $1.3 million. The proposed increases would net the
state an
additional $2.6 million, bringing the total from permit fees to $3.9
million.
The fourth fee increase proposed by Granholm seeks to
raise the storm water
permit fees by $1.16 million.
Only one of the fee bills has been introduced at this
point, and any
legislation raising these fees faces an uphill battle when put before
Republicans. In fact, House Appropriations DEQ Subcommittee chair John
Pastor (R-Livonia) indicated that he plans to cut funding of the
administration of the DEQ by 30 percent and environmental programs by
15
percent until it appears certain that all four fee increases will pass.
Revenue Estimating Conference Nears
A Revenue Estimating Conference is set for May 13, where
experts from the
House and Senate Fiscal Analysis Offices will give their predictions
on how
the state’s economy is faring. With the state already having a
budget
deficit for FY 2004 of $1.7 billion, any more bad news will further
complicate budget negotiations.
Bad news is expected, however, as rumors around town
are calling for the
state to be roughly $300 million more in the hole.
Peters New Lottery Commissioner
Former Senator Gary Peters was named Lottery Commissioner
this week, drawing
to a conclusion his three-month position with Treasury as head of
investments. Peters replaces Acting Commissioner Jim Kipp who has served
in
that capacity since August 2001.
Most will recall that upon being term-limited from the
legislature, Peters
ran for Attorney General, losing in the closest statewide election Michigan
has seen in 50 years.
Legislature on Spring Break
The House and Senate are off for Spring Break. The Senate
was off this week,
and does not resume session until April 22. The House just wrapped up
an
action-filled week, and is now off until April 29.
KEY BILL INTRODUCTIONS:
House and Senate are on Spring Break.
To view the content and current status of retail-related
bills, visit BillTrack,
MRA's legislative tracking database exclusively for members, at
www.retailbilltrack.com
If you are currently receiving Capitol F@cts by fax
and would like to receive
it via e-mail, please contact Kathleen Wilson at 517.372.5656 or
kawilson@retailers.com.
For back issues of online Capitol F@cts, visit MRA's main Capitol F@cts page.
Specific comments or questions regarding this bulletin
should be directed to:
Kathleen Wilson, Administrative Assistant to the Governmental Affairs
Office at
kawilson@retailers.com.
Michigan Retailers Association
603 South Washington Avenue
Lansing, MI 48933
517.372.5656
Toll-Free: 800.366.3699
Fax: 517.372.1303
govt_affairs@retailers.com
www.retailers.com
www.mallofmichigan.com
