KEY LEGISLATION:
Governor Delivers Budget-Cutting Executive Order
Governor Jennifer Granholm followed up her State of the State Address by
unveiling her proposed 2006 budget and an Executive Order in which she
attempted to solve a $773 million budget gap through a blend of spending
reductions and the closing of tax expenditures.
Granholm’s plan saves $389.6 million through spending reductions. The
closing of nine tax expenditures is expected to raise an additional $112
million. Among them are:
• the sales and use tax exemption for interstate motor carriers;
• the personal property tax exemption for the lease of water softeners;
• the sales tax exemption for soft drinks and food sold from vending
machines.
In addition she proposed to increase several fees, including those on liquor
licenses in order to raise $23 million to support the Liquor Control
Commission entirely with fee proceeds. The governor noted that liquor
license fees have not been raised since 1976.
The governor also elaborated on the bond proposal she announced in her State
of the State address Tuesday. Under the plan, the state would borrow up to
$2 billion over the next 10 years to finance job-creation projects in the
areas of fuel cells, life sciences and other emerging technology areas.
She is also calling for $10 million in Medicaid disproportionate (DISH)
payments in ’05 and ’06. These payments would be made available to hospitals
that expand health care training opportunities and would be aimed at
training nurses, pharmacists, emergency medical technicians and physical
therapists.
Other highlights of the governor’s proposals include:
• $596,000 for new efforts to combat predatory lending practices;
• Implementing a physician provider assessment to increase physician
reimbursement rates, intended to save the state $40 million;
• A 4-percent Medicaid Provider Rate Reduction;
• Eliminating the Elder Prescription drug coverage effective January 1 to
coincide with new Medicare drug coverage;
• Eliminating the Aquifer Protection and Dispute Resolution Center;
• Investing $500,000 in restricted funds in increased escheats auditing.
GOP Displeased with Governor’s Tactics
Budget details aside, several Republicans were angry with Gov. Granholm for
getting at spending cuts by including a negative supplemental budget in
addition to the executive budget order. Members claimed it was wrong and
didn’t include input from the GOP.
It appears Granholm may have put the Republicans in a bad spot by forcing
them to vote for or against the negative supplemental rather than simply
approving an executive order. A budget-cutting executive order needs only
one up-or-down vote in both chambers’ appropriations committees within 10
days. A negative supplemental, on the other hand, functions like a normal
bill and requires approval in both legislative chambers after making its way
through their respective committees.
Several items in the negative supplemental could be troubling for the GOP
lawmakers, including the closing of several prisons and a 4-percent
reduction in Medicaid providers’ fees.
Trash Tipping Fee Introduced
Sen. Liz Brater (D-Ann Arbor) issued a news release espousing the virtues of
her proposed legislation creating a $6-per-ton tipping fee for Michigan
landfills. Brater claims the measure would help the state take a stand
against Canadian and out-of-state waste while raising about $100 million per
year that would be returned to municipalities for recycling programs.
Last session, similar legislation proposing a $3 tipping fee was defeated by
the business community.
KEY BILL INTRODUCTIONS:
HB 4218, sponsored by Rep. Dudley Spade (D-Tipton), to increase penalties
for sale of tobacco and tobacco products to minors.
HB 4220, sponsored by Rep. Aldo Vagnozzi (D-Farmington Hills), to create
redevelopment project area liquor licenses and issue within certain cities.
HB 4221, sponsored by Rep. Vagnozzi, to create redevelopment project area
liquor licenses and substitute for development district license.
HB 4232, sponsored by Rep. Glenn Anderson (D-Westland), to provide for
requirement for written notification of a business’s return policy to be
posted on the receipt.
HB 4232, sponsored by Rep. Scott Hummel (R-DeWitt), to regulate use of
credit information and credit scoring.
SB 0175, sponsored by Sen. Cameron (R-Strugis), to provide for tax
incentives for distribution and warehousing facilities that investigate a
possible site in Michigan.
SB 0176, sponsored by Sen. Martha Scott ( D-Highland Park), to provide for
licensing and regulation of providers of money transmission services.
SB 0177, sponsored by Sen. Scott, to include money transmission at
definition of financial licensing acts in consumer financial services act.
SB 0178, sponsored by Sen. Scott, to provide for certain money services act
violations in sentencing guidelines.
SB 0179, sponsored by Sen. Tony Stamas (R-Midland), to revise maximum number
of hours a minor may work in youth employment standards.
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
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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
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