KEY
LEGISLATION:
Backers
Abandon Minimum-Wage Ballot Proposal
Following Governor Jennifer Granholm’s signing of Republican-led
legislation
boosting the minimum wage, the Democratic Party announced it would abandon
its efforts to put the issue on the ballot in November. This is a
significant victory for retail, as the ballot proposal would have indexed
the minimum wage to the rate of inflation every year. Under that scenario,
the minimum wage would have risen to $9 within four years, assuming
an
inflation rate of 5 percent.
Republican leaders and businesses groups collectively decided that hiking
the minimum wage via legislation—without indexing—was preferable
to having
the wage put into the state constitution via a ballot proposal.
The legislation signed by the governor increases the minimum wage in
Michigan from the current $5.15 to:
* $6.95 beginning October 1, 2006;
* $7.15 beginning July 1, 2007;
* $7.40 beginning July 1, 2008.
SBT Repeal Sent to Governor
The House sent legislation repealing the Single Business Tax (SBT)
to Gov.
Granholm, who is expected to veto it. House Bill 5743 moves up the scheduled
sunset of the tax from December 31, 2009, to December 31, 2007. Granholm
has
said repeatedly that by ending the SBT prior to enacting a replacement
tax,
the legislature is being careless and could replace it with something
burdening consumers, not businesses.
Republicans took away part of her argument by placing language in the
bill
clearly stating any replacement should be “less burdensome and
less costly
to employers, more equitable, and more conducive to job creation and
investment,” while not increasing income, sales or property taxes.
In anticipation that Granholm will veto the bill, Republicans and business
groups are already in the process of securing the necessary signatures
for
an initiative petition drive. That would enable the measure to be
rubber-stamped by the legislature and enacted into law without Gov.
Granholm
being able to veto it.
MRA Raises Concerns
Over Computer Sales Plan
The Granholm Administration announced it will launch a program to make
it
easier for Michigan households to have a desktop or laptop computer.
Pronounced “My PC,” the MiPC program would establish a purchasing
pool and
allow residents to choose from three levels of desktop computers and
services or two levels of laptops and services. The Associated Press
reported that RFPs already have been sent to vendors and computer
manufacturers. The state plans to administer the program but not subsidize
the cost of any of the equipment.
While lauding the governor’s goal of putting computers and Internet
service in more households, MRA urged the governor to slow down and
consider the effects on Michigan retailers (see news release at
www.retailers.com/news/newsreleases/060329.htm).
If the program picks
winners and losers and/or cuts into the profits of retailers selling
these
products and services, MRA will vigorously oppose such price setting
and
intrusion into the free market system.
The governor’s office responded to MRA via the news media, stating
that
conversations would be held with MRA. No word yet from Granholm’s
office on
when such a meeting will be scheduled.
Lawmakers Recess
for Spring Break
Both the House and the Senate adjourned session Thursday evening for
a
two-week Spring Recess. Lawmakers will return April 18.
KEY BILL INTRODUCTIONS:
No new key bill introductions to report
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
