KEY
LEGISLATION:
Governor,
Legislators Reach Budget Agreement
While no one is holding his/her breath about the finality of the tentative
budget agreement that was struck between the administration and legislative
leaders Wednesday night, it does appear the sides are closer than ever
to finishing the budget for the fiscal year beginning October 1. Governor
Jennifer Granholm has been attending the recent meetings, possibly signaling
a desire to kick-start negotiations.
The legislature wrapped up business for the July 4 holiday and will
return on July 12 for what is shaping up to be a marathon session prior
to departing for the summer. Other session days may be necessary, however,
in order to finish the budget and other major issues, such as the minimum
wage “fix it” bill (see below).
Minimum Wage
‘Fix It’ Bill Sent Back to Senate
Legislation seeking to return overtime exemptions to the “status-quo”—before
the minimum wage was increased and inadvertently extended overtime to
more employees—was returned to the Senate. Republican leaders pulled
back the “fix it” bill to prevent the governor from vetoing
it, as she indicated she would. MRA participated in a press conference
on Thursday at which business groups interested in fixing the exemptions
problem put pressure on the governor to sign the bill and urge Democrats
to grant it immediate effect.
The overtime issue will probably not be solved on its own merit, because
Democrats see no need to help the Republicans and business groups who
created the overtime problem by boosting the minimum wage to head off
a more severe wage-hike ballot proposal. Instead, the issue has been
discussed as something to trade for other issues the Democrats want
but cannot get. The next few weeks will be important in determining
what Republicans will give and Democrats accept to make the trade work—if
a trade can be made at all.
MiPC Program
Draws More Scrutiny
Senate Labor and Commerce Committee Chairman Jason Allen (R-Traverse
City) held another committee meeting to grill Department of Information
and Technology (DIT) Director Teri Takai on the state’s efforts
to implement a group purchase program to put computers in more households.
On several occasions Director Takai had to either refuse to comment
on components of the program or claim she did not know about them.
It became clear throughout questioning by the committee that there are
several unanswered questions and serious concerns about the initiative—including
the legality of DIT putting forth an RFP for the contracts. The effect
of the hearing may have been to throw cold water on the program. Or,
the Granholm administration may be waiting until the legislature is
gone for the summer to roll out the program and avoid that intense scrutiny.
MRA will remain vigilant on the issue.
Swanson Confirmed as DLEG Director
Bob Swanson was confirmed by a Senate committee as the new Department
of Labor and Economic Growth director. Swanson had been acting as interim
director since former director David Hollister resigned in February
to move to the private sector. The committee unanimously confirmed Swanson,
who had served with Hollister, a former Lansing mayor, at DLEG and the
City of Lansing.
KEY BILL INTRODUCTIONS:
No new key bill introductions to report
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