Budget Negotiations
in Full Swing
Thursday marked the most recent endeavor to solve the budget crisis
facing
Michigan, as all the legislative leaders met with the governor to begin
the
negotiating process. Senate Majority Leader Mike Bishop (R-Rochester),
Speaker Andy Dillon (D-Redford), House Minority Leader Craig DeRoche
(R-Novi) and top budget and treasury officials were all present in the
governor’s office for upwards of an hour discussing possible plans.
No details were released, as all parties present agreed to a complete
media
blackout. However, details did emerge that all agreed that a plan had
to be
in place by June 1. Key negotiations will focus on whether or not a
tax
increase will be part of the solution, or if cuts will lead the way.
For
both sides to get a portion of what they want, compromise may lead to
a
blending of new “fees” and cuts.
Tax Restructuring
Appears Imminent
In a “politics makes strange bedfellows” scenario, the Michigan
Chamber of
Commerce and Governor Granholm sent out a joint press release urging
action
sooner rather than later on replacing the state’s Single Business
Tax. Their
message: with only 265 days until the SBT expires, businesses need to
know
what will replace it, and need at least six months of transition time
to get
ready.
The Republicans currently have their BEST plan awaiting action in the
Senate, while the House Dems are expected to release their plan in the
next
week or so. At this point, it may happen that both plans pass their
respective chambers and fail in the other, setting up a conference committee
scenario where the real, hard-core negotiations would take place.
Landfill Fees Set to Triple
In a late-night, heated session, Democrats pushed through bills that
will
amount to a $150-$200 million increase in the state’s landfill
tipping fee.
In a follow-up, the House Great Lakes and Environmental Committee moved
bills the next day putting in place a moratorium on new landfills in
Michigan.
The out-of-state trash issue helped Democrats take control of the House
last
November. Republicans claim that the proposals won’t stop out-of-state
trash, as contracts are already in place with other states and Toronto.
Instead, they claim, this is simply a huge tax increase for Michigan
citizens and businesses.
The bills were reported to the House on a straight party-line vote and
should see action early next week.
Electric Choice
Repeal Discussed
Speaker Dillon (D-Redford) broached the subject of repealing PA 141,
the act
that deregulated the electricity market in Michigan. Now, Rep. Accavitti
(D-Eastpointe), chair of the House Energy and Tech Committee is calling
for
reforms on the act as well. Short of calling for a full repeal of the
act
and returning to monopoly status like the Speaker has done, Accavitti
said
deregulation has failed horribly in places like California, and that
his
committee will hear a few weeks of testimony prior to moving bills aimed
at
repeal.
In addition to repealing PA 141, Speaker Dillon also hinted that he
might
levy a higher tax on utilities in exchange for returning them to monopoly
status. This tax would eventually be passed on to consumera, both
residential and business. MRA has consistently supported choice and
is
opposed to repealing or weakening PA 141.
Tourism Budget
Slashed—Tourism Conf. Scheduled for May
This week, the legislature failed to continue to fund the $15-million/year
tourism appropriation, instead opting to revert back to the previous
level
of $5.7 million. With Michigan’s economy stagnant, the need for
increased
visibility of the tourism industry has never been higher.
The business community and tourism industry are fighting back. On May
2 the
Tourism Industry Legislative Conference will be held in Lansing to lobby
the
Legislature to return the appropriations the current $15-million level.
It
is extremely important that we have ample representation from the retail
community in order to make our case.
Please contact Eric Rule at errule@retailers.com, or (800) 366-3699
to find
out how to participate.
KEY BILL INTRODUCTIONS:
No Bill to Introduce at this Time.
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
