Capitol Capsule Ing Workers’ Rights,” Granholm Said
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QUOTE OF THE DAY: “If you’ve ever been victimized by the Drain Code, you know that it’s awfully hard to amend a major piece of work like this.” — Former Rep. Bill BOBIER, on the difficulty that comes with attempting to Michigan Information & Research Service, Inc. modernize the state’s Drain Code. Monday, March 22, 2004 Web Site: http://www.mirsnews.com Volume XXII, Issue 054 to provide incentives for relocating jobs or violat- Capitol Capsule ing workers’ rights,” Granholm said. “This direc- Value Of Directives Questioned tive is a preventive measure to make sure that Gov. Jennifer GRANHOLM signed two Michigan is in alignment with recent changes in executive directives that Democrats claim are federal law regarding restrictions on the spending designed to keep jobs related to state government of federal funds.” contracts and services in Michigan. The other directive, 2004-3, gives preferences The two directives are modeled after house to Michigan-based job providers in the state bills, HBs 4940, 5080 and 5081, which the House government contracting process and requires the Democrats touted two weeks ago in news confer- Department of Management and Budget (DMB) to ences at various sites (See MIRS March 8). consider whether or not a bidder is engaged in exporting jobs or using an offshore tax shelter However, at that time when reporters asked when determining if a bidder’s proposal provides about specific aspects of the bills, the Democratic the best overall value to the state. lawmakers said the details had yet to be worked out. Presuming that those details have now been According to Bill NOWLING, spokesman for worked out for the executive directives, there is Senate Majority Leader Ken SIKKEMA (R- some question about what effect, if any, they Wyoming), the concept behind the directives would have when practically applied. misses the mark. Executive Directive 2004-2 prohibits state “The issue we have is about making Michigan departments and agencies from giving financial more competitive so we can bring more jobs here,” assistance to U.S.-based companies so they can Nowling said. “First of all we’re skeptical that [the relocate production out of the country. It also directives] will actually be instituted, and second, we prohibits departments and agencies from spending wonder whether they’ll have any effect if they are. state-appropriated funds to induce a business They seem to represent what’s already in place.” located in Michigan to relocate out-of-state, if Chuck HADDEN, Vice President of govern- shifting production elsewhere will reduce jobs for ment affairs for the Michigan Manufacturers Michigan workers. Association (MMA), also wondered about the Finally, the directive also will prohibit state practical value of the directives. departments and agencies from providing assis- MIRS Inside tance for any program, project, or activity contrib- uting to the violation of internationally recognized 3 Can The Drain Code Be Saved? workers’ rights. 4 Martin, Waymire Kick Off First Day 5 DeVos Bites Back On Jobs In the news release announcing the directives 6 People Saying Yes to Smoke Tax today, Granholm states that there are no current 7 Kelly: I Would Have Recused examples that would apply to the directive. 7 Granholm To Speak At Penn. Summit 8 Hygienists Get Into Laughing Gas “There are no indications currently that state CAPITOL CALENDAR or federal funds have been used by state agencies 910 Ottawa St • PO Box 19303 • Lansing, MI 48901-9303 • Phone (517) 482-2125 • FAX (517) 374-0949 • E-Mail [email protected] If You Don’t Read Us - You Just Don’t Get It! Page 2 MIRS Capitol Capsule Monday, March 22, 2004 “We’re still studying these directives,” Hadden the Governor of playing politics like that. All I can said. “But so far, we can’t see any situation where say is that it’s happened before.” it would effect any of our members.” Granholm’s news release today pointed out When Granholm signed the directives today that Forrester Research, an independent technol- she was joined by Rep. Steve BIEDA (D-Warren), ogy researcher, predicts at least 3.3 million service the sponsor of HB 4940. jobs and $136 billion in wages will shift outside of the U.S. to low-cost countries by 2015. “Today, I have signed two executive directives that will ensure that Michigan taxpayers are not However, Jack McHUGH, Legislative Analyst subsidizing the export of jobs,” Granholm said. “I for the Mackinac Center for Public Policy, said commend Representative Bieda and his House today that, in spite of all the hype about Democratic colleagues on their efforts to focus on “outsourcing,” the U.S. takes more service jobs how we can stop the practice of outsourcing jobs at from other countries than it exports. this critical time when our economy needs every job we can provide or create for a Michigan resident.” “Most job losses are related not to ‘outsourcing,’ but to the recession and/or burden- Rep. Scott HUMMEL (R-DeWitt) told MIRS some policies of our own government and labor he hoped today’s directive signing wasn’t just a unions,” McHugh said. “Raising the specter of a political move. protectionist trade war should send a shiver through workers here. Michigan is the fourth-largest state in “I’m glad the Governor is focused on jobs,” foreign exports. The governor and her allies are Hummel said. “But I wish she’d do something playing with protectionist fire, and Michigan with a little more substance. This shouldn’t be workers will be the ones who get burned.” about politics, and helping a certain representative out after some bad votes.” McHugh maintains that Granholm’s directives are likely to do more harm to Michigan’s eco- Hummel was apparently referring to Bieda, nomic situation than help it. who, within the last few weeks, has voted against the gay marriage ban and against overriding “Politicians panicking in the late stages of a Granholm’s veto of the abortion judge-shopping jobs recession are the greatest threat to economic bill. Many observers believe neither vote repre- growth and job creation,” McHugh said. “These sents the prevailing sentiments of his district. directives send the wrong message about Michigan’s business climate to potential job provid- “I would rather see the Governor put more empha- ers. The new paperwork mandate will ultimately sis on creating jobs, instead of trying to prevent the mean higher prices for Michigan taxpayers.” loss of jobs,” Hummel said. “We may be losing five jobs for every one we think we’re keeping.” Rich STUDLEY, vice president of govern- ment relations for the Michigan Chamber of MIRS asked Hummel if he believes the direc- Commerce, said the Chamber has trouble taking tives will change anything. the directives very seriously. “Last I looked, if you want to make a reserva- “It would be easier for us to take these execu- tion for a campground in Michigan, you call out of tive directives seriously if the Governor wasn’t state,” Hummel said. “Whether that’s promoting working so hard at exporting jobs out of state,” business in the state . I don’t know.” Studley said. “She’s doing this with her proposed MIRS asked Hummel if there is much political $440 million in tax increases on Michigan taxpay- incentive for Granholm to improve Michigan’ job ers and businesses, and costly, burdensome regula- climate between now and November. tions in areas like ergonomics.” “I do think the President George W. BUSH However, Barry CARGILL, of the Small would have trouble winning Michigan because of Business Association of Michigan (SBAM), said the the economy,” Hummel said. “I wouldn’t accuse directive, 2004-3 could be “helpful” if done right. Monday, March 22, 2004 MIRS Capitol Capsule Page 3 “It would have to be done in a way where In fact, few, if any, groups are supporting the you’d be sure not to tie the hands of DMB,” new drain code re-write as several different special Cargill said. “It’s important that this doesn’t create interests fight to keep what they have in the 300- a bureaucratic problem. But, it’s important for the page drain code at the expense of “the other guy.” Governor to send this kind of signal.” It’s all in the name of modernization. “It does make sense for the state to give “We’re not rushing anything,” Van Woerkom preferential treatment for Michigan businesses, if said. “We’re a little surprised that people who everything else is equal,” Cargill added. were in support are dropping off, but we’re going to have to turn that around again.” Two weeks ago, when the House Democrats initiated the anti-outsourcing legislation, SBAM Van Woekrom’s effort to re-write the Drain was quick to voice its disapproval. Today, MIRS Code is the fourth since 1996. In 1996, former asked Cargill why SBAM would be more support- Rep. Carl GNODTKE (R-Berrien County) put in ive of the Governor’s directives. a bill, but it was introduced too late for anything to happen to it. “We didn’t like the House Democrats’ propos- als because they weren’t balanced,” Cargill said. Former Rep. Howard WETTERS (D- “They talked about not having high-paying jobs. Kawkawlin) gave it a heave-ho the next year, But many new businesses start out with people holding a ton of task force meetings around the who have lost their jobs and start their own. They state, but the meetings lasted so long that he never may work six months without a salary, but these got a chance to do anything with the bill.