QUOTE OF THE DAY: “My greatest concern today is that there’s a fire somewhere.”

— Sen. Michael BISHOP (R-Rochester), chair of the Senate Insurance Committee during a hearing on a bill that drew dozens of firefighters.

Michigan Information & Research Service, Inc.

Thursday, May 13, 2004 Web Site: http://www.mirsnews.com Volume XXII, Issue 092

Capitol Capsule “It’s their Governor,” Johnson said. “I really Cig. Tax Hike Next Week think they should come up with 46. But, I’d say a Today, House Speaker Rick JOHNSON (R- reasonable amount would be about the same ratio I LeRoy) told reporters that he expects to bring up had to come up with when Gov. John ENGLER HB 5632, the proposed 75 cents-per-pack cigarette wanted the increase a couple of years ago. I think tax hike, for a vote on the House floor. that was 42 out of 58.” Gov. based her recom- That would appear to translate to about 33 or mended 2004-05 balanced budget, in part, on the 34 Democratic votes. cigarette tax increase, which, it’s estimated, would bring in about $300 million. Polls show the tax Meanwhile, Rep. Mickey MORTIMER (R- hike would not be unpopular. Horton) released a list of $379.5 million in proposed (GF/GP) budget cuts his caucus task On Tuesday, (See MIRS May 11 edition) the force came up with. House Republican Caucus met behind closed doors for three hours discussing HB 5632. These The cuts are as follows: discussions probably weren’t held to coax mem- MDOT bers into voting for the measure, they were more likely held to estimate support and prepare the - $66.7 million through elimination of the Comprehensive caucus for the fact that the issue would soon be Transportation Fund share of auto-related sales tax. - $13 million by shifting of driver license fees going to coming to a head. Transportation Economic Development Fund It seems likely that as long as the Democrats Medicaid put up a reasonable number of votes for HB 5632, there will be just enough spare Republican “yes” - $56 million by eliminating some members of votes to reach the required 55-vote level required optional eligibility groups. for passage. FIA Reporters asked Johnson, who strongly sup- - $14. 8 million by reducing relative payment rate ports the tax hike, why he thinks we need the to day care aides increase in light of the $90 million-plus the state would get from doubling the Detroit casino tax (HB 4612), which passed the House Wednesday, MIRS Inside and the list of cuts Republican lawmakers have 2 JOBS Bills Going To Guv been working on. 3 Speaker On Casino Tax Hike: ‘It’s About Time’ 3 Gov to Nader: Join Kerry Team “We have an $800 million deficit to deal 4 Thomas Opts Out Of Conyers Challenge with,” Johnson said. “It’s going to take more than 5 Doubling Casino Tax Worthy Of Examination the cuts.” 5 Paying For Firefighting Training 6 House Moves Personal Property Exemption MIRS asked Johnson what the minimum HOUSE REPORT amount of Democratic votes would have to be on SENATE REPORT HB 5632. 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 Thursday, May 13, 2004

- $2.3 million by replacing some (GF) day care Otherwise, any other credits fledgling enter- funding with federal (TANF) funds prises will get out of start-up bills is coming out of the generosity of cities, townships or other taxing - $5.4 million by removing some excess Adoption units. The firms would still have to pay sales and Subsidy Program funds. use taxes. - $2.9 million from the Maxey property sale One bill, HB 5342, sponsored by Rep. Glenn - $20 million by reducing the number of FIA STEIL (R-Grand Rapids), likely won’t impact offices in Wayne County anybody at all, according to the Senate Fiscal Agency (SFA) and the Department of Treasury. Corrections The bill gives locals the option to give start-ups a - $14.8 million by eliminating prisoner education pass on an enterprise zone tax that will be phased program out by the time this tax exemption goes into effect. - $6 million by increased utilization of jail beds However, Senate Majority Leader Ken SIKKEMA (R-Wyoming) said that the bills will - $46.2 million by releasing “technical” parole encourage the growth of small firms that have the violators returned to prison for one year or more highest potential of creating future jobs and Addition Reduction options economic growth for because they do ease a business’ tax burden during their first five - $16.9 million through another “early-out” for years of business, which are typically a business’ state employees toughest years. - $20 million by adjusting MEAP accountability as “Eliminating the barriers state government put up it applies to those who graduate with a C to business investment and jobs growth is not a average. This assumes one-third of students Republican or Democrat issue; it’s a priority for every would not meet the new criteria. elected official in Michigan,” Sikkema said. “Govern- - $90 million through a 1 percent cut for major ment cannot create jobs, but it surely can get out of the budget areas and state departments way of businesses that want to create them.” - $12.5 million through cuts to Intermediate The other bills the Senate moved today were the School Districts (ISDs). final pieces to a package that allows two indepen- dent, third-party inspectors make sure Michigan-run forests meet the environmental sniff test. JOBS Bills Going To Guv SB 1023 would create four pilot projects (two What appears to be the final pieces of the nine- in the Upper Peninsula and two in the Lower piece JOBS I package was sent to Gov. Jennifer Peninsula) in which a private company would GRANHOLM today, after the Senate signed off on actually run state forests until 2011 in such a way minor House changes to the bills that give tax breaks that it will meet the muster of these new third- to struggling start-up companies and lets a private party inspectors. company manage four state forests for five years. The second bill, SB 1024, expands the state’s The Legislature gave its unanimous approval forest finance authority to include a logger, a to the 11 bills that give small, struggling start-ups private forest owner, someone in the wood prod- a pass on the Single Business Tax (SBT) and ucts industry, someone from the non-industrial allows locals to give these same companies a pass private wood industry, a hunter and a forest expert. on property taxes and several other assessments. Both bills received the same level of opposition According to the House Fiscal Agency (HFA), the they did the last time they were before the chamber. only hit to the General Fund is the estimated $2 million SB 863 and HB 5331 in lost Single Busi- ness Tax proceeds. Thursday, May 13, 2004 MIRS Capitol Capsule Page 3

Speaker On Casino Tax Hike: Martin said doubling the Detroit casino tax ‘It’s About Time’ would be a damaging step backwards. Today, House Speaker Rick JOHNSON (R- “This bill passed because the House is anti- LeRoy) described the version of HB 4612 the Native American, anti-city of Detroit, and doesn’t House passed Wednesday as “a good bill” and said care if jobs are lost as a result,” Martin said. “it’s about time” the Detroit casinos start paying “When you’re contemplating a multi-million their fair share. investment (as the casinos have been), the idea of doubling the tax is a huge problem.” HB 4612, which would double (from 18 to 36 percent) the amount of state tax Detroit’s three The initial purpose of HB 4612, which was casinos would be required to pay, was passed by part of the original racino (a.k.a. agriculture the House Wednesday on an 85-20 vote. enhancement) package, was to permit casinos to offer simulcast horse racing on their premises. Johnson said that the legislation would bring That portion of the measure has remained in the in nearly $100 million additional revenues to the bill, with some modifications. state. The official estimate was around $90 mil- lion, however such estimates tend to err on the Johnson was asked if it’s hypocritical for the lower side. casinos to be identified with an anti-gaming expansion movement. “Don’t you think it’s time that we got our fair share?” Johnson asked reporters rhetorically “I’ll say it is,” Johnson responded. “They’re “They’re (the casinos) not building hotels. They’re out there gathering signatures so they can create a not doing things they promised. I think it’s time monopoly for themselves.” they put up their share.” Martin said the petition drive is for a “common MIRS asked Johnson if he thinks the legisla- sense” approach to gaming that would empower tion stands a good chance of passing in the Senate. voters to decide the issue. He said he hadn’t discussed the issue with anyone “It just says the voters would decide like they in the Senate yet. However, almost simultaneously did with our (the Detroit) casinos,” Martin said. as Johnson was speaking, Senate Majority Leader “We had to get local approval in1994 and then Ken SIKKEMA (R-Wyoming) was releasing a statewide approval in 1996. Across the state when statement to the effect that he believes HB 4612 new casinos are proposed they go to the locals for deserves serious consideration. (See related story). approval. That’s the place to do it. They’ve got it However, Roger MARTIN, of Martin right. The place to do it isn’t here (in the Legisla- Waymire Advocacy, which represents the three ture). Just like with the Lottery, they’ve shown Detroit casinos, said there’s no validity to the they can’t be trusted.” Speaker’s complaints. Under HB 4612 the additional revenues would “If the Speaker has some power over the 6th be allocated as follows: 29.6 percent would go to the circuit court, it would be great if he could get them City of Detroit, 47.5 percent would go to the School to act so that we could build those hotels,” Martin Aid Fund (SAF), and the remaining 22.9 percent said. “He knows there’s been a lawsuit going on would be dumped into the General Fund (GF). for the past five years over that.” Martin said the Detroit casinos have exceeded the promises they made in their development agreements. Gov to Nader: Join Kerry Team Concerned that Ralph NADER could cost her guy “We’ve exceeded the promises in regard to the presidency, Gov. Jennifer GRANHOLM today hiring residents and growing business with tar- called on the third party candidate to huddle with the geted vendors,” Martin said. “Crime has gone John KERRY camp to work out their differences so down and everyday we (the casinos) bring 40,000 that Nader could “join the Kerry team.” people in (to Detroit).” Page 4 MIRS Capitol Capsule Thursday, May 13, 2004

Granholm and other Democrats fear that Nader Meanwhile, Rep. Mickey MORTIMER (R- could steal votes away from Kerry this year much Horton) drew a parallel with the 1992 race for presi- like he did from Al GORE four years ago, thus dent. He is hoping Nader takes votes away from helping to re-elect President George W. BUSH. Kerry just as third party candidate Ross PEROT did to former President George BUSH 12 years ago, The possibility became more real in Michigan which put Bill CLINTON in the White House. yesterday when the Reform Party threw its support behind Nader, meaning that he could run under Mortimer said the current president may not their flag in Michigan, thereby not needing to make a financial contribution to Nader, but “He collect the signatures to appear on the presidential might send a thank you note.” ballot as an Independent candidate. Sen. Virgil BERNERO (D-Lansing), master Nader Spokesman Kevin ZEESE said there’s of the pithy sound-bite, offers this: Nader “needs been no decision on whether to go that route or to grow up. Grow up and go back to battles of not. The campaign is in discussions with the local old. Stay off the presidential ticket,” Bernero Reform Party, but the signature collection efforts warms to the subject. “You’re not doing anybody are on-going and “going well.” any good Ralph. Go home!” “Oh, heck it bothers me,” Granholm said. “I (Contributed by Senior Correspondent Tim wish he were not in. Every poll that you look at SKUBICK.) shows he siphons votes from John Kerry...I think this is serious business. This is going to be a very close election.” Thomas Opts Out Of Conyers Challenge Her solution is to get Nader out of the race by Sen. Buzz THOMAS (D-Detroit) told report- bringing the two sides together to “resolve what- ers today that he would withdraw from the 14th ever issues that Ralph Nader believes that he’s got District Congressional race, a move that gives on his plate so that he could join the Kerry team.” U.S. Rep. John CONYERS (D-Detroit) a crack at 21st term. Nader has given no indication that he’s willing to do that. He said he’s in the contest to Calling himself the future of the Democratic give voters an alternative candidate because there Party, Thomas seemed to indicate that he would is not much difference between the GOP and make another crack at the U.S. House, but he gave Democratic nominees. no indication when that would be and whether that would mean he’d eventually challenge Conyers. “If you really want to see change and you know that you may be the impediment to that Thomas cast aside speculation that his en- change, you know, really, the greater part of valor trance into the race was a political payback for would be to step out,” she said. Conyers running his wife, Monica CONYERS, against him in the then-open 4th Senate District in Other Democrats are raising their concerns, too. 2002. Rather, he said he entered the race was to Rep. Jack MINORE (D-Flint) said Nader has raise the debate on issues involving “all of the” a long history of doing good things, but “now he’s 14th Congressional District — job creation, eco- a disaster for the country and he’s on an ego trip.” nomic development and health care. Senate Minority Leader Robert EMERSON The comment insinuated that Conyers isn’t (D-Flint) said Nader could hurt the ticket, but he familiar with the Downriver portion of the newly doesn’t think Nader will determine the outcome in drawn 14th Congressional District and that he can the hotly contested race in Michigan. He said he be expected to be seen on the campaign trail believes the economy is in such bad shape, that pumping Democratic presidential candidate John Kerry will carry the day in November. KERRY all over the district. Thomas was one of the first Michigan Democrats to jump aboard the Kerry bandwagon earlier in the primary season. Thursday, May 13, 2004 MIRS Capitol Capsule Page 5

“I think it’s one thing to be a constant critic of Sikkema: Doubling Casino Tax A Serious policies of the Bush administration,” Thomas said. “It’s another thing to offer alternatives and solu- Proposal Worthy Of Examination tions to them. And I think we need to do a better If you’re operating one of three Detroit com- job of offering solutions.” mercial casinos, watch your wallet. The leader of the believes a House passed Instead of running for a seat in D.C., Thomas said proposal doubling from 18 to 36 percent the tax on he’d be focusing his efforts on school reform and Detroit casinos is worth looking at. insurance reform in the legislature, which he said was another reason why he opted last night to pull out of “This is a serious proposal and it is worth the race. Thomas said he and Conyers talked earlier in looking at further. This is a legitimate source of the day and the two have agreed to work together on revenue for the state of Michigan and the Senate is some health care issues and Medicare policy. going to seriously explore all options to balance the budget,” Senate Majority Leader Ken Asked if he thought Conyers had been in SIKKEMA (R-Wyoming) said today in response Congress too long, Thomas, a former House to action the House took yesterday on HB 4612. Minority Leader, said “I think, over time, you get too comfortable in a position. While I don’t With that bill, the House doubled the tax on advocate term limits, I think there has been an the three casinos. According to Sikkema, given upside to term limits in that you get freshness and the state’s budget woes it’s worth looking at. new blood and new ideas. “The proposal is one of the many options “I wouldn’t say that in any way he’s gotten stale, currently under consideration to close the state’s but I think there are other issues that other political funding imbalance,” Sikkema said. leaders need to stand up and start championing.” In remarks to the media, representatives of the As far as his relationship with Conyers, Tho- three casinos have warned that a doubling of the tax mas noted that the two don’t really have one. He would likely kill the construction of three perma- wasn’t happy when Monica Conyers ran against nent casinos and the new lodging rooms the city him in 2002, but “everybody has a right to run for needs for such upcoming events as the Superbowl. office, and I have to remind myself that.” It’s estimated that the change would bring in an Had he opted to stay in, Thomas said “it would additional $90 million to state coffers. Of the have been an interesting race.” Indications from the additional revenues, 29.6 percent would go to the Downriver area of the district are that the constituents City of Detroit, 47.5 percent would go to the School there were ready for some new blood, however 98 Aid Fund (SAF), and the remaining 22.9 percent percent of his petition signatures came from Detroit. would be dumped into the General Fund (GF). “We would have built a very interesting coalition.” Don’t expect to see a Senate hearing on HB Thomas said he doesn’t hold any ill-will, 4612 however, the Senate Majority Leader said he rather this was about leadership and the belief that plans to keep the measure on the calendar to the he has something to contribute. In their conversa- Senate can take it up “on a moment’s” notice.” tion today, Thomas said the two have no discus- sions about him replacing Conyers whenever the veteran congressman opts to retire. Paying For Firefighting Training The new civil rights issue is about economics, A packed room of firefighters watched a Thomas said, and there needs to be a greater empha- Senate panel today take testimony on three bills sis on entrepreneurism and accumulating wealth. that would create a new $10.6 million insurance “That’s the greatest way to participate in our Ameri- policy assessment to create a permanent and more can culture…I want more black millionaires.” He stable pot of money for firefighter training. said he sees himself and U.S. Rep. Harold FORD In exchange for collecting the new assessment, being role models of that era just as Conyers was a the insurance companies would get a $10.6 million role model during the civil rights era. Page 6 MIRS Capitol Capsule Thursday, May 13, 2004 break in their Single Business Tax, a scheme that In other action today, the committee voted out the Department of Treasury and the insurance a bill, HB 4127, sponsored by Rep. Ken industry had all sorts of problems with. DANIELS (D-Detroit), that mandates insurance companies cannot tell their customers that they The Senate Insurance and Financial Institu- must get their car fixed at a repair shop that the tions Committee didn’t move SBs 905-907 and insurance company owns. may make changes to the bills before the commit- tee thinks about moving them in the future. While the insurance company that owns a repair shop can suggest the option, the customer is But both the fire chiefs and firefighter union under no obligation to use the garage. Moving groups were united in their message that a stable that bill is basically finding middle ground on an source of funding needs to be found so firefighters issue involving Allstate Insurance, which owns the can keep up with the new unfunded requirements Sterling Auto Body Shop group. that have been pushed on them since the Sept. 11, 2001, attacks. Repair shops are concerned Sterling and these types of shops will try to do things on the cheap so Richard SZCZEPANEK, vice president of the the insurance company doesn’t end having to pay Michigan Association of Fire Chiefs, said much of as much in repair costs. The committee had the homeland security money goes to the emer- considered SB 819, which would have banned gency management groups, leaving the firefighters insurance companies from owning these repair to scratch and claw for what they can get. shops, but Daniels’ bill was passed instead. He was backed up by Paul HUFNAGEL of the Professional Fire Fighters Union, who said local firefighters are feeling the brunt of House Moves Personal Property Exemption Michigan’s sad state budget situation. Funding for Today, with a 59-46 mostly party-line vote, the fire departments in Grand Rapids, Ann Arbor and House passed HB 4234, a measure to create throughout the state is getting cut and the people property tax exemptions for very small (in terms who “risk their lives to save ours are feeling it.” of valuation) businesses. “This is for the protection of our firefighters,” The bill has gone through several manifesta- Hufnagel said. “Without safety standards and train- tions since the idea was initially touted by Senate ing, we’re putting all of our firefighters in jeopardy.” Majority Leader Ken SIKKEMA (R-Wyoming) in Nobody argued the cause was unworthy. The January as a small business exemption on the first problem is the funding mechanism in the proposed $10,000 of personal property. bills, according to Eric HENNING of the Ameri- A few weeks later, the measure was included can Insurance Coalition. as a key measure in the economic plan forwarded Basically, what is being called for is a “hidden by legislative Republicans. (See MIRS Feb. 18) tax” on home, auto and commercial insurance However, when the bill first appeared in the carriers. The policy holders see no direct benefit House Tax Policy Committee (See MIRS Feb. 25) it from this charge, and, in general, this is not a was not in the form Sikkema had envisioned, and proper function of an insurance company. committee members, as well as witnesses, pointed “This isn’t about training firefighters, it’s out that it would cost local units of government about how you support the General Fund,” hundreds of millions of dollars in revenue. Henning said. In order to get it out of committee, HB 5632 Department of Treasury’s Scott SCHRAGER was changed to a bill that would phase-in the said he, too, didn’t want to question the merits of exemptions, although it appeared clear at that time what is being proposed. Rather he questioned that this form of the measure probably wouldn’t whether paying for the training through SBT tax survive either. It didn’t. credits is the right way to do this. Thursday, May 13, 2004 MIRS Capitol Capsule Page 7

Under the version that passed the House today, misrepresented the content of their foods or cases the exemptions are those businesses valued under in which food companies knowingly violated law $7,500 State Equalized Valuation (SEV). to hurt consumers. The anticipated fiscal impact of the bill would Arguing that Michigan should follow the be $29.9 million in local government ($13.3 mil- example of seven states that passed similar laws lion) and state ($10.6 million to SAF) revenues. including Tennessee, which passed such a law just this week, Palsrok promoted his legislation as state Democrats didn’t miss their chance to criticize the protection against individuals who would bog bill today, although there’s little doubt that HB down the judiciary with frivolous lawsuits. 4234will be changed again when it reaches the Senate. “Making healthy lifestyle choices and making “This won’t result in the creation of a single those choices about what you eat as an individual is job,” said Rep. David WOODWARD (D-Royal what we should be doing as a society and not trying Oak) pointing out that the exemption would be to blame others for our problems,” Palsrok said. worth only a few hundred dollars per business but could result in lay-off of government employees. Palsrok added that the legislation also has the benefits of protecting restaurant service jobs and Rep. Michael SAK (D-Grand Rapids) told his keeping insurance rates low for companies that colleagues that the exemptions would come to could otherwise be sued. about $390. With eleven votes of approval, the legislation “That’s not enough to add staff,” Sak said. met little resistance in committee. Rep. Leon In response Rep. Chris WARD (R-Brighton) DROLET (R-Macomb Twp.) echoed Palsrok’s invited the Democrats to offer amendments that comments that the bill would prevent individuals would increase the exemptions. from blaming others for personal problems. MIRS asked the sponsor of HB 4234, Rep. “This is reactionary legislation as a result of Glenn STEIL, Jr. (R-Grand Rapids), if he expects the cult of victimhood that has been pushed by the the Senate to change the bill. left for thirty years,” Drolet said. “That’s what my hope is,” Steil said candidly. Rep. Jim HOWELL (R-St. Charles) said he “I’m hoping they’ll change it back to something favored the legislation in part to help lawyers who closer to what it was in the beginning.” did not want to represent clients in frivolous suits. Steil added that he also hopes the state can ulti- “This type of legislation is good for lawyers mately get rid of the personal property tax altogether. from the standpoint that I do not want my brethren, as a policy matter, filing these types of lawsuits,” Howell said. “It’s not good for our reputation.” Fast Food Bill Fast Tracked To House Floor Rep. James KOETJE (R-Grandville) also If you decide to have a Big Mac and fries threw in his support for the bill, but qualified his everyday for lunch for the next month, you might endorsement by questioning whether the law gain a few pounds, but you won’t be able to take should include a provision allowing the attorney McDonald’s to court about it if a new bill that the general to sue companies for obesity problems to House Commerce Committee reported out today protect the general health of the state. becomes law. Despite approval from the majority of commit- Rep. David PALSROK (R-Manistee) brought tee members, a handful of Democratic representa- to the committee HB 5809, which would grant tives, William O’NEIL (D-Allen Park), Joseph legal immunity to food companies against a claim RIVET (D-Bay City), and Steve TOBOCMAN by an individual that long-term consumption of (D-Detroit), resisted the bill with nay votes. Rivet their products caused his or her obesity. The was the most vocal of the Democrats who opposed legislation exempts cases in which companies the legislation. Page 8 MIRS Capitol Capsule Thursday, May 13, 2004

Rivet said that Michigan’s product protection “In the large number of cases, it will be no laws provide adequate coverage and that the different from the mortgagor’s or homeowner’s federal government is responsible for handling the perspective,” Richner said. issue further. To present SB 1116 to the committee, Kirk “I’m trying to decide why this bill has to be HANNA spoke on behalf of Sen. Gerald VAN passed when if you look at other sections of the WOERKOM (R-Muskegon), who sponsored the law, I think you’re covered,” Rivet said. bill. Hanna argued that the government should not levy taxes on grants for small business research Disapproving the haste with which Chair Rep. since the money comes from tax dollars. He Clark BISBEE (R-Jackson) conducted the meet- added that the bill would also encourage new ing, Rivet told MIRS that Bisbee’s management of business in Michigan. the committee hampered the political process. Most individuals who brought testimony to the “These are truly the start up funds that innova- committee had only seconds to speak, which tive businesses rely on before they even have a Bisbee said was to ensure that the committee patent on a product,” Hanna said. adjourned before the House went into session. In the few seconds he had to address the issue, Michigan Lawsuit Abuse Watch President Robert Senate HAL Subcommittee Reports DORIGO JONES responded to the assertion that Budget To Full Approps. Palsrok’s bill reiterates law already in place by The Senate Appropriations Subcommittee on noting that the government previously enacted History, Arts and Libraries (HAL) today deleted similar laws protecting the ski industry and the the remaining $525,000 in General Fund dollars horse industry. going to the Detroit Public Library and to the The committee additionally reported two other Grand Rapids Public Library. bills that inspired less heated debate: HB 5859, In her budget, Gov. Jennifer GRANHOLM which would allow mortgagors to begin a foreclo- had recommended the General Fund dollars to sure process before advertising it, and SB 1116, replace Federal Reed Act funds used to provide which would exempt from taxable income govern- supplemental support for the two libraries in the ment grants to small businesses used for research. current fiscal year. Those funds won’t be avail- Rep. Alexander LIPSEY (D-Kalamazoo), who able next year. Granholm had recommended $1 introduced HB 5859, said that he initiated the bill so million for the Detroit Public Library and that mortgagees have more time to restore a property $125,000 for the Grand Rapids Public Library. if a register of deeds or a county office is too backed When HB 5519 the FY 2005 appropriation bill up to respond to a foreclosure notice quickly. for HAL went through the House, Detroit funding “(The bill) will free up a number of actions to was reduced by $500,000 and Grand Rapids by hopefully allow people to more rapidly begin the $25,000. The Senate Subcommittee’s action today foreclosure process,” Lipsey said. “It certainly zeroed out those expenditures. assists the creditors, but it also assists the process in Instead, Appropriations Subcommittee Chair that you can catch some of these mortgagors from Sen. Tom GEORGE (R-Kalamazoo) increases getting so far behind that they can’t make it up.” spending on several items: In testimony supporting the bill, Andrew RICHNER of the law firm Trott and Trott said - State Aid To Libraries was increased by that no other state but Michigan requires adver- $405,000 by the House, George added an tisement of foreclosure in a local newspaper additional $100,000 to this line item. before the process begins, adding that Lipsey’s bill - Arts and Cultural Grants were increased by the would rarely have negative effects on individuals Senate Subcommittee by $100,000. involved in the foreclosure. Thursday, May 13, 2004 MIRS Capitol Capsule Page 9

- A new Historical Grants line item was added to as we can find.’ For the next 20 years Michigan the budget to provide $25,000 for Michigan witnessed the greatest investment in public higher History Day and $15,000 for the Arenac County education that has ever been seen.” Historical Society Charity Lighthouse. Murray told the committee that, over the past - The subcommittee also increased spending for 20 years, state aid per student at Grand Valley the Film Office by $2,400. State has declined by $5 per student. As reported this morning, HB 5519 advances to Youngblood emphasized that as the smallest the full Senate Appropriations Committee totaling state university in Michigan, Lake Superior State $58.7 million. That’s $32,400 in General Fund faces considerable diseconomies of scale. spending below Granholm’s recommendation. “We perform almost all of the same adminis- trative activities as other universities do. We certainly meet the same government mandates. Investing in Higher Education We have the same need for technology. Yet our The last five presidents of the state’s 15 four-year budget is significantly smaller, and those kinds of public universities visited the Capitol Wednesday. needs present a significant diseconomy of scale, Like their ten colleagues who preceded them meaning that these fixed costs take a much larger over the past two weeks, the presidents urged the portion of our budget,” she said. House Appropriations Subcommittee on Higher Youngblood asked for some breathing room Education to hold the line on state aid for 2005, for the university. but an increase in the state’s share of the cost of higher education is needed in the future. “We do not have the same capacity to continue to absorb reductions. Reductions are not easy at any Appearing before the committee were Mark university, but, at the smallest university, our capac- MURRAY, president of Grand Valley State Uni- ity to absorb them is very, very limited,” she said. versity, Dr. Betty YOUNGBLOOD, president of Lake Superior State University, Dr. Michael ROY, Roy said that, for the current fiscal year, interim-president of Northern Michigan Univer- Northern Michigan University has made over $6 sity, Dr. Irvin REID, president of Wayne State million in reductions, implemented $3 million in University, and Dr. Judith BAILEY, President of cost avoidance measures, and eliminated 73 Western Michigan University. positions. Next year the university will cut its budget by an additional $3.3 million, implement Murray told the committee that the challenges another $1 million in cost avoidance measures, they face today (job losses, a challenging fiscal and eliminate another 69 positions. climate, tight budgets for several years in a row) are not new. Reid told the committee that, while the univer- sity will support the governor’s tuition restraint He said, “I take you back to 1956, almost 50 pledge, doing so will be painful. years ago, to former Gov. G. Mennen WILL- IAMS’ State of the State address. Williams said, “The outlook for Wayne State University in ’10,000 men and one foundry and engine plant are Fiscal Year 2005, with tuition restraint, shows a now turning out the same number of automobile budget gap of approximately $17 million. This engine blocks that were formerly turned out by will limit our ability to meet our most critical 23,000 men.’ They were at a crisis in the 50s with needs for 2005 and, once again, require a signifi- job losses and tight budgets. They knew there cant level of sacrifice. We will always seek to were hard economic times ahead if they didn’t limit the impact on our students. However, it is have a plan. What was their plan? Gov. Williams not unreasonable to expect that, if the present said, ‘We’re going to require higher skills and situation continues, we will reach a point at which more skills than were ever possessed by any some compromise in quality, however unfortunate people anywhere. We’ll need as many Einsteins and undesirable, will occur,” he said. Page 10 MIRS Capitol Capsule Thursday, May 13, 2004

Bailey said that state support for Western that missed their registration deadlines because Michigan University has dropped from 70 percent their vehicles were in storage. The vehicles still in 1979 to 40 percent today. Next year Western had comprehensive insurance and were not being will cut nearly $12 million from its budget, as a driven illegally because they, simply, weren’t result of its tuition refrain pledge, resulting in the being driven. loss of 119 positions and affecting the livelihood of 155 employees. “These drivers have been responsible and kept up on insurance yet they are still being assessed late charges for their seasonal vehicles,” Jelinek said. “We should not punish these drivers for Granholm Signs Four House Bills Into Law storing their cars over the winter.” Gov. Jennifer GRANHOLM today signed the following four House bills into law: The bill was referred to the Senate Transporta- tion Committee. HB 5427 (Public Act 99) sponsored by Rep. Matt MILOSCH (R-Lambertville). The bill would clarify that a person does not need to obtain Early Withdrawals a Carrying Concealed Weapon (CCW) license prior to purchasing, owning, carrying, possessing, A review of the current candidate filing list at using, or transporting an antique firearm. The noon on Thursday showed a number of candidates language added has been named the Janet (other than Sen. Buzz THOMAS — See related KUKUK Act, after the late Rep. Janet KUKUK story) that have withdrawn from their respective who died from breast cancer. races already. The deadline for candidates to withdraw is 4 p.m. Friday. HB 5428 (Public Act 100) sponsored by Rep. Fran AMOS (R-Waterford) which would remove 5th House District: the provision from the Handgun Licensure Act that Republican Vicky STEFANOW was disqualified. requires a individual to take an antique firearm in to a law enforcement agency for a handgun inspection. 55th House District: HB 5429 (Public Act 101) sponsored by Rep. Democrat Colleen JAN withdrew leaving Daniel ACCIAVATTI (R-Chesterfield) to exempt incumbent Republican Rep. Matt MILOSCH to antique firearms from the sale, bartering and face off against Democrat Kathy ANGERER transfer provisions of the Handgun licensing Act. 57th House District: HB 5648 (Public Act 102) sponsored by Rep. Republican Jim VAN DOREN has withdrawn Jim HOWELL (R-St. Charles) which would revise leaving three Republicans and two Democrats in procedure for payment of minimum state cost by the race to replace Democratic termed out Rep. juveniles to allow a juvenile who is not in willful Doug SPADE (D-Adrian). default of the payment to petition the court for a remission if the amount due will impose a hardship 64th House District: on the juvenile or his or her immediate family. Democratic Robert L. McNITT has with- drawn from the race to replace term limited Rep. Clark BISBEE (R-Jackson) leaving three Republi- Let’s Waive Fees On Stored Cars cans and one Democrat in the race. The new $10 fee for those who register their tags 69th House District: late would be waived for vehicles that were in storage when the registration was due, under a bill introduced Republican Martin BLANK had withdrawn today by Sen. Ron JELINEK (R-Three Oaks). leaving incumbent Rep. (D- East Lansing) to face off against Republican Angela SB 1192 is in response to complaints of late LINDSAY in the November general election. fees the Secretary of State handed down to drivers Thursday, May 13, 2004 MIRS Capitol Capsule Page 11

96th House District: Governor’s Appointments Republican Vaughn J. BEGICH has with- Gov. Jennifer GRANHOLM today announced drawn leaving two Republicans and three Demo- the following appointments: crats in the race. Agriculture Marketing and Bargaining Board: 105th House District: Timothy O. BRIAN, of Interlochen in Grand Republican Greg DEAN, withdrew from Traverse County is appointed for a term expiring the race leaving behind six Republicans and Sept. 1, 2004 and succeeds Sandra L. GESLER, two Democrats. who resigned. Frederick J. TUBBS, of Hart, has been reap- pointed for a term expiring Sept. 1, 2007 Theology Scholarship Bills Move Today, the House passed a package of bills (SBs 625-628, and HB 5455) that would permit Talk About Talk the state to award scholarship and grant money to The following are highlights of Michigan college and university students enrolled in theol- public policy talk shows for Friday, May 7, 2004: ogy, divinity, or religious education programs. Opponents of the bills argued that they represent - “Off The Record With Tim SKUBICK,” which a violation of the state constitution’s prohibition airs at 9 p.m. on WKAR TV 23 will feature State against use of taxpayer dollars for religious purposes. Superintendent Tom WATKINS as guest. The panel will include Chris CHRISTOFF of The “The constitution creates a bright line of demar- Detroit Free Press, Peter LUKE of Booth cation,” said Rep. Julie DENNIS (D-Muskegon). Newspapers, and Inside Michigan Politics However, the bills all passed with 80-plus Editor Bill BALLENGER. “yes” votes. - “Capitol Pressroom with Rob BAYKIAN,” which is heard on 12 stations of the Michigan Radio Network (MRN) will feature as guest this GOP Begins “Endangered” Tour week Family Independence Agency Director, While Democrats are introducing resolutions Marianne UDOW. denouncing her recent comments about high wages, Michigan Republican Party Chair Betsy DeVOS isn’t let the criticism slow her down. On This Day In Michigan History On March 13, 1917, in a hearing before a On Friday, DeVos and the Michigan Republi- Michigan House of Representatives Committee on can Party will kick off a tour of sport utility Taxation, Attorney General Alexander vehicles and light trucks that will crisscross the GROESBECK, said, “The history of the impor- state. The SUVs and trucks will be to represent tant utilities in Michigan is a history of exploita- the American workers who “will be out of a job if tion, overcapitalization, and mismanagement.” John KERRY is elected president.” —Source: Mich-Again’s Day. The endangered tour hits Lansing’s Oldsmobile park on Friday at 10 a.m.

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