Legislative Report
June 2009
The Fiscal crisis continues in Lansing as the prognosis by the economic experts worsens and state leadership continues to put band aids and salve on the fiscal wounds. The Governor has issued Executive Order 2009-22 which cuts some $350 million in current year spending which leaves state employees and programs as collateral damage. The amount of the anticipated deficit is actually closer to $1.5 billion, but the federal government provided some economic salve for the state’s sores in the way of stimulus money. The stimulus dollars will be used to supplement the Executive Order savings and hopefully prevent further cuts. For now, the bleeding has stopped, but fiscal year 2010 is coming and the state’s economic sores will open again. Is the answer to the problem to get more bandages and salve or seek a more permanent cure for the economically ill patient we call the state?
Interestingly, the branches of government which were not affected by the Executive Order are participating in helping the sick patient-state. Both branches of the legislature are reducing staff and cutting costs and implementing their own version of furlough days. The Senate cuts will total $971,000 plus some $140,000 gained from staff furlough days. The House cuts total $1.28 million in various measures including passing on some of the cost of health care to legislative staff. Legislators are individually deciding whether to have their own version of furlough days. Some are contributing an amount equal to six days pay to charity while others are returning a similar amount to the state. The Lansing State Journal editorially took to task those who are giving some of their salaries to charity because they are not even symbolically trying to address the problem of the state’s crisis. Not to mention they can write off the charitable contribution which state employees cannot do inasmuch as they are receiving an actual reduction in pay. The judicial branch has agreed to reduce its spending by 4%.
The following are some of the bills which were acted upon during the month of May and which may be of interest to retirees/seniors:
Regulation of stranger-oriented insurance policies — HB 4890 defines certain types of illegal insurance policies oriented toward senior citizens. It mandates that any insurance policy must be issued to a person who has an insurable interest and prohibits wagering on one’s life. The bill is intended to address companies which issue a policy to an individual and advance them an amount considerably less than the face value of the policy. The policy is then sold to companies who are betting the insured person will die and the company will gain considerable profit from the purchased policy. These are known as viatical settlement contracts and the intent of this bill is to outlaw a third party gaining from the death of an individual. The bill has passed the House and gone to the Senate committee on Economic Development and Regulatory Reform.
Retention of principle residence exemption under certain conditions when not living in residence- SB 282 — would amend the General Property Tax Act to allow a property owner to retain an exemption for property previously exempt as his or her principal residence if the owner were absent from the residence while under the care of a relative or in a nursing home, home for the aged, or other facility specified in the bill. The property could not be occupied, leased, or used for any business or commercial purpose. SB 141 would do the same as SB 282 if the property owner were absent from the principal residence while under the care of his or her mother, father, sister, brother, spouse, child, stepchild, adopted child, grandchild, step-grandchild or adopted grandchild. The same occupancy conditions would apply to the principal residence. Both bills have passed the Senate and gone to the House Committee on Tax Policy.
Notification to owner of changes in Property Tax Assessment — SB 373 would amend the General Property Tax Act to require that a notice be given to a property owner when an increase in the tentative SEV or the tentative taxable value for the year occurs. Such notice must begin with the words, “Notice of change in taxable and assessed value of you property and information regarding your appeal rights.” The statement would have to be printed in the largest font type contained in the entire notice. The notification document would have to explain the law and provide the home owner with all pertinent information relating to the assessment and the process for appealing assessments. The bill has passed the Senate and gone to the House Committee on Tax Policy.
Foreclosure Mediation bills — HBs 4453-5 are a series of bills which are intended to assist those whose homes are threatened by foreclosure. Under the bills, the lender must send a notice of foreclosure to the homeowner. The homeowner has 14 days after receipt of the notice to request a meeting with the lender. Such a request stops the foreclosure proceedings for a 90 day period. If the homeowner qualifies under federal guidelines for a loan modification and requests one but the lender refuses to offer a modification, the case goes before a judge to decide whether there should be a modification. These bills have been criticized in some quarters because the federal guidelines are so stringent, many homeowners will not qualify for a modification. The bills have passed both houses, gone to the Governor where they were signed and are now Public Acts 29, 30 and 31, respectively.
Modification of fishing license validity period — SB 409 — Currently, fishing license are valid for one year — March 1 of one year through February 28 of the next year unless the license is issued for a limited season. Under this bill, all licenses would be valid from March 1 of one year to February 28 of the next year, or as otherwise provided by order of the Natural Resources Commission. The Department of Natural Resources (DNR) would designate the period of validity on the license or permit. Under a Senate amendment, the bill would require the DNR to report to the legislature on how it would assure the proper accounting and allocation of multiyear license revenue. This would have to be done at least six months before the commission allowed the issuance of a multiyear license or permit. The bill has passed both houses and gone to the Governor for signature.
Transfer of responsibility of retiree health care plan design and implementation — HB 4072 — Fortunately this bill did not receive any action during the month of May. SERA is opposed to this bill which has passed the House and is now in the Retirement Subcommittee of the Senate Appropriations Committee. Our primary objection to the bill is that it has a built in lack of accountability in the decision making process regarding retiree health care programs. Under the bill, the design and implementation is left to the Office of Retirement Services without their being accountable to any policy making or political body. We believe that this function is too important to be left to a faceless bureaucracy. We continue to encourage our members to contact their legislators and express their objection to HB 4072 and respectfully request that the legislator not vote for the bill should it be presented to them for consideration.
Miscellany
Tyco lawsuit settlement — State Treasurer Robert Kleine and Attorney General Mike Cox have announced the settlement of a lawsuit against Tyco, the toy making company, for some $24 million. The case involved the loss of Retirement System invested funds as the result of Tyco misrepresenting its financial position and manipulating its books in order to entice investors. Michigan chose not to join in a class-action lawsuit with other states. As a result, the settlement dollars which will go to the Retirement funds administered by the state, were some fifteen times more than what the class-action settlement dollars would have been.
Senior-oriented website— Attorney General Cox has announced the startup of a website which will provide assistance to senior citizens on issues relating to health care, financial matters, consumer protection and veteran affairs. In addition, the website contains a senior-oriented calendar of events throughout Michigan. The website address is: www.seniorbrigade.com.
Constitutional convention proponents organize— A group in support of a constitutional convention has emerged. The group is ReNew Michigan Convention and is headed by Henry Woloson of Clarkston. It has begun sending e-mails statewide to garner support for a constitutional convention. The question of whether there should be a convention will be on the November, 2010 ballot. The Michigan Constitution requires that this question be put before the voters every 16 year.
State road construction map available— The Department of Transportation (MDOT) has issued a map which identifies the major areas of road construction during the summer months in Michigan. The map, entitled “Paving the Way,” is available at the MDOT Service Centers, Regional Offices, and Travel Michigan Welcome Centers. State travelers are advised to check MDOT’s website for updated information which may not be on the construction map before traveling.
Tracking of local stimulus dollars— Citizens will be able to track the allocation of federal stimulus dollars to the local level. Some $3.8 billion has been allocated to the state, so far, for local projects such as road and bridge improvements. The state makes the allocations to the local level. The website address is www.Michigan.gov/recovery. By visiting the Michigan Economy Recovery Office website, citizens can track the allocations county-by-county. Overall, Michigan ranks 8th in population among the states and is 8th in stimulus dollars received.
Civil Rights offices close— As a result of the Governor’s Executive Order, the Department of Civil Rights has announced the closing of its offices in Benton Harbor, Kalamazoo, Saginaw, Traverse City. This move results in five regional offices remaining open for business: Detroit, Flint, Grand Rapids, Lansing and Marquette.
People in the News
Attorney General Mike Cox; has announced his candidacy for Governor in 2010. He will be among five Republican candidates seeking the office to replace term-limited Governor Jennifer Granholm.
Dave Bing;, a legendary professional basketball player and prominent Detroit businessman, was elected Mayor of the City of Detroit. He will fill the remaining term of the ousted Kwame Kilpatrick. Bing defeated Ken Cockrel who served as Interim Mayor following Kilpatrick’s ouster. Cockrel will return to his post of President of the City Council.
Editor’s note: Alvin Whitfield is former President of the Lansing SERA Chapter and former Chairperson of the Michigan SERA Council and current Legislative Representative for both the Council and the Lansing Chapter. He may be contacted at 1241 Runaway Bay Drive, C-3, Lansing, Michigan 48917; phone 517/703-9666; e-mail: alwhit@worldnet.att.net.
Return to top of page