Legislative Report
October 2009
There are many adjectives that could be used to describe the people, the process, the leadership and the outcome resulting from the time spent by legislators and the Granholm administration in trying to pass a budget for 2010. Not very many of them would be printable in this article. Reminiscent of 2007, the state of Michigan shutdown for less than two hours on Thursday, October 1, 2009. The reason, of course, is legislative failure to pass a budget by the end of the fiscal year. They even failed to pass a temporary continuation budget before the clock struck twelve. By the time the clock struck 2 a.m., we did have a temporary budget to get us through the remainder of the month of October.
For the next several months, media pundits, plain citizens, and political scientists will analyze why this happened. It certainly is not attributable to legislators not knowing the existence of the deadline. I’d like to offer my reasons the legislature failed to perform one of its most vital duties in a timely manner. Tops on my list would be term limits, partisan politics, individual egos, political ambitious politicians, and lobbyists. These five factors combined to make those we hold responsible to perform and produce to act very irresponsibly. Unless we as citizens of this state begin holding our political leaders responsible, we will see a repeat of this unconscionable performance in 2010.
Now allow me to get off of my soapbox and tell you what has unfolded in the budget process during September. Half of the appropriation bills originate in the Senate and half in the House. After passage by each chamber, the bills go to the other chamber for consideration and action. The Senate passed its bills rather quickly, cutting some $2.8 million from the original target figure. The House did not pass any bills, preferring to seek additional revenue sources through taxes or stimulus money before taking action. In mid month House Speaker Andy Dillon and Senate Majority Leader Mike Bishop together decided that the House would pass the Senate bills as they were sent over and they would make increases to the Senate version after the start of the new year once they decided where the funding would come from. The last week of the fiscal year was spent with legislative posturing, sending up trial balloons regarding sources of financing increases, passing some of the bills sent over from the other chamber, and legislators being completely perplexed at the lack of leadership in both chambers. Lobbyists were very active trying to protect the interests of those they represent. It appears the major issues were the inability to fund the $4000 Promise Grants for college students, deep cuts in revenue sharing which would significantly impact local governments and the loss of $218 per student for school funding. All of these are very politically harmful cuts which Democrats are not willing to make. When it appeared that the budget would not be wrapped up by midnight of September 30, the Senate passed the 30 day temporary budget which the Governor signed at 1:47 a.m. on October 1. As of this writing, the House is trying to come up with revenue increases which will be palatable to the Republicans. November 1 is right around the corner.
Governor Granholm, Speaker Dillon, and Majority Leader Bishop did not distinguish themselves during this entire process. It was certainly not their finest hour. The House Freshmen Caucus is seeking to get on the ballot a constitutional amendment which would dock legislators pay for every day after July 1 that the legislature fails to have a budget passed and signed. The significance of the July 1 date is that this is the date when municipalities’ fiscal year starts and school districts are finalizing their budgets for the coming school year.
The other major issue which was the focus of much attention of legislators, public officials statewide, and union officials was the Dillon health care pooling proposal for all public employees in Michigan. After much pre-publicity, the so called Dillon proposal now has been embodied in HB 5345. Public hearings are currently being held on this controversial proposal. Many prominent individuals and conservative organizations have come out in support of the concept of placing all public employees in one pool for the determination of their health care benefits. Mr. Dillon indicates some $900 million would be saved by doing this. Unions and those familiar with public employee benefits and the attendant problems associated with the funding of them are skeptical about the soundness of the rationale behind the concept.
Bob Kopasz, SERA Council Chair, and/or I have attended every meeting of the Retiree Health Care Reforms Committee which is conducting hearings on HB 5345. Basically, we are trying to get a better understanding of how the pooling concept would work and whether the savings claimed are real. Inasmuch as the bill is written from the standpoint of active employees, it is difficult to know exactly how retirees will be affected and the impact this bill will have on retirees. There are many unanswered questions. Bob is scheduled to testify before the Health Care Reforms Committee on November 5. We are in the process of preparing our testimony which will consist largely of questions seeking clarifications to the contents of the bill.
One issue that could derail the entire concept was pointed out through testimony of a representative of SEIU. He questioned whether the concept of pooling and the involvement of an appointed committee to oversee the program is legal inasmuch as the state constitution grants broad and exclusive authority to the Michigan Civil Service Commission for state employees compensation and related benefits. As a result of this testimony, the Committee asked for a legal opinion from the Legislative Service Bureau (LSB). The legal opinion issued by the LSB appears to support the claim of the union representative. The Health Care Reforms Committee will have to address this opinion and determine the impact it has on the bill and whether it is possible to include state employees and retirees in the pool of public employers. Whether the Committee will request an Attorney General’s opinion is yet to be seen. It appears very unlikely that HB 5372 will become law very soon. We will continue to monitor the hearings.
Even though the 2010 budget and HB 5372 were the focal points of most legislative activity, early in the month there was committee action on several bills which may be of interest to seniors/retirees. A brief explanation of these bills follows:
Hospitals providing flu vaccine for seniors — SB722 is a bill which would require hospitals to establish an influenza immunization policy, beginning October 1, 2010 and require hospitals to offer the vaccine to all patients who were at least 65 years old or otherwise at risk, under certain circumstances. This provision, to be added to the Public Health Code, would be repealed on April 1, 2012. The policy would contain procedures to document that the vaccine was offered and document if it were refused by any patient who was admitted for at least 24 hours. The bill has been passed by the Senate and gone to the House Committee on Health Policy for consideration.
Energy Assistance and shut off protection for low income individuals — HBs 4649, 50, and 55 and SBs 353 and 555 are bills which address the issue of low income individuals having their utilities electronically paid by the Department of Human Services (DHS), requiring DHS to notify individuals of the rules granting assistance to prevent shutoff, allow DHS to disclose otherwise confidential information to public utility companies, and require public utilities to notify the Public Service Commission of any death or serious injury resulting from the shut off of utility services. The bills have passed in their respective chambers and gone to the other chamber’s Committee on Energy Policy and Public Utilities.
Creation of missing senior alert act — HB 5190— is a bill intended to provide quick assistance in finding seniors who are reported as missing. A “missing senior” is defined as one 60 years of age or older who is reported missing by a person familiar with the missing senior and who is incapable of returning home without assistance. A “person familiar with the missing senior” is that person’s guardian, custodian, home health care aide, holder of power of attorney, or one who knows the missing senior has a medical condition. The law enforcement agency to whom the information is reported would have to prepare and disseminate a report including identifying information, location, etc. Such report would have to be prepared within five hours after receiving notification. The report would have to be distributed to all law enforcement agencies within the jurisdiction of where the missing senior was last seen. When the missing senior is found, the person reporting him or her missing would have to notify the law enforcement agency which was originally notified. The bill was reported out of the House Committee on Senior Health, Security, and Retirement and is on the House floor for consideration.
Identity theft bills — HB4730— 38 are a series of bills which do the following: (1) require restitution be made to victims; (2) require the State Police develop a model form for reporting of identify theft incidents; (3) Specify in statute that identify theft victims are entitled to file a police report; (4) allow victims to file a civil action to recover damages and certain costs related to correct their financial records; (5)Make it a crime to mislead police regarding a suspect’s or defendant’s identity or to use another person’s identity to commit a crime; (6) require certain businesses to establish a written identity theft prevention program and establish a civil fine for a business that knowingly violated the requirement; (7) revise the definition of ”destroy” in relation to data purged from databases and revise circumstances under which personal information contained in the data would have to be destroyed. These bills have passed the House and gone to the Senate where they have been assigned to the Judiciary Committee.
Miscellany
New Executive Order regarding State Library Materials— Governor Granholm has issued Executive Order 2009-43 which is intended to keep the following Library of Michigan Collections in tact: Michigan, Rare Book, and Genealogy. Additionally, electronic services will remain available and the State Library and Historical Center remain open and accessible. The Executive Order mandates that a qualified Department of Education employee be designated as State Librarian. Apparently this Executive Order is in response to the tremendous opposition the Governor received to her previous E.O. regarding the Library.
Michigan Catholic Conference announces its opposition to constitutional convention— Citing the cost of a constitutional convention, the Michigan Catholic Conference announced its opposition to having one. In so doing, the Catholic Conference joins the Michigan Townships Association, the Michigan Education Association, and the Michigan Chamber of Commerce, among others, in opposing a constitutional convention. The current Michigan Constitution provides that every 16 years, the question of whether a constitutional convention should be held must be put on the ballot for voters to decide. Thus the issue will be on the November, 2010 ballot. Expect to see much publicity favoring a constitutional convention as well as opposing one in the coming months.
Proposed constitutional amendment capping benefits of governmental employees— An organization known as “Rescue Michigan” is initiating a campaign to place on the 2010 ballot a proposal to cap the employee benefits for governmental employees. The head of the organization, Leon Drolet estimates such a move would save some $5.7 million. Drolet believes it will take $1 million to get the issue on the ballot. He calls this proposal “an unprecedented and sweeping reform - the game changer our state so desperately needs.” The measure would bring public employee benefits in line with those of private sector employees.
Blue Care Network purchases Physicians Health Plan— BCN has purchased Mid Michigan based PHP from Sparrow Hospital. The purchase is subject to approval by the Office of Financial Institutions and Regulation. The purchase has been questioned because Blue Cross Blue Shield of Michigan has indicated they are losing money on individual policies. Attorney General Cox, a critical watchdog of BCBSM, has raised the purchase as an issue to investigated. He questions whether BCBSM loaned BCN the money to purchase PHP.
Wording for Granholm recall petitions approved — The Ingham County Elections Commission has approved by a 2 to 1 vote language to recall Governor Granholm. Paul Piche, a corrections officer from Omer, made several attempts to get recall language approved before meeting with success. His petition wording essentially states that the Governor laid off 100 State Police troopers while at the same time releasing felons from Michigan prisons, thereby jeopardizing public safety. Mike Hodge, the Governor’s attorney representing her in this matter, has indicated that he will appeal the Election Commission’s decision. Mr. Piche will have to collect 950,314 signatures within 90 days in order to get the issue on the ballot, assuming it is not overturned on appeal. Gathering that number of signatures within a short timeframe takes a tremendous effort.
People in the News
Gloria Schermesser, a former Democratic state representative from Lincoln Park, recently died. She served six years in the late nineties and early two thousands and was known for her fiery floor speeches against Republicans.
Richard Young, a highly respected former thirty year Democratic state representative from Plymouth, died recently at the age of 82. Mr. Young succeeded Dominic Jacobetti as chairman of the Appropriations Committee after Jacobetti was ousted from the chairmanship after the House Fiscal Agency scandal. Former speaker Gary Owen paid Mr. Young a high compliment upon his death: “If there was a legislative hall of fame, he’d be one of the first ones there.”
Senator Gretchen Whitmer of East Lansing has filed the necessary paperwork to allow her to be a candidate for Attorney General. She has indicated that she will make a decision whether to run for her final term as senator or seek the Attorney General position in 2010.
Michael Bouchard, Oakland County Sheriff and a Republican candidate for governor, announced that Secretary of State Terri Lynn Land, will be his running mate in next year’s election.
Representative Rashida Tlaib, a Detroit Democrat who was the subject of a recall effort, survived the first round of that effort when the Wayne County Board of Elections unanimously voted to reject the petition language seeking her recall because it was unclear
Representative Kevin Elsenheimer, Republican Minority Floor Leader from Kewadin, has been awarded a fellowship to the Aspen Institute’s Rodel program. The program is designed to “breakdown partisan barriers and allow office holders to step back from daily responsibilities to consider broader questions of governance.” Twenty four elected leaders from around the country were selected.
Senator Martha Scott, a Detroit Democrat, was elected Vice President of the National Organization of Black Elected Legislative Women.
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.
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