UNDER THE DOME
Capitol Update, October 7 - December 31, 2008
Cynthia Ann Paul
Detroit Police Forensic Lab- Mayor Cockrel will close the Detroit Police crime lab based upon the results of an audit of one of the lab’s divisions (the firearms ballistic testing). This particular division a majority of the employees are uniformed Detroit police officers and these police officers and not our trained forensic scientists caused the in discrepancies in the audit. The Detroit Police Department admitted that the police officers that caused these in discrepancies were transferred to another department and have not been punished and that our forensic scientists are indeed being scapegoated in this matter. Take action at
http://seiuaction.org/campaign/detroitforensiclab to protect the forensic scientists in the Detroit police lab who are SEIU Local 517M members.
Auditor General Financial Report of Department of Corrections- The Auditor General's Report said that the department should work to reduce the number of officers who are allowed to work excessive hours because, besides costing the state money, increased overtime also threatens the job performance of corrections officers, leading to fatigue, lower job performance and less effective management of prisoners. The report further said that the department needed about 27 percent more overtime in 06-07 because it incorrectly calculated staffing needs. After the audit period, the department did hire an additional 700 custody officers to fill 2007-08 vacancies and plans to hire an additional 540 officers for 2008-09, the department said in its response. The department said that it agrees in part with the audit’s findings, adding that it will continue to address ways to fill staffing gaps. Furthermore, their response said, that the amount of overtime cited in the report is not excessive compared with other departments and full time jobs. Besides direct staffing costs, other cost potential savings identified by the audit for FY 2006-07 included: Eliminating an annual $575 dry cleaning allowance to custody staff, saving the department $5.5 million annually. Discontinuing paying the average $993 annual premium to the 3,440 corrections officers who staff maximum-security prisons, saving another $3.4 million annually. Eliminating sick leave and physical fitness bonuses, annually saving $265,450 and $142,450, respectively. Negotiating a better price for goods and services from Michigan State Industries, a major provider of service the DOC, saving $2 million annually.
Performance Audit on DOC's transportation- The audit looked at operations the department employed at three transportation hubs servings its prisons, camps and other correctional facilities from October 1, 2004, to July 31, 2008. It issued five findings, with which the department agreed partially. 1) The department had so far failed to develop a standardized method for accounting for, documenting and reporting prisoner transport. 2) Because of that some of the actual costs incurred in transporting prisoners were not classified as such, the audit said, pointing to nearly $500,000 in transport expenses at a number of different facilities that were not recorded as transport costs. 3) Nor had the department created a computerized system to organize, plan and prioritize prisoner travel. 4) The department also needed to create a central transportation coordinator to help oversee transit needs. 5) The department should look into additional video conferencing to help save on some prison trips.
Corrections Health Care New Contractor- Prison Health Services, based in Brentwood, Tennessee, will reportedly take over the prison healthcare system in April, replacing Correctional Medical Services for the $326 million contract.
A Bill to Allow the Department of Correction to hire felons fails on the House Floor (HB 6641)- A b ill that would repeal the prohibition of the Department of Corrections failed on the House floor, requiring the Democrats to clear the voting board. SEIU Local 526M and the State Council opposed this bill and launched two get active letters to the House members.
Nurses Exempted from Double Dipping (HB 6643)- A bill that would exempt nurses from the state's double dipping ban passed the House but died on the Senate floor.
The House Judiciary Committee took testimony (HB 6666)- This bill amends the Elliot-Larsen Civil Rights Act (MCL 37.2301) to include an individual serving a sentence of imprisonment at a state or county correctional facility in the definition of "public service." This never made it out of Committee. SEIU Local 526M and the state council opposed this bill.
Jail Diversion Bill Fails in the House (HB 6305)- The House did not have enough votes to pass legislation changing the jail diversion programs for people with mental illness. Pundits stated the mental health and law enforcement communities needed to be more on board with the proposals and that it needed to be vetted and discussed in more detail. It only garnered 35 votes on the House floor.
Juvenile Parole Legislation Passes the House- This legislation would allow juveniles convicted of a crime with a sentence of life without parole to become parole eligible. This legislation passed the House, HB 4402 (83-22), HB 4403 (66-40), HB 4404 (59-47) and HB 4405 (63-43) and was sent to the Senate Judiciary Committee, where it died.
Right to Work Vote Taken in House Committee- The House Labor Committee on Tuesday rejected a measure on a voted down along party-lines to make Michigan a right-to-work state, HB 4454. Mr. Wenke was the sole member to support it and Rep. Phil LaJoy abstained. The other two Republican members on the panel were absent.
Home Care Workers Exempted from Overtime (HB 5672) Testimony Taken- The House Labor committee took testimony on legislation exempting home health care workers from overtime wage requirements. This legislation removes language that SEIU Local 79 negotiated into the law in 2006; ensuring that ALL home care workers fell under Michigan law instead of federal law to enable them to receive a higher minimum wage and overtime compensation. This bill was not voted out of committee.
Early Voting Passes Out of Committee and the House (HB 4090)- This bill would allow residents to vote early and in person the Friday, Saturday and Monday before each election. It passed the House (58-50) and died in the Senate. The legislation was tie-barred to a bill permitting no-reason absentee voting in the state (HB 4048), which also died in the Senate.
Item Pricing Defeat- A bill giving retailers more leeway in not tagging items with specific prices was defeated in the Senate, 16-21. The UFCW 876 (SEIU's CTW partner) pushed for this bill's demise because, if passed, would be utilized to reduce their bargaining units.
Chiropractic Expansion Legislation Passes the House- Legislation paving the way for chiropractors to perform more health care procedures and making it optional for insurance companies to cover the costs was passed the House. The legislation allows chiropractors to diagnosis and treat neuromuscular and skeletal disorders, along with joint dysfunctions, current state law limits chiropractors to treating spine problems. These bills also add continuing education requirements for chiropractors and increase the oversight of the Department of Community Health. The package received dissenting votes from members of both parties, HB 5759 (63-46), HB 6201 (59-50), HB 6407 (80-27), HB 6408 (82-24), HB 6409 (81-26), HB 6410 (80-27) and HB 6411 (79-27). This bill package was referred to the Senate Committee as a whole where it died.
Promise Grant Expansion Passes the House, Senate and Signed into law (HB 5375) and (SB 861)- This legislation allows a local promise zone and allows the promise zone community foundations to create scholarship funds based on the Michigan Promise grant. Students would pledge to pay a portion of the state grant to the foundation in exchange for the up-front scholarship, Public Acts of 549-550 of 2008.
Reverse Vending Machines Clears House, Senate and Signed by the Governor- This bill package retrofits reverse vending machines in an effort to stop the smuggling of foreign cans into Michigan. The bills require beverage makers that sell at least 500,000 cases of product in Michigan to have a mark on their containers that would make it clear that the containers were sold in the state. The legislation establishes timelines for reverse vending machines to be retrofitted so they do not accept out-of-state containers at least 85 percent of the time. The bills increase penalties for turning in nonreturnable containers and sets timelines for the Michigan stores, starting with those along the state border, to retrofit their machines. The legislation – SB 1648, SB 1532, SB 1392, HB 5147, HB 6441 and HB 6442, Public Acts 384-388 of 2008.
Commission on Statutory Mandates Gets Extension (HB 6741)- This bill extends the deadline for the Legislative Commission on Statutory Mandates to report back to the Legislature. The final report from the panel would be due at the end of 2009, Public Act 356 of 2008.
End of Session the Single Market Insurance Reform Bills (AKA the Blues package) and the Smoking Ban bill package died after much deliberation and conference committees.
Executive Order 2008-19, Expanding MCOLES: Under EO 2008-19, filed this month by Governor Granholm, the board would be expanded to 17 members from the current 15. Some officials who were in ex officio roles – particularly the attorney general, the director of the State Police and the Detroit Police chief or their designees – would now have full voting membership.
Executive Order 2008-20, Adding Energy to DLEG: Governor Granholm issued an executive order converting the Department of Labor and Economic Growth into the Department of Energy, Labor and Economic Growth. She also announced that Skip Pruss, who has been her special advisor on energy, would serve as director of the department as the current DLEG director, Keith Cooley, is resigning to take the post of CEO with Next Energy. Under the reorganization the newly structured department will take charge of development of alternative energy sources as well major conservation programs.
Budget Cutting Executive Order (EO 2008-21): Governor Granholm issued an executive order cutting $134 million out of the state’s general fund 2008-09 budget. With transfers the entire order totals $145.7 million.
Under the EO two Department of Corrections facilities will be closed – the Deerfield prison in the Michigan Reformatory complex in Ionia and Camp Branch in the Lakeland correctional complex in Coldwater. Many of the reductions were also based on reduced caseloads in the Family Independence Program. The Deerfield Prison would close 1,200 prison beds and eliminate 218 workers, while the Branch Camp would close 710 beds and eliminate 121 workers. Both closures are to take effect on April 1 and together will save the state nearly $21 million. The FIP case reduction will save the state $23.3 million. Lower caseloads for day care subsidies will save the state another $12.1 million, and a smaller caseload for adoption subsidies will save the state $4.7 million.
Increased federal monies to the low-income home energy assistance program will save the state a total of $7.7 million. The EO also cuts $2.8 million from the Bureau of Child and Adult Licensing Fund and cuts $1 million to close the Adrian Training School. The EO also cuts $9 million from the Jobs, Education and Training Plus Adjustment in DHS.
In the Department of Community Health the biggest change will be the use of $15.8 million tobacco settlement fund monies to help offset other reductions in general funds. The EO cuts $5.3 million from the Quality Assurance Assessment Program (allowable because of increased revenue to the program), $6.2 million from children’s special health care services (which has additional federal revenues as well as a lower caseload), and $2.9 million for Title V prescription drugs (which go to mothers and children) because that program has also seen additional revenues through rebates.
The EO does not cut operational funding for schools, community colleges and four-year universities. Nor does it cut revenue sharing funding for local communities.
Committee on Govt. Efficiency- The panel’s workgroups are considering the following options: targeting corrections for a $300-$600 million cut in spending through closing and consolidating prisons, reducing the number of inmates, reducing inmate health care costs, and lowering salaries and benefits of corrections employees; Community Health is also targeted for a budget reduction of that amount, to be recouped by increasing co-pays and premiums on Medicaid and removing coverage for 19 and 20 year olds, and relatives of caregivers; primary and secondary education recommendations includes placing K-12 school employees on state-run health care plans to eliminate local bargaining, consolidation of districts, capping of per-pupil funding increases (at 2.5 percent) and encouraging employees to retire with cash incentives are also part of the proposed plan.
Civil Service Commission Approves Pay Increases for Director and Non-Union Workers-Unclassified and non-union workers will see a 1 percent pay increase in October 2009 under the coordinated compensation plan approved by the Civil Service Commission. The commission also certified the payroll for the 2007-08 fiscal year. Officials estimated the increase along with some other provisions, would cost about $14.28 million. The plan also included 2 percent increases for financial institution examiners. The plan includes an increase in the Lottery sales incentive program to $6,000 from $3,600. The commission agreed to rejecting an extra pay increase for the State Police Command Officers Association, agreeing with the council that the extra pay was not needed to keep positions filled or to bring the pay in line with industry expectations. Ms. McMillan acting as interim chair and that a permanent chair to replace Bryan Waldman (who resigned) in a subsequent meeting. Kelly Keenan newly appointed commissioner was given an opportunity to become acclimated to the commission.
Important Personnel Changes:
Jeremy Stephens is the state’s new personnel director, overseeing operations of all classified civil service human relations activities. Mr. Stephens comes to the state from the private sector. Currently, he is human relations director for the Barnes Group and previously worked for the manufacturing companies of Metaldyne and the Eaton Group. He succeeds Janet McClelland, who had been acting personnel director since April; previously, Jim Farrell occupied the post. Mr. Stephens takes his post on January 5.
Kelly Keenan Leaves Granholm: Kelly Keenan, legal counsel for Governor Granholm since she first took office and a top assistant when she was attorney general, is resigning next month to establish a legal firm and to serve on the Civil Service Commission. Steven Liedel, who has served as deputy legal counsel since 2003, will succeed Mr. Keenan. November 7th is the last day for Kelly.
Cindy Peruchietti Returns to the Legislature as Senator Prusi's Chief of Staff.
Former State Rep. Chris Kolb replaces Lana Pollack as President of the Michigan Environmental Council.
Court Appointments:
Governor Granholm appointed Wayne Circuit Judge Cynthia Stephens of Detroit to succeed Judge Helene White, who was confirmed to the U.S. 6th Circuit Court of Appeals. Ms. Stephens was the judge in Wayne Circuit Court that struck down Detroit's Living Wage Ordinance.
Attorney Douglas Shapiro of Ann Arbor succeeds Judge Michael Smolenski on the Court of Appeals, who resigned for a term expiring January 1, 2013.
The governor replaced Ms. Stephens on the Wayne Circuit Court with Civil Rights Director Linda Parker of Detroit.
Eric Cholack succeeds Justice Diane Hathaway in her former post on the Wayne Circuit Court.
Donald Allen, the Office of Drug Control Policy Director, was appointed to the 55th District Court, which serves most of Ingham County. Succeeding Judge Rosemarie Aquilina, who was elected to the Ingham Circuit Court.
On the Federal Level:
Auto company Loans Passed by Bush- The federal government will help Detroit's automakers by offering $17.4 billion in rescue loans (TARP $$) in exchange for concessions from carmakers and their workers. The government will have the option of becoming a stockholder in the companies. President Bush said Friday that a bankruptcy was unlikely to work for the auto industry at this time because it would deal "an unacceptably painful blow to hardworking Americans" across the economy. Automakers will get $13.4 billion of the money in December, $9.4 billion for General Motors Corp. and $4 billion for Chrysler LLC. An additional $4 billion will be made available to the companies later. Ford Motor Co. has said it does not need immediate help. Bush said the loans will be called back if the companies are not viable by March 31.