UNDER THE DOME
Capitol Update, for October 12 through November 29th, 2009
Cynthia Ann Paul
DEQ Renewable Operating Permit Program- One left over issue on this year’s budget was an increase in the DEQ’s Renewable Operating Permit Program fees (HB 5220). The additional funding under this bill is absolutely needed to maintain our state’s air quality, keep our state’s economic development on track, stave off federal sanctions, as well as save our members’ jobs, they have already received an e-mail concerning layoffs. We desperately need you to take action act http://seiuaction.org/campaign/DEQAirqualityROP
State Retiree Dependent Coverage Change- The current dependent eligibility standards for state employees and retirees allows them to cover dependents whom they have legal guardianship of, as well as certain step children, biological and adopted children. It also allows them to cover their dependent children between the ages of 19-25. The Office of Retirement Services secretly implemented changes that allow state retirees to only cover biological or legally adopted children and reduces the age limits of dependants to 18-23. This went into effect, November 2009. Because of these changes, thousands of children across the state, who are dependents of state employees, will lose their health care coverage because their parents, grandparents, foster parents or stepparents retire.
PAC Reform Moves Out of Ethics and Elections Committee and Passes the House-
A package of bills that would make several changes to the state’s campaign finance law passed the House. HB 4997 (the omnibus campaign finance bill) passed (62-43) and HB 4245 (allows public employees to voluntarily contribute to their union PAC passes (64-42). HB 4284 (eliminates the annual authorization requirement passed 69-37.
Regional Transit Bills- Part of the Tf2 package and was brought up over the break for testimony (HB 4965, HB 4966), the package would eliminate the current local bus new service program and create a transit new service program with $50 million in grants encouraging transit agencies develop interconnected regional systems. Concerns were raised about some systems losing funding if they did not make sufficient efforts to develop regional systems, in fact, the bills as written would risk losing federal match for two years to any community within a planning organization that accepted a grant under the program and did not make adequate progress toward a regional system. But adequate progress is not defined in the bills. All sides said the bills would be meaningless without funds to provide the grants.
IRS 115 Trust Bill and Bonding Bill- A bill that would allow local governments to sell bonds (SB 927) to cover the cost of their employee’s retirement benefits and a bill to set up an IRS 115 trust (HB 4073) for the public school and state employee retirees passed the Senate Appropriations Subcommittee on Retirement. New accounting rules have required local governments to begin funding their anticipated employee retirement benefit costs or list the unfunded amount as a deficit. With governments growing increasingly concerned about the ballooning size of their unfunded retirement liability, selling bonds was seen as a way to cover the gap. To be eligible to participate in the program, a local government would have to have a credit rating of at least A-level. (HB 4073) that would enable the state to begin prefunding its employee retirement costs through an IRS 115 Trust. A proposed new version of the bill would prevent any prefunding of such costs until the state had the funds to pay for both current and future retiree costs. Both bills are before the full Appropriations Committee for consideration.
SEIU Receives MEGA- SEIU International was granted a “Michigan Economic Growth Authority (MEGA) grant for their new member Action Service Center. It will receive a $2 million tax credit on a new administrative services center in Redford Township to create 224 new jobs. This center will handle routine contract and benefit questions.
Park Fee Clears Senate- (SB 388, SB 389) will allow motorists the opportunity to pay a $10 fee when they renew their annual vehicle registration to receive a permit to use any state park or boating access site under legislation. This legislation passed 25-12 with 12 Republicans supporting it. This has been sent to the House Committee on Great Lakes and the Environment.
Good Time Credit Restoration Examined By the House Judiciary Corrections Reform Committee- The bills (HB 4497, HB 4498 and HB 4499) retroactively restores good time credits, to allows prisoners without any misconduct violations to receive five days off of their sentence for the first two years they serve and up to 15 days for serving more than 20 years. This will require the department to recalculate parole eligibility for each prisoner, which could lead to inmates leaving prison before their minimum sentence. The House Fiscal Agency analysis estimates reinstating good time credits would cut the prison population by 5,650, while including community placement for 1,900 inmates reduces costs further to total $107 million in savings annually. Should the prison beds close by April 1, the net savings to the current fiscal year budget would be $42 million. But, crime victims and their advocates say going back on a promise made to them under the state’s truth in sentencing law. Because portions of the legislation would repeal the initiated law from Proposal B of 1978, both bills require a three-fourths majority in both chambers to pass. The department backs the bills.
Pension Board Oversight Package- The bills (HB 5181, HB 5182, HB 5184, HB 5214, HB 5293, HB 5294) were in part a response to news reports of excessive travel by some members of the Detroit pension boards. The package would, in addition to requiring the policies, open the boards to more frequent audits, make more documents available to elected officials, require that certain information on expenses and performance be posted on the board’s website, and require the board members be trained.
House Committee Passes Out Gun Law Expansion- HB 5302 and HB 5303 prohibits employers from banning properly stored firearms (in a case, unloaded and in the trunk or rear of the locked vehicle) from their parking lots, though there was some question whether the bills would include public school parking lots. I.E. workers would, at most workplaces, will be able to have firearms at work, as long as they remain unloaded, locked in a case and locked in the trunk under legislation approved by the House Tourism, Outdoor Recreation and Natural Resources Committee. The committee also reported legislation (HB 5470, HB 5471, HB 5472, HB 5520) that would allow licensed firearm dealers to purchase weapons from individuals without first having to obtain a purchase permit. Proponents noted that individuals with concealed weapons permits do not have to have a purchase permit. The bills do require the dealer to register the purchase to maintain proper state records of ownership.
Senate Committee Passes Out Similar Gun Law Expansion- Property owners could not bar individuals from having firearms in their vehicles, so long as the weapon is properly and safely stowed, under a bill reported to the full Senate. The Senate’s Hunting, Fishing and Outdoor Recreation Committee sent SB 792 to the full chamber, but held off on a similar bill, SB 793, saying there needed to be some other issues resolved.
Anti-Discrimination Clears House Judiciary Committee- Under current state law, discrimination based on religion, race, color, national origin, age, sex, height, weight, familial status or marital status is prohibited. HB 4192 extends those protections to sexual orientation, including heterosexuality, and gender identity. The bill was reported out on mostly party-line votes, save Rep. Tory Rocca (R-Sterling Heights) who supporting it.
DNR & DEQ Merger- The departments of Natural Resources and Environmental Quality are now in the second phase of their planned merger with the adoption Monday of an official merger plan. Phase one, process redesign by the core team, was completed. Phase two involves the redesign/re-engineering of the two departments and is planned to last through November 25. Phase three, which lasts through December 23, is the report to the governor on the structure for the new Department of Natural Resources and Environment, and phase four is actual implementation of the new department after January 17. The goals for the new department, under the plan, are:
· Become a national leader by adopting an integrated, human health and ecosystem approach to environmental and resource management
· Preserve Michigan’s outdoor heritage
· Provide quality and accessible outdoor recreation
· As a single department, become more effective and efficient
· Promote a culture of transparency and problem solving
· Facilitate and encourage economic growth in a sustainable manner
DMB and DIT Merger- Governor Granholm announced that she will be merging the departments of Management and Budget and Information Technology.
Board Reshuffling Executive Orders- Under EO 2009-53, the Workers Compensation Board of Magistrates would be reduced from 26 to 17 beginning on January 1. Under EO 2009-51, Governor Granholm reorganizes the State Tax Commission, requiring that no more than two members of the commission be of the same political party, that all have at least five years experience in either state or local government and that at least one of them be a certified assessor. The order also states the commissioners will receive an annual salary and not work in outside endeavors that affect their performance. The order also eliminates the Board of Assessors. The tax commission now reviews property tax assessments and sets the equalization rates for the state. Under EO 2009-52, Governor Granholm creates a Board of Homeland Security within the Department of State Police and made up of the directors of the departments of Agriculture, Civil Rights, Community Health, Information Technology, Transportation, State Police, the new department of Natural Resources and Environmental Quality, and the state’s adjutant general. The board will oversee and advise the governor on issues affecting the state’s overall safety. EO 2009-47 abolishes the Building Officials Advisory Board; EO 2009-48 abolishes the Advisory Committee for the Development of Educational Television; EO 2009-49 abolishes the Public Transit Association Task Force; and EO 2009-50 abolishes the Michigan Telecommunications Relay Service Advisory Board.
Commission on Government Efficiency Issues Final Report- In summary, the state should develop programs to encourage local governments and school districts to merge and should work to reduce state employee benefits, but it also needs to restructure its taxes to keep up with costs and the economy. The commission recommended creation of an Intergovernmental Advisory Office to flesh out proposals to encourage collaboration and consolidation of local governments as a way to eliminate redundancy among those units and to reduce revenue sharing costs. The commission also recommended that revenue sharing be made a constitutional mandate for all levels of government, but that it is tied to specific services the state supports rather than being provided as general fund to communities. But local governments should be able to levy additional taxes to make up the shortfalls from the state, the commission said. For schools, the commission recommended incentives to encourage intermediate school districts to consolidate non-instructional services. But if combining two districts would save at least 5 percent of the cost of running the districts separately, the state superintendent would be able to order them combined. The commission recommended that any new spending or tax cuts be funded with either some new source of revenue or some spending cut elsewhere. The proposal also calls for every piece of legislation to include a fiscal review to be sure it will not cost any money to implement. The commission recommended elimination of the Michigan Promise Grant. The group also recommended that universities and community colleges help students by expanding existing programs, using the “university center” to bring four-year programs to community colleges and develop a “transfer wizard” to help students move between institutions. The schools could cut costs by using more group purchasing and developing public/private partnerships for building and renovating facilities. The report proposed covering $300 million of community colleges appropriations with the School Aid Fund, offsetting that with an incentive program for some 10,000 teachers to retire. The proposal would offer teachers a $5,000 bonus to retire. In other areas, the commission recommended cutting as many as 10,000 inmates from state prisons over the next five years through a combination of reducing intake and paroling prisoners. The proposal said the current population of 12,500 inmates past their earliest release date should be reduced to 5,000. Prison costs also could be reduced by filling some vacant positions; reducing overtime costs, and by reevaluating prisoner security levels to, where possible, reduces the number of correction officers needed. For the state in general, the report said, the workforce should be examined to be sure there are the appropriate numbers of people doing the needed jobs. It also recommended efforts to provide more merit-based pay to state workers. But benefits for those workers should be better aligned to the costs and offerings made in the private sector, the commission said. Among the options proposed was offering lesser benefits or higher employee contributions for new workers. For Medicaid, another substantial cost center for the state, the commission recommended higher co-pays for recipients when they use emergency rooms rather than a primary care physician. But the report said the state also needs to take efforts, including potentially increasing reimbursement rates, to ensure recipients have sufficient access to primary care doctors. The commission also pushed for more effort to collect reimbursements from third parties where they might be responsible for part of a recipient’s medical expenses.
Report on Michigan’s Tax Structure- Most of Michigan’s income and local taxes come from the state’s poorest residents, resulting in a regressive tax that “no one” would intentionally design, according to a report released Wednesday by the Institute on Taxation & Economic Policy. While non-elderly residents who make less than $15,000 per year typically pay about 9 percent of their income toward taxes and those who make between $32,000 and $54,000 pay nearly 10 percent, the very rich pay about a third less, said the study, titled: Who Pays? A Distributional Analysis of the Tax Systems in All 50 States. The rich, defined as those with average annual incomes of $1.1 million, typically pay about 6.4 percent toward taxes, the study said.
Stimulus Money Report-Saves Jobs Here in Michigan- The presence of federal stimulus money in Michigan created or saved almost 20,000 jobs, mostly in education, according to a report the state submitted to the federal government. The figures reflect the impact of $620.5 million of the $2.1 billion in total state spending of stimulus funds in Michigan because only 29.5 percent of the spending came in programs required to be a part of the quarterly report. The report did not include stimulus spending on Medicaid, unemployment benefits, food assistance – generally any item where the funds go toward an individual person. It also does not include any spending where the stimulus money went straight from the federal government to an entity other than state government. About 1,300 recipients in Michigan are registered to receive federal stimulus money. Overall, $9.3 billion in federal stimulus money has been allocated to Michigan entities with $3.67 billion allocated to state agencies in programs required to participate in the first report to the federal government. According to the state, 14,483 jobs in education were created or saved; $600 million in federal stimulus funds was poured into K-12 schools during the summer to prevent a severe reduction in school aid that would have led to widespread layoffs. Other areas where substantial numbers of jobs were created or saved, according to the report, were the general workforce (3,386), infrastructure (1,172), human services (286) and energy (97). The reports filed with the federal government are hundreds of pages and difficult to decipher because they use code numbers to describe the funding agency, but the federal government posted the reports at recovery.gov on October 30.
Revenue Sharing Held up in Thirty-four local Units of Government- 34 local units of government have not filed annual financial reports and 12 have not filed audits with the state, putting them in jeopardy of having their revenue sharing payments withheld, according to a report sent to the Legislature by the Department of Treasury. The reports, covering 2008, were due between March and December of 2008. Overall, 615 municipalities were late in filing the financial reports. By law, the lack of local unit of government’s financial report or audit means the state may withhold funding. Six communities have submitted neither a financial report nor an audit: Detroit, Ecorse, Billings Township, Rubicon Township and the villages of Stevensville and Twining. The state is currently withholding revenue sharing payments from the following municipalities: Allen, Athens, Bay Mills Township, Benzonia, California Township, Carsonville, Detroit, Ecorse, Elba Township, Elmwood Township, Enterprise Township, Forestville, Gobles City, Grant Township, Hart Township, Ionia Township, Manistee Township, Mesick Village, New Era, New Haven, Newton Township, Peaine Township, Pierson, Pioneer Township, Pleasanton Township, Readmond Township, River Rouge City, Rubicon Township, Spring Lake, Stevensville, Sullivan Township, Twining, Webber Township, Wells Township and West Branch Township.
Budgets-
Revenue Front
Senate Passes Tax Amnesty Bill- Tax delinquents would have the opportunity repay their back taxes in November and December under (SB 884). It cleared the Senate on a 24-12 vote with three Democrats, Barcia, Gleason, and Olshove joining all 21 Republicans in support. Democrats objected because the bill was tie-barred to four other bills that are the parts of the Senate Republican plan to raise $300 million in revenue. Those bills would delay a scheduled increase in the Earned Income Tax Credit, curb some Michigan Business Tax credits and scale back the film production tax credit and phase out the surcharge on the Michigan Business Tax (SB 69, SB 838 and HB 4514). These bills already passed the Senate.
Senate Votes Down Physician QAAP- A controversial tax on physicians failed overwhelmingly in the Senate four senators voting yes and 32 voting no. Only four Democrats — Cherry, Prusi, Switalski, and Buzz Thomas voted yes. The remaining 12 Democrats joined 20 Republicans in opposition. Garcia was absent.
Revenues Fall- Michigan’s tax revenues totaled $1.92 billion in September, according to figures released by the Senate Fiscal Agency, down 15.2 percent from September 2008. But the figures also show that revenues were slightly above projections for the month, so even though September marked the eighth consecutive month revenue collections were below 2007-08 levels.
Governor Signed Department of Agriculture Budget (SB 237, PA 119) but vetoed $7.8 million in that budget for the Office of Racing Commissioner and related prizes at county fairs.
Governor Signed departments of Environmental Quality and Natural Resources (HB 4446, PA 118). She vetoed $540,000 for the state’s agricultural surplus program, which provides surplus produce to food programs for the needy, saying the funding duplicates increased funding for the same program that is in SB 248, the budget for the Department of Human Services. Also, in the DNR/DEQ budget, HB 4446, Granholm vetoed the required $350,000 in consolidation savings if the two departments are merged. The governor did not strike $1.8 million allocated by the Legislature to provide partial-year funding for the state wetlands regulation program that Governor Granholm wanted to eliminate. Another major veto in the budget was a requirement that the state reimburse companies for feasibility studies done on the best environmental retrofitting strategies. She also vetoed $75,000 set aside for cormorant control, saying that is a program governed by the federal government. The combined budget totals $704.3 million, of which $44 million is paid for with general funds. That represents a $4.8 million hit to general fund support for the budget compared to the current fiscal year, or 9.9 percent. Overall, the budget’s gross amount is reduced by $195.7 million or 21.7 percent.
Wetlands Full Funding Restored- The state’s wetlands regulation program would receive full funding under a supplemental that unanimously cleared the House and Senate and Signed by the Governor, (HB 4311 PA 140) contains $3.4 million in restricted funds for the Wetlands program.
Granholm Signed School Aid Budget (HB4447 PA 121)- The budget signed totals $12.9 billion ($38.1 million general fund), an overall 2.9 percent cut from last year’s appropriations. The budget includes a cut of $165 per student to the foundation grant. Governor Granholm line item vetoed section 20j funding, which provides supplemental funding for some of the state’s wealthiest districts. The line provided $51.5 million to those districts to soften earlier funding reductions as the Proposal A changes worked to reduce the spending difference between highest and lowest districts. Some 40 districts will be affected by the move, the largest being Livonia which will lose $4.922 million with the veto. The Dearborn school district will also lose $4.921 million. Also affected is the East Lansing district, which will lose more than $1 million. Another $1.6 million comes from elimination of secondary prevention services. Governor Granholm also cut advanced and accelerated programs ($285,000), cultural experiences grants ($100,000), 21st Century Community Learning Center funds ($50,000), vocational education funding for one ISD ($388,700), and a pre-college engineering program in the Kalamazoo area ($75,000).
Granholm Signed Pro-Rata Reduction- Michigan schools will face another $127 cut per student as part of a proration ordered by Governor Granholm, who said the action was dictated by shrinking revenues. According to Ms. Granholm, the state now faces a shortfall in the School Aid Fund of $212 million. Unless counteracted by the Legislature, that will mean cuts of another $127 per pupil which comes on top of the $165 per pupil cut that was enacted in the K-12 School Aid budget. Since the May Revenue Estimating Conference, sales and use tax revenues are some $91 million below projections.
Governor Signed The Community Health Bill (H.B. 4436 PA 131)- The budget totals more than $13 billion, $2.3 billion in general funds. While that represents an overall 6.6 percent increase in the budget, driven in part because of the increasing number of people now reliant on Medicaid. The budget forces major cuts in critical areas, including an 8 percent cut in payments to Medicaid providers. This could lead to nursing homes closing or simply refusing to take Medicaid patients. The budget also calls for a $50 million cut to community health programs. The budget was subjected to nine vetoes, some of which eliminated funding for programs that she said duplicated programs in other budgets. Among the vetoes was a provision calling for the state to expand its prescription drug website, which is aimed at helping individuals find the lowest cost drugs. Her move doesn’t end the site, just a required expansion. She also vetoed $30,000 that was to establish a methadone clinic in a small county, $75,000 for a clinic in Bay City, $200,000 that was to go to trauma hospitals in two counties to help ensure greater use of treatment guidelines for traumatic brain injuries; $1 million for prenatal care outreach in areas with high infant mortality and $50 million to deal with so-called disproportionate share funding for hospitals.
Governor Signed Human Services (S.B. 248 PA 129)- Governor Granholm, warned that it would force the layoff of another 300 caseworkers from the department at a time when the average DHS caseworker is already handling between 600 and 900 cases. She also warned the cuts posed potential problems for the state with the federal government. The budget totals $5.9 billion of which just $860 million is in general funds. Among the vetoes Governor Granholm issued were:
· How to spend money on a state fatherhood and marriage
· A requirement the state work with a private company to determine a way to streamline the department’s procurement process
· Moving recipients to a branded MasterCard to handle services and eliminate the Bridge card program
· A requirement that temporary assistance to needy families funds go just to programs that report data so the department can establish minimum thresholds
· $500,000 to groups that help people file for the earned income tax credit
· $250,000 to help identify Bridge card recipients with criminal backgrounds
· A requirement that the state develop a program for the direct cremations of indigent deceased if their remains are not claimed
· $3 million for a statewide after school program in areas with high gang violence
· $850,000 to create a customer service resource center, and $500,000 to create a fund to collect child support arrearages.
Governor Granholm Signed the Higher Education Budget (HB 4441, PA 132)- The budget totals $1.6 billion, $1.5 billion in general funds. Student financial aid was slashed by more than 61 percent, most of that in the eliminated promise grant, it contained minor vetoes.
Governor Granholm Signed the General Government Budget (S.B. 245 PA 128)- Along with revenue sharing (which is the largest single expenditure in the budget), it also funds the departments of Attorney General, Civil Rights, Information Technology, Management and Budget, State, Treasury, along with the Legislature, the Executive Office and the Strategic Fund. The budget totals slightly more than $3 billion, with $626.9 million from the general fund. She vetoed $7.1 million to finance operations at the Michigan State Fair, the oldest state fair in the nation. She also vetoed $1.2 million the Legislature included for Census tracking and reapportionment related matters. She also vetoed a provision that would require the Strategic Fund to fund a number incubator projects in locations across the state.
The Governor Signed the Department of Labor and Economic Growth Budget (SB 243 PA 130)- Governor Granholm discussed the ongoing dispute over the state’s review of possible workplace ergonomic standards, saying a provision in the legislation that bars any spending on developing those standards was unconstitutional. She said the same thing on another provision dealing with barring credit scoring in insurance rates. The budget for 2009-10 totals $1.4 billion, the vast majority of which comes from federal funds. Just $55.1 million is slated for the department from the general fund. The budget did not completely escape vetoes, as Ms. Granholm vetoed $300,000 that was to be diverted from the Department of Agriculture budget for agricultural economic development. She also vetoed $415,000 for an occupational safety training grant, which would for the state’s after-school partnership and workforce training, saying it would undermine the state’s process for awarding competitive bids. She also struck out was $59,000 to go to the Michigan State Housing Development Authority related to several specific types of projects. Governor Granholm also said a number of sections dealing with legislative intent – the most noteworthy being a requirement that the State Tax Tribunal develop a list of proposed fees – were non-binding on the administration.
Governor Granholm Signed the State Police Budget (S.B. 253 PA 133)- Spared from vetoes was the budget for the State Police, but not spared from criticism over cuts in the school bus inspection program. State Police Director Peter Munoz issued a statement that the department would continue school bus inspections and had cancelled planned layoffs of workers who conducted those inspections. The budget totals $527 million, $267 million in general funds. It included funding for the network of forensic laboratories across the state and included money to handle additional casework derived from the closed Detroit Crime Laboratory.
Next Year’s Budget- All state departments will start the 2010-11 fiscal year with 20 percent less general fund money than they have for the current year under the budget proposals being developed by Governor Granholm.
Rep. Smith Proposes Revenue Over hall Plan- Rep. Alma Wheeler Smith has proposed a plan that would raise $6.5 billion, much of it targeted to education. Ms. Smith (D-Salem Twp.), gubernatorial candidate, is calling for elimination of some $3 billion in tax expenditures while raising $2 billion from a graduated income tax and $1.5 billion from a sales tax on services. Of those funds, $2 billion would go to the Michigan Future Program, $500 million would restore cuts in the School Aid budget and $500 million would eliminate the surcharge on the Michigan Business Tax. Michigan Future, Ms. Smith said, is a broad education program ranging from preschool programs to a tuition tax credit for college students. While the state would see more revenue, Ms. Smith said many residents would see cuts to at least some of the taxes involved. In addition to eliminating the MBT surcharge, the proposal would also cut the sales tax rate to 5.5 percent from the current 6 percent. And she said the graduated income tax would result in a rate cut for 80 percent of Michigan residents. The tax rates she proposed would be 4 percent for those making $45,000 or less, 7 percent for those between $45,000 and $60,000 and 9.75 percent for those making more than $60,000 (the income levels would double for joint filers).
Elections Re-Cap- Senate 19th District- Former Rep. Mike Nofs, a Battle Creek Republican beat Democratic Rep. Martin Griffin, 60.7 to 34.6 percent. a victory that puts a once Democratic seat into the Republican column. Republicans will have a 22-16 majority, giving them a little more breathing room to run the Senate.
In the Courts-
The Supremes Heard Oral Arguments on whether public employers can maintain a voluntary PAC check-off program when the costs are reimbursed by the unions-
Ballot Initiatives Approved by the Board of Canvassers-
Insurance- Fair Affordable Insurance Rates- all property and casualty insurance rates would drop at least 20 percent under a ballot proposal that had its petition form approved by the Board of State Canvassers. Supporters of the proposal, which would cut auto rates another 20 percent for good drivers. The proposal would amend the current insurance law to require all rates cut 20 percent beginning February 1, 2010, and those new premiums stay in effect for a year. Future rate increases could be subject to a hearing if they are more than 5 percent and a hearing would be required if the increase proposed tops 7 percent. It would also limit the factors that could be used to rate auto insurance to driving record, miles driven annually and years of driving experience. The commissioner of the Office of Financial and Insurance Regulation could add to that list through administrative rules. Rating territories would be allowed, but the OFIR commissioner would have to certify that they are non-discriminatory. Insurance companies would also be limited on the types of claims that could serve as the basis for rate increases. And customers could only be canceled for non-payment, fraud or criminal behavior, or changing the property to substantially increase the risk it poses or otherwise makes it uninsurable.
Racino – Petition Approved- The Board of State Canvassers unanimously approved the form for the petition proposed by the group Racing to Save Michigan. The group had offered two petitions, one that made no reference to the proposal voters approved in 2004 requiring both a statewide and local referendum before a new casino could be built, and one that does mention it. The canvassers approved the petition form that includes language from Sec. 41 of Article IV that outlines the voter requirement. The proposal allows for eight more casinos, five of which would be located at racetracks that had pari-mutuel betting in 2009. Those casinos would not be required to build a hotel. Those casinos would also pay a tax the equals 30 percent of their gross receipts. Of that 75 percent will go to the state’s School Aid Fund, 20 percent will be allocated to all the state’s counties, 3 percent would go to the county the casino is located and 2 percent would go to the community in which the casino is located. To get on the ballot, organizers will have to get 380,126 signatures by registered voters in 180 days.
Save Our Water Committee- The canvassers also approved their form to impose new regulations on uranium mining, to keep mining away from state waters. To get on the ballot, the initiated act will have to get signatures from 304,101 registered voters in 180 days.