Under the Dome

Capitol Update December 11, 2007-February 8, 2008

Cynthia Paul

7) The governor also pledged to fight for additional funding for the Michigan Nursing Corps to expand our nursing programs around the state to train more nurses to fill vacancies that exist today.

8) Protecting citizens and their pocketbook in a changing economy, preventing foreclosures by negotiating with leading mortgage companies to freeze increases in adjustable rates for up to five years, and creating - at the state level - an insurance advocate who will work to fight for consumers and make sure that rates are fair and affordable.

9) Keeping neighborhoods safer by adding 100 new Michigan State Police troopers to the roads and partnering with local law enforcement in fugitive felon sweeps that have already put more than 5,000 sexual predators and dangerous fugitives behind bars.

10) Fostering growth in our cities by paving the way for new economic development and jobs by tearing down more than 1,500 buildings by the end of 2008.

11) Retraining workers displaced by Michigan's challenged economy by giving workers access to a college education and other training that prepares them for specific, high-demand jobs - coupled with a one-time offer of free tuition in areas of need to the first 100,000 workers that sign up.

To read her state of the state speech in its entirety please visit
http://michigan.gov/gov/0,1607,7-168--184537--,00.html

House Passed legislation (SB 386) providing criminal penalties for school volunteers and contractual employees who engage in criminal sexual conduct with students, by 104-0.

Firefighter Cancer Presumption- The House passed legislation HB 4401, that would allow firefighters who had not smoked for more than 5-years (or ever) and who had worked on the job for 60 months or more would have a presumption for occupational cancer for worker’s compensation purposes. It passed by a vote of 81-27.

Adoption Leave Parity Bill- The House passed legislation (HB 5261) that would require employer to give the same leave time to parents who adopt young children as is give to the birth of a child. This bill passed the House by a vote of 101-7.

Promise Zone Bill- The House passed legislation (HB 5375) that would allow eligible municipalities or school districts to create their own educational promise zones. This passed the House 71-34.

Autism Bills- The House Health Policy took testimony on legislation (HBs 5527 and 5529) that would mandate insurance companies cover treatments for autism related disorders. These bills still remain in committee.

Ergonomics- The Ergonomics Standard Rule Advisory Committee referred a consensus draft of the rules to the two Standards Commissions, these rules would require businesses to train their employees on the hazards on improper body positions to prevent sprain, strains and repetitive movement injuries. In response to this the Senate Economic Development and Regulatory Reform Committee kicked out of the committee legislation that would prohibit the DLEG from promulgating ergonomic standards on a party line vote of 4-3.

State Retiree Health Care Benefits Shifted to ORS- The Health Care Reforms Committee kicked out legislation (HBs 5545 & 5546) that would place the administration of the State Employees Retirement Healthcare System and the Judges Retirement Healthcare System to the Office of Retirement Services. Concerns about reduction of benefits and losing a say in benefit decisions (currently with the Civil Service and Department of Management and Budget) were strongly expressed by every labor and retirement organization. The bill was kicked out of committee despite these protestations.

Prisoner Id. Cards Moves Out of Committee-House Judiciary Committee reported a package of bills that would allow identification cards issued in prison to be used to obtain a driver’s license. The bills moved over concerns from the Department of State that the prison IDs do not necessarily carry the inmate’s legal name. The goal of the legislation (HB 4525, HB 4526, HB 4527, HB 4528, HB 5568) is to help inmates released on parole or after completing their sentence obtain the identification they need to get a job.

SEIU Healthcare Michigan filed a complaint on December 14th with the Department of Community health asking for a delay in the proposed sale of HCR Manor Care Incorporated to the Carlyle Group. SEIU is asking for a more thorough review of the proposed sale given the reports that nursing homes owned by equity firms in other states have been prone to understaffing and poor quality of care. Later in the month Hingham County Circuit Court lifted the temporary restraining order and allowed the sale to go throw.

The Department of Community Health-Announced a nursing home quality measures workgroup to develop proposals to add to the Certificate of Need (CON) Nursing Home and Hospital Long-Term Care unit bed standards. Marge Faville was appointed to the CON committee through a little persuasion from me.

Mackinaw Bridge Authority increases the tolls starting March 1, 2008, cars will increase from $2.50 to $3, the commuter rate will go from $1.50 to $1.60 and trucks will increase from $3 per axle to $3.50 per axle.

911 Bills Senate Version (SB 410 and 411) Passed the House, Senate & Signed by the Governor-The House dropped its original proposal for a phone tax to pay for a litany of public safety programs, instead went with the Senate version of the bills which requires cell phone and voice over the Internet protocol users to pay for 911 emergency phone services. Currently, 911 fees are only based on landlines.

Governor Signs Foster Care Background Check Bills-The Governor signed legislation (SBs 271 & 218) requiring criminal background checks of foster care home licensees.

Governor Signs Transportation Task Force Funding-(SB 59, PA 221) to set up a new task force to look for alternate ways of funding transportation improvements in the state, this 13-member task force is expected to provide a preliminary report by October with a final report due April 2009. Under the legislation, Governor Granholm would appoint an 18-member citizens advisory committee to review the information provided to the task force.

Governor Granholm signed an Executive Order creating the Automobile and Home Insurance Advocate, Executive Order 2008-2.

Governor Granholm issued an Executive Order establishing an intra-agency task forced to look into the question of whether workers are being misclassified as independent contractors, Executive Order 2008-1.

Attorney General Cox Drivers License Decision-Attorney General Mike Cox issued a decision that driver’s licenses can only be issued to permanent residents of the state and illegal aliens by definition cannot be permanent residents.

Senate passed legislation to fix the above AG’s opinion that bars temporary immigrants in the state legally from getting driver’s licenses or state identification cards, but also tie-barred it to the very controversial federal id. issue (SB 962, 963, 964, 965 & 1057). This passed a divided Senate Transportation Committee and a divided Senate after much heated debate. The main bills in the package (SBs 962 & 963) passed 28-9 vote. The House passed legislation that allows individuals who can establish a “legal presence” in Michigan, regardless of how long they plan on staying here, to receive a state identification card or driver’s license, but the House did not tie that effort to the federal Real ID Act, like the Senate. It allows people like college faculty and business executives from foreign countries to receive a driver’s license in light of a recent attorney general’s opinion and Department of State rule change. The House package (HB 4505, 103-2; HB 5535, 104-1; HB 5536; 105-0 and HB 5537, 105-0) also implements an enhanced driver’s license for people to use in traveling between the United States and Canada, as well as increases penalties for individuals who provide false statements or certificates in order to receive an enhanced license.

The Ballot Initiatives Approved by the Board of Canvassers to gather signatures:

· People’s Choice Tax Repeal- Amends the State Constitution to require a statewide vote on ay state statute that creates a new tax, continues a tax, reduces a tax deduction or tax credit or increases the effective rate of base of a tax. It also provides new petition design and circulation allowances.
· Stem Cell Research- Amends the State Constitution to permit with certain limitations stem cell research in Michigan.
· Michigan Fair Tax Proposal- Amends the State Constitution to eliminate the Michigan Income Tax, Michigan Business Tax and Property Tax for businesses and replaces it with a 9.75% sales tax.
· Committee to Turn Michigan Around-Amends the State Constitution to provide for a part-time legislature.
· Proportional Senate-Amends the State Constitution to stipulate that the state Senate “consist of 50 members to be selected off of candidate lists at large from a statewide election.”
· Personal Education Account- Amends the State Constitution to require the sate Legislature to “provide from 4-years of age until the age of 18 years every resident child in Michigan with funding to support education on a per pupil basis which shall be controlled by the parents or legal guardians of each child respectively.”
· Health Care for Michigan- This initiative places on the 2008 ballot, a proposal to insert “Health Care Security” language into our State Constitution that would require the Legislature to enact legislation that:
1. Controls and reduces health care costs;
2. Ensures that people that currently have health insurance won’t lose it; and
3. Provides health insurance coverage for those without it. Actual Text of the initiative-“The State Legislature shall pass laws to make sure that every Michigan resident has affordable and comprehensive health care coverage through a fair and cost effective financing system. The legislature is required to pass a plan that, through public or private measures, controls health care costs and provides for medically necessary preventive, primary, acute and chronic health care needs.”
· Medical Marijuana-This initiative would permit the legal possession of a limited amount of marijuana by seriously ill patients for their personal use wit the approval of their physician.

**Right to Work-This would make Michigan a right to work state and prohibit unions and employers from negotiating a union security agreement, which will mean less money, pension and benefits for Michigan workers. Rumors are still flying around about whether or not this issue will be on the ballot. The AFL-CIO had a major decline to sign effort on January 15th (the primary) and no individuals were spotted getting signatures on this ballot initiative. This has not been approved by the Board of Canvassers as far as form.

Civil Service Commission Approves Union PAC Contributions- The civil service commission approved a new rule 3-1 that would allow state employee unions to negotiate a payroll deduction program for their PACs. This was based upon a legal opinion from Mike Hodge based upon the Michigan Education Association v. Land circuit court decision and the Commission’s Constitutional Authority. The Civil Service Commission also rescinded the rule of general applicability and approved all 6 state employee contracts and adopted a new Medicare Advantage plan by BCBS to provide coverage state retirees (it doubles the premium copay to 10 percent and increases other copays and deductibles).

Civil Rights Commission- Held hearing pushing for changes to Michigan’s hate crime law to close the intent loopholes and add sexual orientation to the list of victims.

State Personnel Changes:

Scott Bowen named lottery commissioner-The Michigan State Employer, Scott Bowen, was named lottery commissioner by Governor Granholm. Tom Hall will be acting state employer until a permanent replacement is named.

The Senate approved Kenneth Theis as the new director of the Department of Information Technology.

New Agriculture Director, Don Koivisto, announces his “A-Team” (Agriculture Team) to provide assistance to farmers across the state on marketing produce.

State Rep. David Law- Will run for Oakland County Prosecutor and will not seek a 3rd term as state rep.

Courts:

AG Cox filed in Ingham County Circuit Court-to block state employees from having union PAC deductions from their paychecks. Judge Paula Manderfield temporarily ordered the Civil Service Commission to not approve any changes to the state employee contracts until the court can hear arguments on its legality. After listening to the legal arguments, Judge Manderfield lifted the Temporary Restraining Order and denied the Attorney General’s request for a preliminary injunction.

Minimum Staffing and layoff provisions are not mandatory subjects of bargaining in union contracts, said the Court of Appeals. The Oak Park Public Safety Officers Association insisted on Mandatory staffing levels and layoff provisions in its new contract to the point of impasse.

Local Schools and States Not Required to fund No Child Left Behind- A 6th Circuit U.S. Court of Appeals decision held that local schools and states are not compelled to spend local money to meet requirements under the federal No Child Left Behind school law.

Department of Corrections will appeal Washtenaw Circuit Court jury decision finding the department of Corrections liable for the sexual assaults and harassment of 10 current and former inmates at Scott Correctional facility. Correction officials contend the judge prevented the state form mounting a defense.

Budget Information:

Michigan Closes Fiscal Year 2006-2007-with a general fund and a school aid balance of $353.1 million.

Revenue Estimating Conference- Revenues for the current fiscal year will likely be lower than anticipated last spring, but the state could get through the rest of the fiscal year without major budget cuts. Total revenue is $20.6 billion (9.247 billion GF/GP and $11.353 billion School Aid), down by $369.9 million ($234 million GF/GP and $134 million School Aid) from the May estimate.

Supplemental HB 5344 (to fill the holes in the 2008 budget)-The House and the administration do agree in the latest draft that provides $11 million of general fund dollars to replace fee revenue in the Department of Environmental Quality, $1-million for the forest recreation and wildfire suppression activities in the Department of Natural Resources and $ 2-million for forensic laboratories in the Department of State Police. Thank you to everyone who participated in our letter writing campaigns on these issues. This is still in House Appropriations Committee.

Governor’s Proposed 2008-2009 Budget-

General Terms-9.86 billion general fund ($44.03 billion in total spending) $1billion more than the current fiscal year. It does not include any call for tax increases or closing of loopholes or fee increases. Most of the one-time revenue in the budget will come from refinancing current debt. A $100 million contribution to the Budget Stabilization Fund proposed, the first in five years. The governor said the $235 million in cuts claimed in the new budget are due primarily to employee concessions and proposed corrections changes. It does not reflect the selling of any state assets – privatizing the Lottery.

Higher Education: Universities and community colleges would get an overall 3 percent increase in funding in 2008-09. The specific increases at each of the 15 university campuses would vary, based on a proposed formula that helps to encourage programs in areas the state believes are most important. The formula is weighted 50 percent for degree completion and 25 percent each for federal research spending and support for low-income students. Additional factors based on research and commercialization activities would apply to Michigan State University, the University of Michigan and Wayne State University. The increases are 3.2 percent for UM and Wayne State and 2.7 percent for MSU. For the other campuses, the increases range from 2.3 percent at Central, Eastern, Western and Northern Michigan universities, to 6.2 percent at Lake Superior State University. The budget would include nonbinding language expressing the expectation by the state that tuition increases would be kept at no more than inflationary levels, now expected at about 2.3 percent. Also getting 3 percent increases are Michigan State University’s Cooperative Extension Service and the Agricultural Experiment Station.

Community Colleges: The state’s 28 community colleges would continue to receive funding based on a formula that considers enrollment and degree completion, roughly a 3 percent increase recommended for the state’s 28 colleges. The governor’s budget continues $56.6 million for tuition grants at private colleges and universities. The governor’s budget includes $250 million in financial aid, including those eligible for the $4,000 Michigan Promise scholarship.

Department of Human Services Budget- Increases in hourly day care reimbursement rates would be infused with an additional $10 million under the executive budget recommendation. Overall, the budget totals $4.7 billion, with $1.4 billion coming from the general fund, which represents a 1.9 percent increase in gross spending and 5.3 percent hike in general fund appropriations relative to current year expenditures. The Family Independence Program would be funded to cover 77,000 cases, including 150,000 children, with the governor’s proposed $396.4 million appropriation. Caseloads have dropped to their lowest numbers in five years from 88,000. At a cost of $12 million, the program contains a 2 percent grant increase, or $3 per person per month, the first in nearly two decades. That would mean a parent with two kids would receive $498 a month instead of $489. The House adding is $10 million to day care services in a 2007-08 supplemental, the administration’s recommendation builds on that. It also increases the children’s clothing allowance, which would provide $75 per child each year instead of $43. It includes rate increases for private child placing agencies. And appropriations for the State Disability Assistance program, which covers 11,500 disabled adults, would see a $5 per month grant increase under the $39 million program appropriation.

Other highlights of the DHS budget:

· $21.8 million for the Jobs, Education and Training (JET) program so that FIP recipients receive training services and better their chances at employment.
· $1.2 billion in federal monies for food assistance for more than 571,000 low-income households.
· $200 million in combined state and federal funds to pay for the home heating credit, energy-related crisis payments and weatherization products for low-income residents.
· $16.8 million in spending for the child welfare system. That is on top of the $40 million funded for the system in 2007-08.
· $210.4 million for the Children’s Foster Care program, which provides care and supervises more than 9,500 children.
· $54.8 million for family preservation services.
· $242.3 million in subsidies for 28,800 adopted children.
· $291.6 million for Juvenile Justice Services, which includes $226.8 million in Child Care Fund reimbursement for locals.
· $264.9 million for the state’s child support program, including $50 million for automation of the child support system.

Revenue Sharing-Local governments would get a 4 percent increase in the statutory portion of the program, leaving most townships with only the money they get from sales taxes. Revenue sharing has been frozen since 2001.

K-12: The overall School Aid Fund budget would see a 3.9 percent increase from current year spending $13.52 billion and the general fund contribution to that would climb 23.2 percent to $43 million. It allocates money for the foundation grant to narrow the gap between the highest- and lowest-spending districts. The proposal would increase the minimum foundation grant by $216 per pupil, to $7,420, but districts at the top end would get half that increase, $108. Other districts would get increases somewhere between those two extremes. Districts, including charters, which do not offer a high school program would be eligible for only 70 percent of whatever increase they would otherwise receive. It requests that they offer full-day kindergarten. It also calls for the small high school grants Governor Granholm announced in her State of the State. The program would be funded through a $300 million bond issue, and the budget includes $32 million in debt service to cover the cost of those bonds for the first year. It provides an additional $31.5 million for preschool programs around the state, a total of $134.2 million ($17.05 million GF) for the program. It also provides an additional $4.3 million to the Center for Educational Performance and Information to continue development of a database that tracks students from preschool through higher education. CEPI’s total budget is $9.55 million ($6.76 million GF).

The Department of Education: It would receive $94.7 million, a 1.2 percent cut from current funding. But the $8.07 million GF represents a 17.3 percent increase. Among the increases are $13.6 million to the Michigan Schools for the Deaf and Blind to cover additional enrollment. The assessment program would also be increased, to $9.4 million, to increase staffing and avoid additional costs from contractors. The department would also be provided another 29 staff across its programs, including people to oversee the 21st Century Schools small high school program.

Department of Community Health: The DCH budget, totals $12.5 billion ($3 billion in general funds). This represents a 1.2 percent reduction in general fund monies compared to the current fiscal year, but overall, the total funds are 3.7 percent higher. Highlights of the budget include $6.5 billion for medical services and $2 billion for long-term care services that are part of Medicaid. Medicaid comprises 90 percent of the DCH budget and provides health care coverage for one out of every seven Michigan residents. It also includes $470 million for community-based long-term care services, an additional $125 million due to more people using Medicaid and $117 million to increase the payments made to health maintenance organizations. Mental health services are also a large focus of the DCH budget, with gross spending of $2.7 billion, or $1.2 billion in general funds. Of that money, $2.4 billion goes to community mental health services, including a $59 million increase in provider payment rates. The governor funds psychiatric hospitals and centers at $262 million in the budget and provides $39 million for forensic mental health services to prisoners under the Department of Corrections. The budget also calls for $2.3 million in order to create pilot mental health courts that are intended to divert people from jail and get them treatment. The DCH budget also establishes a centralized mental health managed care risk pool, with expected savings of $7.3 million. The governor expects to also maximize resources for mental health services in creating the pool. $489 million for health and disease prevention programs, including $50 million in grants to local public health departments. Children’s Special Health Care Services will receive $212 million under the budget and the Adult Benefit Waiver program will receive $137 million to support 62,000 low-income adults every month. It includes $100 million for the Michigan First Health Care Plan, none of which comes from the general fund.

Department of Corrections: It calls for $50 million in cuts overall from the department. The administration would work with legislators to identify the corrections policy changes that both sides can accept, and could rely on input from the Council of State Governments on what has been adopted in other states. There are discussions underway over changes in the parole system that could help reduce the numbers of prisoners. There are now more than 50,000 prisoners being housed in 42 prisons and eight prison camps throughout the state. A major goal of the administration and legislators is finding a way to reduce incidents of recidivism. The state is partnering with the Council on State Governments to find ways to trim expenditures in the department. The Governor is seeking savings through health care costs in the department, changing staffing assignments and consolidating operations where possible. A major proposal that could affect Corrections in the long run actually is included in the Judiciary budget, and that is funding for several pilot programs for the development of mental health courts. Those courts could help find alternatives to incarceration for individuals who are mentally ill and break the law. They will be modeled in some part on the state’s drug courts.

Judiciary: The total budget proposal is 1 percent larger than the current fiscal year, $261.9 million, but the general fund portion is 1.2 percent larger at $159 million. The mental health courts are the most significant development in the budget. A total of $3.4 million is allocated for five pilot programs, and out of that $1.1 million is directed to help find alternatives to jailing individuals who are mentally ill. Another $2.3 million will go to the Department of Community Health to help with the pilot program. State government has been criticized by mental health advocates for not doing more to provide treatment for the mentally ill and find alternatives to simply sending individuals with mental disease who break the law to jail. It also provides $4.7 million to the state’s drug courts.

State Police: The budget is 6.2 percent smaller than the current year budget, but the general fund portion, at $286 million, is 4.9 percent larger than the current budget. For the first time since 2004, Michigan will hold a trooper school to add 100 troopers. It is budgeted with an additional $7.3 million in 2008-09 and with $1 million in set up costs in the supplemental budget for 2007-08. It includes $29 million to cover the cost of seven laboratories across the state, including the two proposed to be closed under the current budget. It includes $37 million in grants to local law enforcement for secondary road patrol, auto theft prevention and control and law enforcement training. It includes $2.5 million to allow palm prints to be added to state’s sex offender registry.

Military and Veterans Affairs: The proposed budget calls for small increases amounting to $500,000 in general funds and $1.8 million in overall funds. The largest share of the budget, $64.7 million, is for the state’s veteran homes in Grand Rapids and the Upper Peninsula. Another $24.6 million is allocated for military training and for the state’s armories.

DLEG: The $40 million request doubles the general fund obligation to the Department of Labor and Economic Growth’s budget, bringing it to $94 million (the budget totals $1.4 billion with all revenue streams included). It provides funding for the Governor’s “no worker left behind” initiative. The worker program provides dislocated workers two years of free training in a high-demand career. It includes $618 million for workforce training programs in general. It also appropriates $10 million for the Michigan Nursing Corps. It provides $2.9 million to increase the regulation of the mortgage industry and to fight predatory lending practices. It also contains $182.4 million for community revitalization projects conducted by the Michigan State Housing Development Authority.

DEQ and DNR: The Department of Environmental Quality would see the larger proportionate increase, with a 42.7 percent increase in general fund to $45 million. Total funding for the department would be $368.5 million a .2 percent cut from current year funding. The general fund increase for the DEQ would allow programs to continue without having to raise fees. It provides no new programs or initiatives, merely maintaining the current programs. Among those is $125 million for grants to local governments for cleanup and pollution prevention projects. Another $67 million will be used by the state for cleanup projects.
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The Department of Natural Resources will see a slight overall increase, .2 percent, to $287 million. The general fund portion of that, $23.5 million, represents a 3.8 percent increase. The DNR would see one new program: $1.15 million for firefighting activities. Additional fire fighters would cost $500,000 and they would see $400,000 in new equipment. The other $250,000 would be for wildfire education programs and $500,000 to keep state forest campgrounds open next summer. The largest portions of the budget will continue to be wildlife and fisheries management ($61.9 million including $1.98 million GF) and parks and recreation ($60.3 million, all restricted). Payments in lieu of taxes come next at $47.8 million ($11.8 million GF).

Department of Transportation: The largest budget with no general fund allocations will see an increase in the 2008-09 proposal that compares to the cut in the funding the department received for the current fiscal year. It totals $3.424 billion in the department, a boost of 2 percent over the current year’s funding. That level would also put transportation funding at $19 million over the amount allocated in the 2006-07 fiscal year. The budget calls for nearly $1.5 billion in construction and repairs on state roads and bridges, another $1.3 billion in local road and bridge construction and repairs, and $285 million for public transportation. It also calls for $192 million in debt service payments, which is a savings of nearly $32 million because short-term debt will be retired. As an economic incentive and tied to the state’s Capital Outlay budget, the department will step up some construction projects.

Department of Agriculture: Includes an increase in general fund spending, but an overall drop in federal and restricted revenues. It totals nearly $103 million, down nearly $5 million from the 2007-08 allocation or 4.4 percent. That marks the second consecutive year the total Agriculture budget would be reduced from the previous year. The general fund portion would be increased by $1.6 million to $32 million. That would also mark the second consecutive year the state has boosted the general fund portion of the Agriculture budget.

The General Government: Most departments and agencies in the General Government budget would see either no change or reductions in their current funding levels. The only departments that would see increases are Attorney General (.7 percent in general funds, 4.7 percent overall), Civil Rights (1.8 percent in general funds, 1.7 percent overall), Information Technology (1.2 percent overall), and Management and Budget (2.1 percent both in general funds and overall). The Executive Office, Legislature, and Auditor General would see no change in their appropriations, while the Department of State would see a 6.6 percent cut in general funds and a 1.2 percent cut overall and Treasury would see a 13.7 percent cut in general funds and a 1.4 percent cut overall.

Department of History Arts and Libraries (HAL): Local libraries would receive $10 million in funding under 2008-09 proposed budget. It includes a general fund increase of 2.6 percent to $40.1 million, and an overall increase of 7.1 percent to $52.8 million over the current year’s appropriation. The $10 million for local libraries is part of a total $22.6 million the state would spend on libraries. It also includes funding for two book distribution centers in the state to distribute materials to non-profit organizations. It calls for $3.7 million to the Mackinaw Island State Parks. It also includes $8.5 million in grants to local arts organizations.

Federal Issues:

Bush Vetoes SCHIP AGAIN- President Bush vetoed a second proposal to reauthorize the SCHIP program, the federal source that funds the MIChild program.

Federal Stimulus Package-This legislation signed by the President would provide $600 payments for individuals -- $1,200 for couples -- plus $300 for each child under 17. It would begin to phase out eligibility at $75,000 in adjusted gross income for individuals and at $150,000 for couples. Workers who can show $3,000 in earned income last year -- too little on which to pay income taxes -- would be eligible for payments of $300. The payments would be sent out separately from tax refunds. Businesses would be given generous incentives to invest in new plants and equipment. The Federal Housing Administration and the federally backed mortgage consolidators Fannie Mae and Freddie Mac would be allowed to insure larger home mortgages. It passed the Senate 91 to 6, the Senate added a provision to grant $300 payments to seniors, disabled veterans and veterans' widows who could show $3,000 in Social Security or veterans' disability benefits last year. Senators also tightened the rules to prevent illegal immigrants from claiming payments. The House took up and passed the Senate measure 380 to 34 vote. Checks would begin reaching recipients by mid-May. The cost is $152 billion.
For more detail please visit http://www.milhs.org/Media/EDocs/FactSheetStimulusRebate.pdf

Bush Budget- Bad for Michigan. Michigan will lose an estimated $606.4 million in federal support for a broad range of critical programs, as large tax cuts for wealthy households would be extended under President Bush’s proposed 2009 budget, a new analysis shows the president’s budget would shift millions of dollars in costs to Michigan. According to a report released last week by the Center on Budget and Policy Priorities, the proposed budget, when adjusted for inflation, would:
• Continue recent cuts in K-12 education, even as the state must meet federal No Child Left Behind mandates. Nationally, funding would be almost 10 percent lower in 2009 than in 2004. Under the president’s budget, Michigan would receive $110.1 million less in 2009 than it received in 2004. Funding for Michigan’s vocational and adult education programs would also be cut by $44 million compared with last year.
• Cut Michigan’s child care funding by $1.1 million, marking the eighth straight year of frozen or reduced funding. Michigan’s funding has fallen by $10.8 million over those eight years. Nationally, funding would be nearly 19 percent lower in 2009 than in 2002.
• Continue cutting Head Start funding. Nationally, funding would be 12 percent lower in 2009 than in 2002, even though the number of poor children under age 5 — Head Start’s target population — has risen significantly over that period. Michigan Head Start programs would get $31.5 million less in 2009 than they did in 2002.
• Cut Michigan’s low-income energy assistance funding by $33.8 million. This cut is equivalent to the cost of providing assistance to 112,500 Michigan households. The Low-Income Home Energy Assistance Program (LIHEAP) helps vulnerable households to pay their home heating bills. Despite rising energy prices, the president’s budget would cut LIHEAP by roughly $570 million nationwide next year, forcing states to cut back on the number of people they help or the amount of help they give each household.
• Cut Michigan’s community development funding by $25.3 million. The Community Development Block Grant (CDBG) helps fund a broad range of community development activities in Michigan and other states, including housing and homelessness programs, improvements to public facilities such as senior and youth centers, and economic development. Under the President’s budget, CDBG funding for 2009 would be 45 percent below its 2001 level. Michigan would receive $85.6 million less for this program in 2009 than it did in 2001.
• Cut Michigan’s funding for repairing, modernizing, and replacing public housing units by $8.8 million. Nationally, funding has already been cut by nearly one-third since 2001, and Michigan’s share of that funding has fallen by $31.4 million over that period. Under the President’s budget, funding in 2009 would be 45 percent below the 2001 level.
• Cut Michigan’s education and training programs for adults, dislocated workers, and youth by $7.6 million, $15.6 million, $5 million. Nationally, each of these programs has been cut by between 29 percent and 39 percent since 2001, and Michigan has lost $22.4 million, $31.7 million, and $25.4 million in funding for these programs over that period.
• Cut Michigan’s funding for clean and safe drinking water by $6.3 million. Some of the biggest cuts in the president’s budget would come in environmental programs, such as grants from the Environmental Protection Agency to help states and localities fund sewage treatment plans, wastewater treatment, and other water clean-up projects. Under the president’s budget, investment in this program would be cut by more than 20 percent compared with last year. Michigan would receive $47 million less for clean and safe drinking water in 2009 than it did in 2001.