Legislative Update

from Government Relations

November 17, 2008

Government Relations Division Meets with Governor’s Office

Reforming the way state government operates was the topic of a private meeting the Government Relations Division held with the Governor’s policy office last week, with the Department of Corrections being discussed as the starting point for governmental streamlining.  For some time the Department has been the targeted of reform proposals as the number of inmates and expense to the State are of the largest in the Midwest.

The Government Relations Division will continue meeting with the Executive office and other stakeholders to advocate for a variety of changes to the Department this fall and into the new year.  There has been a push by the business community to tie the reductions in the Corrections budget to a reduction or elimination of the MBT surcharge.  This has not gained much traction as there is expected to be a substantial budget deficit that these cuts will likely be dedicated to offsetting. 

The Governor is expected to issue an Executive Order before the end of the year which will make drastic reductions to a number of areas of state government.  The budget shortfall for the coming year is expected to be at least $500 million and likely much closer to one billion dollars.

Government reform will continue to be a top priority for the Chamber and the Regional Chamber Alliance in the coming year.

Legislature Jumps into Lame Duck with Both Feet

The legislature turned last week’s session into a committee and floor voting marathon to get as much legislation at least halfway done before breaking for Thanksgiving and the opening of firearm deer season.  The House and Senate voted out over 100 bills to the other chamber for consideration.          

The reason for the vote-athon was that the Michigan Constitution along with House and Senate rules govern the amount of time a bill must be in either the House or Senate for consideration.  With the limited number of session days remaining until the end of the legislative year in December, the bills needed to meet these legislative requirements if they are to be enacted still this year.  Any bills that have not been enacted by the governor by the end of the year are nullified and have to start the legislative process over in January

Here are the Chamber and Regional Chamber Alliance’s end of year priorities that saw action:

Community Colleges Job Training – Both the House and Senate versions of this innovative initiative to allow community colleges to provide or coordinate job training for employers saw action in the House.  The Government Relations Division testified in support of these bills before the House Education Committee last week. 

Over the break, an agreement will be reached between the House and Senate as to which two of the four bills (there were identical versions of the two bills introduced in each chamber) will be sent to the governor for enactment.  Most likely one of the senate bills and one of the house bills will be chosen. The Governor has indicated her support for the bills.

MBT Gross Receipts Calculation – A stripped down version of Senate Bill 1038 was addressed by the House as an alternative if the legislature is not able to agree on the expense portion associated with the Senate bill.  The new House bill does not exempt the collection of sales tax from the gross receipts calculation.  This excluded portion is the most significant part of the bill and impacts the chamber community the greatest.  The new bill does still make a number of changes important to the gross receipts calculation, but none as impactful as the sales tax exemption.    

Which version of the bill gets enacted will likely be part of a larger deal on legislation between the two chambers and the Governor’s office.  The Chamber and the Region Chamber Alliance support relieving the double taxation currently imposed on the business community with the approval of Senate Bill 1038 and will continue to advocate for its passage.

Comment Period on the Proposed 2009 Legislative Agenda Ending

The comment period for the proposed 2009 Legislative Agenda for members closes at the end of the month.  The document will be used as the guiding principles the Regional Chamber Alliance will use to support and promote issues in the upcoming 2009 legislative year. 

The agenda should be available on the websites of the Northwest Michigan Regional Chamber Alliance partners.  Comments can be either directed to Jamie Callahan, SVP of Government Relations, at Jamie@northwestmichiganbusiness.com or by emailing your local Chamber Alliance partner.

The Northwest Michigan Regional Chamber Alliance is a partnership of six chambers of commerce across northwest Michigan with the objective of influencing public policy and acting as the voice of business in northwest Michigan to state and federal legislators.

Office Hours and Committee Information From Around the Alliance

Traverse City Government Relations:  Friday, November 21^th, 7:30-8:30 am

Gaylord Government Relations:  Friday, November 21^st, 8:00 – 9:00 am

Traverse City Office Hours:  Friday, November 21^th, 9:30 am – 10:30 am

Cadillac Lecture Luncheon:  Friday, November 21^st, noon – 1:15p at Baker College

Benzie County Office Hours:  Friday, November 21^th, 3:00 – 4:00 pm

All events are located at the respective chamber office unless noted.