Memo
First off, the Governor’s budget proposal:
REVENUE SHARING:
He is proposing a cut of $100 million to cities from statutory revenue sharing.
On top of that, he is putting the remaining $200 million into a pool to be distributed to cities that meet new performance criteria in the following three areas:
Accountability and Transparency
Employee Compensation
Service sharing and consolidation
Additionally, the Governor talked about the importance of looking at employee pension costs and retirement health care for long-term savings.
The other item of concern is the proposal to tax pension benefits. There is some question as to whether the Michigan Constitution allows for the taxation of public pensions. The Governor is claiming it is allowable and will be moving forward. The taxing of private and public pension benefits will generate in excess of $1 billion for the Michigan General Fund.
INTRODUCED LEGISLATION – This list will be updated weekly as additional legislation that affects our organization is introduced.
H 4052 – Prohibits the use of taxpayer-funded equipment, supplies and facilities for union/political activities
H 4054 – Creates the process for establishing right-to-work zones by local units of government
H 4059 – Prohibits public employer contracts that pay union officials for conducting union business
H 4060 – Caps defined benefit pension amount as a percentage of base pay at 55%. Excludes overtime and vacation/sick time from FAC calculation. Only applies to new hires
H 4123 – Requires audit of pension boards
H 4135 – Prohibits Detroit Police and Fire retirement board membership from being a subject of collective bargaining. Adds retiree to Detroit PandF board.
H 4140 – This bill creates the single public employee health plan proposed last year
H 4152 - Requires wages remain at level received at contract expiration. No step increases while a new contract is being negotiated. Also requires any health care increases to be paid by employee when a contract has expired and a new one is being negotiated.
H 4172 – Caps employer health care contribution at 80% for individual and 75% for family
H 4205 – Repeals compulsory arbitration for police and fire. Eliminates 312
H 4214 through 4218 – Expands the powers of the Emergency Financial Manager under Public Act 72.
H 4219 – Requires statutory revenue sharing to be distributed strictly by population. Detroit would be harmed significantly if this were to pass. Approximate impact to City of Detroit would be a cut of $120 - $135 million.
HR 10 of 2011 – Immediate freeze on all state employee compensation for 3 years
S 7 – Requires a 20% health care contribution from public employees to employer-provided health care plans. 10% if the plan includes an HSA.
S 8 – Allows for the creation of “municipal partnerships” that are exempt from 312 provisions.
S 9 – Amends PERA to allow for creation of “municipal partnerships”
S 31 – Require racial profiling training as a condition of MCOLES certification
S 78 – Allows a local unit of government to issue revenue bonds to cover operating deficits
S 90 – Amends revenue sharing act to distribute based strictly on population. Same as House bill 4219
S 116 – Allows local units of government to create “Right to Work” zones. Same as House bill 4054
S120 – A different version to allow for the creation of “Right to Work” zones
SJR B – Constitutional amendment for public employee salary reduction and temporary pay freeze. 5% reduction for all public employees
SJR C - Constitutional amendment to require employee contribution toward health benefits.
UPDATE FOR THE WEEK OF FEBRUARY 28
BILLS INTRODUCED
H 4305 – A proposal to put in place an immigration enforcement law similar to Arizona.
H 4309 – Eliminates the contract and seniority protections in PA 57 of 1988 when two communities merge emergency service operations.
H 4311 – Eliminates contract and seniority protections in the Intergovernmental Transfer Act, PA 8 of 1967.
H 4312 – Eliminates contract and seniority protections in the Urban Cooperation Act, PA 7 of 1967.
S 193 – Legalizes fireworks in the State of Michigan
COMMITTEE ACTION
There was legislative activity on three fronts this past week:
On Wednesday, the House Government Oversight Committee took testimony on HB 4205 that eliminated 312. It was testimony only.
On Wednesday, the House of Representatives passed their version of the Emergency Financial Manager legislation. The Senate is considering their own version and there was testimony in committee Wed/Thurs. We are reviewing the Senate version to see if there is opportunity to amend it. As groups review the legislation, they are finding problems in all sections of the bill. Some form of EFM legislation is going to pass in the next two weeks. We are working to improve various pieces of the bill. We will have a list of proposed changes ready for consideration by the Senate for Tuesday morning, March 1.
Consolidation bills in the House, 4309-4312, were up for a hearing on Thursday afternoon in front of the House Local, Intergovernmental and Regional Affairs Committee. These bills are designed to eliminate any contract or seniority protections when two communities merge operations. No vote was taken. There will be another committee hearing on Thursday, March 3rd with testimony only, no votes. This is an area where there is agreement with MML on contracts staying in effect until they expire.
There is no Government Operations Committee hearing scheduled for this week on the 312 elimination bill.
Please follow the links below to contact your District.
Find a Representative: http://www.house.mi.gov/find_a_rep.asp
Representative List: http://www.house.mi.gov/replist.asp
Find Your Senator: http://www.senate.michigan.gov/fysenator/fysenator.htm
Democrats Caucus: http://www.senate.michigan.gov/fysenator/fysenator.htm
Republican Caucus: http://www.senate.michigan.gov/gop/default.asp
