Politics & Government

Election 2012
6:40 am
Mon May 16, 2011

Rep. McCotter won't challenge Senator Stabenow in 2012

Livonia Republican Congressman Thaddeus McCotter says he won't challenge U.S. Senator Debbie Stabenow (D) in 2012.
Republican Conference Flickr

Republican Congressman Thaddeus McCotter of Livonia says he isn’t planning on challenging Democratic Senator Debbie Stabenow for her Senate seat in 2012.

McCotter’s name had been talked about as a possible GOP candidate to run against Stabenow. The Detroit News reports:

McCotter, the fifth-term congressman who signaled last week he was considering a Senate run, said he's stepping aside for other GOP hopefuls.

"I did not wish to be a distraction for the stellar candidates now stepping forward to consider seeking the GOP U.S. Senate nomination," McCotter, of Livonia, said in statement that did not mention specific candidates.

Representative McCotter is just one more Michigan Republican who has decided not to jump into the race. Former West Michigan Congressman Pete Hoekstra and former Michigan Secretary of State Terri Lynn Land have both announced recently that they wouldn’t seek the GOP nomination.

Only one Republican candidate has entered the race so far. Former Kent County Judge Randy Heckman announced he would run for the seat earlier this year.

Stabenow has held the U.S. Senate seat since 2000.

State Budget
6:11 am
Mon May 16, 2011

Snyder says revenue windfall could be used to roll back budget cuts

A budget panel will meet this morning to consider economic forecasts and project how much money the state has to spend in the coming fiscal year.

Michigan’s economy is in the early stages of rebounding and it appears the state is bringing in the tax revenue to prove it. Many lawmakers want to use the windfall - half a billion dollars or more - to reverse cuts to K-12 schools.  And Governor Snyder says some of the money could be used to roll back the size of proposed budget cuts:

“If there’s funds are available, we should be looking at how we deal with some of these cuts. These were tough calls.”

But Governor Snyder and other Republicans also say they want to be careful about spending additional revenue instead of fixing ongoing budget pressures. The governor says some of the money could also be used to shore up the state’s emergency savings in case the economy takes a another tumble.

Politics
5:00 pm
Fri May 13, 2011

There's good & bad news today about Lansing's city budget crisis

Lansing city council president A'Lynne Robinson (right) talks to the news media about the city's budget crisis, while council vice president Kathie Dunbar listens, outside the Southside Community Center
(photo by Steve Carmody/Michigan Radio)

There’s mixed news today concerning the city of Lansing’s budget crisis.  City leaders have been trying to figure out how to deal with a projected 20 million dollar budget deficit.   

 N0w, city council vice president Kathie Dunbar says the city learned this week that its employee health care costs will rise 2 million dollars higher than expected next year. 

She says fortunately the state legislature has passed a budget plan that should guarantee the city 4 million dollars in state revenue sharing funds. 

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Politics
4:26 pm
Fri May 13, 2011

Governor Snyder defends tax plan

Russ Climie Tiberius Images

Governor Rick Snyder defends his tax overhaul, which has drawn a lot of criticism from the public in recent weeks, saying that he is confident that cutting taxes for Michigan businesses will create jobs. The Legislature approved his tax plan yesterday and it’s on its way to Snyder’s desk for his signature.

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Politics
4:15 pm
Fri May 13, 2011

White House, Christie and others respond to Romney's health care speech at U-M

Steve Carmody Michigan Radio

The responses are in for Mitt Romney's health care speech, and they are pretty mixed. 

New Jersey Governor Chris Christie praised former Massachussetts Governor Romney's honesty without commenting directly on either his policies or his candidacy. 

Politico reports:

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Politics
3:45 pm
Fri May 13, 2011

A conversation with Senate Minority Leader Gretchen Whitmer (audio)

Senate Minority Leader Gretchen Whitmer

Yesterday the state Senate passed a comprehensive tax overhaul bill. It went to the House where it was approved and it’s now headed to Governor Rick Snyder’s desk for his signature.

The tax overhaul includes the elimination of the Michigan Business Tax, in favor of a corporate profits tax.  It also eliminates a host of tax breaks, including the income tax exemption for pensions.

Seven Republicans joined the twelve Democrats in the Senate in voting against the proposal. Senate Minority Leader Gretchen Whitmer is opposed to the tax restructuring

Michigan Radio's Jennifer White spoke with Whitmer. Here's the interview.

Politics
1:30 pm
Fri May 13, 2011

Michigan to take in $427M more than expected

Andy Flickr

The House Fiscal Agency says it expects Michigan to take in $427 million more by Sept. 30 than earlier forecasts.

It tempers the good news with a warning that the new business tax cut just enacted will create a deficit in the next budget year that will have to be filled with about $77 million of the extra revenue.

The agency released its figures Friday in anticipation of Monday's revenue estimating conference where state economists will forecast how much tax money the state will take in through 2012.

Politics
11:09 am
Fri May 13, 2011

Lansing city council leaders to discuss budget

The city of Lansing is facing a projected $20 million dollar budget deficit. 

On Monday, the city council is scheduled to vote on a budget intended to close that gap.   As it stands now, the city may have to lay off dozens of police officers and firefighters, as well as making other painful spending cuts to balance the budget.  

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Commentary
11:01 am
Fri May 13, 2011

Now for the Hard Part

Well, Governor Rick Snyder pulled it off. Yesterday, the legislature passed his radical restructuring of the state tax system, agreeing to slash business taxes, eliminate tax credits and for the first time ever, to tax pensions.

The man who was supposed to be a political babe in the woods skillfully guided his agenda home. They will tell you he almost didn’t pull it off. Indeed, Lieutenant Governor Brian Calley had to break a tie vote in the senate to get the bill passed.

But to some extent, this was theater. While some Republicans were genuinely opposed, others were really opposed to being defeated when they run for re-election.

So the outcome was skillfully managed to allow some Senate  Republicans in swing districts to tell their constituents that they voted against Snyder’s plan. But were they really against it? Here’s a clue. When they took a second vote on whether to bypass the waiting period and have the bill take effect immediately, the Republicans unanimously voted to support the governor.

And now for the real test: Will it work? After the vote, the governor praised the legislature for, as he put it, “taking the bold actions necessary to put our state on the path to prosperity, and “paving the way for economic expansion.”

The contrast between Democrats and Republicans on this couldn’t be more stark.

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Politics
10:49 am
Fri May 13, 2011

A conversation with Michigan Governor Rick Snyder (audio)

Governor Rick Snyder said the passage of his tax overhaul package will create a better climate for businesses in Michigan.
Russ Climie Tiberius Images

Governor Rick Snyder took questions from listeners this morning on a public radio call-in show hosted by the Michigan Public Radio Network's Capitol Bureau Chief Rick Pluta .

For those of you who missed it, here's the audio:

The show was produced by the Michigan Public Radio Network in cooperation with WKAR, Michigan Radio, and Michigan Government Television.

Politics
10:09 am
Fri May 13, 2011

Is it time to get rid of Fannie Mae? Congressman Gary Peters thinks so.

Rep. Gary Peters, (D) Michigan
Steve Carmody Michigan Radio

Michigan Congressman Gary Peters is proposing doing away with the federal home mortgage financing system.   Fannie Mae and Freddie Mac became the backbone of the nation’s mortgage system in the past decade.  Fannie and Freddie played a critical role in the housing market collapse.  

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Politics
8:45 am
Fri May 13, 2011

LIVE WEBCAST: A conversation with Governor Rick Snyder

Update 10:50 a.m.

The Webcast is over. Here's the recorded program:

8:45 a.m.

LIVE WEBCAST: A Conversation with Michigan Governor Rick Snyder

9:00 a.m. Friday, May 13, 2011

Public radio call-in show hosted by MPRN's Capitol Bureau Chief Rick Pluta

e-mail your quesitons to: askthegov@mprn.org

video served by
WKAR Public Media at Michigan State University

 

Share your comments below!

State Legislature
7:16 am
Fri May 13, 2011

Education funding deal tied to Senate vote?

Capitol Building, Lansing, Michigan
Matthileo Flicker

It appears a deal was struck between Republicans and Democrats in the state Senate in order for Governor Rick Snyder’s tax overhaul to be voted on yesterday by Democratic state Senators. Chris Christoff, Lansing Bureau Chief for the Detroit Free Press, reports:

A quiet deal from Senate Republicans to give public schools an extra $150 million next year helped smooth the way Thursday for the 20-19 Senate vote to cut business taxes by $1.7 billion, tax pensions and do away with many tax exemptions.

Senate Minority Leader Gretchen Whitmer, D-East Lansing, confirmed the GOP's offer. It came in exchange for all Democrats going on the record with their votes. If any had not voted, Lt. Gov. Brian Calley couldn't have voted to break a 19-19 tie. A 19-19 tie (the Senate has 38 members) is the only circumstance under which a lieutenant governor can vote…

The deal would lessen a Senate-approved cut to K-12 schools from $225 per pupil less than this year, to $75 per pupil less than this year.

In a piece yesterday on Mlive.com, Peter Luke also mentions a deal:

Preserving the 19-19 vote that allowed Calley to break the tie required all 12 Democrats to vote "no." If one had declined to vote, there's no tie and the measure would have failed.

Democrats agreed to all vote in exchange for a promise that a good chunk of the extra tax revenue anticipated for FY 2012 will mitigate cuts in K-12 education.

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Politics
6:48 am
Fri May 13, 2011

Snyder tax overhaul victory caps months of negotiations

Governor Rick Snyder (R)
Michigan Municipal League Flicrk

Governor Rick Snyder had to compromise along the way-- but approval of his tax reform package hands the governor a significant legislative victory. And, signing the bill will allow the governor to retire the signature issue of his election campaign.

Governor Snyder campaigned heavily on scrapping the complex and unpopular Michigan Business Tax and replacing it with a corporate profits tax. He took office saying fulfilling that promise would be part of an agenda of “relentless positive action.”

“So I believe we’re on a positive path to make that happen. It’s that old ‘relentless positive action.’ I think it’s a little bit contagious and I hope it is.”

His legislative win caps months of negotiations that often placed him at odds with Republicans who opposed extending the state income tax to pensions. He scaled back his original propose, and also relented on ending the earned income tax credit for working poor families. The governor says he’s still happy with the result and predicts it will help spur job creation.

But not enough to convince many Democrats, who intend to make this tax package an issue in legislative elections next year.

Politics
5:21 pm
Thu May 12, 2011

Tax overhaul passes Michigan Senate

The Michigan Senate passed a tax overhaul plan today that rolls back taxes on Michigan businesses by about $2 billion. The Michigan House is expected to quickly concur with the Senate action and send the measure to Governor Snyder for his signature.
Lester Graham Michigan Radio

Update 5:21 p.m.

Republicans eked out a legislative victory today as Governor Rick Snyder's tax overhaul package cleared the state Senate.

It fell to Snyder’s lieutenant governor to cast the tie-breaking vote.

Lieutenant Governor Brian Calley delivered a short speech before he cast the vote to break the deadlock on the tax reform package he had a hand in designing.

Calley predicted some lawmakers will pay a price for supporting the administration's tax reforms.

"Because real change comes with real consequence," said Calley. "Real change will come with drama."

Seven Republicans joined Democrats to vote against the package, largely because the measure will end the tax exemption on pension income for anyone born after 1946.

Democrats say it will shift the burden of paying for government services to families and the elderly.

State Senator Steve Bieda was one of the Democrats who voted against the measure.

"It’s shifting the tax to those who are least able to pay in our society," said Bieda. "We are talking about the elderly, people who are living on pensions are going to see a huge increase. I think it’s unjust, unwise, and it’s certainly very unfair."

Bieda tried to delay the vote until next week when the state adopts new revenue numbers. It’s expected there will be a windfall of more revenue than was anticipated at the beginning of the year.

The package eliminates the Michigan Business Tax in favor of a corporate profits tax.

It also eliminates a host of tax breaks, including the income tax exemption for people on pensions.

Overall, the package rolls back taxes on businesses by nearly $2 billion. Most of the businesses that would benefit are small and medium-sized corporations.

Republicans say the result will also be a tax code that is simpler and easier to follow.

State Senate Majority Leader Randy Richardville says there are some hard choices in the package, but they combine to make Michigan more business-friendly.

"So we put the good, the bad, the ugly altogether in one package and said, we believe the greater good is worthy of some of the not-so-good or ugly, so to speak."

The Senate bill restores the earned income tax credit for working poor families, but at a reduced rate.

The House is expected to quickly concur with the Senate action and send the measure to Governor Snyder for his signature.

3:55 p.m.

Lieutenant Governor Brian Calley has cast the tie-breaking vote to win Senate approval of Governor Rick Snyder's tax overhaul plan.

The package scraps the Michigan Business Tax in favor of a corporate profits tax.

It will be a net tax cut on many small and mid-sized businesses.

It also eliminates a host of tax breaks, including the income tax exemption for pensions.

Republicans say the result will be a tax code that is simpler and easier to follow and more business-friendly.

Politics
4:53 pm
Thu May 12, 2011

Warren mayor declines to reveal age

Was Warren Mayor Jim Fouts born in 1942 or 1944? There are discrepancies in public records, and Fouts won't say which one is correct.
City of Warren

The mayor of Michigan’s third-largest city is refusing to reveal his age, saying he fears ageism could play a role in his reelection bid. But that may not be the whole story. 

Jim Fouts served on the Warren City Council for 26 years and was elected mayor in 2007.

But his age is a bit of a mystery.

Michigan Department of Education records show Fouts was born in 1942. His driver's license shows 1944 -- and that's the date he entered on official documents when he ran for public office.

Attorney Arthur Garton says Fouts may have broken the law.

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Politics
4:30 pm
Thu May 12, 2011

Mitt Romney calls for repeal of federal health care law

Presidential hopeful Mitt Romney speaking at the University of Michigan.
Steve Carmody Michigan Radio

UPDATE 6:10pm  

The invitation-only crowd at Mitt Romney’s health care speech in Ann Arbor  Thursday generally liked what they heard.    The Republican presidential contender wants to repeal the federal health care law.  

 Romney painstakingly tried to draw a sharp contrast between the plan he put in place as governor of Massachusetts and the similar plan that President Obama helped create on the national level. 

Medical student Johannes Pulst-Korenberg thought Romney made some interesting points, but failed to make his case against the federal health care law. 

 “I wasn’t really convinced with how he characterized ‘Obama-care’ as a government takeover of Medicare….I don’t think it’s a government takeover of health care.”

But others in the audience liked what they heard.     Romney’s call for repealing the federal health care law replacing it with state-plans made sense to them.   Stan Watson is a member of the Washtenaw County Republican Party.  

 “I think it’s something that he had to stand up and address.  Because, as he said, it became a liability.  I think he’s bringing it back to an asset talking about health care.”  

Romney’s critics say he should apologize for creating a health care system in Massachusetts that became a template for the national health care law.

Romney told the audience in Ann Arbor on Thursday,  he will not apologize for a state system he says is working.  

 

ORIGINAL POST:   Republican presidential contender Mitt Romney says the Obama administration distrusts the free enterprise system, and the nation’s new health care law is an example of that distrust.

Romney spoke to an invitation-only audience at the University of Michigan this afternoon.

The former Massachusetts governor outlined his plan to repeal the health care law, and replace it with incentives for states to come up with their own solutions to the problem of people who are uninsured.

"Our plan was a state solution to a state problem," Romney said. "And his is a power grab by the federal government to put in place a 'one-size-fits-all' plan across the nation."

Romney said the Obama administration's health care plan is flawed.

"They fundamentally distrust free enterprise and distrust the idea that states are where the power of government resides," said Romney.

Romney said he will not apologize for the health care plan he put in place in Massachusetts, even though it might help him politically.

Romney’s biggest obstacle to winning the Republican presidential nomination is probably the health care issue.

He championed a health care plan in Massachusetts that served as a basis for the federal health care law.

The Wall Street Journal editorialized today that unless Romney can explain why his plans for health care reform are different from the president's, then he might make a better running mate for Obama in 2012 than the GOP presidential nominee.

Politics
4:20 pm
Thu May 12, 2011

Detroit missing out on tens of millions in unpaid income taxes

About a third of the income taxes workers owe to Detroit are going unpaid, according to Mayor Dave Bing’s finance director.

Tom Lijana told the Detroit City Council today the city will take in about $226 million in income taxes this year. But he says another $110 million is going unpaid.

"That’s a critical hole in our tax system today," Lijana told council members.

He says the city will push for legislation to allow it to garnish tax returns for people who owe back income taxes:

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Politics
4:10 pm
Thu May 12, 2011

Detroit mayor reject's Bloomberg's immigrant idea

From left: Macomb Co. Executive Mark Hackel, Wayne Co. Executive Bob Ficano, Detroit Mayor Dave Bing, and Oakland Co. Executive L. Brooks Patterson
Sarah Hulett Michigan Radio

Detroit Mayor Dave Bing today flatly rejected the idea put forward by New York’s mayor that immigrants could be the key to reversing Detroit’s population loss.

New York City Mayor Michael Bloomberg made the suggestion during an appearance on “Meet the Press” earlier this month, saying the U.S. became a superpower because of its immigrant population. But Bing ridiculed the idea during an event with the “Big Four” metro Detroit political leaders.

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Politics
11:46 am
Thu May 12, 2011

Close vote expected on broad Michigan tax proposal

The Michigan Senate is voting on a bill that would overhaul Michigan's tax structure today.
user cedarbenddrive Flickr

Michigan could see some sweeping changes to its tax structure after today's vote.

Michigan's former Senate Majority Leader Mike Bishop sent out this Tweet:

"Here we go ... Senate in caucus now, but will soon emerge to vote on Gov's tax proposal. If it passes, I expect it will be by a vote or 2."

From the Associated Press:

The Republican-led Michigan Senate is preparing for what likely will be a close vote on a proposal that would significantly shake up the state's tax structure.

The vote planned Thursday is on a proposal that would cut overall business taxes by about $1 billion in the fiscal year starting Oct. 1 and $1.7 billion the following year. The key would be replacing the Michigan Business Tax with a 6 percent corporate income tax while eliminating many types of tax credits and exemptions.

Some exemptions on retiree income would end, which has drawn opposition from some Republican lawmakers. Some Republicans also will oppose the measure because it would delay scheduled rollbacks in Michigan's personal income tax rate, which is 4.35 percent.

A committee reported the bill to the Senate floor Thursday.

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