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1:08 pm
Thu June 16, 2011

A Bridge Too Far

Once upon a time, two businessmen wanted to build a bridge across the Detroit River, using their own money to do it. 

The politicians were skeptical. It won’t make money, some said. They’ll sell bonds to finance construction, and people will lose their shirts. Detroit’s mayor had a different objection. He said that if the bridge was successful, the owners would get rich off the public. Funny, but I thought that’s how private enterprise was supposed to work. Eventually, a city-wide referendum was held, and people overwhelmingly voted for the bridge.

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Politics
1:00 pm
Thu June 16, 2011

Michigan gets $3.3 million for fighting food assistance fraud

Credit user redjar

Michigan is getting 3.3 million dollars from the federal government to continue efforts to stop errors in the Food Assistance Program. Senator Debbie Stabenow said the state is improving on ways to stop errors, but there is a lot more work to be done.

"It is really an outrage when people are cheating and defrauding the system particularly when it’s something as basic as food for families. We have people in Michigan all across Michigan who have paid taxes all of their lives who never thought in their wildest dreams that they would be in a position where they needed to get some temporary help," said Stabenow. 

The senator said Michigan is keeping better electronic records on who is using the bridge card and how often it is being used. The USDA said Michigan was the most improved state last year in fighting food assistance fraud.

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Politics
10:30 am
Thu June 16, 2011

Michigan gets $3M for fighting food stamp fraud

LANSING, Mich. (AP) - Michigan will get $3.3 million from the federal government for its past work toward stopping errors in state-administered portions of the food assistance program.

Democratic U.S. Sen. Debbie Stabenow of Michigan announced the U.S. Department of Agriculture award Thursday.

Stabenow says Michigan will receive the additional federal cash as a reward for improvements made during the 2010 fiscal year related to stopping payment errors.

Stabenow said the money should be used to make further improvements in the system to prevent fraud and other abuses in the food assistance program.

Stabenow also called for continued efforts at the federal level to stop fraud and abuse in the program.

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Politics
8:30 am
Thu June 16, 2011

Michigan Supreme Court agrees to decide pension tax question

Credit Michigan Supreme Court
The Michigan Supreme Court has agreed to take up the question of taxing pensions.

The state Supreme Court has agreed to Governor Rick Snyder’s request to make an early ruling on whether the new income tax on pensions violates the Michigan Constitution.

Governor Snyder made the request to avoid what potentially could be years of litigation.

The governor is trying to preempt an expected lawsuit from state employee unions. They say the tax on pensions will illegally reduce their agreed-to compensation under collective bargaining agreements.

The Michigan Constitution says the state may not “diminish” nor “impair” the financial benefits of pension plans.

The governor wants the question settled before the pension tax takes effect next year. The law extends the state income tax for the first time to pensions of people born after 1945.

The Supreme Court ordered oral arguments to be held in the case in September. The court has a Republican majority.

Politics
8:00 am
Thu June 16, 2011

Snyder declines to sign GOP letter on Medicaid reform, Obamacare

Governor Rick Snyder is the only Republican governor in the country to decline to sign a letter outlining their goals for healthcare.

The letter included a call to reverse the new federal health care reforms.

The letter was sent by the Republican Governors Association and signed by every member of the group except for Governor Snyder. The letter calls on Congress to give states more control over the Medicaid program, which provides health coverage for low-income families. But it also says reversing federal health care reforms is the top priority of Republican governors.

Governor Snyder has been circumspect on where he stands on the health care reforms.

“My role is not to be a large advocate on the national scale. My role is to be governor of Michigan," said Snyder. "We’re focused on Michigan issues.”

Governor Snyder says the state will move ahead with plans to enact the federal reforms unless they are struck down by a court.

The governor sent his own letter to congressional leaders, pointing out that Michigan has not cut Medicaid services to low-income families despite a budget crisis.

Politics
7:36 am
Thu June 16, 2011

Senate committee opens bridge hearings

Credit Patricia Drury / Flickr
Michigan Senate hearings on a new Detroit River bridge crossing began this week.

A state Senate committee opened hearings yesterday on legislation that would start the process of building a new bridge connecting Detroit to Canada.

The new bridge would compete with the existing Ambassador Bridge between Detroit and Windsor-Ontario.

Governor Rick Snyder would like the Legislature to approve the initial stages of the bridge project by the end of the month.

Representatives of Governor Snyder’s administration and the Canadian government were on hand to insist the new bridge is an economic necessity that would not cost Michigan taxpayers any money.

Canada has committed to pay all the construction costs with repayment coming from tolls.

Roy Norton, Canada’s consul general to Michigan, says both Michigan and Canada would benefit from expanded border access.

“There are jobs in almost every county of Michigan that depend on companies being able to move things back and forth across the frontier with Canada,” said Norton.

The new bridge would compete with the existing Ambassador Bridge between Detroit and Windsor. The owners of the Ambassador Bridge are trying to stop the project.

Matthew Moroun’s family owns the Ambassador Bridge. Moroun will testify today before the state Senate Economic Development Committee.

“We intend to show the actual statistics," said Moroun. "You know, we’ve been in the bridge business for 30-some years, and you learn a lot about the bridge business from being in the bridge business, I can tell you.”

Moroun says the state and Canada cannot credibly guarantee taxpayers’ money is not at stake in going ahead with a new bridge.

Lieutenant Governor Brian Calley is the governor’s lead negotiator to win legislative support of the bridge. He says a new border crossing in southeastern Michigan is critical to the economic future of the entire state.

“Our biggest customer is Canada," said Calley. "We sell more to Canada than anybody else. They buy more of our goods than anybody else, and so we need more access, better access to that market if Michigan is to be successful.”

Calley and the Snyder administration face skeptics in the Legislature.

Opponents of a new bridge say traffic studies show there’s no need for a new bridge. They also say the state should not be backing a public bridge to compete with a private business.

Many Democratic and Republican lawmakers say they remain skeptical the deal would be good for Michigan taxpayers or that a new bridge is necessary, and they say it will take more before they’ll cast a vote in favor of it.

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