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| School Aid Budget Approved by Legislature, Granholm 20j veto; Dr Leipa on WJR regarding latest school cuts | |
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| Topic Started: Oct 10 2009, 07:50 PM (3,712 Views) | |
| Jimid | Nov 6 2009, 11:21 AM Post #121 |
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Mike Bishop: School leaders pawns in Michigan budget battle, Gov. Jennifer Granholm to blame By Jonathan Oosting | MLive.com October 27, 2009, 2:02PM AP File PhotoSenate Majority Leader Mike Bishop, R-Rochester, right, talks with Sen. Jason Allen, R-Traverse City, at the state Capitol in September. Michigan Gov. Jennifer Granholm yesterday met with local government and school leaders in Rochester, the latest stop on her tour to drum up support for revenue generation ideas she says will go toward school aid funding she cut last week via veto. Senate Majority Leader Mike Bishop, R-Rochester, was at the roundtable discussion, and says Granholm tried "to get educators to fall into lockstep on her plans to raise revenues." "What these educators don't realize is, they're going to be used as pawns in this process," Bishop told Frank Beckmann this morning on WJR AM-760, "because soon she'll also be asking for revenues in other areas of the budget as well," Bishop criticized Granholm for using her veto pen and causing panic by making the cuts in the middle of schools' budget year. http://www.mlive.com/news/detroit/index.ssf/2009/10/mike_bishop_school_leaders_paw.html Granholm has proposed a number of ways to raise additional revenue, including an expansion of bar hours, raising taxes on tobacco products and a temporary freeze on increases in the personal exemption for income taxes. Under the k-12 budget she eventually signed, most districts will receive around $165 less per student, but Granholm said that further cuts could be necessary if lawmakers can't raise more money for schools. "By presenting me a school aid budget for fiscal year 2010, you prevented an immediate fiscal crisis in our public schools. However, unless you act to fully fund this budget, it is only a matter of weeks before that crisis confronts our schools with additional destructive midyear cuts," Granholm warned in a letter to lawmakers last week. Bishop also took to the Senate floor today to announce he had written letters to superintendents of districts hit hardest by the cuts, pointing out that Granholm is to blame. Granholm has until midnight Saturday to sign additional budget bills. |
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| Jimid | Nov 6 2009, 11:22 AM Post #122 |
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L. Brooks Patterson joins with protestors outside closed-door meeting with Gov. Jennifer Granholm By Jonathan Oosting | MLive.com October 27, 2009, 7:00AM L. Brooks Patterson wasn't invited to the closed-door roundtable discussion with Gov. Jennifer Granholm in Rochester on Monday, but the Oakland County executive made his feelings known outside, where he gathered with protesters. Granholm met with local and school officials to discuss education funding, but Patterson said he was happier outside with the protesters than if he was at the meeting, which he described as a political attempt by Granholm to cull favor for tax increases. “The governor has created a crisis by vetoing line items dealing with education and now she’s here today — and not only here, she was in Livonia, Grand Rapids and all over the state — saying, ‘Look, I had no choice so call your legislators,’ ” Patterson said, per the Oakland Press. “She wants people to call their legislators and raise taxes.” Granholm has proposed a series of revenue increases to help avoid per-pupil cuts to education and balance the budget, including an expansion of bar hours, raising taxes on tobacco products and a temporary freeze on increases in the personal exemption for income taxes. Patterson also accused Granholm of choosing Rochester to provoke Sen. Majority Leader Mike Bishop. “That was an in-your-face move — she knows this is (Sen.) Mike Bishop’s home district and her and Mike have been squaring off over the budget,” Patterson told the Press. For his part, Bishop said he was happy to have Granholm in Rochester, but he echoed Patterson's sentiment that her proposed education cuts were a ruse. “Because I told her what I thought of her and I told her what I thought about the plan,” Bishop said after the meeting. “I think it’s horrible and I think using kids as a tool to get a tax increase is about as dirty as it gets.” Granholm said the roundtable was productive, and she reiterated the fact she's not pushing for a general tax increase. “I was asking for specific ways to fund our school system without a general tax on the public,” she said, per the Press. “We do not want this downturn in our economy to eviscerate all the gains that we have made and all the goals we have set for trying to get these kids to go to college and beyond and to stay here and be part of a new, reshaped Michigan economy." http://www.mlive.com/news/detroit/index.ssf/2009/10/l_brooks_patterson_joins_with.html |
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| Jimid | Nov 6 2009, 11:26 AM Post #123 |
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The Budget Battle Over Education Written by Kari Boyd Monday, 02 November 2009 16:17 Govenor Granholm and the legislature are in a bind. Granholm line-item vetoed an additional $127 per pupil, on top of the $165 per pupil already in the budget, as well as $52 million for high-spending school districts. Granholm claims she did so because there wasn't enough revenue coming in to pay for the budget passed by congress. She is pleading with the Republican-majority in the Senate to raise more "revenue", in other words, raise more taxes. The current economic climate shows falling sales and income tax revenue as people make and spend less than previously. Gov. Granholm considers additional K-12 school budget cuts Senate Majority Leader Mike Bishop says that taxing the already over-taxed public would be a mistake and that using children as a way of forcing more taxes is just plain dirty. This statement comes after Granholm held another closed door meeting with school district officials, with a few noteworthy ones absent, asking for thier help in getting more revenue from the legislature. This meeting drew a large crowd of protesters ranging from moms to Oakland County Executive L. Brooks Patterson, who was not invited to attend the roundtable meeting. The protesters argued that government and school officials alike knew that cuts needed to be made and that taxing the already struggling public was a mistake. Granholm countered after the meeting that she was hoping to avoid a tax on the general public to fund education. Granholm meeting draws protesters Bishop has said repeatedly the Senate does not intend to approve tax increases because the people of a state with a nation-leading 15.3 percent unemployment rate can't afford them. Granholm supports a 13 percent reduction in business tax credits, another increase in taxes on noncigarette tobacco products, and freezing the personal exemption from the state income tax in order to erase the $127 per pupil cuts and the $52 million cuts from high-spending districts. Granholm hopes to preserve the Michigan Promise scholarship for college students by limiting the income tax credit for low wage-earners to 12.5 percent rather than the scheduled 20 percent. The Governor and the Legislature have till midnight on October 31st to figure the budget out. Granholm, Bishop battle over tax hike Whatever happensn, if taxes are raised or created or left alone, one thing is clear: there must be some level of responsiblity claimed by government and school officials for letting this crisis come down so close to the wire. Our schools cannot keep sustaining such incredible cuts and our people cannot keep paying higher and more taxes as unemployment rises. The numbers showed a long time ago that tax revenue was going down as well as school enrollment was. No matter what our Michigan government and school officials do, they must do something, soon. The effects of the pro-rata cuts made by Govenor Granholm will have an intense affect on all school districts. Saugatuck Schools for instance, boasting a 96% graduation rate and of those 98% going on to 2 or 4 year colleges, is among the disricts, who despite planning for a hit to thier budget, are now left scrambling for funds. Obviously parents, educators, and administrators are all discouraged about the budget cut, but are not down for the count quite yet. Superintendant Rolfe Timmerman says that the quality of education will not disappear, the schools will have to become, "leaner, and meaner, and come out swinging" showing that even in these trying times, attitude is half the battle. Saugatuck Schools scramble to deal with funding cuts The optimism runs out short of Capital Hill. The Govenor, after vetoing $52 million for districts and another $127 per pupil, is trying to put the spotlight on the Senate Republicans as her final term as govenor nears its end. By design, the $52 million cut affects many of the districts that high-ranking republicans come from, including Senate Majority Leader Mike Bishop's home district of Rochester. Granholm has said that if Senate Republicans want to have an all cut approach to the budget, then cut away, she may be hoping that the cuts will then be "blamed" on the Senate and not on her. Critics of the cuts claim that more could have been cut out of the Corrections budget and that new or higher taxes should have been considered more deeply. The cashed-strapped middle class however, does not think along those same lines. http://www.michiganpolicy.com/index.php?option=com_content&view=article&id=627:the-budget-battle-over-education&catid=35:k-12-education-policy-briefs&Itemid=117 |
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| Jimid | Nov 6 2009, 11:32 AM Post #124 |
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Budget battles tests power of Granholm, education lobby By Ed Brayton 10/28/09 7:13 AM Tim Skubick has a post on his blog about Gov. Granholm’s latest move in an elaborate chess game to force the Republican-controlled Senate to vote for more revenue, something they have so far refused to do. And he rightly says that the outcome will be a measure of her power and that of the education lobby: At the end of this historic battle, we’ll know how much juice the state’s education lobby really has and whether Gov. Jennifer Granholm is a wounded lame duck. The governor rolled the dice last week in a gutsy move to round up some GOP senate votes to raise new revenue for the schools. She announced a whopping $292 cut per pupil across the state. Republicans blamed her for for trying to force them to cough up the bucks. That’s exactly what she was doing and the Senate GOP leader labeled it a form of political extortion… The massive and well-heeled and supposedly influential school lobby is standing behind the governor 1000%… But with the education lobby helping her to turn up the heat, she hopes to net three, four maybe even five GOP defections. When the dust settles, we’ll know how powerful it and she really are. And we’ll know just how resolute the state GOP is in maintaining their no taxes pledge. She only needs two Senate Republicans to bow to pressure and vote for a tax increase to restore the K-12 budget cuts. And as we noted earlier, the cuts to the 39 out-of-formula school districts that the governor made by line-item veto took more than $20 million from schools in the districts of two key Republican Senators, John Pappageorge and Nancy Cassis. http://michiganmessenger.com/28904/budget-battles-tests-power-of-granholm-education-lobby |
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| Monkfish | Nov 6 2009, 12:02 PM Post #125 |
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While Granholm has been a disappointment as Gov, one can't help but laugh at the tea party mentality and "protests" when she speaks of rasing taxes on tobacco, water bottles, juice boxes, etc. Guess what...if you don't smoke your taxes WON'T GO UP! If you don't buy bottled water your taxes WON'T GO UP! A freeze on the personal tax exemption? A FREEZE? Ummmm..that's not an increase....just like renewing millages was not an increase...and everyone seems happy about that. |
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| Jimid | Nov 6 2009, 12:03 PM Post #126 |
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House committee: Spend stimulus now LANSING, Mich. - Public schools would avoid most of a $127 per-pupil cut in December, but likely face deeper cuts in the future, if the state Legislature agrees to spend education stimulus dollars this year instead of next, according to the Michigan Information & Research Service Inc. The House Appropriations Committee voted Wednesday to use up to $184 million in stimulus funds to boost the current school aid budget by about $117 per pupil, MIRS reported. The previous plan was to save those stimulus dollars for 2011 to cushion an anticipated cut of up to $500 per pupil due to declining state tax revenues. The House bill would remove the need for a $127 per-pupil proration that Gov. Jennifer Granholm announced in October. Committee members reported out the bill on an 18-1-7 vote, with most Republicans abstaining, MIRS reported. Some committee members still prefer the original plan to spread out stimulus spending and at least one said that the House should wait until January revenue estimates are available, according to MIRS. In related news, an amendment by Rep. Richard LeBlanc, D-Westland, to restore $51 million in funding to so-called "20j" schools was defeated handily, MIRS reported. The payments go to wealthier school districts that would otherwise lose revenue under Proposal A restrictions. http://www.educationreport.org/pubs/mer/article.aspx?id=11276 |
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| Administrator | Nov 6 2009, 11:26 PM Post #127 |
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News from the WLEA Prez As the new president of the Walled Lake Education Association, I want to keep our members informed of some of the multitude of issues that are confronting us in this new school year. As educators we are confronted with both academic and financial issues that influence our daily activities in our schools. On my blog you will find entries about these issues, as well as some that are regarding my own personal interests in life! Friday, November 6, 2009 Potential Funding Reinstatement - HELP!!!! The news from Lansing yesterday - Thursday, November 5th. An appropriations bill was passed by the House that would allow cuts to K-12 schools to be lessened. The bill would use federal stimulus money to give back all but $10 of the $127 per student cut previously ordered by Governor Granholm. The bill also restores $800,000 for school bus inspections. The bill also contained an amendment that would PARTIALLY restore $52 million for “high-spending school districts” – the 20J funds - that were eliminated by Gov. Granholm with her line item veto of the 20 J funds. HERE’S the CAVEAT to the return of the 20J funds in the House’s bill ---- half of the resotoration of the $52 million would be given to the “high-spending districts” and the the other half would go to the state's lowest-spending districts. Another problem - the money to restore the $52 million would come from the “Michigan Future Fund”, a pot which does not yet have a revenue source. This is a problem for the Republicans in the Senate who are ALSO opposed to using the stimulus money set aside for next year. Matt Marsden, spokesman for Senate Majority Leader Mike Bishop, R-Rochester was quoted as saying, "The House has $100 million in revenue in the Earned Income Tax Credit freeze bill that Democrats refused to use.” As you can see, the disagreements between the two parties continues and threatens to abort any attempt to restore at least some of the funds that Walled Lake has lost. http://tfitzjake.blogspot.com/ |
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| Administrator | Nov 7 2009, 12:28 AM Post #128 |
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State aid for schools gets House boost Bill calls for using federal funds meant for 2011 BY CHRIS CHRISTOFF and LORI HIGGINS FREE PRESS STAFF WRITERS Deep cuts in state aid to schools stirred action Thursday, as the House voted 74-29 to restore $184 million using federal stimulus money set aside for fiscal year 2011. That would increase state aid to schools by about $115 per pupil more than the new budget signed last week by Gov. Jennifer Granholm. Majority Republicans in the Senate oppose the idea, though Granholm said she would back it. The Democratic House bill also calls for reinstating half of the $51.5 million that Granholm ordered cut from 39 specific school districts that are relatively high-cost. "This bill goes to the Senate, and let's see if they do the right thing and put the funds in this bill so that we can get these schools whole," said Rep. Mark Corriveau, D-Northville, whose home school district is among the hardest hit by cuts. Senate GOP spokesman Matt Marsden said tapping extra federal money for schools this year will create bigger problems next year, when lagging state revenues are expected to force more reductions. Marsden called on House Democrats to approve a Senate bill that would add $100 million to school aid by halting a scheduled increase in the Earned Income Tax Credit for low-income families. House Democrats and Granholm complained that the credit change was linked to eliminating a tax surcharge on businesses. Marsden said that link could be broken. The state has cut more than $500 million in school aid for this year, which amounts to $600 per pupil or more for some districts, including Northville, Harper Woods, Livonia and Avondale. Granholm, in Macomb County on Thursday, said she would accept using $184 million in federal stimulus money to restore some of those cuts. But, she added, "It's basically kicking the can down the road. ... We will be back at it again in a couple more months." Granholm met with parents and educators at the Macomb Intermediate School District, where parents expressed concern about the impact of state cuts. Marilyn Rolfe, a parent of two in the Center Line school district, said she will consider leaving Michigan if things don't improve. "I will do whatever it takes to give my kids a quality education," Rolfe said. http://www.freep.com/article/20091106/NEWS06/911060363/1322/State-aid-for-schools-gets-House-boost |
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| Administrator | Nov 7 2009, 12:30 AM Post #129 |
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House passes bill to use federal stimulus money to reduce school cuts By Amy Lane Rated Not yet rated Rate This Not rated Advertisement The state House has passed a measure to use federal stimulus money to stave off most of an impending $127 per-pupil cut facing school districts. House Bill 4860, sponsored by Terry Brown, D-Pigeon, would tap $184 million in American Recovery and Reinvestment Act money that was to be used in the state School Aid Fund in the next fiscal year, fiscal 2011. The money would instead be used this year to reduce an upcoming $127 per-pupil cut to $10 per pupil. The Granholm administration in October notified school districts that they would receive the $127 per-pupil cut because of new estimates of declining revenues in the School Aid Fund. A previous $165 per-pupil cut would still remain for fiscal 2010. If additional revenues are identified, the bill would also direct $25.7 million to districts that get among the highest per-pupil payments statewide, and $25.7 million to under-funded districts. Granholm last month vetoed $51.5 million in supplemental payments to the wealthier districts. The legislation, which now goes to the Senate, also calls for completing the annual K-12 budget by June 1 instead of the Oct. 1 deadline that is the start of the state’s fiscal year. http://www.crainsdetroit.com/article/20091105/FREE/911059989# |
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| Administrator | Nov 7 2009, 12:31 AM Post #130 |
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Mich. House taps 2010 stimulus funding for schools By KATHY BARKS HOFFMAN (AP) – 13 hours ago LANSING, Mich. — The Michigan House voted to tap federal stimulus money set aside for next year to soften a cut in school funding now, but it's unlikely the move is going to win the support of the state Senate. By a mostly party-line vote of 74-29 on Thursday, a majority of House members said the $184 million should be used to help schools avoid all but $10 of a $127-per-student cut Granholm ordered last month. Schools still would see their funding drop by the equivalent of $165 per student. That was the decrease lawmakers passed in the school aid budget for the fiscal year that started Oct. 1. The bill also would give back half of the nearly $52 million Granholm vetoed from 39 of the state's wealthier districts and spend an equal amount on school districts at the lower end of the scale. House Democrats say they'd pay for this with a mix of tax and fee hikes that have yet to pass the House and are unlikely to pass the Senate. School districts shouldn't count on getting any of the money back just yet, given the reaction of Republicans who control the Senate. Granholm said Thursday she would sign the bill if it got to her desk, but she'd prefer a longer-term option. "Using Recovery Act dollars merely kicks the can down the road and creates a bigger problem for the school aid fund next year," Granholm spokeswoman Liz Boyd said. The Democratic governor has urged lawmakers to restore the $127 per student by raising taxes on tobacco products other than cigarettes, reducing certain business tax breaks and eliminating an inflationary increase in the state income tax personal exemption. A Senate Republican spokesman said the House should tap $100 million saved by freezing a tax credit for low-income workers rather than the stimulus money. A bill to do that has passed the Senate but has not been taken up by the House, in part because the bill is tied to one that would begin rolling back a business tax surcharge this year. The House is "trying to take $184 million in federal stimulus money that we've all agreed that we're going to need to not run off a cliff in the next fiscal year ... and ignoring $100 million in revenue that's sitting there available for use," said Matt Marsden, spokesman for GOP Senate Majority Leader Mike Bishop of Rochester. Granholm opposes giving businesses a tax break if it relies on freezing workers' tax credits, even if it means more money for schools. The governor said she cut $127 per student because state revenues are falling, creating a $212 million hole, and she doesn't want to wait until a revenue estimating conference in January to adjust school aid payments. Republicans dispute that the school aid budget is in the red and say any shortfall can be addressed with the extra $100 million they've suggested. School districts have said that, regardless of the size of the cut, they'll to have to slash staff and services halfway through the school year to make ends meet. Brad Biladeau of the Michigan Association of School Administrators said lawmakers aren't living up to their vow to support public education. "This is just more political posturing, and it's predicated on more promises," he said. "While it moves the ball down the road, it will by no means get us across the finish line." Lawmakers voting against using the stimulus money said the state was wrong to solve its current budget problems with money it should be saving for next year, when schools are likely facing cuts of $300 to $400 per student even if the $184 million in federal stimulus funds is still available. "We're creating false hopes out there," said Rep. David Hildenbrand, R-Lowell. Supporters, however, said school districts simply couldn't cope this year with cuts ranging from nearly $300 per student for all school districts to more than $600 for the 39 losing the extra funding. "Investing in our children is the best decision we can make right now," said Rep. Terry Brown, D-Pigeon, who oversees the public schools appropriations subcommittee. "With tough economic times ahead, we must do all we can to protect their future and find ways to avoid even deeper cuts to funding next year." http://www.google.com/hostednews/ap/article/ALeqM5iLOotBHM2aqRej9L4wOYMEW1En0gD9BQ4Q000 |
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| Administrator | Nov 7 2009, 12:34 AM Post #131 |
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New School Funding Plan Could Create Problems Next Year Dustin Dwyer (2009-11-05) (photo by Steve Carmody, Michigan Radio) GRAND RAPIDS, MI (Michigan Radio) - A new plan in the state House could reduce a deep cut in school funding this year. But the plan could create bigger problems for next year. The House voted to use $184 million in federal stimulus money to eliminate about a third of this year's funding cut for schools. The state had been planning to save that stimulus cash for next year, when the financial picture for schools could be even worse. John Helmholdt is spokesman for Grand Rapids Public Schools. He said it's hard to be against funding for schools, but this plan could create more problems. "If there's one thing, there's one message, we don't need a short term solution," he says. "And this is kind of smells like a short term solution that may have a longer term impact unfortunately." Michigan schools are facing a cut of about $300 per student this year. The plan to use the stimulus money this year still has to be approved by the Senate, and be signed by the governor. Contact Dustin Dwyer at dtdwyer@umich.edu. http://www.publicbroadcasting.net/michigan/news.newsmain/article/7/0/1574773/Education/New.School.Funding.Plan.Could.Create.Problems.Next.Year |
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| Administrator | Nov 7 2009, 12:36 AM Post #132 |
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Granholm, GOP still disagree on how to pay for education Candice Williams / The Detroit News Clinton Township -- Gov. Jennifer Granholm said Thursday she'd sign a measure the House passed Thursday that would use stimulus money to help lessen school cuts. But whether it gets past the Senate is uncertain. Granholm made the announcement as she met with a group of education and community leaders Thursday afternoon in Clinton Township. Earlier, the House passed a supplemental school aid appropriations bill that would use federal stimulus funds to give back most of a $127 per student cut ordered by Granholm on Oct. 23 because tax receipts that feed the school aid fund are down due to the failing economy. Advertisement The bill would replace $184.9 million in school aid revenue with $184.1 million in stimulus cash. This would free up funding to eliminate all but $10 per student of the $127 a pupil proration. The bill also would provide $800,000 for school bus inspections, which were previously funded at $1.4 million but eliminated in the 2009-10 budget. The bill has to be approved in the Senate, where it faces opposition from majority Republicans who are opposed to using the stimulus money set aside for next year. "This is absolutely ridiculous," said Matt Marsden, spokesman for Senate Majority Leader Mike Bishop, R-Rochester. "The House has $100 million in revenue in the Earned Income Tax Credit freeze bill that Democrats refused to use. Granholm called on the Legislature to freeze the personal exemption on the income tax at the same level it is this year. It is not a tax increase, Granholm said, but it would generate $55 million for the school aid fund. The second measure she supports is to take 13 percent off the loophole and exemptions that special interests have carved into the tax structure, she said. A third measure would be to tax loose tobacco and flavored cigarillos at the same level as cigarettes. About 55 teachers, school leaders and parents attended a roundtable Thursday afternoon. The main sentiment among the group was that the way Michigan schools are funded has to change. "We have to find other ways through reforms and revenues to provide our students with high-quality education," said Christine Johns, superintendent of Utica Community Schools. "If we want high quality schools we have to pay for them," Johns said. Last month, Michigan public school districts suffered a double setback when the governor signed a school aid bill that cut $165 per pupil in funding as well as another $127 per pupil in additional cuts due to a shortage in school aid funding. Also, 39 high-spending districts lost funding when the governor cut $52 million earmarked for those districts in the wake of 1994 Proposal A school finance reform. Granholm said her request of the Legislature would eliminate the $127 per pupil cut as well as the cut of the $52 million in 20-j funding. The House bill passed Thursday also had an amendment that would restore $52 million for high-spending school districts that was eliminated in a line-item veto when Granholm signed the school aid budget. Half the $52 million would be divided equally between the high-spending districts and the state's lowest-spending districts. The money to restore the $52 million would come from the Michigan Future Fund, a pot which does not yet have a revenue source. Michelle Pugh, a parent with three students in the Utica Community Schools, said she wants the Legislature to work with the governor to find a solution. "This is about our kids," she said. "They are going to have to come together so that we don't have further cuts to our schools and additional impacts on the classroom. It's not right." Marilyn Rolfe, a parent of two young children in the Center Line Public Schools, said she may leave the state. "I will do whatever it takes to get my kids a quality education and if that means I move out of state, I will do it," she said. Laura Kropp, a board member for the Mount Clemens Community Schools, said the district has had to make some pretty deep cuts. Kropp said she supports Granholm's revenue generating plan. "I think the three points for revenue are essential," she said. "You can not slash your way out of a problem. I think we're going to keep revisiting this problem if we don't bring this issue to the forefront and fix this issue." Granholm will continue her meetings in Monroe today and the Plymouth-Canton Community Schools on Monday, said Megan Brown, the governor's deputy press secretary. Detroit News Staff Writer Karen Bouffard contributed. http://www.detnews.com/article/20091106/POLITICS02/911060373/1022/Granholm--GOP-still-disagree-on-how-to-pay-for-education |
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| Jimid | Nov 7 2009, 01:59 AM Post #133 |
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"The money to restore the $52 million would come from the Michigan Future Fund, a pot which does not yet have a revenue source." OTHER TOBACCO PRODUCTS House Bill 5355 (Proposed H-9 Substitute) Sponsor: Rep. George Cushingberry, Jr. Committee: Tax Policy Complete to 10-7-09 A SUMMARY OF HOUSE BILL 5355 (Proposed H-9 Substitute) House Bill 5355 (H-9) would amend the Tobacco Products Tax Act to change the taxation of other tobacco products effective October 1, 2009. Specifically, the bill would exempt little cigars and moist snuff from the current tax of 32% of the wholesale price and would instead impose a tax equivalent to the tax on cigarettes (10 cents per cigarette or little cigar) to little cigars and a $1.28 per package or can of moist snuff. Also, the bill would double the tax rate on other tobacco, except for cigars, little cigars and moist snuff, to 64% of the wholesale price. This bill includes imposing the new tax structure on the inventories of all other tobacco products. The intent of the bill is to earmark all new net revenue to the Michigan Future Fund. The Michigan Future Fund shall be appropriated to only revenue sharing, promise grants, state aid to libraries, payments in lieu of taxes, and aid to school districts. This new fund would be created by House Bill 5355 by adding a new Section 12a to the act. MCL 205.422 et al. FISCAL IMPACT: This bill would increase the tobacco products tax by an estimated $43 million on a full year basis. If the tax changes in this bill were to start November 1, 2009, then the FY 2009-10 estimated impact would be an increase in revenue of $39.4 million. The intent of the bill is to earmark all new net revenue to the Michigan Future Fund. http://www.legislature.mi.gov/documents/2009-2010/billanalysis/House/htm/2009-HLA-5355-2.htm http://www.legislature.mi.gov/(S(4pucfsqljli4idnvk54az0yq))/mileg.aspx?page=GetObject&objectname=2009-HB-5355 |
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| Jimid | Nov 7 2009, 02:07 AM Post #134 |
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Maybe we should start a "Have a Chew for Your Children" campaign. "Support Public Education, Smoke Em' If Ya Got Em" "Hey Kids, This Smoke is For You"  Does this mean we will fund this from a place that is yet to funded, with money earmarked for police, fire, vaccinations etc???? I wonder what these people think. Local Leaders, Police, Educators Rally for Michigan Future Plan House plan will protect priorities that will turn Michigan's economy around — October 09, 2009 State Representative Woodrow Stanley of Flint (speaking) is joined by fellow State Representatives Richard E. Hammel of Mt. Morris Twp. (second from left) Lee Gonzales of Flint Twp. (second from right) and Jim Slezak of Davison (far right) and local leaders at a press conference in Flint on Friday, Oct. 9, 2009, to show support for the Michigan Future Plan. The House Democrats plan focuses on investing in three priority areas – local police and fire protection, the Michigan Promise Scholarship, and health care for kids and seniors – that are essential to Michigan's economic turnaround. FLINT – State Representative Woodrow Stanley (D-Flint) today joined local leaders, police, educators and other supporters at the University of Michigan – Flint to tout the Michigan Future Plan, which secures programs that are critical to protecting Michigan's future and turning our economy around. The plan, which passed the House this week, focuses on investing in three priority areas – local police and fire protection, the Michigan Promise Scholarship, and health care for kids and seniors. "My colleagues and I have already reduced state spending by $1 billion, and while we continue to work to streamline government, we must ensure that we do not make cuts that mortgage Michigan's future," Stanley said. "We must do everything we can to protect the Michigan Promise Scholarship, local police and fire protection, and health care for kids and seniors. That's why we passed the Michigan Future Plan – to invest in these programs that are vital to our residents and our state's economic turnaround." All money raised into the Michigan Future Fund would be dedicated exclusively for police and fire protection, Promise Scholarships, health care and libraries. The Michigan Future Plan: •Restores local police and fire protection; •Safeguards Promise Scholarships; •Provides health care for kids and seniors; and •Protects Michigan libraries. State money that local governments use to pay for local police and fire protection has already been slashed by more than $500 million this decade, causing Michigan communities to lose more than 4,000 firefighters and police officers since 2001. "Our city and our residents can't afford to make any more sacrifices," said Flint Mayor Dayne Walling. "As a city, we are working to attract new businesses and we have to show that the state of Michigan will be a strong reliable partner in educating residents, taking care of children and seniors, and maintaining a proper public safety system. Especially in these tough economic times, it's imperative that we have a balance of spending cuts and revenue, this plan will do that." Nearly 100,000 Michigan students who rely on the $4,000 Promise Scholarship to attend community college, a university or vocational training have already been promised part of that tuition money for the current school year. Funding for the Michigan Future Plan comes from reducing tax exemptions for corporations and maintaining the personal income tax exemptions at current year levels. Lawmakers also are looking at enforcing the tobacco tax more fairly and expanding late night liquor licenses. In addition to the Michigan Future Fund, the House passed the Health Care Rebate to help ensure that 1.7 million children, seniors, and residents with disabilities have access to life-saving medical treatment by bringing reimbursement rates for Medicaid more in line with Medicare. Under the plan, Michigan will receive a return of nearly $3 in federal matching funds for every dollar contributed – bringing in $716 million to ensure kids and seniors have access to x-rays, vaccines and life-saving treatments. An estimated 80 percent of doctors will benefit from the plan, and increasing the number of doctors willing to treat patients in need will increase access to health care for nearly 2 million residents while also reducing the financial burden on the state. "It's no secret we're facing the toughest times many of us have ever seen," Stanley said "However, we cannot expect economic recovery if we ignore public safety, dodge our obligation to educate our future workers, and abandon our seniors and children who need health care. These are all priorities that are critical to moving our state forward." http://www.housedems.com/news/article/local-leaders-police-educators-rally-for-michigan-future-plan/house-plan-will-protect-priorities-that-will-turn-michigans-economy-around/ |
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| LPS Reformer | Nov 7 2009, 04:34 PM Post #135 |
The schools exist to educate, not employ.
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I wouldn't be surprised if the folks in Lansing want to legalize prostitution so they can tax it. Sigh...... |
 LPS Reform Blog++++LPS Salary List 12/07 LPS Salary List 6/09 Contact me at: LPSReformer@gmail.com | |
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| Anna Krome | Nov 7 2009, 07:17 PM Post #136 |
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Isn't Congress culpable in this scenario as well? They could have voted to override her veto with the necessary majority. The fact that it never came to the floor for a vote says a lot about what Congress is willing to do--except sling mud. I have heard from a teacher who is friends with AFSCME workers and they feel seriously misled by administration and the "found" $4 million. There are rumors flying that the first thing to be cut will be bus service. Rumors all. Take it as you will. |
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Krome on Cars | |
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| LPS Reformer | Nov 8 2009, 01:23 AM Post #137 |
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The schools exist to educate, not employ.
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Rumors that serve to create fear in the lowest paid employees, so that they will accept cuts that the highest paid won't even consider. |
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LPS Reform Blog++++LPS Salary List 12/07 LPS Salary List 6/09 Contact me at: LPSReformer@gmail.com | |
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| Momof4 | Nov 8 2009, 09:52 AM Post #138 |
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I agree, LPS. Now is the time for the employees to demand that the cuts begin at the top and not cave to the pressure. |
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| one_observer | Nov 8 2009, 10:34 AM Post #139 |
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COMMENTARY by TOM WATKINS: Reform of state government at all levels needed November 5, 2009 * Comments(1) The governor cannot fix what is wrong with our schools by forcing a tax increase. What is required, and has been avoided and ignored for far too long, is sensible reform of government at every level — and specifically in our system of public education. Our schools are increasingly unstable, unbalanced and ultimately unsustainable unless bold changes are made to alter the present course. Putting money into a dysfunctional system will not fix the problem. The governor and Legislature have ignored the numerous reports calling for sensible reforms in Michigan schools for at least the past five years. We cannot simply cut or tax our way out of this crisis that our leaders' inaction has let fester. The foundation on which this great state was built, the auto industry, has been eroding for decades and has imploded in the last year. The sooner we accept the new economic reality, the sooner we can begin the rebuilding process necessary to get Michigan working again. As state schools superintendent in 2004 I issued a report: Structural Issues, Surrounding Michigan Schools in the 21st Century (www.michigan.gov/documents/michiganschoolfunding_110803_7.pdf). The report demonstrated that Michigan's system of public education was unsustainable back then. The report asked that we reimagine our system of public education — or start from scratch — taking all the money we could possibly spend on education, setting priorities and then figuring out how to invest it to help prepare our children and state for the disruptive, hyper-competitive, transformational, global knowledge economy. Let's toss aside the present 550 local school boundaries and recast them to be more efficient, eliminating tiny districts to remove administrative redundancies. The rising cost of health care and pensions for educators is absorbing nearly every dollar the governor and Legislature invest in schools. The state would need to invest nearly $300 per student, per year into the foreseeable future (approximately $500 million/ yr) just to cover health care and pension costs. This figure is as unrealistic as it is unsustainable. If we continue down this path, we should change the name of the department of education to the department of health care and pensions — because that is where the money is going. PRETEND AND SPEND Watching the angst of the governor and Legislature as they talk about the plight of our schools remind me of the kid who killed his parents — and threw himself on the mercy of the courts because he was an orphan! Like they had nothing to do with creating this mess! The governor's and Legislature's failure to act on sensible reforms have created the crisis facing us today. In 1993, the Kalkaska public school system closed 45 days early for lack of funds and their inability to provide a high-quality education with resources available. The school superintendent and school board took the drastic action after the tax weary citizens rejected a millage needed to overcome a $1.5 million shortfall in a $10.3 million budget. This action spurred the then governor and Legislature into action to fix Michigan's school funding system with the passage of Proposal A in 1994. Fast forward to 2009 and the question today is similar: Who will flinch? The choices are to hold firm for sensible changes in health care, pensions, shared services and consolidations of intermediate and local school districts. Or, they could blink and raise taxes, which will be the equivalent of ‘fixing' General Motors' problems by getting a guarantee that they can just charge more for their cars — without addressing the fundamental structural problems growing in their system. If reforms were initiated when brought to light years ago, all or much of the crisis of today could have been avoided. Sadly, they were not. A PLAN OF ACTION Agree to raise taxes only as a bridge to reform/restructuring. The tax increase should sunset in 2 to 3 years, being phased out and replaced with redirected money saved through: # A health care reform plan, which pools insurance for public employees thereby saving significant resources to be redirected to the classroom. # Creating a process for closing or consolidating school districts and municipalities. # Changes in pension plans from defined benefits to defined contribution — for new hired school as well as local government employees — and other sensible reforms. # Creating a tier pay/benefit system for state, teachers and local government new hires. If the reforms are not in place — the cuts happen and the schools, education establishment, Legislature and governor have no one to blame but themselves. If you have a hole in your roof, you have to fix it or suffer the consequences. Michigan has been avoiding fixing the hole in school funding for years. Because of inaction the entire roof is set to collapse. Inaction has consequences. Tom Watkins is a former state superintendent of schools, 2001-2005 and is now and education and business consultant in the US and China. See his China Bridge article at: www.domemagazine.com He can be reached at:tdwatkins@aol. http://www.hometownlife.com/article/20091105/OPINION/911050361/1202/news12/COMMENTARY+by+TOM+WATKINS++Reform+of+state+government+at+all+levels+needed Read reactions to this story lenny12 wrote: Stop the administration from double dipping. They retire and then come back as cotracted employee's . Collecting salary from the district and the retirement benefits from the state. They say that the district is saving money but the state is paying. 11/6/2009 10:18:17 AM |
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| LPS Reformer | Nov 9 2009, 07:22 PM Post #140 |
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The schools exist to educate, not employ.
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Next year will be interesting.
Edited by LPS Reformer, Nov 9 2009, 07:22 PM.
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LPS Reform Blog++++LPS Salary List 12/07 LPS Salary List 6/09 Contact me at: LPSReformer@gmail.com | |
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