Legislative Updates - May 20, 2013

STATE’S FINANCIAL PICTURE ON THE UPSWING

The Consensus Revenue Estimating Conference (CREC) reports that Michigan’s financial picture is improving with $483 million ($397 million for General Fund, $86 million for School Aid Fund) more for FY 2013 than was projected at its conference in Januar

The outlook also appears good for FY 2014 and 2015 as well, although not quite as robust. CREC projects $219 million more in FY ’14 and $244 million more in FY ’15.

Part of the reason for the additional money in FY ’13 is that $265 million of the $483 million was, out of fear that with the federal “fiscal cliff,” investors took gains or income early to avoid paying more in capital gains taxes and federal income taxes that were going to rise this year. With the extra money in hand lawmakers have a plethora of ideas on how to spend it. Most prevalent appears to be for roads, education and the Rainy Day fund.

Senate Majority Leader Randy Richardville (R-Monroe) calls the surplus “one-time money” and projects $130 million would go to roads to meet the federal match. After that, he sees a spirited debate over putting the remainder into K-12 education, early childhood education, universities,or the rainy day fund.

Some Democrats though have different priorities. They would prefer restoring the income tax exemption on pension income, pre-natal programs, and programs for senior citizens.

SENATE PULLS PLUG ON MEDICAID EXPANSION IN DCH BUDGET

The Senate on Thursday passed the long-delayed Department of Community Health (DCH) budget without the controversial Medicaid expansion – apparently waiting to see what the House Republicans do on their Medicaid reform package (HB 4717) they introduced last week.

Under that legislation, Medicaid would be expanded to those at 133 percent of the poverty level, there would be a four-year cap on receiving medical coverage through the program for nondisabled adults, insured adults could have to contribute 5 percent of their annual income to pay for their health care costs, the state would be required to develop new incentives for healthy behavior and for enrollees who help DCH detect fraud in the system, and the federal government would be required to pay 100 percent of the expansion costs.

For the plan to work, the federal government would have to approve a massive waiver of which there is no guarantee.

If the federal government doesn’t issue a waiver for controversial reforms like the 48-month cap on benefits House Republicans put forth last week, Senate Majority Leader Randy Richardville (R-Monroe) said Medicaid expansion in Michigan is dead.

The DCH budget bill (SB 0198) cleared the Senate at $15.4 billion on a narrow 20-18 vote.

NO-FAULT REFORM PENDING IN THE FULL HOUSE

On a party-line vote, the House Insurance Committee moved to the House floor legislation (HB 4612) that would cap at $1 million the state’s current unlimited lifetime medical coverage for catastrophically injured car accident victims.

Under the committee approved bill, health benefits currently collected by the catastrophically injured would not be limited and a $50,000 limitation on retrofitting of a house or car was removed from the original bill.

The measure also clarifies that there would be no 16-hour cap on non-relative care provided to victims – either currently or in the future – and 24-hour care would be provide if needed; creates a fraud authority and would try to restrain attempts by medical providers to charge exorbitant rates for care for auto-related injuries.

Although the bill is out of House Insurance committee, its chair, Rep. Pete Lund (R-Shelby Twp.) conceded he expects an uphill climb. Senate Democrats have taken a caucus position to not support the bill and several Republicans are either opposed or yet undecided on how to vote.

Representative Lund, however, is cautiously optimistic that the measure will eventually make it through the House.

BRAKES PUT ON EXPANDED ROAD FUNDING PLAN

Don’t look for an expanded transportation funding package to make it into the lawmakers’ selfimposed June 1 deadline for completing the FY 2014 budget.

Senate Majority Leader Randy Richardville (R-Monroe) said there will not be a package raising the $1.2 billion Governor Rick Snyder wants or any alternative amount by that date. He says the solution has to be bipartisan and the deadline question can only be held after the next quadrant meeting.

And Democratic lawmakers said this week they have no intention of offering an expanded transportation funding proposal. House Minority Leader Tim Greimel (D-Auburn Hills) said they are waiting for a “serious plan” from the Governor.

FLANAGAN TAKING “SKUNK WORKS” TO FACEBOOK

Now that State Superintendent Mike Flanagan is in charge of leading Governor Snyder’s call for injecting more technology in the classroom, he is taking what was the secret nature of what was known as the “Skunk Works” project and placing it on Facebook and Twitter for what he calls transparency reasons.

Mr. Flanagan said the process will start with a survey, promoted with Facebook and Twitter pages, as well as a YouTube video with an explanation of the project.

The Michigan Board of Education will be updated at its June meeting. The original “Skunk Works” was ordered disbanded by Governor Rick Snyder who handed the project to Mr. Flanagan.

DEMS CALL FOR GUN CONTROL/MENTAL HEALTH REFORMS

Three House Democrats have introduced a package of five bills that call for universal background checks, assurance and expansion of true gun-free zones, support for mental health care parity and efforts to keep guns away from those convicted of domestic abuse.

Under the gun-free zone legislation libraries would be added along with schools, sports arenas, daycare centers, university classrooms and churches. Current law allows people licensed to carry concealed weapons in these locations.

NRC APPROVES WOLF HUNTING SEASON

The Natural Resources Commission (NRC) has approved regulations for limited wolf hunting in the state. The wolf season will go from November 15 to December 31 of this year in three locations in the Upper Peninsula. The NRC action came just a day after Governor Rick Snyder signed into law legislation (SB 0288) giving the (NRC) the responsibility to establish managed open season hunts for wild game and authority to regulate the taking of fish as well as place wolves on the endangered species list has been signed into law by Governor Rick Snyder.