February 28, 1997

Legislative & Political Week in Review

• President Clinton is coming to Lansing March 6 to address a joint session of the legislature on a subject of considerable concern to federal, state, and local leaders—education. A stop in Detroit also is anticipated.
• Tax cutting became much more of a bipartisan sport this week as Democrats on House committees reported out five measures to reduce the tax burden for certain lower- and middle-income citizens and the elderly. Republican committee members generally opposed the targeted cuts as haphazard or fiscally irresponsible. The bills allow seniors to defer property tax until they die or their property is sold (HB 4042); allow a $5,000 deduction for child care expenses (HB 4180), allow low wage earners to deduct 10 percent of their federal earned income tax credit from their state taxes (HB 4189); expand the homestead tax credit for seniors and the handicapped (HB 4124); and increase the college tuition tax credit from $250 per child per year to $500 (HB 4191).
• It will be 26 and out for veteran Sen. Bob Geake (R-Northville) when he ends his legislative career at the close of the present session. Geake was first elected in 1972 to the House and moved over to the Senate in 1977. Term-limited House members residing in Geake’s Senate district have expressed interest in filling his post.
• The newly created state Gaming Control Board is recommending that Detroit casinos pay a portion of the cost of regulating them— above and beyond the 18 percent casino tax. The board also expressed support for revising certain aspects of Proposal E that allow two business consortia seeking to own casinos preference for licenses.
• Higher prices and less reliable service may result from electric utility deregulation unless proper measures are taken now, say leaders of Protect Michigan, a coalition of business and labor organizations. The group has a series of radio ads on the air urging electricity consumers to discuss with their legislators the implications of imminent policy changes. Attorney General Frank Kelley has requested that the Michigan Public Service Commission conduct formal contested case hearings in the matter to ensure the broadest public scrutiny.
• Time ran out Tuesday on the attempt to rescind one of Governor Engler’s controversial executive orders to transfer certain administrative duties from the State Board of Education to the superintendent of public instruction. Proponents argued that HCR 5, a measure to overturn Executive Order 1996-12, was necessary to protect the legislature’s rulemaking ability and oversight function. Before taking up the resolution, the Senate session was quick-gaveled into adjournment. The legislature has 60 days from the time an executive order is issued to overturn it; Tuesday was day 60.
• Road repair update: Oakland County Executive Brooks Patterson called for a petition drive to put on the ballot a phased-in 6.5 cents per gallon gas-tax increase. Meanwhile, the governor and legislative quadrant leaders unveiled plans to jointly lobby for changes in the federal gas-tax formula in Washington next week. House Democrats pushed a measure out of committee (HB 4147) to funnel nearly $111 million into road infrastructure projects and away from the state agencies now receiving the money. The Secretary of State’s office stands to lose almost $90 million under the proposal.
• For those keeping a 1998 gubernatorial scorecard, add one Democrat and scratch two Republicans. Promising leadership on such tough issues as raising the gas tax to fix roads, clarifying charter school authority, and assuring fairness in utility deregulation, Rep. Jim Agee (D-Muskegon) filed the necessary candidacy papers this week. Meanwhile, Secretary of State Candice Miller told Free Press columnist Hugh McDiarmid that ’98 won’t find her in a race for governor—even if Engler doesn’t run. Sen. Bill Schuette also removed himself from consideration next year, announcing his intention to stand for reelection from the 35th district instead.