April 11, 1997

Legislative & Political Week in Review

• Key state officials, Governor Engler, Treasurer Doug Roberts, and Budget Director Mark Murray pitched three major bond rating houses in New York City on the impressive economic strides made by the state in the last few years. Their goal: an upgrade of Michigan’s bond rating, from third-highest to the highest. Rating criteria have been developed by the treasurer to demonstrate how Michigan compares favorably to other top-rated states. Among the concerns bond houses still have about Michigan’s overall financial picture is the potential fiscal fallout from the Durant case, which the state supreme court heard arguments on Thursday. The outcome of the case will determine the extent to which the state is liable for the costs of unfunded mandates directed at school districts—billions of dollars are at stake.
• Jeff McAlvey, Governor Engler’s capable legislative director for the past six years officially announced his long-rumored resignation effective May 2. Three days later, the shingle of Lansing’s newest lobbying firm, McAlvey and Associates, officially will be hung up and its owner ready for business. Engler has tapped Louise Alderson to replace McAlvey. Alderson has served with McAlvey for the past seven months as associate director of legislative affairs. Prior to that she was the Michigan Department of Transportation’s federal legislative liaison and toiled for the legal staffs of both chambers of the Michigan Legislature.
• The road games continued this week as House Minority Leader Ken Sikkema (R-Grandville) chided his House counterpart, Speaker Curtis Hertel (D-Detroit), for failing to produce a pothole-patching proposal. He noted that the governor and the Senate already have plans on the table; "Lead, follow, or get out of the way," Sikkema said. Hertel, in turn, castigated Sikkema for playing politics and "grandstanding" on the issue, noting that House Republicans have not offered any concrete proposals to date. House Democrats currently do have a bill (HB 4147) that will move $110 million in fuel-tax revenue from such state departments as the Secretary of State back to the MDOT for road repair, but by all estimates significantly more will be needed to address the rim-bending problems. On Wednesday the governor addressed more than 700 municipal officials, reiterating his preferred plan of attack: Eliminate bureaucratic inefficiencies and an outdated fuel spillage allowance, get a fair funding shake from Washington, and pass tort reform. Engler left open the slim possibility of raising fuel taxes as a last resort. Meanwhile, Engler’s former MDOT chief, Pat Nowak, called on policymakers to find additional dollars for road repair, citing the problems and costs associated with further delay.
• The House K–12/Department of Education appropriations subcommittee made changes to the K–12 school budget bill, HB 4130, but did not report it to the full Appropriations Committee. A total of $61.8 million was added over and above the governor’s recommendation in his FY 1997–98 budget proposal. House Democrats added money to the basic foundation allowance—$159 more per pupil than the current allowance. They also increased funding for at-risk students, adult education programs, and a reading guarantee initiative for unaccredited elementary schools.
• One of the Michigan Supreme Court’s most prominent and well-respected jurists, Dorothy Comstock Riley, will resign from the bench on September 1, for health reasons.
• Former Berrien Springs resident, Muhammad Ali, and his wife, Yolanda Williams, are expected to testify before the Senate Families, Mental Health, and Human Service Committee on May 1. The ex–world boxing champ will address children’s issues and the recent report of the Office of Children’s Ombudsman.