LANSING – With a focus on working on the state’s budget, especially by approving the anticipated executive order budget cuts, Senate Majority Leader Mike Bishop (R-Rochester) outlined his priorities for the lame duck session on Monday. And many of his priorities sounded similar to those listed by Governor Jennifer Granholm.
Like Granholm, Bishop also called on the Legislature to agree to some provisions to help relieve foreclosure problems in the state, a proposal to ensure the expansion of the Cobo Conference Center in Detroit and agreement to allow the privately-funded construction of a light rail system from downtown Detroit to the New Center area.
He also did not rule out action on legislation dealing with the individual health insurance market, though he said the House should pass the Senate’s versions of HB 5282 and HB 5283 . The chair of the conference committee on the two bills outlined a compromise package last week, but Bishop said he was not aware of what the House was doing with the measures.
On the list, but not given the same emphasis as before by Bishop, was a call to act on legislation to eliminate the 22 percent surcharge on the Michigan Business Tax.
While initially the Senate had hoped for a short lame duck session, Bishop said the chamber would meet during the first three weeks of December, and longer if needed. However, he also said he wanted the session to focus just on the critical priorities for the state and not get involved in purely political issues.
Bishop said he wants the chamber to adjourn its part of the 94th Legislature “before the mischief begins.” Outlining his priorities, Bishop said “these are big issues in a small amount of time.”
The most critical issue to resolve is the executive order cuts and balancing the state’s 2008-09 budget, Bishop said.
Granholm is expected to issue executive orders to trim the state’s budget within a few weeks. How much will be cut at that time is not yet known. An executive order must be approved by the legislative appropriations committees before it takes effect.
Bishop told reporters he did not expect the executive order to cover the entire amount the budget could be short, which some fiscal agency officials have said could range from more than $400 million to more than $1 billion.
But the administration and the Legislature has to get a “big chunk” out of the budget problem with this executive order, he said.
In addition, Bishop said no part of government should be off the table in terms of cuts. That includes public schools and the pupil foundation grants, he said.
Public schools derive their revenues from the same places as the rest of government, Bishop said.
He also said he hoped Granholm would negotiate with lawmakers before presenting a final draft of the proposed order to minimize controversy. He said he had heard indications that she was open to that.
Previously, Bishop had called for a focus on eliminating the surcharge on the MBT. He said Monday that was still important symbolically to help develop business in the state, but did not have it as part of his top priorities of the year-end session.
Granholm has said action on eliminating the surcharge needs to be tied to reforms in the Department of Corrections, which could offset the revenue losses. The Council of State Governments is expected to issue a report on proposed changes to the department in January.
Bishop said that the state “absolutely needs to make substantial reforms to our corrections system.”
But most of Granholm’s proposals have called for either sentencing guideline changes (which could take years for the state to realize savings, Bishop said), or releasing some prisoners (the governor has said only those considered non-violent and infirm would be considered for release), he said, and to realize substantial savings now the state has to look at wages paid.
In terms of the other issues he outlined:
Bishop said finding a way to expand Cobo is critical to both Detroit and the state’s economy. He was sharply critical of the plan sent to the Senate by the House, saying it had no detail in it. Detroit suburban leaders have been similarly critical of the proposal, saying the Cobo authority in it cedes too much authority to Detroit officials, and Bishop said he was “frankly very concerned outlying suburbs have their questions answered” on the proposal.
The Woodward light rail proposal is an exciting proposal that will require the state to do almost nothing to build. Eventually, local and state government will have to pay for the maintenance of the system, but Bishop said it is important to encourage the kind of private investment in the state. “It’s a great step in the right direction for Detroit,” Bishop said.
Bishop did not reject acting on a transportation funding proposal in the lame duck session, but said the proposals outlined were multi-faceted. The state now does not have a truly-dedicated funding source for its roads and as part of economic development that it critical, Bishop said. If a proposal is not developed during the lame duck session, then it has to be tackled early in 2009, he said.
He refused to say action on legislation dealing with smoke-free areas was dead. The Senate had passed legislation that barred smoking from all bars and restaurants, while the House exempted the Detroit casinos. In the long run, though, Bishop said legislation will probably be unneeded as businesses recognize that most customers want smoke-free environments, so they are providing them.
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