LANSING – Governor Rick Snyder said the state has made great progress in his first three months, pointing to the legislation he had signed, which includes some dramatically controversial bills, and saying the state was successfully undertaking the process of reinventing itself.
But at a press conference he held with the two legislative Republican leaders and Lt. Governor Brian Calley it was also clear differences exist on the signature item of Snyder’s administration: his tax proposal.
There are apparently enough significant differences on Snyder’s tax plan that Senate Majority Leader Randy Richardville (R-Monroe) indicated the normally even-tempered and upbeat Snyder came close to losing his temper in a meeting last week with legislative leaders.
And Democrats were quick to criticize Snyder’s program, charging that despite his call for shared sacrifice his proposals have focused on penalizing individuals and his budget proposals could hurt schools.
At the press conference, Snyder said work continued to be done, plugging away again at calling on the Legislature to complete work on the 2011-12 budget by May 31.
But he said Thursday marked a day of celebration because the state had made “great progress” in accomplishing the agenda he had set out.
In the first three months, he has signed 16 bills into law, including controversial measures to limit initial state unemployment claims beginning in 2012 to 20 weeks from the current 26, and a proposal that would allow greater powers to an emergency financial manager should one be appointed.
In her first three months in office, former Governor Jennifer Granholm did not sign one bill, but unlike Snyder, Granholm, a Democrat, had to contend with a Republican Legislature. Snyder and the Legislature are of the same party. And at the press conference they dressed alike as well in open shirts and sport coats. Only Lt. Governor Brian Calley was in a suit and tie.
In fact, House Speaker Jase Bolger (R-Marshall) credited Snyder and the Senate Republicans, “our partners,” for helping bring a new focus on building jobs in the state. To do that, Bolger said, specifically referring to the unemployment legislation, the Legislature recognized “to help job seekers, we had to help job providers.”
Snyder also said the focus had to be on “energizing our private sector” to help create jobs.
And Richardville said he has never been more excited about Michigan government than he was now.
But the unanimity of sentiment began to break down when the question came to whether the Legislature would go along with Snyder’s proposal to subject public and private pensions to the income tax. A proposal the Senate has considered would subject future pensioners to the income tax, but not current pensioners.
Snyder called the question speculative, saying a dialogue on the issue was continuing and that in the end the state “would have a great tax and budget plan.”
Bolger said where there were differences on proposals, “We can get through because of that focus on the results.” The conversations on the tax proposals are ongoing and “I have every confidence that we’ll deliver a strong product that will make Michigan a competitive place for a job.”
When Bolger was then asked specifically why he was not able to say if pensions should be taxed, Richardville chimed in, “We’re just not ready to talk about that.”
He said an agreement will come, but then acknowledged, “We actually have been disagreeing quite a bit.” Closed-door meetings between Snyder and lawmakers have revealed differences, and Richardville said he thought Snyder came close to “using bad words” in a meeting a week ago on the issue.
Bolger said it “would be premature” to offer an opinion on the pension tax issue because of his respect for the committee process that will work to refine the tax proposal. In the past, he charged, tax changes had been rushed through the Legislature, though he did not define what a rushed process might have been. The change to the income tax in 2007 took nearly nine months to complete after a variety of tax proposals were made.
“This Legislature is going to focus on those results,” he said, “but make sure we do it in a thoughtful way, in a deliberative way.”
Richardville also acknowledged that protests that have taken place opposing, among other things, the pension tax proposal, cause lawmakers to “prick up their ears” and pay attention more as they work through issues.
House Minority Leader Richard Hammel (D-Mount Morris Twp.) criticized Snyder, saying he had not shown a focus on bringing jobs to the state in his first months in office. In fact, Hammel said, Mr. Snyder has put a focus on policies that increase hardships on individuals while providing an “86 percent tax break on corporations.”
“I would say the concern we’re hearing from residents is very understandable,” Hammel said.
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