e-Newsletter, August 21, 2009

BUDGET UPDATE

Since a great deal of media coverage and many organizations are communicating with members and our citizens, it is a good time to briefly explain the process and difficult financial challenges we face.

In Michigan, the new budget year begins each October 1. Budget negotiations are rarely easy, and they are particularly difficult this year as Michigan faces its worst economic situation since the 1930s. Housing starts and consumer sentiment are at or near historic lows and revenues coming in to the state from both individuals and businesses have been dropping. In July alone, General Fund revenues were down $50 million and School Aid revenues were down $100 million from May projections. Consequently, a recent memo from the Senate Fiscal Agency estimates that for the next fiscal year, 2010, Michigan could face a budget shortfall of more than $2.7 billion. Because Michigan’s Constitution mandates a balanced budget every year, legislators have a responsibility to make the hard decisions that are ultimately for the good of the state.

The budget imbalance could be eliminated by using a combination of reductions to the Governor’s recommended budget levels, revenue enhancements and the use of federal stimulus funds. The state has nearly $2 billion in federal stimulus funds that can be used to partially offset the revenue shortfall for fiscal year 2010 and for the start of the following fiscal year. However, many of my colleagues and I in the Legislature have to carefully balance the use of these one-time funds to support ongoing budgetary needs. Simply postponing tough budget decisions into the future will only compound the severity of decisions in future years.

Earlier this summer, both the House of Representatives and the Senate passed different versions of the budget bills for the 2010 fiscal year, with the exception of the budget for the Michigan State Police, on which the House has not yet voted. When the House and Senate pass different versions of budget bills, conference committees are established.

These committees have the responsibility of producing a final version of the bills that reconcile the differences between each chamber’s versions. The committees are comprised of six members, three each from the House and Senate, with two of the three being from the majority party in each chamber and one from the minority party in each chamber. Typically, these will be the chair, vice-chair and minority vice-chair from each budget subcommittee. At this time, not all the budgets have had conference committee members named.

The next stage of the process is for legislative leaders to meet with representatives of the Governor’s budget office to produce a “target agreement.” The target agreement outlines specific spending limits for each budget. The conference committees will then meet and develop conference reports based on those spending limits, which will be signed by each of the conference committee members. The conference reports are then brought before the full House and Senate for an up-or-down vote; no amendments may be offered once the conference reports are signed. The budgets must be voted upon and signed by the Governor by September 30.

 

BATTERY PRODUCTION INCENTIVES BRINGS JOBS TO LIVONIA

Recently, Vice President Joe Biden announced an investment of $860 million in Michigan as part of an ongoing effort to position Michigan at the forefront of new automotive technologies. Among the projects funded, $249 million will help A123Systems Inc. launch new battery production related facilities in Livonia, Brownstown and Romulus.

 

BATTERY PRODUCTION INCENTIVES BRINGS JOBS TO LIVONIA

On August 6th, I joined Governor Jennifer Granholm, Wayne County Executive Bob Ficano and Mayor Jack Kirksey to announce A123 System’s decision to locate their future headquarters in Livonia and production facilities in Wayne County. This announcement followed Vice President Joe Biden’s visit to Detroit to announce a $1.3 billion investment in Michigan as part of an ongoing effort to position Michigan at the forefront of new automotive technologies. A123Systems will receive $249 million to launch their facilities in Michigan and the company plans to invest more than $600 million in the project.

This announcement was the latest step which began with a critical vote by me and members of the Michigan Senate in 2008 to pass House Bill 6611, which created incentives for investment in the development and manufacturing of lithium-ion and other high-tech batteries used to power hybrid and electric cars.

A123Systems is one of the state's six Centers of Energy Excellence and has entered into a development and manufacturing agreement with Chrysler LLC to provide battery systems for the company's ENVI product line. To learn more about A123Systems Inc., visit their website: http://www.a123systems.com.

To read more, please visit my website: http://www.senate.mi.gov/anderson/pr.php?id=1396.

This investment represents exactly how federal, state, and local officials can come together to support businesses and take steps to diversify and reenergize Michigan’s economy. The fact that A123Systems has chosen to locate this important facility in Livonia is a testament to the quality of the workforce present here and the commitment of local and state leaders to help put Michigan back to work.

 

SHOULD UTILITY PROVIDERS BE REQUIRED TO VERIFY IF A CONSUMER IS A SENIOR CITIZEN PRIOR TO SHUTTING OFF SERVICE TO A HOME?

I invite you to visit my website and participate in my current survey question on whether you support this proposal. I welcome you to click on the link below and share your thoughts on my current survey.

http://www.senate.mi.gov/anderson

It is extremely important for me to hear what you think about issues before the Michigan Legislature. I regularly post a new survey question on my website to receive your input on some of the issues facing our state. Most recently, I asked readers whether they supported a law to prohibit police departments from using ticket quotas for traffic violations. Voters responded with 84% in favor of the proposal, 14% opposed, and 2% undecided.

 

LEGISLATION INTRODUCED TO PROHIBIT TRAFFIC TICKET QUOTAS

I recently introduced Senate Bill 741, which would prohibit ticket quotas by law enforcement agencies in Michigan. After it was brought to my attention that current law permits this practice and it is becoming more widespread, I decided to introduce legislation. My belief is that discretion of the police officer should be the determining factor and the circumstances surrounding the stop rather than an imposed quota to raise revenue. As with all legislation, this bill will be referred to committee for consideration.

 

GOVERNOR GRANHOLM SIGNS HIGH-SPEED RAIL AGREEMENT

Governor Jennifer Granholm recently signed a memorandum of understanding (MOU) that establishes a partnership among eight states to create a regional high-speed rail. The Midwest Corridor would connect cities throughout the region with frequent, reliable high-speed and conventional intercity rail service. The initiative, which includes a Michigan Detroit-Pontiac-Chicago line, is modeled after the larger vision of President Barack Obama and U.S. Transportation Secretary Ray LaHood to create a nationwide rail network.

The MOU, signed at the Midwest High Speed Rail Summit in Chicago, establishes a multi-state steering group to provide a single voice in support of the region’s collective high-speed rail priorities. Through coordination, the region hopes to capture part of the $8 billion that President Obama has made available through the American Recovery and Reinvestment Act for high-speed passenger rail, the largest investment that the federal government has made in over a decade.

Of particular interest to readers, MDOT and AMTRAK expect to begin passenger service between Ann Arbor and Detroit in fall of 2010. More information will be forthcoming, but plans are for a stop in the vicinity of Merriman Road and Michigan Avenue.

According to the American Association of Railroads, every dollar spent on investment in our nation’s railroads – tracks, equipment, locomotives, bridges – yields $3 in economic output. Additionally, each $1 billion of investment creates 20,000 jobs.

 

LIVONIA LAUNCHES NEW WEB-BASED MAPPING SERVICE

The City of Livonia has launched a new web-based interactive map service. This new service provides access to the City of Livonia’s GIS data on your desktop using a web browser. It features an easy-to-use “point and click” graphical user interface and includes aerial photography, parcel information, address lookup, future land use and zoning.

Click this link to check it out: http://www.ci.livonia.mi.us/Departments/IS/GISInteractiveMap/tabid/1422/Default.aspx/.

 

KEEP UP TO DATE ON REDFORD CHARTER TOWNSHIP ACTIVITIES

Redford Charter Township has began to use online outreach to share information about their dynamic community and keep residents up to date on current events. You can join their group on Facebook to keep up to date with township news and activities. Check out their page at: http://www.facebook.com/group.php?gid=54878744415.

 

LIVONIA PRESENTS FREE OUTDOOR CONCERTS

The Livonia Arts Commission and the Livonia Parks and Recreation Department will be hosting “Music From the Heart” free outdoor concerts throughout the month of August. All concerts are held on Thursdays from 7:00 p.m. – 8:30 p.m. at Civic Center Park located at Five Mile and Farmington Roads.

For more information, please call community resources at (734) 466-2536.

 

FURLOUGH DAYS CONTINUED

Most Michigan state government offices will be closed several days throughout the summer to accommodate the temporary, unpaid furlough of state employees. The closures will apply to all general offices and services in state government. State offices will be closed on the following days:

- Friday, August 21

- Friday, September 4

Some state services, including those vital to public health and safety, are not impacted. Services that will be maintained without interruption are Michigan State Police road patrols, correctional facilities, state psychiatric hospitals, veterans' homes and youth facilities, emergency human services programs, and the Unemployment Insurance Agency.

 

OFIR RELEASES TIPS ON AUTO INSURANCE PREPARATION FOR SUMMER ROAD TRIPS

The Office of Financial and Insurance Regulation (OFIR) recently provided auto insurance tips to consumers before they leave for their summer road trip.

OFIR’s tips for consumers planning summer travel:

Before Leaving on Vacation

Make sure you have your insurance identification card in the car.
Double-check that phone numbers for your insurance company and agent are listed on the identification card. If not, make note of these numbers to keep with your ID card.
If You’re in an Accident

Check for any injuries and administer first aid, if necessary.
Contact the proper authorities and inform them of any injuries. Regardless of the circumstances, report the accident to the police.
Record the name, address and phone number of the other driver. Always write down the make, model and license plate number of all vehicles involved.
Collect the names, addresses and phone numbers of all passengers and witnesses.
Take photos of the accident scene, if possible.
Do not admit fault.
Ask the investigating officer how to obtain a copy of the police report.
Notify your insurance agent or company immediately.
Rental Cars

If your car was damaged as result of another driver’s negligence, the other driver’s insurance company should pay your rental car costs for a reasonable length of repair time. If your car is totaled, many companies will pay for your rental as a courtesy, but they are not required to do so.

If you are filing a claim with your own insurance company, the cost of a rental car will only be covered if you paid a premium to include rental reimbursement coverage in your policy. Most polices have a dollar limit for rental payments, so check your policy if you have questions.

Ramifications of Filing a Claim

An accident filed with your insurance company might cause your rates to rise. Premium increases are more likely when the accident is your fault; however, an insurance company might also raise your premiums if you have more than one not-at-fault accident within a policy period.

If you have a dispute with your insurer about the amount or terms of the claim settlement, contact OFIR toll-free 877-999-6442 or www.michigan.gov/ofir.

 

MSHDA ANNOUNCES FOUR NEW PROGRAMS FOR FIRST TIME HOMEBUYERS

The Michigan State Housing and Development Authority announced the restoration of a federal tax credit program along with new programs that will give Michigan residents an unprecedented opportunity to purchase affordable homes through the Michigan State Housing Development Authority (MSHDA). The funding is provided by the federal Housing and Economic Recovery Act of 2008 (HERA).

The first program offers new enhancements to MSHDA’s existing Down Payment Assistance Program (DPA). Income limits have been increased to parallel single-family income limits, improving a potential homebuyer’s ability to qualify for DPA loans. Homebuyers may also take advantage of the first-time homebuyer $8,000 federal tax credit provided for under the American Recovery and Reinvestment Act of 2009. The second program is the federal Michigan Mortgage Credit Certificate (MCC) program that has been resurrected following a three-year hiatus and allows a tax credit of 20 percent of the interest a borrower pays during the term of a home mortgage.

Two other programs have also been created under the HERA that has allocated $10 million dollars through the federal Neighborhood Stabilization Program to assist new buyers purchasing foreclosed or abandoned homes. This effort will assist communities across the state with elimination of blight and rejuvenation of neighborhoods.

Full details of the varying programs are accessible at the MSHDA website: www.michigan.gov/mshda. Once at the site click on “Homeownership” on the left hand side of the home page. All eligibility requirements and program details are readily available.

 

MICHIGAN EXPANDS AUTOMATED TELEPHONE HOURS TO ACCEPT UNEMPLOYMENT CLAIMS

Jobless workers who are applying for unemployment benefits can now file their claims 24 hours a day Monday through Saturday by using an automated telephone system at the state's Unemployment Insurance Agency (UIA). The automated telephone system is now available from 7:00 a.m. Monday through 7:00 p.m. Saturday except the first Saturday of the month, the same hours as their online application system. Additionally, this recent enhancement allows workers to change their benefit payment option from debit card to direct deposit or vice versa at their convenience.

Callers can reach the automated system by dialing the UIA's toll-free telephone number 1-866-500-0017. The automated phone system does not have any UIA representatives available to help callers either before or after regular business hours. Representatives are only available during normal business hours - weekdays from 8:00 a.m. until 6:00 p.m.

 

COFFEE HOURS IN LIVONIA AND GARDEN CITY ANNOUNCED FOR MONDAY AUGUST 24, 2009

On Monday, August 24th, I will be hosting coffee hours in Livonia and Garden City, and you’re invited to attend. I host 40 coffee hours per year in an effort to make communication more convenient for our communities’ residents.

Monday August 24th

9:00 a.m. to 10:00 a.m.
Livonia Civic Park Senior Center
15218 Farmington Road
Livonia

10:30 a.m. to 11:30 a.m.
Maplewood Community Center
31735 Maplewood
Garden City