First SOS will be another pep talk filled with platitude and no details

Like his campaign and his inaugural speech, new Michigan Gov. Rick “Chief Executive Outsourcer” Snyder’s first State of the State address tonight will be void of any details.

Like the AP said, “Michigan teachers, state workers, business groups and others eager to hear what new Gov. Rick Snyder plans to do are waiting for his first State of the State address” will get a pep talk filled with more buzz words and platitudes like “shared sacrifice” and he will “reinvent Michigan,” but no details, as usual, on how he will do that.

The press has let him get away with it since the last Superbowl when he launched his campaign, but I think their patients may be getting a little thin and want some actual details and answers on how he plans to reinvent Michigan. We already have an idea what "shared sacrifice" means to Snyder: state workers sacrifice but Snyder and his upper management sacrifice nothing.

The Consensus Revenue Estimating Conference took place last Friday, and according to the nonpartisan Senate Fiscal Agency, “a slowly improving economy in the state and nationally will lead to increased revenue, but the loss of ARRA funding and one time revenue sources combined with revenue lost due to tax policy is expected to lead to a General Fund budget deficit of $1.8 billion.”

The only plan we have ever heard from Snyder on how to balance the budget is that he plans to make it up on backs of state workers alone, and a pair of Republican Senators have crystalized that plan.

Sens. John Pappageorge, R-Troy, and Mark Jansen, R-Gaines Twp., told subscription only Gongwer that “they have a plan that solves the state's $1.8 billion Fiscal Year (FY) 2012 budget deficit without raising a dime of taxes.” Their grand plan includes “saving more than $700 million from employee benefit cuts and $1 billion from a 5-percent public employee pay cut.” Never mind that it takes a Constitutional amendment for some parts of the plan, or that it violates the collective bargaining rights.

Now, here is Snyder’s sacrifice. We already knew that Snyder appointed Michael Finney as president and CEO of the Michigan Economic Development Corporation a few weeks ago. Finney will be paid $250,000 a year, and he will also receive deferred compensation equal to 18 percent of his salary in lieu of a retirement plan. The person who held the job under former Gov. Jennifer Granholm and was only paid $200,000 a year. After pressure from the media, Snyder finally released the salaries of his cabinet members, and of the 12 members of his cabinet he's appointed Snyder has given raises to five. The rest make what they were making under Granholm.

John Nixon, the new director for the Department of Technology, Management and Budget (DTMB) imported from Utah, will join Finney as the highest-paid officials in state government.

Just to make sure the middle class is not the only ones hurting and sacrificing, Republicans plan to go after the working poor too. The new Speaker of the House, Rep. James Bolger, R- Marshall, want to go after the Earned Income Tax Credit (EITC).

The EITC is an effective anti-poverty tool in the form of a refundable tax credit given to working families. People apply for it when they fill out their state income tax forms. The tax credit, in its third year of existence, will pump over $1.50 back into the economy for every $1 that is sent to working families.

So much for shared sacrifices; enjoy the show tonight.

Republicans and their allies continue to attack unions and the Democratic process

Why do Republicans hate the Democratic process and the working class so much?

Republicans can’t stop workers from legally joining a union by a majority vote, they can’t overturn it in court, so they are now trying the legislative route.

The rightwing, anti-union think tank the Mackinac Center and its newly formed Legal Foundation has been attacking the Child Care Providers Together Michigan union, a joint venture between United Auto Workers (UAW) and the American Federation of State, County and Municipal Employees (AFSCME). The Mackinac Center, and their allies in the conservative media and in the Senate GOP caucus, think it’s somehow illegal for a group of workers to vote to form a union.

The Mackinac Center filed a lawsuit claming that because not everybody voted, the election is somehow invalid. That’s like saying elections are invalid simply because there is not a 100 percent turnout. The Michigan Court of Appeals rejected ridiculous claim, so while the case is under appeal, they turned to the Legislature where the anti-union Republicans were very receptive.

Sen. Mark Jansen, R-Grand Rapids, introduced Senate Bills 1178 and 1179 on Feb. 25, and they were referred to the Senate Families and Human Services Committee he chairs. SB 1178 would prohibit taking compulsory union dues from caregiver subsidies, and SB 1179 would prohibit the Michigan Employment Relations Commission (MERC) from recognizing a bargaining unit consisting of individuals who are not public employees. Sen. Nancy Cassis, R-Novi, introduced SB 1173 at the same time that almost mirrors SB 1179. That bill was co-sponsored by Sen. Valde Garcia, R-Howell.

Howell radio station WHMI carried a story on SB 1173 today with the headline, “Garcia Backs Legislation To Change Forced Unionization.” That’s like me saying I was forced to recognize George Bush as president even though I didn’t vote for him. A proper election was held to unionize, and the majority vote to unionize.

His co-sponsorship of SB 1173 is a little surprising when you consider he also co-sponsored SB 731 that would create the Michigan Quality Community Care Council. The Mackinac Center falsely claims it will strengthen the union. Among the things the bi-partisan bill would do is to form the Michigan Quality Community Care Council, and the council would be responsible for working to preserve consumer selection and self-direction of providers.

The fact is the unionization of home-based childcare workers reflects the new realities of the workplace. It stems from policy decisions made in the 1990s requiring persons receiving welfare to work or get work training. That meant their children needed care which helped lead to the growth of home-based care. But until the union was established, those workers had no voice is being able to express their concerns about the system and operations.

Republicans are against any thing that gives workers a voice.

Senate Republicans rev up attack on workers

LANSING – Michigan Senate Republicans continued their anti-worker stance by approving Senate Resolution 16 on Thursday that asked the U.S. Congress to oppose the Employee Free Choice Act (EFCA).

The resolution was introduced by Sen. Mark Jansen, R-Gaines Twp., and co-sponsored by Senators Wayne Kuipers, R-Holland and John Pappageorge, R-Troy. The resolution was approved 20-16 along party lines.

Under current U.S. law, if more than 50 percent of employees certify their desire for representation, then a union can choose to form using card check procedures by signing a card and the employer would have to recognize the bargaining unit. However, currently the employer does not have to recognize the card check petition of the majority and can veto the majority and require a secret-ballot vote overseen by the National Labor Relations Board (NLRB), and it does every single time. Under the proposed EFCA, an employer could only challenge a card check petition if fraud or illegal coercion was alleged. Currently, once the workers indicate they want a union, the employer calls for an election, and then the intimidation, threats of closure, threats of firing and actual firing begin.

The rise of unions coincided with the rise of the middle class, and the assault on the middle class has coincided with the attack on unions. Sen. Ray Basham, D-Taylor, said the fall in union membership has contributed to the widening gap between the rich and poor. Basham was a past Employee Support Services Representative for the United Auto Workers (UAW) Local 245 and on the bargaining committee for the local.

"As organized labor becomes less and less and people lose health care and a living wage, then again, we get the very rich and the very poor," Basham said. "A lot of countries have a very rich and a very poor population like Mexico, but when you do not allow employees to organize and peacefully assemble and to have a collective voice in a workplace, you are doing a disservice not only to those employees, but also to the middle-income folks as a group in this country."

Republicans have continued to cling to the false talking point that EFCA "does away with the secret ballot." The fact that it's not true has not stopped them from parroting it at every opportunity, and this is something we have seen with all GOP talking points. It's also ironic that now Republicans now care about the sanctity of elections.

"What on earth is Congress thinking when they take away a person’s right to vote," said Sen. Alan Cropsey, R-DeWitt. "Elections by a secret ballot allow everybody to have a say in their shop."

The simple fact is that what the EFCA does is put the power of who calls for a secret ballot in the hands of the employee not management. The workers can call for a secret ballot anytime, but the employer cannot do so to use the extra time to intimidate the workers.

Senate Minority Mike Prusi, D- Ishpeming, said he has seen plenty of intimidation on the part of employers. Prusi is a former iron ore miner who has spent plenty of time at the bargaining table. He was elected to three terms as President of Local Union 4950 of the United Steelworkers of America.

"On the question on whether or not there is coercion involved, I have seen much more coercion on the part of the employer than I ever have on the part of an organizing union," Prusi said. "The employers who spend, in some cases, hundreds of thousands, millions of dollars to keep the union from their workplace would be much better served if they were to work with their employees in a collective bargaining arrangement for the betterment of the employees and the betterment of the workplace."

Unions are the most democratic organization in the workplace, and workers elect their leaders and vote for the contract. It is also a bipartisan organization, a fact not lost on Sen. John Gleason, D-Flushing. Gleason was a skilled trade millwright for 30 years and is a member of Millwright's Local 1102 and UAW Local 598.

"A Republican President said it would be foolish; President Eisenhower said, “It would be foolish to not understand what unions have offered our country," Gleason said. "I agree with that Republican President that the unions have offered us a great deal of fairness."

New DHS director faces some uncomfortable questions but passes confirmation hearing

LANSING – Ismael Ahmed, Gov. Jennifer Granholm’s nominee to be the new head of the massive and troubled Department of Human Services (DHS), faced some tough questions at his confirmation hearing Tuesday before the Senate’s Families and Human Services Committee, but some 30 supporters from state Senators and Representative to colleagues and friends spoke in support of him.

Following an almost four-hour hearing the Committee unanimously recommended the Senate Government Operations and Reform Committee appoint Ahmed as the head of the DHS.

Debbie Schlussel - a conservative political commentator, radio talk show host, columnist and attorney who has public accused Ahmed of wrongdoing in the past – made an appearance and accused him of Medicaid fraud, supporting terrorism and supporting anti-American and anti-Israel activities. She had to be gaveled off after going well beyond the 5 minutes for public testimony allowed by the chair of the Committee, Sen. Mark Jansen, R-Grand Rapids.

“We have heard a lot about bridge-building,” Schlussel said. “You know you have heard a lot of people who support him come up here who say they are Jewish, but they don’t represent any official Jewish organization.”

Ahmed is the executive director and founder of the Arab Community Center for Economic and Social Services (ACCESS), a private nonprofit agency that grew from a storefront operation that helped just about 125 people in 1971 to an agency with a $15-million budget that helps some 90,000 people a year. But following the Sept. 11 terrorist attacks Arab-Americans were under a cloud of suspicion. Jansen, the chair of the committee, asked Ahmed about a 2002 raid on ACCESS authorized by then Attorney General Jennifer Granholm in an investigation of Medicare fraud.

“We opened all the files they requested,” Ahmed said. “We cooperated fully. Many people have been prosecuted because of this, but no one connected with ACCESS was involved.”

Ahmed said the investigation took a close look at one supervisor among the 200 employees at ACCESS, but the supervisor was relieved of his duties until they were cleared by the investigation.

In 2002 when Ahmed ran as the Democratic nominee to the Board of Regents for the University of Michigan he was accused by Schlussel as being friendly to Arab terrorist groups and committing Medicaid fraud.

“I know there is a blogger out there who would like to tie all of that good work to terrorist groups and Medicaid fraud, but it’s simply not true,” Ahmed said. “As an American born in this country and a veteran I am offended but not surprised because false accusations will always find an audience.”

But person after person came forward to tell the committee that Ahmed was a man of character, a bridge-builder of all races and a man of integrity. Jansen also said he had more than 30 letters and emails in support of Ahmed.

“He is both compassionate and a visionary leader who moves organizations forward,” said Sue Hamilton, the director of Health and Human Services for Wayne Country.

When asked by the committee for examples of major changes at ACCESS he has overseen in the past, Ahmed said ACCESS went through some major changes following the Sept. 11 terrorist attacks. He said ACCESS no longer supports any overseas charities or activities except the Red Cross and through the U.S. State Department.

“After Sept. 11 the world changed for Arab-Americans, as it did for all Americans,” he said. “After that we were under much more federal scrutiny.”

The DHS has been under fire for its handling of the Ricky Holland case, the 7-year-old Williamston boy who was murdered by his adoptive parents in July 2005 after the parental rights of his biological parents were terminated by DHS. That was a question the committee asked him both in person and in writing. Ahmed has been acting director since he was appointed last month, pending the confirmation hearing.

“I have only been here for three weeks, but I have asked that every death or near death instantly be brought to my attention and an investigation begun,” he said.

Senator predicts budget agreement in sight

Sen. Mark Jansen, R-Grand Rapids, told a room full of Michigan nonprofit executives Wednesday that he expects the Legislature to reach a budget deal and avoid a government shutdown before the deadline on Monday.

“I do believe today and tomorrow are going to be historic days for us,” Jansen said at the annul Nonprofit Day sponsored by the Michigan Nonprofit Association (MNA) at the Lansing Center. “I’m going to predict in the next 24 to 48 hours, like the UAW, we are going to have a tentative agreement.”

The House and Senate leadership had originally been scheduled to be part of a panel discussion on the budget at the annual event, but they were locked in fevered negotiations as the budget deadline draws nearer. Jansen and fellow freshman lawmaker Rep. Kim Meltzer, R-Clinton Township, served as pinch-hitters for the leadership

In the case of a budget shutdown much of the slack for human service needs and emergency relief help will fall to some of the more than 1,000 non-profits that the MNA represents. The theme of the annual nonprofit day is “Looking through the crystal ball: Where do we go from here,” but no on at the conference expected the budget to still be up in the air when the date for the 8th annual event was chosen last year.

“As partners with government, government and non-profits provide some essential services to our citizens,” said Karla Hall, an MNA board member. “The financial health of our state is of great importance to us.”

Although both House and Senate Republicans have, with the exception of Rep. Chris Ward, refused to vote for any tax increases, they have admitted publicly it will take a combination of cuts, reforms and new revenue to make up the $1.8 billon budget deficit.

“It we don’t get it done, shame on us,” Jansen said. “It won’t be a perfect solution, and everyone is probably going to be mad.
“If both sides are mad then I probably did something right,” he said.

Some Republicans have welcomed a government shutdown, and that prospect drew cheers at the Mackinac Republican Leadership Conference held last weekend. However, Meltzer is not one of those Republicans welcoming a shutdown. As the owner of a small tool and die shop, she said a shutdown would have the same effect on many Michigan residents as the short labor strike by the UAW had on her shop.

“In my opinion, the worst thing we can do is shut down the government,” she said. “I am a Republican and I have heard some Republicans say shut it down we don’t need government, but government provides some needed services.”

She favors the 30-day continuation or temporary budget passed last weekend by the Senate but frowned upon by Gov. Jennifer Granholm unless there is an agreement in principal in place.

“I think a continuation budget is the best way to go, even if I wasn’t an advocate for a continuation budget at first,” Meltzer said. “We simply owe it to the people not to shut government down.”

Following the legislators, a panel featuring long-time Lansing lobbyists weighed in on the budget, and they have been around Lansing and the Capitol much longer than lawmakers in the era of term limits. Although they were less enthusiastic than the lawmakers about getting a budget in place in time, they believe the budget will get done, and they expect to see an increase in the income tax rate from 3.9 percent to 4.5 percent. But they think it will take a continuation budget just to get a short-term budget in place.

Jeff Williams, a senior vice-president at Public Sector Consultants, said any government reforms will take anywhere from 3-8 years to have a positive effect on government spending, including going to a retirement plan that utilizes a defined contribution plan for state employees.

“If you think Michigan is going to fix the next eight years in 48 hours you are mistaken,” he said. “Show us a budget for 12 months.”

Tom Hoisington, the president of Public Affairs Associates, said the rancor and posturing between the Republican-controlled Senate and Democratic-controlled House that we are seeing in the media is not what’s going on behind closed doors. However, he said the plan of cutting taxes 30 times since 1993 to spur economic development and lure companies into investing here has not helped the economy or the budget.

“This is part of a failed experiment that began 10 years ago,” he said. “It was if you cut taxes they will come; they have not.”