Governor Granholm tried to make a big deal about releasing her tax returns….who cares! We know what her state salary is….if she is interested in disclosure why won’t she release who has given her Partnership for Progress $25,000 for the pleasure of having private meetings with her and other policy makers? What, where and how is she spending almost $1,000,000 a year from lobbyist, corporate execs and other special interests??? You want to talk about conflict of interests!!!
Following up on the recent EPIC-MRA poll claiming that DeVos and Granholm are in a statistical dead heat….to borrow a line from Paul Harvey, here’s the rest of the story.
To the average person, a statistical dead heat is exciting. But if you look into the poll you quickly realize that of the 600 likely voters sampled, Democrat pollster Ed Sarpolus under-sampled minorities saying only 6 percent of them will turnout in November. That under-sample alone will put the race in a dead heat….under-sampling Democrats.
The other interesting tidbit is what Sarpolus has been heard saying around town. Apparently Ed’s been sarcastically telling groups that DeVos’ numbers will start to slide when people “see who Dick DeVos really is.” I’m sure he can’t wait for that to happen.
We all know what Ed is referring too – the mud-slinging from the Governor’s mud-machine. When the mud-machine kicks into full gear - throwing their lies and character attacks against Dick DeVos, his numbers will decrease.
We all know it’s going to happen. So here’s my prediction: I’m predicting that Ed’s prediction will be right.
But know this. Despite the mud-slinging that is bound to come, Dick DeVos is running for Governor for all of the right reasons. He is a honest, decent man who cares a great deal about this state and wants to put it back on track. Dick DeVos is running because he can lead us to change.
The bottom line, this is going to be a close race, one or the other candidate being ahead at any given point in time. Don’t get too caught up in the polls…we need to focus on the fundamentals…voter id and GOTV.
http://migop.blogs.com/blog/2006/04/detroit_news_th.html
Listen to our weekly debate/discussion between Democrat State Chairman Mark Brewer and myself every Thursday morning, between 9:15am - 10:00am, as we discuss the issues of the day.
The show is NOT recorded, but you can listen to it live at the stations listed below, or live on the internet at their web site.
"The Big Show with Dave Scott" on the Michigan Talk Network:
WJIM 1240 Lansing
WTRX 1330 Flint/Saginaw
WMMI 830 Mt Pleasant
WKMI 1360 Kalamazoo
WSCG 1380 Greenville
WBCH 1220 Hastings
WODJ 1490 Muskegon
WWKK 750 Petoskey
WJML 1110 Petoskey
WDJM 1320 Marquette
WIAN 1240 Ishpeming
And live on the Internet on the home page of www.mlive.com :
http://www.mlive.com/talkradio/audio/index.ssf?/talkradio/audio/live.html
If you need to download a "free" version of "real" software to listen on-line goto:
Saul Anuzis
STATE STORIES
http://www.lsj.com/apps/pbcs.dll/article?AID=/20060413/NEWS03/604130331/1004/news03
Published April 13, 2006
[ From the Lansing State Journal ]
Delphi says it must trim salaried staff
Parts supplier looking to cut 8,500 positions
By Jason Roberson
Special to the State Journal
TROY - Delphi Corp. says it needs to eliminate 8,500 salaried positions as part of a restructuring plan to make the bankrupt auto partsmaker profitable.
http://abclocal.go.com/wjrt/story?section=local&id=4079650
Delphi to start rolling out buyout packages
Buena Vista workers mailed referral forms
BUENA VISTA TOWNSHIP (WJRT) - (04/12/06)--Union leaders say Delphi should start rolling out early buyout packages for its workers this week.
Ford extends buyouts to workers at more plants
4/12/2006, 5:37 a.m. ET
The Associated Press
DEARBORN, Mich. (AP) — Ford Motor Co. is extending buyout offers to hourly workers at U.S. plants scheduled to remain open under its ongoing restructuring.
http://www.mackinac.org/article.aspx?ID=7678
Posted: Apr. 13, 2006
Federal Mogul: More Evidence that “Targeted Incentives” Don't Work
What will make legislators finally accept that the targeted tax incentive binge they’ve been on won’t fix Michigan’s broken economy? What will it take before they realize that only such things as broad-based tax cuts and regulatory reform will do the job?
http://www.mlive.com/news/aanews/index.ssf?/base/news-17/1144852879107700.xml&coll=2
64 teaching jobs part of $11.96 million in cuts
Layoffs may be needed, school officials advise board
Wednesday, April 12, 2006
BY DAVID JESSE
News Staff Reporters
The Ann Arbor school district needs to reduce its staff by 104 positions in order to balance its budget, administrators told the school board Tuesday night. That includes cutting 64 teacher positions over the course of two years.
http://www.mlive.com/columns/aanews/index.ssf?/base/news-0/1144852967107700.xml&coll=2
Flunking the test on college exams
Botched scoring contributes to doubts about reliance on ACT, SAT to tag best students
Wednesday, April 12, 2006
Last year, 1.5 million college-bound students took the Educational Testing Service SAT exam, while even more - 2.1 million - took the ACT test. Both exams are used by colleges and universities to determine who makes the cut for the annual freshman class.
http://www.mlive.com/columns/aanews/index.ssf?/base/news-0/1144852901107700.xml&coll=2
Politics mustn't play a role in grant selection
Jobs Fund has chance to boost economy
Wednesday, April 12, 2006
Local entrepreneurs and researchers are aggressively chasing dollars from a state initiative aimed at job creation.
Historically, this area has been very successful in tapping such funds. The hard part is turning government dollars into long-term gains for the state and local economy - and in making sure politics doesn't hijack the process.
http://www.wzzm13.com/news/news_article.aspx?storyid=52762
Governor, Republicans bicker over Single Business Tax future
Matt Campbell
Lansing - Governor Jennifer Granholm says she will go along with a Republican plan to speed up the end of the single business tax.
http://www.mlive.com/news/muchronicle/index.ssf?/base/news-0/114485850738640.xml&coll=8
Tax policy debate front and center in governor race
Wednesday, April 12, 2006
Voters should welcome the forthcoming stretch run of the Michigan governor's race this fall, which will be not only a referendum on the political parties, but on state tax policy. It certainly appears as if both candidates are itching to do battle on this momentous issue.
http://www.lsj.com/apps/pbcs.dll/article?AID=/20060413/OPINION01/604130333/1086/opinion
Published April 13, 2006
[ From the Lansing State Journal ]
No idea: DeVos' 'let's-not-talk-specifics' on SBT repeal is unfair to voters
Michigan is edging closer to a November vote on repealing the state's Single Business Tax.
Unfortunately, the Republican challenger for governor is not any closer to disclosing what he would do if the tax were repealed.
http://www.wzzm13.com/news/news_article.aspx?storyid=52772
Governor makes tax returns public
LANSING, Mich. (AP) - Governor Granholm and her husband earned about 178-thousand dollars last year in gross income and paid 35-thousand dollars in state and federal taxes.
http://www.fortwayne.com/mld/newssentinel/14329980.htm
Posted on Thu, Apr. 13, 2006
Governor releases 2005 tax returns
KATHY BARKS HOFFMAN
Associated Press
LANSING, Mich. - Gov. Jennifer Granholm and her husband earned about $178,000 last year in gross income and paid about $35,000 in state and federal taxes, according to 2005 tax returns released by the governor's office.
http://www.mlive.com/news/kzgazette/index.ssf?/base/columns-2/1144855414221370.xml&coll=7
`Downtrodden industrial city'? Not Kalamazoo
Wednesday, April 12, 2006
To see Kalamazoo described in some national and regional newspapers, you'd think this town is joining Flint or Pontiac in a race to the bottom.
http://www.lsj.com/apps/pbcs.dll/article?AID=/20060413/OPINION01/604130334/1086/opinion
Published April 13, 2006
[ From the Lansing State Journal ]
Prop 2: Courts can ID mistake on benefits; only voters can correct it
A Lansing State Journal editorial
The state Court of Appeals won't have the last word on what exactly state voters did in passing the anti-gay-marriage Proposal 2 in 2004.
http://www.mlive.com/news/grpress/index.ssf?/base/news-28/1144856248265110.xml&coll=6
Same-sex benefits argued in appeal
Wednesday, April 12, 2006
By Sharon Emery
Press Bureau
LANSING -- Everyone agrees that Michigan voters definitely wanted to ban same-sex marriage when they decided in 2004 to restrict marriage to relationships involving one man and one woman.
http://www.freep.com/apps/pbcs.dll/article?AID=/20060413/NEWS06/604130487/1008/NEWS
Wage law could give overtime to thousands
Mechanics, nannies, truckers would be exempt no more
April 13, 2006
Michigan's new higher minimum wage law could mean more money for tens of thousands of workers -- many of whom already are well paid -- because they'll be eligible for overtime pay for the first time.
http://www.mlive.com/news/bctimes/index.ssf?/base/news-1/1144855000203630.xml&coll=4
Money is what
Wednesday, April 12, 2006
The Michigan Legislature is all but begging Canada and other states to ship more trash to Michigan.
http://www.freep.com/apps/pbcs.dll/article?AID=/20060413/NEWS04/604130492/1006/NEWS
Macomb Co. deal to limit Canadian trash flow stalls
Landfill expansion at center of debate
April 13, 2006
A deal to stem the flow of Canadian trash coming into Macomb County is headed back to the negotiating table.
http://www.wzzm13.com/news/news_article.aspx?storyid=52686
Michigan smoking ban snuffed out
Carin Windom
LANSING, Mich. (AP) - Legislation to ban smoking in Michigan's bars and restaurants is stalled in the state Legislature - six years after it was first introduced.
http://www.mercurynews.com/mld/mercurynews/news/politics/14330046.htm
Posted on Thu, Apr. 13, 2006
Anti-abortion petition drive supported by GOP committee
TIM MARTIN
Associated Press
LANSING, Mich. - Organizers of an anti-abortion petition drive say they have received a boost from a resolution adopted by the Michigan Republican Party.
http://www.mlive.com/news/grpress/index.ssf?/base/news-28/1144856120265110.xml&coll=6
What's behind gas-price spike?
Wednesday, April 12, 2006
By Barton Deiters
The Grand Rapids Press
If last year's gas prices of more than $3 per gallon were designed to numb consumers to future increases, they worked.
http://www.detnews.com/apps/pbcs.dll/article?AID=/20060413/OPINION01/604130334/1008
Thursday, April 13, 2006
Editorial: Detroit budget proposal sets the stage for change
Mayor cites his authority to control pay and benefits
Detroit Mayor Kwame Kilpatrick's structural plan to save the city's finances has some teeth to it. If it's realized, it could help change the cost of city services.
http://www.freep.com/apps/pbcs.dll/article?AID=/20060413/NEWS01/604130392/1003/NEWS
Kilpatrick cuts less than feared
But new fee for garbage pickup draws fire quickly
April 13, 2006
Residents and city workers fearing a doomsday scenario when Detroit Mayor Kwame Kilpatrick unveiled his budget Wednesday instead saw a plan that calls for only modest layoffs, no major cuts in services and the restoration of 100 laid-off police officers.
http://www.freep.com/apps/pbcs.dll/article?AID=/20060413/OPINION01/604130413/1068/OPINION
P.S.
April 13, 2006
State regulators have told Detroit Mayor Kwame Kilpatrick to return $45,200 in campaign donations from people with ties to the city's gambling casinos. He's lucky the law doesn't have a double-or-nothing clause.
http://www.freep.com/apps/pbcs.dll/article?AID=/20060413/OPINION02/604130411/1070/OPINION
Q&A with Mayor Kwame M. Kilpatrick
April 13, 2006
After his presentation to the City Council, Detroit Mayor Kwame Kilpatrick reviewed his budget and other issues facing the city in a conversation Wednesday afternoon with the Free Press.
NATIONAL STORIES
http://www.townhall.com/opinion/columns/benshapiro/2006/04/12/193437.html
The winning Republican message in '06
Judge the Democrats by their friends
Apr 12, 2006
by Ben Shapiro
Prospects look bleak for the Republican Party in the upcoming midterm elections. The latest Washington Post poll shows registered voters heavily favoring Democrats over Republicans. This isn't because Democrats have articulated a vision that Americans find compelling -- it's because Republicans have splintered and abandoned their message. The public isn't happy with Democrats, it's angry with Republicans.
http://www.csmonitor.com/2006/0413/p01s02-uspo.html
from the April 13, 2006 edition
Democrats eye big House gains
Energized by GOP scandals, they grow more confident of winning control of Congress.
| Staff writer of The Christian Science Monitor
WASHINGTON – California Democrat Francine Busby's first-place showing in Round 1 of Tuesday's special congressional race may give her party a jolt of optimism in its quest to retake the House in November.
http://www.washingtonpost.com/wp-dyn/content/article/2006/04/12/AR2006041202042.html
Democrats Face Uphill Battle to Retake House
Washington Post Staff Writer
Thursday, April 13, 2006; Page A01
An 18-month recruitment drive by the Democrats has produced nearly a dozen strong candidates with the potential for unseating House Republicans, but probably not enough to take back control of the House absent a massive anti-incumbent wave this fall, according to House political experts.
http://www.mlive.com/news/bctimes/index.ssf?/base/news-6/1144854927203630.xml&coll=4
Sen. Stabenow: Michigan should not 'compete down'
Wednesday, April 12, 2006
TIMES STAFF
Michigan needs to level the playing field to compete in today's global economy, U.S. Sen. Debbie Stabenow, D-Lansing, told Bay City area business leaders Tuesday.
http://www.washingtonpost.com/wp-dyn/content/article/2006/04/11/AR2006041101146.html
Obstacles to a Saner Tax Code
Wednesday, April 12, 2006; Page A17
Almost everyone agrees we could make the income tax system simpler, friendlier and more economically sane. But we haven't, and we probably won't. Getting from here to there is just too exhausting politically. We'd first have to overcome the opposition of most senators and members of Congress who derive much power and pleasure from inventing and defending the tax code's complexities: all the special breaks for favored voting blocs and fashionable public crusades. Then we'd have to defuse the hostility of all the threatened taxpayers, including (probably) most homeowners. It's a long shot.
http://hosted.ap.org/dynamic/stories/I/IMMIGRATION?SITE=MIDTN&SECTION=HOME&TEMPLATE=DEFAULT
Reid seeks immigration bill rescheduling
WASHINGTON (AP) -- The Senate's top Democrat asked Majority Leader Bill Frist on Wednesday to return to work on immigration legislation immediately after the Senate completes a bill with more money for military operations in Iraq and hurricane relief.
http://www.opinionjournal.com/columnists/pnoonan/?id=110008224
At the Immigration Rally
Having an open heart doesn't mean supporting open borders.
Thursday, April 13, 2006 12:01 a.m. EDT
I love immigrants. That's not important or relevant, but it's where I start. I love them so much I often have the impulse to kiss their hands. I am not kidding. I love them because they are brave. They left their country and struggled their way to this one to get a better life. (It's good to remember that that's not an insult to us but a compliment. They're saying: Your way is better.) I love immigrants because they make themselves lonely for their children. They go to a place where few share their language, their memories, their references. They do this so their children will have a greater chance at happiness. I love immigrants because they invest in the future with the biggest thing they can invest with: their life.
http://www.detnews.com/apps/pbcs.dll/article?AID=/20060413/POLITICS/604130336/1022
Thursday, April 13, 2006
Rallies deepen unease of blacks
Immigration debate is missing input of blacks, who some analysts say have the most at stake.
Teresa Watanabe / Los Angeles Times
Najee Ali, an African-American activist, tries to turn out for as many civil rights rallies as he can.
But on the day that hundreds of thousands of Hispanics marched through downtown Los Angeles for immigrants' rights, he had no idea it was happening until he turned on the TV.
http://hosted.ap.org/dynamic/stories/C/CIA_LEAK?SITE=MIDTN&SECTION=HOME&TEMPLATE=DEFAULT
Libby lawyers want access to more evidence
WASHINGTON (AP) -- Lawyers for former White House aide I. Lewis "Scooter" Libby say a prosecutor is trying to "have it both ways" by playing up President Bush and Vice President Dick Cheney's role in leaking intelligence on Iraq to reporters but refusing to turn over evidence in the case.
http://www.washingtonpost.com/wp-dyn/content/article/2006/04/12/AR2006041201789.html
White House Decries Report on Iraqi Trailers
By Joby Warrick
Washington Post Staff Writer
Thursday, April 13, 2006; Page A18
The Bush administration yesterday denounced a Washington Post report that questioned the handling of postwar intelligence on alleged Iraqi biological weapons labs. A White House spokesman acknowledged that President Bush's assertions about the suspected labs were in error but said this was caused by flawed intelligence work rather than an effort to mislead.
http://www.humaneventsonline.com/article.php?id=13977
View From Iraq:
We Must Not Fail; This Struggle Matters
by Rep. John Shadegg
Posted Apr 13, 2006
Each time I go to Iraq I am torn. Having voted for the use of force, and attended far too many funerals for courageous young soldiers in my district, I go in search of vindication. Is the war is succeeding? Are we defeating the enemy? Is a stable democracy and productive economy emerging?
http://www.washingtonpost.com/wp-dyn/content/article/2006/04/12/AR2006041202384.html
Iran's Nuclear Progress
The regime answers Western diplomacy by firing up the atomic factory.
Thursday, April 13, 2006; Page A20
MAHMOUD AHMADINEJAD continues to help the Bush administration's effort to convince the U.N. Security Council that more concerted action is needed to stop Iran's nuclear program. His loud announcement yesterday that Iran had succeeded in enriching uranium confirmed recent warnings by U.S. officials -- dismissed by some as exaggerated -- that Tehran's nuclear program was fast advancing. His defiant and exaggerated claim that "Iran has joined the club of nuclear nations" ought to make clear to Russia, China and other Security Council members how seriously the Iranian regime is taking their demand that it freeze its enrichment work. That is: not seriously at all.
http://www.washingtonpost.com/wp-dyn/content/article/2006/04/11/AR2006041101078.html
An Iranian Missile Crisis?
Wednesday, April 12, 2006; Page A17
The emerging confrontation between the United States and Iran is "the Cuban missile crisis in slow motion," argues Graham Allison, the Harvard University professor who wrote the classic study of President John F. Kennedy's 1962 showdown with the Soviet Union that narrowly averted nuclear war. If anything, that analogy understates the potential risks here.
http://hosted.ap.org/dynamic/stories/U/US_IRAN?SITE=MIDTN&SECTION=HOME&TEMPLATE=DEFAULT
Rice calls for 'strong steps' against Iran
WASHINGTON (AP) -- Denouncing Iran's successful enrichment of uranium as unacceptable to the international community, Secretary of State Condoleezza Rice said Wednesday the U.N. Security Council must consider "strong steps" to induce Tehran to change course.
http://www.mlive.com/news/grpress/index.ssf?/base/news-1/1144856295265110.xml&coll=6
Protect, restore the lakes
Wednesday, April 12, 2006
The Great Lakes have to remain true to their name, for the sake of Michigan and the nation. But encroaching threats could make these freshwater riches the Mediocre Lakes, even the Lousy Lakes, unless Congress acts.
http://www.nytimes.com/2006/04/13/nyregion/13budget.html?_r=2&oref=slogin&oref=slogin
Governor Vetoes Albany Spending and Tax Breaks
By DANNY HAKIM
Published: April 13, 2006
ALBANY, April 12 — Gov. George E. Pataki has vetoed nearly $3 billion worth of tax cuts and spending initiatives from the Legislature's budget, saying on Wednesday that they would lead to irresponsible future deficits.
http://www.mlive.com/news/kzgazette/index.ssf?/base/columns-2/1144855423221370.xml&coll=7
Political animal bites fat cat
Wednesday, April 12, 2006
From The New York Times
The shell game that political professionals play with the campaign laws has taken an encouraging hit in the House. Enough Democrats joined Republicans to pass a bill to plug the egregious soft money loophole used in 2004 to flood the presidential campaign with hundreds of millions of dollars in attack ads and voter drives. These were palmed off as independent advocacy under Section 527 of the tax code. In truth, they were shadow party schemes.
http://www.washingtonpost.com/wp-dyn/content/article/2006/04/12/AR2006041202387.html
Real Lobbying Reform
A House committee tackles the nexus between campaign cash and legislative influence.
Thursday, April 13, 2006; Page A20
DON'T HOLD your breath for this to turn up in the final version of lobbying reform, but the House Judiciary Committee approved an amendment last week that would help shed light on the symbiotic relationship between lobbyists and lawmakers. Offered by Rep. Chris Van Hollen (D-Md.), the provision would require lobbyists to report not just the campaign contributions they gave directly to lawmakers but also the campaign checks they solicit for or deliver to lawmakers -- in other words, a measure of the real influence they wield. Astonishingly, this proposal passed the Judiciary Committee by a vote of 28 to 4 -- along with the underlying bill, a proposal that started out weak and was watered down from there.
MIRS Capitol Capsule, Wednesday, April 12, 2006
Granholm Issues 'Challenge' On SBT
Today Gov. Jennifer GRANHOLM issued a challenge to Republican legislative leaders to sign an agreement to both repeal the Single Business Tax (SBT) by the end of this year and craft a replacement for the SBT that would not shift taxes to citizens or make deep cuts in health care, education or police and fire services.
Copies of the agreement bearing the Governor's signature have been delivered to the offices of Senate Majority Leader Ken SIKKEMA (R-Wyoming) and House Speaker Craig DeROCHE (R-Novi).
"I've made my position clear: I will not allow the business tax burden to be put on the backs of Michigan families" Granholm said. "If the Republican leaders can accept that basic principal, we could eliminate the SBT tomorrow and replace it with a better business tax."
According to the Granholm news release today, the Governor told legislative leaders she would support legislation repealing the SBT by 2008 if it was amended to "protect families from a tax increase and/or massive cuts to education, health care, and public safety."
When Republicans moved the legislation without the wording Granholm wanted, she vetoed it.
Today's news release appears designed to make it seem that Granholm wants to move more quickly and aggressively on the SBT issue than the Republicans. Not only is she calling for a repeal of the tax by the end of this year, the release expressly states that the Legislature wants to repeal it in 2008, instead of in 2007 — although Dec. 31, 2007, which is the timing of the GOP proposal, is just a tick away from 2008.
The news release included a copy of the signed agreement the Governor sent to the Republican leaders. It reads:
We agree to enact a bill that does both:
1. Repeals the Single Business Tax for tax years beginning after December 31, 2006; and
2 Assures adoption of a better business tax that does not raise taxes on individuals and protects healthcare, education, and public safety by fully replacing revenue generated by the repealed tax.
In response Sikkema sent back an "Agreement to Lead" proposal that both he and DeRoche signed. It reads:
We agree to lead the State of Michigan to a brighter future by doing the following:
1. Taking the duties and responsibilities entrusted to us by the citizens of Michigan seriously;
2. Making tough decisions to restrain spending and force Michigan's government to live within its means;
3. Keeping the same position on an issue for longer than it takes to complete two public polls;
4. Leaving campaign rhetoric and nonbinding promises on the campaign trail where they belong.
DeRoche responded to the Governor with a letter.
The letter asserted that the Granholm pledge was structurally flawed, in that a commitment to revenue neutrality is a commitment to job neutrality.
"We've traveled this road, Governor, and it has brought us to last place," the speaker wrote. "Workers need a better business tax code that encourages jobs and does not tax jobs."
The GOP speaker's letter also challenged Granholm on her campaign pledge four years ago to eliminate the SBT.
"But last December, you scuttled a deal to cut business taxes because you wanted to keep the SBT indefinitely," wrote DeRoche. "Again this year, when given the opportunity to sign legislation to keep or eliminate the SBT, you said it would be irresponsible to do so and took out your veto pen once again. Now I have a signed pledge indicating a desire to eliminate it at the end of this year. Forgive me, but I'm getting sea-sick keeping track of your position on this issue."
The Speaker said he's done "playing games" with the governor's political advisors.
Granholm Press Secretary Liz BOYD responded to the GOP response.
"I guess we have to assume they're not interested in protecting citizens or eliminating the SBT this year," Boyd said. "This was a serious offer to address a serious issue and if there's any election gimmick it's eliminating the SBT in an election year and offering no replacement."
Public Open On SBT
Michigan voters are willing to consider paying a little extra in taxes so the state's politically battered major business tax can be replaced with something more competitive, but they don't like the idea of businesses getting away with big tax breaks at their expense, according to a poll released today.
In an EPIC/MRA survey sponsored by MIRS and The Detroit News, 56 percent of the 600 voters asked said the Single Business Tax (SBT) hurts businesses and 67 percent said it should not be replaced dollar-for-dollar with a new business tax. Fifty percent of voters said both the taxpayers and businesses should pay for a replacement tax.
But when an actual dollar figure was attached to this theoretical idea, the voters' blood curdled. Sixty-seven percent said they opposed (53 percent strongly) a proposal to give businesses a 32 percent tax break that would also put the state on the hook for $600 million in either individual tax increases or budget cuts.
The upshot from the poll appears to be that while taxpayers know the economy is a problem and they're willing to point to the SBT as the boogeyman making it happen, they're not set in stone about what should be done about it once it's gone.
"The public is willing to look at it," said Ed SARPOLUS, EPIC/MRA Vice President.
If the poll is accurate, a public with very limited knowledge about the SBT wants to learn more about the alleged job-killing SBT and whether it has anything to do with the state's stalled economy. As it is, 42 percent said they believe the SBT discourages business growth and 47 percent believe it discourages businesses to locate in Michigan. Both answers, while not a majority, were the highest percentage responses to questions on how the SBT impacted business growth and business expansion.
On the straight question of whether the SBT should be replaced, 42 percent of the public said yes and 37 percent said no.
The survey conducted over the past two weeks comes as Lansing's debate over the future of the tax has hit a boiling level. Only two weeks after the governor vetoed a bill that speeds up the death of the SBT by two years, Gov. Jennifer GRANHOLM came back today with a proposal to slay the SBT three years faster than its current 2009 expiration date (see related story).
The business interests in Lansing have succeeded in demonizing the SBT in the Legislature and among Lansing decision-makers. Now the same case is being made to the public. Oakland County Executive L. Brooks PATTERSON is leading a citizen initiative to get a veto-proof SBT elimination plan to the Legislature in the form of 255,000 signatures by May 31. Republican gubernatorial candidate Dick DeVOS is starting to talk about it now too (See "DeVos, Patterson, DeRoche Join In SBT Bashing," 4/11/06).
The race is on now to sell the public on a replacement — be it an expanded sales tax, a new business tax that isn't a dollar-for-dollar replacement or a new business tax that is "revenue neutral."
"There is a consensus that the SBT may have seen its best days and it needs to be eliminated," said Granholm Press Secretary Liz BOYD. "Do we think ordinary citizens want their taxes raised to pay for it? No, we're not convinced."
Boyd also said 30 states squeeze a higher percentage of taxes from their businesses than Michigan. And knowing what the state has needed to cut from the budget, the governor is leaning toward a revenue-neutral business tax plan as part of a broader effort to improve the state's economy.
There's no question the public views the economy as the state's No. 1 issue. In a separate EPIC/MRA poll, 44 percent said improving the state's economy and providing more jobs was the state's top concern. This answer equaled the next five responses combined. Finishing in a tie for eighth place with 2 percent was "cutting taxes for Michigan businesses."
Republicans and the business community will try to wed these two negative terms — "state's economy" and "business taxes" — to the public in the coming weeks.
"Reality is 90 percent perception," said Senate Republican Spokesman Ari ADLER. "If we don't address the state's horrible reputation for taxes, we'll never have economic recovery."
Granholm Releases Income Tax Returns
Gov. Jennifer GRANHOLM released all 48 pages of her and First Gentleman Dan MULHERN's 2005 income tax returns with basically only the family's social security numbers blacked out.
In 2005, the governor and her husband made a total of $178,119. The governor listed $158,991 as her income. Daniel Mulhern Inc., Mulhern's consulting company, made $1,160. The rest of the income came from $10,520 in taxable refunds or credits, $1,030 in capital gains and $4,403 from partnership revenue stemming from Daniel Mulhern Inc.
The governor had $11,853 in total deductible contributions to charities and paid $36,708 in state, local, federal and city income taxes.
Granholm requested that 5 percent of her salary be given back to the state and did not claim the $481.44 deduction as a "gift" on her tax returns. Granholm made sure to include a letter from her accountant stating that she didn't claim this money as a gift even though she could have. Granholm's annual contribution back to the state equaled $5,777 in 2005.
If the governor paid 5 percent of her flat gross $177,000 gubernatorial salary, that number would be $8,850, but since the governor pays the 5 percent after taxes, and with her adjusted gross income, the number works out to be less.
Granholm's release of her tax returns will likely be compared with how gubernatorial candidate Dick DeVOS shared his 2005 income during a Thursday morning press conference with Democratic Party Chair Mark BREWER (See "DeVos Releases Financial Details …" 3/31/06).
The press conference is titled "Brewer To Discuss What DeVos Is Hiding In His Tax Returns."
Previous SBT Cuts Not Felt By Businesses
The vast majority of businesses (71 percent) want to see the Small Business Tax (SBT) eliminated even though a recent poll shows that only nine percent of businesses polled felt they benefited "a lot" from previous cuts and 26 percent said they saw "some" benefits from previous cuts.
Although there's a clear discrepancy between wanting tax cuts and feeling the effects of the cuts, eliminating the SBT would benefit businesses more than other cuts because it would eliminate an incredibly complicated tax, said Dan SMITH of the Detroit Regional Chamber of Commerce.
Businesses very rarely do their SBT returns because they're too complicated, Smith said. Eliminating the tax, though it wouldn't necessarily result in companies hiring more workers or return bundles of money to businesses, would make tax season much easier.
"Businesses could just pay their taxes," Smith said.
The disconnect between business owners' distaste for taxes and their perceived benefit of the tax cuts came in an EPIC/MRA survey released today of 558 businesses. MIRS and the Detroit News sponsored the poll.
Business owners told pollers they haven't benefited from previous state tax cuts. Forty-five percent said they haven't benefited at all and 27 percent said they've benefited "only a little" from state tax cuts.
Rich STUDLEY with the Michigan Chamber of Commerce said he wasn't at all surprised that businesses don't feel like they've seen any impact from state tax cuts.
"If you follow it here in Lansing you might get the wrong impression," Studley said.
Lansing defines MEGA grants, Brownfield tax credits, individual property tax abatements and other state tax breaks as decreases, often sending out press releases to magnify the cuts, Studley said.
However, the majority of state businesses don't see these cuts. Most businesses are not eligible for MEGA grants, Brownfield credits and individual property tax abatements and many companies are getting hit with higher fees and higher property taxes so they see tax increases, not decreases, Studley said.
"They (tax cuts) haven't had the same impact on every employer across the state," Studley said.
MIRS asked Studley if he thought more businesses would feel a direct benefit if the SBT were eliminated. Studley answered by saying a SBT replacement could be worse than the SBT, a topic that was addressed during a panel discussion of the poll results held today at the Chamber of Commerce.
Patrick ANDERSON of Anderson Consulting said policymakers could design a worse possible business tax. It would include taxing some and not others. It would include taxing people who employ workers. It would include taxing the state's biggest industries and their substantial investment to the economy.
"Throw in dozens of special provisions and an invitation to an aggressive tax plan and you end up with today's SBT," Anderson said. "I don't think anybody could start off designing one that ends up worse for us than what we have now."
Economist Doug DRAKE with Public Policy Associates disagreed. He said if the state went back to a corporate profits tax, it would have a tremendous impact on public services. Even if the state tried to make it revenue neutral, it would be difficult given the state of Michigan's economy and the struggles expected from the automobile industry.
MIRS asked the question again and Studley said, "For many members it's hard to imagine a tax more burdensome, more complicated and a greater source of litigation."
Though Studley didn't take a position on the question, both he and Smith agreed that eliminating the SBT would at least prevent members from getting a migraine every time they mention the acronym SBT.
Dems Jump On CFL Petition Vote
The Michigan Democratic Party (MDP) claimed today that when the state Republican Party Policy Committee voted to urge support for the Citizens for Life (CFL) ballot proposal it proved that the GOP is controlled by the right-wing extremists.
The charge was made today in an article posted on the MDP Web site titled, "Radical MIGOP votes unanimously to make any woman who gets even a life-saving abortion a criminal."
On Saturday the policy committee voted unanimously to express "support for the concept that life begins at conception" and encouraged party members to consider supporting the CFL initiative. If passed, the CFL proposal would basically be a direct challenge to Roe v. Wade. (See "GOP Backs Abortion Petition Drive," 4/10/06)
The MDP's take in its article was that "the Michigan Republican Party (MIGOP) unanimously passed a resolution in support of the Citizens for Life ballot initiative.
However, Sarah ANDERSON, spokesperson for the Michigan Republican Party (MRP) claims the Democrats are misrepresenting what actually happened on Saturday.
"The fact is that the committee did not vote to support the Citizens for Life proposal, it voted to encourage party members to take a look at it," Anderson said. "As part of the GOP platform we are pro-life but nothing would happen if the [CFL] initiative were to pass unless something happened nationally to overturn Roe v. Wade."
Democrats claim the CFL initiative would make all abortions illegal, even in the cases of rape, incest or to save the woman's life. They claim the CFL proposal would also outlaw forms of contraception as well as make those doctors involved criminals.
“By supporting the Citizens for Life ballot initiative, the radical right-wing Michigan Republican Party has moved even farther out of the Michigan mainstream,” said MDP Chair Mark BREWER. “The Party of Dick (DeVOS), Mike (COX) and Terri (LAND) unanimously voted to make criminals and murderers out of those women who choose to get an abortion because they were raped or want to save their own lives.”
But Anderson said Brewer is again misrepresenting reality.
"I've seen nothing in the wording of this petition that would make a woman who has an abortion a murderer," Anderson said. "And different Republican candidates are taking individual stances and positions on the issue."
But Brewer labels the CFL proposal a GOP proposal.
“The people of Michigan understand that the Republican Party's extreme proposal is unjust, unfair and is one of, if not the most radical initiatives the state has ever seen,” Brewer added. “Michigan voters will overwhelmingly reject it and the Republican Party. We need to find ways to reduce abortions, not make women criminals.”
Anderson dismissed Brewer's remarks as "nonsense."
"This is all just Mark Brewer's normal nonsensical misrepresentations," Anderson said. "Apparently the Democrats are getting pretty desperate and grasping at anything they can."
GONGWER- Volume #45, Report #70 --Wednesday, April 12, 2006
GRANHOLM THROWS DOWN GAUNTLET ON S.B.T., G.O.P. CALLS IT GIMMICK
Governor Jennifer Granholm has upped the ante in the battle over the Single Business Tax, challenging Republican legislative leaders to repeal the tax effective at the end of the current year and to develop a replacement mechanism that "fully" replaces the revenues raised by the current tax while not raising taxes on individuals nor making cuts to major services. The Republican leaders called her challenge a gimmick and urged her to "keep the same position on an issue for longer than it takes to complete two public polls."
But some business officials said they have waited for 18 months for government to come up with some alternative to the SBT, so they thought moving ahead to end the tax this year and devising an alternative by December 31 was a doable idea.
"If they do decide to this, I've got guys ready to work on it," said Chuck Hadden of the Michigan Manufacturing Association.
At least one other business official called the strategy an attempt by Ms. Granholm to make herself "relevant on an issue where she has become irrelevant."
Oakland County Executive Brooks Patterson said if Ms. Granholm dropped her demand that the proposal be revenue neutral then he might urge the Legislature to take the challenge.
Senate Finance Chair Nancy Cassis (R-Novi) said she too could work on a proposal to end the SBT by year's end but that it would have to include a tax cut and possibly additional spending restraints.
Ms. Granholm issued her challenge to Senate Majority Leader Ken Sikkema (R-Wyoming) and House Speaker Craig DeRoche (R-Novi) a day after the Board of State Canvassers approved the form of a petition that would eliminate the tax at the end of 2007, instead of 2009 (see related story). Last month, Ms. Granholm vetoed a bill that would have eliminated the tax in 2007.
In a press release accompanying her challenge, Ms. Granholm said, "I've made my position clear: I will not allow the business tax burden to be put on the backs of Michigan families. If the Republican leaders can accept that basic principal, we could eliminate the SBT tomorrow and replace it wit a better business tax."
The agreement sent to the two leaders said: "We agree to enact a bill that both: 1. Repeals the Single Business Tax for tax years beginning after December 31, 2006, and; 2. Assures adoption of a better business tax that does not raise taxes on individuals and protects healthcare, education and public safety by fully replacing revenue generated by the repealed tax."
Shortly after Ms. Granholm issued her challenge, Mr. Sikkema issued a letter to Ms. Granholm and a separate "Agreement to Lead" signed by him and Mr. DeRoche.
"It is my belief that pledges are simply campaign gimmicks, which is why I never sign them," Mr. Sikkema said in his letter. "Even if I were to sign pledges, I would not sign the one you sent over because it is a commitment to continuing unchecked government spending, which is what leads to the need for higher taxes in the first place."
Saying Ms. Granholm had vetoed the earlier bill on the SBT in part because it had no legal authority, Mr. Sikkema said: "Now you are asking us to sign a nonbonding pledge that carries absolutely no legal authority."
Matt Resch, spokesperson for Mr. DeRoche, said, "Who thought you could spell stunt with SBT?" Mr. DeRoche too would not sign Ms. Granholm's proposal.
The "Agreement to Lead" said the leaders would take the "duties and responsibilities entrusted to us by the citizens of Michigan seriously; making tough decisions to restrain spending and force Michigan's government to live within its means; keeping the same position on an issue for longer than it takes to complete public polls; leaving campaign rhetoric and nonbonding promises on the campaign trail where they belong."
In his own letter to Ms. Granholm, Mr. DeRoche said Ms. Granholm's call for a revenue neutral proposal means it would be "jobs neutral. We've traveled this road together, Governor, and it has led to last place."
In reviewing what he said was Ms. Granholm's changing position on the SBT, Mr. DeRoche said, "While your miraculous change of heart heartens me, I am done playing games with your political advisors. We've taken the issue into our own hands and taken the issue to the people. The petition drive will continue and we will end this job-killing tax without you."
But Liz Boyd, Ms. Granholm's spokesperson, said a bigger campaign gimmick is to pass an ending date for the tax and then pass off the decisions to replace the tax to another Legislature.
Ari Adler, Mr. Sikkema's spokesperson, said anything the Legislature might develop during an election year would be more politics than good policy. But Ms. Boyd said that the election is still far off and, like the Legislature in 1993 developed the Proposal A tax solution that accomplished its task in fewer than six months, a bipartisan proposal could be developed.
Mr. Patterson said there may be enough time to enact an alternative proposal, "but none of us is going to negotiate a revenue neutral proposal for the governor. There will be a tax cut."
But Ms. Boyd said that since studies have shown that 30 states collect more in business taxes than Michigan the issue is not "how much money is collected but how it is structured."
The proposal must be revenue neutral, Ms. Boyd said.
Asked what would happen should Legislative Democrats attempt to push an earlier tax elimination deadline, Mr. Adler said such a move would be irresponsible. "This whole pledge is farcical to begin with," he said.
Mr. Resch was more cautious, saying House members are looking at business tax options and it theoretically could be possible to move a December 31 end.
Rep. Pam Byrnes (D-Chelsea), who attended a forum Wednesday to discuss the results of an EPIC-MRA poll about the SBT, said she thinks that maybe the governor's call to action will help legislators "get on the ball" to replace the much-maligned tax.
She added that through task forces and work groups made up of economics experts she thinks it's possible to find a replacement to the SBT by the end of the year, clearing the way for the Legislature to tackle more pressing issues such as increasing the number of skilled workers and improving the state's infrastructure.
In response to Ms. Granholm's request to come up with a replacement and pitch the SBT by the end of the year, Douglas Drake of Public Policy Associates said "anything's possible."
"But when you start talking about an alternative to raising the revenue, people in opposition come out of the woodwork," he said, adding that although it makes sense economically to replace at least some of the revenue by expanding the sales tax to the service industry, "the minute you start considering it, you have service industry people lined up at the Capitol saying 'you're not taxing us.'"
Business officials were also mixed in their reaction. Charles Owens of the National Federation of Independent Businesses said Ms. Granholm and legislative Democrats cannot be trusted on the issue. By vetoing the earlier bill, "she's not in the game," Mr. Owens said.
But Rob Fowler of the Small Business Association of Michigan said that since his organization was the one that proposed the current 2009 elimination date, his members would be happy with an earlier date.
"We're well aware we will never come up with a replacement until we agree it has to go," Mr. Fowler said. But he too said a tax cut needs to be part of a replacement proposal.
And Mr. Hadden said an election year should have no bearing on taking action. "If you are serious about doing it, let's do it," he said.
GRANHOLM REPORTS $178,119 IN 2005 INCOME
The tussle over personal financial disclosure turned to Governor Jennifer Granholm on Wednesday as she released 2005 family income tax returns showing $178,119 in taxable income, with 20.6 percent of that paid in federal, state and local taxes. Republican gubernatorial candidate Dick DeVos has declined to make his tax returns public, but nearly two weeks ago he released a summary of his holdings and sources of income though without revealing any dollar amounts.
The 2005 income marks a slight increase for Ms. Granholm and her husband Dan Mulhern after three straight years in which the couple's income fell as Mr. Mulhern's business shed several of its contracts: from $214,421 in 2002 to $171,779 in 2004. The 2002 year included $112,474 in taxable income by Mr. Mulhern, but that dropped to $4,403 in 2005.
They paid 20.6 percent overall on their adjusted gross income in combined income taxes, counting federal, state, city of Lansing and city of Detroit amounts. On the federal side, they paid 16.7 percent of their income in taxes, or $19,665. They paid $5,380 in Michigan income taxes and $1,663 to Lansing and Detroit.
The governor and her husband gave $11,853, or 6.7 percent of their income, to charities.
Meanwhile, Ms. Granholm is putting the finishing touches on a proposed ethics law, which she had announced in December, that covers conflicts of interest and financial disclosure.
When Ms. Granholm first ran for governor, she proposed an ethics law that would have required elected officials to report income sources by category, stockholdings, businesses in which the officeholder, spouse or dependent have significant interest, real estate holdings, contracts with state and local governments.
Such disclosure was not provided Wednesday, but Granholm spokesperson Liz Boyd said the governor would be happy to file such a report. "The only property the governor and Dan own is a Ford Focus," she said.
DeVos campaign spokesperson John Truscott said he had not seen the details of the governor's disclosure, but said, "I don't know if it makes a difference. The bottom line is people care a lot less about what people make than they do about what they will do to turn around the economy of the state of Michigan."
He said Mr. DeVos proved by his disclosure (See Gongwer Michigan Report, March 31, 2006) that he does not have any conflicts that would affect him as governor, which is "an issue people care more about." Mr. Truscott said Mr. DeVos does not have a position on required financial disclosure of all officeholders.
"Citizens have a right to know who their elected leaders are working for and where they get their income," Ms. Boyd said of the tax return release by the governor.
In his disclosure, Mr. DeVos said he and his wife Betsy paid an average of 37 percent in federal taxes on income and short-term capital gains and 17 percent on dividends and long-term capital gains over the eight-year period covered by the report, but declined to say how much income they had.
John Chamberlin, state chair for Common Cause of Michigan which has long pushed for mandatory disclosure, said he prefers full disclosure including monetary amounts and tax returns and placed the emphasis on knowing what conflicts may exist that could affect public policy. He said he still believes monetary disclosure is important but can see the logic of arguments that sources of income and assets are enough.
He said the ideal is "someplace between DeVos and full disclosure. If I could get the kind of disclosure from everybody that DeVos did, would I take it? Yeah," he said. "If forced to chose between tax returns with lots of nitty-gritty but nothing on assets, versus disclosure on assets, I might rather have disclosure on assets and income. Both are important. Getting someone's tax returns is quick and easy, but I'm not sure I would structure disclosure around a tax return."
"I would argue that a tax return is very informative," Ms. Boyd said. "It lays it all out what the governor's family income is, the taxes that they're paying, the amount of charitable giving they did, investments, everything including taxes paid on child care workers."
The bulk of the couple's taxable income is the $158,991 in wages, all of that in Ms. Granholm's income as governor. She also gives back to the state $5,777.28 per year under a 2003 commitment to give back 5 percent of her salary of $177,000, an amount that is calculated after subtracting taxes paid on the income. They had $3,079 in dividends from holdings in various funds and company stock, $1,030 in capital gains and $96 in interest.
The governor has been giving back 5 percent of her salary since October, and in December 2004 had asked the State Officers Compensation Commission to reduce the salary for governor and lieutenant governor by that amount. (She had been sending back 10 percent of her salary as of October 1, 2003 reflecting pay reductions that affected state employees).
Mr. Mulhern's company had two contracts worth $23,000 in 2005: one with the Detroit Regional Chamber and the other with St. Vincent Hospital in Indianapolis.
Both Ms. Granholm and Mr. Mulhern made contributions to 401(k) funds, which reduced the income subject to tax.
The governor's office said charities include such groups as St. John Student Parish, American Red Cross, Think Detroit, Coalition for Temporary Shelters in Detroit, United Negro College Fund, Focus: Hope and Big Brothers/Big Sisters of America.
POLL SHOWS S.B.T.'S BARK MAY BE WORSE THAN ITS BITE
Although a study indicated the Single Business Tax is not as damaging economically to businesses, and therefore to job creation, as its reputation implies, the perception that it is a jobs killer beats the reality at this point and the tax has got to go, said business owners and others polled by Lansing-based EPIC-MRA.
Business owners who have long dealt in the debate about the economics of the SBT agreed, during a panel discussion on Wednesday to discuss poll results, that despite the fact that if the tax liability were erased it wouldn't provide enough extra revenue to hire even one worker, "the negative perception has become a reality."
Sticking to his guns throughout his time on the panel, Douglas Drake of Public Policy Associates said the biggest problem with the tax is that it has become a scapegoat for the ills of the economy, even though most business owners said it doesn't actually significantly hamper their ability to grow.
"We're putting too much emphasis on the SBT," he said. "We need to focus on the fundamental changes that need to be made to have a competitive future."
One example of the contradictions pointed out in the survey is that slightly more than a third of polled businesses ranked the SBT as the tax they'd most like to see eliminated.
In fact, 71 percent of business owners and 42 percent of the public said they were in favor pitching the SBT.
However, in reality two other costs ranked higher in the list of those difficult for businesses to pay, with 39 percent of business owners saying that insurance costs are the hardest to pony up, 28 percent saying that utility costs are burdening them the most and 24 percent saying the SBT is a top financial hardship.
Only 37 percent said the SBT has any kind of negative affect on businesses, compared to the 52 percent who said the tax doesn't affect businesses one way or another.
Still, 58 percent of business owners said felt that the tax discourages businesses to locate in Michigan.
Slightly more than a third, 37 percent, said the most important attraction for business relocation to Michigan is a favorable tax climate, while 31 percent said the workforce was most important.
Patrick Anderson, another panel member and owner of Anderson Economic Group, said he disagrees that the survey results show that taxes don't matter all that much to employers.
He said even though there are things more important to companies, such as a trained workforce and the cost of insurance, there is a consensus in the survey that the SBT is an "indefensible tax that needs to be reduced or eliminated."
That said, only 18 percent of business owners and 14 percent of the public thought the nearly $2 billion in revenue that would be lost with SBT elimination should be replaced with another tax while 35 percent of business owners said none of the revenue should be replaced. Of the public respondents, 25 percent said none of the revenue should be replaced.
The most favored tax to replace the SBT among businesses and the public is a tax on corporate profits, with around a quarter of each saying that would be the best type of business tax.
The runner-up - corporate income taxes - got 16 percent of the business vote and 18 percent of the public's.
As for whether eliminating the SBT would create more jobs, as its opponents have ventured, Mr. Drake said he's not convinced, since his company, which has a relatively high burden under the tax, wouldn't even save enough money to hire one half-time employee if the tax were eliminated.
Indeed, 40 percent of business owners said any tax cuts would serve to increase their profits, and would not likely be used to hire more workers. Slightly more than a third said they would hire more workers and 15 percent said lowered tax burdens would increase profits and enable them to expand their staffs.
Only 19 percent of the public thought businesses would add employees, while nearly half thought companies would use tax cuts to fatten their own pockets.
H.F.A.: U. GRADUATION RATES ABOVE NATIONAL NUMBERS
Students at Michigan's 15 public universities are graduating at a rate higher than the national rate, especially if they are given six years to complete their first bachelor's degree, an analysis by the House Fiscal Agency has found.
In a memorandum to the House Appropriations Subcommittee on Higher Education, analyst Kyle Jen compared students entering college on a full-time basis for the first time in 1998. The rankings were weighted based on the number of incoming students for each school.
Students at the University of Michigan had the highest graduation rate with 67.2 percent after four years of studies, 84.3 percent for five years and 86.6 percent for six years. The memo states that this reflects that more students there enroll for a full load of classes, which is 30 credits per academic year.
Michigan State University came in 2nd with 35.6 percent of students graduating within four years, 65.9 percent within five years and 71.3 percent within six.
The top three was rounded out by Michigan Technological University with 27.8 percent after four years, 56.4 percent after five and 62.5 percent after six.
Central Michigan University placed 4th according to its six-year rate of 55.4 percent, but came in 5th for its five-year ranking of 45.8 percent to Western Michigan University (46.2 percent) and placed 6th in terms of its four-year rate of 19 percent to Northern Michigan University (21.8 percent) and Western Michigan University (19.3 percent). Western placed 5th in the four-year rate and six-year rate (54.7 percent) and 4th in the five-year rate.
Grand Valley State University ranked 6th overall for its six-year rate of 49.8 percent, but placed 7th for its four-year and five-year rates of 18.9 and 42.1, respectively. The University of Michigan-Dearborn also saw its rankings drop with earlier graduation, placing 7th with a 49.7 percent six-year rate, but falling to 8th for its five-year rate of 38.9 percent and to 9th for its four-year rate of 13.4 percent.
Oakland University also found itself in the middle of the pack with an 8th place six-year rate of 46.7 percent, a 9th place ranking of 34.9 percent for five years and 10th place for the four-year rate of 12.1 percent. Northern, while ranked 9th overall for its six-year rate of 45.1 percent, placed 4th for its four-year rate and 6th for its five-year rate of 42.2 percent.
Eastern Michigan University also followed the pattern of a better ranking based on its six-year rate of 41 percent, coming in 10th overall, with a five-year rate of 30 percent placing it in 12th place and ranking 11th for its four-year rate of 10.4 percent.
Placing 11th overall was the University of Michigan-Flint with a six-year rate of 37.4 percent, though the school received 13th place markings for its four-year and five-year rates of 9.8 percent and 28.1 percent, respectively.
Lake Superior State University received a 12th place ranking overall for its six-year rate of 37 percent, put received higher marks for its four-year and five-year rates of 14.9 percent (8th) and 31.3 percent (10th).
On the reverse side of the coin, Saginaw Valley State University received its highest place for its six-year rate of 35.1 percent, but received 14th place marks for its four-year and five-year rates of 6.6 percent and 25.1 percent, respectively.
Ferris State University came in 14th overall with a six-year rate of 34.7 percent, but placed 11th for its five-year rate of 30.7 percent and 12th for its four-year rate of 10.1 percent.
Wayne State University, which did not report graduation rates prior to 2002 because it was under a voluntary system of reporting, came in last place in all categories with four year, five year and six-year rankings of 7 percent, 21.4 percent and 31.7 percent, respectively.
The weighted average for all schools amounted to 1.4 percent above the national average of 26.8 percent for four-year graduation rates, 4.3 percent above the five-year rate of 47.4 percent and 5.5 percent above the 53.2 percent rate.
Northern showed the greatest gain in students who graduate within six years with a rate increased by 9.4 percent from 1997 to 2004. Saginaw Valley and Grand Valley ranked 2nd and 3rd respectively for increasing the number of graduates over that time period. Wayne State's percentage change was not reported because of the reporting differences. The schools with the lowest changes were Central (1.8 percent), Michigan Tech (2.1 percent) and Western (2.5 percent).
Graduation rates are based on a number of factors according to the Education Trust, including the estimated median SAT or ACT score of the freshman class, admissions selectivity, percent of undergraduates receiving federal Pell Grants, the number of full-time equivalent undergraduates, student-related expenditures, percent of full-time equivalent students age 25 or more, school status as an historically black college or university, percent of undergraduates that are enrolled part-time, school status as a commuter campus, public versus private sector and Carnegie classification.
The trust reports that receiving Pell Grants shows the highest level of influence on graduation rates.
Rep. Chris Kolb (D-Ann Arbor), who serves as minority vice chair for the House Appropriations Subcommittee on Higher Education, said that the numbers do show a snapshot of what's happening at the state's public universities.
With several universities at less than the halfway mark for graduation rates, even after six years, Mr. Kolb said legislators need to look at the barriers students face in completing their degrees.
"There are different populations of students and that will have a factor," he said. "If we are going to budget for priorities and success I think we have to look at some of these (statistics). It's not about adding more capacity, it's about looking whose there now."
Another issue with graduation rate rankings, according to the fiscal analysis, is that rates are based on the institution and not student in that they do not account for students transferring out of one institution and receiving a degree at another school, such as those who take two years of community college but instead of applying it to an associate's degree, they use it toward obtaining a bachelor's degree at a public university. That kind of student would not be reflected in either the community college or university graduation rates, the fiscal agency concludes.
The analysis also compared each state university to its equivalents across the nation. The University of Michigan and its other campuses in Dearborn and Flint faired well, with Michigan Tech, Lake Superior, Michigan State, Oakland, Central and Western also placing in the middle or above in terms of its category's graduation rates.
Wayne State, Eastern, Ferris State, Grand Valley and Northern all placed in the lower half in terms of graduation rates compared with their equivalent schools across the United States.
HOUSE G.O.P. LOOKS TO EXPAND BUSINESS INCENTIVES STATEWIDE
Instead of allowing a select number of communities across Michigan to provide abatements or caps on taxes paid by businesses in order to attract jobs, House Republicans have announced a plan that would allow all municipalities in the state to use these economic development tools.
The legislative proposal, scheduled to be taken up by the chamber in the coming weeks, would designate any community as a CORE community, which would then allow locals to abate personal property taxes on new equipment for eligible companies; cap property taxes on improvements to obsolete or contaminated property zoned for business that has been rehabilitated; and establish Brownfield Tax Increment Finance Authorities that would permit brownfield zones and development plans for financing and designate neighborhood enterprise zones.
There are 98 communities currently given than designation.
Republican lawmakers say the measures will encourage revitalization of local business districts and give communities a competitive edge while the auto industry recovers.
"This proposal puts the entire state of Michigan into a jobs-growth zone, allowing communities to put out the welcome mat to compete for new industries and job providers," said Rep. David Farhat (R-Fruitport), who is sponsor of the property tax cap legislation.
Rep. Leslie Mortimer (R-Horton), who is sponsor of the neighborhood zone legislation, said, "Every community in Michigan needs the tools to encourage growth and create jobs."
March figures from the U.S. Bureau of Labor and Statistics showed Michigan with a 6.6 unemployment rate, largely spurred with job losses in the manufacturing sector, compared to the national rate of 4.8 percent.
Over the year, non-farm employment increased in 48 states and the District of Columbia, but decreased in Louisiana and Michigan, according to the bureau.
House Democrats turned over their response to the proposal to Michigan Democratic Party Chair Mark Brewer, who said, "This proposal is Republican camouflage for a record of promoting the outsourcing of our jobs, lower wages for Michigan workers and blocking pension protections."
Mr. Brewer also made comments about the two legislative sponsors listed in the press release, saying in an e-mail, "If David Farhat wants to stimulate the economy he should start by paying his back taxes and repaying his debts. Leslee (sic) Mortimer has voted repeatedly to give tax breaks to companies that send jobs overseas. Like Dick DeVos, she has a history of creating jobs...in China."
PATTERSON: 80,000 SIGNATURES ALREADY COLLECTED
The petition form was approved on Tuesday but Oakland County Executive Brooks Patterson said 80,000 signatures have already been collected in the drive to eliminate the Single Business Tax by December 31, 2007.
Mr. Patterson said Wednesday that signatures have been collected since the second week of March.
On Tuesday the Board of State Canvassers approved the form of the petition, a step not required by state law.
A professional group is helping collect the minimum 254,206 signatures of registered voters needed to either compel the Legislature to adopt the proposal or to put it before the voters in November.
"We're collecting about 1,500 to 2,000 signatures a day," Mr. Patterson said. "And we're still ramping up."
Mr. Patterson said he has a goal of collecting about 350,000 signatures to ensure the proposal is certified.
However, the signatures must be collected by May 31, and with some 49 days left the drive will have to collect at least 3,555 signatures a day to meet the 254,206 requirement and 5,510 signatures a day to meet Mr. Patterson's goal of 350,000.
BOND ISSUE: Mr. Patterson said he has dropped a proposal that Oakland County could bond to help the state to make up the difference between revenue the state would lose and the cost of state programs. Since Governor Jennifer Granholm rejected the proposal, he said, he told his bond counsels not to pursue the issue.
STABENOW/LEVIN DROP OBJECTIONS TO TWO JUDGES
The way has potentially been opened for Wayne Circuit Judge Sean Cox and Midland Circuit Judge Thomas Ludington to win approval to the U.S. District Court in Detroit as U.S. Sen. Carl Levin (D-Detroit) and U.S. Sen. Debbie Stabenow (D-Lansing) have dropped their opposition to the two.
Both judges, named to the federal district court by President George W. Bush, had been blocked by the two Democrats as part of a general concern over how majority Republicans in the U.S. Senate had treated the judicial nominees of former President Bill Clinton.
Mr. Ludington was first nominated to the court in 2002, and Mr. Cox, the brother of Attorney General Mike Cox, was nominated in 2004. Both were notified last week that the two senators had dropped their objections.
