December 23, 2003
December 23, 2003
LANSING – Governor Jennifer M. Granholm today signed a number of budget bills related to the agreement reached last week to resolve the $920 million deficit for fiscal year 2004. In addition, Granholm signed bills to reauthorize the Michigan Economic Growth Authority (MEGA) which include incentives for Electrolux in West Michigan.
The budget bills signed by Granholm today include Senate Bill 852, sponsored by Senator Bob Emerson (D-Flint), which pauses the scheduled income tax reduction until July 1, 2004. The pause was part of an agreement reached last week with legislative leaders to address the budget deficit. The revenue preserved by the pause will be used to offset the shortfalls in the School Aid Fund and payments to local units of government and institutions of higher learning. The income tax rate will be 3.9 percent effective July 1, 2004.
“Pausing the income tax reduction for six months is the fiscally and socially responsible way to address the shortfall in the state’s budget,” commented Granholm. “It allows us to minimize the cuts to K-12 education, higher education, and revenue sharing and to protect and preserve the social safety net and the essential state services that matter most to Michigan families.”
Also included in today’s bill signings are Senate Bill 672, sponsored by Senator Nancy Cassis (R-Novi), and Senate Bill 673, sponsored by Senator Tom George (R-Texas Twp.), which will phase out 50 percent of the health care add back to the Single Business Tax (SBT) base over the next three years.
“At our recent Michigan Manufacturing Matters Summit, we heard from business and labor leaders that the skyrocketing costs of health care benefits are negatively impacting their ability to remain competitive in the global marketplace,” said Granholm. “I’m proud that even in a tough budget year like this one, we are able to help businesses offer health care coverage to their employees. We have to provide Michigan businesses with the tools to attract and keep healthy, productive workers.”
The Governor also signed a package of bills to reauthorize MEGA. The Michigan Economic Growth Authority was created to promote high quality economic growth and job creation in Michigan. Senate Bill 820, sponsored by Senator Jim Barcia (D-Bay City), Senate Bill 821, sponsored by Senator Allan Sanborn (R-Richmond), and House Bill 5246, sponsored by Representative David Farhat (R-Muskegon), amend the SBT to extend to December 31, 2009, the ability of MEGA to award tax credits to attract and keep businesses in Michigan. The original legislation authorizing MEGA was due to expire on December 31, 2003.
Also included in this package is House Bill 5255, sponsored by Representative Dan Acciavatti (R-Chesterfield Twp.), which provides for an alternative retention MEGA credit intended to keep Greenville refrigerator manufacturer, Electrolux, from moving operations to Mexico. The alternative credit is for businesses that make a capital investment of $100 million over a specified five year time period and agree to maintain at least 1,500 jobs at the facility without permanent reduction in full-time employment except through attrition or retirement. The credit is part of an incentive package that addresses international competition and includes a negotiated labor contribution.
“We want Electrolux to stay in Michigan,” said Granholm. “The state has fostered Electrolux’s expansion in Greenville for over a decade, and we will continue to work with them to keep this valuable company in Michigan. I believe the package of incentives we have put together will help to convince Electrolux that the business climate and the high quality workforce right here in West Michigan are second to none.”
The Governor also signed supplemental appropriations bills, including the supplemental school aid bill and the following:
•SB 700 – requires payment and collection of school delinquent property taxes to conform to the state process.
•SB 482 and SB 761 – SB 761 allows school districts to contract with a qualified provider for energy conservation improvements in the schools; SB 482 defines qualified provider.
•SB 805 and HB 5270 – allow up to $75 million of the Clean Michigan Initiative (CMI) money to be used for loans and grants to local units of government and brownfield redevelopment authorities.
•HB 5168 – changes the date for filing an affidavit for a homestead exemption back to May 1 from December 31.
•HB 4439 – extends the sunset on the wireless 911 fee.
•HB 4655 and HB 4656 – prohibit practicing medicine with a .08 blood alcohol content (BAC) and extend the sunset to allow Canadian nurses to practice in Michigan.
•HB 4896 – repeals the 2003 sunset on the Natural Resources Commission’s authority to establish rules allowing licensed falconers to take specific raptors from the wild for use in falconry.
•HB 4899 – allows process servers to receive traveling fees which cover mileage from the courthouse to the place of service (not to exceed 75 miles in one direction).
•HB 4938 – creates an updated Michigan Notary Public Act
Granholm vetoed Senate Bill 840, sponsored by Senator Tony Stamas (R-Midland), that would have created a small business czar. The legislation is unnecessary since the new Department of Labor and Economic Growth (DLEG) is focused on job creation and economic growth in Michigan, including attracting and supporting small businesses.
