2010 Legislative Agenda

Michigan Turnaround Plan - Phase 1

Step 1: Reform the Way we Manage State Finances

  1. Amend the Management and Budget Act to establish a 2-year budget cycle for state government to more accurately project ongoing costs of programs.

  2. Form an independent public-private revenue forecasting council to complete quarterly revenue and spending estimates.

Step 2: Right-size and Enact Budget Reforms

  1. Remove barriers for local municipalities and school districts to increase efficiency through sharing services by amending the following laws:
    1. Compulsory Arbitration of Labor Disputes in Police & Fire Departments (PA 312 of 1969)
    2. Urban Cooperation Act (PA 7 of 1967)
    3. Intergovernmental Transfer of Functions & Responsibilities Act (PA 51 of 1951)
    4. Conditional Land Transfer Act (PA 425 of 1984)
    5. Emergency Service Authorities Act (PA 57 of 1988)
    6. Public Employment Relations Act (PA 336 of 1947)
    7. Metropolitan Transportation Authorities Act (PA 204 of 1967)
    8. Metropolitan Councils Act (PA 292 of 1989)

  2. Consolidate school administrative functions (HR, IT, finance, purchasing, etc.) across K-12 school district lines.

  3. Adjust public employee health care contributions to the national public sector average (currently 17.8%).

  4. Reduce state employee compensation to the average compensation of state workers in the U.S. and eliminate the scheduled 3% pay increase.

  5. Reduce the state workforce by 5%-10%.

  6. Enact reforms to Michigan’s Corrections system that bring our costs in line with other mid-west states.

Step 3: Get Michigan Competitive to Attract & Retain Jobs

  1. Make Michigan more competitive and move us significantly toward becoming a top ten state for job growth by reforming the Michigan business tax structure by enacting a proposal that would: eliminate the MBT Surcharge; reduce the MBT gross receipts tax rate from .8% to .45%; adopt a 5.5% sales tax on services (exempting B2B transactions, health care, education, housing, and other services that are already taxed); reduce the sales tax on goods to 5.5%; and, be revenue neutral in 2010.

  2. Require all legislation & regulatory change proposals that impact business to include fiscal notes estimating the financial and compliance costs to business before any committee hearings are held.