Ward fiddles while Michigan’s economy fizzles

Despite the state facing a $2 billon hole in the state budget because Chris Ward and the rest of the Michigan Legislature voted to repel the Single Business Tax, without a replacement, Ward is busy wasting his time trying to influence the U.S. Congress on much more trivial matters and pandering to his base.

Despite facing a deadline to find a replacement for the SBT or face cutting prisons, police, fire, road maintenance and helping the working poor with medial care and food, Ward found time on Aug. 16 to introduce House Joint Resolution AA to “petition the U.S. Congress to call for a convention to amend the U.S. Constitution to require congressional districts to be apportioned on the basis of U.S. citizens in the district, rather than on the basis of raw population.”

He found time to do this when the Legislature is on summer break, and it meets at a maximum - when it’s not canceled - once a week during the summer. Where are his priorities? He should be addressing the serious problems facing the state’s economy and the huge budget deficit we will soon face when nothing is found to replace the SBT before the deadline, but instead he is hell bent on writing discrimination into the U.S. Constitution. He is also on some kick against aliens, and this is just a continuation on his move earlier this year to identify Michigan drivers as U.S. citizens, or noncitizens, on their driver's licenses with House Bill 6086.

Ward’s resolution is the same discriminatory move that was introduced last summer by U.S. Rep. Candace Miller in the form of U.S. House Resolution. 53. Miller’s resolution was heard by the House Government Reform Subcommittee on Federalism and the Census in December, and thankfully, it hasn’t been heard from since. Does Ward not think Miller is capable of doing her job?

It’s ironic that this discriminatory Amendment they are pushing would most likely supercede the 14th Amendment that was passed after the Civil War because southerners would not accept African-Americans as citizens. It would do away with an Amendment that stands as a beacon for eliminating prejudice for one that encourages discrimination.

It has been referred to the committee Ward chairs, the House Oversight, Elections and Ethics Committee.

I wonder if we will see a repeat of the fisacaco of last May when Ward threatened to forcibly remove a Catholic Priest from the hearing room or arrest him when Ward held hearings on the driver’s license bill for daring to want to speak against the discriminatory bill.

Rev. Cecilio Reyna, the pastor of St. Mary Catholic Church, just wanted to tell Ward about his mother, A Mexican national who married an American GI in 1957, then lived in the U.S. as a noncitizen, LEGAL resident for 40 years, and she was tax-paying resident with a job and a Social Security number for that entire time.

As if we need another reason to fire our State Representative

Phil Power hit the nail on the head with his column today on the irresponsible move by the Legislature to repel the Single Business Tax in the Livingston County Daily Press & Argus. Power has been a long-time observer of politics, education and economics as a journalist, publisher and owner of one of the largest newspaper chains in the state, including the Press & Argus. He is a former University of Michigan Regent, and he is also the founder of The Center for Michigan, a moderate think tank. The point is he knows what he’s talking about.

Michigan's state budget could face a whopping $3 billion deficit (out of a $9.3 billion General Fund) as a result of the Legislature's repeal of the Single Business Tax.
That's because the lawmakers who did that this summer acted without the slightest idea of what to replace it with. And there is no guarantee they'll get one in place before the tax expires.

And if you need further proof of a lack of coherent political leadership these days, you need only look at two contradictory proposals on the November ballot — both of which might pass. (Just one more reason we need to fire our current state Representative.)


Let's look at the ballot proposals first. One, called "Stop Over Spending" (SOS), would constitutionally restrict the amount the state can spend, period. The other, called "K-16," seeks to require more state spending for schools. For one thing, most government experts think sticking spending decisions into our Constitution is a bad idea.

As for the Single Business Tax — it now seems the Legislature, in its urgency to repeal the unpopular tax (and pander to the voters), (He must know Ward’s record) forgot it takes some time to properly set up the system to administer and collect any replacement business tax. The SBT, which produces around $1.9 billion in state revenue, is set to expire on Dec. 31, 2007. As of now, the current lawmakers are supposed to solve that problem in a "lame-duck" session after the Nov. 7 election.

More realistic observers figure it will take the Legislature months and months to hammer out a new state business tax.

And on top of that — veteran tax experts say it takes a long time to develop the necessary systems to collect the new revenue.

Joseph J. Tomczyk, director of John Bernard LLC, a tax advisory firm in Royal Oak, says, "it certainly will take at least a year, probably closer to 18 months to put together all the systems required to make the tax work." He knows something about this; he is a former staffer at the state treasury department. Tomczyk says the state has to understand the language of whatever bill the Legislature passes and the governor signs. Who's taxed? How is the tax to be computed? What about estimated payments? Pre-payments?
Then there is the matter of forms and systems. How to process and account for the returns? What about delinquent taxpayers and follow-up, not to mention audits?
The bottom line is that the state is already facing a billion-dollar "structural" budget deficit, which means that the funding systems now in place automatically turn up that much of a shortfall, every year.

If the Legislature follows its traditional work pace — which is very, very slow — it won't get around to passing a replacement business tax until late 2007. If it then takes 18 months for the Department of Treasury to sort out the tax-collection systems, the state could be facing a sky-high deficit of nearly $3 billion or so (the $1 billion current deficit plus nearly $2 billion in business tax shortfall) for the fiscal year that starts in October 2007.

Michigan's Constitution forbids any deficits at all, so some time next year the Legislature might find itself having to cut state spending by around one-third! You may be certain neither candidate for governor nor any of the folks running for the Legislature are going to talk much about this problem. But we could be facing a financial train wreck, thanks to the obsession with cutting taxes above anything else, especially sound government policy.

State Convention proves another opportunity to talk to voters

Mike and I both spent the weekend at the Democratic State Convention this weekend in Detroit.

Unfortunately, I was only able to attend one of the caucuses and only vote for the Attorney General and Secretary of State on the convention floor on Sunday because I volunteered to work at the registration desk and give out credentials. It was fun, but I regret missing the first-ever blogger conference they held. However, I did get to meet a lot of different people from all over the state. When ever I work a party function like this, and this is the second time I have worked at a convention, I am amazed at all the different people from every race, ethnic group, national origin and economic level that attend these conventions.

Mike used the time to do what he does best, talk to people. To have the opportunity to talk to a lot of people from all over the state to gather information about the similar problems they are facing and to hear some ideas about solving some problems was invaluable. Because the party is so diverse, he was able to talk to the whole gamut of people being hurt by the economy, including representatives of labor, workers, business owners, management and local state and federal elected officials.

It was a thrill to see Democracy in action. There was actually a floor fight for both Attorney General and Secretary of State, and we have two excellent candidates. This is only the second such convention I have attended, but some people I talked to who have been to many conventions told me that by summer convention time the nominees for Supreme Court, State Board of Education, candidates for the board’s of the state’s public universities, attorney general and secretary of state are already decided. However, this year, for the first time in many years as I was told, the nominee for AG and SOS had not yet been settled.

Voting is proportional broken down by Congressional District and then county. Livingston County went unanimously with its 34 votes for the eventual winners, the next AG Amos Williams and SOS Carmella Sabaugh.

Sabaugh had some interesting ideas Mike would like to propose as legislation when he is elected. They want to change the deadline for registering to vote from 30 days before the election to allowing same day registration, she pledges – and the law should make it mandatory – not to serve on any campaign committee while serving as the state’s chief election official, allow anyone to vote absentee for any reason and support automatic voter registration when you get your driver’s license or state ID.

The goal is to actually increase voter turnout from the average dismal turnout of 25-40 percent of registered voters we normally see to as near to 100 percent as possible. It doesn’t seem right that a minority of the people are making decisions for everyone.

This is in share contrast to Chris Ward’s efforts to thrown roadblocks in front of people who want to vote, like his unconstitutional bill that will require people to show an ID card in order to vote. It’s unusual for a former clerk to work to try and keep voter turnout down and disenfranchise voters, but it’s just another scheme to try and keep him and his cronies in power.

Taxes not to blame for downturn

Despite mounting evidence and report after report that concludes high taxes are not to blame for Michigan’s slow economy, the rush to blame taxes continues.

The latest evidence comes from a report from the respected W.E. Upjohn Institute for Employment Research that concludes “a weak auto industry - not high taxes - are at the heart of Michigan's struggling economy, and that “Michigan has lagged behind the rest of the nation since 2000 almost entirely because of the decline of Michigan's automakers,” according to a story Tuesday in the Lansing State Journal.

This is what Mike has been saying all along, and we have to diversify our economy while actually giving our U.S. automakers some actual help in cutting costs to stay competitive in areas like health care costs and other areas.

The report also said “eliminating the Single Business Tax without replacing the lost revenue wouldn't significantly help Michigan catch up with the rest of the nation in job growth. The cut in taxes would reduce public-sector employment, it added.”

Timothy Bartik, a senior economist at the nonprofit, nonpartisan institute, said “the explanation comes down to the auto industry, which has shrunk as domestic automakers have lost market share and as technology allows more cars to be built with fewer workers. For every direct auto job that is lost, four jobs in other industries are lost, he said.”

“The study also said that doubling the number of college graduates in the state would help the economy, but that would take many years to achieve.”

The Governor wants to double the number of Michigan's college graduates, but action by the U.S. Congress that raised the interst rate on student loans is making that tougher. It’s up to the Michigan Legislature to try and find some solutons, and history shows this group will not.

Mike, who is helping put three kids thrrough college, is well awaure of the costs of a college education, and he also knows the importance and economic
benefits of a college education, for both the individual and to the state.

County Dems look to influence state Convention

BRIGHTON – A resolution unanimously approved by the Livingston County Democratic Party at its semi-annual county convention hopes to tie future minimum wage increases to pay raises for the Michigan House and Senate.

Precinct delegates and party members gathered at the party’s headquarters in Brighton for the county convention Saturday to consider the resolution and to credential delegates for the state convention set for next Saturday and Sunday Aug. 26-27. The Fairness in Wages Resolution that was approved will be sent to the state party to be considered by the Platform Committee at the Democratic State Convention and State Central Committee Meeting to be held at the Cobo Conference and Exhibition Center in Detroit.

The resolution was jointly drafted by the party’s three candidates for the Livingston County state Legislative Delegation: Mary Andersson, candidate for the 47th District seat in the state House; Donna Anderson, candidate for the 22nd District seat in the state Senate; and Mike McGonegal, candidate for the 66th District seat in the state House.

The Democratic Party had organized a successful petition drive that would have placed the question on the ballot to raise the minimum wage to $7 an hour and tie periodic increase to the rate of inflation. However, the Legislature approved an increase in the minimum wage to $6.95 an hour in April when it saw the petition drive would be successful, but it does not have any mechanism for increasing the minimum wage.

The minimum wage was last increased eight years ago, despite inflation increasing every year and eroding the buying power of the lowest wage earners every year. The resolution would insure that if the Legislature voted itself a cost of living increase or other raise the minimum wage would also see a similar increase. It will also help stem the deplorable situation that occurred in 2001 when the Legislature voted themselves a 38 percent wage hike.

“This is a resolution about simple fairness, and we don’t begrudge anyone getting a modest raise to keep up with inflation, even Legislators,” said Joe Carney, chair of the Livingston County Democratic Party. “But when the House and Senate decide to vote themselves a salary raise, they will also be helping Michigan’s lowest paid workers and their families.”

There are choices in November vote

An excellent Letter-to-the-Editor appeared in today’s Daily Press & Argus from regular contributor Ed Radlowski. In three paragraphs he summed up what we have been saying all along. Great job, Mr. Radlowski, and keep them coming. The people of Livingston County now have some great choices instead of the status quo that has done nothing for the county or their districts.

Now that the Republican-controlled state Legislature has voted to rescind the Single Business Tax, you can be sure of at least three things:

Nothing will be done until after the November elections to find replacements for the lost revenue; 2. Our current representatives, Joe Hune and Chris Ward, will make sure that special interests who provide for them, including factory farms and land developers, will not be affected; and 3. If the two are still around, the working people in their districts will be paying more in taxes or getting less in services.

There are alternatives. Two well-qualified candidates will be running against these professional politicians in the fall. Mary Andersson in the 47th District and Mike McGonegal in the 66th District have a good understanding of what living and working in a community is all about. Mary has been a teacher for more than 30 years, and Mike has been a businessman for a like amount of time. Why wouldn't we want people with real-life experience looking out for our interests?

Ed Radlowski
Brighton

It was raining candidates at Melonfest

Word of the day.

i·ro·ny - Incongruity between what might be expected and what actually occurs: “Hyde noted the irony of Ireland's copying the nation she most hated” (Richard Kain).

For those of you braved the misting rain and took in the Melonfest Parade Saturday in downtown Howell you got the opportunity to see most of the candidates we will be voting for on Nov. 7.

Among those I saw in the parade were Carol Hackett Garagiola, Judge Theresa Brennan, Judge Stan Latreille, Jay Drick, Carol Sue Reader, Valde Garcia, Donna Anderson, Mary Andersson, Jim Marcinkowski, Mike Rogers and even Mike Cox was in the parade. Mike McGonegal was there, of course, meeting and shaking hands before, during and after the parade. However, the one person I didn’t see was Chris Ward.

His campaign cash was present, however. Volunteers passed out fortune cookies with the fortune saying Vote for Chris Ward and red, plastic fire hats with Ward stickers in place of the badge. My two little granddaughters wore them because they didn’t know any better. They had no idea he does not have their futures in mind in while in Lansing.

I’m sure with the money he gets from the lobbyists and special interest groups he really represents he can buy a lot of those cheap, plastic hats, but it makes you wonder how much it will cost to get direct contact with him by the people who actually vote.

The only thing Mike was giving out was his time and his ear. As you saw from the last blog entry, to get Ward’s ear it will cost you one of those very expensive burgers, at a minimum.

Upon a closer examination of the fire hats a little golden sticker about the size of your pinky fingernail caught my eye; it read “Made in China.” But that was not really the most disturbing thing about the hats.

The irony of Ward giving out fire hats in light of his irresponsible vote last week to eliminate the Single Business Tax with no replacement in sight was not lost on me.

It will blow a huge $2 billon hole in the state budget, and much of that money would have gone to local governments in the form of revenue sharing that is used to help fund essential local services like police and fire protection.

That brings us back to our word of the day, Irony.

The Ward hit parade: Bonus Burgers

Politicians always hope things they do early in their terms will be forgotten by the voters when election time rolls around, and that’s what our opponent, Chris Ward is hoping. However, we intend to remind voters of his actions in office, from trying to give away public land to a connected developer to accepting money from the Michigan Beer and Wine Wholesalers Association in exchange for a law that said you could not buy a bottle of wine direct from a Michigan winery without going through a wholesaler first.

Some Ward supporters and staff members have complained that we are personally attacking Ward on this blog. That’s just not true. We are simply pointing out his record and conduct while in office, and it’s a record of arrogance, representing the lobbyists and special interests instead of voters and self-serving actions. I know of no way to beat an incumbent other than to point out what he has done with the trust the voters have placed in him, and he has squandered that trust.

I not only urge Ward, his staff and his supporters to come here and try to defend his actions; I challenge them to point out a personal attack.

The incident we want to point out to today to the voters who may have forgotten it is an article that appeared in the Nov. 29, 2005 edition if the Livingston County Daily Press & Argus that pointed out over about a two-year period that lobbyists spent $5,899 on free meals for Ward. His defense was “it’s convenient to meet over a burger at lunch.” Man, those are some expensive burgers. I would sure like to taste one of those burgers.

For a little comparison, Ward is the Majority Floor Leader, and he’s responsible for directing activity on the House floor, and he’s the No. 3 man in House leadership. The actual leader of the House had only about $1,800 worth of free meals courtesy of lobbyists. Apparently, Ward’s time is much more valuable than Craig DeRouche’s.

On the Senate side, there are just 38 Senators compared to 110 House members, meaning Senators represent almost three times the amount of constituents a state Representative is responsible for. So it might seem logical that the more powerful Senators would have more money spent on them by lobbyists. Not true.

The Senate Majority Leader only ate $1,170 worth of free meals, and Ward’s direct counterpart in the Senate, the Senate Majority Floor Leader, only scarfed down $1,200 worth of free burgers.

Rich Robinson, Director of the Michigan Campaign Finance Network, said it’s not so much the free meals but the unfettered and direct access to a state lawmaker that’s important. I can guarantee you this; no constituent ever got that much one-on-one time with Ward, even if they were springing for the burgers, unless they had a check in their hand too.

The article ends with this priceless Ward quote, “They’re certainly not going to buy my vote for a hamburger.” We certainly know that.

Party head makes stop in Brighton to defend the indefensible

Saul Anuzis, head of the Michigan Republican Party, made a stop in Brighton as part of a six-city tour to specifically criticize the Governor and defend the House and Senate for their shortsighted and irresponsible decision to repel the Single Business Tax two years ahead of schedule.

Why Livingston County? This is not supposedly a swing district.

The answer must be to defend the SBT decision that had an immediate negative effect on the state because just hours after the vote, Standard & Poor's announced that it is giving Michigan a negative outlook on its credit rating.

Clearly, Chris Ward needs defending as part of the House leadership that made that disastrous decision.

It’s ironic that Anuzis is trying to criticize the governor for her alleged “anti-business practices” when it was the governor that actually initiated the work on fixing or repelling the SBT. The difference is that she has experience working with this do-nothing-but-try-to-keep-themselves-in-power and obstructionist Legislature, and she knew killing it without a workable replacement for a tax that accounts for 25 of the state’s budget with this group was insane.

If Anuzis is so intent on electing people with business experience, he should be campaigning for Mike McGonegal. Mike is the only candidate with actual business experience, successful business experience and can work with people from both parties and to see and talk to him you don’t have to have a check in your hand. Ward has none of those qualities.

I think the most telling thing is Anuzis invited local business people to appear at the news conference with him, and not one showed up. Not one.

Local officials also worried about effect of SBT repel

According to a story in the Monday edition of the Livingston County Daily Press & Argus, local officials are worried what cuts they will have to make because of the cowardly vote of Chris Ward and the Michigan Legislature to repel the Single Business Tax without a replacement in sight. They should be.

Cutting $2 billon and 25 percent out of the state budget will be made up by the cuts and elimination of essential services and an increase in our tax burden. This is on top of the three years of cuts, increases in fees, belt-tightening and other tough choices the Governor has had to make to balance the budget after the last administration left the state’s finances in a mess.

According to the article, ‘That, in turn, has officials like Howell City Manager Shea Charles worried that some of the approximately $200,000 in discretionary money from the state that the city gets every year will disappear.
"Cities and villages across the state are bracing for more cuts from the Legislature," he said. "It's a fear that we have as a municipal community."
Howell gets about $200,000 annually in so-called "statutory" revenue sharing, which is set each year by the Legislature, and more than $600,000 in "constitutional" revenue sharing, which is guaranteed by the state constitution. Brighton receives about $600,000 in both kinds of revenue sharing combined.’

When asked if the revenue sharing that helps pay for police, fire and local road repairs for local governments will be cut, Chris Ward had a great answer.

"It's possible," he said. You think?

Ward has introduced a bill to tax gross receipts of businesses in lieu of the SBT, but it would fall $250 million short of replacing all the revenue.

However, that’s his opinion, and where he got those figures no one knows. Actually, it’s most likely the opinion of one of the lobbyists that has his ear and pays for his meals, and it will be the industry the lobbyist represents who will most likely benefit at taxpayer expense. The nonpartisan House Fiscal Agency or the Legislative Services Bureau (LSB) has not yet issued a report on the effects the bill will have. It has not even looked at this bill, and there is no sense of urgency to look at this bill.

Ward goes on to say, ‘the sacrifice of less spending is necessary to get the state's economy moving again.’ But an Anderson Economic Group study paid for by the House Republicans released last week said Michigan isn't doing as badly as some might expect in terms of the burden it places on businesses, and the study puts Michigan at 27 out of 50 states in total taxes paid by businesses as a percentage of profit earned within each state. Certainly not the alarm sounded by Ward, and it’s almost right smack in the middle. The middle is a pretty good place to be.

As pointed out by Mike McGonegal in the article, no reputable business is going to want to relocate to Michigan because the tax structure is now so unsettled, and they have no idea what the cost of doing business will be. To illustrate that fact, just hours after the House and Senate voted for the early repel of the SBT, the rating agency Standard & Poor's gave Michigan a negative outlook on its credit rating.

A Joint Select Committee is supposed to come up with a replacement of the complex SBT that was enacted in 1976 that combines seven separate taxes into one, but the committee will not even meet until after the November election. Basically. What that does is pass the buck on to someone else.

Actually, that may be the smartest thing the Legislature has done.

We need someone like Mike McGonegal to find a workable solution. Mike has 28 years of business experience, is not afraid to make a tough or unpopular decision and can work with both sides of the aisle. Ward has none of those qualities.

Where’s the urgency to replace the SBT?

Where’s the urgency, or batter yet, where is the Michigan Legislature?

As you know, Last Wednesday the House and Senate voted to blow a $2 billon hole in the state budget with the repel of the Single Business Tax two years ahead of schedule. It did so without a replacement. Just hours after it was approved we saw the consequences of that rash action when Standard & Poor's announced it was giving Michigan a negative outlook on its credit rating, making any business take pause before locating here because of the uncertainty of how the tax structure will be rewritten thereby deterring any business investment and relocation to Michigan.

But Chris Ward’s response was House Bill 6272 he introduced on June 27 that would replace the SBT. The act would be called the “The business activities licensing fee act,” but we know very little about it beyond that.

The bill was introduced the last week of sessions before the summer break, and it was referred to the Tax Policy Committee. There has been no report of the economic effects or the pros and cons by the nonpartisan House Fiscal Agency or the Legislative Services Bureau (LSB). These are composed of full-time employees who work all year, five day a week. Where’s the urgency to find a replacement for the lost revenue?

During the summer, the Legislature only meets once a week on Wednesdays, as compared to three days a week during the rest of the year. Although they are on the schedule as session days, they are usually canceled, and they have only met a couple of times since June; like when it put the cart before the horse and repelled the SBT last week.

When regular sessions resume on Sept. 5, there are only nine scheduled session days left before the election, and only 16 session days left before a new Legislature is seated. Do you really think something as complex as replacing the SBT will be accomplished in that timeframe. This is typical of the legislature and its leadership passing the problems on to someone else to solve while taking the credit for cutting taxes.

The bill has been sent to the tax policy committee, and a look at their agenda shows they have 198 bills to consider. If you go by their track record of dealing with bills, it will take them more than four years to get to this bill if no other bills are referred to them in the next four years.

The complex SBT was enacted in 1976 under a Republican governor, and it replaced seven separate business taxes, including the corporate income tax. During the 30 years the SBT has been in existence, Republican governors have been in charge 18 of those years, yet not one chose to eliminate it. Only the current governor got the ball rolling, but she had a realistic timetable and wanted a replacement first. That’s only commons sense.

One thing we can be assured of is that Ward will use his introduction of HB 6272 as the answer to the SBT on the campaign trail when there is little chance it will be passed, we don’t know how much money it will raise, we don’t know what businesses it will hurt and which ones will be held harmless and if fact we know very little about it.

Where’s the urgency?

Repel of SBT has immediate negative effect

BRIGHTON – The announcement Wednesday by Standard & Poor's that it is giving Michigan a negative outlook on its credit rating just hours after the State House and Senate voted to repel, the Single Business Tax two years ahead of schedule is just one more reason not to retain the House leadership in November.

Mike McGonegal, candidate for the Michigan House from the 66th District, said his opponent in the election helped lead the charge in its irresponsible early repel of the SBT that led Standard & Poor's to lower the state's rating on general obligation bonds to "AA. He said Wall Street is officially reaffirming the Legislature’s rash action Wednesday as a bad business decision for Michigan.

“This outlook is used by investors to make decisions,” McGonegal said. “The simple truth is the uncertainty of how the tax structure will be rewritten is deterring any business investment and relocation to Michigan.”

McGonegal also challenged Chris Ward and the House leadership to spell out exactly what it intends to cut to balance the state budget after a $2 billon cut in revenue that accounts for 25 percent of the budget. Those cuts will effect everyone in the state in the form of higher tuition costs at Michigan's college and universities, parks closing, prisons releasing criminals early, less money to public schools, less money for road maintenance, mores cuts in local revenue sharing that goes for police and fire protection and more of a tax burden to individual to make up for just a fraction of the lost revenue.

“It’s so convenient that these painful cuts will not even be talked about until after the election, protecting the Legislators from any accountability,” McGonegal said. “In the meantime, they can campaign using the myth that they actually cut taxes.”

McGonegal said he agreed that the SBT needs to be repealed and a better business tax found, but he said it’s irresponsible to repeal it without a solution even on the horizon.

Vote for early repel of SBT is irresponsible

BRIGHTON – Mike McGonegal, candidate for the Michigan House from the 66th District, called the leadership in the House irresponsible and short-sighted after it voted today to move up the repel of the Single Business Tax two years ahead of schedule.

McGonegal called the House vote that went 64-36 an act of cowardice and irresponsibility because it fails to spell out the cuts that must be made to make up the $1.9 billon in lost revenue and because of the chilling effect it will have on companies and businesses who may be considering moving to Michigan.

McGonegal said Chris Ward should let voters decide the fate of the SBT on the Nov. 7 ballot because the uncertainty of how the tax structure will be rewritten is deterring more investment. McGonegal, who has more than 28 years of business experience as a manufacturing sales representative for the auto industry, said it left many businesses in limbo not knowing what the replacement for the complex tax that combines seven different taxes into one will cost them.

“There’s no problem with getting rid of this tax, but the problem is killing it with no idea of how to replace the revenue that helps pay for the infrastructure and services businesses want and need when they locate to an area,” McGonegal said. “It’s just irresponsible that one of the highest paid legislatures in the country can’t act responsibly to try and find a solution to the problems we face.”

Plans are for a committee to recommend how to replace at least some of the lost revenue, but that will not come until after the General Election. Making the painful cuts necessary to balance the budget after the election will insulate the Legislators from any accountability for their actions.

“This is just one more way that this Legislature has avoided responsibility for its actions that are primarily aimed at keeping them in power,” McGonegal said. “This decision is the real job-killer, and it will hurt businesses more than it helps.”

First time out of the election gate is a mixed bag

BRIGHTON – Following his first time on the ballot for elective office, State House Candidate Mike McGonegal is taking the results for the 66th District race as both good news and bad news.

McGonegal, 57, said he appreciates the 3,320 votes he received and the many people he has met by going door-to-door every night and actually talking and listing to voters, but the bad news is his opponent outpolled him, despite doing very little campaigning, primarily meeting and greeting only lobbyists and special interest groups and only holding fundraisers.

Tuesday’s primary in Livingston County saw voter turnout at a low 21 percent, and all but one of the contested races were on the Republicans side, meaning not as many people were inclined to vote on the Democratic side. In November, voters are allowed to split their ticket, and McGonegal said he has gotten that very commitment from many voters on his evening door-knocking sessions who are fed up with the state Legislature in Lansing who refuse to address the real problems facing our state.

“I really just consider this a start,” McGonegal said. “In fact, instead of going to an election night party, I went out last night campaigning door-to-door giving my views face-to-face instead of putting them out in a slick, expensively-produced flier like my opponent.”

McGonegal said many people he talks to say they are not happy with the direction of the state, and they blame the Legislature in Lansing where his opponent holds a leadership position.

“I look forward to an issue oriented campaign where ideas matter rather than platitudes,” McGonegal said. “Education dollar imbalance, huge job losses, land giveaways and huge tax breaks for not-yet-built ‘Downtowns’ are things I plan to explore in the days and months leading up to Nov. 7.”

Ward shuns local businesses

I notice Chris Ward is holding his “Annual fundraiser” on Monday. I suspect it happens much more than annually, and I can also guarantee that’s how Mr. Ward will conduct his campaign leading up to November, a series of fundraisers. In other words it will cost voters $50 to meet him, but that’s really pretty cheap because it costs the lobbyists and special interest groups a whole lot more than that, and they are actually his constituents.
That’s not really the surprising part. The part I don’t understand is why is he holding it at a restaurant in Novi.

Novi is not in the 66th District. Couldn’t he find a decent restaurant in the 66th District, Livingston County or Milford?

Thee are plenty of great restaurants in his district or near his district owned by local business people who employ local people who live in and support the community. Why can’t he support them?

How about TW & Friends, which is in his district in Genoa Township? How about the Stillwater Grill, JR’s Iron Grill or the Brighton House? How about all the great restaurants in downtown Brighton, Howell or Milford?

E-mail him at WardforStateRep@hotmail.com and ask him why he deosn't support local businesses.

Jobs and the Economy

Everyone’s campaign this year is about jobs, and so is mine. I am running because I believe Michigan has to create the conditions that lead to new jobs, and that means addressing and fixing big problems. My opponent has done neither.

Case in point: There was a loss of 205,000 jobs in Michigan from December 2000 to December 2002, according the U.S. Bureau of Labor Statistics. Through 2005, an additional 62,000 jobs were lost. Our largest job losses have occurred under the watch Republican-controlled state government. Their response; tax cuts, which didn’t help then, and they won’t help now.

Michigan is in serious economic trouble. Our current Representative from the 66th District is the Majority Floor Leader in the House of Representatives. He sets the agenda for the House and is in a very good position to address and fix the big problems that face our state. He has done nothing toward that end, and most of his legislation and actions have been aimed at keeping himself in power and souring relations among his collogues across the aisle.
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My opponent states that he is working to bring jobs to Michigan by “eliminating the job-killing Single Business Tax and other big government regulations that keep Michigan from gaining the jobs we need.” He assumed office a month after one of the largest unemployment rates was recorded in Michigan’s history. If the job killer is due to the SBT and government regulation, he is unbelievably slow and unresponsive in applying his own remedy. If my opponent truly believes that we are over-taxing our businesses, why then in his four years in office, is there not a single law or proposed law that would mandate what share of the budget business taxes should fund? If the state is losing jobs because of the SBT, why are the legislature and the majority leader not busy cutting state payments to local hospitals, municipal governments and public universities in order to pay for tax cuts to businesses?

I have a different take on the job loss that is affecting Michigan manufacturing. In 2000, as a sales manager for a key supplier of hydraulic and pneumatic components to the automotive industry and its supply chain, we experienced a 60 percent loss in sales. The machine tool market began leaving metropolitan Detroit for Germany, Italy and Japan. It was more competitive for them to manufacture transfer lines - which are the machine tools that make automobiles - in Europe and the Pacific Rim. In 2005 for the first time in 100 years, the majority of cars manufactured in North America were made in Ontario, Canada.

We as a sales force were required to assess the causes for this dramatic decline. I polled my customers, and I discovered that it was a single issue that had nothing to do with the reasons now being put forth by my opponent. It was not taxes, high wages, or government regulations that drove our jobs out of Michigan. It was health care.

The skyrocketing cost of health care is at the root of our job problems. It fuels the export of manufacturing jobs, erodes the competitiveness of our automotive companies and their suppliers, and wrecks havoc on our ability to fund public education.
Other state legislatures, notably in Massachusetts, agreed this year on a bill that would provide nearly universal health care to its citizens. It provides a mechanism for state citizens to obtain health care by apportioning the cost among business, individuals and government. Lawmakers in Massachusetts found a way to address a critical issue, one also faced by Michigan, in a non-partisan manner. It simultaneously places responsibility on individuals, helps those in dire need and improves the curb appeal for companies doing business in Massachusetts.

The actions in Massachusetts demonstrate the immense power to “get it done” when all sides come together to create solutions to address and fix big problems.

Despite the popular perception to the contrary, the people of Michigan are not over-taxed. Michigan ranks 29th - or 30th depending on the poll - in taxation among the 50 states. A report by Michigan Future Inc., a public policy think tank in Ann Arbor, states that per capita state and local taxes in Michigan were $90 below the national average in 2002. More cuts in the income tax have only increased the gap. Minnesota is $532 above the national average, Illinois is $160. Alabama is $973 below the average.

Education ranks with health care in creating conditions that will make it easier for our state to attract medium and small companies alike. Excellence in education is a quality of life issue that will help, rather then hamper, the attraction of new companies to our state. If low taxes were the huge draw for companies, as my opponent would have us believe, sweet home Alabama would be the headquarters of a lot more companies then they have today.

The clear difference between our current State Representative and myself is our approach to addressing and fixing big problems. The majority leader would eliminate $1.9 billion from the states budget without any corresponding cuts in services or alternate funding. He does not offer a substitute or restructuring of the business tax. The tired old mantra of incessant tax cuts has left Michigan poorer, not richer.

I propose a strategy of self-funding investments in our health care and our educational system. The most important thing we can do is to have a diverse, expanding economy of non-exportable high skilled, high wage jobs.

The choice is clear. McGonegal for the 66th.

Voter ID bill causes flap between AG and House

Voter ID bill causes flap between AG and House leadership.
This editorial was in the Aug. 2 edition of the Detroit Free Press. Although it pits Craig DeRoche against the Attorney General, it’s Chris Ward’s attempt to disenfranchise voters with his voter ID bill that has caused the flap. The law would require people to show photo identification at the polls. A bill requiring photo identification was signed into law in 1995, but it was struck down by an opinion by former Michigan Attorney General Frank Kelley. Mike Cox apparently agrees with Kelly.
Generally, legislation is introduced to correct a problem, but what problem is Ward trying to correct? What voter fraud is he trying to correct? When was the last time you heard of voter fraud in Michigan? The answer to all of those questions is there is no problem with voter fraud in Michigan.
Of course, we have voter turnouts of less than 30 percent in most areas, and that’s a problem he should be addressing. Instead, he’s wants to depress voter turnout even more by throwing a roadblock up to voters. Not coincidentally, it’s minority and the poor who will be disenfranchised.
Most of the bills Ward has introduced are nothing more than thinly disguised attempts to keep him and his cronies in power, and that’s what is intended here with this insult to voters.

Seven years ago, Republicans in the Legislature tried to enact a law erasing much of the authority of the state attorney general, at the time a Democrat named Jennifer Granholm. The effort died, and deservedly so, amid a political mini-tempest over taking power away from the elected lawyer of the people.
Now, state House Speaker Craig DeRoche is attempting to do the same thing, only through the courts and against Attorney General Mike Cox, a fellow Republican. In a legal brief, DeRoche has asked the state Supreme Court to throw out the long-held legal principle that an attorney general's opinion has the effect of law unless challenged and overturned in court.
Such is the fate, evidently, of attorneys general who dare to issue opinions that certain legislators don't like. Power plays such as this actually underscore the need to retain the Attorney General's Office as an independent arbiter for state and local governments. Even DeRoche must see some value in the office, since he has asked for an attorney general's opinion himself on an unrelated issue.
Actually, attorney general's opinions, often issued on an advisory basis and sometimes suggesting a legal course to follow, keep a lot of things from becoming costly legal battles for the state or the many local governments that make inquiries. And when the opinions have been challenged in court, they have been upheld more than 90% of the time, which underscores the way the office, at least on opinions, hews to the law rather than to politics.
The people of Michigan elect an attorney general statewide to serve as their chief law enforcement officer, not as a lackey to the Legislature. The framers of the current state Constitution, which was enacted in 1963, even referred to the attorney general as the "watchdog" of state government, on behalf of taxpayers, consumers and public officials. DeRoche is wrong to suggest it should be any different.