Business groups push for state reforms
Business groups push for state reforms
by Mark Sanchez | Business Review West Michigan
September 08, 2009
As lawmakers grapple to craft a budget before the new fiscal year that starts in less than three weeks, business advocates across Michigan are pressing their case for structural reforms to state government.
A coalition of 11 business associations representing a cross section of economic sectors this week publicly joined the budget fray and are pushing reforms as the best way to solve the state’s perpetual budget woes.
“Now more than ever, Michigan’s business community is united in our call for serious, significant, structural reform of state government to pull Michigan out of its chronic fiscal desperation,” the coalitions wrote in a memo to Gov. Jennifer Granholm and the Legislature.
“Simply passing another budget that patches together what is left of Michigan’s finances for a year or two is failure. Michigan’s business leaders insist that Michigan’s elected leaders go beyond the bare minimum of their constitutional responsibilities,” the memo states. “For this year’s budget process to be considered anything other than a failure, state leaders must enact structural reform that revolutionizes the way the state performs its core functions. We realize that none of these decisions are easy, but they have been put off for far too long.”
The business groups offered a list of 16 potential reforms for consideration, ranging from pooling all health care plans for public employees — as House Speaker Andy Dillon has proposed — to privatizing prison services, reducing the number of school districts across the state, and eliminating the Michigan State Police road patrol and having county sheriff’s departments to do the job.
The business groups are not united on all 16 points, though they are committed to sticking together to push for structural reforms in state government, said Andy Johnston, director of legislative affairs for the Grand Rapids Area Chamber of Commerce.
“We’re going to be unified this time in calling for reform and demanding it,” Johnston said. “We need to focus on how the state does business and not just respond to cuts in revenue.”
Lawmakers and the governor are working to plug a $2.8 billion hole in the FY 2010 budget.
Lawmakers who join the push for reforms will get the backing of the business community, said Jared Rodriguez, senior vice president of government affairs at the Grand Rapids Area Chamber of Commerce.
“The business community is cognizant of the fact that reform is never easy,” Rodriguez said. “We stand committed in supporting those Legislators that will provide the leadership to properly solve this ongoing budget crisis by enacting long-term reform to revitalize Michigan government.”
The business groups announced their push this week at press conferences in Grand Rapids, Lansing and Detroit. The effort comes as a new organization consisting of corporate CEOs around the state, the Michigan Business Leadership Council, prepares to go public this week.
Formed by Detroit Renaissance, the Business Leadership Council wants to “help transform our state’s economy, culture and reputation.
“The Council focuses on a limited agenda of strategic initiatives working in collaboration with other business organizations,” according to its Web site.
Here is a list of suggested state reforms for consideration from the coalition of business groups:
• Pool all health care plans for public employees
• Establish an Office of Medicaid Inspector General to specifically investigate Medicaid fraud
• Reform Public Act 312 to change arbitration standards for police and fire
• Reform Urban Cooperation Act and two other similar acts to eliminate requirement that when a service merger occurs, the higher wage and benefits must be paid
• Require all new teachers hired by a date certain in the future to have defined contribution, rather than defined benefit, retirement plans
• Move all administrative functions of local schools to the ISD, leaving local school boards with only academic and athletic functions
• Privatize food service, mental health services, and transportation in prisons
• Increase minimum retirement/years of service for all pubic employees to be eligible for retirement benefits
• Pool all scholarships, including Michigan Promise, tuition grants, and competitive scholarships into one need-based pool.
• Increase state employee and retiree health care premium co-pays
• Exempt government construction from prevailing wage statutes
• Eliminate road patrol function of Michigan State Police and let county sheriffs take over that function
• Require that school districts competitively bid all non-core functions, including transportation, food service, and custodial work
• Reduce the number of school districts
• Reduce mandatory minimum sentences and increase parole rates for all crimes
• Make Michigan Promise scholarships a forgivable loan, rather than a scholarship, requiring participants to work in Michigan for two years following completion of their degree
Reform coalition
Business organizations joining the call for reform include:
Grand Rapids Area Chamber of Commerce
Michigan Chamber of Commerce
Michigan Association of Realtors
Small Business Association of Michigan
National Federation of Independent Businesses
Detroit Renaissance
Michigan Manufacturers Association
Michigan Association of Home Builders
Associated Builders and Contractors of Michigan
Michigan Bankers Association
Michigan Retailers Association
Michigan Restaurant Association
Facebook feed