September 2007 Field Report -
Southeast Michigan
By: Tony Daunt – Southeast Michigan Field Director
House Party
Michigan’s constitution requires the state legislature to produce a balanced budget by October 1st of each year in order to fund any and all state government services, from agricultural subsidies to zebra mussel containment and everything in between. If a budget is not in place by the start of the new fiscal year, there is no constitutional authority for the executive branch (i.e.; the governor and the various state departments she controls) to spend the money they need to continue operating. This would essentially shut down state government, sparing only what the Granholm administration deemed “essential services,” such as prisons and other activities vital to public safety.
With that doomsday scenario looming, the Michigan House of Representatives, led by Speaker Andy Dillon (D-Redford Twp.), convened for a rare Friday session with the intention of passing a balanced budget for Fiscal Year 2008. As I have discussed in previous columns, the first nine months of the legislative calendar have been focused almost entirely on the state’s budget and taxes. To their credit, the legislature has had some success in coming up with a solution to the current fiscal year’s budget shortfall and reforming the state’s business tax structure. However, as we anticipated from the start, the real battle has been how to best address the nearly $1.8 billion (yup, with a “B”) deficit for FY 2008, which begins Monday, October 1, 2007. Just as a college student waits until the night before an exam to begin studying, the legislature has waited to get serious about solving the state’s fiscal woes. About the only thing that was certain heading into the weekend was that the governor and a large number of her fellow Democrats believed increasing revenues was the only way to solve the problem and the Republicans and a handful of vulnerable Democrats were unwillingly to vote for any tax increase unless some very significant, structural reforms were passed and put in place first.
Speaker Dillon had vowed earlier in the week that the House would “stay until the job is done” even if that meant an all-night session that stretched into Saturday. And as the House began their day at 2:00pm Friday afternoon, I doubt that they ever envisioned spending the next 79 hours at the State Capitol with only a few hours allotted to them outside the House chambers to sleep, eat and shower. But that is exactly what happened, as the House did not formally adjourn until around 9:00pm Monday night. Also spending 79 hours at the State Capitol was yours truly along with the rest of the Michigan Association of REALTORS® public policy staff, and a small contingent of Lansing’s lobbyist community. We didn’t all spend the entire time up there but you should be happy to know that we rotated shifts and MAR had someone there, protecting REALTOR® interests, from start to finish. Unfortunately, not much was accomplished during the marathon session aside from honing our ability to gather and disseminate the various rumors that floated out of the intense negotiations that were taking place throughout the weekend. Speaker Dillon, Senate Majority Leader Mike Bishop (R-Rochester Hills), the governor and a handful of other legislative leaders continue to negotiate, even as I write this article. The philosophical differences on how to handle the deficit are still making a bipartisan solution difficult and that may be the case all the way up to the final hours of FY 2007.
I can tell you this much. It is an almost 100 percent certainty that Michigan residents will see an increase in their income tax and maybe even an expansion of the sales tax to include certain “luxury” services. Fortunately, we have been assured by leaders of both parties that real estate related services ARE NOT going to be included in that expansion. We will continue to lobby for a reformation of the way government spends the tax money we already send them before agreeing with the contention that an increase in taxes is the only way to solve the shortfall. If the legislature fails to enact significant, long-term, and stabilizing reforms, the current budget crisis and partisan wrangling will seem like a slumber party in years to come.
Field Staff Office Visits
We are lucky to have such a capable staff of lobbyists and advocates working on our behalf in Lansing. As your area MAR representative, it is my responsibility to work with these individuals to keep you informed so that you are aware of what your state legislature is doing for (or, in some cases, to) you.
Having said all that, the best way to share the latest news with the largest number of area REALTORS® is to attend your weekly sales meetings and give it to you in person. I am willing and able to travel to any office, at any time, on any day of the week. If you are a broker or an office manager, please take this offer to heart and call me up. My number is: 517-812-4134. If you’re a sales agent, mention this to your broker and get them to bring me in.
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September 2007
Field Report
• Field Report
Tony represents:
• Ann Arbor Area
• Dearborn
• Detroit
• CBOR
• Down River
• Grosse Pointe
• Lenawee County
• Livingston County
• MCAR
• Monroe County
• North Oakland County
• Western Wayne Oakland County
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