Democrats

Fast and Loose in the Michigan Senate

Switch Subsidy Bill Passage Was A Senate Rules Violation

David Knezek ImageIn their slobbering rush to deliver tax breaks for one very specific data center last Thursday, the Michigan Senate violated its own rules regarding the consideration of appropriations bills. The Knezek amendment to SB 616, S-1:

Enacting section 1. The legislature shall annually appropriate sufficient funds from the state general fund to the state school aid fund created in section 11 of article IX of the state constitution of 1963 to fully compensate for any loss of revenue to the state school aid fund resulting from the enactment of this amendatory act.

converted SB 616 into an appropriations bill according to the definition in Michigan’s 1963 Constitution, in its Article IV, Section 31.

Michigan Senate Rule 3.602 requires:

“Any bill requiring an appropriation to carry out its intended purpose shall be considered an appropriation bill (See Constitution Article IV, Section 31). Appropriations bills, when reported back to the Senate favorably by a committee other than the Committee on Appropriations, shall, together with amendments proposed by that committee, be referred to the Committee on Appropriations for consideration.

Michael Kowall Image 2Senator Kowall moved a suspension of the Senate Rules after the noon recess on Thursday to bring nine bills on to Third Reading, including SB 616. From Senate Journal 106, page 1910: “be placed on their immediate passage at the head of the Third Reading of the Bills calendar.” was his motion. Senate Journal 106 indicates that his request was passed by a majority. This allowed final action and passage on SB 616 in the Senate that day.

Reading the record, it would appear that Senator Kowall was suspending Rule 3.207 to consider SB 616 and the eight other bills which had been placed on to ‘General Orders’ that morning for final passage under ‘Third Reading’, out of normal order. Senate Rule 3.207 requires a one day delay between the ‘Second Reading’ (‘General Orders’), and the ‘Third Reading’ (‘Final Action’). Suspending this prescribed one day delay is a common practice when time is of the essence.

Senator Kowall had already moved that morning, before recess, to place SB 616 and the same eight other bills then under ‘Committee Reports’ (‘First Reading’) under ‘General Orders’ (‘Second Reading’), so they could be on that day’s calendar. Also out of normal order, but again a common practice when time is of the essence.

But did either of Senator Kowall’s two suspension motions suspend Michigan Senate Rule 3.602?

Is Michigan Senate Rule 3.602 a fundamental rule as defined by Mason’s Manual of Legislative Procedure? Mason’s is the underlying body of rules adopted by the Michigan Senate when their own rules are mute on an issue.  Fundamental rules cannot be suspended according to Mason’s and all the other accepted bodies of parliamentary rules.

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Lie of the Month: “We’re talking about introducing an entirely new industry to Michigan”

Pandora's Box Has Been Opened

Pandoras Box Image 2Actually, no. There are at least 28 third party data centers already up and operating in Michigan. The House Fiscal Agency thinks there are 40, but didn’t specify them. None of these 28+ existing data centers required the tax breaks just reported out of the Michigan House Committee on Tax Policy to get up and running.  But Switch SuperNAP does? Why?

The promoters of Switch SuperNAP’s tax break package launched their campaign back in November with a heavy emphasis on the ‘new industry’ angle. This whopper seems to have been originated by Switch’s spokesman Roger Martin:

“It is a tough issue,” Switch spokesman Roger Martin said. “There’s no question about it. We’re talking about introducing an entirely new industry to Michigan, something that is the future of this country and of this world. It’s a good, vigorous debate.”

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Another Deceitful Michigan Tax Scam Exposed

Desperate Local Politicians Seek to Preserve Surreptitious Business Activities Tax

Tax Image 1Less noticed during this year’s roads tax furore, a roiling commercial property tax dispute has exposed a widespread, sub rosa business activities tax hidden in commercial real property taxes. A hidden tax you have been paying with every purchase at big box chain retailers who occupy stores they themselves own. Big box retailers have been exposing and successfully challenging this corrupt assessing practice through the Michigan Tax Tribunal and local units of government are howling over the loss of their ill gotten revenue.  Michael B. Shapiro of Honigman, Miller has been leading the charge against these bloated assessments.

Local units of government are demanding the Michigan Legislature overturn long standing real estate valuation principles and the Michigan court rulings which hold that assessed true cash value (i.e. fair market value) for tax purposes be based upon what a property would be sold for at arm’s length. They want true cash value to effectively incorporate the retail success of current owner-occupants. This artificially jacks up the property’s true cash value, its taxes, and the prices you pay at the store. Remember that businesses don’t pay taxes, customers of those businesses – in this case you – do.

Michigan’s nitwit media have deceitfully relabeled traditional true cash value assessment the ‘Dark Stores Loophole’. Local government organizations are screaming about lost revenues.  Even MoveOn.org is right in there with a petition to support their favorite spenders.  This is a devious effort to stampede our state’s legislators into codifying creative assessment methods solely intended to extract surreptitious revenues from shoppers. A follow on to the more blatant ‘Amazon Tax’ campaign of 2014. The State of Michigan got into your pocket last year, now it is your local government’s turn.

The term ‘Dark Stores Loophole’ was created to suggest that vacant big box stores have lower, fire sale values when compared to occupied stores. True enough, but we are discussing assessments used to determine real estate, i.e. property, taxes. Not taxes on business activity. The two creative assessment methods used most often to loot shoppers are ‘construction cost‘ and ‘imputed lease‘ calculations. Each might be valid under some very limited circumstances, but both are entirely invalid when assessing big box retailers.

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The City Of Perpetual Gifting

Detroit Public Schools continues the fiscal drain on Michigan Taxpayers.

mich-holeThe gravity exerted by SE Michigan is nothing short of incredible.

Bailouts of Arts, Pensions, Water systems, and of course the cherry on the sundae, school debt.  From today’s Cap-Con, Summarized here:

“Various bailout plans are currently under discussion in Lansing as an alternative to entering federal bankruptcy court. One plan pitched by Gov. Rick Snyder comes with a $710 million price tag.”

Don’t make any plans with that mattress money folks.

 

 

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Switch SuperNAP Michigan Data Center: Chaos in the Offing

A Few Details Michigan's Legislators Might Want to Consider

Steelcase Pyramid Image 3
Michigan’s nitwit media have been gushing over the announcement last Thursday that Switch, LLC will purchase the erstwhile Steelcase Pyramid southwest of Grand Rapids and convert the site into one of their state-of-the-art SuperNAP cloud computing data centers. The ‘information economy’ has been touted as Michigan’s future by no less than Michael Dell. He was in Detroit to address the Economic Club after his company purchased EMC Corporation, another major data center operator with three facilities in Michigan, in a blow out $ 67 billion buyout. Switch SuperNAP promoters, notably The Right Place, Incorporated, are touting 1,000 new jobs in Gaines Township, but this should be regarded wth the same skepticism as any other MEDC clone employment prediction. No one has said anything about financing, but there is good reason to believe that Michigan will be asked to ‘participate’ here as well.

Steelcase vacated their distinctive Corporate Development Center in 2012 and sold it to to Norman Properties in May. Norman Properties, in turn, has agreed to sell this property to Switch LLC, pending the approval of State tax breaks. Those tax breaks have been introduced in the Michigan House by Representatives VerHeulin, Yonker, and Schor. Identical tax break legislation has been introduced in the Senate by Senators Hildenbrand, Schuitmaker, and MacGregor. These legislators are targeting quick passage in the legislative session which convenes after their Thanksgiving break. They might want to consider a few details before they lunge further forward.

This being RightMI, you might think this post is about those tax breaks. You would be wrong. There is actually a critical flaw in this project which will injure Consumer’s Energy electricity customers all across West Michigan. A couple of other issues exist as well, but they pale in comparison to the electricity consumption of this project.  Those tax breaks are a lost cause in American politics today – not even worth protesting.

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You DON’T say…

Apparently, the idea of picking up his wife and three children from the county morgue is weighing a little too heavily on the mind of one “Relentlessly Positive” Governor.

According to this mornings Detroit Free Press, Gov. Snyder has reversed course from his earlier ill-conceived decision to allow Syrian “refugees” into Michigan following the Islamic Terrorists attacks in Paris that have claimed at least 129 lives as of the latest count.

Gov. Snyder is quoted as stating, “Michigan is a welcoming state and we are proud of our rich history of immigration. But our first priority is protecting the safety of our residents.”

Better late than never. But in this case, no damage has been done through Gov. Snyder’s actions.

Naturally, this has the proponents of the original scheme up in arms over a “perceived” overreaction.

From the same Freep article, Maged Moughni, an Arab-American advocate said, “It’s doing what ISIS wants. … He’s just basically buying into what ISIS wants: Muslims against the West … Gov. Snyder is buying into the rhetoric.”

Again, the families of at least 129 victims of Islamic Terrorism have a different take on that.

Further down, Sean de Four, vice president of child and family services with Lutheran Social Services of Michigan had this to say,

“I certainly understand and appreciate Gov. Snyder’s desire to be cautious and put the safety of Michiganders first. But the State Department already uses an overabundance of caution in its screening of refugees before they gained entry into the United States. In fact, refugees spend an average of five to seven years in refugee camps being screened and background checks before access to any country.”

If I were Mr. de Four, I’d reexamine the validity of his argument.

Most people know that I don’t agree, with oh about 99%, of what Gov. Snyder rams through, mostly due to the fact that he doesn’t adhere to anything even remotely conservative when he does so.

This time around, and perhaps the very likely possibility that he might appear on a future casualty list himself directly due to the actions of those he blindly lets into our state, he finally gets things right for a change.

Let’s see how long that lasts.

ISIL Flag

Hopefully not coming to Michigan anytime soon!

 

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Three Cheers For The B Team

House Democrat turns on the heat.

Steudle-GranholmKirk Steudle was appointed long before Rick Snyder was the new sheriff.

Jennifer Granholm appointed Steudle to the Michigan Department of Transportation post in 2006. He did such a bang up job leading to our current road conditions across the state, that no local communities have had to pursue their own millages for road fixes, and the trunklines, bridges and arteries are in top notch shape.  In fact, we have been able to lower taxes, return money to taxpayers and by-golly, put shock absorber companies at risk due to lack of business.

Now, [SARC OFF] a Democrat legislator is doing the job that any one of dozens of Republicans should have done LONG before ever asking taxpayers to bend over last May.  From the Lansing State Journal:

In a news release late Wednesday, State Rep. Scott Dianda, D-Calumet, a former MDOT employee and state employee union official, said he’d introduced a bipartisan resolution citing numerous issues — from idle railcars that cost millions of dollars to state auditors’ repeated warnings about weak oversight of MDOT’s warranty program — that he says show Steudle is “unfit to lead the department.”

Huh, I wonder where we have seen that before?

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Get a load of the latest Michigan republican party spin

Does anyone even proof this before it gets posted?!?

As if they were not already utterly clueless regarding what they allegedly stand for (Hint: I’ve included a small sampling below of what they have obviously forgotten/willfully chosen to ignore (source)):

I BELIEVE free enterprise and encouraging individual initiative have brought this nation opportunity, economic growth and prosperity.

I BELIEVE government must practice fiscal responsibility and allow individuals to keep more of the money they earn.

You need to see what came in my e-mail this morning on how the “conservative” republicans are trying to cover up the massive stench from their latest batch of stink-burger bills pertaining their road funding “solution” by releasing this nifty little informational graphic so that we can all drink the kool aid all look the other way and pretend that there isn’t a dime’s worth of difference between Michigan republicans and the democrats.

{No, you will not be able to un-see the horror, er, I mean, stop laughing at the patent hypocrisy below the fold}

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Arlan Meekhof needs to go and pound sand!

I cannot help but wonder if Sen Meekhof was ever given a copy of the MIGOP "Principles"?

“The senate passed a road funding plan this summer.  The senate plan prioritizes state spending, generates new revenue for a long-term solution and returns tax dollars to hardworking taxpayers. ” – Senate Majority Leader Arlan Meekhof (October 20, 2015).

Is it just me, or does that highlighted part of his quote contradict itself?

I’m going to keep this one short today.

{Click below to read more}

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