Legislation watch
- Home
- Create an account
- Advanced searches
- Scorecards
- Links
- About
2007 House Bill 4451: Allow government borrowing to pay unfunded employee health care
Comments on this legislation Post new comment Text and Analysis Add to Watch List
Previous Next
- Introduced by Rep. Jim Marleau (R) on March 13, 2007, to allow local governments with an AA bond rating or above to borrow money to establish a fund to cover up to 75 percent of the current unfunded actuarial liabilities created by past employee contracts that promised government workers lifetime health care coverage, yet did not set sufficient money aside to cover this liability. A vote of the people would not be required to authorize the new debt, but it would be subject to a referendum if a certain number of voters signed petitions. The proceeds of the borrowed money would be invested in the same way as pension funds, in the hope that the investments would grow enough to cover the interest on the debt.. Local governments would not have to “reduce” future health care costs before taking on this new debt (which would require things like greater co-pays from government employees, or going to a defined contribution plan for new employees), but would only have to “mitigate” these costs. (“Mitigate” is not defined.) Local governments would be allowed assume debt for this purpose up to the maximum allowed by state law, which is based on the maximum amount of property taxes they can impose.
- Referred to the House Intergovernmental, Urban And Regional Affairs Committee on March 13, 2007.
- Reported in the House on October 10, 2007, with the recommendation that the bill be referred to the Committee on Retiree Health Care Reforms.
- Referred to the House Retiree Health Care Reforms Committee on October 10, 2007.
- Reported in the House on December 1, 2007, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
- Referred to the House Oversight And Investigations Committee on May 27, 2008.
- Referred to the House Intergovernmental, Urban And Regional Affairs Committee on March 13, 2007.
Most Recent Comments
1) Constitutional Violation by inform4 on October 11, 2007Here goes my Rep. Jim Marleau (R) Orion Twp. violating our rights again by cow-towing to Oakland County Executive Brooks Patterson's wish list.
HB 4451 still has in the language the ability to create a "Special Assessment" and "Ad valorem taxes" that can be applied to all of our property taxes.
Again, this demands a vote of the people under the Michigan State Constitutions 1978 Tax Limitation Amendment.
I guess Rep. Jim Marleau believes in thumbing his nose at his Oath of Office.
Reply
Again I state -- "The Headlee Tax Limitation Amendment cannot be revised or changed without a vote of the people, because .... it is an amendment in our Michigan State Constitution that was voted in BY THE PEOPLE. Therefore, HB 4451 is unconstitutional because it wrongfully, and unlawfully denies the people the right to vote, which is a mandate under the 1978 Headlee Tax Limitation Amendment."
Article IX, Sec. 26 of the Constitution of Michigan -- "The revenue limitation established in this section shall not apply to taxes imposed for the payment of principal and interest on bonds, approved by the voters and authorized under Section 15 of this Article, and loans to school districts authorized under Section 16 of this Article."
Article IX, Sec. 15 of the Constitution of Michigan -- The state may borrow money for specific purposes in amounts as may be provided by act of the legislature adopted by a vote of two-thirds of the members elected to and serving each house, and approved by a majority of the electors voting thereon at any general election. The question submitted to the electors shall state that amount to be borrowed, the specific purpose to which the funds shall be devoted, and the method of repayment."
Reply
Introduced in the House on March 13, 2007
Click here to view bill details.
Reply
View Full Conversation
