Michigan Votes Forum

Introduced in the Senate on March 6, 2003, the Senate version of the Fiscal Year (FY) 2003-2004 Department of Career Development and the Michigan Strategic Fund budgets. (Note: Gov. Jennifer Granholm’s proposed budget for this department is Senate Bill 309 .) This appropriates $566.4 million in adjusted gross spending (funded from all sources, including special state restricted fund and federal pass-through dollars, minus interdepartmental transfers), compared to $605.9 million, which was the FY 2002-2003 amount enrolled in 2002, excluding any supplemental appropriations, line-item vetoes, or later cuts. Of this, $55.3 million will come from the General Fund (funded by actual state tax revenues), compared to the FY 2002-2003 amount enrolled in 2002 of $64.5 million. Among other changes, the budget reduces Michigan Economic Development Corporation (MEDC) funding by $4 million more than the $36 million cut the governor proposed. Much more information on Michigan’s budget is available at Hot Topics: Michigan’s Budget Challenge at www.mackinac.org/4964

The vote was 32 in favor, 6 opposed and 0 not voting

(Senate Roll Call 104 at Senate Journal 43)

Click here to view bill details.

Senator Schauer, under his constitutional right of protest (Art. 4, Sec. 18), protested against the passage of Senate Bill No. 285 and moved that the statements he made during the discussion of the amendments offered by Senators Prusi and Sikkema be printed as his reasons for voting "no." The motion prevailed.
Senator Schauer's first statement is as follows:
This amendment is ultimately rearranging the deck chairs on the Titanic. There is still a $4 million hole in this budget. To try to make a sincere argument that we are funding job creation services and economic development job training grants that I wholeheartedly support, gutting the ability for the MEDC is a joke. I think we should have serious discussion about how we can have a viable economic development mechanism and strategy in this state. We ought to do that. This still is unilateral disarmament, and I certainly cannot support an amendment that on the surface appears to suggest that we are supporting economic development, while in reality, we are gutting the department that we rely upon.

Senator Schauer's second statement is as follows:
The previous speaker is right. Tough times do require tough decisions, but we also have to be clear about our
priorities. I rise in strong support of the Prusi Amendment, and I don't want you to take my word for it necessarily. I want to cite an April 17th article from Business Direct Weekly, and I am sure some of my colleagues'in particular those from west Michigan reads. They state that given the current economic climate, now is absolutely not the time to rearrange how Michigan does business. They are citing directly the proposed Republican cuts to the Michigan Economic Development Corporation. Also some of my colleagues were with me in Battle Creek on Monday at a hearing of the Joint Select Committee on Business Competitiveness. The testimony there was clear, and I want to cite some of that testimony. I know, again,
some of my colleagues—particularly from west Michigan—are familiar with the W.E. Upjohn Institute for employment research. Two of their economists spoke to us about Michigan's business climate. They stated that their remarks were
based on research conducted with Michigan State University, the University of Michigan, and Wayne State University for a book they are publishing. They say our research suggest that this state has fundamentally sound economic development policies that need modest reforms and enhancements, not repeals and cuts. They further state Michigan's tax structure for business is surprisingly competitive. Michigan's Michigan economic development agency, the Michigan Economic Development Corporation, does an excellent job of providing needed economic development
services to existing businesses. Another person who testified is one of the leading economic developers in this state, James F. Hettinger, president and CEO of Battle Creek Unlimited. He said, "We believe that it would be a serious mistake to eliminate or even reduce funding for the Michigan Economic Development Corporation. Incapacitation of this organization at this time could harbor grim economic consequences as employers like Pfizer are mulling over their deployments in Michigan. Several other world-class automotive manufacturers are considering Michigan among other states and provinces for additional
production capacity. Unilateral disarmament is never a good idea in the competitive Midwest.
Finally, colleagues, the Battle Creek Inquirer, Gannett newspaper, stated in coverage of the hearing on Monday of the Joint Select Committee on Business Competitiveness their headline was "Businesses Don't Eliminate NEDC." They
stated that the message from businesses was clear. Don't get rid of or diminish the Michigan Economic Development Corporation. These proposed cuts, which this amendment fixes, would be pennywise and pound foolish. I urge a "yes" vote on the amendment.

Senator Scott's first statement is as follows:
I have this amendment because what it does is it says that Focus: HOPE cannot be funded next year. This is a training program that retrains people. It is an organization that started after the riots to help all people, no matter what race, nationality, or origin you are. Focus: HOPE is an outstanding program. They have had this program now for 35 years. The late Father Cunningham and Eleanor Josaitis had a vision, and we are going to tell people a year ahead of time that we are not going to fund you. I think that it's ludicrous to do this to such a great organization. I ask my colleagues
to support this amendment.

Senator Scott's second statement is as follows:
As I said in committee, if you have them on notice, you have said this to them verbally. In fact, the heads of that organization were at the meeting. However, were not allowed to speak at that particular meeting. So if you have them
on notice, why do we have to put this in the budget? I don’t think this is necessary.
Senator Scott’s third statement is as follows:
What this amendment does is restores $250,000 to Focus: HOPE. Let me tell you about Focus Hope. I would like to have both my colleagues on both sides of the aisle"I'd love to have your attention on this. This is a very important
issue and I am very proud to have Focus Hope in my district. Let me just read to you their mission statement. This organization started 35 years ago and their mission statement says “Recognizing the dignity and beauty of every
person, we pledge intelligent and practical action to overcome racism, poverty and injustice. And to build a metropolitan community where all people may live in freedom, harmony, trust and affection. Black and white, yellow, brown and red from Detroit and its suburbs of every economic status, national origin and religious persuasion we join
in his convent,” and this was adopted March 8, 1968. They also say, together, we will make his work live on. That was regarding Father Cunningham who had the vision along with Ms. Josaitis. While the nation was divided over civil rights, courageous people stood up for what was right. Father Cunningham, Eleanor Josaitis, and a small band of determined people started a movement. They pledged, as I stated intelligence, practical action to fight for racism, poverty, and justice, and Focus Hope was born. They started a food program that gives infants a nutritious start in life and helps build Senior Citizen survival. Each month more than 43,000 mothers, children under the age of 6, and senior citizens living on a meager income that gets help through Focus Hope, the supplemental program that they have. They established an education and training program that gives people access to the financial main stream. More that 3,000 individuals have graduated from Focus Hope center of opportunity obtaining jobs in manufacturing, engineering, and information technology fields. Its' foisted understanding of different cultures through community arts programs, through exhibits, music, dance, photography, more than 11,000 people have gained new insight on different cultures. There is so much that Focus Hopes does. We need to reinstate the dollars. I wish we could reinstate the whole $4 million, because it is certainly needed. They have the greatest training programs. They allow people to have marketable skills, providing use and other job skills. These job skills are in demand. These programs have, especially been proven
successful in providing opportunities for minorities and economically disadvantaged individuals to move from poverty to the economic mainstream. Since first opening its’ Machinist Training Institute in 1981, the programs have been industry focused and developed in partnership with many of the corporations. Today, the programs have evolved to include the Center for Advanced Technologies where students can earn degrees through Michigan universities in manufacturing engineering and technology, the Information Technologies Centers offering industries certificates, and a pioneering High School program accelerating career development options through dual enrollment. Another key element is the availability of the FAST TRACK program. The FAST TRACK program was started back in the late "80s, when I was Mayor of Highland Park. We were the past through for the FAST TRACK
program. It helped so many young people. There is a First Step program for many entering students. These provide a model for Michigan's FAST TRACK and their Step Up Program. Throughout the history of training and education programs at Focus Hope, the stare of Michigan has been and indispensable partner. Since 1997, the state of Michigan
funding has leveraged other sources of support. The CAT alone has drawn a federal investment in Michigan of over $150 million.
So, I ask my colleagues to support this amendment, it is so vitally needed. They have outstanding people on their advisory board. Let me just say the manufacturing is an important and enduring component in Michigan’s economy. There are close to 1 million "978 thousand workers employed in manufacturing. This is 21 percent of all employment in the state.
Looking to the future, manufacturing industries are projected to generate more than 200 thousand jobs over the next decade in order to replace workers retiring from the manufacturing labor force. An analysis of the skilled production occupations suggests that labor supply is lagging demand. The largest
supply/demand gap appears in the high growth machinist and related occupations. This is divesting that machinist
programs that we need so dearly in this state—I am sure that we all want to lift people up to change their status from poverty to having a good productive life. I am sure we all want that for everyone. So, I ask you to please vote for this amendment. This is a great amendment.

Senator Leland's statement is as follows:
I just want to let you know that although the previous speaker covered most of it, this institution has been around for 35 years, and as you know, it started after the riots in 1967. It has been a premiere civil rights institution that has done wonderful things that the previous speaker mentioned. This institution has been tracked and followed by every
United States President since it began back in 1968. Every President has walked through Focus: HOPE with defense money, contracts, and all kinds of other funding things to keep this institution alive and well. They would not have given this institution all of the things that they did had it not had a proven track record. I would hope that we would
restore the quarter of a million dollars that was taken out in the previous amendment. They do wonderful things. It is a great institution. They have a proven record, and again, lets' restore the quarter of a million dollars so they can continue on with their mission.

This is objectionable. It is nothing more than white coat welfare, and a misuse of tax payer money.