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House Committee Reports Income Tax Repeal: On February 15, the House Tax Policy Committee heard testimony on and reported out House Bill 4001 (Chatfield). HB 4001 would rollback Michigan's individual interest rate from 4.25% to 3.9% as of January 1, 2018, and each year thereafter would lower the rate by 0.1% until the rate reaches zero. The bill was reported on a largely party-line vote with all Democrats on the committee voting no and two Republican representatives, Maturen and Howrylak, abstaining. The MCCA opposes HB 4001 without a plan for full replacement revenue. We encourage you to contact your representatives as soon as possible since the bill could come up for action on the House floor as soon as Tuesday.

 

Budget Hearings Begin: On February 16, the House Appropriations Subcommittee on Community Colleges commenced hearings on the Governor's FY 2017-18 budget recommendation. The first hearing just included time for the State Budget Office and House Fiscal Agency to explain the recommendation; the MCCA will have time for comment at follow up hearing this coming Thursday at 10:30am. Meanwhile, the Senate Subcommittee will hold its first hearing this coming Wednesday, February 22, at 10:00am. The recommendation for community colleges and full details are available on the MCCA website.

 

Common Core Revisited: The House Committee on Michigan Competitiveness considered House Bill 4192 (Glenn), which would terminate Michigan's participation as a state that follows the Common Core State Standards. This issue was hotly debated back in 2013, but ultimately the Legislature decided at that time to allow the state to continue moving forward. The committee did not vote on HB 4192 this week, but the debate will very likely continue.

 

January Revenues Up: Michigan's General Fund and School Aid Fund taxes, along with net lottery revenue, totaled $2.4 billion in January 2017, up 4.4% from January 2016 and about $21.4 million above the Senate Fiscal Agency's expectations for the month based on consensus revenue estimates adopted in January. The SFA's monthly revenue report indicated that above-forecast collections under the sales tax accounted for $47.6 million of the amount by which the revenue was above forecast but were partially offset by less-than-expected use tax, real estate transfer tax and Corporate Income Tax collections. Collections to the General Fund were $100,000 above expectations and School Aid Fund collections were $15.9 million above forecasts.

 
 

 

HELPFUL LINKS

Michigan Legislature’s website (bill tracking and committee meetings)

Michigan House of Representatives

Michigan Senate

Community College Legal Authority (Michigan Constitution)

Community College Act of 1966

 

For the map of the community college districts, click here.

 

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