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PUBLIC POLICY

Policy Portal

Issue#99
February 11, 2005

STATE NEWS

FEDERAL NEWS

MNA Action Network
The place where you can speak directly to elected officials about the issues affecting the nonprofit sector

STATE NEWS

Granholm Releases FY06 $41.2 Billion Budget

On Thursday Governor Granholm released her budget proposal for 2005-2006 that responded to a $773 million gap in the general fund, which is reduced by program cuts (-$389.6), fee increases (+$50.2), closing tax expenditure items (+$64), new Medicaid provider taxes (+$75), funding shifts (+$52.5), and a shift in general funds over from the school aid fund (+$145).

pdf icon View the proposed budget by department

The budget proposal was released alongside proposals to correct the FY05 budget gap of $386 million. If the proposals to correct the current budget are accepted, the changes would carry over into FY06. The legislature’s two appropriations committees could vote Tuesday on Executive Order 2005-3, which at $219.8 million is the largest of the Governor’s proposed FY05 budget cuts.

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Standing House and Senate Committee Meeting Times

House Committees

(Meeting locations may change and meetings may be cancelled. Contact the committee clerk or visit the Michigan Legislature Committee Meetings Web site for the latest information and the meeting agenda.)

Tuesdays

  • Regulatory Reform (Rocca), 308 HOB, 9:00 a.m.
  • Senior Health, Security and Retirement (Vander Veen), 327 HOB, 9:00 a.m.
  • Transportation (LaJoy), 307 HOB, 9:00 a.m.
  • Commerce (Huizenga), 519 HOB, 10:30 a.m.
  • Government Operations (Drolet), 326 HOB, 10:30 a.m.
  • Health Policy (Gaffney), 521 HOB, 10:30 a.m.
  • Agriculture (Nitz), 307 HOB, 2:00 p.m. or after session
  • Employment Relations, Training and Safety (Gosselin), 308 HOB, 2:00 p.m. or after session
  • Higher Education and Career Preparation (Wenke), 326 HOB, 2:00 p.m. or after session
  • Veterans Affairs and Homeland Security (Garfield), 327 HOB, 2:00 p.m. or after session

Wednesdays

  • Energy and Technology (Nofs), 519 HOB, 9:00 a.m.
  • House Oversight, Elections and Ethics (Ward), 326 HOB, 9:00 a.m.
  • Tax Policy (Sheen), 521 HOB, 9:00 a.m.
  • Banking and Financial Services (Robertson), 327 HOB, 10:30 a.m.
  • Education (Palmer), 307 HOB, 10:30 a.m.
  • Judiciary (Van Regenmorter), 308 HOB, 10:30 a.m.
  • Family and Children Services (Stahl), 326 HOB, 2:00 p.m. or after session
  • Local Government and Urban Policy (Stakoe), 307 HOB, 2:00 p.m. or after session

Thursdays

  • Conservation, Forestry and Outdoor Recreation (Casperson), 327 HOB, 9:00 a.m.
  • Insurance (Hune), 521 HOB, 9:00 a.m.
  • Natural Resources, Great Lakes, Land Use and Environment (Palsrok), 519 HOB, 9:00 a.m.

Call of the Chair

Appropriations (Hummel), 351 CB

Senate Committees

(Meeting locations may change and meetings may be cancelled. Contact the committee clerk or visit the Michigan Legislature Committee Meetings Web site for the latest information and the meeting agenda.)

Tuesdays

  • Judiciary (Cropsey), 1005 FB, 1:00 p.m.
  • Commerce and Labor (Allen), 100 FB, 3:00 p.m.
  • Government Operations (Sikkema), 106 CB, 1:00 p.m.
  • Natural Resources/Environmental Affairs (Birkholz), 110 FB, 3:00 p.m.
  • Transportation (Gilbert), 705 FB, 1:00 p.m.

Wednesdays

  • Finance (Cassis), 305 FB, 1:00 p.m.
  • Gaming and Casino Oversight (Allen), 210 FB, 1:00 p.m.
  • Health Policy (Hammerstrom), 8 CB, 1:00 p.m.
  • Senior Citizens and Veterans Affairs (Toy), 100 FB, 1:00 p.m.
  • Economic Development, Small Business, and Regulatory Reform (Sanborn), 310 CB, 3:00 p.m.
  • Technology and Energy (Patterson), 210 FB, 3:00 p.m.

Thursdays

  • Families and Human Services (Hardiman), 915 FB, 8:30 a.m.
  • Agriculture, Forestry, and Tourism (Van Woerkom), 110 FB, 9:00 a.m.
  • Banking and Financial Institutions (Bishop), 605 FB, 1:00 p.m.
  • Local, Urban, and State Affairs (Toy), 520 FB, 1:00 p.m.
  • Education (Kuipers), 1020 FB, 2:00 p.m.

Call of the Chair
Appropriations (Johnson), 324 CB

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Nonprofit Advocacy: A Michigan Primer Now Available

Nonprofit Advocacy: A Michigan Primer , the latest edition of MNA’s Public Policy handbook, is now available. The handbook answers frequently asked questions related to nonprofit advocacy, including:

  • What are basic advocacy tactics?
  • How can a board and staff be persuaded to become advocates?
  • What are the state and federal lobbying rules for charities?
  • What should public charities be aware of during an election year?
  • How should grantees approach funders to support advocacy?
  • Who can fund nonprofit public policy activities?

The handbook is available at a discount for MNA members; $10.00 for MNA members, $15.00 for non-members. To order the handbook or for further information, call MNA today at (517) 492-2400.

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State of the State Transcript

A transcript of Governor Granholm’s State of the State Address, “Jobs Today - Jobs Tomorrow,” is available on the Governor’s Web site.

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Alliance for Justice Sponsors Event Addressing Rules of Nonprofit Advocacy

The Alliance for Justice, in conjunction with the Michigan League for Human Services, is offering nonprofits two opportunities to hear Shannon Garrett, Law Fellow for the Nonprofit Advocacy Project at the Alliance for Justice, speak on the rules governing nonprofits’ participation in the policy process. “Worry Free Advocacy: Dos and Don’ts for Nonprofits” will be held on Tuesday, March 15, 2005 in Detroit and on Wednesday, March 16, 2005 in Lansing. For registration and further information, call the Alliance for Justice at (866) 675-6229 or visit their Web site.

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Symposium on Working with State Agencies to Increase Funding

A one-day symposium will be held on Monday, March 14, 2005 from 8:00am - 5:30pm at the Lansing Center, Lansing, Michigan. The symposium, “Bridging the Gap…Building New Partnerships,” will address faith-based and community-based organizations wishing to learn how to work with state agencies to maximize funding opportunities. Keynote speakers are: Governor Granholm; Michael Brennan, President & CEO, United Way Community Services, Detroit; Jim Towey, Director, White House Office of Faith-Based and Community Initiatives. Registrants will also be able to attend two of ten available workshops. Program and registration information are available at www.michigan.org/ocfbi

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Public Policy Forum: Michigan’s Ongoing Fiscal Crisis

The Michigan League for Human Services is sponsoring a Public Policy Forum titled Michigan’s Ongoing Fiscal Crisis: Six Years and Counting on Friday, February 18, 2005, at the Lansing Center from 10:00 a.m. to Noon. The forum’s speakers will be State Budget Director Mary Lannoye, Former Michigan Speaker of the House Paul Hillegonds, and Former State Representative and Chair of the House Taxation Committee H. Lynn Jondahl. For further information, call the Michigan League for Human Services at (517) 371-4546 or visit their Web site.

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Governor Granholm’s Appointments

Since January 28 th, Governor Granholm has made the following appointments:

State Land Bank Fast Track Authority

  • Semone M. James of Lansing was appointed executive director.

Commission on Spanish Speaking Affairs

  • Benjamin D. Inquilla of Plainwell was appointed to represent the general public.

Board of Chiropractic

  • Solomon L. Cogan, D.C. of Bloomfield Hills was appointed to represent chiropractors.

Pharmacy and Therapeutics Committee

  • Jonathan M. Arend of Owosso was appointed to represent pharmacists.
  • Ronald H. Bradley, M.D., Ph.D. of Williamston was appointed to represent physicians.
  • Khan J. Nedd, M.D. of Grand Rapids was appointed to represent physicians.
  • Paul M. Dake, M.D. of Brighton was appointed to represent physicians.

Environmental Science Board

  • Constance M. Boris, Ph.D. of Grosse Pointe Farms was appointed to represent individuals with expertise in environmental engineering.
  • Norbert E. Kaminski, Ph.D. of Okemos was appointed to represent individuals with expertise in environmental toxicology.
  • David T. Long, Ph.D. of East Lansing was reappointed to represent individuals with expertise in geology.
  • Joan Bray Rose, Ph.D. of Williamston was appointed to represent individuals with expertise in microbiology.

For information on Governor Granholm’s appointments, visit Governor Granholm’s Appointments Web site.

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Legislative Schedule

Michigan ’s House and Senate are currently in session. The House meets Tuesdays and Wednesdays at 1:00 p.m. and on Thursdays at 10:30 a.m. The Senate meets Tuesdays, Wednesdays, and Thursdays at 10:00 a.m. The Senate’s session schedule through June 2005. The House’s session schedule through June 2005.

For information on committee meetings, visit the Michigan Legislature Web site.

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FEDERAL NEWS

Reminder: Panel on the Nonprofit Sector Seeks Comments on Recommendations

The Panel on the Nonprofit Sector, which was formed by Independent Sector with the encouragement of the Senate Finance Committee, released on January 24 th a list of Work Group Recommendations, the result of seven weeks of discussions among the Panel’s five work groups and its expert advisory group. The recommendations have not yet been reviewed by the Panel on the Nonprofit Sector. They will be part of the deliberations by the Panel as it prepares its interim report. The Panel encourages the nonprofit community to comment on the recommendations by February 18 th.

For the complete list of recommendations, visit the Panel on the Nonprofit Sector’s Web site.

Source: INDEPENDENT SECTOR www.independentsector.org.

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CARE Act Reintroduced in Senate

On January 24, 2004, the CARE Act was reintroduced in S.6, which includes welfare reform and family tax relief measures, but it is expected to be considered separately from such items.

MNA has supported and currently supports two tax incentives in the CARE Act to encourage charitable donations :

  • A deduction for a portion of charitable contributions made by individuals who do not itemize deductions (single filers would be allowed to deduct total contributions over $250 up to a ceiling of $500; for joint filers, the amounts are $500 up to a ceiling of $1,000). This provision would sunset in two years.
  • Tax-free distributions to charities from individual retirement accounts (donors aged 59 ½ and over may rollover amounts from a traditional or Roth IRA to create a life income gift to a charity; donors aged 70 ½ and over may make direct cash contributions to a charity).

For further information on the CARE Act 2005, visit the Thomas Web site.

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Joint Tax Committee Report Recommends Changes for Nonprofits

On January 27 th the Joint Committee on Taxation released a report requested by the Senate Finance Committee recommending, among other tax law changes, revenue-raising reforms for tax-exempt organizations. The report, like the Panel on the Nonprofit Sector’s draft of Work Group Recommendations, is part of the Finance Committee’s effort to reform the nonprofit sector. The report’s recommendations include and address:

  • Require five-year review of the exempt status of public charities and private foundations and an annual notice by organizations not required to file information returns.
  • Impose termination tax on conversions of assets of charities.
  • Tax involvement by exempt organizations in tax-shelter transactions.
  • Reform intermediate sanctions and extend certain reforms to private foundations.
  • Increase the amount of excise taxes imposed on public charities, social welfare organizations, and private foundations.
  • Modify charitable deduction for contributions of conservation and façade easements.
  • Limit charitable deduction for contributions of clothing and household items.
  • Reform rules for charitable contributions of property.
  • Require public disclosure of Form 990-T and related certification requirements.
  • Expand the base of the tax on private foundation net investment income.
  • Limit tax-exempt status of fraternal beneficiary societies that provide commercial-type insurance.
  • Establish additional exemption standards for credit counseling organizations.

The report concludes with the estimated revenue effects of its proposals. The Finance Committee is accepting comments on the recommendations until March 1, 2005.

The full text of the report is available on the Joint Finance Committee’s Web site. A summary of the report prepared by the committee’s democratic staff is available on Independent Sector’s Web site.

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Congressional Committee Assignments

Information on House committees for the 109 th Congress can be found on the House Committee Offices Web site. Information on Senate committees can be found on the Senate Committees Web site.

Rep. Bart Stupak (D – 1 st District)

  • Committee on Energy and Commerce
  • Subcommittee on Environment and Hazardous Materials
  • Subcommittee on Oversight and Investigations (Ranking Member)
  • Subcommittee on Telecommunications and the Internet

Rep. Pete Hoekstra (R – 2 nd District)

Select Committee on Intelligence (Chair)

  • Subcommittee on Terrorism/HUMINT, Analysis, and Counterintelligence (Chair)
  • Subcommittee on Technical and Tactical Intelligence (Chair)
  • Subcommittee on Intelligence Policy (Chair)
  • Subcommittee on Oversight (Chair)

Committee on Transportation and Infrastructure

  • Subcommittee on Coast Guard and Maritime Transportation
  • Subcommittee on Highways, Transit, and Pipelines

Rep. Vernon Ehlers (R – 3 rd District)

Committee on Science

  • Subcommittee on Environment, Technology, and Standards (Chair)

Committee on Transportation and Infrastructure

  • Subcommittee on Aviation
  • Subcommittee on Water Resources and Environment

Committee on Education and the Workforce

  • Subcommittee on 21 st Century Competitiveness
  • Subcommittee on Education Reform

Committee on House Administration

Rep. Dave Camp (R – 4 th District)

Ways and Means Committee

  • Subcommittee on Health
  • Subcommittee on Human Resources

Select Revenue Measures Subcommittee (Chair)

Rep. Dale Kildee (D – 5 th District)

Committee on Education and the Workforce

  • Subcommittee on 21 st Century Competitiveness
  • Subcommittee on Employer-Employee Relations

Committee on Resources

  • Subcommittee on National Parks and Public Lands
  • Subcommittee on Forests and Forest Health

Rep. Fred Upton (R – 6 th District)

Committee on Energy and Commerce

  • Subcommittee on Telecommunications and the Internet (Chair)
  • Subcommittee on Health
  • Subcommittee on Commerce, Trade, and Consumer Protection

Committee on Education and the Workforce

  • Subcommittee on Education Reform
  • Subcommittee on 21 st Century Competitiveness

Rep. Joe Schwarz (R – 7 th District)

Committee on Agriculture

Committee on Armed Services

  • Subcommittee on Readiness
  • Subcommittee on Strategic Forces  

Rep. Mike Rogers (R – 8 th District)

Committee on Energy and Commerce

  • Subcommittee on Energy and Air Quality
  • Subcommittee on Environment and Hazardous Materials
  • Subcommittee on Health
  • Subcommittee on Commerce, Trade, and Consumer Protection

Select Committee on Intelligence

Rep. Joe Knollenberg (R – 9 th District)

Committee on Appropriations

Rep. Candice Miller (R – 10 th District)

Committee on House Administration

Committee on Armed Services

  • Subcommittee on Readiness

Committee on Government Reform

  • Subcommittee on Energy Policy, Natural Resources, and Regulatory Affairs
  • Subcommittee on Government Efficiency and Financial Management
  • Subcommittee on Technology, Information Policy, Intergovernmental Relations, and the Census

Rep. Thaddeus McCotter (R – 11 th District)

House Budget Committee

Rep. Sandy Levin (D – 12 th District)

Committee on Ways and Means

  • Subcommittee on Trade
  • Subcommittee on Social Security

Rep. Carolyn Kilpatrick (D – 13 th District)

Committee on Appropriations

Rep. John Conyers Jr. (D – 14 th District)

Committee on the Judiciary (Ranking Member)

  • Subcommittee on Courts, the Internet, and Intellectual Property
  • Subcommittee on Immigration, Border Security, and Claims
  • Subcommittee on the Constitution

Rep. John Dingell (D – 15 th District)

Committee on Energy and Commerce

  • Subcommittee on Commerce, Trade, and Consumer Protection (Ex Officio)
  • Subcommittee on Energy and Air Quality (Ex Officio)
  • Subcommittee on Environment and Hazardous Materials (Ex Officio)
  • Subcommittee on Health (Ex Officio)
  • Subcommittee on Oversight and Investigations (Ex Officio)
  • Subcommittee on Telecommunications and the Internet (Ex Officio)

Sen. Carl Levin (D)

Select Committee on Intelligence

  • Committee on Armed Services (Ranking Member)
  • Committee on Homeland Security and Governmental Affairs
  • Committee on Small Business and Entrepreneurship

Sen. Debbie Stabenow (D)

  • Committee on Agriculture, Nutrition, and Forestry
  • Committee on Banking, Housing, and Urban Affairs
  • Committee on the Budget

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Proposed Budget Would Cut Programs That Subsidize Charities

The proposed $2.6 trillion federal budget for 2006 that President Bush released on February 7 th would cut at least 1 percent from the budgets of every program (except those related to defense), reducing some charities’ budgets and their ability to aid their clients. Changes to the oversight of charitable organizations were also proposed; one would penalize charities that fail to enforce conservation easements to encourage charities to monitor and enforce conservation restrictions for which donors claimed charitable deductions.

It is uncertain how many of the President’s changes Congress will approve. While President Bush proposed cutting 65 programs last year, Congress only cut five.

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Nonprofit Times’ 2005 Salary Survey

The Nonprofit Times recently released its 2005 Salary Survey, outlining the average salaries of nonprofit organizations’ employees by different job titles, regions, organizations’ budgets, and employees’ sex. General staff salaries are anticipated to rise 3.11 percent in 2005. The nine executive positions surveyed showed six titles with salary increases, with the average executive director’s salary increasing 2.2 percent to $92,411.

Male ED’s salaries still outpace their female counterparts at an average of $109,516 to $79,992, respectively. This discrepancy is partly attributed to the concentration of male executive directors at nonprofits with high revenues; nearly 15 percent of male EDs were leading organizations with $25 million or more in revenue, while only 5 percent of female EDs held such positions.

The survey is available on the Nonprofit Times Web site.

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Congressional Schedule

The House and Senate are currently in session. The Senate meets Tuesdays, Wednesdays, and Thursdays at 9:30 a.m. The House meets Tuesdays, Wednesdays, and Thursdays at 10:00 a.m. The House and Senate will adjourn the week of February 21 st and reconvene on February 28 th. For the complete schedules, visit the Senate’s Tentative 2005 Legislative Schedule and the House Schedule.

House Committee Offices Web site. Senate Committees Web site

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