Wednesday, August 30, 2006

Lawmakers reach deal to fix consequence of minimum wage raise

But the Merit Award will have to wait because Craig DeRoche is a real sweetheart and wants to make it ever so much better for everyone involved.



Yeah. I'll bet. Sure would love to know what is going on with this- maybe Skubick will have the goods for me.



LANSING, Mich. -- Salespeople, truckers and other workers will remain ineligible for overtime pay when the state's minimum wage rises in October after lawmakers brokered a deal Wednesday that includes a tax credit for low-income workers and a lower minimum wage for teenagers.



The Republican-controlled Legislature unanimously approved parts of the legislation after finishing negotiations with Democrats and Gov. Jennifer Granholm. The Senate also voted 36-2 to increase the Merit Award college scholarship in hopes of boosting momentum for a compromise on that front by year's end.



The deal mostly maintains the status quo by keeping various workers exempt from overtime, though home health care and day care workers would now become eligible _ a request by Democrats.



Both Democrats and Republicans praised the bill allowing low-income workers to qualify for a state earned-income tax credit on top of the existing federal earned-income tax credit. The credit would start at 10 percent in 2008 and rise to 20 percent in 2009.



Granholm and House Democratic Leader Dianne Byrum of Onondaga said the tax credit is a victory for working families, and Senate Minority Leader Bob Emerson called it a tool to fight poverty.



"Michigan is not a high tax state for everyone, but we do tax poor people too much," said Emerson, D-Flint. "This bill is a major step in making our tax structure less regressive."



OK, good deal, especially if we let people know it's available and help them apply for it.



Back to the scholarship-


While the Merit Award bill isn't directly part of the deal, the Senate's vote signals it could be an important topic later this year.



The Merit Award now gives up to $3,000 spread over the first two years of college to students who perform well on state standardized tests in high school and middle school.



Under the plan, students who do well on the tests would get $1,000 for each of their first two years of college or technical training, then $2,000 more if they finish the two years. Those whose test scores aren't good enough to earn the money up front could still get the full $4,000 if they finish two years of higher education.



DeRoche said the House plan "is to go further" and at the same time make the plan affordable and funded for the long term for the state.



"We have some things to contribute," DeRoche said. "I think the governor and the Senate welcome those ideas, and we'll work together this fall."


Forgive me for not trusting Mr. DeRoche (ha ha), but this is quite the 180 from his previous statements. I need someone to define "fall" and "year's end" for me. Are we talking after the election? Just like the work on the SBT? Wait until after people vote and then tell them what we are going to do? Or does this need to be done by a certain time after the Senate passes it?



Peter Luke seems to think it's going to be later rather than sooner.



House Republicans, who are exploring a different way to expand the scholarship, may not take up the issue until after the November election

.

"I think we need to be putting more money into scholarships," Sikkema said. "The House is looking at something more expansive. That's why this is really a work in progress."



Unless I hear otherwise, it's going on the DeVos list of Stupid Legislator Tricks.