3 part deal saves state from shutdown

So here are some of the details of the 3 part deal that ended the 4 hour Michigan shutdown:

The income tax:  First, we have a brand new income tax rate of 4.35%.  This is an increase from 3.9%.  It was passed in the House, 57-52, with Republicans Ed Gaffney and Chris Ward crossing over to vote with Democrats.  Democrats Marty Griffin, Mike Simpson, and Lisa Wojno voted no. 

In the Senate, the income tax was passed 19-19, with Lt Gov John Cherry casting the tie-breaking vote to make it 20-19.  Cross-over votes were Republicans Patty Birkholz, Tom George, Ron Jelinek, and Gerald Van Woerkom, who voted YES.  Democrats Glenn Anderson and Dennis Olshove voted NO. 

Under this legislation, the income tax rolls back to 3.95% in 2011, and then to 3.9% in 2015.  The income tax is expected to raise $765 million for the state in 2008.

The sales/service tax:  The second piece is the bill that expands the 6% sales tax to a number of services, listed in another post.  This will take effect December 1. 

In the House, this passed 56-53.  Only the Democrats voted in favor of this.  Two Democrats voted against it:  Marc Corriveau and Kate Ebli. 

In the Senate, Democrat Glenn Anderson voted NO.  Republicans Valde Garcia and Ron Jelinek voted YES, bringing the total to 19-19.  John Cherry was once again the tie-breaker.

The services tax is expected to produce $613.8 million in 2008, and $751 million per year afterwards.

MESSA

"The savings will be there it could be in the hundreds of thousands of dollars,"

Note that Kuipers has been a manager at Hollandia Gardens since 1983, which means that he is way more qualified than the House and Senate Fiscal Agencies to determine the fiscal impact of this legislation.

(snark)

Sub only MIRS News reports that

"MESSA needed to be part of the final budget solution to give the caucus political cover for allowing a vote on an estimated $1.3 billion in tax hikes."

and

The Senate Republicans simply had to have the MESSA reforms to provide political cover for allowing the tax hikes to go forward.

Yep.  Political cover.

In the House, this reform passed 56-53, with 3 Republicans voting NO:  Jack Brandenburg, Mike Nofs, and Tory Rocca.  3 Democrats crossed over to vote YES:  Paul Condino, Virgil Smith, and Coleman Young Jr.

In the Senate, this reform passed 21-17, with Republicans Bruce Patterson, Roger Kahn and Ron Jelinek voting NO, and Democrats Mickey Switalski, Mark Schauer and Buzz Thomas voting YES. 

Schauer's vote is surprising to me, considering he is running against Walberg next year.  But, what do I know? 

List of services + expected revenues coming up next.

Sources:  sub only Gongwer, sub only MIRS News, and Detroit News