State Budget Negotiations Underway

Now that the much-debated income tax and sales tax on services are in place, the Legislature and governor are quickly working to finalize the FY 2008 budget by the October 31st deadline. Because the Transportation budget is based off gas tax and vehicle registration revenues, there is little discretion in

Local Preference Policy Update

MITA has been consistently opposed to cities applying local hiring preferences and will continue to strongly oppose those types of local ordinances. The following is an update on recent local preference issues in Detroit and Lansing. City of Detroit On November 1, 2007, executive order 2007-1, “Utilization of Detroit Residents

MITA Seeking Clarification of New Sales Tax

Creating a new sales tax on services after midnight has its drawbacks. In the dead of night last weekend, legislators passed a plan to put a sales tax on some services. Included in the new tax were various “consulting” services and “landscaping” services. At the same time, policymakers exempted construction

Re-allocation of Operating Engineers Fringe Benefits

Most of you have received a notice from the Operating Engineers Local 324 relative to allocating three cents ($.03) per hour from the Labor Management Committee to the Retiree Benefit Fund. This re-allocation has been approved by the Trustees and you will be issued new report forms for the work

State Government Open for Business

State government is open for business after lawmakers gave Governor Granholm what she wanted this morning to call off a shutdown. After the Senate early this morning passed a sales tax expansion, Granholm ordered state employees to work, ending a brief halt in services that began at 12:01 a.m. today.

MITA Lobbying Effort Notches $372 Million Victory

Details Emerge on What is a “Taxable Service” The construction industry dodged a major bullet this week during the state’s budget negotiations. All the way up to the 11th hour, the Legislature and governor were discussing adding a sales tax to a range of services. The industry that could have

Instructions for a State Government Shutdown

MITA informed contractors in a bulletin last week about the possibility of a state government shutdown. MITA continues to hear rumors that legislators will avoid the situation by passing a temporary continuation budget. Nonetheless, MITA believes it is important that contractors begin preparing for the possibility of a shutdown. Earlier

National Legislative Update: Approved Highway Trust Fund Fix, House Approves Aviation Bill

Senate Finance Committee Approves Highway Trust Fund Fix The Senate Finance committee on September 21 unanimously approved “The American Infrastructure Investment and Improvement Act,” legislation that will generate new revenues for the Highway Trust Fund (HTF) Highway Account to meet SAFETEA-LU investment commitments. The measure would also raise revenues for

MITA Fights for Infrastructure in State Budget Mess

As a possible state government shutdown looms, MITA lobbyists have been busy working the corridors of the state capitol. From raids on road dollars, to gas tax tweaks, new taxes on services, ground water discharge fees or possible government shutdown, the mutations are endless as the budget crisis negotiations reach

MITA Prepares for Possibility of Government Shutdown

MITA staff have been a part of the state legislative budget wranglings reported in the news in recent days. Just yesterday, the State Senate passed a one-month extension on the state budget in order to avoid a shutdown. The governor has threatened to veto the bill, saying that she will

Legislative Update: Clean Water, Transportation Budget and Chunks of Crumbling Concrete

State Revolving Fund Projects Bring Work for Underground As the state’s fiscal year comes to an end in three weeks, the state will close the books on an expected $550 million in loans for fiscal year 2007, compared to awards averaging only $160 million per year over the last three

MITA Successful in Negotiating OCP Alternative

After several months of negotiations MITA has been successful in gaining the approvals of the Michigan Department of Transportation (MDOT), Department of Management and Budget, and Attorney General on a proposal that will allow prime contractors an alternative to the Owners and Contractors Protective (OCP) liability policy MDOT currently requires.