Friday, July 27, 2012

Zoo Accreditation and Curator, DB/DC Hybrid for County Officials, 12 Days to Election!

This week we had a full Board of Commissioners meeting.

We lead off with the Potter Park Zoo Curator resolution. Last week, the Zoo Association (AZA) accreditation folks were here and evaluated our zoo. I was one of the 3 or so Commissioners to meet with them to discuss the workings of the zoo. They had a lot of praise for the improvements that we made over the last five years, since the millage was implemented. They did have some concerns, though, over the governance structure. The CEO of the Zoo reports to the Parks Director and the Zoo Board, which reports to the Parks Board, which reports to the County Services Committee, which passes resolutions to the full Board of Commissioners. She really doesn’t have the authority to do much, and the timing of all of these steps can lead to delays of necessary projects. She also can’t hire or fire and doesn’t have discipline authority. The AZA accreditation folks said that this is a concern, and I agreed that the process is not ideal. The County Commission needs to re-evaluate this, and will do that over the next month. As such, the resolution for the Curator position was tabled so that language can be cleared up before the next full Board meeting.

We next discussed creation of a Defined Benefit/Defined Contribution Hybrid for future county commissioners and elected officials of Ingham County. Commissioner Grebner argued that these resolutions are the tip of the iceberg and that we have to look at this for employees, but that this is something we can and should do for our elected officials. He said that this resolution doesn’t have any direct connection to any union contract. It is only following the Board direction to move employees to a Hybrid system. He said specifically that moving county commissioners to this system does not bind us with other contracts. Next we will look at managerial and confidential employees, and we will continue to negotiate with employees. But, ultimately, he said that it is necessary to reform our pension so it is sustainable for the future.

Commissioner Tennis argued that the recommended multiplier in the resolution for the Defined Benefit component, which is 1.0, needs to be increased to 1.5 in order for him to support the resolution. He said that if an employer offers pension for anyone, there needs to be a level of security for the employee (person receiving pension). The 1.0 doesn’t meet the necessary security level. He said that he is okay with the hybrid plan, but it must be balanced so that pensioner actually has the ability to retire. To do this, there needs to be balance on the DB side (traditional pension) for this to happen because there are no guarantees for security in the DC plan (401(k)). If the economy is doing well, the employee has more money in DC. But things don’t always go well, as has been shown by the current recession. He said he is concerned that going down this road with a 1.0 multiplier puts more pressure on the DC portion to have higher earnings to allow someone to retire. Tennis argued that the only way to have a more \balanced plan is with a 1.5 multiplier. Or a reduction on the DC side if necessary. He then moved an amendment to increase the 1.0 multiplier for the defined benefit to a 1.5.

Commissioner Nolan agreed with Tennis. She said that she received a pension with a 1.5 multiplier as a teacher. She said her not that much, and she has a masters and 36 years of teaching experience. And, she reminded Commissioners that this is now being taxed due to the pension tax. She said that a 1.5 multiplier is not extravagant. Commissioner DeLeon said that the 1% multiplier puts people in poverty and that is not our intent. She also said that she is against the resolution in its entirety because it is being done before the employees. She said that although there is no direct link, perceptions become reality and this could be a tactic to influence the negotiation process. She said that there is no reason to do this now, as we can do it any time this year.

Commissioner Grebner opposed the Tennis amendment, and said that the amendment assumes that the DC is 0 and disappears. He said that won’t be the case, and the compensation factor needs to include the DC component which is substantial. The DB only concerns half of the pension, and the Hybrid has two components – one with risk for the employees (DC) and one that is risk free (DB). He said that the DC is far from an illusion and can be quite generous (and will be), and that it is a mistake to make a hybrid plan that looks like the current DB but adds more to it. This saddles successors with a big problem. He said that the multiplier needs to take account both sides, and shouldn’t be too generous.

Commissioner Tennis rebutted that current school employees have the hybrid with a 1.5 DB and up to 2% DC. He said that ours would be similar to school employees and not unique. He said that he won’t assume that DC is at 0, but also can’t assume that it will be there at all. There is an uncertainty and a risk, and the employees hold the risk in a DC while the employer holds the risk in the DB. Employers are feeling it now because of bad economy because the employer has to pay the pension of the retirees. He said that the Hybrid is a good idea in terms of spreading risk, and needs to be spread fair. Commissioner Dougan the reminded commissioners that this only applies to our County Commission successors and that we are part time. He said that there won’t be long-timer Commissioner again, as evidenced by the turnover that we have had recently (which averages about 4 Commissioners per term). This Hybrid would be unique to part time employees. Currently, the DB for Commissioners is 2.0 until old enough for social security, then becomes 1.7 at social security age. He said he is not in favor of the amendment because it doesn’t make a big impact on part time employees. Commissioner Nolan then made the point that a 1.5 would attract more employees and a stronger applicant pool.

The amendment passed on an 8-7 vote. A majority of Commissioners attending are all that is needed to pass an amendment, and Commissioner Vickers was absent.

Commissioner Celentino then offered an amendment adding language saying that this resolution will not set a precedent for other collective bargaining negotiations currently ongoing. Commissioner Holman argued that the amendment didn’t do anything. The amendment passed 14-1, with Commissioner Holman opposing it.

Grebner then moved to change it to 1.25% instead of 1.5%. He argued that setting an absolute floor that we couldn’t possibly negotiate in a contact and would be creating a problem. Before really getting into the discussion and debate on that point, Commissioner Bahar-Cook moved to table the resolution. The motion passed on an 8-7 vote. So, I expect that we will pick up where we left off at the next full County Commission meeting in August!

On the campaign front, we continue to receive incredible response at doors. Election day is 12 days away. My team and I will continue to push full forward until all votes are cast on August 7th. If you would like to volunteer – knock doors, data entry, phone calls, etc – or if you want to make a last-minute contribution to help the effort, you can go to www.andyschor.com or www.facebook.com/andyschor. And if you live in Lansing or Lansing Township, please remember to vote Andy Schor for State Representative a week from Tuesday on August 7th! Thanks everyone for all your support and encouragement!



Saturday, July 21, 2012

Co-Location of Health Department and CMH, Health Care Millage, Campaign Update

We had another busy week this week on the County Commission.

Both the County Services and Human Services committees took up the resolution to allow for co-location of the Community Mental Health and Ingham County Health Department. Co-locating a Health Department clinic at the CMH facility will allow mentally ill patients to get the care that they need. These folks do not come to the Health Department for treatment, but are are at CMH. This effort can make a real difference in the lives of these patients. This is a complicated effort because it is moving people around from one clinic to another. CMH will be providing the office space at $45,000 per year. The UAW testified that the contract was violated because this would create a new job without informing the UAW (as specified in the contract) but that this is overall a good idea and that they support it. They requested that this effort be reviewed by the Human Services committee in 6 months. The Michigan Nurses Association president testified that collaboration with positions makes them comfortable. Nurse Practitioners were concerned about having to deal with situations that are out of their expertise, but the collaboration involved makes them more comfortable. I asked a variety of questions. In Human Services, I asked where the money is coming from - if it was coming from the Health Department Health Department budget or from our contingency fund. I was told that the money will be generated immediately by the federal draw down of dollars from the CMH population, and that the revenue will be generated as the expenses incur. The budget is actually conservative. This information was added to the resolution in County Services. The resolution adds two new positions (doctor and nurse practitioner), and moves one position from another clinic to this one. I asked where the employee is coming from. The answer is that they place people according to their skill set and where the greatest need is. And they look at the impact on the clinic where the change is made. They said that they will move employees to minimize the impact, and agreed to a six month review. We passed the resolution unanimously in both committees.

In the Human Services Committee, we again discussed the Ingham Health Plan (IHP) proposal to place a millage on the ballot. The IHP and the Health Department told us that there are 8,000 – 10,000 people without insurance (even presuming Medicaid is expanded as allowed by the Affordable Care Act). Those under 138% of the poverty level will be covered by the Act. Those that that are between 138% - 250% of the poverty level will be able to purchase insurance from the Health Exchange (which is a menu of insurance options) and will be subsidized based on their income. We were told that many will not have enough money to pay for the premiums on the exchange and if they are paying a certain amount out of pocket then they will be able to opt-out according to the law. 51% of the people that are expected to opt-out and are single, and 49% of the opt-outs have families. $31,000 is the median income (250% of poverty median). Additionally, undocumented and legal immigrants living here are ineligble and go to emergency room. All of these populations will increase taxpayer costs for uncompensated care. For those up to 150% of poverty, 84% of the insurance is covered as subsidies on the exchange (for premiums only, not out of pocket expenses). For those between 200% – 250%, the exchange subsidizes 73% of the cost. This would mean an average out of pocket expense of $328. The Governor and Legislature may expand Medicaid, but also may refuse the federal dollars as other states have done. With Disproportionate Care Funding (DSH) dropping from the federal government, the Ingham Health Plan will not have the funding to provide care to these individuals that make too much for the Affordable Care Act but don't have insurance and don't make enough to be able to pay for the insurance on the Exchange. The IHP is requesting a millage of .61 mills to be placed on the November ballot. This would mean taxes of $30.50 for a house with value of $100,000 (taxable value of $50,000). Commissioner Tennis pointed out that this will keep people out of the Emergency Room and save taxpayers money and will lower health care costs across the board.

August 28th is deadline for a November millage to be placed on the ballot and the Human Services Committee (then the County Commission) will make the decision at the end of August.

I am undecided on whether to vote for this or not. I asked that this not be voted on at the meeting because whether or not the state takes the expanded Medicaid is important, and that decision is not yet made. I don't want to put this on the ballot now and make it okay for the Governor to refuse this federal money. Back-filling this with a local tax before the Governor decides sends a signal that we will pay for it and he can reject the federal money. Commissioner Vickers said that he understands the need, but doesn't think the people can afford this millage. Commissioner McGrain said that health care will be more affordable for everyone, and we don’t want people to opt-out which will result in us paying for their health care.

Campaign Update: We are now 17 days away from the Democratic Primary. I hope all Lansing and Lansing Township residents will go vote on August 7th. I am getting tremendous response at the doors and in various forums with voters. We have plenty of opportunities to volunteer if you are still interested. We are knocking doors every day, making calls, doing data entry, putting up yard signs, and other important things for the campaign. If you want to volunteer, or want a yard sign, or want to contribute to help pay for the costs associated with the campaign, you can email me at andy.schor@gmail.com or you can go to www.andyschor.com. Thanks to everyone for the tremendous support, and I look forward to election day!

Saturday, July 7, 2012

Guest Blog: LEAP, and a Schor for State Rep Campaign Update

Now that it is July, the Ingham County Board of Commissioners has gone to its summer schedule. For three months - July, August, September - the Commission meets the last two weeks of the month. As such, we did not meet this last week. I asked the folks over at LEAP to provide a guest blog, and they graciously accepted. I have had the privilege to work with Bob Trezise, Jeff Smith, and Ken Szymusiak. LEAP has done amazing things, and I am excited for all their work on behalf of Lansing and the region.

First, before the guest blog, a Schor for State Representative campaign update...we have about 30 days left until the election. Voting has already begun (absentee ballots) and things are going great! We have been able to talk to voters in a variety of settings, and I am confident that we will be able to accomplish all of our goals in the campaign plan. Then, it's up to the voters. There are still opportunities every day to knock doors, make phone calls, help in the campaign office, contribute, and volunteer in any other way. Go to www.andyschor.com to sign up, or email me at andy.schor@gmail.com I appreciate everyone's support. We are in the home stretch!

Now, for the LEAP guest blog...
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LEAP – New Economy Division

2012 is off to an incredibly busy start for the Lansing Economic Area Partnership (LEAP). The organization has undertaken a complete restructuring over the last 6 months and an incredible amount has been accomplished. One of the major points of development has revolved around the development of LEAP’s two core missions: business development and new economy development (entrepreneurship, placemaking, and talent).

As Co-Directors of LEAP’s New Economy Division, we want to highlight the current status of LEAP’s activities with regard to creating and expanding the culture of entrepreneurship and set the stage for what is still to come.
Our goal is to build a platform for the growth of new startup businesses within Greater Lansing, and provide an environment and culture that encourages more of our citizens to become their own CEO, and leverage the existing talents in the region. Since the start of 2012 we have been positioning a number of great things under LEAP for us to provide specific services these include:

• Management of the Lansing Regional SmartZone (including management of the Technology Innovation Center and the Hatch student incubator in conjunction with the City of East Lansing and MSU eNet),
• Development of a rapid prototyping program utilizing our 3D printer,
• Management of the State of Michigan Business Accelerator Fund, and
• Continued growth of the incredible events such the Next Bright Idea Business Plan Competition and Lansing Startup Weekend.

Even with all of these actives, it is a tall order to provide “hands on” assistance to all of the different entrepreneurs in our community. However, what many don’t realize is that our region is home to scores of service providers and resources that can be absolutely critical to the success of a would be entrepreneur. Often times, whether it is from an incorrect referral, or another anomaly, our startup companies are not always finding access to the help they need. Clearly this is a critical component to our region becoming a hotbed of entrepreneurial growth.

This is where LEAP will be playing a critical role in helping to unify our entrepreneurial service providers and create a means of communication so that our companies can traverse the galaxy of funding opportunities, programs, and available spaces to ultimately create a lasting and sustainable business in our community that will create jobs and wealth for our citizens.

To accomplish this task we hosted, for the first time this month, our Regional Innovation Network, where representatives from all of our local service agencies met to discuss how we can work together to ensure proper referrals and support one another with the business clients we are working with. These providers included business support service, private and public business incubator programs, our local higher educational institutions, and micro finance providers. At this meeting we unveiled one of our key components to our plan which is a software system that will allow our participating service providers and business incubators to upload information about their clients. This will provide a more cohesive network of services and will allow LEAP and other participants to view and collect the necessary info about these businesses so that we can ensure that no business is ever left behind, and that our referrals and requests for assistance never go unanswered. This is going to be a tremendous step forward in the creation of Greater Lansing’s base for startup activity. Needless to say everyone is excited about this program and we are looking forward to rolling out the program over the course of the summer. There are many ways that entrepreneurs find their way to a particular support provider in our region and certainly LEAP will not always be the first contact, but our goal is to provide a “front door “ to all of the other providers so that we can ensure that every client has 100% of the relevant resource available to them.

This is just one of many exciting developments we are undertaking and we look forward to a Summer and Fall filled with exciting announcements as we build our programming to support our incredible business community.

We want to thank Andy for letting us participate in his blog and we appreciate the support that he and the rest of the Ingham County Board of Commissioners have provided to LEAP this year and in the past.

2012 is a LEAP year and we are looking forward to many accomplishments!
Please contact us if we can ever be of assistance at ken@purelansing.com or jeff@purelansing.com .

Also make sure to visit www.purelansing.com to learn about the New Economy Division as well as all of the other activities LEAP is undertaking.

Thanks,

Ken Szymusiak & Jeff Smith
Co-Directors, New Economy Division