by Gongwer News Service
February 28, 2009

Call it Michigan’s Washington Week.

State officials looked to the nation’s capital in ways rarely seen, focusing on the state budget, the survival of the auto industry and the first release of the billions of dollars in federal stimulus funds.

Governor Jennifer Granholm had the leading role, beginning with the National Governors Association meeting and its emphasis on infrastructure, health care and the $787 billion in federal stimulus funds.

And, in conjunction with about a half dozen appearances on national television news programs, she waged a spirited defense of the auto industry’s restructuring in the face of criticism by two Republican colleagues who favor bankruptcy as a way to force deeper changes. “Have you read their plans? I bet you haven’t,” she declared at one point.

That flare-up and the attention given to some Republican governors who are rejecting portions of the stimulus money, because of the changes it would require them to make in their states’ laws, were somewhat unusual for meetings that publicly bring the governors together to lobby for common goals in Washington.

Ms. Granholm was among those who declared Michigan would be “first in line” to claim any funds left on the table by the dissenting states, which mostly object to the boost in unemployment benefits and expansion of the benefit program to those who did not previously qualify, such as part-time workers.

The first stimulus funds were released to the states on Wednesday, some $15 billion for Medicaid programs. Michigan is getting about $464 million, the first installment of about $2 billion over the next 27 months for Medicaid.

Some of the stimulus money, which in total will be about $8 billion over the two years of the program, will be used to help balance this year’s budget. Ms. Granholm, who expects to use $313 million for that purpose, plans to submit supplemental budget proposals to the legislature in early March to allocate those funds.

She’ll also be following up on use of transportation funds and proposing a new funding system. The state is getting $700 million for roads, bridges and other transportation purposes — some $100 million less than the list of priority projects the Department of Transportation and regional agencies say will be ready to go this construction season.

One other potential note of concern that came out of the NGA: the stimulus package, as big as it is and as much as it adds to the federal deficit, may not be enough to bring the economy back. NGA Chair Ed Rendell acknowledged that, but said governors first must make sure the current package is put to use quickly.

Separately, Michigan’s four legislative leaders left for Washington the day after the governor’s trip concluded to meet with the Obama administration and congressional members to lobby for aid to the auto supplier industry.

It was a bipartisan display by House Speaker Andy Dillon (D-Redford Township), Senate Majority Leader Mike Bishop (R-Rochester), House Minority Leader Kevin Elsenheimer (R-Bellaire) and Senate Minority Leader Mike Prusi (D-Ishpeming).

The leaders said Michigan has unique issues, but many states could also be affected if the supplier companies succumb to the economic pressures facing them.

Those companies are low on cash, and when a recovery does begin, those companies will have trouble getting sufficient funds to ramp up their own operations, Mr. Dillon said.

“Michigan has some very unique needs and an effort has to be made to address those issues,” Mr. Bishop said before the trip.

Also in DC was Lt. Governor John Cherry for a meeting of the eight-state Great Lakes Commission, which welcomed the news of $475 million in the Obama budget for restoration efforts of the lakes.

Commission members said the new funds, if approved by Congress, would complement efforts in many of the states to address problems in the basin such as contamination from runoff, invasive species and cleanup of existing pollution.

Lisa Jackson, director of the U.S. Environmental Protection Agency, also told the commission the Obama administration will reconsider a discharge permit system for oceangoing ships issued in December, saying it does not begin to address the problems.

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