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GRANHOLM VETOES LIMITS ON CANVASSERS' POWER A bill that would have limited the powers of the Board of State Canvassers was vetoed Thursday by Governor Jennifer Granholm although existing case law means the board's authority remains restrained. The bill (HB 4275) would have restricted the board to examining only whether petition signatures submitted to place a proposal on the ballot are in the proper form and are sufficient to meet the minimum required number for ballot access. Court rulings effectively limit the board in the same manner, but supporters of the bill wanted such case law codified in statute to clarify the issue. In Proposal 4 of 2002 and Proposal 2 of 2004, the board in both cases rejected petitions submitted, citing constitutional issues in the wording of the proposal. In both cases, the Court of Appeals ordered the measures to the ballot over the board's objections, saying the board is limited only to determine whether enough signatures were submitted and were correct as to form. This week, the board rejected petitions submitted by the group Michigan Civil Rights Initiative, which wants to amend the state constitution to outlaw the use of race as a factor in university admissions and government hiring. The board cited allegations by the proposal's opponents of fraud in the petition gathering, accusing supporters of misrepresenting the proposal to voters to obtain signatures. The proposal's supporters are going to court to have their legislation placed on the ballot. Ms. Granholm in her veto message cited this week's action by the board and the allegations of fraud as a reason to oppose the legislation. "In light of these pending allegations, I am concerned that Enrolled House Bill 4275 could be interpreted to interfere with the ability of the Board of State Canvassers to canvass petitions, make official declarations on the sufficiency or insufficiency of petitions, hold hearings upon any complaints filed or conduct investigations of petitions," the governor wrote. "I also would not want my approval of the bill to be interpreted wrongly as a signal that allegations of fraud or misrepresentation related to the collection of petition signatures should be ignored." Rep. Leon Drolet (R-Clinton Township), a leader in the Michigan Civil Rights Initiative, said Ms. Granholm's blessing of the Board of State Canvassers' conduct is startling. "I think it is one of the craziest vetoes I've ever seen," he said. "She thinks that the way the board of canvassers works is good?" Mr. Drolet said the board's insistence on making decisions based on matters outside of its purview, even after court rulings, justifies legislation ending its powers. Although the constitution mandates the board's existence, it does not spell out its powers, he said. "I think it's becoming clear to people regardless of their political views that it's not working," he said. House Majority Floor Leader Rep. Chris Ward (R-Brighton) called the veto a "slap at the rights of Michigan voters to have their voices heard." SPECIAL AUGUST REVENUE ESTIMATING MEETING CALLED Improved state revenues have led state fiscal officials to schedule a special revenue estimating conference on August 17 to set a new final revenue number as lawmakers and the administration work on differences on how to resolve gaps in the 2005-06 budget that have produced proposals for controversial spending cuts and closure of some tax exemptions. Senate Fiscal Agency Director Gary Olson, who will chair the meeting, called the unusual third meeting on Thursday. That meeting will come the week before the Legislature is due to return to regular session to complete work on the 2005-06 budget. Workgroups between legislative officials and administration officials are underway to negotiate agreements on the budget as well as a business tax plan, a bonding proposal for economic development and the Merit Award proposal. Based on SFA estimates of June's revenues (See Gongwer Michigan Report, July 14, 2005) the state has seen revenues about $140 million more than the 2004-05 May revenue estimate had predicted. A message left with House Fiscal Agency Director Mitch Bean was not immediately returned, but two sources, speaking on condition of anonymity said the HFA estimates a smaller revenue increase. The meeting was scheduled for that date so officials will have July revenue figures available. While the fiscal year begins in October, revenues do not accrue to the new fiscal year until November. So when the August meeting is held, there will be just three months of revenue left to accrue to the 2004-05 fiscal year. According to the June revenues, the state had netted $12.2 billion, about 6.8 percent higher than the same time in 2003-04 fiscal year. June was the fifth month of the fiscal year where revenues had increased. The increased revenues could not only mean the current fiscal year could end with no need for further cuts, but also provide a financial boost for the upcoming 2005-06 fiscal year by providing lapsed funds. The improved revenues could also be a signal that the state's economy is starting to recover, which could translate into projections of further revenue increases for 2005-06. After hovering over 7 percent for months, the June unemployment rate was down to 6.8 percent, though that was caused partially by an overall decline in the workforce. Asked if their revenue figures concurred with the SFA findings, a spokesperson for the Treasury Department said officials had not yet compiled a revenue estimate but would have one completed before the August meeting. Because the August meeting will be a special meeting - revenue estimating meetings between the heads of the Senate and House fiscal agencies and the state treasurer are held in January and May, though there have been some special meetings - Mr. Olson said he is trying to keep the meeting relatively short and to the point. That may mean that the conference will not call the regular lineup of outside economists to review economic data, Mr. Olson said