EFFICIENCY PANEL BEGINS LOOK AT PRELIMINARY RECOMMENDATIONS

Members of the Legislative Commission on Government Efficiency began looking at some preliminary recommendations it would make to the Legislature - some of which the Legislature has started looking at on its own, such as eliminating the Michigan Promise Grant - and considering some of the nuances of how it presents those recommendations.

Commission members discussed Friday whether the principles and recommendations they adopt necessarily would mean state government needs to be made smaller, whether the recommendations need to be drafted in a way to minimize subjecting them to political posturing, and in how much detail the proposals should go in helping set direction.

The commission essentially concluded state government has no choice but to make major structural changes since even an economic recovery would not cure the overriding structural issues the state confronts.

A number of the preliminary recommendations the commission examined are already included in some legislative action.   For example, the Senate is expected next week to vote on proposals to eliminate the Michigan Promise Grant.   The Senate is also looking at proposals to cut back on spending on the Healthy Michigan Fund and on non-Medicaid community health programs.

While some commission members were concerned that the proposals come across as neutral, there also seemed to be a sense that whatever they proposed would become part of the political process.

"Anything will be used" by different legislators, Senate Fiscal Agency director Gary Olson.

He also said it was his distinct impression the commission was created specifically because lawmakers had so much difficulty in 2007 making tough budget and tax decisions.   By bringing in an outside group, it could provide lawmakers with some guidance on how to make decisions, he said.

Among the preliminary proposals:

• Reallocating $300 million in School Aid Fund spending to community colleges to save general fund money.

• Seeking incentives to encourage as many as 10,000 school employees to retire.

• Giving the state superintendent of public instruction the ability to order consolidation of school districts.

• Increasing Medicaid co-pays and making greater use of health savings accounts.

• Enrolling MiChild beneficiaries in managed care.

• Requiring Medicaid recipients who smoke to either quit or contribute to their care.

• Making a greater investment in prisoner re-entry programs to reduce recidivism.

• Establishing a new sentencing guidelines commission to look at changes in the system.

• Re-establishing prisoner phone charges.

• Increasing local government taxing authority to make up for losses in revenue sharing.

• Encouraging governments to share services.

• Requiring five-year workforce supply and demand forecasting.

• Looking at a mutual gains approach to collective bargaining.

• Negotiating contracts with preferred vendors.

• Conducting a major review of the state's health care insurance system and consider requiring teachers and other public school employees to be part of the system.