As far as Michigan is concerned, the Senate bill increases scope of the minimum guarantee level compared to that in current law as well as compared to the House passed bill, thus increasing MI’s rate-of-return to 92%. We view this as a victory, even though our goal was originally 95%, because we get this 92% return immediately and for all five years of the bill, rather than waiting until the final year. The Senate bill also provides an additional $11 billion in funding over and above the House version thus creating even a better overall return for MI, increasing the amount we receive from Washington nearly $250 million per year through 2009.
There is still much work to be done in the conference committee, including focusing proper emphasis on borders and possibly increasing our overall rate-of-return. We also have to hope that the strong support the Senate showed for the increased funding level is a true challenge to any thoughts of a true veto threat by the President. Keep you fingers crossed and make sure you continue to contact your U.S. Representative and Senators to keep the pressure on!
Thanks to everyone for your hard work....we will keep you updated.
Contact Mike Nystrom at the MITA office with any questions or comments (517) 347-8336.