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Date Posted: June 27 2008

Tax hike may reap windfall
LANSING - A proposal to spend $1.6 billion for state-backed construction projects is a political hot potato in our state's capitol.

Senate Bill 511 would, among many other things, authorize the spending of about $800 million on construction projects at state universities and another $800 million in state building and facility projects. Earlier this month, the big appropriations bill was voted down, with all Democrats in favor of the bill and a majority of Republicans (the exception being two GOP senators, Randy Richardville and Roger Kahn) voting against.

State Sen. John Gleason (D-Flushing) argued that the money spent on state construction projects creates a snowball affect, moving money from construction worker paychecks into the local economies in Michigan, at restaurants, grocery stores and car dealerships.

"Before us we have about $800 million in jobs," said Gleason, in a statement to his fellow senators. "Economists, he said, "say local dollars would turn over seven times in our own communities. Then why are we sitting idly by and not putting these workers to work?"

From 2007 into 2008, the spending bill has bounced back between the House and Senate, with amendments and language being added and subtracted. It is part of a greater debate among Lansing lawmakers, who adopted a controversial tax increase last year to fund state government, but are still looking down the barrel of a $400 million state deficit this year.

When a version of the bill was before the state House on May 8, Republican Rep. David Agema (R-Grandville) said he didn't support it because it "was an attempt by the Democrats to force excessive spending at a time when we can least afford it."

In order for the measure to be passed or defeated, some sort of bipartisanism will have to come into play. Democrats control the state House, and Republicans control the Michigan Senate. Gleason said he expects the pool of available money to be significantly slashed.

"It's all up in the air right now, but I do know that it's late in the year for starting construction projects," he said. "In this case the calendar is as important as the cash."

The money is available on departmental ledgers of the state's books mainly because of the increase in tax collections - even though the entire state budget is expected to be in the red. If Dems win the argument that some or all of the money would be better used to funding construction projects, the building trades will be a prime beneficiary.

IBEW Local 275's Pat Kramer passes
Our condolences go out to the family and friends of IBEW Local 275 Assistant Business Manager Pat Kramer, who died June 16, 2008 from a blood clot.

Pat, 39, had undergone transplants for both the kidney and pancreas. The first pancreas transplant didn't take, and he was recovering from a second pancreas transplant that took place a few weeks ago.

A 13-year member of IBEW Local 275 (West Michigan), Pat had been assistant business manager for the last eight years. He is survived by his wife Kristen, and unborn daughter, Delaney Jean, who is due in August.

Funeral services were held Friday, June 20. The family is establishing an education trust fund for Delaney. Contributions can be made payable to Kristen Kramer, with "Education Fund" in the memo line, and mailed to IBEW Local 275, 140 N. 64th Ave., Coopersville, MI 49404.