United Way for Southeastern Michigan

There has been a lot of activity in both the Michigan & U.S. Legislatures this past month! Thank you all for taking action and speaking out! Be sure to thank your elected officials that voted for the passage of this key legislation as well as the sponsors and co-sponsors. Here's an update:

Auto Loans

The Auto Industry Bridge Loan Act was not approved by members of Congress before the recessed for the holiday and ending the session of the 110th Congress.  Realizing that immediate action was needed, President Bush permitted the use of  $13.4 billion in Troubled Assets Relief Program (TARP) funds to be used for short-term, low-interest loans for GM & Chrysler, with another $4 billion pending in February (with approval from Congress).  

 Financial Literacy Bill (SB 834) 

The bill that will allow financial literacy courses to count towards meeting the state’s high school graduation requirements has been signed into law and is now Public Act 316 of 2008.  Senate Bill 834, sponsored by State Senator Michael Switalski (D-Roseville), allows that a financial literacy course may be used, in addition to the requisite math courses (Algebra I, Algebra II, & Geometry), to satisfy the required math credits for graduation.   Although the revised school code has allowed students to take a course in financial literacy since 2002, the course was not eligible to count towards the high school math requirements.  This bill will serve as an incentive for schools to teach financial literacy and create a comprehensive financial literacy curriculum as well an incentive for students to take the course.      

State Income Tax Check-Off for United Ways 

A package of bills that will establish a United Way donation check-off box on Michigan state income tax forms have been sent to the Governor for her signature.

House Bills 6025 & 6026, sponsored by Michigan State Representatives Rick Jones (R-Grand Ledge) & Jeff Mayes (D-Bay City)  [(identical legislation was sponsored in the Senate by State Senators Michael Switalski (D-Roseville) & Judson Gilbert (R-Algonac), but did not move)], provide Michigan taxpayers with a way to conveniently give to United Way. By checking the new box, taxpayers could direct $5, $10, or another specified amount of their tax return to their local United Way.  Funds will be used to provide basic needs to the donor’s community.   Once the Governor signs the bills they will become law and take immediate effect.  You should see a United Way check-off box on your Michigan state income tax forms for the 2009 tax year.    

IDA Tax Credits & Expansion  

Three bills that together provide tax credits for contributions to Individual Development Accounts (IDAs) have been sent the Governor for her signature.   The three bills (House Bill 6549, Senate Bill 1020 & Senate Bill 1636) will allow a financial institution or a taxpayer to claim a credit for the Michigan Business Tax (MBT) for contributions made to an IDA.  Also, IDA funds can now be used to make energy-efficient home improvements.   

Once the Governor signs the bills they will become law and take immediate effect. 

Michigan Promise Zone Act 

The Michigan Promise Zone Act has been sent to the Governor for her signature. 

Among other things, the Michigan Promise Zone Act, sponsored by Representative Tim Melton (D-Pontiac), Senator Gerald Van Woerkom (R-Muskegon), & Senator John Gleason (D-Flushing), will allow local governing bodies (cities, villages, townships, etc.) with high levels of children in poverty to establish a “promise zone”.  A promise zone authority will then provide a promise of financial assistance for postsecondary education to students who graduated from a high school within that zone.