Term-limited Governor Jennifer Granholm, after delivering her last State of the State Address, in her final months in office faces some overriding issues involving the state of the states in the federal system.

This was underscored last week during the extraordinary nationally televised health care summit that President Barack Obama had with congressional leaders, including Representative Dave Camp of Midland, ranking Republican on the House Ways and Means Committee.

Camp, who had two spirited exchanges with Obama during the seven-hour-plus summit, warns that the Democratic versions of the health care legislation would impose "huge unfunded mandates" on the states for Medicaid, the insurance program for the poor and disabled for which the federal government on average pays 57% of the cost.

Federal funds make up more than 30% of state budgets, leading to what the National Journal calls "golden-rule federalism: Whoever has the gold makes the rules."

While the states are raising the majority of their own money -- as Michigan is for funding prisons to parks -- the Journal said "with federal dollars making up a much larger share of sate revenues, it is true that the pipers out of Washington are going to be calling the tune much more often than they have in the recent past."

While Michigan has big problems in balancing its budget, it is not alone. The National Journal reports: "States have collectively had to cover more than $250 billion in budget shortfalls over the past two years. In 2009, their revenue collections dropped by double digits in every quarter -- the worst performance in at least 50 years."

Hoekstra and Dillon Lead

In the latest statewide polling, Congressman Pete Hoekstra of Holland leads among Republican candidates for governor, while House Speaker Andy Dillon of Redford Township leads among Democrats.

But 26% of Republican primary voters remain undecided, as do 45% of Democrats -- a reflection of the fact that their contenders are relatively unknown and most of them are new to the battle.

The surveys were taken last week by EPIC-MRA and released Friday to the Detroit Free Press and WXYZ-TV.

Among Republicans, Hoekstra had 27%; Attorney General Mike Cox 21%; Ann Arbor businessman Rick Snyder 12%; and Oakland County Sheriff Mike Bouchard 10%. Extensive TV ads are paying off for Snyder, who was at only 3% in late January.

Percentages for Democrats: Dillon, who Sunday announced as a candidate, 17; ex-Genesee County Treasurer Dan Kildee, 12; Lansing Mayor Virg Bernero, 8.

Congressional Watch

Northern Michigan congressmen were in the spotlight of the two hottest issues on Capitol Hill last week.

Camp, as noted above, was a figure in the health summit, the only Michigan lawmaker at the event other than Representative John Dingell, D-Dearborn, who for decades has been a leader on health issues.

Representative Bart Stupak (DMenominee), in his capacity as chairman of the Oversight and Investigations Subcommittee of the House Energy and Commerce Committee, presided over a nationally televised hearing on what caused Toyota Motor Corporation vehicles to be recalled.

Here's a shocker: Citing federal reports, Stupak said, "Sudden acceleration events in Toyota vehicles have led to 19 deaths in the past decade, nearly twice the number of deaths associated with similar events in cars manufactured by all other automakers combined."

Although Stupak was not at the health care summit, he is a key player on the legislation because he leads an effort to block public funding of abortions.

As top Republican on the House Intelligence Committee, Representative Pete Hoekstra of Holland, who is running for governor, is a frequent guest on TV shows dealing with domestic terrorism and our wars.

Senator Carl Levin, who as chairman as the Senate Armed Services Committee is most often on the tube about our wars, but last week joined Granholm in lamenting that the Senate did not follow the House in extending unemployment benefits.

Levin said: "The well-being of thousands of Michigan families is hanging in the balance. If their benefits are allowed to expire, it will compound the tragedy of a lost job. These families deserve better.

"It is my hope that next week, we can overcome this obstacle and pass an extension that ensures no gap in benefits. Our Republican colleagues need to wake up to the fact that time is of the essence, and that further delay is not only unwise, but cruel."

Blanchard-Engler United

In 1990, Republican John Engler defeated Governor James J. Blanchard by less than 1% of the vote. Nearly two decades later the two former governors united last week in opposition to current term limits, and in opposition to the calling of a constitutional convention.

The two appeared together in Livonia for a good cause: the Michigan Political Leadership Program.

Although Engler initially supported the constitutional amendment overwhelmingly approved by voters for term limits, he said: "I think term limits have been disastrous. I wish it was undone." He cited school finance and other issues as too complex for inexperienced elected officials to deal with.

Blanchard cited what, in my view, is one of the strongest arguments against term limits: Lawmakers "are not in Lansing long enough to build up relationships of trust."

The governors said a constitutional convention would be too wide-ranging and expensive. Blanchard said it could be a forum for "kooks and cranks."

Great Lakes Good News

After all of the setbacks in the battle to block invasion of Asian carp into Lake Michigan, now comes positive news about aquatic invasive species from the Great Lakes Seaway Ballast Water Management Working Group in its annual report for the 2009 St. Lawrence Seaway navigation season.

The U.S. and Canadian group, including the U.S. Coast Guard, said that in 2009, "all vessels bound for the Great Lakes through the St. Lawrence Seaway received a ballast tank exam. A total of 5,450 ballast tanks, onboard 295 vessels, were sampled and 97.9% of those ballast tanks were found to be in compliance with the two nation's ballast water management regulations.

"Vessels that failed to properly manage their ballast tanks were required to either retain the ballast water and residuals on board, treat the ballast water in an environmentally sound and approved manner, or return to sea to conduct a ballast water exchange. In addition, 100% of ballast water reporting forms were screened to assess ballast water history, compliance, voyage information, and proposed discharge location."

That's a mouthful, but if the inspections and flushing are indeed "among the most stringent in the world" and nearly all tanks were in compliance, there is reason, at long last, to cheer.

George Weeks retired in 2006 after 22 years as political columnist for The Detroit News. His weekly Michigan Politics column is syndicated by Superior Features.