Legislative Update 2-7-25

Written by Derek Melot on February 7, 2025. Posted in Blog, Events, Legislative, MAC news, MACSC, Marketing, NACo

Counties would get 4% revenue sharing bump in governor’s plan

Michigan counties would see a 4 percent increase in the revenue sharing total in fiscal 2026 under a budget plan presented by Gov. Gretchen Whitmer’s administration this week.

Whitmer’s budget, which is $83.5 billion overall, $15.3 billion of that General Fund, leaves out key policy initiatives that local governments have been seeking.

The 4 percent increase in county revenue sharing would not apply to the entire revenue-sharing base from FY25. The administration has excluded the $30 million in equalization payments for counties that were first included in the FY25 budget, meaning these payments remain flat. Counties would still see just over $300 million in this plan. Notably absent from the proposal is the Revenue Sharing Trust Fund that MAC and other local government groups have long supported.

Public safety funding is another point of contention. The governor seeks $75 million for public safety and violence prevention, but counties are entirely excluded from eligibility — a move that MAC has criticized as shortsighted. Counties play a central role in law enforcement, courts, jails, diversion programs, specialty treatment courts and juvenile justice, particularly on behalf of townships that rely on county-level services. By shutting out counties, MAC argues the state is diluting the effectiveness of these critical funds.

Another missing element is a comprehensive road funding plan. However, speculation in Lansing suggests a plan could be released soon. With infrastructure needs mounting, many are eager to see how the governor plans to address road repairs and long-term funding solutions.

Overshadowing all budget discussions is the looming threat of a federal funding freeze, which could impact roughly 42 percent of the proposed budget. Lawmakers are watching intently to see how federal decisions might affect Michigan’s financial outlook.

As the budget process unfolds, MAC will continue pressing for adjustments to revenue sharing, public safety funding and road investments

For more information on this issue, contact Deena Bosworth at bosworth@micounties.org

House advances rule to tie special spending to immigration policies

A rule advanced out of a key House committee this week that seeks to prohibit appropriations bills from including earmarked spending for municipalities that maintain policies perceived as obstructing federal immigration enforcement.

Under House Resolution 19, a municipality — including any official, department, or board — would be ineligible for “legislatively directed spending” (think earmarks, not regular budget line items) if it:

Maintains any rule, policy, or ordinance that subverts federal immigration enforcement in any way.
Refuses to cooperate with federal immigration authorities, including U.S. Immigration and Customs Enforcement (ICE) detainer requests.

Before a municipality could receive legislatively directed spending, HR 19 requires local governments to submit detailed documentation to the House, including:

A report on local policies and ordinances related to federal immigration law and enforcement. This must include rules regarding cooperation with ICE and detainer requests and whether the municipality shields undocumented immigrants from federal authorities.
A formal certification letter from the municipality’s chief executive officer, elected board, or legal representative, stating that:
- Local policies do not encourage or support obstruction of federal immigration enforcement.
- The municipality will comply with federal immigration law.

If HR 19 gains traction, it could have significant fiscal and legal implications for municipalities across Michigan. HR 19 is now before the full House.

For more information on this issue, contact Deena Bosworth at bosworth@micounties.org.

Senate begins debate on Earned Sick Time Act changes

The Michigan Senate Committee on Regulatory Affairs held a hearing this week on Senate Bill 15, by Sen. Sam Singh (D-Ingham), which has several key amendments to the Earned Sick Time Act set to take effect on Feb. 21, 2025. With time running short, the Senate and House must reach an agreement on changes to the law before its implementation.

The amendments in SB 15 would:

Redefine the definition of a “small business” from one with fewer than 10 employees to one with fewer than 25 employees.
Reduce the number of hours a small business must provide paid leave to 40 as opposed to larger businesses that remain at 72 hours but requires small businesses to provide an additional 32 hours of unpaid leave.
Allow businesses to frontload sick time at the beginning of the year instead of accruing it throughout.
Cap the amount of accrued sick time employees can carry over each year to 144 hours if it gets paid out and 288 if it does not.

This Senate proposal follows the House’s passage of House Bill 4002 last week, which takes a more business-friendly approach. The bill, which MAC backs:

Exempts businesses with fewer than 50 employees from the Earned Sick Time Act.
Narrows employee eligibility, excluding independent contractors, out-of-state workers, seasonal employees (working 25 weeks or fewer), part-time employees (25 hours or less per week) and variable-hour employees.
Provides two accrual models:
- Frontloading Model: Employers give up to 72 hours of sick time at the start of the year, with no carryover requirements.
- Accrual Model: Employees earn one hour of sick time per 30 hours worked, capping at 72 hours annually. Carryover is limited to 72 hours unless the employer allows more. Employers may opt to pay out unused time to avoid carryover.
Allows employers to integrate sick time with existing PTO policies for administrative efficiency.
Clarifies sick time pay rates, excluding bonuses, tips, commissions, overtime and holiday pay.
Permits employers to set documentation, notice and disciplinary policies for sick time use.

With the Earned Sick Time Act’s effective date quickly approaching, the Senate and House must reconcile their versions of the amendments. Business groups have expressed strong support for HB 4002’s broader exemptions, while worker advocacy groups favor SB 15’s more limited revisions. The debate in Lansing now centers on how much flexibility businesses should have while ensuring employees retain adequate sick leave protections.

For more information on this issue, contact Deena Bosworth at bosworth@micounties.org.

Oakland’s Taub, a former MAC Board president, passes at age 85

Taub

Shelley Goodman Taub, former Oakland County commissioner and president of the Michigan Association of Counties in 2016-17, passed away on Feb. 4, 2025, after a brief illness. She was 85.

“Shelley’s life of public service never ceased to impress,” said MAC Executive Director Stephan Currie, “She wanted to serve, she enjoyed serving and she committed the time and energy to be effective for her county, her state and MAC.”

Taub did two long stints on the Oakland Board, interrupted by two terms in the Michigan House, 2003-2006.

Taub was first elected to the MAC Board in 2012 and quickly rose into the leadership ranks to become president for the 2016-17 member year.

During her year as MAC president, Taub led a historic delegation of Michigan commissioners to a special White House briefing in August 2017 and continually championed a county role in arts and culture as chair of the Arts and Culture Commission of the National Association of Counties.

In her inaugural address at the 2016 Annual Conference, Taub said,

“‘One size does not fit all.’ This is an oft-repeated phrase that is intended to convey to the listener that the speaker understands your pain; that the speaker truly grasps the problem.

“The speaker of ‘one size does not fit all’ remembers the old fairy tale about the glass slipper and that you, the commissioner, have been wandering around the country like the prince with an idea or a mandate that does not fit, does not work, trying to squeeze into that slipper, particularly when the state or feds send us the slipper, the shoebox and the bill. … So, what do we do and how do we comply and how in this state or this world can we squeeze a size 10 foot into a size 6 slipper?”

Taub then announced the creation of a message board system for county commissioners to share best practices, questions and ideas, all to leverage the collective wisdom of Michigan’s hundreds of county commissioners. The Commissioners Forum continues to operate today.

In 2016, Taub was selected for the 2016 class of the Women in Government Program operated by the Governing Institute to increase female participation in public service.

Taub also served on NACo’s Board of Directors.

Sign up now for the 2025 Michigan Counties Legislative Conference in Lansing

The 2025 Michigan Counties Legislative Conference will be held April 7-9, 2025, at the DoubleTree Hotel in Lansing.

The event, co-hosted by the Michigan County Medical Care Facilities Council, will feature a new format that ensures no MAC member misses any informational session that interests them.

This year, those sessions will include updates on such issues as cybersecurity, Michigan’s housing crunch, road funding options, the state’s juvenile bed shortage and much more! All of these educational sessions will be plenary sessions, meaning no overlapping events or choices to be made.

Special events at the conference include:

A Strolling Dinner on the opening night for mingling with colleagues and MAC’s Premier Corporate Partners
A Legislative Reception, during which MAC will honor its “Legislative Advocates” for 2024
Presentation of certificates to members of the 2025 class of County Commissioner Academy

Member pricing for the conference is $425 for all events, though one- and two-day packages are available. Any elected or appointed county official or member of MCMCFC may use member pricing.

To start your registration, go to https://bit.ly/2025LCregister.

MAC has secured a room block at the DoubleTree, with a per-night rate of $189. To secure that hotel rate, register directly with the hotel by clicking here.

We look forward to seeing you at the DoubleTree Hotel in downtown Lansing!

Blue Cross to host webinar on using Health Savings Accounts

Health Savings Accounts (HSAs) are increasingly part of top employers’ benefits offerings. In this employer-requested webinar, Blue Cross, a MACSC sponsored program and MAC Premier Partner, will explore the ways employers and employees can benefit from an HSA. Whether the HSA enables employers to offer a lower-premium plan, enhance retirement planning strategies or reduce the tax burden for employees and the organization, it is a core element to a comprehensive benefit package.

Join Blue Cross on Thursday, Feb. 20 from 11 a.m. to 12 p.m. Eastern time as they discuss:

Tax advantages for employers and employees
How HSAs can be an important component of retirement planning for employees
How employers can communicate effectively with employees across their organization about the advantages HSAs provide and how to make the most of them

Staff picks

Civic Engagement Series, Part 1 – Berrien County, Michigan (NACo Podcast)
On the front lines against bird flu, egg farmers say they’re losing the battle (Michigan Public)
The heist of 100,000 eggs in Pennsylvania becomes a whodunit that police have yet to crack (Associated Press)
Expanding housing choices: Local governments work together to help homeowners build ADUs (American City and County)