Counties to get revenue sharing boost for fourth straight year

Michigan counties will receive $221.4 million in revenue sharing payments from the state via a fiscal 2019 budget bill approved by a legislative conference committee this week. The full Legislature is expected to approve the plan next week and send to Gov. Rick Snyder.

The fiscal 2019 figure will be $1.3 million higher than the FY18 number.

“These figures have been unsettled for weeks,” said Deena Bosworth, MAC’s director of governmental affairs. “It’s important to remember the debate started in Lansing this year with the governor proposing a 1 percent cut from FY18 levels. We are now leaving the Legislature with a 0.5 percent increase, relative to FY18.

“On behalf of our members, we extend our appreciation to the members of the Appropriations Committees in both chambers for making this the fourth consecutive budget year with an increase in revenue sharing payments,” Bpsworth added.

Built into the revenue sharing figures is a $1 million in one-time appropriation that counties are directed to use toward pension or OPEB obligations or debt.

See county-by-county estimates for fiscal 2019.

Antrim, Keweenaw and Mackinac counties return to the formula in FY19 with partial-year payments. That leaves only Emmet and Leelanau still drawing from their Revenue Sharing Reserve Funds that began in 2004 as counties pulled ahead local property tax revenue in an agreement with the state to provide significant state budget relief by temporarily ending revenue sharing payments.

“We are pleased, obviously, that the Legislature has again increased the amount,” said Stephan Currie, MAC’s executive director. “However, as our members know all too well, the money committed is not nearly enough to cover the mandates the state has placed on counties for local public services. MAC will continue to educate legislators on that point and build on the momentum we have gained in recent years.”

In additional budget news:

Health, Human Services, Courts

  • County hold harmless on foster care agency per diem is retained, which is an $8 million savings for counties. The budget implementation bill (SB 988) that is likely to pass next week will eliminate the sunset on the county hold harmless.
  • $5.5 million for administrative rate payments and $9.9 million in per diem payments for unlicensed relative foster care providers per the Glisson federal court decision.
  • Boilerplate language to require the Department of Health and Human Services (DHHS) to maintain the federal foster care appeals process in place as of Sept. 30, 2017, rather than the DHHS proposed policy to remove ability for locals to formally appeal.
  • $4.5 million General Fund (GF) increase for essential local public health services and $4.4 million from the General Fund for emerging public health threats.
  • $5.5 million GFT for non-Medicaid mental health services to hold harmless Community Mental Health agencies (CMHs) that may be hurt by the new FY19 GF funding formula.
  • $11 million GF increase for growth in caseload for Healthy Michigan plan mental health services and substance use disorder services.
  • Section 298 language was removed that would have allowed Medicaid Health Plans in the pilot regions to receive all the Medicaid funds without contracting with the CMH in that pilot community.
  • $750,000 in a one-time increase specialty court grants.
  • $700,000 retained to comply with the juvenile lifer without parole court decision. The executive budget removed this, which would have shifted cost to counties. Legislators later revised the recommendation to include the funds.

Transportation

  • Additional $121.3 million to local road agencies, bringing total local road agency funding to $1.37 billion for fiscal 2019. County road agencies will receive $77.9 million of the increase.
  • $300 million in one-time GF distributions to road agencies, of which counties will receive $117.3 million. This yields a combined increase of $195.2 million year-over-year for county roads.
  • Additional $2.5 million for local transit operating costs to the 81 local public transit agencies.

Agriculture

  • Additional $525,700 for grants to eligible county fairs, shows and expositions.