Big increase for counties from liquor tax advances from Senate

A two-bill package designed to extend the capture of liquor tax revenue that counties use for substance abuse programs passed the Senate this week. Senate Bills 1222-23, by Sen. Wayne Schmidt (R-Grand Traverse), would amend the State Convention Facilities Authority Act to extend the sunset on the capture of liquor tax revenue for improvements to the convention facility in Detroit and therefore extend the sunset on the collection of liquor tax revenue for counties.

The issues were tied together when the act was created. Under current law, the collection and allocation of the liquor tax revenue expires once the bonds for the convention facility are paid off. Due to recent increases in liquor tax revenue, those bonds are scheduled to be paid off 13 years early, which would eliminate the future collection of revenue and deplete the allocation to counties. This two-bill package does not extend the 2039 deadline for the bonds to be paid off, but it does allow the facility authority to issue additional bonds for improvements.  

MAC has been working with representatives from the authority to address our need to have counties’ annual allocation reflective of the collection of the liquor tax revenue. Current law states counties receive an increase in their allocation based on a percentage above the previous year’s allocation, not on a percentage of the total tax collected. The excess tax collected is instead allocated to the reduction of the bond debt of the authority. (Again, due to the increase in liquor tax revenue, those bonds are scheduled to be paid off early.)

By allowing the authority to issue additional debt for improvements, the bills do something significant for counties. Beginning in 2023, the baseline allocation in liquor tax dollars for counties will increase by approximately 48 percent. The annual increase will remain the same as current law of 1 percent additional each year, but the baseline will be reset every three years to reflect the increase in revenue from the liquor tax.

Also, current law states 50 percent of the liquor tax revenue received by counties must be allocated to substance abuse programs. SBs 1222-23 will change that requirement to 40 percent (though no less than the amount allocated in FY22). In short, this will be a significant increase in funds toward substance abuse programs and an increase in the amount counties can allocate to their general funds. 

The bills received bipartisan support in the Senate and now move to the House for consideration next week.

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

 

MAC leaders address SE Michigan summit on county cooperation

MAC leadership joined county and expert leaders in Southeast Michigan today to present at the 2022 Tri-County Summit at the Detroit Zoo put on by the county boards from Macomb, Oakland and Wayne counties.

In addition to remarks from MAC Executive Director Stephan Currie and Governmental Affairs Director Deena Bosworth, attendees heard presentations on broadband equity, water infrastructure and economic forecasts, plus comments from the county board chairs, Alisha Bell (Wayne), Don Brown (Macomb) and Dave Woodward (Oakland).

The boards of commissioners from Wayne, Oakland and Macomb Counties set a theme of “Moving Forward. Moving Together.” Expanding on the issues discussed at last year’s event, this year’s event continued the discussions to “strategize ways to work together to improve and strengthen our region’s approach in these shared issues.”

MAC also was pleased to sponsor this annual event, designed to foster regional cooperation among the three largest counties in Southeast Michigan, home to more than 40 percent of Michigan’s population.

 

Plenty of new faces on county boards

There will be plenty of new faces around county board tables come January following the Nov. 8 General Election. Most boards will continue to be controlled by Republicans.

A MAC review of unofficial election results shows 199 new names among the 619 county commissioner slots for 2023-24. This reflects a turnover rate of 32% turnover, which is higher than a usual election cycle but not extraordinary for the first election after a reapportionment process.

See unofficial list of commissioners here.

After the 2020 Census, county reapportionment boards redrew commissioner districts and, cumulatively, reduced the total number of seats from 622 in 2022 to 619 for the next decade.

And most of those seats will be held by Republicans.

For the coming term, the partisan breakdown is:

• 448 – Republican (up 10 from pre-election totals in 2022)
• 158 – Democratic (down 11)
• 11 – No Partisan Affiliation (down 3)
• 2 – Vacant (to be filled by appointment)

Republicans will control boards in 67 counties, while Democrats will have majorities in 13. Neither major party will have a majority in Iron, Menominee or Presque Isle counties.

 

AG opinion applies to county boards of canvassers

We know many of you are all too familiar with the upcoming festivities, but this is a friendly reminder that Election Day is just around the corner! Polls open at 7 a.m., and close at 8 p.m., on Tuesday, Nov. 8. While county clerks and municipal officials really run the show at the polls, we wanted to take this opportunity to highlight some of the roles and responsibilities county commissioners have in the elections process.

As you know, county commissioners appoint members to their county board of canvassers. Each county board consists of four persons, two from each major political party. Members of the board of canvassers are responsible for determining that all precincts have returned their votes and those votes have been counted. Once that has been completed, the board of canvassers must certify the election.

The Attorney General’s Office recently shared an unpublished opinion reaffirming the role of Michigan Board of State Canvassers and its ministerial duties to certify the election in a disinterested manner. In other words, members of the board have a clear legal duty to serve the public free from their own personal or philosophical beliefs. The opinion also states that if an individual on the Michigan Board of State Canvassers fails or refuses to perform their duties, they are not entitled to taxpayer-funded legal representation.

After consulting legal professionals, we have determined that the attorney general’s opinion is applicable to county-level boards of canvassers. This means that your appointees will be held to the same standards in this election, and future ones.

 

MAC signs letter to state asking for more juvenile justice beds

Michigan is short vital resources for juvenile offenders and the state needs to act, MAC and nine other associations told Gov. Gretchen Whitmer and the Michigan Department of Health and Human Services (MDHHS) in a letter sent this month.

The letter expressed concern with the lack of short-term local juvenile detention resources and out-of-home placement opportunities for highest-risk youth and warned of a system-wide crisis due to the addition of the 17-year-old population in the juvenile justice system and the closing of state and private treatment beds across the state. In many instances, short-term detention facilities operated by courts and counties are housing youth for months at a time, as opposed to days and weeks as they are intended to. The bed shortage has led courts throughout Michigan to go without proper placement for the highest-risk delinquent youth.

Local courts, counties and other stakeholders have been persistent in their efforts to resolve the shortage of beds. The circumstances that have led to this point, including lack of staffing, Raise the Age legislation, COVID restrictions and new rules and regulations have resulted in a critical shortage that is harming communities and juveniles, some of whom have mental health challenges.

The letter urges Whitmer, MDHHS and legislators to take act and work alongside stakeholders to address the bed shortage crisis with both short- and long-term solutions.

For more information on this issue, contact Samantha Gibson at gibson@micounties.org.