In Lansing, dollars are up for roads, down for veterans
In this week’s episode, MAC’s Podcast 83 discusses the progress of a House GOP roads plan that is a “huge winner” for counties and a problem that has arisen in funding county veteran services grants.
“Road funding had some developments last week,” noted host Stephan Currie.
“The Michigan House of Representative passed out their road funding plan,” replied Deena Bosworth, MAC’s governmental affairs director. “That road funding plan is a huge winner for county road systems across the state.
“Looking at the estimates that were put out by the House Fiscal Agency on that distribution, it’s at least, at a minimum, a 97 percent increase in road funding for each county. …
“I will say we’re still waiting on a proposal by Gov. Gretchen Whitmer,” Bosworth added, “and we’re also waiting on a proposal from the Michigan Senate. I anticipate that it will be a combined proposal, and it will be similar to what the House passed out, but not exactly. I anticipate the Senate and the governor to recommend some revenue increases so that we’re not looking at such a potential decrease in the state’s General Fund.”
By contrast, the cash is not flowing quickly to counties trying to serve military veterans.
“Something we’ve kind of heard about from some counties recently is about veteran grants,” Currie said. “Some of these grants that may have been incorrectly calculated by the state and causing some problems locally?”
“These are veterans grants for the fiscal year 25, which started last Oct. 1,” Bosworth replied. “What we understand is the Department of Military and Veterans Affairs last October said, ‘Hey, counties, thanks for applying for your veteran service grants. Everything’s great. This is how much money you’re going to get.’
“Come to find out, on Feb.18, the department had to do a recalculation of the funds … They notify counties, and some of them are getting a 60 percent to 70 percent decrease in the amount,” Bosworth said.
“They had a hearing on it last week in the Appropriations Subcommittee on Military and Veterans Affairs and legislators were not happy at all. After that committee meeting, I got a phone call from Rep. Julie Rogers (D-Kalamazoo) … and she let me know that she’s absolutely looking for an additional appropriation to try and keep counties whole for fiscal year 25 so she’s out there trying to figure out how to make this right.”
To view the full episode, recorded on March 24, click here.
Previous episodes can be seen at MAC’s YouTube Channel.
And you always can find details about Podcast 83 on the MAC website.
NACo issues alert about federal intentions on ARPA funds
The U.S. Treasury states that the agency intends to enhance compliance checks on the obligation data submitted by counties as part of its efforts to ensure taxpayer funds are used in accordance with program requirements. Treasury intends to recoup funds obligated or expended impermissibly and to recapture funds that were not obligated by the deadline. Counties that are deemed noncompliant will receive “Information Document Requests.”
Treasury also will begin sending “Financial Instructions to Return Unobligated Funds” to counties that did not fully obligate their award funds by the Dec. 31, 2024, deadline, based on the latest data available to Treasury. These instructions will:
- Inform the county how much it owes, based on its most recently submitted report.
- Provide a date by which funds must be repaid.
- Require recipients to use Pay.gov to process the repayments.
If a county does not repay amounts owed by the specified date, Treasury will establish a debt and follow standard debt collection policy and procedures in coordination with the Bureau of the Fiscal Service. Interest and penalties will accrue once the debt is established.
Instructions can be found below about how to submit a report:
- Your id.me registration will be necessary to begin the process.
- In the portal you’ll need to detail all of the ARPA dollars as “obligated” on specific projects. See the portal reporting and compliance guide.
If a county is having issues with the Treasury portal or has received a noncompliance email, but believes it is in compliance, it should provide the full name, county name and Treasury case number to:
Eryn Hurley
Managing Director, Government Affairs & NACo Federal Fellowship Initiative
NACo
ehurley@naco.org
202-942-4204
Capital planning is focus of April 10 fiscal webinar
The Michigan Department of Treasury and Michigan State University Extension (MSU Extension) are reminding you of our next Fiscally Ready Communities training opportunity. This FREE training is a 90-minute webinar that’s designed to assist appointed and elected officials with entry and intermediate level budgeting knowledge.
Capital Asset Management and Planning
Recurring annual expenses are simple to budget, but repair and replacement of big-ticket items can be much more difficult. A Capital Improvement Program (CIP) will help your local government organize those major projects and forecast the expenses to make long-term planning simpler. This session will cover the basics of a CIP, best practices, and give participants a chance to share techniques that have worked for their community, as well as policies, procedures, and accounting for capital asset management and planning.
Date/Time: April 10, 2025, 10 a.m. to 11:30 a.m.
For more information about Fiscally Ready Communities, please check out the Treasury Fiscally Ready Communities webpage. This webpage includes Treasury’s 32-page Fiscally Ready Communities Best Practices document, which we encourage all local officials to review.
Staff picks
- Michigan’s missing 800,000 middle-class jobs (Michigan Future)
- Estimated county distributions under House GOP road plan (House Fiscal Agency)
- State and local security adjusting to shifting cyber threats, insurance requirements (RouteFifty)
- Michigan farmers facing ‘uncertain future’ amid funding freezes, tariff tensions (Bridge Michigan)