The Michigan Association of Counties (MAC)

Legislative Update 6-9-23

Blog, Events, Legislative, MAC news, MACSC, Marketing, NACo

Liability concerns for counties raised in sexual conduct package

Legislation to alter the statute of limitations on criminal sexual conduct and sexual misconduct — and which could lead to broad, unintended consequences for counties — was reviewed this week by the House Committee on Criminal Justice.

House Bills 4482–4487 affect private employers, state government, local governments and educational institutions. HB 4486, by Rep. Karen Whitsett (D-Wayne), in particular, raises concerns, which is why MAC is opposing it.

HB 4486 holds government employers to a higher standard than that expected of private employers. The bill states an agency is liable and is not granted immunity if it “knew or should have known that the individual who committed the criminal sexual conduct had committed a prior act of criminal sexual conduct, and the governmental agency failed to act or intervene to prevent the subsequent criminal sexual conduct.”

Under HB 4486, county boards of commissioners would be held liable for the hiring decisions of other countywide elected officials, despite having no direct involvement in these hiring decisions. MAC also has concerns with the retroactive application of the potential statute of limitations and the vague, unintended consequences of HB 4486 that hold governmental agencies liable and to a higher standard than the private sector.

While there is need for reforms, MAC is working to create policy that focuses on prevention, intervention and appropriate accountability, with limited unintended consequences for the Michigan taxpayer.

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

 

Counties need voice on justice commission, MAC tells Legislature

As a funding unit and key administrative piece of local criminal justice, counties should have representation on a state commission to study criminal justice reform, a MAC staffer told a Senate committee this week.

Both the House and Senate held hearings on House Bills 4173 and 4384, by Reps. Abraham Aiyash (D-Wayne) and Luke Meerman (R-Ottawa) respectively, and Senate Bills 376 and 377, by Sens. Stephanie Chang (D-Wayne) and Ed McBroom (R-Dickinson) respectively.

The packages are identical, with the intent to create a Criminal Justice Policy Commission and detail who will serve on it. Under the original version of HB 4173, MAC was to submit a list of three names and one of the submitted names would be selected by the governor to serve on the commission. MAC had a member on the previous commission that operated from 2015 to 2019.

However, the current version of HB 4173, and the Senate package, do not include a MAC representative on the commission. Therefore, MAC is opposing HB 4173 and SB 376.

Given a county’s role as the funding unit, and its fiduciary responsibilities to jails, sheriff’s offices and prosecutor’s offices, it is imperative that counties have a voice, MAC Governmental Affairs Associate Samantha Gibson testified on Thursday.

In SB 377 and HB 4384, the commission would be tasked with submitting a prison and jail impact report relating to any modifications to sentencing guidelines, including any impact on state and local correctional facilities. There are also indirect costs associated with the bills, depending on decisions made by the commission. Costs could increase or decrease, depending on changes made to sentencing guidelines. The potential for financial burdens imposed by the state onto county jails is of great concern to MAC. A county voice is crucial on the commission.

The House panel advanced its version of the bills, while the Senate committee only took testimony.

MAC will continue to press for county representation.

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

 

MAC seeks reimbursement in plan to expand veterans property tax exemption

Legislation to expand and streamline the state’s veterans property tax exemption were reviewed this week by the Senate Committee on Finance, Insurance and Consumer Protection.

Senate Bill 176, by Sen. Sylvia Santana (D-Wayne), SB 330, by Sen. Mary Cavanaugh (D-Wayne), and SB 364, by Sen. John Damoose (R-Emmet), are designed to grant the disabled veterans property tax exemption to surviving spouses, allow for a “one and done” application process for the exemption and provide for an audit process to determine continued eligibility and allow the local board of review, for 2023 only, to correct, upon appeal, the denial of an exemption based on “qualified errors.”

MAC has not yet taken a position on the bills but is working with the bills’ sponsors to include amendments to require the state to reimburse locals for their losses associated with the mandated exemptions.

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

 

MAC-backed water management bills get hearing

Bills designed to allow for water management districts and for the assessment of costs across watersheds in Michigan were discussed this week at a meeting of the House Committee on Local Government.

House Bills 4382-83, by Reps. Curt VanderWall (R-Mason) and Christine Morse (D-Kalamazoo) respectively, rewrite Chapter 22 of the Michigan Drain Code to allow local governments and residents to petition the drain commissioner for the establishment of the districts and, if found necessary, to create a plan to manage stormwater within the district in ways not currently allowed.

The plan would be unique to each district and could include actionable items like regional detention, buffer strips and the creation of wetlands, rain gardens and the like. The intent is to slow down and detain water during major storm events, instead of allowing it to flood roads, fields, businesses and homes on its way to a drain. The plan must include an estimate of the cost of each recommended activity.

The bills also require a public comment period and meeting to get feedback from residents and businesses. The local representation on the board would then vote on the plan and could choose one, multiple or none of the recommended activities. If the board votes to continue with implementation of the plan, bids would be taken for the work and assessments would be made based on benefits derived from the projects, just as it currently is for the drain code. This includes the Michigan Department of Transportation for benefits to state highways; counties for benefits to county roads; cities, villages and townships for benefit to roads and public health; and property owners based on their contribution. Impervious properties would be assessed at higher rates than agricultural land.

Proponents of the bills explained the stress on the aging infrastructure designed to drain the land for roads, developments and public health, stating the current infrastructure was primarily designed to handle stormwater in the early 1900s and cannot keep up with the intensity and frequency of major storm events in the 21st century.

Under the bills, water management districts would be allowed not mandated; locals would decide if they wanted to utilize these tools.

MAC and the Michigan Association of County Drain Commissioners support the legislation.

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

 

Early voting legislation discussed; funding not yet resolved

Legislation has been introduced to implement Proposal 2 of 2022, effectively overhauling Michigan’s election system. Last November, 60 percent of Michigan voters approved a new constitutional amendment to allow for nine days of early voting, among other provisions. Senate Bills 367-374 and House Bills 4695-4702 will codify Proposal 2 into law.

The Senate package, led by Sen. Jeremy Moss (D-Oakland), was brought before the Senate Elections and Ethics Committee on Wednesday, while Rep. Penelope Tsernoglou (D-Ingham) led the charge in the House Elections Committee on Thursday. Representatives from Promote the Vote, the Michigan Association of Municipal Clerks, the Michigan Association of County Clerks and the Secretary of State’s Office took turns commenting on each of the eight bills as the lead stakeholders. Aside from early voting, the package includes measures for being added to the permanent absent voter list, prepaid postage for absent voter ballots, expanding access to ballot drop boxes, and increasing precinct sizes.

Counties will be most directly affected by the early voting component and the cost of administering elections for additional days. Under SB 367, municipal clerks will have the option to jointly conduct elections with other municipalities or with their county clerk. Some clerks may find that pooling staff and other resources is beneficial given the new circumstances.

Unfortunately, the topic of funding was largely avoided by committee members and stakeholders. Chair Moss briefly noted budget negotiations are currently ongoing. In January, Secretary of State Joselyn Benson estimated the new constitutional amendment would cost locals between $30 million and $50 million annually. The final version of the state’s FY24 budget is expected to be approved later this month and will likely include some, if not all, of the funding necessary to implement these changes.

MAC has not taken a formal position on this legislation but will report on the funding allocation once it is finalized.

For more information on this issue, contact Madeline Fata at fata@micounties.org.

 

MAC, NACo oppose amendment to federal broadband law

An amendment to preempt local control over telecommunication infrastructure projects has passed the U.S. House Committee on Energy and Commerce and will be presented to Congress for approval. The amendment is to the American Broadband Deployment Act of 2023, also known as H.R. 3557, and provisions include:

  • Preemption of state and local zoning authority over the placement of wireless technologies, including towers, equipment, and small cells
  • Elimination of state and local government authority to manage public rights-of-way (ROW) by collecting fair market compensation for their use and management, and limiting ROW fees to “actual, objectively reasonable costs”
  • Enactment of shot clock rules and “deemed granted” provisions which place timelines for the review and approval of telecommunications projects
  • Prohibition of state and local governments from revoking cable franchises.

Counties own much of the infrastructure necessary to build or expand telecommunication networks, including pole attachments and rights-of-way, and should be closely involved in the permitting and construction process. As the federal government prepares to distribute $42.45 billion to expand broadband through the BEAD program, with Michigan slated to receive roughly $1.6 billion, this legislation will damage the ability for local governments to serve as partners in the deployment process.

Furthermore, by enforcing a “shot clock” on the permitting process, counties will be unable to properly assess each application and the impact these projects will have on their communities.

The National Association of Counties (NACo) hosted a webinar late last week encouraging county officials to contact their federal legislators opposing this amendment.

Please utilize MAC’s Advocacy Center to send a prepared email of opposition to your member of Congress.

For more information on this issue, contact Madeline Fata at fata@micounties.org.

 

Podcast 83 dives into Michigan water issues in special episode

How Michigan’s local governments can mitigate the damage of flooding is the topic of a special episode of MAC’s Podcast 83.

Stacy Hissong, partner at Fahey Schultz and legal adviser to the Michigan Association of County Drain Commissioners, is the featured guest on the episode, which is hosted by Deena Bosworth, MAC’s governmental affairs director.

The pair discuss:

  • Excess flooding and how local governments can deal with it with tools they have now
  • Legislation in Lansing to create more tools to aid residents in avoiding damage
  • The history of how Michigan has dealt with groundwater and why the state has challenges now

View the full video of the episode, recorded on May 30, by clicking here.

Previous episodes can be seen at MAC’s YouTube Channel.

And you always can find details about Podcast 83 on the MAC website.

 

Counties have until June 15 to file for pension grants

Applications for the Protecting MI Pension Grant Program must be submitted no later than June 15, 2023, using the electronic submission system (Michigan eSignature Solution), the state Department of Treasury advised.

Click to apply.

Qualified units are strongly encouraged to ensure the accuracy and completeness of of the application packet prior to submission. For detailed information regarding the Protecting MI Pension Grant application process or the Michigan eSignature Solution, please visit the Protecting MI Pension Grant Application website at www.michigan.gov/MIPensionGrant. On this page you can also access application forms, instructions, checklists, a sample governing body resolution, and frequently asked questions related to this grant application process.

As a reminder, in addition to the application submitted online through Michigan’s eSignature Solution, the following supporting documentation is required to be attached prior to submission.

  • Protecting MI Pension Grant Affidavit (Form 5887): Must be signed by Chief Administrative Officer and Notarized.
  • Copy of approved local government governing body resolution authorizing the chief administrative officer to file a claim for a grant payment for the Protecting MI Pension Grant Program.  
  • Copy of actuarial valuation(s) utilized in audited financial statements used to complete the most recent Form 5572 submitted as of 12/31/2021 for all qualified retirement systems that are requesting grant awards. 
  • Most recent actuarial valuation as of 12/31/2022 for all qualified retirement systems that are requesting grant awards. 
  • Copy of court ordered judgement levying a millage to cover local government pension costs (only required if applicable)

Additional information related to FAQs, program guidelines, and application materials are available at www.Michigan.gov/MIPensionGrant . Please be sure to sign up for Treasury – Local Government email alerts to be notified of additional updates to this grant program and other local government notifications.  

The Michigan Department of Treasury (Treasury) reminds municipalities that, although not required, they can review and correct errors in Treasury’s calculation of each municipality’s millage rate eligible for the 2023 Personal Property Tax (PPT) reimbursement (MCL 123.1345(x)(ii)(B) and MCL 123.1353(5)).

 

Time to review millage rate calculations

The Local Community Stabilization Authority (LCSA) Act requires Treasury to make the eligible millage rate calculations available by May 1. The eligible millage rate calculations can be found on Treasury’s 2023 PPT Reimbursements website under the “Millage Rate Comparison Reports” heading. These 2023 Millage Rate Comparison Reports are intended to be used by municipalities to verify the accuracy of the eligible millage rates to be used in their 2023 PPT reimbursement calculations. 

How to review the 2023 Millage Rate Comparison Reports:

  • Verify individual millage rate(s) levied in 2022
    • Municipalities should compare the individual millage rate(s) levied in 2022 on the 2023 Millage Rate Comparison Reports with the millage rates reported on their 2022 Form 614 – Tax Rate Request (L-4029).
    • Each millage rate reported on the 2022 Form 614 should be listed on the 2023 Millage Rate Comparison Reports (excluding special assessments).
  • Verify calculated millage rate used in the computation
    • The calculated millage rates to be used in the 2023 PPT reimbursement calculations should equal the lesser of the eligible millage cap and the 2022 millage rate.
    • The Millage Rate Calculation tab of the Excel workbook provides information about how each eligible millage rate is calculated.
    • NOTE: Calculated eligible millage rates may be prorated and thus may not reflect the actual millage rates levied by the municipality.

When NO millage rate errors are identified:

If a municipality does not identify an error in the 2023 Millage Rate Comparison Reports, the municipality does not need to file a form or take any further action to notify Treasury.

When errors ARE identified:

If a municipality does identify an error in the 2023 Millage Rate Comparison Reports, the municipality will need to complete the Form 5613 – Millage Rate Correction for the 2023 Personal Property Tax Reimbursement Calculations to notify Treasury of the error(s). In addition to the correction form, municipalities must provide substantiating documentation to support the millage correction.

The reporting forms related to the 2023 Millage Rate Comparison Reports (along with the associated deadlines) are available on Treasury’s Forms for Calculation of PPT Reimbursements website.

  • Form 5608 – Portion of 2022 Essential Services Millage Rate Dedicated for the Cost of Essential Services
    • Optional form to be used by counties, cities, villages, townships, and local authorities that levy an extra-voted millage rate that partially funds the cost of essential services (for example a Fire/Cemetery millage).
    • NOTE: For extra-voted millage rates with a name that implies the millage was partially dedicated for the cost of essential services, Treasury has identified the millage type as “PARTIAL ESSENTIAL SERVICE” on the 2023 Millage Rate Comparison Reports.
    • DUE DATE: Aug. 1, 2023  
  • Form 5613 – Millage Rate Correction for the 2023 Personal Property Tax Reimbursement Calculations
    • Optional form to be used by municipalities that identify an error in the 2023 Millage Rate Comparison Reports.
    • DUE DATE: Aug. 1, 2023

The corrections reported on Form 5613 and the essential services percentage reported on Form 5608 will be used in the calculation of the 2023 PPT reimbursements.

Form 5613 and Form 5608 submissions will not be accepted after Aug. 1, 2023.

Please direct any questions regarding the PPT reimbursement calculation or correction process to TreasORTAPPT@michigan.gov or 517-335-7484.

Additional information is available at www.michigan.gov/pptreimbursement.

 

State seeks infrastructure ‘champions’ for classes

The Michigan Infrastructure Council (MIC), Water Asset Management Council (WAMC), and Transportation Asset Management Council (TAMC) have been focusing efforts on creating a statewide culture of asset management through several initiatives. One of the MIC’s initiatives is the Champions training program, which will have a new class starting in August.

The new class begins Aug. 1 and runs through Nov. 1, 2023.

To learn more about the program and apply, click here. The deadline to apply for this free training is July 26, 2023.

Since 2021, the MIC has trained more than 300 professionals from various backgrounds (engineering, finance, planning, elected officials) in key subject areas such as risk management, knowledge management, and strategic decision-making as they apply to infrastructure assets. Based on positive feedback and a growing list of graduate referrals, the MIC has committed to offering a second cohort of AM Champions in 2023.

For more information, contact Nathan Hamilton of the MIC at hamiltonn4@michigan.gov.

 

Legislative Update 6-2-23

Blog, Events, Legislative, MAC news, MACSC, Marketing, NACo

Deal reached, adopted to avoid federal debt default

“After several rounds of negotiations, the White House and House Republican Leadership reached an agreement to address the debt limit and cap spending,” the  National Association of Counties (NACo) reported. “The deal, titled the Fiscal Responsibility Act of 2023 (FRA) (H.R. 3746), would suspend the debt ceiling through January 1, 2025, effectively increasing the amount of money that the federal government can borrow to fund federal programs. On January 19, 2022, the U.S. Department of the Treasury announced that the federal government had hit its $34.1 trillion debt limit. This agreement comes less than a week ahead of the deadline after which the federal government would no longer have the capacity to pay its obligations.

“After quickly passing the House, the legislation passed the Senate by a vote of 63-36 on June 1, ensuring the federal government will not run out of money to pay its bills on Monday, June 5, the day the government would default on its debt.

“The nonpartisan Congressional Budget Office (CBO) released its assessment of the bill’s impact on federal debt and deficits. CBO estimated that if the legislation were enacted, budget deficits would be reduced by about $1.5 trillion over the next decade and interest on the public debt would be reduced by an estimated $188 billion.

“NACo applauds our federal partners for reaching a bipartisan agreement to raise the federal debt ceiling. While this is a significant move that will provide much-needed certainty to counties, there are a handful of provisions of relevance to local leaders including spending cuts, permitting reform, implementing new work requirements for certain federal public assistance programs and reinstating federal student loan payments.

“A comprehensive analysis of the Fiscal Responsibility Act and its impact on county governments can be found here.”

 

Podcast 83 takes look at much-needed juvenile justice package

In a special episode of Podcast 83, MAC Governmental Affairs Associate Samantha Gibson provides a detailed overview of a 20-bill package to reform Michigan’s juvenile justice system.

Juvenile justice reform has long been a priority for MAC and the issue gained momentum with the release of recommendations from a state task force formed in 2021. The new legislative package is largely built on the task force’s ideas and is strongly supported by MAC.

Increasing the Child Care Fund reimbursement rate for counties to 75 percent, from the current 50 percent, is the no. 1 priority for MAC in this package, Gibson explained.

Also, the package will reform juvenile justice services by using mental health and risk screening tools to benefit youth in the system and allow counties to better serve court-involved youth. The best practices that would be implemented within this policy, Gibson said, will allow for rehabilitation and reintroduction into society, as well as lead to reduced recidivism rates for court-involved youth.

View the full video of the episode, recorded on May 23, by clicking here.

For links to all the bill texts in the package, see MAC’s May 26, 2023, Legislative Update.

Previous episodes can be seen at MAC’s YouTube Channel.

And you always can find details about Podcast 83 on the MAC website.

 

New state council to study population issue

A new state body will analyze the factors affecting Michigan’s population and what steps can be taken to spur growth, Gov. Gretchen Whitmer announced at a Mackinac Island event this week.

Via Executive Order, Whitmer is forming the “Growing Michigan Together Council,” which will have 21 voting members and seven non-voting members.

The council is charged with four tasks:

  • “Identify concrete, data-driven and evidence-based goals to grow the state’s population, improve educational outcomes from preschool through postsecondary education, attract and retain talent and build long-term, sustainable infrastructure that meets the needs of the population;
  • “Define the gap between Michigan and the best-performing states on the goals identified by the council;
  • “Identify specific short-term, medium-term and long-term policies needed to close these gaps and meet the goals identified by the council; and
  • “Analyze the effectiveness of existing programs and spending dedicated to achieving the goals identified by the council and make recommendations on how to address any gaps between projected revenues and recommended expenditures.”

MAC will be monitoring appointments to the council and its work and will report to membership as needed.

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

 

Land tax proposal highlighted at Mackinac Policy Conference

Detroit Mayor Mike Duggan is calling on the Legislature to enact a land value tax system to tackle the obstacles cities face in revitalization efforts. Duggan made a presentation at this week’s Mackinac Policy Conference on Mackinac Island.

Although MAC does not have legislative language to review at this time, the idea is to increase taxes paid on vacant land and blighted properties and decrease the tax on occupied residential buildings. The intent is to offset the revenue and prevent absent property owners from sitting on property that could otherwise be developed or repurposed.

MAC will watch this proposal closely and work within our committee process to evaluate it.

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

 

Check out videos from 2023 Legislative Conference

MAC’s Deena Bosworth leads the legislative leadership panel at the 2023 Legislative Conference on April 26.

For those unable to attend the recent 2023 Legislative Conference, or if your notes taken are not as comprehensive as you wish, MAC has created a series of videos of state leaders speaking on key issues during the conference. All the links below will take you to MAC’s YouTube channel, where you also can find videos of our Podcast 83.

For all the presentations from the three-day conference, visit MAC’s website.

 

June 8 fiscal webinar to focus on internal controls

The Michigan Department of Treasury and Michigan State University Extension (MSU Extension) are hosting the next “Fiscally Ready” webinar on June 8, from 10 a.m. to 11:30 a.m. ET. This FREE training is designed to assist both appointed and elected officials.

Managing Internal Controls – Register Now

This training will include a deep dive into internal controls. It will cover what internal controls are, why you need them, how they help your community, how to implement them, and where to start.

What will be covered:

  • Building a culture of fiscal sustainability
  • The role of internal controls in fiscal sustainability
  • Understanding internal controls and their importance
  • How internal controls help strengthen your community
  • Best practices for internal controls implementation

Register Now

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.

If you have any questions, please email TreasLocalGov@michigan.gov with the subject line “Fiscally Ready.”

 

Five Michigan counties receive NACo awards

The work of five Michigan counties was honored recently by the National Association of Counties (NACo) via its 2023 Achievement Awards.

The Achievement Awards Program is a non-competitive awards program which seeks to recognize innovative county government programs.

Oakland, Macomb, Washtenaw, Midland and Wayne were honored in at least one of 18 different categories in the award program. Macomb alone was cited a whopping 10 times across the categories, with Oakland claiming 5 citations, Wayne 3 and Midland and Washtenaw 1 each.

Midland was honored for its Communities of Excellence program, which “is designed to bring together businesses, nonprofits and government agencies to work collaboratively towards common goals, using the Baldrige Performance Excellence Program’s framework for organizational excellence. … It provides participating organizations with training, resources and support to help them achieve their goals and become recognized as models of excellence.”

 

Legislative Update 5-26-23

Blog, Legislative, MAC news, MACSC, Marketing, NACo

MAC-backed juvenile justice package begins legislative journey

A package of 20 bills to reform the state’s juvenile justice system, supported by MAC, was introduced in the House this week and referred to the chamber’s Criminal Justice Committee.

The package, House Bills 4624–4643, is a result of the Michigan Task Force on Juvenile Justice Reform’s recommendations provided last July.

The Task Force on Juvenile Justice Reform was established by Gov. Gretchen Whitmer in 2021. The bipartisan task force was chaired by Lt. Governor Gilchrist and included members from all three branches of government, as well as state and local level juvenile justice leaders and advocates. Two county commissioners served on the Task Force, each nominated by MAC. Alisha Bell of Wayne represented a county commissioner from a county with a population over 100,000, and Marlene Webster of Shiawassee represented a county commissioner from a county under 100,000 in population. Rep. Sarah Lightner, a former county commissioner, also served on the Task Force.

The Task Force discovered several challenges to strengthening public safety and improving outcomes for youth. Those challenges, however, led to the set of 32 recommendations last year. Six priority areas have been identified and translated into this 20-bill package.

HB 4624, by Rep. Christine Morse (D-Kalamazoo), enhances the Child Care Fund (CCF) by establishing a minimum framework of juvenile justice best practices statewide, including the use of risk screening and assessment tools. The best practices will be supported by an increase in the reimbursement rate for community-based services from 50 percent to 75 percent. These changes are essential to ensure counties have the resources to implement and utilize these approaches.

(UPDATE: Please see clarification on CCF rate changes in the Aug. 25, 2023, Legislative Update.)

HBs 4625–4629 require the consistent use of validated screening and assessment tools to enable more objective decision-making and allow agencies to better match youth to appropriate supervision and services, reducing their likelihood to recidivate. The bills also expand the Diversion Act so that all offenses, with an exception for youth committing a specified juvenile violation, are eligible for pre-court diversion, based on the use of a risk-screening tool and other factors and limit the time that a youth can be placed on pre-court diversion, unless the court determines that a longer period is needed. While diversion eligibility would be expanded, judicial discretion remains.

HBs 4630 and 4631, by Rep. Lightner (R-Jackson), would expand the Michigan Indigent Defense Commission to include development, oversight, and compliance with youth defense standards in local county defense systems, and expands the State Appellate Defender Office to include appellate services for juveniles.

HBs 4634–4637 eliminate most non-restitution fees and costs associated with juvenile justice system involvement. The bills do not include the elimination of restitution or fees related to the Crime Victims Fund. For restitution and fees related to the Crime Victims Fund, the bills establish a standard procedure for ability to pay, determination of payment schedule, and total to be assessed.

HBs 4638–4642 would strengthen and expand the Office of the Children’s Ombudsman for handling, investigating, and reporting incidents in juvenile facilities.

A committee hearing is expected in the coming weeks, as well as the introduction of this bill package in the Senate.

MAC supports this package and has shared a letter of support with members of the House Criminal Justice Committee.

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

 

MAC releases Opioid Settlement Dashboard

MAC has officially released an Opioid Settlement Dashboard on the Opioid Settlement Resource Center webpage. The dashboard includes six pages of information about current funds and county readiness for spending.

The home page looks at settlement funds, highlighting the maximum number of payments per company, state and local shares, reporting requirements and, most importantly, allows counties to use a dropdown menu to see their estimated total amounts of funds per settlement.

The technical assistance page provides a map of counties that are engaged with MAC specifically for technical assistance related to settlements and highlights when these requests occurred.

Four additional pages utilize data from the Opioid Settlement Baseline Assessment to illustrate county plans for stakeholder engagement, county planning, management of funds and monitoring of funds and activities.

Since many counties are still in the planning phases, the dashboard points to three areas where additional information will be added in the future: areas of investment, links to public-facing plans and reports as well as additional monitoring.

For more information on MAC’s opioid settlement resources, contact Amy Dolinky at dolinky@micounties.org.

 

Podcast 83 episode reviews budget, juvenile justice news

Legislators have enough money to pass a fiscal 2024 budget that includes significant increases in county revenue sharing and in reimbursements from the Child Care Fund, among other county priorities, MAC’s Podcast 83 team reported this week.

Host Stephan Currie and Deena Bosworth, Madeline Fata and Samantha Gibson of MAC’s Governmental Affairs Team reviewed a variety of positive developments for counties in recent days:

  • State budget: The Consensus Revenue Estimating Conference, held May 19, showed that legislators have the resources to spend at least $14 billion in the General Fund, which is good news for revenue sharing, among other items.
  • Revenue sharing: Bosworth reported great process on MAC’s Revenue Sharing Trust Fund project, a joint effort with local governments, to create a dedicated fund, backed by a percentage of sales tax revenues, for revenue sharing.
  • Juvenile justice: Gibson reported on a 20-bill package filed in Lansing to enact a wide variety of MAC-supported recommendations from a state task force that studied improvements for the juvenile justice system.
  • Statewide septic code: Fata reported on the expected filing of legislation to enact a statewide septic code and MAC’s ongoing review of that legislation.

View the full video of the episode, recorded on May 22, by clicking here.

Previous episodes can be seen at MAC’s YouTube Channel.

And you always can find details about Podcast 83 on the MAC website.

 

Webinar will focus on Opioid Settlement Exhibit E and allowable uses

On June 8, the second webinar in the Opioid Settlement Technical Assistance Learning Series will be held from 2:30 p.m. to  3:30 p.m. (EST), providing a discussion on Exhibit E. The series is hosted by the Michigan Department of Health and Human Services, in partnership with Michigan State University, University of Michigan and Wayne State University as part of their Technical Assistance Collaborative.

The webinars are intended to provide information from experts for officials and representatives from counties, municipalities and townships, including community members, to aid in their opioid settlement investment processes. This webinar, titled “Overview of the Opioid Settlement and Discussion on Exhibit E,” will focus on allowable uses of funding. See the flier and register by clicking “Register Today.”

For more information on opioid settlements are technical assistance, contact Amy Dolinky at dolinky@micounties.org.

 

MAC offices closed on Memorial Day

MAC’s offices in Lansing will be closed on Monday, May 29 in observance of Memorial Day.

Normal office hours will resume at 8 a.m. on Tuesday, May 30.

 

Legislative Update 5-19-23

Blog, Events, Legislative, MAC news, MACSC, Marketing, NACo

FY24 budget remains on track after revenue conference

State legislators now in the final phases of preparation for the fiscal 2024 budget still have the resources to cover General Fund spending in the $14 billion range, state experts told the Consensus Revenue Estimating Conference today.

While the conference finalized headline revenue figures to use for FY24 at levels substantially below their January 2023 estimates, the actual resources available to state budgeters are largely unchanged from earlier in this year, MAC is told.

This is due to the impact and timing of various tax policy changes implemented in recent months, such as the elimination of the “pension tax,” the increase in the Earned Income Tax Credit and a cut in the personal income tax rate.

In the vote Friday morning, the conference adopted a net General Fund revenue total of $13.24 billion, an apparent huge decrease from January estimates.

However, resources for FY24 and carrying over from prior budget years allow for both the House and Senate appropriations bills to be funded as they presently stand. The chambers, though, still have to reconcile differences in their budgets before the Legislature’s mandated deadline of June 30 to complete budget work.

The FY24 budget would take effect on Oct. 1, 2023.

For FY24, the state would be $12 billion underneath the constitutional revenue limit imposed by the Headlee Amendment approved by voters in 1978.

For more information on MAC’s budget advocacy, contact Deena Bosworth at bosworth@micounties.org.

 

MAC continues to monitor solar taxation bills

Legislation to create an optional structure for the taxes levied on solar facilities was discussed this week in the House Committee on Tax Policy. 

After years of participation in workgroups to ensure local options, a stable funding source, appropriate zoning considerations and adequate local reimbursements, MAC has taken a neutral position on the legislation.

House Bills 4317 and 4318, by Reps. Curt VanderWall (R-Mason) and Cynthia Neeley (D-Genesee) respectively, would allow for the creation of solar energy districts by local municipalities after a mandatory public hearing. Subsequently, solar energy developers could apply for an exemption from local property taxes and instead pay a flat rate of $7,000 per megawatt of nameplate capacity for the proposed solar energy facility, instead of ad valorem property taxes. The payment would be locked in for 20 years and distributed based on the proportions of normal taxes that would have been paid to each taxing unit. 

An additional financial incentive would be offered for developers that choose to site their facilities on brownfield properties, in opportunity zones, as a secondary use on already improved real property (i.e., rooftops) or on state-owned property. In such cases, the reimbursement rate would be $2,000 per megawatt of nameplate capacity. 

The impetus behind the legislation is twofold. First, this methodology for compensating locals for lost taxes will provide financial predictability for the developers and the locals, hopefully avoiding the same problems we have had with the legal challenges to the valuation of wind turbines.  Second, the rate and process should serve as incentives for developers to build more renewable energy facilities in the state.  

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

 

Bills introduced to create a statewide septic code

Legislation establishing a statewide septic code has been introduced in both the House and Senate. House Bills 4479–80, by Reps. Phil Skaggs (D-Kent) and Carrie Rheingans (D-Washtenaw) respectively, and Senate Bills 299–300, by Sen. Sam Singh (D-Ingham), would require homeowners with onsite wastewater treatment systems to have them inspected every five years.

As of 2020, about 30 percent of state households relied on septic systems, but many are aging and facing failure. The intent of the legislation is to protect waterways from contamination and combat illness caused by increased levels of E. coli and algae blooms. While Michigan remains the only state in the nation without a statewide septic code, the proposed policy changes may be overly burdensome.

Local public health departments will be authorized to conduct inspections, issue permits and respond to complaints of failure under the bills. A permit would be required for any installation, alteration or repair of a septic system. Additionally, a building permit may not be issued for any construction on a premises served by a septic system unless a permit by the health department is first issued.

Further, homeowners would be liable for the cost of the inspection and any repairs or replacements deemed necessary. It remains unclear how much an inspection would cost, but a $25 administrative fee will be added to each inspection to be placed in a fund used to help local health departments complete their duties. The fund also will provide some grants to homeowners who are below a certain poverty threshold.

At present, a county can adopt a point-of-sale ordinance on septic systems. Should this legislation pass, however, they would lose that ability. There are 11 counties who have such an ordinance on the books, and they would be given seven years after the bills’ effective date to phase them out.

A technical advisory committee would be created and would include representatives from various regional health departments, engineers, septic manufacturers and installers, among others. The committee will be responsible for writing the septic code and promulgating rules. They will be required to consider local soil conditions during this process, so while it may be a uniform code, it will be crafted to the needs of local ecosystems.

MAC does not yet have a position on the legislation but has many concerns. We anticipate a workgroup will be created to allow stakeholders and bill sponsors to work through the details in the coming months.

For more information on this issue, contact Madeline Fata at fata@micounties.org.

 

Federal legislation introduced to revisit Medicaid Inmate Exclusion Policy

Two bipartisan bills have been introduced in both the U.S. House and Senate to address the Medicaid Inmate Exclusion Policy (MEIP). The Due Process Continuity of Care Act and the Reentry Act were introduced in March, which would amend the Medicaid Inmate Exclusion Policy.

The Medicaid Inmate Exclusion Policy is a federal statute that terminates access to federal health benefits at the time of arrest. These bills would allow continuity of care via access to critical health services for incarcerated individuals. The Due Process Continuity of Care Act would “allow pretrial detainees to receive Medicaid benefits at the option of the state and provide $50 million in planning grant dollars to states and localities for implementing the MIEP repeal, improving the quality of care provided in jails and enhancing the number of available providers to treat this population.”

The Reentry Act would “allow Medicaid payment for medical services furnished to an eligible incarcerated individual during the 30-day period preceding the individual’s release.” MAC, along with other stakeholders, has requested the Michigan Department of Health and Human Services apply for a Section 1115 waiver relating to the MIEP, allowing for Medicaid eligibility for incarcerated individuals prior to release.

MAC supports these bills and access to better care for incarcerated individuals in county jails. Should these bills pass, counties will have a streamlined process to provide effective behavioral health care and services for transitions to community care, while recidivism rates and risk for post-release overdoses should fall.

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

 

Podcast 83 discusses state budget, ongoing gravel control battle

Progress on the state’s fiscal 2024 budget continues to look promising for Michigan counties, and MAC and its allies are having success in fending off ill-considered mining legislation in the Michigan House, MAC’s Podcast 83 team said in its most recent episode.

Host Stephan Currie and guests Madeline Fata and Samantha Gibson of MAC’s Governmental Affairs staff reviewed the last week’s activity in Lansing in this episode, focusing on:

  • The state budget and the May 19 Consensus Revenue Estimating Conference, which may show state resources are not as high as were once expected;
  • The ongoing battle over gravel and sand mining regulation, with MAC and its allies battling against an attack on local control;
  • The latest on juvenile justice reform legislation, one of MAC’s key priorities for 2023; and
  • The arrival of legislation for a statewide septic code.

View the full video of the episode, recorded on May 15, by clicking here.

Previous episodes can be seen at MAC’s YouTube Channel.

And you always can find details about Podcast 83 on the MAC website.

 

Next ‘Fiscally Ready’ session set for May 23

The Michigan Department of Treasury and Michigan State University Extension will co-host the next Fiscally Ready Communities training webinar, titled, “Financial Best Practices,” at 10 a.m. on Tuesday, May 23.

This FREE, 90-minute training, updated for 2023, discusses the fundamental best practices for fiscal and operational planning and provides an overview of best practices in financial policies and good governance.

Training topics include:

  • Budgets
  • Multi-Year Budget Forecasting Tool
  • Cash controls
  • Debt
  • Grants
  • Internal controls
  • Purchasing policies
  • Receipting

Please register for webinar at https://events.anr.msu.edu/fiscalbestpractice.

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.

If you have any questions, please email TreasLocalGov@michigan.gov with the subject line “Fiscally Ready.”

 

Legislative Update 5-12-23

NACo, Blog, Events, Legislative, MAC news

Revenue sharing boost, other county priorities clear another budget hurdle

This week, the full House and Senate approved their fiscal 2024 budgets along party-line votes. Current plans include significant state investments for counties in a variety of areas. There are some key differences in House and Senate versions, however, which must now be resolved in joint conference committees. (To see the full text of any budget bill, click here and search by the bill number.)

Revenue sharing

House Bill 4292:

  • 17 percent hike in revenue sharing, divided into several segments:
    • 5 percentage points would be ongoing and for general use
    • 5 percentage points would be a one-time appropriation for general use
    • 2 percentage points would be ongoing and restricted to public safety uses
    • 5 percentage points would be a one-time appropriation restricted to public safety uses

These changes would place FY24 revenue sharing at more than $285 million.

Senate Bill 189:

  • Includes the same ongoing and one-time boosts for general use as HB 4292
  • Does not include additional funding for public safety
  • Ends the County Incentive Program and its requirements for the annual submission of verification of the posting of budgets online and the publication of citizens guides
  • Allows access to any unallocated funds from a $750 million appropriation for municipal pension assistance for use as grants for local governments with OPEB obligations funded at 7 percent or less
  • Adds a new program within the Department of Attorney General to assist communities with high crime, allocating $10 million and 45 full-time positions

The Senate plan would place FY24 revenue sharing at $269 million.

Health and human services

House Bill 4310:

  • Direct care wage increase
    • $2.35/hour and $140 million for an additional $1/hour increase on a one-time basis
  • Child Care Fund (community-based state reimbursement)
    • $31.5 million to implement a recommendation from the Michigan Task Force on Juvenile Justice Reform
    • Statutorily increases the state Child Care Fund Reimbursement rate from 50 percent to 75 percent for community-based juvenile justice services
  • Foster Family Maintenance Payment Increase
    • $12 million to fund a 5 percent increase to daily payments
  • Behavioral Health Recruiting and Retention (one-time)
    • $5 million for recruitment and retention programs for behavioral health professionals (using federal coronavirus state fiscal recovery funds)
  • Medicaid Mental Health Local Match
    • $5 million to replace a like amount of local funding used for Medicaid mental health supports and services (This amount reflects the fourth year of phasing out to the local match portion over a five-year period.)
  • Essential Local Public Health Services Increase
    • $14 million to support an estimated 50 percent of the costs of essential local public health services
  • Court-operated facility construction
    • $25 million to construct a 32-bed court operated facility in northern Michigan for youth involved in the court system

Senate Bill 190:

  • Direct care worker wage increases
    • 65 cents per hour increase in direct care worker wages
    • $3 per hour increase to non-direct care staff at long-term care facilities
  • Child Care Fund reimbursement rates
    • $31.5 million for increase to 75 percent in Child Care Fund for community-based services
  • Support for state share of Essential Local Public Health Services
    • $30 million for local health departments, ongoing support for essential local public health services
Public safety

House Bill 4280:

  • Michigan Indigent Defense Commission Grants
    • $57.2 million for Standard 8 (Standard 8 pertains to economic disincentives and incentives, including rates of payment for salaried public defenders, compensation and expenses for assigned counsel, contracting for indigent defense services, conflict counsel, reimbursements and payments.)

Senate Bill 195:

  • Michigan Indigent Defense Commission Grants
    • $30 million for Standard 8

Transportation

House Bill 4309:

  • $6.81 billion in total funding
  • Adds $400 million for local road preservation, which would be distributed to local road agencies based on population
    • This is in addition to Public Act 51 dollars
  • $100 placeholder for bridge bundling program
  • $75 million in local bus operating investments
  • $33 million for rail grade separation

Senate Bill 178:

  • $6.83 billion in total funding
  • $150 million for bridge bundling program
  • $100 million for Intermodal Capital Investment Grant Program
  • $150 million for local road funding projects for the largest six counties in Michigan, distributed by population
    • This is in addition to Public Act 51 dollars
  • $100 million for critical infrastructure projects
  • $100 million for high-speed rail
  • $50 million for a rail grade separation project in Trenton

Environment

House Bill 4249:

  • $1.45 billion in total spending ($395.5 million is General Fund)
  • $110 million in General Fund for replacing lead service lines and providing technical assistance to communities, supplemented by $100 million in one-time federal Coronavirus State Fiscal Recovery Fund dollars
  • $40 million for grants to communities to establish wind, solar and energy storage facilities
  • $20 million for dam safety and risk reduction

Senate Bill 199:

  • $1.08 billion in total spending ($334.2 million is General Fund)
  • $100 million for replacing lead service lines and providing technical assistance to communities
  • $25 million for environmental justice and contaminated site clean-up
  • $25 million for dam safety and risk reduction

The Consensus Revenue Estimating Conference (CREC) is scheduled for Friday, May 19 to set final resource numbers for FY24. After CREC, conference committees will be held. Final budget numbers are yet to be determined.

For more information on the budget, contact Samantha Gibson at gibson@micounties.org, Madeline Fata at fata@micounties.org or Deena Bosworth at bosworth@micounties.org.

 

MAC-opposed mining regulation bill still in committee

A House committee on Tuesday deferred action on legislation that attacks local control after local governments and residents delivered thoughtful testimony to keep aggregate zoning authority out of the hands of the state.

MAC appreciates the support of members who have used our digital advocacy tool in recent days to send messages of opposition to House Bills 4526-28.

The House Regulatory Reform Committee held a two-hour session Tuesday on the bills, which aim to eliminate local control of sand and gravel mining operations and grant regulating authority to the Department of Environment, Great Lakes and Energy (EGLE).

Aggregate and construction industries argued in favor of the bills, based largely on how much money could be saved by placing the permitting power in the hands of the state and the inconvenience of having to deal with townships and public input.

EGLE has not taken a position, but department officials noted the department currently oversees just eight active mining permits and are uncertain how many more would fall under their purview should this legislation pass. The speakers were also unclear on the number of full-time employees they would need to run the program.

The Michigan Townships Association (MTA) and Michigan Municipal League (MML) spoke strongly in opposition to the legislation. In its testimony, MTA disproved several claims made by proponents, including one that 37 of its members had delayed, denied or disrupted the permitting process. In reality, MTA noted, these townships had simply hired attorneys to help review the proposals.

Though MAC did not testify, the association remains opposed to the legislation, as it would set a dangerous precedent on preemption of local control in other policy areas.

While the committee took no action on the bills this week, it will resume its review on May 16. MAC urges members to use our digital advocacy tool to send a message of opposition to their members of the Michigan House without delay.

For more information on this issue, contact Madeline Fata at fata@micounties.org.

 

Local control under multiple attacks under Capitol dome

In the newest episode of MAC’s Podcast 83, host Stephan Currie and the MAC Governmental Affairs Team of Deena Bosworth, Madeline Fata and Samantha Gibson catch up on legislative activity, particularly the following:

  • Attack on local control, part I (mining): House Bills 4526-28 would gut the principle of local control in a bid to make it easier to site gravel and sand pits around Michigan.
  • Attack on local control, part II (labor): House Bill 4438 would extend binding arbitration to county correctional officers, thereby transferring decisions on county staffing and budget matters to unaccountable third parties.

MAC is asking members to use our digital advocacy tool to send messages of opposition to both legislative attacks as soon as possible.

However, those bills, and potentially every other legislative initiative, could be halted in a matter of weeks due to political gamesmanship in Lansing and the action of “sine die.”

As Bosworth explained, the narrow Democratic majorities in the House and Senate lack the votes on their own to give the fiscal year 2024 budget immediate effect to ensure the fiscal plan starts with the beginning of the state’s budget year on Oct. 1. The talk in Lansing is Senate Republicans will refuse to allow immediate effect, thereby forcing the effective date of state spending bills 90 days beyond Oct. 1, a fiscal crisis.

To avert this, Democrats are looking at “sine die.” To learn more, see the full video, taped on May 8, 2023.

Previous episodes can be seen at MAC’s YouTube Channel.

And you always can find details about Podcast 83 on the MAC website.

 

Federal mandate could worsen medical care facility staffing crisis

An expected federal staffing mandate for nursing facilities could hurt medical care facilities (MCFs) that already are dealing with staffing shortages.

According to the Centers for Medicare and Medicaid Services, federal law requires Medicare and Medicaid-certified nursing homes to provide 24-hour licensed services, with a registered professional nurse used at least eight hours per day, seven days a week.

There is potential for the federal government to implement increased staffing requirements. Penalties for not meeting likely mandated staffing ratios will be detrimental to facilities that are already struggling to recruit qualified staff.

Michigan, though, already is facing a loss of about 10,000 nursing facility employees, or 17 percent of Michigan’s long-term care workforce, says the Health Care Association of Michigan (HCAM).

MAC and the Michigan Counties Medical Care Facilities Council, which represents the county MCFs, will continue to watch for federal mandates pertaining to increased staffing ratios and any potential penalties for not being able to meet such standards.

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

 

Save taxes and trees by enrolling in MDARD’s Qualified Forest Program

The Michigan Department of Agriculture and Rural Development’s Qualified Forest Program (QFP) is now accepting applications for the 2024 tax year with applications being due no later 11:59 p.m. on Friday, Sept. 1, 2023.

“MDARD’s Qualified Forest Program is designed to encourage Michigan’s landowners to actively manage their privately owned forests for commercial harvest, wildlife habitat enhancement, and improvement of other forest resources,” said Jim Johnson, Director of MDARD’s Environmental Stewardship Division “The program provides two potential tax benefits for enrolled landowners in exchange for managing their forests in a sustainable fashion.”

The two possible benefits which helps save landowners on property taxes are:

  • School Tax Affidavit —Authorizes an exemption from the local school operation millage up to 18 mills of school operating taxes a year. The exemption only applies to land value.
  • Taxable Value Affidavit—Keeps the previous owner’s property taxable value from uncapping on enrolled land after a transfer of ownership.

Requirements for the program:

  • Parcels must be 20 acres or larger to qualify
  • A forest management plan must be written by a qualified forester
  • Buildings and structures are allowed, but are not eligible for exemption
  • Enrolled landowners must pay an annual fee; public access is not required

For parcels less than 40 acres, no less than 80 percent of that parcel must be stocked with productive forest. For parcels of 40 acres or more, at least 50 percent must be stocked with productive forest.

To apply, landowners are required to submit a QFP Application form, QFP Stand Summary and Harvest Schedule, copy of the most recent deed and/or land contract, copy of a tax bill(s), $50 application fee, and forest management plan.

To get started with the Qualified Forest Program or for more information, visit the www.Michigan.gov/QFP, call 517-284-5630, or reach out to your local conservation district.

 

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