Legislative Update 5-19-23

May 19, 2023Blog, 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.”

Staff picks

Counties address the social determinants of health through mobile health services (NACo News)
Mental health statistics reveal a crisis in America (RouteFifty)
Colorado man tries to trade places with dog to avoid DUI arrest (Associated Press)
Grand Traverse County honored in Michigan Healthy Worksite Awards (Department of Health and Human Services)

Legislative Update 5-12-23

May 12, 2023NACo, 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.

Staff picks

Legislative Update 5-5-23

May 5, 2023Blog, Events, Legislative, MAC news, Marketing, NACo

MAC needs your help in stopping attack on local control over mining

Legislation preempting local control over sand and gravel mining was introduced this week in the House. In a joint statement with the Michigan Townships Association (MTA) and Michigan Municipal League (MML), MAC opposed House Bills 4526, 4527 and 4528, by Reps. Pat Outman (R-Montcalm), Tyrone Carter (D-Wayne), and Angela Witwer (D-Eaton) respectively, which aim to eliminate local control of aggregate mining operations and place the regulating authority in the hands of the Department of Environment, Great Lakes, and Energy (EGLE).

Should this legislation become law, local governments would have no jurisdiction over the issuance of a permit, approval, or other authorization for the location, operation, abandonment, or reclamation of an aggregate mine. EGLE is being granted the authority to usurp local officials to work directly with the aggregate industry to approve mining sites and their activities, with little to no community input.

MAC, MTA, and MML worked together last term to block nearly identical legislation. This move would set a dangerous precedent on preemption of local control in other policy areas.

There has been a lack of transparency from the legislature during this process. Local input has not been sought on this legislation, indicating an unwillingness to negotiate.

HBs 4526-28 have been referred to the House Committee on Regulatory Reform. We anticipate they will be approved by the committee next Tuesday, May 9.

MAC has set up an easy digital campaign for you to send your opposition to your state representative. To begin, just click this link TODAY!

Your voices are vital during this process. There is power in numbers!

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

State nixes Camp Grayling expansion after locals weigh in

Following input from county officials, the Department of Natural Resources (DNR) has rejected the Department of Military and Veterans Affairs’ proposal to expand Camp Grayling in Crawford County.

The DMVA sought to lease 162,000 acres of DNR-owned land surrounding the National Guard’s Camp Grayling facility for additional training activities for a 20-year period. The rejection came after a great deal of pushback from residents and public bodies in the area.

The counties of Crawford, Iosco, Kalkaska, and Roscommon all opposed the expansion. There were concerns that the training activities would negatively impact the quality of life for the communities surrounding Camp Grayling due to potential groundwater contamination, noise pollution, etc. Additionally, the land the DMVA desired is suitable for recreational activities and many advocated for its preservation.

There is a Memorandum of Understanding between the DNR and DMVA that would allow the DMVA to reapply for a portion of the land for low-impact training operations. Should this be approved, the DMVA would only have access to 52,000 acres and it would remain open to the public. The DNR has not yet indicated whether they would approve this application.

For more information about MAC’s land-use policies, contact Madeline Fata at fata@micounties.org.

Podcast 83: State budget could be quite good for counties, but key hurdle looms on May 19

Host Stephan Currie led MAC governmental affairs associates Samantha Gibson and Madeline Fata through the recent budget activity in Lansing that directly affects the county bottom line in the latest episode of Podcast 83.

Among key points made during the episode:

Counties could see a big increase in revenue sharing funds if the House and Gov. Gretchen Whitmer get their way.
County reimbursement via the Child Care Fund could be headed to 75 percent, from the current 50 percent.
Majority Democrats on transportation spending panels voted to spend more money on infrastructure than Gov. Whitmer requested.

All this budget work, however, hinges on the results of the Consensus Revenue Estimating Conference scheduled for May 19. At that point, legislators will know exactly how much revenue is available for use in the fiscal 2024 budget.

Currie and guests also recapped MAC’s recent Legislative Conference, which was highlighted by a panel of legislative leaders discussing their views on key county topics.

See the full video of the session, taped on May 1, 2023.

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

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

Opioid settlement webinar series starts on May 16

On May 16, the first of many webinars in an Opioid Settlement Technical Assistance Learning Series will be held. The series is hosted by the Michigan Department of Health and Human Services (MDHHS), in partnership with Michigan State University, the 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. The first webinar, titled “Determining Local Needs and Assets through Engaged Community Assessment” will focus on how to engage community stakeholders to assist in understanding the needs and assets of the community.

Click here to see the flier and to begin your registration process.

For more information on opioid settlements and technical assistance, contact MAC’s Amy Dolinky at dolinky@micounties.org.

MAC staffers brief West Central commissioners on legislative activity

County leaders from Lake, Manistee, Mason, Mecosta, Newaygo, Oceana and Osceola received a legislative update from MAC’s Madeline Fata (right) and Samantha Gibson this week during a West Central Michigan Counties Association meeting in Mason County.

Report gives evidence-based options on using opioid funds

Evidence Based Strategies for Abatement of Harms from the Opioid Epidemic is a report that was created by Harvard Medical School, Blavatnik Institute for Health Care Policy and a team of authors. The authors describe this resource as having three main focuses:

“Generating a list of evidence-based abatement options, describing the infrastructure and context required to successfully implement such efforts, and assembling existing evidence about the potential impact of abatement options.”
“Providing cost estimates for scaling the activities.”
“Considering how the political, financial, and infrastructure circumstances of states may make some packages of abatement programs more practical than others.”

This resource provides tables within in strategy that outline a summary of the strategy, supporting evidence and information on outcomes and the level of support for each strategy. Information is presented related to different forms of treatment, primary care and hospital settings, recovery supports, harm reduction, individuals involved with the criminal-legal system, families and communities, data and policies. This report provides in-depth information and context around public health activities that can serve as a type of menu of options for local governments determining the most appropriate evidence-based strategies for their communities.

For more information on opioid settlements and technical assistance, contact MAC’s Amy Dolinky at dolinky@micounties.org.

Seven Michigan county officials graduate from NACo academy

MAC congratulates the January 2023 NACo Leadership Academy graduates from Michigan. They join more than 6,000 graduates and current participants from across the country benefitting from the 12-week online program enabling existing and emerging county leaders to achieve their highest potential:

Erika Espeland, GIS director, Cass County
Monica McMichael, clerk/register, of deeds, Cass County
Ryan Laylin, commissioner, Cass County
Tami Stewart, equalization director, Cass County
Trudy Galla, planning director, Leelanau County
Nathan Roskey, administrator/controller, Sanilac County
Tyler Ray, animal control director, Tuscola County

The August cohort for the High Performance Leadership Academy is just around the corner. Prioritize leadership development today and deliver results for your team and county. Scholarships are available, including a fee of only $1,000 for the first person to register from a county that has not previously participated in the program.

Staff picks

State updates endangered animal list (MSU Extension)
On implementing the Promote the Vote constitutional amendment (Citizens Research Council of Michigan)
COVID dropped to fourth-leading cause of death in U.S. last year (Associated Press)
A plea for rethinking America’s parking addiction (Bloomberg’s City Lab)

Legislative Update 4-28-23

April 28, 2023Blog, Events, Legislative, MAC news, MACSC, Marketing, NACo

County revenue sharing in line for big boost under budget plans

County revenue sharing could grow by as much as 17 percent in fiscal 2024 under decisions made this week by key subcommittees in the Michigan House and Senate.

In the House, the Appropriations Subcommittee on the General Government approved House Bill 4292, by Rep. Felicia Brabec (D-Washtenaw), which follows Gov. Gretchen Whitmer’s plan for a 17 percent hike in revenue sharing.

This increase is 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

In all, these changes would place FY24 revenue sharing at more than $285 million.

The Senate’s boost is smaller than the House’s but still large. Senate Bill 189, by Sen. John Cherry (D-Genesee), includes the same ongoing and one-time boosts for general use as the House (see bullets 1 and 2 above), but it does not include the additional funds for public safety.

Overall, the Senate’s plan would have revenue sharing at $269 million for FY24.

In another positive note, and based on a MAC request, the Senate subcommittee plan would end the County Incentive Program and its requirements for the annual submission of verification of the posting of budgets online and the publication of citizen guides.

The Senate proposal also allows access to any unallocated funds from a $750 million appropriation for municipal pension assistance for use as grants for those local governments with OPEB obligations funded at 7 percent or less. An exact allocation for this will not be known until pension grants have been allocated.

Finally, on the Senate side, Sen. Cherry recommended a new program in the Department of Attorney General to assist communities with high crime by allocating $10 million and 45 full-time positions.

To be clear, these amounts are far from final. The next huge budget step is the Consensus Revenue Estimating Conference (CREC) on May 19 to set final resource numbers for FY24. Following CREC, committee chairs will be given more specific budget targets and will amend the bills accordingly.

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

Five commissioners elected to MAC Board; Wayne’s Daub appointed as second vice president

New Board members (l-r) Sarah Lucido, Rick Shaffer, Dwight Washington and Bryan Kolk take their oaths on April 26. Not pictured: Donald O’Farrell.

During special elections held April 25 at the Michigan Counties Legislative Conference, county commissioners elected five new members to the Michigan Association of Counties Board of Directors.

The newest members of the 16-member governing body are:

Dwight Washington of Clinton County
Donald O’Farrell of Iosco County
Sarah Lucido of Macomb County
Bryan Kolk of Newaygo County
Rick Shaffer of St. Joseph County

After they were sworn in on April 26, the five participated in a vote to name Melissa Daub of Wayne County as the MAC Second Vice President. Daub joined the MAC Board in 2021.

Also serving as officers for the Board in MAC’s 125th Anniversary year are President Stan Ponstein of Kent County and First Vice President Jim Storey of Allegan County.

For more information on the MAC Board, click here.

Association may be oldest in U.S., NACo leader tells 2023 conference

Matthew Chase addresses the 2023 Legislative Conference.

MAC and its members were treated to two anniversary presents at the 2023 Michigan Counties Legislative Conference.

Prior to his remarks on April 25 to a plenary session of the event, which drew approximately 300 to Lansing, Matthew Chase, CEO of the National Association of Counties, presented President Stan Ponstein and other MAC leaders a crystal trophy for the MAC display case.

More importantly, and surprisingly, Chase shared a bit of news: MAC just may be the oldest counties association in the entire country!

“I can say we were equal parts surprised and pleased to hear Matt’s nugget of news about our historic position,” said Stephan Currie, MAC’s executive director. “He did tell us his research isn’t quite complete, but, as of now, there’s no information that any association is older than MAC. If that holds, we will have even more to celebrate at the Anniversary Gala we are planning for the Annual Conference in October.”

The conference also included:

State of MAC and Legislative Update reports
A briefing on the state budget from State Budget Director Chris Harkins
A discussion on legislative priorities with the leaders of the Michigan House and Senate
12 policy breakout sessions

Presentations and other documents from the conference can be found here.

Photos from the conference can be found here.

MAC’s next major event is the Annual Conference, planned for Oct. 1-3 at the Radisson Hotel in downtown Kalamazoo. Registration for that event should open in early August.

For the latest information on MAC events, click here.

Child Care Fund boost highlights DHHS budget plans

A MAC-supported increase in the reimbursement rate for the Child Care Fund is included in both legislative versions of the fiscal 2024 budget for the Department of Health and Human Services that cleared key subcommittees this week.

In line with a recommendation of the Task Force on Juvenile Justice Reform, the budget plans boost the county Child Care Fund reimbursement rate from 50 percent to 75 percent, a $31.5 million increase. This conforms with Gov. Gretchen Whitmer’s FY24 budget plan.

The House subcommittee also recommended:

$1.3 million to provide services at Bay Pines and Shawono juvenile justices facilities (another recommendation from the Task Force on Juvenile Justice Reform)
$19.3 million to fund an 8 percent increase to daily maintenance payments to foster parents, adoptive parents and juvenile guardians (a MAC legislative priority)
Placing Michigan’s foster care per diem rate above the national average
$25 million to build a juvenile justice facility in Northern Michigan (another MAC priority)
$14 million for the state share towards local public health departments
$5 million to replace local funding used for Medicaid mental health supports and services (this reflects the fourth year of phasing out the local match portion over a five-year period)

The Senate recommendation includes $30 million to support the state share for increases to local public health departments, which aligns with the governor’s budget plan. When compared to the House recommendation, you will see the House has only recommended funding for approximately 50 percent of the costs of local public health services.

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

Legislative panels add dollars to governor’s transportation plans

Road dollars in fiscal 2024 would be more plentiful than Gov. Gretchen Whitmer had proposed in February under spending plans approved by House and Senate subcommittees this week.

Both chambers appropriated more than Whitmer recommended; the House version is $222.6 million over, while the Senate’s is $240 million over.

The largest addition by the House is $400 million for local road preservation, which would be distributed to local road agencies based on population. The House left a $100 placeholder for the bridge bundling program, so the $200 million the governor had recommended was not included in the House plan.

The House also included:

$75 million in local bus operating investments
$33 million for rail grade separations

The Senate also cut the governor’s bridge bundling program, reducing it from $200 million to $150 million. They also cut the Intermodal Capital Investment Grant Program from $160 million to $100 million.

Notably, the Senate added $150 million for local road funding projects for the six most populous counties (Wayne, Oakland, Macomb, Kent, Genesee, Washtenaw), distributed by population. Subcommittee Chair Sen. Veronica Klinefelt (D-Macomb) explained that while the larger counties pay more into the Michigan Transportation Fund, they don’t always see the return on investment.

The Senate also included:

$100 million for critical infrastructure projects
$100 million for high-speed rail
$50 million for a single rail grade separation project in Trenton

The budget process will continue in May. MAC will provide updates as necessary.

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

Pay boosts for medical workers advance in Legislature

Employees at medical care facilities would be looking at pay boosts under budget plans approved by Health and Human Services Appropriations subcommittees for fiscal 2024 this week.

The Senate recommendation includes a 65-cent boost per hour for direct care workers and a $3 per hour wage increase for non-direct care staff at long-term care facilities. The House recommendation includes $90 million to increase non-clinical nursing facility staff hourly wages by $3.85 per hour. This amount would reflect the current $2.35 direct care wage increase, plus the additional $1.50 proposed for the current cohort of direct care workers. The House budget recommendation also included a $1.50 per hour direct care worker wage increase.

The FY24 budget is anticipated to be finalized in June.

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

Bid to expand binding arbitration resumes in Legislature

County correctional officers would qualify for binding arbitration under a bill filed in Lansing on April 20.

House Bill 4438, by Rep. Kelly Breen (D-Oakland), would expand binding arbitration beyond police and fire labor bargaining units to county correctional officers. The bill is likely to advance in the Legislature this year.

HB 4438 is a reintroduction from last term, which MAC fought against. MAC has long opposed any expansion of binding arbitration to other bargaining units due to the cost of the process, the long-term liabilities associated with third-party decisions and the unequal treatment such a system provides to those bargaining units. The Michigan Public Employment Relations Act already provides for bargaining rights without tying the hands of the county in binding arbitration.

MAC plans to continue opposition to the bill.

However, in light of the legislative majority’s strong support for unions and collective bargaining units, it will certainly be more difficult to shut it down this time around. The bill has been referred to the House Committee on Criminal Justice.

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

Boat wrap recycling program now under way

The Michigan Recycling Coalition (MRC), a statewide recycling advocate and association, is currently organizing another year of “Recycle Run,” a boat shrink-wrap recycling program. Last year alone, the program helped recycle 90,000 pounds of plastic.

The program is open and accepting new participants until June 1, 2023. Recycle Run is accessible to boaters across the state and allows for shrink-wrap boat covers to be diverted from landfills.

To participate, boaters purchase the Recycle Run bags from Dr. Shrink’s website for $7. A bag holds approximately one large boat cover or two small boat covers. Interested participants will also sign up on the Michigan Recycling Coalition’s website to officially register for the collection program. Participants with more than 15 bags of material qualify for a free direct pick-up by the MRC’s program partners. Participants with less material can participate by dropping their bags off at one of the many volunteer locations around the state. These boat covers are otherwise not accepted in curbside recycling programs.

Michigan has more than 800,000 registered boats. For every bag of covers that is recycled, we save:

115 KWH of energy
5 gallons of oil
20 cubic feet of landfill space

The MRC is a nonprofit that fosters sustainability by leading, educating and mobilizing businesses, governments, nonprofits and individuals to advance their own and collective resource use and recovery initiatives in Michigan.

NACo: Highlight the county role in mental health in May

Join the National Association of Counties (NACo) and the National Association of County Behavioral Health and Developmental Disability Directors in recognizing Mental Health Awareness Month, May 2023, to highlight the county role in behavioral health.

Earlier this year, NACo launched a Commission on Mental Health and Wellbeing to address the ever-growing mental health crisis. Next month, NACo will release research on essential county perspectives on high-quality, accessible mental health services.

Mental Health Awareness Month is your opportunity to shine a light on mental health awareness, services, and innovation, and advance behavioral health policy priorities.

Explore NACo’s toolkit of resources to help you participate, including a resolution template, sample letters to Congress, press release and social media templates, and more. We encourage counties to pursue any effort – large or small.

We look forward to featuring county efforts – submit your plan for Mental Health Awareness Month here.

Staff picks

Michigan county officials meet to tackle big issues (WILX-TV)
Walmart is sued over ‘dark store theory’ as thousands of local shoppers fear being hit by ‘devastating’ tax bill (The Sun)
California county recycles all its wastewater, a world first (Governing)
How to leverage public-private partnerships to drive economic development (American City and County)

Legislative Update 4-21-23

April 21, 2023Blog, Events, Legislative, MAC news, MACSC, Marketing, NACo

Legislative Conference begins 3-day run on Monday

Nearly 300 county leaders, policy experts and others will converge on Lansing on Monday for the start of the 2023 Michigan Counties Legislative Conference, the first major conference of MAC’s 125^th Anniversary year.

Attendees may check in for the conference starting at noon at the Radisson Hotel in downtown Lansing. Light snacks will be available in the registration area.

Policy breakouts get under way for MAC members at 2 p.m., with sessions on Michigan’s trails system, the trial court funding crisis and the impact of electric vehicles on road funding in our state.

Plenary sessions on Tuesday and Wednesday will feature:

Matthew Chase, CEO of the National Association of Counties
Chris Harkins, Michigan’s state budget director
A legislative leadership panel

Commissioners attending the conference also will participate in MAC caucus elections on Tuesday to fill five seats on the MAC Board of Directors.

A Legislative Reception on Tuesday evening will feature the presentation of MAC’s County Advocate Awards to Rep. Julie Rogers (D-Kalamazoo) and Sen. Jon Bumstead (R-Muskegon).

See conference agenda.

See full conference program.

For more information on the conference, visit MAC’s website.

MAC-backed public notices bill filed in House

Legislation creating the framework to allow public bodies to post their notices digitally to save time and money is back before the Legislature.

Under House Bill 4428, by Rep. Kevin Coleman (D-Wayne), local units would no longer be required to post their notices in a newspaper but only share them online. This would modernize public notices law, save counties time and money and create more avenues for our citizens to receive public notices.

HB 4428 is identical to a bill he sponsored last term that was not enacted. MAC supported this legislation the last time around, with MAC’s Deena Bosworth testifying before the House Oversight Committee on its behalf.

The Michigan Press Association has long opposed this concept because its members rely on the fees they charge locals for publishing such notices.

This bill is just the first of more than 100 bills that will be necessary to implement the change. HB 4428 will serve as the framework, while the trailer bills will amend each statute requiring the notice to be published in a newspaper.

HB 4428 has been referred to the House Committee on Local Government and Municipal Finance. MAC plans to support the bill.

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

Legislative panels cut governor’s request on indigent defense

There would be fewer dollars for the Michigan Indigent Defense Commission (MIDC) in fiscal 2024 than the governor has requested under spending plans approved by House and Senate subcommittees this week.

Gov. Gretchen Whitmer’s Executive Budget included a $72 million increase to MIDC grant funding as a response to the state’s approval of Standard 8, the Attorney Compensation Standard. However, the subcommittees rejected this approach.

House Bill 4280 includes a $57.2 million increase, totaling their MIDC budget to $206 million. Senate Bill 195 includes a $59 million increase, totaling the Senate version of the MIDC budget to $208.7 million. The governor’s recommended full funding for MIDC is $220 million.

The MIDC grant funding that is allocated to counties, so long as they comply with the state-approved Standards 1-8.

MAC is continuously working to ensure the state provides full funding to counties via MIDC grant dollars, as they are mandated to do. While it is still early in the budget process, and there is potential for the MIDC appropriation to increase, it is important to note that without full funding provided by the state, counties are not mandated to comply with Standard 8.

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

Financial strains on legal staffing are subject of special podcast episode

In a special episode, Podcast 83 delves into the growing financial strain on counties imposed by directives of the Michigan Indigent Defense Commission.

Host Stephan Currie and MAC staffers Deena Bosworth and Samantha Gibson discussed the state panel’s work and its impacts with two of its members:

Margaret McAvoy, former Isabella County administrator
Andrew DeLeeuw, interim deputy county administrator for Washtenaw County

The pair talked about their experience on the commission, which “was created by legislation in 2013 after an advisory commission recommended improvements to the state’s legal system. The MIDC works to ensure the state’s public defense system is fair, cost-effective and constitutional while simultaneously protecting public safety and accountability,” and the importance of its work.

Gibson reviewed the of MIDC’s new standard 8 on prosecuting attorney offices and staffing.

See the full video of the session, taped on April 12, 2023.

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

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

Additional templates posted to assist with opioid settlement planning

MAC has released additional supplemental documents to the Michigan Opioid Settlements Funds Toolkit: A Guide for Local Spending. The new templates include:

Request for Proposals and Associated Budget Template (PDF)(Word) (Excel)
- Files created to assist counties with looking to solicit proposals for funding from community-based organizations, entities and groups.
Vendor/Contractor Agreement (PDF)(Word)
- Modeled after Monroe County contract; created to accompany the funds that would be allocated to entities outside the County and govern the terms and conditions and requirements. This serves as financial management practice to ensure funds disbursed are utilized in alignment with the settlements and county constraints.
Pass Through Entity Agreement (PDF)(Word)
- File created to aid with contracting with pass-through entities, whether utilizing the external organization to subcontract all or a percentage of the settlement funds.
Public-facing Planning Process Document (PDF)(Word)
- Document created to share publicly for counties looking to inform community members of the planning process undertaken by the county. This document is also intended to inform the community of anticipated stakeholder engagement and request for proposals processes.

If you have specific templates that you would like created, or questions, contact Amy Dolinky at dolinky@micounties.org.

Environmental spending plans head in different directions

Subcommittees in the Michigan House and Senate this week took notably different avenues on plans for water infrastructure and other items advanced by Gov. Gretchen Whitmer in her fiscal 2024 budget.

The House Appropriations Environment, Great Lakes and Energy Subcommittee got creative, recommending $100 million more than the governor did by replacing hundreds of millions in state General Fund dollars with federal funding.

Most notably, the governor proposed $225.8 million in General Fund for replacing lead service lines and providing technical assistance to communities, but the House reduced that amount to $110 million, supplemented by $100 million in federal Coronavirus State Fiscal Recovery Fund dollars.

Also from the Coronavirus State Fiscal Recovery Fund, the House EGLE subcommittee recommended new line items for drinking water asset management, drinking water filtration devices in schools and child-care centers and infrastructure improvement projects for drinking water, storm water and wastewater.

By contrast, the Senate Appropriations Environment, Great Lakes and Energy Subcommittee reduced the governor’s original proposal from $1.3 billion to $1.08 billion. The main reductions came from her recommendations for regional renewable energy facilities, groundwater data collection and contaminated site clean-up.

The subcommittee chairs will meet shortly to concur on one version. The budget must be finalized before the end of June, though legislators can finish earlier.

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

Senate Democrats introduce renewable power bills

Michigan utilities would have to produce 100 percent of their electricity from renewable sources under legislation introduced in Lansing this week.

To achieve this, the seven-bill package, Senate Bills 271-277, would also eliminate coal-fired electricity-generating plants by 2030. Sens. Sam Singh (D-Ingham) and Sue Shink (D-Washtenaw) are leading the efforts to eradicate all greenhouse gas emissions from power generation as part of the Clean Energy Future Plan.

The bills also make the Michigan Public Service Commission will be responsible for evaluating the utility’s integrated resources plan. Their plans must demonstrate progress toward phasing out greenhouse gases, eliminating adverse effects on human health and reducing harm to the health, safety, and welfare of communities subject to environmental injustice.

Other provisions in the package include:

reducing carbon intensity of transportation fuels by 25 percent by 2035;
creating a Michigan Construction Decarbonization Strategic Plan to reduce emissions from heating homes and businesses by 17 percent by 2030; and
allowing farmers in the state’s PA 116 program to preserve farmland to rent their properties for solar operations and stay in the preservation program.

While this may appear a massive undertaking, Consumers Energy already has announced a plan to eliminate coal in its operations by 2025.

The bills have been referred to the Senate Committee on Energy and Environment. MAC has not taken a position on the legislation.

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

Bill would restore local control over plastic bag regulations

Local control over the retail use of plastic bags would be restored under a bill introduced in March.

Senate Bill 228, by Sen. Sue Shink (D-Washtenaw), would allow local governments to determine whether to allow plastic bags in their communities. The legislation stems from concerns over the impact plastic bags can have on our environment, as they tend to end up as litter or non-recycled waste. SB 228 will grant locals the authority to weigh the environmental impacts and regulate their use as they see fit.

Banning plastic bags outright is not the only option permitted in this bill; locals could impose a fee or tax for using them.

SB 228 would reverse the state restrictions on local action adopted in Public Act PA 389 of 2016 signed by Gov. Rick Snyder.

Several states currently allow municipalities to regulate bag use, and major cities such as Chicago, Boston and Los Angeles have plastic bag bans on the books. Eight states have statewide bans: California, Connecticut, Delaware, Hawaii, Maine, New York, Oregon and Vermont.

The bill was sent to the Senate Committee on Energy and Environment. MAC has not yet taken a position on this legislation.

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

State offers grants for town halls on mental health, substance use issues

Throughout the COVID-19 pandemic, concerns about substance use and mental health conditions have grown.

The Michigan Department of Health and Human Services’ (MDHHS) Substance Use, Gambling and Epidemiology Section (SUGE) is seeking applications from organizations to conduct Community Town Hall meetings that:

Address the impact of this public health crisis on populations, especially disparate or underserved populations.
Help raise awareness about coping with COVID-19 by sharing informational materials based on the latest research.
Determine community concerns and disseminate relevant resources to address priority areas: underage drinking, marijuana, prescription drugs/opioids, tobacco and mental health.

Apply now to conduct a Community Town Hall Event!

The Community Town Hall must occur on or before Aug. 31, 2023.

Applications will be accepted through May 31, 2023, on a first-come, first-served basis.
Limited to 75 organizations.
$1,500 per Community Town Hall. You will be reimbursed for actual costs up to $1,500 through a contract with our training logistics contractor: Community Mental Health Association of Michigan (CMHAM).
MDHHS has the ability to deny an organization’s application.

Funding can be used for expenses such as:

Speakers
Panel discussions
Venues
Evaluation efforts
Technology (if applicable)

Funding cannot be used for:

Promotional items, including but not limited to clothing, commemorative items such as pens, mugs/cups, folders/folios, lanyards, and conference bags.
Direct payments to individuals to participate in prevention services. Note: Prevention provider may provide up to $30 non-cash incentive to participate in data collection follow-up.
Meals are generally unallowable.

Community Needs Assessment resources for your reference:

If there are any questions or if you are experiencing technical issues with the application, please contact Lisa Coleman at ColemanL7@michigan.gov and Jamie Meister at MeisterJ1@michigan.gov.

Capital assets are focus of April 24 Treasury webinar

The Michigan Department of Treasury and Michigan State University Extension (MSU Extension) are hosting the next Fiscally Ready Communities training opportunity on April 24. This FREE training is a 90-minute webinar that’s designed to assist appointed and elected officials.

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 plan.

The webinar runs on Monday, April 24 from 10 a.m. to 11:30 a.m. (EST).

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