State Supreme Court still studying court costs case

The Michigan Supreme Court (MSC) is still considering a case that challenges the authority of trial courts to impose costs on defendants.

On April 6, 2022, the MSC heard oral arguments on the application for leave to appeal in People v Travis Michael Johnson, which challenges state law by which a judge can impose “any costs reasonably related to the actual costs incurred by the trial court.”

On May 13, the court directed the parties to file supplemental briefs within 21 days, addressing three discrete issues:

(1) whether MCL 769.1k(1)(b)(iii) violates the separation of powers by assigning the judicial branch “‘tasks that are more properly accomplished by the Legislature,“

(2) whether MCL 769.1k(1)(b)(iii) violates due process by creating a “potential for bias” or an “objective risk of actual bias,” and

(3) if the Court finds MCL 769.1k(1)(b)(iii) to be facially unconstitutional under either theory, what remedy should follow.

Thus, the court is still considering whether to grant leave to appeal and has requested additional briefing on the constitutionality of the statutory subsection on two broad constitutional grounds, i.e., separation of powers and due process, focusing more particularly on certain narrowly described reasons as to why the statute may violate those constitutional principles, i.e., improper assignment of legislative tasks to the judiciary and judicial bias concerns. 

As part of its consideration of whether to grant leave to appeal, the court would also consider the proposed remedies that may be ordered if it were to ultimately determine that the statute is unconstitutional on its face, i.e., invalid under any circumstances.  Based on the framing of the issues in its latest order, it would appear the potential remedies for a finding of facial unconstitutionality could include the Legislature establishing more objective criteria for the imposition of costs in a criminal case.

If the application is granted, the case would likely continue with further briefing on the specific issues to be defined by the court in its order granting leave to appeal, followed by oral argument and the court’s final determination of the issue.

MAC will continue to closely monitor this case and the huge potential for it to disrupt local court financing.

Treasury to announce awards for first responder recruitment grants

Counties should learn early next week if they are among recipients of first responder recruitment grants issued by the Michigan Department of Treasury.

MAC has learned that awards will reach 44 of our 83 counties. The list of recipients should be available within the next two business days and follow-up letters will be sent out to all communities that applied for the funding.

Treasury received more than 400 applications from local units of government seeking a portion of the $5 million allocated by the Legislature in December 2021 for first responder recruitment and training grants. In total, applications requested more than $29 million, so the program is highly competitive.

Per legislative directive, the department reviewed and ranked all applications according to intended use of the funds and those communities most in need. Funding for recruitment and training was given the highest priority, then the applications were ranked based on those with the lowest taxable value per capita across the state. 

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

Report: Quarter of ‘federal aid’ roads in ‘good’ condition

Michigan made some progress in addressing road conditions in 2021, says a new report from the Transportation Asset Management Council.

In its 2021 Annual Report, the council says Michigan has “… the highest percent of roads rated in good condition since 2005.

“The 2021 condition data for Michigan’s federal-aid eligible paved roads has made progress with

• 25% Good
• 42% Fair, and
• 33% in Poor condition.

In 2020, estimated breakdown was

• 22% Good,
• 36% Fair, and
• 42% were in Poor condition.

“This improvement in road surface condition,” the report says, “may be due in part to several factors including a mix of fixes of road surface treatments and increased revenue.  The reasons for this improvement will be analyzed further and better understood as the 2021 project data becomes available.”

By contrast, conditions with Michigan’s bridges declined in 2021, with 4 percent of them falling into the “severe” category, which “measures the criticality and is a warning that these structures are in jeopardy for closure due to structural concerns that could pose a threat to traffic.”

The council is an appointed group that advises state officials on infrastructure. Kelly Jones, Ingham County Road Department managing director, is the MAC representative on the council.

NACo shares updates on April 30 ARP reporting deadline

Counties are reminded that April 30 is the deadline for the U.S. Treasury’s ARP Recovery Fund Project and Expenditure (P&E) Reports.

Additionally, earlier today, Treasury released new FAQs for the ARPA Recovery Fund Final Rule. NACo will provide a more in-depth analysis in the coming days but is able to share the following about the looming report deadline:

“Treasury has stated that it is experiencing a very high volume of messages about problems that recipients are having with submitting their P&E Reports, which has caused a delay in addressing these issues. Treasury has stated that if your county has sent an email to Treasury outlining why you are unable to submit your P&E Report, you will not be penalized if you submit AFTER April 30, 2022, if your problem is not addressed prior to that date. Please save a date stamped email and/or screen shot of your messages to Treasury!  

If you are having an issue or are unable to submit your P&E Report, email both SLFRF@treasury.gov and covidreliefitsupport@treasury.gov and CC questions@naco.org with a description and screenshot of what the problem is.

If you are trying to submit your county’s P&E Report as the Authorized Representative, but the portal is stating it does not recognize your name/contact information, please watch the step-by-step walkthrough video released by Treasury. If the problem persists, email SLFRF@treasury.gov and covidreliefitsupport@treasury.gov and CC: questions@naco.org with a description and screenshot of what the problem is.

Counties are required to make a one-time, irrevocable election to either take the $10 million revenue loss standard allowance or calculate revenue loss. Counties must indicate this choice in this April P&E Report.

If your county is claiming the $10 million revenue loss standard allowance, please follow the below steps. Please note that there are streamlined reporting requirements for revenue replacement funds.

Steps for claiming $10 million standard allowance and reporting requirements

• 1. Go to the “Project Overview” section
  2. Choose 6 – Revenue Replacement – under the “Project Expenditure Category Group”
  3. Choose EC 6.1 – Provision of Government Services – under the “Project Expenditure Category”
  4. Enter in Project Name

1. If your county has not yet signed a contract, obligated or expended funds, select “My jurisdiction has no projects”

• 1. Enter Recipient Project ID#
  2. Enter Total Cumulative Obligations
  3. Enter Total Cumulative Expenditures
  4. Enter Program Description
  5. SKIP the following modules:

1. Subrecipients/beneficiaries/contractors
2. Subawards/direct payments

                                                           iii.      Expenditures

• 1. Go to the “Recipient Specific” module 
  2. Choose “Yes” under “Is your jurisdiction electing to use the standard allowance of up to $10 million, not to exceed your total allocation, for identifying revenue loss?”
  3. Enter in the amount you would like to claim in the field below “Revenue Loss Due to COVID-19 Public Health Emergency”

1. For counties that receive less than $10 million in ARPA Recovery Funds and want to allocate the entirety of your allocation towards revenue loss, enter in your total allocation (total of first and second tranche) into this field

• 1. Provide a description of how revenue replacement funds were allocated to government services

NACo has released a number of resources that walk counties through the P&E Report submission process, including:

• 1. Part 1: U.S. Treasury Webinar on Reporting Guidelines for the State and Local Fiscal Recovery Funds
  2. Part 2: Overview of U.S. Treasury Webinar on Project and Expenditure Reports for ARPA Recovery Funds – Overview of Revenue Replacement Reporting

Live Podcast 83 episodes return on Monday, May 2

How soon will Michigan have a fiscal 2023 budget? Will it include the 10 percent boost in county revenue sharing first proposed by Gov. Gretchen Whitmer? What’s going to happen with the $3 billion in the still unassigned state American Rescue Plan funds?

These and other questions are likely to be tackled in the next LIVE episode of Podcast 83 on Monday, May 2.

The update will begin at 4 p.m. To join the session, just use this Zoom link: https://us02web.zoom.us/j/82867692853.

Viewers will be able to ask questions of Podcast 83 team as well.

Last Monday, MAC Director of Governmental Affairs Deena Bosworth and Governmental Affairs Associate Meghann Keit-Corrion discussed the latest action on the FY23 state budget and some troubling legislation that would make major changes to the state’s Freedom of Information Act in a Podcast 83 episode recorded on Monday.

Watch a video of the session on-demand here.

Previous episodes in 2022 can be seen at MAC’s YouTube Channel.

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