Governor’s FY25 budget proposal looks promising for counties

A state General Fund budget proposal of $14 billion that includes a $26 million boost in county revenue sharing for fiscal 2025 received praise this week from the Michigan Association of Counties.

“In light of the fact the governor is proposing a smaller General Fund amount for FY25 than what was budgeted for FY24, this is a good budget recommendation from our perspective,” said Stephan W. Currie, executive director. “We asked for increases in revenue sharing, funding for juvenile justice facilities and staff, Medicaid coverage for inmates, stormwater infrastructure funding and full funding for indigent defense obligations. On pretty much every point, we see good news in the governor’s proposals.”

Revenue sharing

Gov. Gretchen Whitmer calls for $281.2 million for county revenue sharing, with increases set in a mix of unrestricted and restricted formats. If approved, this amount would represent a $26 million boost from the FY24 baseline amount.

Governmental Affairs Director Deena Bosworth, however, cautioned that this amount is the starting point of budget talks, noting that last year’s budget work began with a large revenue sharing boost that was trimmed by the Legislature.

“We have to watch it through the entire process very, very closely,” she said.

The governor’s plan also did not reference the creation of a dedicated and secured Revenue Sharing Trust Fund, a MAC priority for 2024, but Bosworth said the progress made last year in the Legislature on that issue is a good sign for eventual passage.

Juvenile justice

Significant funding is recommended to address the juvenile justice bed shortage crisis and implement recommendations from the state’s Juvenile Justice Task Force:

• $38 million for in-patient child care payment methodology to assist with capacity issues
• $3.5 million for juvenile staff and programming
• $5 million for capital expenditures for juvenile facilities

Courts and jails

Whitmer’s plans in the criminal justice sphere are headlined by a $30.5 million allotment to cover health services for jail inmates slated for release who would otherwise be eligible for federal Medicaid coverage. This amount would be in service of a state effort to get a so-called Section 1115 Re-entry Waiver from the federal government to relieve counties of health care costs they now bear due to the Medicaid Inmate Exclusion Policy.

Reform of that policy is a MAC priority for 2024, so the governor’s budget is exciting news, said Governmental Affairs Associate Samantha Gibson.

Also notable in this realm are an Increase in the Medicaid reimbursement rate for behavioral health, additional funding for public safety officers and first responders for mental health treatment and new judges for Kent and Macomb counties.

The budget also calls for full funding for the Michigan Indigent Defense Commission’s (MIDC) work, but Gibson noted that this does not include an expansion of MIDC services to juvenile defendants.

Infrastructure

MAC was pleased to see a $15 million allotment for stormwater improvements, said Governmental Affairs Associate Madeline Fata.

But the FY25 plan has no additional funding for roads outside the PA 51 funding formula, she noted, despite the fact Michigan has a $3.9 billion annual deficit for road funding.

“MAC is a part of two separate coalitions trying to find new revenue sources for road funding,” Fata said. “We’re exploring a multitude of options.”

In what is sure to be a highly debated move at the State Capitol, Whitmer seeks a 1,289 percent increase in the tipping fees to place waste in landfills, moving it from 36 cents to $5 per ton. This would raise $80 million for environmental remediation efforts, recycling and landfill operations.

Additional coverage of the budget proposal will be released on Monday in the latest episode of MAC’s Podcast 83. Look for the episode alert in your email before noon on Feb. 12.

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

 

MAC sets federal legislative priorities in 2024

In advance of next week’s National Association of Counties gathering in Washington, D.C., MAC has finalized its legislative priorities for 2024 on Capitol Hill. (Click here for downloadable PDF of the list.)

“Proper funding for PILT, of course, is a perennial agenda item for MAC, as Michigan has the second-largest amount of untaxable land of the states east of the Mississippi River,” said Deena Bosworth, director of governmental affairs. “And we will be pushing hard, along with NACo, for Congress to reform the Medicaid Exclusion Policy that leaves county taxpayers footing the bill for health services for jail inmates who have not received adjudication.”

Full Funding for Payments in Lieu of Taxes (PILT) Program

• MAC and NACo support restoring full mandatory funding for the Payments in Lieu of Taxes (PILT) program, which compensates counties for untaxable federal land.
• The Permanently Authorizing PILT Act (H.R. 3043) would permanently authorize the PILT program.
• R. 3043 would add boilerplate to U.S. code to permanently and automatically fund PILT.
• The PILT Reauthorization Act (S. 2480) would authorize federal PILT for 10 years.

Reasonable Health Care Cost-sharing for County Jail Inmates

• Access to federal health benefits for non-convicted individuals would allow for improved coordination of care and decrease short-term costs to local taxpayers and long-term costs to the federal government.
• Providing access to federal health benefits for those awaiting trial and verdict decisions would help counties break the cycle of recidivism caused or exacerbated by untreated mental illness and/or substance use disorders, thereby improving public safety.
• While federal legislation to address necessary reforms to the Medicaid Inmate Exclusion Policy (MIEP) is under way, MAC supports requiring the Michigan Department of Health and Human Services to apply for a Medicaid Section 1115 re-entry waiver to reinstate Medicaid benefits for incarcerated individuals prior to release from county jails.

Renewal of the Affordable Connectivity Program

• The Affordable Connectivity Program launched in 2022, which offers discounted broadband service to low-income households, is set to expire in April 2024.
• More than 20 million eligible households have enrolled. Broadband is essential for accessing health care, education, and employment.
• MAC and NACo urge Congress to extend funding for the program so low-income households can continue accessing the internet at a reduced rate.

For questions on MAC’s federal advocacy efforts, visit our advocacy center or contact Deena Bosworth at bosworth@micounties.org.

 

Counties: Importance of local governments missing from governor’s speech

A vital tune was noticeably missing from Gov. Gretchen Whitmer’s State of the State “playlist” on Wednesday night: the importance and needs of local governments and the services they provide to Michigan.

That was the assessment of MAC leaders following the governor’s concert-style speech in Lansing on Jan. 24, her sixth assessment of the state’s progress since taking office.

While Stephan Currie, executive director of MAC, praised Whitmer’s comments on the need to build on the state’s economic momentum, he said counties were disappointed at what was not said.

“The governor spoke about bringing people to Michigan, yet she said nothing about the communities they will live in and the quality of life that counties provide,” Currie said. “The strength and attractiveness of Michigan are built upon our assets, our outdoors, our quality of life and our community spirit.

“From traditional responsibilities such as infrastructure and public safety, to newer challenges such as housing availability, public services are essential to thriving communities,” Currie added. “The governor noted how the four largest counties — Wayne, Oakland, Macomb, Kent — supercharged the permitting process to get moving on thousands of new housing units. That’s just one example of how counties are the ‘governments on the ground’ bringing positive change. Now the challenge is to ensure those governments have the support and resources to maintain the momentum.”

In support of that momentum, MAC’s 2024 legislative priorities focus on:

• A secure source of revenue sharing from the state to counties, thereby fulfilling a promise made by state leaders some 60 years ago;
• Legislative action to ensure our local trial courts and juvenile services have the resources to fulfill their role in protecting the public;
• Proper reimbursement for losses incurred by local governments due to tax cuts adopted by state leaders; and
• Addressing a rapidly changing transportation grid by reforming fuel taxes.

“After many years of economic struggle and limited state support, Michigan counties are on a roll,” Currie said. “But to continue this progress, we must now use the moment to address longstanding needs for public services.”

For questions on MAC’s 2024 legislative priorities, contact Deena Bosworth at bosworth@micounties.org.

 

Podcast team reviews MAC policy priorities for 2024

A long-sought policy to create a secure source of county revenue sharing dollars and changes in juvenile justice and court policies are discussed in the latest episode of Podcast 83, MAC’s podcast on all matters county-related in Michigan.

Host Stephan Currie led the Podcast 83 team of Deena Bosworth, Madeline Fata and Samantha Gibson through a review of MAC’s 2024 legislative priorities in Lansing.

Topping the list, said Bosworth, is the creation of a Revenue Sharing Trust Fund to hold dedicated state dollars to share with local governments.

“It might still be a little bit of an uphill battle because it does carve out a portion of the state sales tax and cuts into the unrestricted funds the Legislature uses … Hopefully we get some movement on it this spring,” she explained.

Bosworth also reviewed the legislative state of play on reimbursements for losses due to a property tax exemption for disabled veterans, while Gibson discussed the need to reset a legislative “sunset” on the authority of local trial courts to levy fees on defendants and Fata described the numerous challenges to infrastructure funding.

View the full video of the episode, recorded on Jan. 16, 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.