*This post was updated on Oct. 24, 2024.

By Matt Nordfjord, Principal, firm of Cohl, Stoker & Toskey

The Michigan Supreme Court recently issued a long-awaited opinion in Mothering Justice v. Attorney General, restoring the 2018 voter-initiated provisions from the Improved Workforce Opportunity Wage Act (“IWOWA”) and the Earned Sick Time Act (“ESTA”).

The voter-initiated IWOWA set the general minimum wage at $12.00/hr. for 2022 with annual increases to the minimum wage every year thereafter based upon inflation as calculated by the State Treasury Department. The legislature in 2018 amended that law to provide lesser increases (to $10.56/hr. for 2024 & $10.80/hr. for 2025) until it reached a maximum of $12.05 in 2030. The Michigan Supreme Court held that this amendment was unconstitutional and the original provisions needed to be reinstated via a phased in process starting Feb. 21, 2025. The court called for the reinstatement of the original increases listed in the IWOWA ($0.65/hr. each year), plus each year’s inflation factors.

On Oct. 1, 2024, the state confirmed the schedule and amount that Michigan’s Minimum Wage will increase in 2025. The first increase will occur on January 1, 2025, following the rate increase schedule from $10.33/hr. to $10.56/hr. The second increase will occur on Feb. 21, 2025, consistent with the Mothering Justice decision of the Michigan Supreme Court, from $10.56/hr. to $12.48/hr., and will thereafter continue to increase by an annual inflation factor (link to the schedule provided by the state: https://www.michigan.gov/leo/news/2024/10/01/michigan-minimum-wage-rate-2025-increase-schedule).

Although many counties currently have wage rates that exceed these levels for their regular full-time employees, these changes could impact a number of county part-time, temporary and /or seasonal positions.

The ESTA mandates that all employees (full-time, part-time, temporary, and seasonal) accrue sick time at a rate of 1 hour for every 30 hours worked. Employees accrue up to 72 hours (unless employer selects a higher limit) of paid sick time in a year. Employees of “small businesses” (employers with fewer than 10 employees) accrue up to 40 hours of paid sick time and 32 hours of unpaid sick time each year. In either instance, employees carry over any unused sick time from year to year. However, employees cannot use more than 72 hours (paid or unpaid) per year.

The ESTA also expands on an employee’s rights to use sick time. It can be used for a variety of absences including illness/injuries (to care for themselves and family members), in connection with domestic violence or sexual assault and for certain business and school closures. Further, the ESTA prohibits an employer from imposing requirements that an employee provide documentation, including doctor’s notes, to support a leave request unless the absence was for more than three days. Employers are also prohibited from “front-loading” paid sick leave. Employers must allow employees to accrue paid sick leave as they work.

With the reimplementation of the IWOWA and ESTA, effective Feb. 21, 2025, counties and any other Michigan public and private employers should examine their current leave policies and make any necessary modifications needed to comply with the IWOWA and ESTA. To ensure compliance, employers should review:

  • Is the company/government a covered employer: the ESTA applies to all Michigan employers with at least one employee, except the federal government.
  • What types of employees are eligible for paid sick leave: the ESTA applies to full-time, part-time, temporary and seasonal employees.
  • How does sick leave accrue: employees must accrue paid sick leave as they work.
  • How many paid sick days may be used each year: employees can accrue and use up to 72 hours of paid sick leave a year.
  • What types of absences are covered by the sick leave policies: the ESTA expands the reasons an employee may utilize paid sick leave.
  • Are all employees, including part-time, temporary, and /or seasonal positions at wage levels that meet or exceed the minimum wage level as annually adjusted.

The ESTA requires employers to provide written notice to employees of certain of its provisions, including the employee’s right to file a complaint with a court or the Michigan Department of Licensing and Regulatory Affairs. There is a three-year statute of limitations and no requirement that an employee file a complaint with the department before proceeding to court. A violation of the Act could entitle the employee to reinstatement, back wages, liquidated (double) damages, costs, and attorneys’ fees.

The ESTA prohibits employers from retaliating against employees who exercise any right protected by the ESTA. Further, the ESTA creates a rebuttable presumption of a violation of the Act if an adverse action is taken against an employee within ninety days of the employee’s filing a complaint, cooperating with an investigation and/or informing on violations of the Act, opposing a policy prohibited by the Act or advising anyone of their rights under the Act.

MAC members review and vote on policy platforms at the 2019 Annual Conference.

Draft platforms for 2024-2025 are now available on our website for your review. These platforms, which were approved by the MAC Board in early August after months of careful consideration and amendments, will guide our legislative efforts and policy positions at the state level.

NOTE: To access this webpage, you will need your county’s MAC credentials, which you can get from your county administrator’s office or by contacting MAC at melot@micounties.org or despins@micounties.org.

The platforms were developed through the diligent work of our internal committees, who reviewed the platforms from previous years and made necessary amendments to reflect current needs and priorities. Our internal committees — Health and Human Services, Judiciary and Public Safety, Transportation and Infrastructure, Finance and General Government, Environmental and Regulatory Affairs and Agriculture and Tourism — have played a crucial role in shaping these documents.

These platforms are critical in helping MAC staff respond to legislative developments and advocate for the interests of counties across Michigan.

Amendment process

MAC’s By-laws (Article III) state:

“Section 6 Platform. A member wishing to submit an amendment to the MAC Platform shall submit the amendment to MAC at least five (5) days prior to the opening day of the MAC Annual Conference. Such amendment will require a majority vote at the annual meeting to be adopted.

“An amendment to the MAC Platform may be presented from the floor during the annual meeting. Such amendment will require a 2/3 majority vote of the members at the meeting at which a quorum is initially established to be adopted.”

To meet the submission deadline, the text of an amendment must be sent to despins@micounties.org by 5 p.m. on Sept. 17.

The final vote on the platforms will take place during our Annual Business Meeting on Thursday, Sept. 26. Your participation in this process is essential, and we look forward to your input and involvement.

For more information, contact Governmental Affairs Director Deena Bosworth at bosworth@micounties.org.

Security threats on local officials will be focus of MAC conference session

Statewide headline this week: As election nears, Michigan, other states confront intimidation of clerks.

As your association, MAC is committed to policy and educational briefings that tackle emerging issues. To that end, the 2024 Annual Conference will feature a plenary session on security concerns led by experts from the Federal Bureau of Investigation (FBI) and the Michigan State Police (MSP).

FBI Special Agent Kaylee Barker and Intelligence Analyst Nishawn Spiller will discuss the bureau’s Election Crimes Coordinator Program, then Ryan Rich of the MSP will present on the “Current Threat Environment for Elected Officials.”

To see this briefing, though, you must attend the conference, for which online registration will continue for only one more week.

The three-day event also will feature:

  • The 2024 President’s Banquet on Sept. 25
  • The Welcome Reception on Sept. 24
  • An optional new session called “Women of MAC” on Sept. 24
  • MAC’s Annual Business Meeting on Sept. 26
  • Elections for five MAC board seats via regional caucuses on Sept. 25

For registration questions, first review MAC’s website, then contact Tammi Connell at connell@micounties.org.

 

Counties now can see projected revenue sharing amounts for FY25

Michigan counties now can see estimates for their fiscal year 2025 revenue sharing payments via projections recently released by the Michigan Department of Treasury.

These projections offer an insight into how the new distribution model of the $291 million in county revenue sharing will affect each county.  

The changes to the distribution methodology are the result of the changes made to the state’s FY25 enacted budget. For years, county revenue sharing was based on an outdated model that was rooted in values from, among other things, a 1975 inventory tax, inflationary increases for those counties still drawing down from a reserve fund and random percentage increases and decreases decided on by the legislature and the administration. The old methodology also required counties to earn a portion of their revenue sharing with reports at the local level and state level. 

The new methodology has its roots in previous distributions, but the unprecedented $30 million increase for county revenue sharing this year will be distributed based on a county’s taxable value, as compared with the rest of the state. To be clear, all counties will see an increase in revenue sharing for FY25, compared to previous years. However, the actual impact on each county’s budget from the $30 million increase will vary depending on the final 2024 taxable values.

The new projections are based on the taxable values from 2023, which have been used as the foundation for estimating the amount each county will receive. However, it’s important to note that the actual payments to counties will be calculated based on the 2024 taxable values, which are expected to be released later in September. This means that the figures currently provided are preliminary and subject to change once the updated taxable values are available.

The FY25 projections provide a valuable early look at the funding counties can expect in the coming fiscal year. While the final amounts will depend on the forthcoming 2024 taxable values, these projections serve as an early indication on what counties can expect to receive.

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

 

MAC’s Governmental Affairs Team continued its travel to members this week, stopping in Iosco County for the Board session on Sept. 4. After the meeting, MAC’s Samantha Gibson and Madeline Fata met with (l-r): Commissioners Charles Finley, Brian Loeffler, Jay O’Farrell and Terry Dutcher.

 

Treasury webinar will focus on fundamentals, best practices

The Michigan Department of Treasury and Michigan State University Extension (MSU Extension) want to make you aware of our next Fiscally Ready Communities training opportunity. This FREE training is a 90-minute webinar that’s designed to assist appointed and elected officials.

Click here to register.

The upcoming webinar training will be Sept. 16, 2024, from 2 p.m. to 3:30 p.m., with additional sessions available on Oct. 21, 2024, and Dec. 12, 2024.

“From Fundamentals to Best Practices”

This program focuses on implementing financial best practices, measuring fiscal health, and local government financial management fundamentals. It will include material on reconciling a bank account, how to read and interpret governmental financial statements, audit prep umbrella, how to complete and file an F65 Report, remitting taxes timely, and how to craft an appropriate and effective audit finding Corrective Action Plan. Participants will also receive resources to support best practice implementation and assess their local unit fiscal health.

For more information about Fiscally Ready Communities, please check out 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, email TreasLocalGov@michigan.gov with the subject line “Fiscally Ready.”

 

Opioid experts to provide issue briefing in advance of elections

The Bipartisan Policy Center and the Foundation for Opioid Response Efforts (FORE) on Sept. 26 will offer an in-depth discussion on the opioid epidemic ahead of the election.

 Experts will share insights from a recent national survey on Americans’ views of the opioid epidemic and evaluate the government’s response to the crisis.

Registration for virtual attendance is available by clicking here.

 

State sets regional briefings on renewable energy siting rules

Local officials can learn more about the upcoming changes to siting for large-scale renewable energy projects at regional learning sessions in October. The Department of Environment, Great Lakes and Energy (EGLE) will be hosting Renewable Energy Academy workshops in conjunction with several councils of government to provide those interested with “neutral guidance” on the new law.

Workshop activities include discussions on planning and zoning, “workable” ordinances, and presentations by the University of Michigan Center for EmPowering Communities. No more than four individuals may attend per community. Registration is only available to each municipality located within the planning regions listed above.

How to register: Municipalities from the planning regions mentioned above will receive email notice directly from the council of government with more detailed information of the time and location, as well as instructions on how to register to attend this workshop.

 

Michigan counties now can see estimates for their fiscal year 2025 revenue sharing payments via projections recently released by the Michigan Department of Treasury.

These projections offer an insight into how the new distribution model of the $291 million in county revenue sharing will affect each county.  

The changes to the distribution methodology are the result of the changes made to the state’s FY25 enacted budget. For years, county revenue sharing was based on an outdated model that was rooted in values from, among other things, a 1975 inventory tax, inflationary increases for those counties still drawing down from a reserve fund and random percentage increases and decreases decided on by the legislature and the administration. The old methodology also required counties to earn a portion of their revenue sharing with reports at the local level and state level. 

The new methodology has its roots in previous distributions, but the unprecedented $30 million increase for county revenue sharing this year will be distributed based on a county’s taxable value, as compared with the rest of the state. To be clear, all counties will see an increase in revenue sharing for FY25, compared to previous years. However, the actual impact on each county’s budget from the $30 million increase will vary depending on the final 2024 taxable values.

The new projections are based on the taxable values from 2023, which have been used as the foundation for estimating the amount each county will receive. However, it’s important to note that the actual payments to counties will be calculated based on the 2024 taxable values, which are expected to be released later in September. This means that the figures currently provided are preliminary and subject to change once the updated taxable values are available.

The Department of Treasury is expected to notify counties of the final revenue sharing amounts during the week of Sept. 2, but they will only be projections until the 2024 taxable values are finalized.

The FY25 projections provide a valuable early look at the funding counties can expect in the coming fiscal year. While the final amounts will depend on the forthcoming 2024 taxable values, these projections serve as an early indication on what counties can expect to receive.  For more information on this issue, contact Deena Bosworth at bosworth@micounties.org.

 

Candidates make their case for 2024 Board elections

The field is set for this year’s elections for the MAC Board of Directors.

Six county commissioners have filed for the five available seats on the Board that will be filled via regional caucuses held on Sept. 25 at the 2024 Michigan Counties Annual Conference:

  • Region I, Seat A
  • Region II, Seat A
  • Region III, Seat A
  • Region V, Seat B
  • At-large, Seat C

Only county commissioners registered for the Annual Conference may participate in the six regional caucuses. Only candidates who filed by the Aug. 23 deadline are eligible to be elected.

Regional seats are determined by the votes of that region’s caucus, with each county represented in the caucus room receiving one vote. The at-large seat is filled by the candidate receiving a majority of votes (with each commissioner casting a vote) in at least four of the six caucuses. (For questions on election procedures, contact Communications Director Derek Melot at melot@micounties.org.)

Candidates provided statements to MAC to share with colleagues:

Michigan FY 2025 County Revenue Sharing Projections Released

The Michigan Department of Treasury has recently posted the Fiscal Year (FY) 2025 County Revenue Sharing projections, providing an essential preview of the expected funds that will be distributed to counties across the state. These projections offer a insight into how the new distribution model will affect each county.  

The changes to the distribution methodology are the result of the changes made to the State’s FY 2025 enacted budget for Michigan.  For years, county revenue sharing was based on an outdated model that was rooted in values from, among other things, a 1975 inventory tax, inflationary increases for those counties still drawing down from a reserve fund and random percentage increases and decreases decided on by the legislature and the administration.  The old methodology also required counties to earn a portion of their revenue sharing with reports at the local level and state level. 

The new methodology has it’s roots in previous distributions but the unprecedented $30M increase for county revenue sharing this year will be distributed based on a counties taxable value as compared with the rest of the State.  All counties will see an increase in revenue sharing for FY 2025 compared to previous years. However, the actual impact on each county’s budget from the $30M increase will vary depending on the final 2024 taxable values.

The Michigan Department of Treasury projected revenue sharing payments for each county for FY 2025, FY-2025-County-Revenue-Sharing-Projections-8-29-24.pdf (michigan.gov), are based on the taxable values from 2023, which have been used as the foundation for estimating the amount each county will receive. However, it’s important to note that the actual payments to counties will be calculated based on the 2024 taxable values, which are expected to be released later in September. This means that the figures currently provided are preliminary and subject to change once the updated taxable values are available.

The Department of Treasury is expected to notify counties of the final revenue sharing amounts sometime next week, but they will only be projections until the 2024 taxable values are finalized.

In conclusion, the FY 2025 County Revenue Sharing projections provide a valuable early look at the funding counties can expect in the coming fiscal year. While the final amounts will depend on the forthcoming 2024 taxable values, these projections serve as an early indication on what counties can expect to receive.  For more information, contact Deena Bosworth at bosworth@micounties.org

 

 

 

 

 

 

 

MAC on the Road: Ottawa County

MAC’s Samantha Gibson toured Ottawa County’s Family Justice Center, juvenile detention center and day treatment center for youth community-based programming. The newly unveiled Family Justice Center and the programming, resources and opportunities made available to youth in the juvenile detention center and day-treatment programs exemplify the positive result of strong partnerships between boards of commissioners and courts, ultimately benefiting the youth within their communities. Thank you to Thom Lattig, Ottawa County juvenile court director, and Kathie Kolean, assistant director of court operations, for providing the tour of their campus.

 

Podcast 83: Artificial Intelligence is the present, not the future, says NACo expert

County leaders feeling hesitant about artificial intelligence (AI) entering their workplaces need to realize the technology is already there – and will be a boon to them and their staffs, said a National Association of Counties (NACo) expert in the newest episode of Podcast 83.

Rita Reynolds, NACo’s chief information officer, and host Stephan Currie conducted a wide-ranging discussion on AI terminology, its scope and how county leaders can use a new NACo toolkit to adapt to this seminal technology.

“When you start looking at some of those recommendations in generative AI, and were we first going to start seeing it in county government, where are we going to see it initially?” Currie asked. “Is it in the back office? Is it front office? … Talk a little bit about that, where you’re starting to see counties implement some generative AI.”

“Early on ― and even now ― there’s a definite focus with what we would call the productivity applications, which really, mostly, are the back office,” Reynolds replied. “So, for productivity, it’s those type of tasks where I’m doing the same thing over and over, and it’s taking me a lot of time, or it is so repetitive that’s why I can hand this off to someone.

“And it could be as simple as meeting notes, having the artificial intelligence work for you during a meeting and summarize the meeting minutes at the end of it, it could be taking a chunk of information, maybe you’ve written something for an article, but you’re not happy with the way it’s worded. Or you need to reword it in simpler terms. And so that’s generative AI, as we call it, the tool that allows you to put information in and it generates out a response that is potentially easier to understand or more professional.”

“What do you foresee the future now is of this toolkit?” Currie asked.

“We already do have a game plan and a roadmap. Basically, the toolkit is live on the naco.org website. … There’s also an interactive, tabular type page that allows you to say, ‘I’m an elected official, take me to those sections that I need to really be aware of.’ And it’ll take you to the benefits, the challenges, the opportunities, some use cases and then several, not all, of the work recommendations,” Reynolds explained.

“I would like to just mention,” Reynolds concluded, “from the challenge perspective, the (NACo) committee was very cognizant that there are areas such as accuracy, relevancy and, of course, particularly bias that could be in the data. And we’ve all said all along, there’s always been that type of problem. Generative AI just brings it to the forefront and actually gives counties now the opportunity to be better at cleaning up the data and making it relevant.”

View the full episode, recorded on Aug. 5, 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.

 

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