Give locals a ‘true sharing’ of revenue, MAC tells Senate panel

MAC and other local government groups explained the key to restoring the full meaning of state revenue sharing is creating a dedicated revenue stream and trust fund to exist outside the annual appropriations process to a Senate appropriations panel this week.

“Last year shows that the money that goes to revenue sharing for local units of government is just based on whatever money the state has available. It’s not really based on a true sharing of the state revenue,” said MAC Governmental Affairs Director Deena Bosworth. “When we got to conference committee, local units of government were devalued, and the money was pushed elsewhere.”

Bosworth was referring to this chart (see at right) in her presentation before the General Government Subcommittee that showed how, in FY24, lawmakers backed higher revenue sharing until the waning hours of the budget process. (View her testimony, starting at 33:14 mark.)

To avoid such situations, MAC and others developed a Revenue Sharing Trust Fund plan embodied in House Bill 4274, by Rep. Amos O’Neal (D-Saginaw), and HB 4275, by Rep. Mark Tisdel (R-Oakland). The bills would require that 8 percent of the revenue generated by 4 percentage points of the state’s sales tax rate go into the fund.

Counties would receive 46.14 percent of this total, which would be $273 million in the first year, an increase of nearly $16 million from the current total.

The bills cleared the House last fall with a huge, bipartisan majority.

“All of the things that counties do at the local level are mandated either in the (Michigan) Constitution or by statute,” Bosworth advised the committee in urging adoption of the fund. “There are very few things that counties governments do for their residents that they have the discretion to do. Most of them are mandated.”

This week’s hearing was informational, as the bills are before the Senate Finance Committee. MAC is aiming for Senate action on them once the Legislature returns to sessions on Tuesday, April 8.

To send a ready-made message of support for these bills, just visit MAC’s Advocacy Center.

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

 

NACo members have the opportunity to serve on 31 committees, caucuses, task forces and advisory boards to inform national policy-making and help solve problems impacting counties, boroughs and parishes.

Policy Steering Committees

If you want to serve as a member of one of NACo’s 10 policy steering committees, you simply need to email MAC Executive Director Stephan Currie at scurrie@micounties.org. MAC is responsible for these appointments. You do not need to complete any forms. Just list your first and second choices for committees. It is NACo practice to reappoint all members each year, so if you currently serve on a committee as a regular member, you will be renewed automatically. Please note that you can only serve on one Policy Steering Committee.

Leadership (chair/vice chair): All chairs and vice chairs of all committees and subcommittees are appointed by the NACo president each spring, with appointments announced at the NACo Annual Conference in July. Appointments are made through an application process. The Presidential application portal for incoming President Supervisor Jame Gore is currently open through April 26, 2024. You can access the site to apply here. Detailed application instructions are outlined below. Please note that you can only serve on one Policy Steering Committee, so if you are appointed to leadership for a committee, you can’t serve as a member on another Policy Steering Committee.

Large Urban County Caucus/Rural Action Caucus

NACo considers any county with a population above 500,000 as a “LUCC county,” which means that any official from that county is eligible to serve on LUCC- but they are not automatically placed on LUCC. Similarly, any county with a population under 500,000 is designated as a “RAC county,” which means that any official from that county is eligible to serve on RAC, but they are not automatically placed on RAC.

LUCC/RAC members must be appointed by the NACo President, and appointments are made through the application process outlined below. You must reapply each year. The Presidential application portal for incoming President Supervisor Jame Gore is currently open through April 26, 2024. You can access the site to apply here. Detailed application instructions are outlined below.

Leadership (chair/vice chair: All chairs and vice chairs of LUCC/RAC are appointed by the NACo president each spring, with appointments announced at the NACo Annual Conference in July. Appointments are made through an application process. You must reapply each year. The presidential application portal for incoming President Supervisor Jame Gore is currently open through April 26, 2024. You can access the site to apply here.

Standing Committees, Task Forces, and Ad-Hoc Committees

Standing Committees, Task Forces and Ad-Hoc Committees members must be appointed by the NACo president, and appointments are made through the application process outlined below. You must reapply each year. The presidential application portal for incoming President Supervisor Jame Gore is currently open through April 26, 2024. You can access the site to apply here.

Leadership (chair/vice chair): All chairs and vice chairs of Standing Committees, Task Forces and Ad-Hoc Committees are appointed by the NACo president each spring, with appointments announced at the NACo Annual Conference in July. Appointments are made through an application process. You must reapply each year. The presidential application portal for incoming President Supervisor Jame Gore is currently open through April 26, 2024. You can access the site to apply here.

Presidential Appointment Process

You will find the application form here. Please note you must reapply each year for any presidential appointment.

Once you click on the link, it will take you to the “My NACO Portal” page, where you need to log in. If you haven’t set up your portal yet, you will need to create your profile and set up a password. Please note, this is the same portal you use to register for NACo events.

Once you log into “My NACo Portal” should be redirected to the Presidential Appointments page. If you aren’t, look for the option “Presidential Appointment” at the top of your page.

The Presidential Appointment page states at the top that it is only for chairs/vice-chairs of committees, but this is also where you apply to be a member of LUCC, RAC, Standing Committees, Task Forces, and Ad-Hoc Committees. Just scroll down the page to see these options.

You can apply for as many roles as you would like, all at one time.

If you have any questions about applying for leadership roles, LUCC, RAC, Standing Committees, Task Forces and Ad-Hoc Committees, you can contact nacopa@naco.org.

For additional details on NACo’s policy panels, click here.

Trial court funding reform bills pass House committee

Time-sensitive legislation to secure key trial court funding took its first step toward passage this week.

House Bill 5392, by Rep. Sarah Lightner (R-Jackson), extends a quickly approaching May 1, 2024, expiration (“sunset”) of the authority of trial courts to levy fees that constitute a key part of their operational funding.

However, HB 5392 is now “tie-barred” to a separate measure through actions of the House Judiciary Committee. The companion bill, HB 5534, by Rep. Kelly Breen (D-Oakland), outlines a plan for the State Court Administrative Office to conduct data collection on certain trial court costs and revenue sources and provide a report to the Legislature with proposals to implement the Trial Court Funding Commission’s recommendations from 2019. A “tie-bar” means both bills must advance together.

MAC sees broad support for the sunset extension, but the prospects for the companion bill are much less clear. If, for political reasons, the legislation is delayed and not signed before May 1, a funding gap will result.

Courts stand to lose nearly $50 million in operational funding annually if HB 5392 does not pass. This loss of revenue, if not covered by the state, will fall on the counties to cover.

MAC supports both HB 5392 and 5534, with our first priority to move HB 5392 and extend the sunset prior to May 1, as was testified to last Wednesday.

These bills now move to the House floor.

MAC is asking members to take immediate action to urge quick legislative passage. Please visit MAC’s advocacy center to share your support for HBs 5392 and 5534 with your elected officials. The legislative window is closing, as there are limited days for the Legislature to advance the bills to the governor prior to May 1.

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

 

The MAC Board of Directors has voted to join the Citizens for Local Choice, a coalition of groups pushing for a statewide vote to repeal sections of a state law that put an unelected state panel in final charge of siting of energy generation facilities.

“What we have heard from our own counties, and from colleagues across the state, is that this law enacted last year is a clear attack on local control, an attack Michigan’s 83 counties cannot to continue,” said Jim Storey, president of the MAC Board of Directors and chair of the Allegan County Board. MAC is aware of at least nine counties that already have passed resolutions in support of the ballot campaign.

MAC consistently opposed the act as it worked its way through the State Capitol last year, testifying on the consequences of usurping local control and suggesting changes that could facilitate the generation of clean energy without making the state Public Service Commission the final answer on local land use.

“It’s unfortunate we have reached this point, but this measure is so ill-conceived, so counter to the interests of communities and good governance, that MAC has to take this stand,” added Stephan Currie, executive director.

What’s next?

MAC encourages county leaders to support the coalition’s work in several ways:

1. Pass a county resolution in support of it. The coalition has a template you can use for this purpose. Click here for it.
   
   
2. Consider circulating petitions for it. Click here to request a petition from the coalition. (Please note there are specific rules on the collection process, so be sure to familiarize yourself with them; the coalition has text and video briefings on that process.)

The coalition now has petitions in the field to collect the 550,000 signatures the group thinks is advisable to meet state requirements for ballot proposals. Only 356,958 valid signatures are needed under state law, but the coalition has set a higher goal to ensure the legal requirement is easily met.)

Time is short, though, as the deadline to collect signatures is approaching on May 29, the deadline to reach the November 2024 ballot.

3. Contact your county captain or volunteer to be one. The coalition has at least one county captain in 62 counties, but more are needed, particularly in Southeast Michigan. To volunteer as one, sign up on the website or send a note to citizensforlocalchoice@gmail.com.
   
   
4. Donate to the campaign. While the coalition is having success using volunteer petition collectors and not using paid ones, unlike other ballot efforts, a full statewide campaign to convince voters this fall will not come cheap. To donate directly to the coalition, click here.

For more information on MAC’s work in defense of local control, contact Director of Governmental Affairs Deena Bosworth at bosworth@micounties.org.

House committee hears testimony as trial court funding deadline looms

Legislative efforts ramped up this week to address funding for Michigan’s trial courts, which are now facing the legal expiration of a key funding source.

Action is now in the House Judiciary Committee and focused on two bills: House Bill 5392, by Rep. Sarah Lightner (R-Jackson), extends the current May 1, 2024, sunset date on the authority of courts to levy fees to May 1, 2026; and House Bill 5534, by Rep. Kelly Breen (D-Oakland), which outlines a plan for the State Court Administrative Office to collect data on trial court costs and revenue sources and provide a report to the Legislature with proposals to implement the Trial Court Funding Commission’s recommendations from 2019.

MAC is supporting both efforts, though its immediate focus is on HB 5392, since inaction would create an immediate funding gap.  MAC testified to this point on Wednesday.

Courts stand to lose nearly $50 million in operational funding annually if HB 5392 does not pass. This loss of revenue, if not supplemented by the state, will fall on the counties to cover.

It is expected that HB 5392 will advance out of committee in an amended form to set a Dec. 31, 2026, sunset on fee authority.

Political dynamics in the House, however, could delay passage of both bills. The bills are expected to be tie-barred, meaning one cannot move through the legislative process without the other.

The bills are likely to be voted out by the committee next week and move to the House floor.

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