Revenue meeting paints bleak outlook for Michigan into 2022

The state has a $3.2 billion hole in its current budgets, public finance experts testified today before the state’s Consensus Revenue Estimating Conference. The conference is used to set revenue targets for elected officials each year. Of that gap, $2 billion is in the state’s roughly $11 billion General Fund, which finances a wide variety of services that counties are mandated to provide.

The outlook for FY21 is little better, with the experts seeing another $3 billion combined revenue drop for the General Fund and School Aid Fund. For FY22, which begins Oct. 1, 2021, the shortfall should be $2 billion.

Data and conclusions provided Friday by the University of Michigan, the Center for Automotive Research, the House and Senate Fiscal Agencies, the Michigan Department of Treasury and the State Budget Office included:

  • 22% of the state’s population is unemployed; and that level will persist through the end of June 2020
  • The state’s payroll tax revenue will be down 9% for FY20
  • One in seven businesses across Michigan will close, resulting in the loss of about 4.9% of jobs in the state
  • Light vehicle sales will be down 50% compared to last year, but should rebound to 2019 levels in 2021 

With only four months left in the current fiscal year, serious decisions about cuts to the programs, services and departments supported by the state’s General Fund are imminent. Of the $3.2 billion FY20 shortfall, about $2 billion is in the General Fund. And the $1.2 billion gap in the School Aid Fund will put additional pressure on lawmakers to find more savings in the General Fund.

Restoring a balanced state budget, as required by law, can happen via a negative supplemental appropriations bill advanced by the Legislature or an executive order from the governor, which only would need approval by the House and Senate Appropriations committees, not the full chambers. The specifics of cuts, and the mechanism to enact them, are not yet apparent.

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

 

Supplemental could provide $1,000 per first responder

Public safety workers could get $1,000 payments under the terms of Senate Bill 690, sponsored by Appropriations Chairman Jim Stamas (R-Midland), which was unanimously approved by the Senate this week.

If the bill is also approved by the House and signed by Gov. Gretchen Whitmer in its current form, first responders could get the payments if their local employers agrees to it, thus qualifying for reimbursement via the state dollars.

The bill allocates more than $500 million of the $3.8 billion of federal COVID relief Funding. It includes large support for counties and their front-line workers, including:

  • $100 million for up to $1,000 one-time, either lump sum or hourly, bonus payments for local public safety officers (police, fire, EMT, 911 etc.) under the following conditions –
  • Requires bonuses be paid by September 30, 2020
  • Allows local units until December 31, 2020, to apply for reimbursement through Treasury
  • Requires that reimbursements be made on a first-come, first-served basis and that the payment be made no later than 45 days after all required information is submitted
  • Sets a maximum award of $5 million to any city, township, village, or county
  • $178M in temporary pay increase for direct care workers as follows –
  • Those already receiving $2/hour under the governor’s order would receive $1 more for $3/hour total
  • Nursing home workers added to receive $3/hour increase (this includes county medical care facilities)
  • Eligibility would be until Sept. 30 and retroactive to April 1
  • $62 million for PPE and testing needs for:
  • Meat plants and other agricultural processing centers
  • Nursing homes and other long-term care facilities
  • Other entities included in DHHS prioritization guidance
  • $125 million in financial help for childcare providers and impacted families
  • $11 million in funding for UIA to hire 300 temporary workers to handle unemployment claims
  • $2.5 million to the Replenish Hospitality Employee Fund to help restaurant workers adversely impacted by closures

 

House committee advances trial court funding bill

Statutory authority extending the ability for Michigan’s trial courts to levy fees, is one step closer to the governor’s desk. This week, the House Judiciary Committee unanimously approved House Bill 5488, by Rep. Sarah Lightner (R-Jackson), thereby keeping court funding stable until long-term reforms can be enacted.

The bill originally extended the authority until October of 2023, but after some committee members expressed concerned with the three-year extension, the bill was amended for a two-year extension. MAC supports this change and encourages the Legislature to continue swift action to ensure a long-term funding solution for our courts.

The state’s Trial Court Funding Commission said court costs “directly account for as high as $291 million annually in support (most of the 26.2 percent generated). Additionally, approximately $127 million of the annual funds transferred from the State originate from court assessments at sentencing. When totaled, Michigan trial courts are supported, in significant part, by over $418 million assessed to criminal defendants.”

The Commission also reported “findings from the survey of local funding units show that the total cost of Michigan’s court system (outside of the supreme court and court of appeals) amounts to between $1.14 billion and $1.44 billion.” Of the total amount, the percentage of local court operations expenses covered by state general fund is 2.24%. The report calls for a rebalancing of state and local funds and makes recommendations for the Legislature to consider for a stable court funding system.

For more information on this issue, contact Meghann Keit at keit@micounties.org.

 

Governor extends deadlines on property tax disputes

A Board of Review now has until July 21, 2020, to hear property tax disputes under a new order (Executive Order 87) issued by Gov. Gretchen Whitmer Thursday night.

The order also directs that Board of Review decisions are due by Sept. 1, 2020. Further, EO 87 pushes back the deadline for commercial and industrial real and personal property tax disputes from May 31, 2020, to July 31, 2020.

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

 

Skilled nursing facilities move into Lansing focus this week

Senate Bill 899, by Sen. Michael McDonald (R-Macomb), which would provide immunity for certain health care workers from civil or criminal liability during the declared COVID-19 state of emergency, or through Sept. 30, 2020, whichever is later, was debated before the House Judiciary Committee this week.

The bill already has passed on party lines in the Senate and many Democratic members of the House committee questioned whether a bill to codify legal protections for hospitals treating new coronavirus patients would protect workers as much as it aimed to protect the hospitals themselves from potential lawsuits. The bill is supported by hospitals and doctors but is opposed by union groups representing hospital staff.

The bill is expected to come before the committee for a vote next week, but uncertain if there will be any changes at this point.

Also this week, the Senate Oversight Committee met regarding the governor’s executive order related to nursing homes (EO 50). Committee members focused on the operation of regional hubs created in the order and questioned Department of Health and Human Services Director Robert Gordon and other senior officials at DHHS. A full video of the committee hearing can be found here. 

The governor did re-issue orders, rescinding EO 50 and 51, and extending “capacity for disaster relief child care services for essential workforce” and “protecting residents and staff in long-term care facilities.” The new versions are: 

For more information on this issue, contact Meghann Keit at keit@micounties.org.

 

There’s still time to sign up for next Treasury webinar on May 18

In partnership with the Michigan Association of Counties, Michigan Municipal League and Michigan Townships Association, the Michigan Department of Treasury is pleased to announce the third joint webinar, “COVID-19 Updates and Resources for Local Governments,” at 2 p.m. on Monday, May 18.

Topics will include an update after the state of Michigan’s May Michigan Consensus Revenue Estimating Conference, an update from the Michigan Department of Transportation (MDOT) on project timelines and financing and best practices around local government cash and debt management.

Participants can register and submit questions on the webinar’s registration page.

Each webinar is limited to 1,000 attendees. With previous webinars reaching capacity limits, participants are strongly encouraged to register early.

A fourth webinar is tentatively scheduled for Monday, June 8. Additional information and registration details about this June webinar will be sent in the coming weeks.

The state Treasury Department has developed a website with numbered letters, communications and resources regarding COVID-19 information for local governments and school districts. This website was created to ensure that Michigan communities have access to the most up-to-date guidance and will be updated frequently with information and resources as they become available.

 

Prosecutors group: Governor’s orders valid unless court says otherwise

The Prosecuting Attorneys Association of Michigan (PAAM) – an association consisting of all 83 elected county prosecutors and affiliate member of MAC – issued a statement Wednesday that said Gov. Gretchen Whitmer’s Executive Orders remain in force.

In the statement, PAAM acknowledged the legal challenge brought by the State Legislature against Governor Whitmer over her authority to issue Executive Orders but stated that, because no court has issued a ruling, “the Executive Orders are still in force.”  

This statement comes after Attorney General Nessel issued similar guidance on May 5 to law enforcement across the state where she found the two orders – Stay Home, Stay Safe Order (2020-70) and Places of Public Accommodation Order (2020-69) – to be valid under the Emergency Powers of the Governor Act and asked local law enforcement agencies to continue their enforcement efforts.   

Oral argument was heard today by Court of Claims Judge Cynthia Stephens in Michigan House of Representatives and Michigan Senate v Whitmer, (Case No. 20-000079).

No timeline was set for a decision in the case.

 

Jail Task Force issues memo on gaining COVID funds

Michigan’s Jail and Pretrial Task Force has released a memo to county and city officials as they consider spending options from Coronavirus Emergency Supplemental Funding through the federal Bureau of Justice. Some counties were eligible for funding directly through the federal government, but the remainder will be funded through the state allocation. The Michigan State Police is the lead agency and will provide more information to MAC members when the application and information are available. Until then, county leaders can begin thinking about innovative ways to use funds, with this memo as a reference point.

For more information on this issue, contact Meghann Keit at keit@micounties.org.

 

Opioid summit information posted to web

The Center for Behavioral Health and Justice at Wayne State University thanks the 360 people who joined us for the first ever Opioid Treatment Ecosystem Community of Practice Summit on May 5, 2020. We have attached a copy of the presentation slides and responses to your questions from the Q&A portion of the event.

Watch the full recording of the event or navigate to a specific section here. 

 

Stay at Home order extended to May 28; work restrictions eased

Michigan’s Stay at Home order has been extended to May 28, Gov. Gretchen Whitmer announced in a press conference Thursday afternoon. The new order, EO 77, however has enhanced exceptions to allow for a variety of work activities, ranging from auto production to garden centers. E0 77 also notes that “Businesses, operations, and government agencies that remain open for in-person work must, at a minimum:

  • “(a) Develop a COVID-19 preparedness and response plan, consistent with recommendations in Guidance on Preparing Workplaces for COVID-19, developed by the Occupational Health and Safety Administration and available here. Such plan must be available at company headquarters or the worksite.
  • “(b) Restrict the number of workers present on premises to no more than is strictly necessary to perform the in-person work permitted under this order. …”

During her Thursday presentation, Whitmer outlined the phases Michigan is going through to address the COVID-19 pandemic.

The governor also released her Safe Start Plan to guide businesses in the days and weeks ahead. Businesses in the construction, real estate and manufacturing fields have been cleared to resume operations before the end of May.

 

House, Senate file lawsuit challenging governor’s emergency powers

House Speaker Lee Chatfield (R-Emmet) and Senate Majority Leader Mike Shirkey (R-Jackson) filed a lawsuit in the Michigan Court of Claims this week seeking a declaratory judgment that the governor has violated the Michigan Constitution by taking away legislative authority via the continued declarations of emergency and her subsequent executive orders.

The controversy surrounds which law applies to the governor’s ability to act unilaterally during this pandemic. The governor has declared a state of emergency under a law established in 1945, which allows the use of emergency powers until such time as the governor deems the emergency is over. The other law the governor has used is a 1976 measure that allows her to declare a state of emergency for 28 days, after which the Legislature much approve any extensions of the declaration.

The Legislature did approve an SOE extension to April 30 but has not acted to extend one beyond that date.  All executive orders, including the Stay Home orders, are contingent upon the continuation of the state of emergency. A May 15 hearing has been set on the lawsuit.

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

 

EO 75 extends virtual meetings under OMA

County boards may continue to hold remote sessions until June 30 under Executive Order 75, which Gov. Gretchen Whitmer signed Wednesday night.

EO 75 continues the remote option that ordinarily would not be allowed by the state’s Open Meetings Act. The purpose of the order is to allow local entities to hold necessary public meetings without endangering the public health now threatened by COVID-19.

For additional background on legal and mechanical issues relating to remote board sessions, see these links, which also can be found on MAC’s Resources Page:

 

Rep. Lightner urges immediate action on trial court funding

House Bill 5488 would extend authority for Michigan’s trial courts to levy fees, thereby keeping court funding stable until long-term reforms can be enacted, the bill’s sponsor told the House Judiciary committee this week.

Addressing the committee, chaired by Rep. Graham Filler (R-Clinton), Rep. Sarah Lightner (R-Jackson) noted that current authority to levy fees expires in October and a lapse would devastate court operations.

The Legislature restarted the committee process this week with protocols in place to reduce risk of spreading COVID-19. Some members wore masks, seating in the committee rooms was reduced and committees allowed testimony through Zoom.

The state’s Trial Court Funding Commission said court costs “directly account for as high as $291 million annually in support (most of the 26.2 percent generated). Additionally, approximately $127 million of the annual funds transferred from the State originate from court assessments at sentencing. When totaled, Michigan trial courts are supported, in significant part, by over $418 million assessed to criminal defendants.”

MAC encourages swift passage of HB 5488, but recognizes it is not the final solution to court funding. MAC supports further legislative action to implement reforms recommended through the Trial Court Funding Commission once this bill is passed. The recommendations of the commission address Michigan’s historic problem of financial influence on the justice system and will create a more efficient system and stable source of funding for our courts.

Please contact your legislators to support HB 5488 and ensure final passage as soon as possible.

For more information on this issue, contact Meghann Keit at keit@micounties.org.

 

State court office gives guidance on operational restarts

The Michigan Supreme Court has issued Administrative Order 2020-16, which requires courts to follow a careful, phased approach in returning to full capacity. Per the Supreme Court General Counsel, “Court plans must be based on the advice of local health experts and be approved by the State Court Administrative Office (SCAO) prior to implementation.”

Additionally, the “order also stipulates, “Courts must maintain their current level of operations until SCAO approves a court’s plan to expand in-court proceedings. Courts in each circuit may work together to submit to SCAO at each gating level a single plan wherever possible consistent with the SCAO guidelines for returning to full capacity. Conditions may also require a court to move to a previous access level, depending on local conditions.”

The full order and detailed guidance for courts can be accessed here:

MAC advises connecting with your SCAO regional office for questions regarding phasing back to “full capacity,” or about any judicial administrative orders.

 

Michigan aiming for big testing boost, governor tells local officials

Michigan is working toward testing 1 percent to 2 percent of its total population each week, Gov. Gretchen Whitmer told a virtual audience of local government leaders on Tuesday evening.

Such testing would, at the high end, represent about 200,000 tests conducted per week. At present, Michigan is testing at a rate of about 60,000 per week.

Whitmer did note that supply chain issues on testing materials still exist, but that she expected the state to reach its testing goals in “next week or two.”

 

Sign up now for next Treasury webinar on May 18

In partnership with the Michigan Association of Counties, Michigan Municipal League and Michigan Townships Association, the Michigan Department of Treasury is pleased to announce the third joint webinar, “COVID-19 Updates and Resources for Local Governments,” at 2 p.m. on Monday, May 18.

Topics will include an update after the state of Michigan’s May Michigan Consensus Revenue Estimating Conference, an update from the Michigan Department of Transportation (MDOT) on project timelines and financing and best practices around local government cash and debt management.

Participants can register and submit questions on the webinar’s registration page.

Each webinar is limited to 1,000 attendees. With previous webinars reaching capacity limits, participants are strongly encouraged to register early.

A fourth webinar is tentatively scheduled for Monday, June 8. Additional information and registration details about this June webinar will be sent in the coming weeks.

The state Treasury Department has developed a website with numbered letters, communications and resources regarding COVID-19 information for local governments and school districts. This website was created to ensure that Michigan communities have access to the most up-to-date guidance and will be updated frequently with information and resources as they become available.

 

Webinar reviews model plan for county preparedness

Counties need to have preparedness/response plans to comply with a state Executive Order, experts with the Michigan Municipal Risk Management Authority (MMRMA) said during a MAC-sponsored webinar on Wednesday.

The webinar allowed MMRMA to review and take questions on its model response plan for the COVID-19 crisis.

Among key points made by MMRMA’s Cindy King and Stephen Tobler were:

  • Counties should plan for employees to wear masks in their buildings unless the employee is in her office or cubicle.
  • Counties need to think expansively about what areas and surfaces would require regular cleaning, even down to such items as a shared stapler in a copier room, King said.
  • Any questions about returning non-essential staffers to workplaces while the Stay at Home order is still in place should be raised with a county’s legal counsel.

MAC thanks MMRMA for participating in the webinar and for making its model plan available to non-members as counties grapple with the public health, personnel and service-delivery issues created by the COVID-19 crisis.

 

State delays permit on Line 5 tunnel, asks for more data from Enbridge

The Department of Environment, Great Lakes, and Energy (EGLE) has delayed permits for Enbridge to construct a tunnel to enclose the Line 5 pipeline under the Straits of Mackinac. Enbridge filed in early April for permits to begin construction next year, with a target operational date in 2024. The letter from EGLE to Enbridge can be read here.

State officials said, “The application has been determined to be incomplete as received” due to omitted information and deeming the permit “unnecessarily long.” In the letter to Enbridge, EGLE asked for a new assessment of alternatives to the project and for the firm to shorten the permit in order to make it more accessible for the public. Enbridge has said it will comply with directives from the department. It has 30 days to resubmit the applications.

Concurrently, the Michigan Public Service Commission is still taking public comment on a request from Enbridge for a declaration that it already has the authority to re-site the pipeline under the straits. If this claim were upheld, construction on the tunnel could begin much sooner, even after the delayed permit requests this week. The public comment period for that decision from the MPSC ends on May 13.

For more information on this issue, contact Michael Ruddock at ruddock@micounties.org.

 

Governor extends restrictions on nursing, juvenile facilities

Entry to nursing, juvenile and other facilities is limited to essential personnel until May 31, under a new Executive Order signed by Gov. Gretchen Whitmer Sunday night.

EO 72 replaces a previous order with these restrictions.

This order extension is dated until May 31.

“I know this is a difficult time for families, patients and workers across the state, but we must continue to be diligent in our efforts to slow the spread of the virus,” said Whitmer. “Right now, the best we tool we have to save lives is to reduce person-to-person interaction. That is why it is necessary to extend this order and put the health and safety of Michiganders first. I hope everyone in Michigan continues to do their part to slow the spread of COVID-19.”

 

Staff picks

Each week, Legislative Update will feature a round-up of news and information links suggested by members of MAC’s staff:

 

Governor extends State of Emergency, court battle looms

Gov. Gretchen Whitmer signed new Executive Orders Thursday night to extend Michigan’s State of Emergency and Disaster Declarations until May 28.

EO 66 terminated the previous State of Emergency (SOE) order that expired April 30. EO 67 states that Michigan remains under an SOE via the Emergency Powers of the Governor Act of 1945, which, unlike the Emergency Management Act of 1976, has no time limit on a declaration and no requirement for the Legislature to extend the declaration. The governor also issued EO 68, which declares the new State of Emergency and disaster under the Emergency Management Act through May 28.

Also, limits on places such as bars, restaurants and theaters are extended for the duration of the SOE under EO 69. The order continues to allow businesses to offer food and beverage using delivery service and takeout services.

Meanwhile, Republican majorities in the Legislature adopted HR 250 (Rep. Hernandez R-St. Clair) and SR 114 (Sen. Stamas, R-Midland), which authorize legal action on behalf of each legislative chamber against the governor for taking steps to extend the SOE.

With a court fight looming, Gongwer News Service reported, “Not only do several attorneys who have worked in state government for both parties say the Emergency Powers of the Governor Act clearly empowers the governor to put the state under an emergency and issue necessary rules and orders to address the situation without legislative approval, there’s also a theory that Ms. Whitmer could simply issue a new declaration under the Emergency Management Act with that declaration good for 28 days with nothing the Legislature can do, as long as she can point to new circumstances.”

In other actions on Thursday:

  • The Legislature sent Senate Bill 858 to the governor, which codifies some EOs issued for various dates between April and July, while not addressing six of the governor’s orders, including the Stay at Home order. Bars, restaurants and other similar businesses would be able to open on May 16 under the legislation. Other key orders that would continue under the bill include protocols for prisons and jails (EO 62 through July 30) and restrictions for nursing homes and other long-term care facilities (EO 50 until July 30). The governor announced she intends to veto this bill.
  • The House passed House Bill 5709 (Rep. Sheppard, R-Monroe), which would make disobeying a rule, order or directive issue by the governor a civil infraction, rather than the current misdemeanor, and allowing a fine of up to $100. The bill specifically says the statutory fine would take precedence over language of any order stating that the violation would constitute a misdemeanor.

 

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NACo leader touts ‘3 T’s’ and ‘guardrails’ for next federal rescue bill

In final event of 2020 Virtual Legislative Conference, the head of the National Association of Counties urged Michigan leaders to contact their members of Congress to back a “CARES Act 2.0” measure that would include $125 billion in direct aid to counties.

Matt Chase, NACo executive director, said the U.S. House is expected to take the lead on the bill. “Bipartisanship support for local aid is building,” Chase said. “But we need to keep up the pressure.”

Chase said NACo’s message to Congress centered on two themes right now:

  • Focus on the 3 T’s of testing, tracing and treatment
  • Counties want “guardrails, not third rails,” a response to criticism by some lawmakers that local governments want to use COVID funds to handle longstanding and unrelated fiscal issues, such as pensions

Chase said NACo supports the creation of a federal ombudsman or rapid response team in the 2.0 bill to give counties immediate answers on whether a specific use of federal funds was appropriate. “We are totally for accountability.”

The discussion was the final event of MAC’s two-week Virtual Legislative Conference, launched after the association was forced to cancel its traditional in-person event in Lansing. All eight virtual events can be viewed 24/7 by visiting the conference page on our website.

“Matt’s comments were an excellent cap to our conference,” said MAC Executive Director Stephan Currie. “We averaged 40 to 50 people viewing each event live, and we know far more will view them at their convenience later.”

 

Maximize your use of MAC’s heat map to track COVID’s advance

MAC members are encouraged to regularly visit micounties.org to use the COVID tracking heat map put together for us by Munetrix. The map has many features of which members may not be aware.

For example, using the cases per 100,000 residents function (see images), you can see the advance of COVID while adjusting for population. Some notable results in this feature:

  • Otsego and Crawford counties have rates approaching 400 cases per 100,000 residents
  • Shiawassee, Hillsdale, Tuscola, Lapeer, St. Clair, Iosco and Alpena counties are near or over the 200 cases per 100,000 residents rate

The highest county rate remains Wayne with 1,783 cases per 100,000 residents; five UP counties (Alger, Baraga, Iron, Keweenaw and Ontonagon) show a rate of 0 cases, when adjusting for population. (All figures are from the state’s April 30 report.)

In related news this week:

  • AP and Crain’s Detroit both reported that four rural counties — Arenac, Branch, Lapeer and Mecosta —had ICUs that were at 100 percent capacity on Monday.
  • Crain’s Chad Livengood noted on Thursday, “In the past 10 days, there’s been a 169% increase in positive cases in Kent County, +230% in Ionia County, +133% in Allegan, + 85% in Muskegon, +97% in Kalamazoo, +57% in Branch, +54% in Calhoun, +51% in Berrien (and) +48% in Van Buren.”
  • A University of Maryland tracker on social distancing has shown a clear downward trend for Michigan: On March 30, Michigan scored a 64 out of 100 on its index, which “represents the extent residents and visitors are practicing social distancing.” On April 13, the score had risen to 66. Since then, Michigan has seen a steady decline, hitting 57 on April 20, 52 on April 27 and 48 on April 28 (last date available).

For more information on MAC’s heat map, including the software code if you wish to embed the map on your own county’s website, contact MAC’s Derek Melot at melot@micounties.org.

 

MAC sets May 6 webinar to aid counties on return-to-work plans

Counties continue their planning to return more employees to on-site operations. In a webinar on May 6, experts from the Michigan Municipal Risk Management Authority (MMRMA) will walk participants through MMRMA’s COVID-19 Model Response Plan and then take questions from MAC members.

To pre-register for this event, click here.

After registering, you will receive a confirmation email containing information about joining the webinar.

 

Wave of property tax forgiveness bills hits State Capitol

With 25 percent of Michigan’s work force unemployed and continued uncertainty about when the state will reopen, legislators are advancing property tax relief measures that would affect counties: 

  • House Bill 5705 (Rep. Yaroch, R-Macomb) would exempt property taxes for second homes during the period of time owners were banned from utilizing that property. 
  • House Bill 5738 (Rep. Elder, D-Bay) would allow county treasurers to temporarily suspend strict compliance with the foreclosure process and extend the redemption deadline for 30 days after the State of Emergency is lifted.
  • House Bill 5750 (Rep. Sheppard, R-Monroe) and Senate Bill 901 (Sen. Stamas, R-Midland) seek to codify the governor’s Executive Order granting an extension to the date by which a property owner must make payment to redeem property in foreclosure until May 20, 2020, or 30 days after the termination of the State of Emergency.
  • House Bill 5761 (Rep. Lower, R-Montcalm) would waive interest, penalties, fees and late charges for unpaid property taxes levied in 2020 until the property reaches delinquency status. It also allows local units to apply to the Michigan Department of Treasury for reimbursement.  Funds would have to be appropriated to the department for such purpose. However, with the projected $3 billion deficit the state is facing for FY20 alone, such an appropriation is unlikely.

County governments, while always seeking to make payment arrangements so owners can stay in their homes, rely on the approximate $15 billion in property taxes collected each year to provide the services our communities require. Losing these revenues for extended periods would inevitably put more pressure on county budgets and create serious cash flow issues.

Additional grace periods for foreclosures due to access issues with county offices are workable in the short term, but an overall exemption for taxes for any period of time is not; removing penalties for non-payment of taxes that sweep in residential and commercial properties regardless of hardship would cripple county revenues.

MAC opposes HB 5705 and is carefully studying the other measures.

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

 

Return of construction work has counties staffing up

With an Executive Order expected at any time to allow for most construction work to resume during the State of Emergency, county leaders across Michigan are pulling in staff to ensure building departments are ready for regulatory and permit requests

A flood of requests is expected on May 7, the expected date of the easing of restrictions on the industry.  

Some counties have asked staff to return to work already in order to prepare. Many administrators and building department staff are working on formalizing protocols: some counties will interface with the public by appointment-only, while some will open the county building and follow social-distancing protocols and require face masks.

So far, at least 12 counties have confirmed plans to resume building inspections by May 7. 

 

Enbridge moves ahead with Line 5 permitting process

Enbridge has filed a new state permit application with the Michigan Public Service Commission (MPSC) that would allow work to begin sooner on the tunnel that will house the Line 5 pipeline under the Straits of Mackinac.

The energy firm is seeking a declaratory ruling from the MPSC it already has the authority to relocate the pipeline to the new tunnel, which would sidestep a lengthy approval process that could take an additional year. MPSC is now holding two weeks of public comment, which opponents of the pipeline say is an attempt to diminish public input on a controversial topic during a global pandemic. Representatives from Enbridge say they are working to stay on the schedule that was agreed to in 2018 under Gov. Rick Snyder and “have been communicating with state and federal agencies to ensure we remained aligned in terms of the timing of this application.”

This comes weeks after the U.P. Energy Task Force, created by Executive Order by Gov. Whitmer, released an initial report outlining alternatives to Line 5, such as increasing propane reserves, utilizing railroad lines, and more.

The public comment period for Enbridge’s request ends May 13.

For more information, contact Michael Ruddock at ruddock@micounties.org.

 

18 mental health entities get federal help under Stabenow bill

Eighteen Michigan community mental health organizations have been selected as Certified Community Behavioral Health Clinics, U.S. Sen. Debbie Stabenow announced this week. Michigan will receive $54,452,014 in new funding for the clinics.

Stabenow’s announcement is a result of the passage of the “Excellence in Mental Health and Addiction Treatment Act,” which she sponsored.  Stabenow discussed this important legislation and upcoming funding with Michigan county leaders during a MAC-sponsored briefing with her in March on Capitol Hill.

The Community Mental Health Association of Michigan, a MAC affiliate member, praised Stabenow’s efforts in support of continued funding for Certified Community Behavioral Health Clinics (CCBHC):

“The recent SAMHSA announcement totaling over $54 million designates 18 Michigan organizations as CCBHC sites. Some of these sites are current CCBHC sites who have received continuation funding; some are newly designated CCBHC sites. These funds will allow those organizations to provide much needed community-based and integrated services for the people in their communities at a time when service demands are at an all-time high.”

For more information, contact Meghann Keit at keit@micounties.org.

 

Whitmer extends ‘Stay at Home’ to May 15, with some changes

Michigan’s “Stay at Home” order will remain in effect until at least May 15, though some provisions of it are being eased, Gov. Gretchen Whitmer announced Friday.

Her new Executive Order will supersede the existing one that was to run to April 30.

The new version contains a variety of changes:

  • Requiring the use of basic cloth masks in public indoor spaces, such as grocery stores
  • Specifically allowing for more outdoor activities
  • Lifting restrictions on certain business activities
  • Allowing Michigan residents to travel between residences in-state

The new version, however, does retain such restrictions as:

  • 10-person limit on attendance at funerals
  • No gatherings of individuals who are not from the same household
  • A general prohibition on activities that are not essential to public health and life

The governor made these changes on the day Michigan announced it had 36,641 cases and 3,085 deaths from the coronavirus.

 

Legislature creates COVID-19 oversight committee

A 10-member panel of legislators will examine how Gov. Gretchen Whitmer has handled Michigan’s COVID-19 response, the Legislature voted today.

 The committee will be chaired by Rep. Matt Hall (R-Calhoun) and will investigate and consider restricting the powers the governor has and utilized since her original declaration of emergency on March 10, 2020. The move comes after much criticism from Republican leaders in the House and Senate over the governor’s extension of the state of emergency and Stay at Home orders.

Republicans in the House and Senate have forwarded their own proposals on reducing restrictions on business and social activities.

 

Upcoming MIDC decisions will be critical to counties

The Michigan Indigent Defense Commission met this week to discuss an upcoming grant manual for local systems, as well as the FY21 grant contract for systems and other items. This was the second meeting the MIDC held virtually. The first virtual meeting was recorded and available on the MIDC website; however, the April meeting minutes and recording are not yet online.

The commission discussed the grant manual proposed by staff during previous meetings and have included many provisions that MAC requested since the initial version. While the agenda was slated for a vote on the manual, Commissioners made additional modification requests and final approval will now take place at the June 16 meeting.  The latest version of the draft grant manual can be found here.

MAC continues to work with MIDC on grant contract language for FY 21. A final version is likely to be voted on by the commission on June 16. Once a final agreement is approved by the MIDC, MAC will update members.

The commission will be putting forward objective standards for the determination of whether a defendant is indigent or partially indigent, as well as the amount a partially indigent defendant must contribute to their defense. This is a requirement of the Commission under the MIDC Act, as amended in 2018. Members have advised MAC that the absence of this standard from MIDC has been problematic, so progress on this issue is appreciated.

For more information, contact Meghann Keit at keit@micounties.org.

 

No jury trials in Michigan until at least June 22

All jury trials in Michigan are delayed 60 days, until June 22, 2020, under an Administrative Order issued by the Michigan Supreme Court on Thursday.

The court said that local orders that delay trials beyond the June 22 date can stay in place.

The order “also authorizes the State Court Administrative Office to initiate pilot projects related to conducting remote jury trials.”

 You can access the new order by clicking on this link:  Administrative Order No. 2020-10.

 

Governor’s health worker pay boost doesn’t cover skilled nursing facilities

Gov. Gretchen Whitmer this week announced increased pay for Direct Care Workers providing Medicaid-funded, in-home behavioral health and long-term care services during the coronavirus pandemic by $2 per hour. The increase is temporary and applies to services provided between April and June.

The Michigan County Medical Care Facilities Council (MCMCFC) sought clarity from the Governor’s Office on whether this increase applies to skilled nursing facilities. Recent indications through the Department of Health and Human Services say it does not. Without further confirmation from the Governor’s Office, MCMCFC will move forward as directed by DHHS that nursing homes are not included at this point.

“It is unfortunate that the press release is claiming to support direct care workers that provider services to the most vulnerable, but nursing facilities who care for the states most fragile are excluded,” said Renee Beniak, MCMCFC executive director, “ It is very confusing for our members, and we will continue to seek guidance through these unprecedented times.”

For more information, contact Renee Beniak at renee@mcmcfc.org or Meghann Keit at keit@micounties.org.

 

MAC to scale back updates to M-W-F schedule

Starting next week, MAC will be scaling back its daily COVID update emails to a schedule of Monday, Wednesday and Friday. If events dictate, MAC will issue special messages on other days.

“We have received excellent feedback from members on these updates,” said Stephan Currie, executive director. “However, in recognition of the huge flow of information coming to county leaders right now, we think a three-per-week pace balances the need to inform with members’ time pressures.”

Updates from this week:

 

NACo sets May 5 webinar on long-range planning

On May 5, county leaders may join a discussion on “Long-range Planning for Health, Equity and Prosperity” from 2 p.m. to 3 p.m. eastern time. Click here to register

“How do we move beyond talking about equity to building equitable communities and responding equitably to community needs? Long-term community change and immediate crises such as COVID-19 both require significant attention and resources; they both require prioritizing where to focus that attention and those resources; and they both have the potential to increase or reduce health and prosperity inequities. … Join us for this webinar to learn about tools, frameworks, and strategies that will help you integrate equity into your work today in ways that will also help you plan for equity in your community tomorrow.”

For more information contact Kirsty Fontaine at kfontaine@naco.org.

 

Michigan airports receive $257 million in corona rescue funds

Almost 100 airports scattered across Michigan will share in $257 million in federal aid due to disruptions caused by the coronavirus. The amounts range from $20,000 for Ontonagon County’s Shuster Field to $142 million for Detroit Metro Wayne County.

Among county-owned airports receiving assistance are:

  • Gogebic-Iron County Airport: $30,000
  • Houghton County Memorial Airport: $1,098,918
  • Chippewa County International Airport: $1,095,968
  • Roscommon County Blodget Memorial: $30,000
  • Ionia County: $30,000
  • Muskegon County: $1,090,341
  • Lenawee County: $30,000

 

Local governments will make $1.1B ask to governor in letter

MAC joined with associations for Michigan’s cities, villages and townships today on a letter to Gov. Gretchen Whitmer to advise on distribution of federal aid to local governments dealing with the corona pandemic.

The letter, signed by Executive Director Stephan Currie and his counterparts at the Michigan Municipal League and Michigan Townships Association, said, “Your letter to the White House correctly identifies a major concern that local governments around Michigan are preparing to face. As you are aware, Michigan’s local governments bore the brunt of the last recession and many are ill-positioned to face another economic downturn without significant support from the state and federal government. With that fact in mind, our three organizations respectfully request that you designate a significant portion of the current CARES Act funding the state is set to receive to cover local government reimbursements and recovery expenses resulting from the current pandemic.”

The groups added, “We urge the state to set aside an equitable amount of money for local units of government to draw down upon to reimburse their eligible, COVID-related expenses. Based on the amount the CARES Act made available to our largest members, we ask that an equitable per capita amount, equal to approximately $1.1 billion, be made available to all other local units of government in Michigan to cover these expenses.”

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

 

Chief justice opens 2020 Virtual Legislative Conference

Highlighted by a presentation from Chief Justice Bridget Mary McCormack, MAC’s 2020 Virtual Legislative Conference started its two-week run on Thursday, April 16.

McCormack detailed her work on a variety of reforms in the judicial branch, particularly the actions taken to reduce the threat to jails posed by corona and administrative orders to allow for virtual court proceedings to help protect the public health.

Best practices for boards was the subject of the second event on Thursday, a workshop led by John Amrhein of MSU Extension on “extraordinary governance.”

Following his presentation, Amrhein took up a variety of questions from commissioners looking for tips on how to boost engagement of their county colleagues.

On Friday, Harmony Gmazel of MSU Extension led a workshop on economic development strategies.

“The first wave is complete,” said Stephan Currie, MAC Executive Director. “We had some glitches, but attendance was strong and pre-registrations for next week’s events are looking good, too.”

The conference resumes on Tuesday, April 21 with a workshop on addressing rising waters in Michigan.

For complete details, including videos of conference events, visit the conference page

 

Governor, Senate Republicans offer thoughts on reopening economy

While COVID-19 will be with us for months to come, Michigan leaders have been planning for how to bring more businesses and workers back online.

This week, Gov. Gretchen Whitmer joined with other governors in region to outline some metrics for easing the current restrictions. They are:

  • Sustained control of the rate of new infections and hospitalizations. 
  • Enhanced ability to test and trace. 
  • Sufficient health care capacity to handle resurgence. 
  • And best practices for social distancing in the workplace.

The governor also said on Friday that she’s hopeful to begin easing restrictions on May 1.

Republicans in the Michigan Senate unveiled their own proposal on Thursday to reduce restrictions. And the Trump administration has issued guidance meant for states to consider as this work progresses.

Michigan’s stay-at-home order is in place until April 30, which puts it in a group of 16 states with that date. Another 22 states have orders going past May 1 (New York and Wisconsin extended this week).

 

Chief justice urges counties to seek federal aid

Supreme Court Chief Justice Bridget Mary McCormack urged state and local governments on April 16 to apply for more than $24 million in Coronavirus Emergency Supplemental Funding (CESF) made available through the US. Department of Justice’s Bureaus of Justice Assistance. The chief justice also noted this during her discussion with MAC at our opening session of the 2020 Virtual Legislative Conference.

MAC shared information last week with members about the available funding and encourages those that have not already applied to do so as soon as possible. The official deadline is May 29.

Per BJA guidance, “Funds awarded under the CESF Program must be utilized to prevent, prepare for, and respond to the coronavirus. Allowable projects and purchases include, but are not limited to, overtime, equipment (including law enforcement and medical personal protective equipment), hiring, supplies (such as gloves, masks, sanitizer), training, travel expenses (particularly related to the distribution of resources to the most impacted areas), and addressing the medical needs of inmates in state, local, and tribal prisons, jails, and detention centers.

“Funds may not be used to supplant state or local funds but must be used to increase the amounts of such funds that would, in the absence of federal funds, be made available. Funds may not be used for direct administrative costs that exceed 10 percent of the total award amount.”

For any localities that need assistance drawing down funds, the BJA offers a support hotline: 888-549-9901 or GMS.HelpDesk@usdoj.gov. Find the application here

This list of expected eligible entities in Michigan was made available by the BJA last week. If your county was not specifically identified, MAC suggests using the hotline to ask about qualifying.

 

May 5 summit will focus on opioid treatments

Please join the Center for Behavioral Health and Justice for our Opioid Treatment Ecosystem Community of Practice Virtual Summit on Tuesday, May 5 from 9 a.m. to 11 a.m.

Click here to register.

Hear from communities across the state who are implementing processes to provide medications for opioid use disorder within their county jails and leading community-based initiatives to expand the broader treatment ecosystem. An in-person event is being planned for this fall.



New order mandates ‘regional hubs’ for long-term care patients

On Tuesday night, Gov. Gretchen Whitmer issued Executive Order 49 to “to provide limited and temporary relief from certain regulatory requirements to enhance the operational capacity and efficiency of health care facilities.”

The order states, “The Michigan Department of Health and Human Services will work with long-term care facilities across the state to establish COVID-19 designated regional hubs. These hubs will provide higher levels of care and services to treat patients with increased needs. All other nursing facilities will continue providing care in a traditional manner which may include the care of patients who have been diagnosed with COVID-19, but do not require specialized care and services.” 

Michigan counties are a key provider of long-term care services via the 34 county-owned facilities that are members of the Michigan County Medical Care Facilities Council. Those facilities operate more than 4,600 beds in locations from Houghton to Hillsdale counties.

 

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