Legislative Update 7-7-23

July 7, 2023Blog, Events, Legislative, MAC news, MACSC, Marketing, NACo

ICYMI: Revenue sharing, Child Care Fund boosts mark FY24 state budget

Increases in county revenue sharing and reimbursements for the Child Care Fund highlight a fiscal 2024 state budget approved by legislators during marathon sessions in Lansing this week.

What is being described as “the largest state budget in Michigan history” includes a $17.6 million boost in county revenue sharing, which will bring the total in FY24 to $263.4 million. This represents the seventh consecutive increase in this account after a decade of disinvestment by the state.

“We are obviously pleased with increases in revenue sharing, and especially this year in light of the fact that these are broad-based boosts that reach every corner in the state in a budget marked more by specific and highly individualized projects by the Legislature,” said Stephan Currie, MAC’s executive director.

See county-by-county revenue sharing estimates for FY24.

The fact that the final increase was much less than had originally been discussed earlier this year is evidence, said MAC’s chief lobbyist, that the true, fundamental reform is to create and fund a separate Revenue Sharing Trust Fund. “What we have seen from the conference committee this week is a reminder that we need to take revenue sharing out of the annual political free-for-all with the budget,” said Deena Bosworth. “Our plan, developed in close coordination with other local government groups, will do just that, and we remain hopeful that, with members’ help, we can bring this reform into reality later this year.”

Bosworth was referring to plans embodied in House Bills 4274, by Rep. Amos O’Neal (D-Saginaw), and 4275, by Rep. Mark Tisdel (R-Oakland), which would create a trust fund and dedicate a percentage of the state sales tax to it, thereby ensuring annual growth when sales tax receipts grow and separating revenue sharing from much of the current budget politics.

To send a message of support to your legislators of this reform, click here.

In other county-related items from the FY24 budget:

$6.6 billion is assigned to transportation work;
$1.1 billion is assigned to environmental work (with about a third of it coming from the state General Fund);
Reimbursements for counties from the Child Care Fund will go to 75 percent from the current 50 percent, securing one of MAC’s key priorities for 2023;
$72 million will go into Michigan Indigent Defense Commission grants to cover costs associated with Standard 8 adopted by the commission;
$19.3 million is dedicated to foster care per diems, representing an 8 percent increase;
$25 million is dedicated in an increase to Essential Local Public Health Services; and
$76 million is dedicated to implementing the provisions of Proposals 1 and 2 from 2022 that alter legislative term limits, transparency and election procedures, with $30 million of that figure set aside for grants to incentivize early voting efforts on a multi-jurisdictional effort.

For more information about MAC’s advocacy on the state budget, contact Deena Bosworth at bosworth@micounties.org.

MAC team dives into state budget numbers related to counties

Michigan’s fiscal 2024 budget has a $17.6 million boost for county revenue sharing, MAC’s Podcast 83 team report in a special episode taped on June 29.

Host Stephan Currie led the MAC Governmental Affairs Team of Deena Bosworth, Madeline Fata and Samantha Gibson through the big budget details hammered out midweek by the Legislature:

Revenue sharing goes to $263 million for the 83 counties;
The Child Care Fund reimbursement rate goes to 75 percent, from 50 percent;
Full funding goes to the Michigan Indigent Defense Commission to implement the controversial Standard 8; and
More than $70 million is committed to implementing new election and transparency measures that voters approved in 2022.

View the full video of the episode, taped on June 29, 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.

Legislative Update takes brief summer hiatus

MAC’s Legislative Update will not be released on Friday, July 14.

The weekly email blast, with all the important news affecting counties in Michigan, will resume on Friday, July 21.

Remember to also check the news section of MAC’s website, https://micounties.org/mac-news/, for any breaking news items.

Staff picks

An Airbnb collapse won’t fix America’s housing shortage (Vox.com)
Report: Labor shortage, hiring challenges persist for state and local government hiring managers (American City and County)
DNR auctioning off nearly 100 properties across Michigan. Here’s how to bid (WXYZ.com)
Our ‘Movement Hallway’ naturally narrows with age. But these simple mobility strategies can help maintain it (WellandGood.com)

Legislative Update 6-30-23

June 30, 2023Blog, Events, Legislative, MAC news, Marketing, NACo

Revenue sharing, Child Care Fund boosts mark FY24 state budget

Increases in county revenue sharing and reimbursements for the Child Care Fund highlight a fiscal 2024 state budget approved by legislators during marathon sessions in Lansing this week.

To send a message of support to your legislators of this reform, click here.

In other county-related items from the FY24 budget:

$6.6 billion is assigned to transportation work;
$1.1 billion is assigned to environmental work (with about a third of it coming from the state General Fund);
Reimbursements for counties from the Child Care Fund will go to 75 percent from the current 50 percent, securing one of MAC’s key priorities for 2023;
$72 million will go into Michigan Indigent Defense Commission grants to cover costs associated with Standard 8 adopted by the commission;
$19.3 million is dedicated to foster care per diems, representing an 8 percent increase;
$25 million is dedicated in an increase to Essential Local Public Health Services; and
$76 million is dedicated to implementing the provisions of Proposals 1 and 2 from 2022 that alter legislative term limits, transparency and election procedures, with $30 million of that figure set aside for grants to incentivize early voting efforts on a multi-jurisdictional effort.

For more information about MAC’s advocacy on the state budget, contact Deena Bosworth at bosworth@micounties.org.

Pay boosts for medical workers included in FY24 budget

Employees at medical care facilities will get pay boosts under budget plans approved by the Legislature for fiscal 2024 this week.

Final versions of the budget include:

An 85-cent per hour increase for direct care workers, this is in addition to the $2.35 direct care worker wage increase that CNAs, LPNs, RNs and respiratory therapists currently receive and brings the total wage increase for direct care workers employed in nursing facilities to $3.20 per hour
An 85-cent per hour increase for long-term care/non-direct care workers

Each of these wage increases will take effect Oct. 1, 2023. The Department of Health and Human Services (MDHHS) will issue updated policies for providers to request reimbursement for the wage increases.

The Michigan County Medical Care Facilities Council, an affiliate of MAC, has supported wage increases for critical workers in the long-term care industry in 2023.

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

Podcast episode focuses on revenue sharing, budget timeline

A highly successful committee hearing and continued uncertainty on budget timing were two of the topics discussed this week in Podcast 83, MAC’s podcast on all things related to county government.

Host Stephan Currie led the MAC Governmental Affairs Team of Deena Bosworth, Madeline Fata and Samantha Gibson through a tour of pending legislative matters in Lansing, including:

Revenue Sharing Trust Fund, with Bosworth reporting on her testimony before an apparently approving House committee on the topic, which would create a dedicated stream of sales tax dollars for county revenue sharing;
Public Safety Trust Fund, with Bosworth noting that the same House committee seemed to share many of MAC’s concerns about the concept, particularly its lack of provisions to recognize the growing demands on county sheriffs;
Juvenile Justice Reform, with Gibson explaining that key legislators are looking to spend the summer taking testimony and then act on the huge legislative package, which MAC supports, in the fall; and
Fiscal 2024 state budget, with Bosworth noting that the new Democratic majority in Lansing has been surprisingly tight-lipped over the final revisions to the spending plan that is expected to be finished this week for the budget year that starts Oct. 1.

View the full video of the episode, taped on June 26, 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.

BEAD means $1.6 billion in broadband funds for state

It’s official. Michigan will receive $1.56 billion in federal funding as part of the Broadband Equity, Access and Deployment (BEAD) Program. While this amount was not a surprise and has been expected since last fall, President Biden and the National Telecommunications and Information Administration (NTIA) confirmed each state’s allocation on Monday.

In total, $42.45 billion will be distributed across the United States to provide broadband to unserved and underserved areas. The BEAD program is the largest investment in high-speed internet ever and is part of Biden’s larger plan to connect the entire country by 2030. The Michigan High-Speed Internet Office will be responsible for administering these funds and expects to open the application process in 2024.

Last week, MAC reported that $300 million had been awarded to various communities and internet providers across Michigan as part of two separate federal programs. With the addition of the BEAD money, Michigan will see nearly $2 billion invested in broadband infrastructure in just two years – a historic feat. Stay tuned for updates on the BEAD program’s availability!

For more information on this issue, contact Madeline Fata at fata@micounties.org.

Pilot sites wanted for addiction stigma initiative

The Addiction Policy Forum is accepting applications for pilot sites for a no cost anti-stigma initiative. All county governments in the United States are eligible to apply. The project focuses on addiction stigma reduction, increased understanding of addictions, changes in helping behaviors towards those with substance use disorder and gaining insight into levels of addiction stigma within communities that become pilot sites.

To apply, visit Addiction Policy Forum Anti-Stigma Initiative.

‘WOTUS’ ruling to have little local impact, state agency says

“A ruling by the U.S. Supreme Court changing the federal definition of protected wetlands will have little to no impact in Michigan, which is one of three states given authority by the federal government to administer its own wetlands program under state law,” the Michigan Department of Environment, Great Lakes and Energy reported on June 22.

“Ruling on the case Sackett v. EPA last month, the court reduced the scope of the waters and wetlands regulated by the federal Clean Water Act. However, EGLE will continue to administer state law which provides effective protection of Michigan’s wetlands, lakes and streams but also streamlines the program for the regulated community.

“Although what is regulated under federal law has changed numerous times in recent years, Michigan’s wetlands protections are vested in state law which has provided clear definitions since it was enacted in 1979. The SCOTUS ruling, as well as the instability and lack of regulatory clarity at the federal level over the last decade further reinforces the importance of having a comprehensive and stable program in Michigan.

“Different criteria between state and federal wetlands laws make it infeasible to do a side-by-side comparison in acreage covered by state law, as opposed to what would be covered if Michigan fell under federal rules. Michigan will continue to protect waters and wetlands that are critical to protecting water quality and controlling flooding in communities across the state.

“‘Michigan is the epicenter of the world’s greatest freshwater ecosystem – the Great Lakes – so it is fitting that we have a direct role in protecting the wetlands that nurture and feed those freshwater sources,’ said James Clift, an EGLE deputy director. ‘Neither the rules in Michigan, nor our commitment to protecting freshwater resources, has changed in the wake of this ruling.’”

Allegan, Berrien commissioners attend power plant meeting

Allegan County Commissioner Dean Kapenga and Berrien County Commissioner Chokwe Pitchford were among the leaders who attended a gathering of state, local and economic development officials to address the future of the Palisades nuclear power plant on Monday convened by state Rep. Joey Andrews (D-Berrien) as a “repowering roundtable” discussion.

MAC offices closed to observe Independence Day holiday

MAC’s offices in Lansing will be closed July 3-4 to observe the Independence Day holiday.

MAC will resume normal office hours on Wednesday, July 5 at 8 a.m.

To see a full text of the Declaration of Independence, issued July 4, 1776, click here.

Staff picks

Behind the Scenes of the Overdose Crisis (Johns Hopkins Bloomberg School of Public Health)
At Michigan’s westernmost point, a waterfall and a remote county park (MLive)
Autonomous vehicle transit pilot in rural Minnesota to expand with $9.3M federal grant (American City and County)
Orcas disrupt boat race near Spain in latest display of dangerous, puzzling behavior (Associated Press)

Legislative Update 6-23-23

June 23, 2023Blog, Events, Legislative, MAC news, MACSC, Marketing, NACo

MAC continues push on Revenue Sharing Trust Fund legislation

“Revenue sharing is an unrestricted revenue source that local units of government use for the services that they need … What we’re trying to accomplish here is to have some growth entered into the formula.”

So explained MAC’s Deena Bosworth to the House Committee on Local Government and Municipal Finance this week about bills that would create a dedicated source of dollars for local revenue sharing. Substitute versions of the original legislation were adopted in the committee prior to joint testimony given by MAC, the Michigan Municipal League and the Michigan Townships Association. (Click here to view Bosworth’s testimony, which begins at the 20:20 mark.)

House Bills 4274, by Rep. Amos O’Neal (D-Saginaw), and 4275, by Rep. Mark Tisdel (R-Oakland), would:

Create a separate “Revenue Sharing Trust Fund” to receive and hold dollars solely for the purpose of fulfilling the state’s promise to local governments on revenue sharing;
Require that 8 percent of the revenue generated by 4 percentage points of the state’s sales tax rate be directed into the fund; and
Result in $601.1 million in statutory revenue sharing for all local governments across Michigan based on the May Consensus Revenue Estimate for sales tax.

Counties would receive 46.14 percent of this total in the first year, $277 million, which would be an increase of nearly $31 million from the current total.

MAC has long sought to create stability and fairness in the revenue sharing system by removing the statutory portion of it from the annual appropriations process and by designating a steady revenue source.

The bills did not receive a vote this week, and it is currently unclear if the Legislature will include these amounts and calculations in the state’s fiscal 2024 budget, which is expected to be completed early next week.

MAC has a digital advocacy campaign under way in support of these reforms and encourages all county commissioners to utilize this communication tool to notify your legislators of your support for the policy.

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

Lawmakers study Public Safety Trust Fund concept

Bills that would carve out 1.5 percent of the first 4 percentage points of the state sales tax and dedicate that revenue to public safety departments within municipalities with high crime rates were up for testimony this week in the House Committee on Local Government and Municipal Finance.

House Bill 4605, by Rep. Nate Shannon (D-Macomb), and HB 4606, by Rep. Alabas Farhat (D-Wayne), would yield about $110 million for city and township police departments based on a three-year average of violent crime rates and be disbursed on a proportional basis based on a municipality’s average share of statewide reported crimes.

The bills would prevent eligible municipalities from supplanting existing public safety allocations with this funding unless there is a decline in total general fund from the previous year and a proportional decline in its existing reoccurring resources.

The bills do not include direct funding for county sheriff departments, though they do allow for a pass-through of the funds should a sheriff’s department have a contract with a local municipality to provide police services.

MAC does not have an official position on the bills at this time, but several inequities in the bills have been identified. First, numerous townships across the state rely on sheriff departments for police services but do not have a contract for that service and would, therefore, be ineligible for this funding. Second, increased policing will ultimately result in more incarcerations in county jails, thereby increasing costs at the county level without any corresponding financial assistance. Lastly, many counties in our state have law enforcement shortages and/or lack the tax base to handle the public safety needs brought on by increased tourism.

MAC will work with the bill sponsors and advocates to address our concerns while still supporting the overall effort of additional resources to address violent crime.

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

Broadband projects gearing up with new federal dollars

Michigan is slated to receive nearly $300 million in federal funding to expand broadband access across the state, according to two separate announcements this week.

About $238 million comes from the Realizing Opportunity with Broadband Infrastructure Networks (ROBIN) program to support 24 separate projects, while another $61 million comes from the National Telecommunications and Information Administration (NTIA) direct to Peninsula Fiber Network (PFN).

The Michigan High-Speed Internet Office (MIHI) announced Tuesday it had awarded 11 applicants a total of $238 million. Those applying for ROBIN dollars had to demonstrate public-private partnerships and an ability to match funds. This means the actual investment in broadband infrastructure through ROBIN will be $578 million. MIHI estimates these funds will help to connect more than 100,000 unserved homes, businesses, and institutions. There is a comment and objection period between now and July 31, 2023, so while these projects have been approved, they are not set in stone just yet.

As for the $61 million from NTIA, PFN has shared its plans to distribute the funds across three projects benefiting various regions of the state:

An underwater fiber optic link will be installed to connect Benton Harbor and Chicago.
The Upper Peninsula will be connected to Beaver Island and Charlevoix.
A route will be installed between Flint and Port Huron.

MAC is thrilled to see such substantial investments in broadband infrastructure in Michigan, and there is more to come: Michigan expects to receive roughly $1.6 billion as part of the Broadband Equity, Access, and Deployment (BEAD) program in 2024. These funds will be prioritized for unserved and underserved locations and the application process will likely begin early next year.

For more information on MAC’s work on broadband, contact Madeline Fata at fata@micounties.org.

Justice commission bill passes Senate

A bill to establish the duties of a new Michigan Sentencing Commission passed out of the Senate on Thursday.

Senate Bill 377, by Sen. Ed McBroom (R-Dickinson), advanced out of the chamber, though its companion measure, SB 376, by Sen. Stephanie Chang (D-Wayne), did not receive a vote. This is likely due to House Bills 4173 and 4384, by Reps. Abraham Aiyash (D-Wayne) and Luke Meerman (R-Ottawa) respectively, having passed out of the House last week and being referred to the Senate Judiciary Committee.

None of this legislation allows for a representative of county boards of commissioners on the state panel, despite a county’s role as a funding unit and key administrative piece of local criminal justice.

In light of this deficiency, MAC remains opposed to HB 4173 and SB 376.

Given a county’s role as the funding unit, and its fiduciary responsibilities to jails, sheriff’s offices and prosecutor’s offices, it is imperative that counties have a voice, MAC Governmental Affairs Associate Samantha Gibson testified previously.

In SB 377 and HB 4384, the commission would be tasked with submitting a prison and jail impact report relating to any modifications to sentencing guidelines, including any impact on state and local correctional facilities. There are also indirect costs associated with the bills, depending on decisions made by the commission. Costs could increase or decrease, depending on changes made to sentencing guidelines. The potential for financial burdens imposed by the state onto county jails is of great concern to MAC. A county voice is crucial on the commission.

Despite the current refusal from legislators to include county commissioners on the commission, MAC will continue to press for such representation.

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

Podcast delves into big changes for drain code

Bills designed to allow for water management districts and for the assessment of costs across watersheds in Michigan are the topic of a special episode of MAC’s Podcast 83 released on June 20.

MAC’s Deena Bosworth hosted a session with Stacy Hissong, general counsel for the Michigan Association of County Drain Commissioners (MACDC) and member of the law firm of Fahey Schultz, on the proposed rewrite of Chapter 22 of the Michigan Drain Code.

House Bills 4382-83, by Reps. Curt VanderWall (R-Mason) and Christine Morse (D-Kalamazoo) respectively, would allow local governments and residents to petition the drain commissioner for the establishment of the districts and, if found necessary, to create a plan to manage stormwater within the district in ways not currently allowed.

The plan would be unique to each district and could include actionable items like regional detention, buffer strips and the creation of wetlands, rain gardens and the like. The intent is to slow down and detain water during major storm events, instead of allowing it to flood roads, fields, businesses and homes on its way to a drain. The plan must include an estimate of the cost of each recommended activity.

The legislation is backed by MAC and MACDC.

View the full video of the episode 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.

MAC creates Opioid Settlement Learning Community to share best practices

County, city and township government officials are invited to participate in the Local Government Learning Community on Opioid Settlements hosted by MAC, the Michigan Municipal League and the Michigan Townships Association. This new network will bring together local subdivisions working to plan and spend their opioid settlement funds.

The group is intended to foster peer-to-peer learning and will include presentations from local governments on practical solutions and examples to addressing the challenges of planning for use of the settlement funds.

The initial session will take place on Friday, July 14 at noon, and meetings will continue monthly on the second Friday from noon to 1 p.m.

To register, please see the flier.

For questions on this issue, contact Amy Dolinky at dolinky@micounties.org.

Juvenile Justice Reform Task Force members testify before House panel

A package of 20 bills to reform the state’s juvenile justice system, supported by MAC, received a hearing in the House Committee on Criminal Justice this week. This package, House Bills 4624–4643, would expand the County Child Care Fund (CCF), including an increase in reimbursement rates to counties from 50 percent to 75 percent for community-based services; expand eligibility for diversion; and require the use of risk and needs assessments.

(UPDATE: Please see clarification on CCF rate changes in the Aug. 25, 2023, Legislative Update.)

In addition to expanding the CCF, the Michigan Indigent Defense Commission would be expanded to implement youth defense standards in local county defense systems; the State Appellate Defender’s Office would be required to oversee a system of appellate defense for juveniles; and court fines and fees for juveniles would be waived.

The Task Force on Juvenile Justice Reform was established by Gov. Gretchen Whitmer in 2021. The bipartisan task force was chaired by Lt. Governor Gilchrist and included members from all three branches of government, as well as state and local level juvenile justice leaders and advocates. Two county commissioners served on the Task Force, each nominated by MAC. Alisha Bell of Wayne represented a county with a population over 100,000, and Marlene Webster of Shiawassee represented a county under 100,000 in population. Rep. Sarah Lightner, a former county commissioner, also served on the Task Force.

The Task Force discovered several challenges to strengthening public safety and improving outcomes for youth. Those challenges, however, led to the set of 32 recommendations last year. Six priority areas have been identified and translated into this 20-bill package.

HB 4624, by Rep. Christine Morse (D-Kalamazoo), enhances the Child Care Fund (CCF) by establishing a minimum framework of juvenile justice best practices statewide, including the use of risk screening and assessment tools. The best practices will be supported by an increase in the reimbursement rate for community-based services from 50 percent to 75 percent. These changes are essential to ensure counties have the resources to implement and utilize these approaches.

HBs 4625–4629 require the consistent use of validated screening and assessment tools to enable more objective decision-making and allow agencies to better match youth to appropriate supervision and services, reducing their likelihood to recidivate. The bills also expand the Diversion Act so that all offenses, with an exception for youth committing a specified juvenile violation, are eligible for pre-court diversion, based on the use of a risk-screening tool and other factors and limit the time that a youth can be placed on pre-court diversion, unless the court determines that a longer period is needed. While diversion eligibility would be expanded, judicial discretion remains.

HBs 4630 and 4631, by Rep. Lightner (R-Jackson), would expand the Michigan Indigent Defense Commission to include development, oversight, and compliance with youth defense standards in local county defense systems, and expands the State Appellate Defender Office to include appellate services for juveniles.

HBs 4634–4637 eliminate most non-restitution fees and costs associated with juvenile justice system involvement. The bills do not include the elimination of restitution or fees related to the Crime Victims Fund. For restitution and fees related to the Crime Victims Fund, the bills establish a standard procedure for ability to pay, determination of payment schedule, and total to be assessed.

HBs 4638–4642 would strengthen and expand the Office of the Children’s Ombudsman for handling, investigating, and reporting incidents in juvenile facilities.

Continued testimony is expected in the House over the coming weeks and throughout the summer.

MAC supports this package and has shared a letter of support with members of the House Criminal Justice Committee.

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

Michigan counties get $6 million in federal PILT funds

On June 15, the U.S. Department of the Interior (DOI) announced that $578.8 million will be distributed to counties in 2023 through the Payments in Lieu of Taxes (PILT) program.

“Payments in Lieu of Taxes (PILT) are federal payments to local governments to help offset losses in property taxes due to the existence of nontaxable Federal lands within their boundaries. The original law is Public Law 94-565, dated October 20, 1976. This law was rewritten and amended by Public Law 97-258 on Sept. 13,1982, and codified at Chapter 69, Title 31 of the United States Code. The law recognizes the financial impact of the inability of local governments to collect property taxes on federally owned land.”

Thirty-one Michigan counties received $5.98 million covering 2.21 million acres of land, with payments ranging from $132 for Monroe to $709,500 for Gogebic.

Of states east of the Mississippi River, only Florida ($6.9 million) and Virginia ($6.5 million) receive more in federal PILT than Michigan.

To see the Michigan list, click here.

Solar PILT bills clear Michigan House

Legislation to create an optional structure for the taxes levied on solar facilities in Michigan has passed the House with bipartisan support.

After years of participation in workgroups to ensure local options, a stable funding source, appropriate zoning considerations and adequate local reimbursements, MAC has taken a neutral position on the legislation.

House Bills 4317 and 4318, by Reps. Curt VanderWall (R-Mason) and Cynthia Neeley (D-Genesee) respectively, would allow for the creation of solar energy districts by local municipalities after a mandatory public hearing. Subsequently, solar energy developers could apply for an exemption from local property taxes and instead pay a flat rate of $7,000 per megawatt of nameplate capacity per year for the proposed solar energy facility, instead of ad valorem property taxes. The payment would be locked in for 20 years and distributed based on the proportions of normal taxes that would have been paid to each taxing unit.

An additional financial incentive would be offered for developers that choose to site their facilities on brownfield properties, in opportunity zones, as a secondary use on already improved real property (i.e., roof tops) or on state-owned property. In such cases, the reimbursement rate would be $2,000 per megawatt of nameplate capacity.

The impetus behind the legislation is twofold. First, this methodology for compensating locals for lost taxes will provide financial predictability for the developers and the locals, hopefully avoiding the same problems we have had with the challenges to the evaluation of wind turbines. Second, the rate and process should serve as incentives for developers to build more renewable energy facilities in the state.

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

MACPAC reaches midyear point ahead of 2022 fundraising pace

MACPAC, the association’s political action committee, has raised nearly $10,000 since December 2022, nearly matching the total for 12 months prior to last December.

MACPAC is the only PAC in Michigan devoted to supporting allies of county government in the Michigan Legislature.

As of June 13, MACPAC had received:

$9,974.15 in donations
Donations from 33 different counties

Allegan and Kent counties are tied at the midyear point for most commissioners donating with three each.

In the 2022 tracking year, MACPAC raised approximately $11,000.

To donate using MACPAC’s digital system, just click here.

For more information about MACPAC, visit its webpage.

Staff picks

How and where to use the zipper merge on Michigan’s roads (MLive)
America can fix its highways much faster, if it wants (Governing)
Genesee County specialty court will offer an alternative to jail: A full-time job (MLive)
Giant sequoia tree continues to thrive in Manistee County (UpNorthLive)

Legislative Update 6-16-23

June 16, 2023Blog, Events, Legislative, MAC news, MACSC, Marketing, NACo

County voices needed to push revenue sharing reform over finish line

A long-running effort to create a dedicated source of dollars for local revenue sharing is nearing fruition, but MAC needs your voice to help us push the Legislature to final enactment.

This plan, developed by MAC in concert with local governments, would:

Create a separate “Revenue Sharing Trust Fund” to receive and hold dollars solely for the purpose of fulfilling the state’s promise to local governments on revenue sharing;
Require that 8 percent of the revenue generated by 4 percentage points of the state’s sales tax rate go into the fund; and
Result in $591 million in statutory revenue sharing for all local governments across Michigan.

Counties would receive 46.14 percent of this total in the first year, $273 million, which would be an increase of nearly $27 million from the current total.

The plan also includes a one-time public safety investment of nearly $22 million, of which counties would get $10 million.

By using a portion of the sales tax for a dedicated fund, this proposal meets both those key goals, and it allows for sure, steady growth in funding as long as sales tax collections remain consistently healthy.

These reforms are incorporated into two sets of bills, House Bills 4274–75 and Senate Bills 229–230. Using the link below, please send your message of support for these measures to your legislators TODAY!

Click here to send your message of support.

MAC, allies continue to stave off attack on local control

Legislation that would attack the principle of local control remains bottled up in a House committee this week in the face of fierce opposition by MAC and others.

House Bills 4526-28 would eliminate local regulation of sand and gravel mining operations and were given a second hearing in the House Regulatory Reform Committee, this time to consider changes catering to requests from state officials.

Following the first committee hearing in May, the Department of Environment, Great Lakes and Energy (EGLE) submitted a list of recommendations to bill sponsors, the majority of which were incorporated in the version before the committee this week. EGLE remains neutral on the package, however. although the changes were designed to make it easier for the department to administer the new program.

MAC remains opposed to HBs 4526-28, as locals have largely been excluded from negotiations and their needs have not been considered by bill sponsors.

The aggregate and construction industry will continue to advocate for these bills, although it remains unclear when they will be voted out of committee and brought to the House floor for consideration.

If you haven’t done so yet, please use MAC’s digital Advocacy Center to send an email of opposition to your state representative.

For more information on this issue, contact Madeline Fata at fata@micounties.org.

Election reform implementation advances in Legislature

Legislation implementing Proposal 2 of 2022, effectively overhauling Michigan’s election system, has advanced. Senate Bills 367-374 and House Bills 4695-4702 were introduced last week to codify changes that 60 percent of Michigan voters supported last November, including at least nine days of early voting. Both bill packages passed their respective chambers on Wednesday.

The Senate package, led by Sen. Jeremy Moss (D-Oakland), passed 22-16, while the House version, led by Rep. Penelope Tsernoglou (D-Ingham), was approved 56-53.

Aside from early voting, the package includes measures for being added to the permanent absent voter list, prepaid postage for absent voter ballots, expanding access to ballot drop boxes and increasing precinct sizes.

MAC supported SB 367 and HB 4695 in committees on Tuesday, both allowing municipal clerks to jointly conduct elections with other municipalities or with their county clerk. Pooling staff and other resources can make elections more efficient and cost effective given the new circumstances.

MAC also supported SB 372, by Sen. Darrin Camilleri (D-Wayne), and HB 4697, Rep. Matt Koleszar (D-Wayne), which require each municipality to have at least one absent voter drop box per 15,000 registered electors. The state will be responsible for supplying and installing these drop boxes. MAC did not take a position on the remaining bills in each package.

It remains unclear how much funding will be allocated for implementing the changes. Appropriations subcommittee chairs received their final targets this week and fiscal year 2024 budget negotiations are ongoing. We anticipate the final version of the budget later this month.

For more information on this issue, contact Madeline Fata at fata@micounties.org.

Justice commission bills pass without county representation

As a funding unit and key administrative piece of local criminal justice, counties should have representation on a state commission to study criminal justice reform.

This week, however, the House passed House Bills 4173 and 4384, by Reps. Abraham Aiyash (D-Wayne) and Luke Meerman (R-Ottawa) respectively, and the Senate Judiciary Committee passed Senate Bills 376 and 377, by Sens. Stephanie Chang (D-Wayne) and Ed McBroom (R-Dickinson) respectively, that would create a state panel to study that issue that excludes county commissioner membership.

The packages are identical, with the intent to create a Criminal Justice Policy Commission and detail who will serve on it. Under the original version of HB 4173, MAC was to submit a list of three names and one of the submitted names would be selected by the governor to serve on the commission. MAC had a member on a previous commission that operated from 2015 to 2019.

However, the current version of HB 4173, and the Senate package, do not include a MAC representative on the commission. Therefore, MAC is opposing HB 4173 and SB 376.

Despite the current refusal from legislators to include county commissioners on the commission, MAC will continue to press for such representation.

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

Governmental immunity concerns, budget news featured in podcast

The Democratic majority in the Legislature moves another step closer to an FY24 state budget, a huge package of election bills have been filed and counties need to be worried about new legislation stemming out of the Nassar scandal at Michigan State University, the Podcast 83 team noted in a new episode.

Director of Governmental Affairs Deena Bosworth, sitting in as host for Executive Director Stephen Currie, led MAC’s Madeline Fata and Samantha Gibson through all the events in Lansing over the last week. This includes:

Governmental immunity: MAC is opposing House Bill 4486, part of a large package to alter the statute of limitations on criminal sexual conduct and sexual misconduct, because it holds local governments and other public entities to higher standards for employee reviews than other employers, Gibson explained. Under HB 4486, county boards of commissioners would be held liable for the hiring decisions of other countywide elected officials, despite having no direct involvement in these hiring decisions.
Elections: Fata provided an overview of House and Senate packages written to implement the early voting and other provisions adopted by Michigan voters via Proposal 2 last fall. Not surprisingly, the sticking point is money, specifically what the state is going to do to aid county and local clerks with new requirements.
Criminal Justice Policy Commission: Gibson explained the current version of the enabling legislation still leaves county boards out.
State budget: After closed-door negotiations, Democratic appropriators have their spending “targets” to complete the fiscal 2024 state budget, Bosworth reported. If expected plans materialize, counties would see a substantial increase in revenue sharing for the coming year.

View the full video of the episode, recorded on June 12, 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.

MAC to observe Juneteenth holiday on Monday

MAC’s Lansing offices will be closed on Monday, June 19 to observe the Juneteenth holiday.

The Legislature voted this week to make Juneteenth a state holiday in wake of Gov. Gretchen Whitmer issuing a proclamation in 2022 for a Juneteenth holiday for state and court employees.

MAC’s offices will reopen on Tuesday, June 20 at 8 a.m.

Staff picks

From recovery to revitalization: How local leaders are unlocking the potential of the American Rescue Plan (Brookings Institution)
Manistee County receives federal grant to reroute railroad (Ludington Daily News)
Wayne County juvenile jail to add on-site therapy services, mental health program (Detroit Free Press)
Kinship care support group coming to Benzie, Manistee counties (Manistee News)

Legislative Update 6-9-23

June 9, 2023Blog, Events, Legislative, MAC news, MACSC, Marketing, NACo

Liability concerns for counties raised in sexual conduct package

Legislation to alter the statute of limitations on criminal sexual conduct and sexual misconduct — and which could lead to broad, unintended consequences for counties — was reviewed this week by the House Committee on Criminal Justice.

House Bills 4482–4487 affect private employers, state government, local governments and educational institutions. HB 4486, by Rep. Karen Whitsett (D-Wayne), in particular, raises concerns, which is why MAC is opposing it.

HB 4486 holds government employers to a higher standard than that expected of private employers. The bill states an agency is liable and is not granted immunity if it “knew or should have known that the individual who committed the criminal sexual conduct had committed a prior act of criminal sexual conduct, and the governmental agency failed to act or intervene to prevent the subsequent criminal sexual conduct.”

Under HB 4486, county boards of commissioners would be held liable for the hiring decisions of other countywide elected officials, despite having no direct involvement in these hiring decisions. MAC also has concerns with the retroactive application of the potential statute of limitations and the vague, unintended consequences of HB 4486 that hold governmental agencies liable and to a higher standard than the private sector.

While there is need for reforms, MAC is working to create policy that focuses on prevention, intervention and appropriate accountability, with limited unintended consequences for the Michigan taxpayer.

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

Counties need voice on justice commission, MAC tells Legislature

As a funding unit and key administrative piece of local criminal justice, counties should have representation on a state commission to study criminal justice reform, a MAC staffer told a Senate committee this week.

Both the House and Senate held hearings on House Bills 4173 and 4384, by Reps. Abraham Aiyash (D-Wayne) and Luke Meerman (R-Ottawa) respectively, and Senate Bills 376 and 377, by Sens. Stephanie Chang (D-Wayne) and Ed McBroom (R-Dickinson) respectively.

The packages are identical, with the intent to create a Criminal Justice Policy Commission and detail who will serve on it. Under the original version of HB 4173, MAC was to submit a list of three names and one of the submitted names would be selected by the governor to serve on the commission. MAC had a member on the previous commission that operated from 2015 to 2019.

However, the current version of HB 4173, and the Senate package, do not include a MAC representative on the commission. Therefore, MAC is opposing HB 4173 and SB 376.

The House panel advanced its version of the bills, while the Senate committee only took testimony.

MAC will continue to press for county representation.

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

MAC seeks reimbursement in plan to expand veterans property tax exemption

Legislation to expand and streamline the state’s veterans property tax exemption were reviewed this week by the Senate Committee on Finance, Insurance and Consumer Protection.

Senate Bill 176, by Sen. Sylvia Santana (D-Wayne), SB 330, by Sen. Mary Cavanaugh (D-Wayne), and SB 364, by Sen. John Damoose (R-Emmet), are designed to grant the disabled veterans property tax exemption to surviving spouses, allow for a “one and done” application process for the exemption and provide for an audit process to determine continued eligibility and allow the local board of review, for 2023 only, to correct, upon appeal, the denial of an exemption based on “qualified errors.”

MAC has not yet taken a position on the bills but is working with the bills’ sponsors to include amendments to require the state to reimburse locals for their losses associated with the mandated exemptions.

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

MAC-backed water management bills get hearing

Bills designed to allow for water management districts and for the assessment of costs across watersheds in Michigan were discussed this week at a meeting of the House Committee on Local Government.

House Bills 4382-83, by Reps. Curt VanderWall (R-Mason) and Christine Morse (D-Kalamazoo) respectively, rewrite Chapter 22 of the Michigan Drain Code to allow local governments and residents to petition the drain commissioner for the establishment of the districts and, if found necessary, to create a plan to manage stormwater within the district in ways not currently allowed.

The bills also require a public comment period and meeting to get feedback from residents and businesses. The local representation on the board would then vote on the plan and could choose one, multiple or none of the recommended activities. If the board votes to continue with implementation of the plan, bids would be taken for the work and assessments would be made based on benefits derived from the projects, just as it currently is for the drain code. This includes the Michigan Department of Transportation for benefits to state highways; counties for benefits to county roads; cities, villages and townships for benefit to roads and public health; and property owners based on their contribution. Impervious properties would be assessed at higher rates than agricultural land.

Proponents of the bills explained the stress on the aging infrastructure designed to drain the land for roads, developments and public health, stating the current infrastructure was primarily designed to handle stormwater in the early 1900s and cannot keep up with the intensity and frequency of major storm events in the 21^st century.

Under the bills, water management districts would be allowed not mandated; locals would decide if they wanted to utilize these tools.

MAC and the Michigan Association of County Drain Commissioners support the legislation.

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

Early voting legislation discussed; funding not yet resolved

Legislation has been introduced to implement Proposal 2 of 2022, effectively overhauling Michigan’s election system. Last November, 60 percent of Michigan voters approved a new constitutional amendment to allow for nine days of early voting, among other provisions. Senate Bills 367-374 and House Bills 4695-4702 will codify Proposal 2 into law.

The Senate package, led by Sen. Jeremy Moss (D-Oakland), was brought before the Senate Elections and Ethics Committee on Wednesday, while Rep. Penelope Tsernoglou (D-Ingham) led the charge in the House Elections Committee on Thursday. Representatives from Promote the Vote, the Michigan Association of Municipal Clerks, the Michigan Association of County Clerks and the Secretary of State’s Office took turns commenting on each of the eight bills as the lead stakeholders. Aside from early voting, the package includes measures for being added to the permanent absent voter list, prepaid postage for absent voter ballots, expanding access to ballot drop boxes, and increasing precinct sizes.

Counties will be most directly affected by the early voting component and the cost of administering elections for additional days. Under SB 367, municipal clerks will have the option to jointly conduct elections with other municipalities or with their county clerk. Some clerks may find that pooling staff and other resources is beneficial given the new circumstances.

Unfortunately, the topic of funding was largely avoided by committee members and stakeholders. Chair Moss briefly noted budget negotiations are currently ongoing. In January, Secretary of State Joselyn Benson estimated the new constitutional amendment would cost locals between $30 million and $50 million annually. The final version of the state’s FY24 budget is expected to be approved later this month and will likely include some, if not all, of the funding necessary to implement these changes.

MAC has not taken a formal position on this legislation but will report on the funding allocation once it is finalized.

For more information on this issue, contact Madeline Fata at fata@micounties.org.

MAC, NACo oppose amendment to federal broadband law

An amendment to preempt local control over telecommunication infrastructure projects has passed the U.S. House Committee on Energy and Commerce and will be presented to Congress for approval. The amendment is to the American Broadband Deployment Act of 2023, also known as H.R. 3557, and provisions include:

Preemption of state and local zoning authority over the placement of wireless technologies, including towers, equipment, and small cells
Elimination of state and local government authority to manage public rights-of-way (ROW) by collecting fair market compensation for their use and management, and limiting ROW fees to “actual, objectively reasonable costs”
Enactment of shot clock rules and “deemed granted” provisions which place timelines for the review and approval of telecommunications projects
Prohibition of state and local governments from revoking cable franchises.

Counties own much of the infrastructure necessary to build or expand telecommunication networks, including pole attachments and rights-of-way, and should be closely involved in the permitting and construction process. As the federal government prepares to distribute $42.45 billion to expand broadband through the BEAD program, with Michigan slated to receive roughly $1.6 billion, this legislation will damage the ability for local governments to serve as partners in the deployment process.

Furthermore, by enforcing a “shot clock” on the permitting process, counties will be unable to properly assess each application and the impact these projects will have on their communities.

The National Association of Counties (NACo) hosted a webinar late last week encouraging county officials to contact their federal legislators opposing this amendment.

Please utilize MAC’s Advocacy Center to send a prepared email of opposition to your member of Congress.

For more information on this issue, contact Madeline Fata at fata@micounties.org.

Podcast 83 dives into Michigan water issues in special episode

How Michigan’s local governments can mitigate the damage of flooding is the topic of a special episode of MAC’s Podcast 83.

Stacy Hissong, partner at Fahey Schultz and legal adviser to the Michigan Association of County Drain Commissioners, is the featured guest on the episode, which is hosted by Deena Bosworth, MAC’s governmental affairs director.

The pair discuss:

Excess flooding and how local governments can deal with it with tools they have now
Legislation in Lansing to create more tools to aid residents in avoiding damage
The history of how Michigan has dealt with groundwater and why the state has challenges now

View the full video of the episode, recorded on May 30, 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.

Counties have until June 15 to file for pension grants

Applications for the Protecting MI Pension Grant Program must be submitted no later than June 15, 2023, using the electronic submission system (Michigan eSignature Solution), the state Department of Treasury advised.

Click to apply.

Qualified units are strongly encouraged to ensure the accuracy and completeness of of the application packet prior to submission. For detailed information regarding the Protecting MI Pension Grant application process or the Michigan eSignature Solution, please visit the Protecting MI Pension Grant Application website at www.michigan.gov/MIPensionGrant. On this page you can also access application forms, instructions, checklists, a sample governing body resolution, and frequently asked questions related to this grant application process.

As a reminder, in addition to the application submitted online through Michigan’s eSignature Solution, the following supporting documentation is required to be attached prior to submission.

Protecting MI Pension Grant Affidavit (Form 5887): Must be signed by Chief Administrative Officer and Notarized.
Copy of approved local government governing body resolution authorizing the chief administrative officer to file a claim for a grant payment for the Protecting MI Pension Grant Program.
- Sample Resolution
Copy of actuarial valuation(s) utilized in audited financial statements used to complete the most recent Form 5572 submitted as of 12/31/2021 for all qualified retirement systems that are requesting grant awards.
Most recent actuarial valuation as of 12/31/2022 for all qualified retirement systems that are requesting grant awards.
Copy of court ordered judgement levying a millage to cover local government pension costs (only required if applicable)

Additional information related to FAQs, program guidelines, and application materials are available at www.Michigan.gov/MIPensionGrant . Please be sure to sign up for Treasury – Local Government email alerts to be notified of additional updates to this grant program and other local government notifications.

The Michigan Department of Treasury (Treasury) reminds municipalities that, although not required, they can review and correct errors in Treasury’s calculation of each municipality’s millage rate eligible for the 2023 Personal Property Tax (PPT) reimbursement (MCL 123.1345(x)(ii)(B) and MCL 123.1353(5)).

Time to review millage rate calculations

The Local Community Stabilization Authority (LCSA) Act requires Treasury to make the eligible millage rate calculations available by May 1. The eligible millage rate calculations can be found on Treasury’s 2023 PPT Reimbursements website under the “Millage Rate Comparison Reports” heading. These 2023 Millage Rate Comparison Reports are intended to be used by municipalities to verify the accuracy of the eligible millage rates to be used in their 2023 PPT reimbursement calculations.

How to review the 2023 Millage Rate Comparison Reports:

Verify individual millage rate(s) levied in 2022
- Municipalities should compare the individual millage rate(s) levied in 2022 on the 2023 Millage Rate Comparison Reports with the millage rates reported on their 2022 Form 614 – Tax Rate Request (L-4029).
- Each millage rate reported on the 2022 Form 614 should be listed on the 2023 Millage Rate Comparison Reports (excluding special assessments).
Verify calculated millage rate used in the computation
- The calculated millage rates to be used in the 2023 PPT reimbursement calculations should equal the lesser of the eligible millage cap and the 2022 millage rate.
- The Millage Rate Calculation tab of the Excel workbook provides information about how each eligible millage rate is calculated.
- NOTE: Calculated eligible millage rates may be prorated and thus may not reflect the actual millage rates levied by the municipality.

When NO millage rate errors are identified:

If a municipality does not identify an error in the 2023 Millage Rate Comparison Reports, the municipality does not need to file a form or take any further action to notify Treasury.

When errors ARE identified:

If a municipality does identify an error in the 2023 Millage Rate Comparison Reports, the municipality will need to complete the Form 5613 – Millage Rate Correction for the 2023 Personal Property Tax Reimbursement Calculations to notify Treasury of the error(s). In addition to the correction form, municipalities must provide substantiating documentation to support the millage correction.

The reporting forms related to the 2023 Millage Rate Comparison Reports (along with the associated deadlines) are available on Treasury’s Forms for Calculation of PPT Reimbursements website.

Form 5608 – Portion of 2022 Essential Services Millage Rate Dedicated for the Cost of Essential Services
- Optional form to be used by counties, cities, villages, townships, and local authorities that levy an extra-voted millage rate that partially funds the cost of essential services (for example a Fire/Cemetery millage).
- NOTE: For extra-voted millage rates with a name that implies the millage was partially dedicated for the cost of essential services, Treasury has identified the millage type as “PARTIAL ESSENTIAL SERVICE” on the 2023 Millage Rate Comparison Reports.
- DUE DATE: Aug. 1, 2023
Form 5613 – Millage Rate Correction for the 2023 Personal Property Tax Reimbursement Calculations
- Optional form to be used by municipalities that identify an error in the 2023 Millage Rate Comparison Reports.
- DUE DATE: Aug. 1, 2023

The corrections reported on Form 5613 and the essential services percentage reported on Form 5608 will be used in the calculation of the 2023 PPT reimbursements.

Form 5613 and Form 5608 submissions will not be accepted after Aug. 1, 2023.

Please direct any questions regarding the PPT reimbursement calculation or correction process to TreasORTAPPT@michigan.gov or 517-335-7484.

Additional information is available at www.michigan.gov/pptreimbursement.

State seeks infrastructure ‘champions’ for classes

The Michigan Infrastructure Council (MIC), Water Asset Management Council (WAMC), and Transportation Asset Management Council (TAMC) have been focusing efforts on creating a statewide culture of asset management through several initiatives. One of the MIC’s initiatives is the Champions training program, which will have a new class starting in August.

The new class begins Aug. 1 and runs through Nov. 1, 2023.

To learn more about the program and apply, click here. The deadline to apply for this free training is July 26, 2023.

Since 2021, the MIC has trained more than 300 professionals from various backgrounds (engineering, finance, planning, elected officials) in key subject areas such as risk management, knowledge management, and strategic decision-making as they apply to infrastructure assets. Based on positive feedback and a growing list of graduate referrals, the MIC has committed to offering a second cohort of AM Champions in 2023.

For more information, contact Nathan Hamilton of the MIC at hamiltonn4@michigan.gov.