League Staff Highlights Key Legislative Issues

The League's John LaMacchia talks about legislative issues.

The League’s John LaMacchia talks about legislative issues.

This morning the Michigan Municipal League’s lobbying team gave a riveting update about the happenings in Lansing. The major issues the League is focused on are addressing the broken municipal finance system, further investment in infrastructure and the continued protection of local control.

More than 50 League members attended the session that took place during the League’s 2017 Convention in downtown Holland.

The staff covered an array of topics including the short-term rental issue, the Dark Stores situation, a recent fix to a candidate filing deadline issue and much more.

Greenville officials attend legislative education session at 2017 Michigan Municipal League Convention in Holland.

Greenville officials attend legislative education session at 2017 Michigan Municipal League Convention in Holland.

It was a good discussion as members asked us a variety of questions about issues and concerns on their minds.

This blog was written by John LaMacchia is assistant director of state and federal affairs for the Michigan Municipal League. He can be reached at jlamacchia@mml.org.

Sample Resolution, Issue Summary on PA 269/SB 571 Now Available for League Members

The Michigan Municipal League is leading a coalition of organizations in continued opposition to the campaign finance bill SB 571, which Governor Snyder signed January 6, and is now known as PA 269. As part of this opposition, the League is asking members to reach out to their state Representatives and Senators and ask them to repeal the new language in Section 57 of PA 269.

Please call your lawmakers today and go here to get their contact info. The League also has prepared an issue summary and sample resolution that your local governments can use in calling for the repeal. Go here for the summary/talking points and go here for the downloadable sample resolution. Please forward any resolutions on this issue that you adopt to mbach@mml.org so that we can log them and share them with other members.

Read more about this bill/law and why the League so adamantly opposes it from the League’s Chris Hackbarth here. View a joint statement from the coalition calling for the repeal here.

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org and 734-669-6317.

 

Honors and Dark Stores and Roads, Oh My! 2015 Busy Year for League Legislative Staff

Dark Stores, speed limits, League honors and roads were just of the many issues and accomplishments involving the Michigan Municipal League in 2015.

Having Governor Snyder sign a long-term road funding package in November following the defeat of Proposal 1 back in May was certainly one of the top news stories out of Lansing this year. But there were many other noteworthy accomplishments in 2015 by the Michigan Municipal League’s advocacy staff in Lansing and Washington D.C.

Like in Michigan, Transportation funding was a hot topic in D.C. in 2015. A major long-term package, called the FAST Act, was signed into law by President Obama earlier this month. Of course, the major national issue in 2016 will be the President election and the League is an active supporter of the Cities Lead 2016 platform led by the National League of Cities.

Back in Michigan, 2015 ended with a flurry of activity in the state Legislature as lawmakers took on numerous bills in the final session days of the year. Click on these links below for details about some of the recent activity:

Other legislation positively impacting our municipalities include bills allowing for training reciprocity to out-of-state firefighters; cleaning up the personal property tax (PPT) implementation process; establishing the March Presidential Primary as the election date for local ballot questions; extending the Commercial Rehabilitation Act; expanding recreation authorities; clarifying rental inspections; and changing portions of the Mobile Home Commission Act. Some of these bills have been signed into law and others continue to move through the process.

There also are numerous other issues in which the League was very engaged 2015 and will continue to be into 2016 , including the Dark Stores Big Box property tax loophole; local speed limits; and a shift in broadband relocation costs to communities. View the League’s newly created web page dedicated to the Dark Stores issue.

In addition, throughout 2015 the League has been extremely active behind the scenes informing lawmakers about the state’s broken municipal finance system and the need for change. Stay tuned for more on this major initiative in 2016.

The final week of session for the Legislature wrapped up Thursday, Dec. 17. Read more on what happened and for all the latest legislative news be sure to frequently visit the League’s Inside 208 blog here.

Posted by Matt Bach on behalf of the League’s advocacy team.

League, MAC and MTA Issue Joint Statement on Data Center Abatement Proposals

The Michigan House Tax Policy Committee today is reviewing legislative proposals regarding what’s known as the data center issue and the Michigan Municipal League along with other organizations have distributed a joint statement regarding the legislation.

The biggest concern from the League’s perspective is ensuring that local communities continue to have the ability to establish local control on both existing and future abatement requests, like we have for other economic development abatement tools. One proposal being shopped by the existing data center industry would eliminate the current language providing local involvement in future data center investments. The League and other local government groups are opposed to this effort. We feel it is appropriate to maintain local involvement in any decision on whether to abate taxes as an economic development tool.

Here is the full statement on this issue by the League, the Michigan Association of Counties (MAC) and the Michigan Townships Association (MTA):

As the representatives of local government in Michigan, our organizations ― which are responsible for delivering the daily services Michigan residents count on ― wish to clarify our position on the various legislative proposals being discussed for the data center industry, especially those surrounding exemptions for personal property.

Local governments welcome economic development/job creation in this state and our goal is to continue to partner with the state.

If the Legislature and administration believe exemptions for existing firms and their existing equipment in a broad-based personal property exemption framework are necessary, we recommend the exemption for current equipment follow the recently adopted system for small taxpayers and manufacturers, allowing the local units to be fully reimbursed for the reductions to their tax base.

In our view, though, a blanket, state-ordered exemption would be counterproductive, given the existing economic development tools available to reduce/abate personal property for business, including data centers.

Absent a reimbursement mechanism, language similar to what the House and Senate are considering, which allows for a local unit to approve/deny a request for an abatement of data center personal property, is vital. Allowing local governments to be involved in this way ensures they are able to evaluate the local budget costs against the benefits of proposed exemptions, just as they do with all other economic development decisions.

Adoption of one of these approaches will protect existing local government budgets and preserve the role of the local unit in these critical local economic development decisions.
Thank you for your consideration. We welcome the opportunity to discuss further should you have any questions.

– Chris Hackbarth, Director of State Affairs for the Michigan Municipal League
– Judy Allen, Director of Government Relations for the Michigan Townships Association
– Steve Currie, Deputy Director for the Michigan Association of Counties

Posted by Matt Bach on behalf of Chris Hackbarth. For more information contact Hackbarth at chackbarth@mml.org and 517-908-0304.

Michigan Municipal League Issues New Statement on Continuing Road Funding Discussion

Here is a new Michigan Municipal League media statement issued today regarding efforts to fix Michigan’s infrastructure:

Michigan Municipal League Urges Legislature to Pass a Long-Term Sustainable Roads Solution

The following statement is from Dan Gilmartin, executive director and CEO of the Michigan Municipal League. Gilmartin is commenting on the continuing efforts by the state Legislature to pass a package of bills aimed at fixing Michigan’s crumbling roads and bridges.

“The League continues to express our concerns with any road plan that relies on a significant amount of general fund revenue. The League believes a plan overly reliant on existing tax dollars could establish a foundation for potential cuts to local police and fire protection, higher education, economic development and our ability to attract and retain a talented workforce. We encourage continued discussion on this topic and stand ready to work with the Legislature and Governor on a long-term sustainable solution that invests in our road network, protects essential services, provides funding for transit and does not jeopardize future state and local government budgets.”

End of statement

Post from last week:

Last week, the Michigan House of Representative passed a plan that would raise $1.2 billion to fix Michigan’s infrastructure but relies heavily on state general fund revenue to do so. The plan could have a significant negative impact on the essential services that communities provide and Michigan Municipal League has consistently expressed our concern with any road funding solution that would jeopardize the long-term fiscal sustainability of this state and its communities.

This plan contains $600 million in new revenue and $600 million in general fund revenue. The new revenue would be generated by increasing gas taxes by 3.3 cents and registration fees by 40%. The plan does not identify where the existing revenue will come from. The following bills were included in the House passed plan.

HB 4370 provides $200 million in tax relief by expanding the Homestead Property Tax Credit and also dedicates $600 million of income tax revenue to transportation. Based on current revenue and expenditure projections, this statutory dedication of General Funds would not result in a year end budget deficit greater than $60 million in the next five years.

HB 4736  increases passenger and commercial vehicle registrations an average of $55 (40%) per vehicle. Additionally, the bill provides for plug-in hybrid ($30) and electric ($100) vehicle registration fee increases resulting in $400 million revenue increase for transportation.

HB 4614, HB 4616, and HB 4738 provide for gas/diesel tax increases to 22.3 cents (increase of 3.3 cents) per gallon by 2019. The bills also implement diesel parity, institute a process for taxing alternative fuels, and tie the fuel tax rate to inflation resulting in $200 million revenue increase for transportation.

HB 4610 allows townships contributing 50% or more to a road project to require an RFP for pavement projects over $50,000 and gravel projects over $25,000.

HB 4611 requires an RFP process for all projects over $100,000 for MDOT. Local road agencies must do RFPs for all projects, excluding routine maintenance, over $100,000, unless the local road agency affirmatively finds that they can do it themselves for less.

HB 4737 requires MDOT and local road agencies to secure warranties, where possible, for construction and preservation projects over two million dollars.

SB 414 creates an automatic rollback of the income tax rate equal to the amount General Fund revenue exceeds the rate of inflation annually. The rollback begins on January 1, 2019 and the tax cut level will be dictated by annual General Fund levels and will vary from year to year.

The League strongly encourages Governor Snyder and quadrant leaders to restart their conversation and come up with a road funding plan that does not jeopardize the essential services that Michigan citizens rely on, such as police and fire protection, schools and public transit.

Additionally, the League encourages members to contact their Senator and ask them to pass a long-term fiscally sustainable solution that relies more on new revenue and less on general fund revenue, does not jeopardizes future state budgets and does not negatively impact the essential services communities provide.

View a League media statement on the House roads plan.

John LaMacchia is a Legislative Associate for the League handling transportation, infrastructure, and energy issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

Posted by Matt Bach, director of media relations for the Michigan Municipal League.

Local Election Results Show Voters Support Essential Local Services, Better Communities

A road crew fills potholes in Macomb County.

A road crew fills potholes in Macomb County.

(Go here to view the League’s statement on the defeat of Proposal 1)

Not to be lost in the overwhelming defeat of Proposal 1 last night, is the success of a majority of local ballot questions that also went before voters in Tuesday’s election. The results show voters are willing to support essential services that contribute to a community’s vibrancy.

According to MIRS news service, of the more than 200 questions on local ballots statewide nearly 70 percent were approved. In particular, voters approved nearly 70 percent of the school-related ballot proposals and 78 percent of the proposal dealing with police, fire and emergency services.

View a spreadsheet on the MIRS report here. View the subscription-only MIRS article on the local election results here under the headline “Local Road Proposal Approvals Go 50%, New Money Asks for Roads 21%”.

The local election results also are consistent with the findings of an EPIC-MRA survey co-commissioned by the League. The poll, which you can view here, found that a majority of voters who opposed the Proposal 1 ballot question want the Legislature to get back to work and pass a plan that fixes roads with new revenues. The poll shows that voters did not want major cuts to essential services that make our communities strong and liveable – namely schools, communities and police and fire protection.

Here are some key findings in the EPIC-MRA poll:

  • A strong majority of voters want the Legislature to get back to work now and fix the roads;
  • They are willing to support higher taxes as long as they money goes only to transportation, and they oppose major cuts to K-12 education, higher education, revenue sharing and healthcare to find the money to fix the roads;
  • 64 percent polled “strongly favor” or “somewhat favor” a 1-cent increase in the state sales tax to fix the roads, as long as the new revenue from the penny increase is guaranteed in the constitution for roads, bridges and transportation;
  • 88 percent oppose “major cuts” to K-12 education to pay for roads;
  • 76 percent oppose “major cuts” in revenue sharing for local communities;
  • 63 percent opposed “major cuts” to universities and community colleges;
  • 85 percent support the Legislature working all summer to pass a new roads plan.

The poll also found that the Legislature’s job approval rate sunk to just 27 percent (with only 1 percent giving the Legislature an “excellent” rating). That’s reflected in the constant complaint we’ve heard that the Legislature should have come up with a road solution itself instead of sending it to the voters.

A fire truck makes an emergency run over crumbling roads in Macomb County.

A fire truck makes an emergency run over crumbling roads in Macomb County.

Of note, the poll found that Governor Snyder’s approval rating is an all-time high – 52 percent positive job approval. The Governor has been an exceptionally strong leader on fixing our roads and the League was especially pleased with his statement issued following Proposal 1’s defeat last night. The statement, with the subheadline, “A plan must improve roads without hurting schools, communities,” explains that fixing the roads remains a top priority for the governor and that a new solution should be one that gives “Michigan residents the safe roads they need and deserve and helps our growing economy.”

The League pledges to continue working with governor and the Legislature on a new plan that will fix our roads and bridges while protecting those services essential to Michigan’s families, communities and economy. Like Michigan voters, we do not believe the state can cut our way to prosperity.

There will be much debate in Lansing in the coming days, weeks and possibly months over the next step to fixing our roads. Please stay tuned to this Inside 208 legislative blog for the latest developments. We may also call on you as various plans surface and gain momentum. So please be ready to contact your lawmakers when asked.

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org and (734) 669-6317.