Proposal 1 Offers Michigan’s Last, Best Chance to Fix Roads with Guaranteed Funding

John LaMacchia discusses Proposal 1 at a recent Burton City Council town hall meeting.

John LaMacchia discusses Proposal 1 at a recent Burton City Council town hall meeting.

The fate of Proposal 1 will be decided by voters next week (Tuesday, May 5), and there is one thing guaranteed about the outcome: If it passes it will provide a solution to fix Michigan’s crumbling infrastructure and will guarantee funding for transportation, local government, schools. And if it fails? No one can guarantee a solution out of the state Legislature.

That’s the simple message from the Michigan Municipal League’s John LaMacchia, legislative associate, in his many speaking engagements, media interviews and community meetings about Proposal 1 in recent days, weeks and months. LaMacchia has been the League’s voice on Proposal 1 after the League board unanimously endorsed the road funding package in January.

“The one thing that those for and against Proposal 1 agree on is the longer we take to come up with a transportation funding plan, the worse are roads are going to get,” LaMacchia said.

If Proposal 1 passes, it would guarantee, for the first time, that every penny we pay in state fuel taxes goes to transportation.

Bad-bridge-small-for-webLansing would no longer be able to divert taxes paid on gas to some other state program or service.

Here is some additional information about what Proposal 1 would do:

Ballot Proposal:

  • Raises the sales tax from 6% to 7%
  • Exempts sales tax from motor fuel
  • Removes higher education funding from the School Aid Fund
  • Dedicates a portion of the use tax to K-12 education

Statutory Changes Effective Only if Proposal 1 Passes:

  • Increases the tax charged on motor fuel
  • Eliminates the depreciation on vehicle registration fees
  • Increase registration fees on the heaviest trucks
  • Requires more competitive bidding and road warranties
  • Restores the Earned Income Tax Credit to 20% of the federal level

Revenue Generated:

We would fix more roads instead of just fill potholes if Proposal 1 passes May 5.

We would fix more roads instead of just fill potholes if Proposal 1 passes May 5.

Fixing our roads will make them safer by repairing dangerous potholes and improving roadway design. Today, many drivers swerve to avoid dangerous potholes or lose control of their vehicles as a result of flat tires.

According to TRIP, a national transportation research organization, roadway design is a contributing factor in about one-third of fatal traffic crashes. Between 2008 and 2012, 4,620 people died in Michigan car accidents – an average of 924 fatalities per year.

For more information about Proposal 1 go to the League’s Safe Roads Yes! webpage.

To learn more about the Safe Road Yes! campaign go here. View here a series of question and answer videos about Proposal 1. Check out what MML members have to say about Proposal 1. See how much your community will get in additional road dollars and constitutional revenue sharing if Proposal 1 is approved. View which Michigan communities have passed resolutions in support of Proposal 1.

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org. The League’s John LaMacchia can be reached at jlamacchia@mml.org.

Problematic Rental Inspection Legislation Dies in the House

On the final day of session Senate Bill 313, sponsored by Senator Dave Robertson (R-Grand Blanc), was unable to secure final passage on the House floor.

This bill would would have lowered revenues rental inspection programs are able to collect and provide additional barriers to entry when attempting to inspect a tenants property.The League fully anticipate this legislation coming up again next year.

Thank to all of our members who reached out to their legislator explaining to them the harmful implications of this bill. You were the number one reason this bill was able to be stopped and your continued opposition to any future legislation that would have a similar affect will be needed to ensure we are able to provide a healthy and safe environment for the residents of our communities.

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

FOIA Legislation Passes on Final Day

On the final day of session, the legislature  passed HB 4001, a bill that makes numerous changes to the FOIA law, making it more costly to comply and more punitive for local units of government if a mistake is made. The bill passed in bipartisan fashion.

While we recognize this version is vastly improved from the introduced version, we still had concerns at the end of the day and remained opposed.

Nikki Brown is a legislative associate for the League. She can be reached at nbrown@mml.org or 517-908-0305.

Senate Takes Testimony on Provisions of Certain Utility Service Contracts

Senate Local Government Committee took testimony yesterday on SB 687 sponsored by Senator Darwin Booher (R-Evart). This bill would regulate the provision of utility services (water, sanitary sewers, wastewater treatment, or electricity) provided by certain municipalities to other municipalities. It would prohibit a municipality providing utility service to another municipality from terminating the service, or refusing to renew the existing contract for the service, for any reason other than a lack of physical ability to continue providing that service.

This bill was introduced because of a situation in Senator Booher’s district involving the City of Cadillac and 4 surrounding townships. Cadillac City Manager Marcus Peccia did a terrific job testifying on behalf of the League. He expressed not only the concerns of Cadillac and their specific situation, but also the statewide implications this legislation could have.

The main concerns about this legislation include that it effectively voids any end date or termination clause in a contract our communities may have with a surrounding municipality because this bill would not allow that contract to be terminated and offers guaranteed renewal. Voiding a contracts expiration date does not promote good faith negotiations between parties. Rather, it provides an incentive for the non-providing community not to accept terms of a new contract that may include a higher rate for service because service must continue. Finally, this bill would have a significant impact on future collaboration efforts between communities because of the lack of certainty that would happen at the end of an expiring contract.

The League is opposed to this legislation and is very concerned about the impact of this legislation statewide.

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

FOIA Bill Passes Out of House Committee

The House Oversight committee passed out HB 4001, the bill making many changes to FOIA. The substitute that was adopted can be viewed here: HB 4001 H-2.  While the substitute has improved from the introduced version, the League still has concerns and is opposed to this legislation.  The League along with two attorneys for the city of Ann Arbor were prepared to offer testimony with our concerns but the bill was passed out of committee with no testimony taken.

We do appreciate the opportunity we had to be involved in the workgroup held early in July and are pleased to see there is now an internal appeal process that must be exhausted (if the municipality offers an internal process) prior to commencing an action in the courts to try and resolve any disputes.  Additionally, we do appreciate the time and labor calculations are now to be made on a total sum basis instead of individually broken out into the multiple new invoice categories as in a previous version.

However, Governmental entities are still not able to recover the true cost of the FOIA request, one of our existing concerns with the legislation.  The legislation specifically states benefits are not to be used in calculating the cost of FOIA.  Medical insurance and other benefits are a large portion of a person’s hourly labor cost.  Local municipalities do not stop providing an employee’s benefits while they are working on these requests.  Not being allowed to recover the true cost means every other tax payer in the municipality is now subsidizing the request.  Additionally, the language still states that all partial time increments when calculating labor costs must be rounded down, again, not allowing for the true cost of the request to be recovered.

Rep. Jim Townsend offered up a handful of amendments, two of them (clarification pieces) were accepted.  One that he offered would have allowed a municipality to include benefits when calculating the labor charges but that was voted down.

The League will continue, with the help from the municipal attorneys who have been so gracious in providing their feedback and assistance on this, to work on this issue to make sure as many of our concerns are addressed as possible.

Nikki Brown is a legislative associate for the League handling economic development issues.  She can be reached at nbrown@mml.org or 517-908-0305.

Bill Allowing Communities to Combine Election Activities Passes House Committee

A bill to allow local communities to enter into written agreements with other local governmental units for election activities passed the House Ethics and Election Committee.  HB 4878 would allow a city or township clerk to enter into a written contract with the county or another city or township to handle election administration duties such as handling absent voter ballot applications/ballots and processing voter registrations and maintenance of the qualified voter file.  Two communities (city or township) could also enter into a contract to prepare and conduct election day operations.  The governing body of each of the participating units would have to approve the action by resolution in order for the written agreement to be entered into.  A local unit can terminate this agreement with 60 days written notice to the other participating party.

This legislation also allows a local governmental unit to approve the bureau of elections or a county, city or township to handle an election if the office of the clerk becomes vacant in close proximity to an election.

Nikki Brown is a legislative associate with the League handling economic development issues.  She can be reached at nbrown@mml.org or 517-908-0305.

Senate Considers Tax Exemptions for Disabled Veterans

Yesterday the Senate Finance Committee considered two bills that would create tax exemptions for disabled veterans.

Senate Bill 104 would allow a community to give a tax exemption to a qualified disabled veteran. This is an option for a community and not a mandate.

The committee also considered Senate Bill 352, which would specifically exempt from property taxes real property used and owned as a homestead by a disabled veteran who was discharged from the Armed Forces of the United States under honorable conditions.

The League continues to be opposed to mandatory property tax exemptions. In 2011 the legislature and administration eliminated state tax exemptions so as to not “pick winners and losers” and balance the state budget. Yet we continue to combat legislation that mandates our members give property tax exemptions for various individuals. The policy is inconsistent, and we are opposed to this piecemeal look at tax policy.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

 

League Encourages State to Put Surplus Toward Restoring Revenue Sharing Cuts

LANSING, Michigan – A report saying the state of Michigan has nearly $400 million has the Michigan Municipal League requesting that the state use some of that surplus to restore massive cuts made to local revenue sharing. A consensus report released today (May 15, 2013) by state economists shows that revenues for the current fiscal year are $396.9 million higher than expected for the general fund for the current 2012-13 fiscal year.

The Michigan Municipal League has responded to this announcement by issuing a press release to media throughout Michigan calling for a portion of that surplus to go back to Michigan communities. View the League’s press release here. View an mlive.com article about the budget surplus that includes mention of the League’s request.

Here’s a portion of the press release:
“Over the past dozen years, the Legislature and governor have cut local revenue sharing by more than $6 billion, breaking promise after promise and ignoring statutes that require the appropriations to local communities,” said Daniel Gilmartin, CEO and executive director of the Michigan Municipal League, in the press release. “Instead of appropriating the funds for local services, Lansing used the funds to fill holes in the state budget, to cut taxes, and for other state programs and services. While we recognize the state’s economy was in bad shape, and many state budgets were cut, local revenue sharing paid a far higher price than all the others.”

Gilmartin said the state budget surplus gives the Legislature and governor the opportunity to return some of the cuts they made to local services that keep people safe in their neighborhoods, keep local drinking water clean, maintain local roads and bridges, fund local parks and libraries, and more.

“The state Senate has proposed a 4.8-percent increase in local revenue sharing for the 2014 state budget. Given the anticipated state budget surplus, anything less than that is unacceptable and unconscionable,” Gilmartin said. “I promise that local leaders and their constituents will remember if the Legislature fails to invest part of the surplus to restore some of the massive cuts Lansing has made to revenue sharing and essential local services.”

Gilmartin said that using the surplus to restore cuts to revenue sharing “becomes critical” if the personal property tax (PPT) law passed by the Legislature in December is approved by Michigan voters next year.The PPT law would cut local taxes paid by local businesses to local communities across the state by hundreds of millions of dollars. The law will not take effect unless it is approved by Michigan voters in August 2014. The Legislature has not yet voted to put the question onto the ballot.

Matt Bach is director of communications for the Michigan Municipal League. He can be reached at (810) 874-1073 and mbach@mml.org.

Say Cheese! House Considers Allowing Photos in Polling Places

This afternoon the House Elections and Ethics Committee consideredHB 4477, legislation that would allow an elector to take a photo of him or herself at a polling place. The legislation is opposed by the Secretary of State, and many clerks have concern about such a policy violating voter privacy.

In addition the committee considered HB 4478, a bill that would allow an individual with a disability who uses a signature stamp to use that stamp for voting. This legislation was widely supported including by the League, the Municipal Clerks and the Secretary of State’s office.

The committee did not vote on either piece of legislation.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org