Category Archives: Economic Development

Here are the New Guidelines for American Rescue Plan for Municipalities

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Here are some of ineligible uses of the American Rescue Plan support for municipalities. These were shared Monday as part of a presentation by the U.S. Department of the Treasury during a webinar Monday.

New Update: The National League of Cities (NLC) and the Michigan Municipal League (MML) will each have events about the new guidelines in the coming days. The NLC will have a Federal Advocacy Update Call at 4 p.m. Wednesday, May 12 (register here) and the MML will unpack the guidelines for you during our Live with the League conversation Monday, May 17. Register for that here.

Update: The U.S. Department of the Treasury and the White House Office of Intergovernmental Affairs will host two identical 30-minute introductory briefings with state and local associations and stakeholders TODAY (May 10, 2021) at 4:00 PM EDT (link) and 6:45 PM EDT – (NEW LINK here). The Michigan Municipal League encourages our members to attend.

The U.S. Department of the Treasury today released the guidelines that communities must follow in administering the American Rescue Plan. The Michigan Municipal League and National League of Cities are currently analyzing the guidelines and we will have a webinar very soon to break it all down for you. Keep a close eye on your emails for details on the upcoming webinar.

Here are some of the possible uses of the American Rescue Plan support for municipalities. These were shared Monday as part of a presentation by the U.S. Department of the Treasury during a webinar Monday.

The National League of Cities has sent the MML the following documents detailing the guidelines and allocations. Here are links to those documents:

Here is key information about the guidelines from a U.S. Department of the Treasury Press release.

  • Today, the U.S. Department of the Treasury announced the launch of
    the Coronavirus State and Local Fiscal Recovery Funds, established by the American Rescue Plan Act of 2021, to provide $350 billion in emergency funding for state, local, territorial, and Tribal governments. Treasury also released details on the ways funds can be used to respond to acute pandemic-response needs, fill revenue shortfalls among state and local governments, and support the communities and populations hardest-hit by the COVID-19 crisis. Eligible state,
    territorial, metropolitan city, county, and Tribal governments will be able to access funding directly from the Treasury Department in the coming days to assist communities as they recover from the pandemic.

  • Here are some of eligible uses of the American Rescue Plan support for municipalities. These were shared Monday as part of a presentation by the U.S. Department of the Treasury during a webinar Monday.

    While the need for services provided by state, local, territorial, and Tribal governments has increased —including setting up emergency medical facilities, standing up vaccination sites, and supporting struggling small businesses—these governments have faced significant revenue shortfalls as a result of the economic fallout from the crisis. As a result, these governments have endured unprecedented strains, forcing many to make untenable choices between laying off educators, firefighters, and other frontline workers or failing to provide services
    that communities rely on. Since the beginning of this crisis, state and local governments have cut over 1 million jobs.

  • The Coronavirus State and Local Fiscal Recovery Funds provide substantial flexibility for each jurisdiction to meet local needs—including support for households, small businesses, impacted industries, essential workers, and the communities hardest-hit by the crisis. Within the categories of eligible uses listed, recipients have broad flexibility to decide how best to use this funding to meet the needs of their communities.
  • In addition to allowing for flexible spending up to the level of their revenue loss, recipients can use funds to:
    • Support public health expenditures, by – among other uses – funding COVID-19
    mitigation efforts, medical expenses, behavioral healthcare, mental health and substance misuse treatment and certain public health and safety personnel responding to the crisis;
    • Address negative economic impacts caused by the public health emergency,
    including by rehiring public sector workers, providing aid to households facing food, housing or other financial insecurity, offering small business assistance, and extending support for industries hardest hit by the crisis
    • Aid the communities and populations hardest hit by the crisis, supporting an
    equitable recovery by addressing not only the immediate harms of the pandemic, but its exacerbation of longstanding public health, economic and educational disparities
    • Provide premium pay for essential workers, offering additional support to those who have borne and will bear the greatest health risks because of their service during the pandemic; and,
    • Invest in water, sewer, and broadband infrastructure, improving access to clean
    drinking water, supporting vital wastewater and stormwater infrastructure, and expanding access to broadband internet.
  • Insufficient federal aid and state and local austerity under similar fiscal pressures during the Great Recession and its aftermath undermined and slowed the nation’s broader recovery. The steps the Biden Administration has taken to aid state, local, territorial, and Tribal governments will create jobs and help fuel a strong recovery. And support for communities hardest-hit by this crisis can help undo racial inequities and other disparities that have held too many places back for too long.
  • For more information, visit Coronavirus State and Local Fiscal Recovery Funds on
    Treasury.gov.

Here are some of eligible uses of the American Rescue Plan support for municipalities. These were shared Monday as part of a presentation by the U.S. Department of the Treasury during a webinar Monday.

Now that these long-awaited guidelines for the State and Local Fiscal Recovery Funds are out, the Michigan Municipal League anticipates that many of our member communities will likely get contacted from the media, businesses, and residents about how they are going to utilize this support within these guidelines.

To help, the League has come up these talking points for our community leaders to use if they would like. The talking points are also pasted below.

Also, the ServeMICity program generously supported by the Michigan Municipal League Foundation is there to help your community navigate all COVID-19-related financial assistance that’s out there, including these ARP dollars. If you are interested in that program please contact the League’s Shanna Draheim at sdraheim@mml.org.

If you have any questions about these talking points or the American Rescue Plan in general, please contact the League’s Chris Hackbarth at chackbarth@mml.org, John LaMacchia at jlamacchia@mml.org, or Matt Bach at mbach@mml.org.

Please stay tuned to the League’s Inside 208 blog and the League’s social media outlets for the latest information about the American Rescue Plan, including upcoming informational webinars, videos, and discussions that the League is currently working on related to these guidelines.

Here are the talking points (get printable pdf here):

Charting Our Future: ARP Talking Points

  • After weeks of waiting and speculation, the guidelines for the American Rescue Plan (ARP) have now been released.
  • This support represents a once-in-a-generation opportunity for [MUNICIPALITY] to reflect on the needs of our community and strategically invest these resources in our future, building community wealth for our residents and businesses.
  • Our community is currently reviewing the new American Rescue Plan guidelines and will continue to be deliberate and collaborative in deciding how to best use this funding in ways that are impactful and have long-term benefit for [MUNICIPALITY].
  • To maximize the impact, we will also work with our partners at the Michigan Municipal League and National League of Cities to explore ways to leverage and amplify the funding we have received with other available resources.
  • The good news is, we have time, and don’t need to rush our decision on how we spend these funds. A key part of the American Rescue Plan is that the estimated money we are to receive does not have to be allocated until the end of 2024. Providing us the time to work with you to determine how this support is best utilized.
  • Our community, like all Michigan municipalities, has faced tough times and tough decisions over the past two decades. The American Rescue Plan gives us an opportunity invest in ourselves, and emerge from the pandemic stronger than we were before.
  • This community has stepped up time and time again to find creative, innovative ways to move us forward.
    • Michigan communities have endured through [Insert your own examples, such as population decline, once in a lifetime flooding, infrastructure failure, social and racial unrest, economic devastation, major demographic shifts, drug epidemics, declining public health—both physical and mental—] topped off by a global pandemic that threatened to bring us to our knees. We wish we could say that was the end of the list.
  • Together, we have risen to the occasion to help each other, and to keep the wheels turning on the basics of local government (public safety, roads and infrastructure, parks, etc.). While the pandemic might be global, its affects are felt locally.
    • Many of us have lost loved ones and friends.
    • Our restaurants and small businesses have suffered tremendously.
    • Our children and schools have struggled to adapt to remote learning.
  • In short, now is the time to invest in the needs of our community.
  • Local government belongs to its residents. By working together, we will create a plan that responsibly invests in our people and our overall economic recovery while also paying dividends long into the future.

White House to Host American Rescue Plan Implementation Call with Michigan Elected Officials Thursday

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Mayors across the nation met Wednesday with White House leaders about the American  Jobs Plan, including Westland Mayor Bill Wild, MML President; Lansing Mayor Andy Schor; and Detroit Mayor Mike Duggan. Other elected officials in Michigan are invited to a similar meeting on the American Rescue Plan 1:30 p.m. Thursday, April 1.

White House officials are having a virtual briefing with Michigan elected leaders Thursday (tomorrow) about the implementation of the American Rescue Plan at the local level.

This free briefing for Michigan elected officials is by the White House Office of Intergovernmental Affairs and National Economic Council. The event is 1:30 p.m. Thursday, April 1, and it’s being promoted by the National League of Cities (NLC) and shared by the Michigan Municipal League.

Go here to register: Webinar Registration – Zoom (zoomgov.com).

In addition. here is more information about the ARP being shared by the NLC:

The National League of Cities continues to work with U.S. Department of Treasury on the implementation of the American Rescue Plan Act in our nation’s municipalities. Last week, the NLC submitted a letter asking for additional spending guidance for the Coronavirus State and Local Fiscal Relief Fund.

About the American Rescue Plan Act Summary

The American Rescue Plan (ARP) Act will deliver $65.1 billion to cities, towns and villages, in addition to a host of other relief programs. Last week, NLC hosted its second weekly update call, which provided an overview on how ARP will help cities stabilize local government operations. The NLC and the League are still awaiting Treasury guidance on how municipalities can spend the money; however, there are certain principles that cities can begin to follow now.NLC Update Call #2: American Rescue Plan Implementation – National League of Cities.

Seven Local Goals for Recovery Legislation

Cities, towns and villages are ready to rebuild. Earlier this week, NLC released seven key goals for Congress and the Administration to work together with cities, towns and villages on as they advance the next step of critical recovery legislation.

What Cities Need to Know as Congress Ramps Up Community Prioritized Investments

The U.S. Congress is getting ready to take suggestions on worthy city projects ready for investment, but the opportunity to submit them is going to move quickly. Earmarks, or Congressionally directed project spending, were discontinued for several years, but both the House Democratic majority and House Republican minority have made changes to their rules to allow a new version of to return. Learn more about submitting community supported projects. Your community is asked to share your policy priorities and local conditions by filling out this NLC survey here.

American Rescue Plan Talking Points for Michigan’s Local Governments

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The Michigan Municipal League has received a lot of questions about the recently approved American Rescue Plan from our members. Many of your answers can be found in this blog by the League’s Chris Hackbarth. But we’ve also received feedback from members seeking best practices about how to discuss the American Rescue Plan with the public and media. In response, we’ve prepared the following talking points and common questions and answers to help guide you. Feel free to use these talking points and questions and answers below and adjust them to fit your community’s needs.

Local Official American Rescue Plan Talking Points

  • The American Rescue Plan Act (ARP) represents a historic moment for [insert community name].
  • This financial support is an opportunity to invest in our future by building community wealth.
  • The funds are also a long overdue acknowledgement of local government’s outsized role in the day-to-day services that support a high quality of life.
  • History: This pandemic has put our communities through hell.
  • This fresh hell is on top of more than 20 years of persistent disinvestment and erosion of local control and decision-making ability for our community.
    • We know the story, Headlee, Proposal A, revenue sharing cuts, pre-emption of local control, etc.
    • Since 2000, Michigan communities have lost more than $9 billion to these policy decisions.
  • [Insert community name] has done more with less for two decades, and the American Rescue Plan is a lifeline that will help ensure our community can host, support, and accelerate a robust recovery for all our residents.
  • Crisis after crisis we have stepped up to find creative, innovative ways to serve our residents.
    • We’ve endured through population decline, once in a lifetime flooding, infrastructure failure, social and racial unrest, economic devastation, major demographic shifts, drug epidemics, declining public health—both physical and mental—topped off by a global pandemic that threatened to bring us to our knees, and I wish I could say that was the end of the list.
  • We have risen to the occasion to serve our residents every time while keeping the wheels turning on the basics of local government (public safety, roads and infrastructure, parks, etc.). While the pandemic might be global, its affects are felt locally.
    • Our restaurants and small businesses have suffered tremendously.
    • Our children and schools have struggled to adapt to remote learning.
    • Our trails and parks have hosted neighbors near and far seeking a break from isolation.
    • Our infrastructure has been transformed to set up COVID testing facilities while our ability to perform basic maintenance has suffered.
  • Local government belongs to its residents, and we will work with our residents and businesses to ensure these funds are invested strategically so that our whole community will benefit long into the future.
  • We will take our time. There are several weeks before the U.S. Treasury releases official guidance on our specific allocation and rules for implementation. Beyond that, we have until 2024 to spend these dollars.
  • We will revisit our [master plan/asset management plan/etc.] which will serve as a guideline, but we will also take time to reengage the entire community on our priorities.

Frequently Asked Questions

How much money is your community receiving?

There are various lists of anticipated ARP dollars by community, but these lists have inaccuracies and are incomplete. We’re waiting for more accurate numbers, as well as additional direction and information from the U.S. Department of the Treasury. It’s worth nothing that we can take our time in determining the best uses of this one-time funding because the ARP law gives us until the end of 2024 to use this community investment.

How will you spend this money?

The short answer is “carefully and strategically.” Local governments have been under funded for decades to the tune of $9 billion since the year 2000. We have crumbling infrastructure needs, public safety needs, human service needs, and our downtowns and parks need improvement and maintenance.

This is an extremely large sum of money. How can the public be assured that it will be spend responsibly and not wasted?

This isn’t [insert community’s] money, this is the public’s money. We are going to take our time to engage the community to ensure the that it goes to where their priorities are. The goal is to ensure these funds are used strategically so that every corner of our community makes a full recovery.

Are there any guidelines on how American Rescue Act funds can be spent?

The Department of Treasury will be issuing guidance detailing its interpretation and implementation of eligible uses, but the statutory language specifically authorizes the following uses of these funds:

  • To respond to the pandemic or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality;
  • For premium pay to eligible workers performing essential work (as determined by each recipient government) during the pandemic, providing up to $13 per hour above regular wages;
  • For the provision of government services to the extent of the reduction in revenue due to the pandemic (relative to revenues collected in the most recent full fiscal year prior to the emergency);
  • To make necessary investments in water, sewer, or broadband infrastructure

Are there things that the American Rescue Act funds CANNOT be used toward?

Yes, the Act prohibits states from offsetting, either directly or indirectly, a tax cut made since March 3, 2021; and prohibits states and local communities from depositing these dollars into a pension fund.

 

League President Bill Wild Meets with Speaker of the House on American Rescue Plan

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League President Bill Wild, mayor of Westland, meets with U.S. Speaker of the House Nancy Pelosi on Thursday.

Michigan Municipal League President Bill Wild, Mayor of Westland, continued to advocate on behalf of Michigan communities in support of the American Rescue Plan (ARP) by meeting with U.S. Speaker of the House Nancy Pelosi. The virtual meeting took place earlier today and was convened by the U.S. Conference of Mayors.

The group thanked Speaker Pelosi for her unrelenting support of direct aid to cities as part of the American Rescue Plan (ARP), Mayor Wild said.

Mayor Wild added Pelosi was a strong advocate to make sure ALL units of local government would receive flexible, formula-based emergency fiscal assistance.

The overriding theme from Mayors was that this funding would be used wisely to fill lost revenue to protect public safety and other essential services. Mayors also spoke of the need to look for transformative use of the funds to create equal opportunity and access to prosperity for all residents of our communities in a bipartisan manner.

Check out the League’s blog by Chris Hackbarth with details on the American Rescue Plan.

Also on Monday, March 22, during our Live with the League conversation, we will talk  with League CEO and Executive Director Dan Gilmartin and our Lansing team about what the ARP means for our communities. We will also answer your specific questions about it. Go here to register (it’s free).

Governor Whitmer Delivers State of the State Message, Calls for Expanding Local Road Funding Options

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Governor Whitmer delivered her third State of the State this evening with a focus of bi-partisanship and a theme she coined as “Fixing the Damn Road Ahead”.

The speech was delivered remotely for the first time in Michigan history and was markedly shorter than past speeches as a result.

The Governor reminded viewers of the bipartisan successes of the past year through agreements reached on the pandemic-impacted budget, the MI Reconnect plan for job training support and grants, and the Clean Slate package with delivered criminal justice reforms. She called for similar bipartisan action in the coming year.

Much of the speech focused on the Administration’s efforts to fight the pandemic, but on the policy front, the Governor identified proposals to improve K-12 education funding, expanded unemployment benefits, a new program to provide teacher support grants, and a call to renew the expired Good Jobs For Michigan economic development incentive that was first utilized by Pfizer at their Michigan facility that is now providing the COVID-19 vaccine.

Governor Gretchen Whitmer delivers her 2021 State of the State Address on Jan. 27.

Of interest to League members, the Governor went back to the road funding issue by calling for the Legislature to work with her to expand local road funding options.  It is expected that this will be a more collaborative recommendation, with no specific end result in mind, but pointing to bills introduced last term that would have provided for the option of a local vehicle registration fee and allowed for a local gas tax to be implemented.

She also called again for passage of her water infrastructure proposal she announced in the fall.  The MI Clean Water plan would reallocate $500M in existing federal revenues and state bond funds to support local clean water and contaminate clean-up investments.

In response to the speech, the Municipal League released this statement. League CEO and Executive Director Dan Gilmartin also wrote this opinion piece for Crain’s Detroit Business Forum series about how our Legislature and Governor can help communities emerge from the pandemic in 2021.

More details on these initiatives and other spending priorities are expected in two weeks when the Governor unveils her next budget recommendation.

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

That’s A Wrap – 100th Legislative Session Finalized

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With the expiration of 14-days on the Governor’s desk this past week, the last bills presented from December’s lame duck legislative action brought the 100th Legislative Session to an official close.

All told, nearly 300 new bills were introduced between the House and the Senate during the lame duck period, following the November election.  A total of 402 bills became new Public Acts (PAs) in 2020, with 158 of those PAs being finalized during lame duck, mainly during the month of December.  In addition to the volume of new laws, the Governor leaned heavily on her veto pen during the final days of the 100th Legislative Session.  All told, 36 bills were either directly vetoed or expired without signature, resulting in a pocket veto. The legislative action of 2020 stands in stark contrast to the activity of 2019, where only 178 new PAs were signed and no bills were vetoed. 

The following updates summarize many of the main issues that League staff were engaged with during this lame duck period and those issues that we expect to see returning during the 2021-2022 legislative term.

Signed By The Governor:

  • COVID Extension to Boards of Review: HB 5824 and 5825 (PAs 251 & 297 of 2020) – The League supported these two bills which codify the Governor’s now nullified Executive Order that had extended the March 2020 Boards of Review and allowed certain additional appeals and valuation changes during the July 2020 Boards of Review.
  • Poverty exemption: SB 1234 (PA 253 of 2020) – This bill amends the current residential property tax poverty exemption to assist with various COVID-related impacts that low-income residents are facing as they attempt to apply for the exemption. Upon determination of the local unit of government, existing poverty exemption applications may remain in effect for up to three years to counteract personal and public facility limitations due to COVID-19.  A similar, 3-year extension is also authorized for local units that choose to offer the extension for eligible residents on fixed income from public assistance. The League and the City of Detroit testified in support of these bills.  Treasury negotiated a number of amendments as a condition of their support prior to passage, including requiring each local unit’s poverty exemption policy and guidelines be posted on their website and bringing uniformity to the allowance of any partial exemptions, less than 100%, unless authorized by the State Tax Commission.
  • Personal Property Tax COVID Location Freeze: SB 1203 (PA 352 of 2020) – Amends the General Property Tax Act to freeze the location of all personal property being used by remote workers as assessable only at the business’s ordinary location for the 2021 tax year.
  • Tax Foreclosure Proceeds: SB 676 & 1137 (PAs 255 & 256 of 2020) – These bills were passed in response to the recent Michigan Supreme Court Rafaeli decision that found that all “excess” proceeds from a tax foreclosure sale must be paid to the former owner of the property. This decision could have a long-term harmful impact on County Delinquent Tax Revolving Funds that will lead to chargebacks being assessed to local taxing jurisdictions. Communities that also leverage their right of first refusal to acquire these foreclosed properties for the minimum bid may also face a more expensive path to acquiring these parcels as the court decision also puts the ability to acquire parcels for the minimum bid at risk. Following months of work group discussions and negotiations with local units, the County Treasurers Association, and the Michigan Department of Treasury, the League secured amendments to retain a process for local units to continue acquiring some parcels for the minimum bid and language providing for an annual  local fiscal impact analysis from Treasury to help evaluate and make recommendations to address any increase in chargebacks to local units.
  • OMA Virtual Meetings: SB 1246 (PA 254 of 2020) – Senate Bill 1246 amends the Open Meetings Act to allow communities to continue meeting virtually due to the pandemic through March 31, 2021. The prior allowance had allowed communities to meet virtually only through the end of 2020, so this extension was a high priority for the League. This new legislation also makes technical changed requested by the League to allow a local state of emergency or state of disaster to be declared pursuant to a local ordinance (in addition to those declared under law or charter in the current law) and adds a local chief administrative officer (in addition to a local official or local governing body) as a person who may declare the local state of emergency. In addition, the bill sets requirements a public body shall follow if a meeting is held in person before April 1, 2021, including adherence to social distancing and mitigation measures recommended by the Centers for Disease Control and Prevention for purposes of preventing the spread of COVID-19 and adopting heightened standards of facility cleaning. Read this blog for additional details.
  • Historic Preservation Tax Credit: SB 54 (PA 343 of 2020) – The League has fought for a number of years to restore Michigan’s state-level Historic Preservation Tax Credit program that was repealed under former Governor Snyder. The new program will provide a 25% credit on rehabilitation expenses against state income tax. For homeowners in historic districts, this credit helps offset the costs of repairing older homes while retaining their historic attributes. SB 54 caps the total number of credits per year at $5 million in order to have minimal initial impact on the State budget. The necessary $5 million for funding of the first year of the credit was already appropriated in the current state fiscal year in anticipation of this bill’s passage.
  • COVID critical infrastructure worker: SB 1258 (PA 339 of 2020) – Public Act 238 of 2020,  adopted earlier in 2020, established certain employee protections related to exposure to COVID-19. One aspect of that law required employees to quarantine for 14 days following certain instances of exposure. Specific classes of employees/businesses are exempt from that 14-day quarantine, like health care employees and first responders. Officials from the cities of Oak Park and St. Clair Shores joined the League in advocating for language in SB 1258, which would extend the specific employee/business exemption from the quarantine requirement to include critical infrastructure employees in the energy industry and other critical municipal service categories like water and wastewater operations.  During final negotiations, the bills was amended to allow the Dept of Health & Human Services Director to designate certain categories of employees for critical infrastructure deemed necessary to preserve public health or public safety. The bill also provides additional flexibility for returning to work with negative test results and time periods for isolation and/or quarantine as determined appropriate by the CDC, as opposed to designating a specific number of days in statute. The League and other local units have submitted a letter (view it here) to the Department Director requesting the immediate designation of critical municipal operations pursuant to the language in the new law.
  • Movable Bridge Public-Private Partnerships: SB 1215–1218 (PAs 353-356 of 2020) – The League and Bay City officials testified in support of this package of bills that will help Bay City address the replacement of two city-owned movable bridges. Due to the unique nature of these bridges and the extraordinarily high cost of replacement, this package will provide statutory authority for Bay City to enter into a public-private partnership that will provide for the replacement of both bridges and free up substantial city resources that can be invested in other infrastructure projects.
  • Water Shut-Offs: SB 241 (PA 252 of 2020) – A new version of this bill was adopted to codify the Governor’s previous Executive Order related to water shut-offs. In early July Governor Whitmer issued Executive Order 144 that placed a moratorium on water shutoffs until December 31st of this year. Following the nullification of the Governor’s E.O.s by the Michigan Supreme Court, the Administration and the Legislature negotiated the language in SB 241 to codify the intent of that E.O. into statute. This agreement in this bill reinstates the moratorium on water shutoffs and extends the date to March 31, 2021
  • Supplemental Budget Appropriation/CARES Hazard Pay Grant Extension: SB 748 (PA 257 of 2020) – Separate from the political grappling between the Legislature and Governor over state spending for COVID relief and unemployment benefits, language was included at the League’s request to extend the time period for local units to have issued first responder hazard pay premiums under the state’s Coronavirus Relief Fund grant program and be eligible for a reimbursement.  The original language had required payroll be issued by 10/31/2020, this change allowed communities to issue their payroll by 12/29/2020 and still be eligible for reimbursement.
  • Brownfield Redevelopment Authority Administrative Change: HB 4159 (PA 259 of 2020) – Provides technical changes and oversight to brownfield redevelopment authorities. Additional amendments were adopted to section 13b to increase the number of active projects that an authority may have at one time and also allow for a corresponding increase in expenditures for administrative and operating costs relative to the number of projects. This change is also consistent with the recently updated MEDC strategic plan and their revised Community Revitalization Program guidelines.
  • Small Cell Road Commission Fix: SB 1256 (PA360 of 2020) – Late in lame duck SB 1256 was introduced and moved without a committee hearing, receiving bi-partisan support in both chambers. This bill added country roads commission to the definition of authority and clarifies the original intention of the legislation. As a result of this change, all entities within the right of way would operate on a level playing field. The League did not support this legislation but did request, and have secured a commitment from the bill sponsor (Sen Dan Lauwers), to provide additional clarification that the rate will be paid exclusively to cities, villages, and townships. A bill addressing this clarification will be introduced early in 2021 and we anticipate it being taken up shortly after committees begin to meet.

Vetoed By The Governor:

  • Solar Projects Tax Exemptions: SB 1105 & 1106 – These bills were vetoed by the Governor as premature, given the State Tax Commission’s ongoing ad hoc review committee and related analysis and recommendations were not considered in the development of the vetoed language. The League opposed these bills and submitted a letter requesting the Governor veto these bills. The two bills would have exempted all utility-grade solar projects from the industrial personal property tax and replaced that lost property tax revenue with a Payment In Lieu of Tax reimbursement of $4000 per megawatt, an arbitrary value that would have amounted to pennies on the dollar for many local units.  Local units would have also been required to approve every tax exemption application it received as long as the project matched the definition of an “qualified renewable energy facility”, regardless of local land use or economic development plans or support.  As stated in the League’s veto request letter, which you can read here, we support additional investment in alternative energy systems in Michigan, but any PILT proposal must be developed in conjunction with local government and provide a balance between promoting solar development and maintaining the services residents rely upon.
  • Meijer Warehouse Equipment PPT cut: SB 1153 – This bill, along with two other bills (SB 1149–1150) had proposed exempting consumer goods handling warehouse equipment from personal property, sales and use tax. The bills died on SB 1149 1150 1153 veto request letter 12.22.20the Governor’s desk when she declined to act on them before the 14 days expired at the end of the term. The League opposed all three bills and submitted a veto request letter to the Governor, which you can view here. These bills would have provided Meijer and other large commercial retailers with full sales, use, and personal property tax exemptions for all large-scale consumer goods handling warehouse distribution equipment. The League and all other local government and school groups, and the MI Department of Treasury testified in opposition to these bills and a separate three bill package that did not end up moving (SBs 1178, 1179, 1180) that would have provided similar sales, use, and personal property tax exemptions for so-called “micro-fulfillment” systems installed by retailers to facilitate filling online customer orders. The Governor had expressed concern publicly with SBs 1149, 1150, and 1153, questioning the unknown impact that these cuts would have on state and local revenues.
  • Summer Property Tax Deferral/Penalty & Interest Relief: SB 943 – Originally introduced this summer as part of the summer tax deferral proposal that was vetoed, a substitute version of SB 943 was quickly adopted and passed targeting a select number of industries hit hardest by the pandemic. This alternative approach would have allowed for the retroactive deferral of any delinquent summer tax bills and waiver of related penalties and interest from four specific industry segments, until Feb 15, 2021. The bill also provided for state reimbursement to local units for any forgiven penalties and interest owed on any of these deferred amounts.  Treasury had opposed the bill based upon concern over administering the program. The Governor declined to act on the bill before the expiration of the 14-day limit, resulting in a pocket veto.
  • Rental Inspections: SB 692 – The League was neutral on this bill as the change would have only impacted certain change of ownership situations and only for a limited time period, not indefinitely. This bill was also pocket vetoed based upon a limited rationale for the legislation.

Bills Opposed By The League That Died Without Action:

  • Zoning Preemption For Aggregate Mining: SB 431– The League strongly opposed this effort to preempt local units of government from virtually any zoning or other currently authorized regulation of gravel and aggregate mining.  This bill is expected to be reintroduced in 2021 and the League will continue to engage League members and work with our allies to block its passage.
  • Preempting Regulation Of Automated Delivery Devices: SB 892
  • Zoning Preemption For Certain Large Foster Care Facilities: HB 4095
  • Short-Term Rental Zoning Preemption: HB 4046

Legislation The League Will Continue To Pursue In 2021:

  • Headlee/Proposal A Reform: HB 6454 – This bill was introduced to address the negative interactions between Headlee and Proposal A before any property value reductions from the current pandemic recession could impact local budgets.  We are working with the bill sponsor to reintroduce this proposal in the new term.
  • Public Notice Reform: HB 6440 – This was the main bill in a more than 100-bill package that proposed reforming the current, obsolete public notice requirements throughout state law.  This is a reintroduction of a similar package that the League supported in the 2015-16 session.
  • Speed Limits: HB 4733 – This bill would have further clarified local government’s ability to adjust speed limit below the 85th percentile speed when demonstrating a situation with hazards to public safety through an engineering and safety study.
  • Stormwater Authority Creation: HB 4691 and Basement Back-Up Liability Protection: HB 4692
  • Dark Store Property Assessing Reform: SB 26 & 39
  • Veteran’s Property Tax Exemption: HB 4176

The League will also continue to prioritize restoration of cuts and additional protections for statutory revenue sharing, funding for municipal infrastructure at risk from high-water levels and shoreline erosion, and opportunities to improve funding for roads and underground infrastructure in the new term, among other priorities.

The 101st Legislature will officially be seated and commence action on Wednesday, January 13th. Since the House is re-forming under a new Republican Speaker (Jason Wentworth, R-Farwell), a new committee structure will be established, and new committee membership will need to be announced. At this point, only the incoming leadership team and the House Appropriations committee chairmanship (Thomas Albert, R-Lowell) have been revealed. Neither the House nor Senate leadership have revealed their policy agendas for the coming year. 

Following the ceremonial first day of session on the 13th, the state’s annual Consensus Revenue Estimating Conference is scheduled for 9 am on Friday, January 15th. This revenue conference will establish the baseline that the Governor’s budget team will utilize to craft her Executive Budget Recommendation that will likely be released in early February. The Governor’s State of the State address has been scheduled for Wednesday, January 27th at 7 pm.  That speech and the subsequent budget presentation will offer insight into the Administration’s legislative goals for the year. 

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

Lame Duck Round Up – Week 3…

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With the Michigan Senate’s final action late Friday night, only Monday’s House session remains before the 100th Legislative Session comes to an end.

The Senate remained in session throughout the day Friday, concurring in bills that the House had sent over late on Thursday and working to formulate a deal on a year-end state budget supplemental.  As one of their final votes Friday night, the Senate passed SB 748, a $465 million appropriation bill aimed at providing additional, state-level Coronavirus relief.  Within the Senate-passed bill, $128 million is targeted at COVID-19  health-related programs funded through the Department of Health and Human Services, and over $278 million will run through the Department of Labor and Economic Opportunity to support an extension of state unemployment benefits and various small business grant offerings.  The League supported two items that were part of the appropriations for the Michigan Department of Treasury; a $5 million appropriation to cover the costs for any penalties or interest waived as part of the recently passed SB 943, which offers retroactive summer property tax deferrals to four specific industry segments harmed by pandemic shutdowns, and a change in the language outlining the First Responder Hazard Pay Premium program authorized earlier this summer, to extend the deadline for local units to have paid these hazard pay premiums to eligible employees out to December 29, 2020.

This appropriation bill now moves to the House for concurrence on Monday, along with a few remaining bills that the House was unable to act on last week.  The Governor has not indicated if she will support this supplemental appropriation.

The following are brief summaries of action during this third week of lame duck: 

OMA Virtual Meetings: The state House and Senate passed Senate Bill 1246 that would amend the Open Meetings Act to allow communities to continue meeting virtually due to the pandemic through March 31, 2021. The bill now heads to Governor Whitmer for approval. As you may recall the current law allows communities to meet virtually through the end of this month so getting this extension was a high priority for the League. This new legislation also allows a local state of emergency or state of disaster to be declared pursuant to a local ordinance (in addition to those declared under law or charter in the current law) and adds a local chief administrative officer (in addition to a local official or local governing body) as a person who may declare the local state of emergency. In addition, the bill sets requirements a public body shall follow if a meeting is held in person before April 1, 2021, including adherence to social distancing and mitigation measures recommended by the Centers for Disease Control and Prevention for purposes of preventing the spread of COVID-19 and adopting heightened standards of facility cleaning. Read this blog by the League’s Jennifer Rigterink with all the details. 

Solar Projects Tax Exemptions: SB 1105 & 1106 – Status: passed House, both bills now head to the governor. The League is opposed to these bills and is drafting a veto request letter. These two bills would exempt all utility-grade solar projects from the industrial personal property tax and replace that lost property tax revenue with a Payment In Lieu of Tax reimbursement that amounts to pennies on the dollar for many local units.  Local units would also be required to approve every tax exemption certificate application if the project matches the definition of an “qualified renewable energy facility”, regardless of local land use or economic development plans or support.

Summer tax deferral: SB 943 – Status: passed, heads to governor for approval. Originally introduced this summer as part of the summer tax deferral proposal that was vetoed, a substitute version of SB 943 was quickly adopted and passed by the Senate to target a select number of industries hit hardest by the pandemic. This new version allows for the retroactive deferral of any currently delinquent summer tax bills and waiver of related penalties and interest from four specific industry segments, until Feb 15, 2021. The bill also provides that the state will reimburse local units for the lost penalties and interest owed on any of these deferred amounts (see summary of SB 748-supplemental budget appropriation above). It is not known if the Governor will sign the bill. 

Poverty exemption: SB 1234 – Status: passed House, heads to governor for approval. This bill amends the current residential property tax poverty exemption to assist with various COVID-related impacts that low-income residents are facing as they attempt to apply for the exemption. The League and the City of Detroit testified in support of these bills in both the House and Senate.  Treasury negotiated a number of amendments as a condition of their support prior to passage.

Meijer Warehouse Equipment PPT cut: SB 1153 – Status: passed House along with two other bills (SB 1149–1150) exempting this equipment from sales and use tax.  All three bills now head to the governor. The League opposed these three bills and is drafting a veto request letter. These bills would provide Meijer and other commercial retailers with full sales, use, and personal property tax exemptions for all large-scale consumer goods handling warehouse distribution equipment. The League and all other local government and school groups, and the MI Department of Treasury  testified in opposition to these bills. 

Historic Tax Credit: SB 54 – Status: passed House, heads to governor. This proposal has long been supported by the League to restore Michigan’s state-level Historic Tax Credit program that was repealed under former Governor Snyder. The new program will provide a 25 percent credit on rehabilitation expenses against state income tax. For homeowners in historic districts, this credit helps offset the costs of repairing older homes while retaining their historic attributes. SB 54 caps the total number of credits per year at $5 million in order to have minimal initial impact on the State budget. The necessary $5 million for funding of the first year of the credit was already appropriated in the current state fiscal year in anticipation of this bill’s passage.  

Water Shut-Offs: SB 241 – Status: passed House, heads to governor for signature. A new version of this bill was adopted to codify the Governor’s previous Executive Order related to water shut-offs. In early July Governor Whitmer issued Executive Order 144 that placed a moratorium on water shutoffs until December 31st of this year. Following the nullification of the Governor’s E.O.s by the Michigan Supreme Court, the Administration and the Legislature negotiated the language in SB 241 to codify the intent of that E.O. in statute. This agreement in this bill would reinstate the moratorium on water shutoffs and extend the date to March 31, 2021. 

Tax foreclosure proceeds: SB 676 and 1137 – Status: passed House, heads to governor for approval. These bills have been developed in response to the recent Michigan Supreme Court Rafaeli decision that found that all “excess” proceeds from a tax foreclosure sale must be paid to the former owner of the property. This court decision could have a long-term harmful impact on County Delinquent Tax Revolving Funds that will lead to chargebacks being assessed to local taxing jurisdictions. Communities that also leverage their right of first refusal to acquire these foreclosed properties for the minimum bid may also face a more expensive path to acquiring these parcels as the court decision also puts the ability to acquire parcels for the minimum bid at risk. Following months of work group discussions and negotiations with local units, the County Treasurers Association, and the Michigan Department of Treasury, the League secured amendments to retain a process for local units to continue acquiring some parcels for the minimum bid and language providing for a local fiscal impact analysis from Treasury to help evaluate and make recommendations to address any increase in chargebacks to local units.

COVID Extension to Boards of Review: HB 5824 and 5825 – Status: House concurred in Senate changes, heads to governor for approval. The League supported these two bills which codify the Governor’s now nullified Executive Order that had extended the March 2020 Boards of Review and allowed certain additional appeals and valuation changes during the July 2020 Boards of Review.

Rental Inspections: SB 692 – Status: passed House, heads to governor for approval. The League was neutral on the bill as the change only impacts certain change of ownership situations. 

COVID critical infrastructure worker: SB 1258 – Status: passed Senate this week and the House is scheduled to vote on this bill on Monday. A new law adopted this fall established certain employee protections related to exposure to COVID-19. One aspect of the new law requires employees to quarantine for 14 days following certain instances of exposure. Specific classes of employees/businesses are exempt from that 14-day quarantine, like health care employees and first responders. The League advocated for the amendments in SB 1258, which would extend the specific employee/business exemption from the quarantine requirement to include critical infrastructure employees in the energy industry and other critical employee categories necessary to preserve public health or public safety, as determined by the Dept of Health & Human Services Director. The bill also provides additional flexibility for returning to work with negative test results and time periods for isolation and/or quarantine as determined appropriate by the CDC, as opposed to designating a specific number of days in statute. 

The House is scheduled to commence session on Monday, December 21st at 10 a.m. and wrap up action on around a dozen bills before ending for the year.

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

Lame Duck Round Up – Week 2

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We entered this second week of lame duck expecting action on bills along multiple fronts as the legislature positioned themselves to wrap up activity for the year next week. Instead, this second week ended up feeling a little more like waiting in limbo as the House cancelled all of their session and committee activities due to COVID concerns.  That left the week’s action to center on the Michigan Senate, which had already moved most of the bills on their agenda over to the House last week.  With the lack of House activity this week, that means most of the work left will fall on that chamber next week, while the Senate waits for the return of any items that will require Senate concurrence.  It is possible that the lame duck session will now be extended into the week of Christmas to ensure enough time to get any agreed up bills completed before the term ends.

Despite the absence of House action, the Senate did move the most critical item on the League’s agenda for lame duck.  Senate Bill 1246 (Theis), which amends the Open Meetings Act to provide an extension for remote/virtual public meetings until the end of March 2021, moved out of the Senate with an overwhelming 36-1 vote in support of the extension.  This bill will be at the top of our list to push out of the House next week, once they return to session.

The following is a brief summary of action that occurred this week on other bills that the League’s State & Federal Affairs team is engaged with…

  • SB 943 – Originally introduced this summer as part of the summer tax deferral proposal that was vetoed, a substitute version of SB 943 was quickly adopted and passed by the Senate yesterday to target a select number of industries hit hardest by the pandemic.  This new version allows for the retroactive deferral of any currently delinquent summer tax bills and waiver of related penalties and interest  from four specific industry segments, until Feb 15, 2021.  The bill also provides that the state will reimburse local units for the lost penalties and interest owed on any of these deferred amounts. The bill moves back to the House for a concurrence vote and a separate appropriation of the funds needed to cover those lost penalties and interest.  It is not known if the Administration will support the bill.
  • SBs 1257 & 1258 – The Senate introduced their own versions of HB 6448 and HB 6467 to address the exemptions of critical infrastructure workers from COVID-19 quarantine requirements under certain circumstances.  These bills specifically identify essential energy industry, water & wastewater, and other critical infrastructure workers.  The League has been actively engaged in providing broader exemptions to the current quarantine requirements for critical municipal operations.  The content of these bills continues to be negotiated between the legislature, Governor’s office, and interest groups like MML.  Action in both chambers is expected next week.
  • SB 241 – A new version of this bill was adopted on the Senate floor this week to codify the Governor’s previous Executive Order related to water shut-offs. In early July Governor Whitmer issued Executive Order 144 that placed a moratorium on water shutoffs until December 31st of this year. This order was nullified by the Supreme Court. Since then the Admiration and the Legislature have been in negotiations to codify that order in statute and finally came to an agreement this week. This bill would reinstate the moratorium on water shutoffs and extend the date to March 31, 2021. Action on the bill by the House is expected next week.
  • HB 4159 – Provides oversight to brownfield redevelopment authorities. A  substitute version was adopted amending section 13b to increase the number of active projects that an authority may have at one time and also allow for a corresponding increase in administrative and operating costs relative to the number of projects. This change is also consistent with the recently updated MEDC strategic plan and their revised Community Revitalization Program guidelines. A concurrence vote is expected in the House next week.

A full agenda of bill activity is expected next week as both the House and Senate are expected to move most of the remaining lame duck priorities into position for final action.

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

Lame Duck Round Up – Week 1

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This week kicked off the first full week of lame duck legislative activity since the November election.  The League’s advocacy team is engaged on multiple fronts to promote a number of pieces of legislation we have been supporting and defending against a host of proposals that will harm local control and local budgets.

While the full calendar of expected lame duck session days is still a bit murky, our team is preparing for this lame duck period to extend through December 17th, giving legislators and committees two more weeks to try and complete legislative priorities.

Given that limited schedule, this first week of action focused on putting a large number of bills in play so that they could have enough time to be completed before the final adjournment for the year.

The following is a brief summary of action that occurred this week on bills that the League’s State & Federal Affairs team is engaged with…

  • HB 5824-5825 – These bills would codify the Governor’s Executive Order from earlier this year, that the court’s struck down, which extended the March and July Boards of Review.  The League supported these bills in Senate committee earlier this week and the full Senate voted today in unanimous support.
  • SB 1234 & HB 4828 – These bills are identical to each other and amend the current residential property tax poverty exemption to assist with various COVID-related impacts residents are facing as they attempt to apply for the exemption.  The League and the City of Detroit testified in support of these bills in both the House and Senate committees this week.  The full Senate reported SB 1234 unanimously this afternoon and further work is expected on the bills next week.
  • SB 1105–1106 – These two bills would exempt all utility-grade solar projects from the industrial personal property tax and replace that lost property tax revenue with a $3500/MW Payment In Lieu of Tax.  This amounts to pennies on the dolar for many local units versus the existing tax liability and would require mandatory approval of the exemption by all local units. The League previously testified in opposition to these bills, but did indicate a willingness to engage in discussions on a more reasonable PILT alternative that communities would have the option to employ, if this was a development they were choosing to incent. These bills were reported by the Senate in their original format earlier today along a mainly party-line vote and we continue to oppose.
  • SB 1153 & 1179 & HB 6198 & 6284 – These four bills are part of four identical tax exemption packages being considered by both the House and the Senate to provide Meijer and other commercial retailers with full sales, use, and personal property tax exemptions for all large-scale consumer goods handling warehouse distribution equipment and so-called “micro-fulfillment” system equipment used by retailers to assist with filling online orders.  The League and all other local government and school groups testified in both chambers in opposition to these bills.  The Senate reported the bills from committee yesterday and are expected to vote on the package later today.
  • SB 1203 – Would amend the General Property Tax Act to freeze the location of all personal property being used by remote workers as assessable only at the business’s ordinary location for the 2021 tax year. While the League took no position on this legislation, we are tracking its movement and making the argument that this proposal should be accompanied by a similar freeze in work location for remote workers whose ordinary work location falls within a city income tax community.
  • HB 6454 – This bill was introduced earlier this week to address the negative interactions between Headlee and Proposal A before any property value reductions from the current pandemic recession impact local budgets.
  • SB 676 & 1137 – These bills have been developed in response to a recent Michigan Supreme Court decision that found that all “excess” proceeds from a tax foreclosure sale must be paid to the former owner of the property.  This court  decision could have a long-term harmful impact on County Delinquent Tax Revolving Funds that will lead to chargebacks being assessed to local taxing jurisdictions.  Communities that also leverage their right of first refusal to acquire these foreclosed properties for the minimum bid may also face a more expensive path to acquiring these parcels as the court decision also puts the ability to acquire parcels for the minimum bid at risk.  Following months or work group discussions and negotiations with local units, the County Treasurers Association, and the Michigan Dept of Treasury, these bills were reported from the Senate this week by a unanimous vote.
  • SB 431 – The League continues to strongly oppose this blatant move to preempt local units of government from virtually any zoning or other currently authorized regulation of gravel and aggregate mining.  This bill is expected to be brought up for a vote on the Senate floor later today and the League is vigorously working with our allies to secure enough votes to block its passage.
  • HB 6207 and SB 1246 – This legislation extends the current Open Meetings Act allowance for remote meetings during the current pandemic.  The current sunset date of 12/31/2020 would be extended through March of 2021 under the bill. The League has made this change a primary focus of our advocacy during lame duck. The bill was reported by House committee earlier this week and is expected to move off the House floor early next week.
  • HB 5822 – This League supported this legislation in House committee earlier this week to allow the City of Grand Rapids to establish their own Land Bank Authority in light of the recent dissolution of Kent County’s Land Bank.
  • SB 54 – This bill would restore Michigan’s state-level Historic Tax Credit program that was repealed under former Governor Snyder.  This proposal has long been supported by the League and was reported unanimously from committee and overwhelmingly out of the Senate earlier today.
  • HB 6440 – This is the main bill in a more than 100-bill package that would reform the current, obsolete public notice requirements throughout state law.  This is a reintroduction of a similar package that the League supported in the 2015-16 session.  The package was brought up on the House floor where it awaits sufficient support for passage.
  • HB 4035 – Legislation that allows regulation of dangerous behavior of dogs without reference to breed.  The League is neutral on this bill following significant negotiations to achieve the current compromise language and the bill was reported from Senate committee earlier this week.
  • HB 6448 & 6467 – These bills provide amendments to the recently enacted COVID employment protections that were passed earlier this fall by expanding the types of critical infrastructure workers exempt from the new law’s 14 day quarantine requirements. The League testified in support of both HB 6448 and HB 6467 in the House Judiciary Committee along with officials from the cities of Oak Park and St. Clair Shores, while also stressing the importance of incorporating all critical municipal services, like water and wastewater, in the exemption from the quarantine requirements.  Both bills passed House Judiciary Committee and await action on the House floor.
  • SB 234 – This proposal would allow Police Academy enrollees to be held accountable for tuition support from a municipality if they do not end up working for that community.  The League supports this proposal and it was reported from committee earlier this week.
  • SB 714  – Bill provides for the erection of certain emergency structures to prevent shoreline erosion.  Following a number of months of workgroup negotiations with EGLE, the League supported the version that was reported by the House committee this week.  The compromise proposal will streamline the application and processing timeline and allow for coordinated application processing with the Army Corps of Engineers.
  • HB 4733 Speed Limits – This bill would further clarify local government’s ability to adjust speed limit below the 85th percentile speed when we are able to demonstrate a situation with hazards to public safety through an engineering and safety study. This bill was voted out of House Ways and Means Committee this week with the League’s support.
  • SB 1215–1218 Movable Bridges – The League and Bay City officials testified in support of a package of bills in Senate Economic and Small Business Development Committee this week that would help Bay City address the replacement of two city-owned movable bridges. Due to the unique nature of these bridges and the extraordinarily high cost of replacement, legislation was needed that would allow for Bay City to enter into a public-private partnership that will provide for the replacement of both bridges and free up substantial city resources that can be invested in other infrastructure projects. This package received bipartisan support this week as it moved unanimously out of the Senate.
  • HB 5762 – Provides for waste water or drinking water energy performance contracting projects to be funded by the state revolving loan fund. The League supported this legislation based on the added flexibility to this program that will continue to increase opportunities for funding for municipalities.  The bill was reported from House committee earlier this week and awaits final floor action.

Many of the bills outlined above will likely see continuing action next week.  League members are encouraged to connect with their legislators on these issues.  Please reach to anyone of the State & Federal Affairs team if you have questions on these or any other bills.  Thank you for your support!

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.

$2 Trillion Federal Stimulus Bill Headed To President

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The US Senate passed H.R. 748, the CARES Act, Wednesday night and the House voted Friday to send the bill to the President.  The bill appropriates more than $2 trillion as an economic stimulus effort in response to the COVID-19 pandemic.

Within the final proposal, a $150 billion stabilization fund for state and local governments was secured that MML and NLC had advocated for with our congressional delegation.  The $150 billion will be distributed to states and directly to local governments that have a population greater than 500,000.  Local governments of less than 500,000 population would receive any funding from the state’s allocation.  Early estimates show Michigan receiving over $3.8 billion from this fund.

The bill also provides money for community development block grants and provides relief to the municipal bond market by allowing the purchase of municipal securities (with maturities greater than 6 months) in the secondary market.

In comments from our partners at NLC, one key item they were unable to get corrected relates to the previous federal stimulus bill, public law 116-127 (HR 6201), the Families First Coronavirus Response Act.  Under this new law, governmental employers are required to provide paid sick leave and paid emergency family leave. However, unlike most employers, governmental employers will not get the benefit of the tax credits for providing these benefits.

Below you will find a list of key items that NLC had been advocating for in the Senate bill based upon the latest version they were able to review before passage:

AIRPORTS

Federal Aviation Administration, Airport Improvement Program (AIP) – $10 billion to maintain operations at our nation’s airports that are facing a record drop in passengers. AIP funds will be distributed by formula.

Essential Air Service (EAS) – $56 million provided to maintain existing air service to rural communities. This funding is necessary to offset the reduction in overflight fees that help pay for the EAS program.

TRANSIT

Federal Transit Administration (FTA), Transit Infrastructure Grants – $25 billion for transit providers, including states and local governments across the country, for operating and capital expenses. Funding will be distributed using existing FTA formulas.

RAIL

Amtrak – Provides $492 million in grants for the Northeast Corridor and $526 million in grants for the broader national network to cover revenue losses related to coronavirus. In addition, funding is provided to help states pay for their share of the cost of state supported routes.

USDA

  • RURAL DEVELOPMENT – $145.5 million
  • RURAL BUSINESS COOPERATIVE SERVICE – $20.5 million

HHS

  • Low Income Home Energy Assistance Program (LIHEAP) – $900 million to help lower income households heat and cool their homes.

EPA

  • $770,000 for the Superfund program to prevent, prepare for, and respond to coronavirus, domestically or internationally for necessary expenses for cleaning and disinfecting equipment or facilities of, or for use by, the Environmental Protection Agency

Commerce

  • Economic Development Administration: $1,500,000,000
  • Manufacturing Extension Partnership: $50,000,000
  • Legal Services Corporation: $50,000,000

Small Business Administration

  • Economic Injury Disaster Loans: $562,000,000

HUD

  • Tenant-Based Rental Assistance: $1,250,000,000
  • Project-Based Rental Assistance: $1,000,000,000
  • Public Housing Operating Fund: $685,000,000
  • Community Development Block Grants: $5,000,000,000
  • Homeless Assistance Grants: $4,000,000,000
  • Housing for the Elderly: $50,000,000
  • Housing for Persons with Disabilities: $15,000,000

Broadband Connectivity

  • $25,000,000 for U.S. Department of Agriculture Distance Learning, Telemedicine and Broadband Program
  • $100,000,000 extension for U.S. Department of Agriculture ReConnect rural broadband competitive grant/loan program
  • $200,000,000 for Federal Communications Commission telehealth pilot program

Law Enforcement, Public Safety & Criminal Justice

  • Resources for Federal, State and Local Law Enforcement: $850 million for the Byrne-Justice Assistance Grant Program (Byrne-JAG)
  • Federal Bureau of Prisons: $100 million
  • Federal Law Enforcement: $55 million for the Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Marshals Service, and U.S. Attorneys
  • Federal Judiciary: $7.5 million for three accounts in the Judicial Branch.
  • Family Violence Prevention Services: $45 million to support families during this uncertain time, and to prevent and respond to family and domestic violence, including offering shelter and supportive services to those who need it.

Personal Protective Equipment

  • Defense Production Act: $1 billion to allow the Department of Defense to invest in manufacturing capabilities that are key to increasing the production rate of personal protective equipment and medical equipment to meet the demand of healthcare workers all across the nation.
  • Assistance to Firefighter Grants: $100 million for personal protective equipment for first responders.

Disaster Assistance

  • Disaster Relief Fund: $45 billion to provide for the immediate needs of state, local, tribal, and territorial governments. Reimbursable activities may include medical response, personal protective equipment, National Guard deployment, coordination of logistics, safety measures, and community services nationwide.
  • Emergency Management Performance Grants: $100 million for state, local, territorial, and tribal governments to support coordination, communications, and logistics.
  • National Guard: $1.4 billion for deployments to sustain up to 20,000 members of the National Guard, under the direction of the governors of each state, for the next six months in order to support state and local response efforts.
  • FEMA’s Emergency Food and Shelter Program: $200 million

The National Conference of State Legislatures has also provided the following summary of the Senate’s action with additional links to supplementary information – NCSL link.

Speaker Pelosi and officials with the Federal Reserve have indicated the potential for additional additional legislative or administrative stimulus support and both have identified state and local government needs as candidates for additional support.  We will provide additional information  as it becomes available following the expected House action and signature by the President.

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and chackbarth@mml.org.