Treasury Announces Grants for Financially Distressed Communities

Treasury released the following information this morning regarding grant dollars available through Treasury’s financially distressed city, village and township program:

Cities, villages and townships experiencing financial struggles can now apply for a grant to help fund special projects and free up tax dollars for important services, according to the Michigan Department of Treasury (Treasury).

Applications are now being accepted for the Financially Distressed Cities, Villages, and Townships (FDCVT) grant program. Municipalities interested in applying for an award must submit applications to the state Treasury Department by 11:59 p.m. on Friday, Oct. 20, 2017.

All cities, villages and townships experiencing at least one condition of “probable financial distress” as outlined in the Local Financial Stability and Choice Act are eligible to apply for up to $2 million. A total of $5.4 million in funding is available for Treasury to award through the FDCVT grant program for the 2018 fiscal year. 

Grant funding may be used to pay for specific projects or services that move a community toward financial stability. Preference will be given to applications from municipalities that meet one or more of the following criteria:

  • A financial emergency has been declared in the past 10 years.
  • An approved deficit elimination plan for the General Fund is currently in place.
  • Two or more conditions indicating “probable financial distress” currently exist.
  • The fund balance of the General Fund has been declining over the past five years and the fund balance is less than 3 percent of the General Fund revenues.

Due to requirements outlined under state law, school districts are not eligible for funds from this grant program.

For more information about the FDCVT grant program or to download an application, go to www.michigan.gov/revenuesharing.

 

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

Treasury Accepting Applications for Financially Distressed Community Grants

The Department of Treasury recently announced that the application period for the Financially Distressed Cities, Villages, and Townships $5 million grant program is now open.  According to Treasury’s announcement:

Municipalities experiencing financial struggles can apply for a grant from the Michigan Department of Treasury to help fund special projects and free up tax dollars for important services. Applications for the Financially Distressed Cities, Villages, and Townships (FDCVT) grant program are now available. Municipalities interested in applying for an award must submit applications to the Department of Treasury by 11:59 p.m. on Monday, October 17, 2016. All cities, villages, and townships, experiencing at least one condition of “probable financial distress” as outlined in Public Act 436 of 2012, the Local Financial Stability and Choice Act*, are eligible to apply for up to $2 million. A total of $5 million in funding is available for Treasury to award through the FDCVT grant program this year. Grant funding may be used to pay for specific projects, services, or strategies that move the city, village, or township toward financial stability. Preference will be given to applicants from local units in which: A financial emergency has been declared in the past ten years; or, An approved Deficit Elimination Plan for the General Fund is currently in place; or, Two or more conditions indicating “probable financial distress” currently exist; or, The fund balance of the General Fund has been declining over the past five years and the fund balance is less than 3% of the General Fund Revenues.

Please follow this link for more information about FDCVT grants and for copies of the grant application.

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

December 1st Revenue Sharing Deadline Reminder

The Michigan Department of Treasury distributed the following reminder to all Cities, Villages and Townships this week about the upcoming December 1st deadline to submit the necessary documentation to receive statutory revenue sharing payments.

Official CVTRS Detailed Guidance FY 16 Letter

Subject: CVTRS/CIP DEADLINE – DECEMBER 1, 2015

This is a reminder that the due date for the City, Village, and Township Revenue Sharing (CVTRS) and County Incentive Program (CIP) is 11:59 pm on December 1, 2015.

In order to meet the deadline and qualify for the full CVTRS/CIP payment amount available, a local unit must submit to Treasury the documents listed below and make the documents available for public viewing in the city, village, township, or county clerk’s office or post them on a publicly accessible Internet site.

The required documents are:

  1. Signed Certification of Accountability and Transparency (form #4886)
  2. Citizen’s Guide (minimum General Fund)
  3. Performance Dashboard
  4. Debt Service Report (all funds)
  5. Projected Budget Report (minimum General Fund)

Please visit http://www.michigan.gov/treasury/0,4679,7-121-1751_2197_58826_62393_62406—,00.html for the required certification form and available templates.

If Treasury does not receive ALL of the above documents by 11:59 pm on December 1, 2015, your local unit will not qualify for the full CVTRS/CIP payment amount available.

Submissions can be emailed to TreasRevenueSharing@michigan.gov, faxed to 517-335-3298, or mailed to:

Michigan Department of Treasury

Office of Revenue and Tax Analysis

P.O. Box 30722

Lansing MI  48909

Email Submissions

If the required documentation is submitted via email, please take note of the information below:

  1. Prior to submitting the documentation:
    1. DOUBLE CHECK THE EMAIL ADDRESS to ensure that the address has been typed correctly.  If the email address is typed incorrectly, Treasury will not receive the submission and the local unit will not qualify for a payment.
    2. DOUBLE CHECK ATTACHMENTS to ensure that all the required documentation has been attached.  If all the documentation is not submitted (by the due date), the local unit will not qualify.
  1. After Submitting the documentation:
    1. Within two business days of Treasury receiving your email, YOU WILL RECEIVE AN EMAIL REPLY stating the submission has been received.  Starting November 23, 2015, Treasury will provide the email reply within four business hours.
    2. IF A RESPONSE EMAIL IS NOT RECEIVED from Treasury within the above time frames, contact Treasury at 517-373-2697 to verify that the submission has been received.
    3. Upon a review of the documentation at a future date, Treasury may request additional information to ensure a local unit’s compliance with 2015 Public Act 84.

For reference, attached is Treasury’s CVTRS Detailed Guidance for cities, villages, and townships and Treasury’s CIP Detailed Guidance for counties.

If you have any questions, please feel free to contact our office at 517-373-2697.

Thank you.

Office of Revenue and Tax Analysis

Michigan Department of Treasury

517-373-2697

 

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

Michigan Legislature Tees Up Budget Deal; Revenue Sharing Numbers Reviewed

Following the overall budget deal struck last week between the Governor and Legislative leaders, the House and Senate this week set conference committees in motion drafting the particulars of that deal. Nearly all of the conference reports have been approved and sent to the floors of the House and Senate. The conference report on the General Government budget, which includes Revenue Sharing (SB 122), was approved yesterday and awaits final action.

The conferees agreed to maintain statutory revenue sharing payments for all cities, villages and townships at current year levels for FY16, with $243 million in ongoing spending and $5.8 million in one-time funding that goes to support payments to 100 townships that would otherwise not have received a statutory revenue sharing payment.

In a new twist, the conference report includes a boilerplate section that calls for a legislative workgroup to be formed that will explore revisions to the distribution formula for statutory revenue sharing. Click here to view a spreadsheet showing anticipated revenue sharing dollars by community.

In talking with the Senate chairman, details on the structure and timeline for this new workgroup have not been developed yet, but will include input from the League.  The contents of each individual budget conference report will be combined into one, omnibus budget bill (SB 133), that will likely be voted on next week.  Please contact our office if you are interested in the estimated payment information for your community.

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

Media Throughout Michigan Report on Great Revenue Sharing Heist Study by Michigan Municipal League

League members talk with the media at a press event about revenue sharing at EVIP March 18 in Lansing.

Media from all parts of Michigan have reported on the Michigan Municipal League’s revenue sharing study that showed the state has diverted $6.2 billion from local communities in the last decade. The League released the study last week during our Capital Conference and sent press releases to dozens of media outlets.

Here is a sampling of some of the articles done so far:
Michgian cities slam state for holding onto $6.2 billion: Detroit News

Michigan’s $6.2 billion raid on revenue sharing? See how much local communities lost since 2003: mlive.com statewide

Wyandotte’s deficit tied to decline in state revenue sharing: The News Heard, the Voice of Downriver

Revenue sharing could have kept Lincoln Park out of financial crisis, officials say: The News Heard, the Voice of Downriver

Macomb cities lost more than $100 million due to state cuts: Macomb Daily Tribune

Michigan Municipal League says Legislature diverted funding; Midland loses $10.9 million: Midland Daily News

Our View: State turning corner on revenue sharing: Midland Daily News editorial

Report says Flint lost out on nearly $55 million in revenue sharing in last decade: Flint Journal/mlive.com

Six things Flint could have paid for with $55 million in revenue sharing: Flint Journal/mlive.com

Michigan Cities contend lost $6.2 billion in lost revenue: Metro Times, Detroit

The League study showed that communities from Marquette to St. Joseph and everywhere in between are among the Michigan cities and villages that lost hundreds of millions of dollars in statutory revenue sharing over the past decade because the governor and Legislature diverted the funds to the state budget.

If the funds had not been diverted by state lawmakers, the fiscal crises facing many local Michigan communities today might not be so severe.

Statutory revenue sharing funds are earmarked by state law for local communities across Michigan to support essential local services including police and fire, water systems, road maintenance, parks and libraries, and more. The funds represent a percentage of sales tax revenues collected at the local levels. Instead, between 2003 and 2013, the governor and Legislature diverted $6.2 billion in statutory revenue sharing from local communities to plug holes in the state budget and to pay for tax cuts for businesses.

Much of this data was also included in the March/April 2014 edition of the Michigan Municipal League Review magazine for an article titled, “The Great Revenue Sharing Heist” by Anthony Minghine, associate executive director and chief operations officer for the Michigan Municipal League. The article is available at mml.org: http://www.mml.org/advocacy/great-revenue-sharing-heist.html.

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

EVIP Continues to be Problematic for Communities, says League’s Samantha Harkins on MIRS Podcast

Samantha Harkins

The Michigan Municipal League’s Samantha Harkins was a guest today (Feb. 10, 2014) on the MIRSnews.com podcast and covered an array of topics including road funding, the importance of public transit, an update on the personal property tax issue and proposed changes Gov. Snyder wants to make to the Economic Vitality Incentive Program (EVIP). She even discusses Willie Wonka and the Eagles and Don Henley. This is a must listen for League members wanting to hear how the League is fighting for our communities in Lansing. Great job Samantha.

Her part starts around the 8:30 minute mark in the 20-minute weekly podcast. Listen here. Read more from Samantha Harkins and League staff on our legislative blog. Many of the topics Harkins discussed tie into the League’s placemaking message and how having vibrant communities will lead to having a better Michigan. Learn more about placemaking at placemaking.mml.org.

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