LaMacchia: Infrastructure Issues in Flint Symptom of Larger Problem

The League's John LaMacchia (center, right) and fellow panelists.

The League’s John LaMacchia (center, right) and fellow panelists.

What’s happening in Flint, Detroit and other cities is a symptom of a larger problem. A problem where cities in Michigan are only allowed to fall with the economy but not to prosper as the economy grows. And it’s only going to get worse if we don’t change the way the nation invests in communities.

This was a key message by the Michigan Municipal League’s John LaMacchia when speaking Thursday in Washington D.C. as part of Infrastructure Week 2016. The Infrastructure Week celebration organized by the National League of Cities and its partners is to raise awareness about the nation’s infrastructure needs. Cities construct and maintain the majority of our nation’s infrastructure and depend on a solid infrastructure network to provide safe and healthy communities, and grow their local economies.

The League's John LaMacchia is in Washington D.C. this week for the National League of Cities Infrastructure Week celebration. As part of his work, LaMacchia (center left) met with U.S. Rep. Dan Kildee (right).

The League’s John LaMacchia is in Washington D.C. this week for the National League of Cities Infrastructure Week celebration. As part of his work, LaMacchia (center left) met with U.S. Rep. Dan Kildee (right).

LaMacchia, assistant director of state affairs for the League, spoke as part of a panel discussion on “Securing Our Water Future: 21st Century Solutions for 21st Century Cities”. Other panelists were Council Member Matt Zone, City of Cleveland, Ohio, and National League of Cities 1st Vice President; Council Member Ron Nirenberg, City of San Antonio, Texas, and Chair, National League of Cities Energy and Environment Committee; Commissioner Heather Repenning, President Pro Tempore, Los Angeles Board of Public Works; Tyrone Jue, Senior Advisor on Environment to Mayor Ed Lee, City of San Francisco, California; Jonathan Trutt, Executive Director, West Coast Infrastructure Exchange; and Clarence E. Anthony, CEO and Executive Director, National League of Cities.

LaMacchia discussed the Flint water crisis and explained how the Flint issue is part of a much larger infrastructure problem in communities statewide.

Some of his key points included:

  • Flint Mayor Karen Weaver and Gov. Rick Snyder agree Flint’s lead-tainted service lines need to be removed. But it will take at least $55 million to replace all the lead-tainted lines. Money for water infrastructure has been put into appropriations bills in the Michigan Legislature and U.S. Congress, but the bills are still making their way through those legislative bodies.
  • The service lines are just part of the problem. The rest of Flint’s water system, from aging water mains to other infrastructure, needs to be totally replaced. The city’s water system loses a large percentage of the water to leaks, one reason Flint has some of the highest water rates in the country. Again, the City of Flint will need help from the state and federal governments to modernize its water infrastructure, a process that is expected to cost of hundreds of millions of dollars.
  • When we look at Michigan as a whole we have neglected to properly invest, maintain and right size our infrastructure.
    The league's John LaMacchia speaks on a panel during Infrastructure Week in Washington D.C. May 19, 2016.

    The League’s John LaMacchia speaks on a panel during Infrastructure Week in Washington D.C. May 19, 2016.

  • For nearly 30 years Michigan has been about 10 million people yet we have increased the amount of infrastructure in the state by roughly 50% and giving little thought to how we would maintain both the old and new infrastructure.
  • Time and time again we have built new water and sewer plants without capitalizing on the existing capacity of a nearby system.
  • This not only speaks to how we have been inefficient in managing infrastructure in Michigan but also how we have disinvested in our communities in general.
  • Why cities are important: Our goal at the Michigan Municipal League is to make Michigan communities places people want to be. Places that can attract a talented work force and businesses. Having placemaking strategies in all communities is important. But it’s hard to even think about creating great places when you’re fighting every day not to drown. How can you attract businesses and a work force if your roads are crumbling, bridges are in disrepair and you’re communities have slashed the number of police officers, firefighters, public works employees and more?
  • The numbers show that some states – particularly Michigan – do not understand the importance of cities as economic drivers. If they did they would be investing in cities. But unfortunately they are disinvesting in cities.
  • According to U.S. Census data all but one state showed growth in municipal general revenue between 2002 and 2012. View chart here.
  • Many want to blame this on a single state recession but the numbers tell a different story.
  • Why is this the case in Michigan – property values decrease in 2008 crash and the Michigan Constitution limits their ability to recover, PLUS revenue sharing to the tune of $7.5 billion over the last decade plus.

LaMacchia concluded explaining Michigan’s system for funding municipalities is fundamentally broken and unless it gets fixed we’re going to see more situations like what’s happening in Flint and Detroit occur in other communities.

Also earlier this week, NLC released a new report called, Paying for Local Infrastructure in a New Era of Federalism. Read a blog about the report by the League’s Summer Minnick.

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

Committee Approves Dark Store Fix – Contact Your Legislator!

Underutilized Mall in Wyoming (2) dark storesThe House Tax Policy committee today reported House Bill 5578 with a bi-partisan 11-2 vote.  Following multiple committee hearings spanning the past six months, today’s positive committee vote had been anticipated, based upon the amount of work done by the sponsor and local government advocates.

As the committee vice-chair, Rep. Dave Maturen was able to draw upon his extensive appraisal background to educate the members of the committee on the dark store problem and develop the language in the proposal, in conjunction with help from the League and numerous local government organizations and officials.

The language in HB 5578 provides very simple guidance to the Michigan Tax Tribunal that aligns directly with the existing, accepted methods of valuation that all assessors are trained to follow. This proactive acknowledgement of the three standard methods of valuation, coupled with language that restricts the Tribunal from accepting self-imposed deed restrictions as a true sales comparison are designed to restore balance to the decisions of the Tribunal and ensure that these decisions are based on the best data available.

We need your help to ensure that this bill will be voted on by the full House! The Michigan Chamber of Commerce and the Michigan Retailers Association are aggressively opposing this bill and contacting Representatives and Senators in an attempt to block further action on the bill. They claim that the only problem is uneducated local assessors who are over-assessing these large retailers.

Their direct message to legislators is; “Local governments are trying to legitimize their over-assessments and lack of persuasive evidence before the MTT by making scapegoats out of job providers who have successfully challenged their over-assessments and the MTT.”  Your involvement and personal contact with your Representative and Senator are the only way to counteract these attacks and ensure that this critical legislation moves before the Legislature recesses for the summer.  Please contact your State Representative and Senator today to urge their support for HB 5578!

For further information about the bill and the previous committee testimony, please review these Inside 208 articles – “New Dark Stores Solution…”  and “Michigan Municipal League Members Testify…“.  Or visit the League’s Dark Stores Information Page.

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

 

League’s John LaMacchia in Washington D.C. Talking Infrastructure

The League's John LaMacchia.

The League’s John LaMacchia.

The Michigan Municipal League’s John LaMacchia will be in Washington D.C. Thursday to participate in Infrastructure Week 2016. The celebration organized by the National League of Cities and its partners is to raise awareness about the nation’s infrastructure needs. Cities construct and maintain the majority of our nation’s infrastructure and depend on a solid infrastructure network to provide safe and healthy communities, and grow their local economies.

LaMacchia, assistant director of state affairs for the League, will speak 2:30-4 p.m. Thursday, May 19, as part of a panel discussion on “Securing Our Water Future: 21st Century Solutions for 21st Century Cities”. The panel discussion will be live-streamed on the NLC’s Facebook page.

Other panelists are Council Member Matt Zone, City of Cleveland, Ohio, and National League of Cities 1st Vice President; Council Member Ron Nirenberg, City of San Antonio, Texas, and Chair, National League of Cities Energy and Environment Committee; Commissioner Heather Repenning, President Pro Tempore, Los Angeles Board of Public Works; Tyrone Jue, Senior Advisor on Environment to Mayor Ed Lee, City of San Francisco, California; Jonathan Trutt, Executive Director, West Coast Infrastructure Exchange; and Clarence E. Anthony, CEO and Executive Director, National League of Cities.

LaMacchia will discuss the Flint water crisis but he’ll explain how the Flint issue is part of a much larger infrastructure problem in communities statewide.

Also earlier this week, NLC released a new report called, Paying for Local Infrastructure in a New Era of Federalism. Declining funding, increasing mandates and misaligned priorities at the federal and states levels have put responsibility for infrastructure on local governments. But what ability do cities have to take up this call? The authority of cities to meaningfully address growing infrastructure challenges is bound by levers authorized to them by their states. The study finds that cities are limited in the number and scope of tools they are authorized to use, and that access to these tools is highly uneven in states across the country. Read a blog about the report by the League’s Summer Minnick.

View the report here: http://www.nlc.org/find-city-solutions/city-solutions-and-applied-research/infrastructure/local-infrastructure-funding-report

View the full infrastructure week schedule here: http://www.nlc.org/influence-federal-policy/infrastructure-week-2016

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

Revenue Sharing Budgets Positioned for Initial Action; Senate Cuts Statutory by 1.5%

One of the many charts showing how Michigan has disinvested in its cities more than any other state in the state. That tiny red line you see is Michigan.

One of the many charts showing how Michigan has disinvested in its cities more than any other state in the state. That tiny red line you see is Michigan. A 2016-17 Senate budget plan would cut statutory revenue sharing to communities even more. Learn more at SaveMiCity.org

The Michigan House and Senate Appropriations committees made their opening moves on the state budget this week by reporting the full budget bills to the floors of their respective chambers. Following expected floor action on these bills in the coming week or two, each chamber will review the other’s proposal and move toward a final budget deal sometime in early June.

Both proposals continue the current practice of ignoring the fiscal needs of local government, failing to make revenue sharing and the larger issue of municipal finance a budget priority. Without a renewed focus and commitment by the Governor and Legislature, Michigan will continue to occupy last place nationally in our treatment of local government. Learn about the League’s municipal finance initiative at SaveMiCity.org. View how much money your community has lost in revenue sharing here.

The House committee reported an omnibus budget bill, House Bill 5294, to the floor which includes funding for revenue sharing. The House proposal maintains current-year funding for revenue sharing, only deviating from the Governor’s original recommendation by maintaining the $5.8 million that the Governor would have removed for approximately 100 townships that hadn’t received revenue sharing previously.

The Senate committee, on the other hand, moved Senate Bill 788 to the Senate floor with significant changes to the Governor’s proposal for revenue sharing. Statutory revenue sharing would see a 1.5% reduction ($3.85 million) in the Senate version, with the dollars from that reduction being shifted to cover a proposed local match requirement for the purchase of new voting equipment. The League urges you to contact your Senator, asking them to join us in opposition to this approach.

In the Governor’s original budget proposal, the effort to replace existing voting equipment statewide was supported by $10 million in General Fund and $5 million in requested (unidentified) local match. These dollars would be coupled with remaining federal Help America Vote Act funds and dollars appropriated for this purpose in the current budget year. The purchase of new voting equipment has been championed by the County and Municipal Clerks Associations and the Secretary of State’s office, but the call for a local match requirement had not been voiced prior to this year’s budget.

The proposal to accommodate the Governor’s local match request in the Senate version raises serious concerns for the Michigan Municipal League and member communities, even beyond the further erosion of an already devastated statutory revenue sharing base.

  • All cities, villages, townships and counties would benefit from the purchase of new voting equipment, but the local match requirement would only be paid by those cities and villages and few townships that receive a statutory payment. ***Counties and townships that do not receive non-Constitutional revenue sharing payments would pay no local match.  
  • By paying the local match only out of the statutory revenue sharing line, there is no correlation to the actual match requirement for equipment being purchased within each community. In a sample comparing similarly sized communities, one with 19 voting precincts would forgo only about $1,500 in revenue sharing, while another community with only 12 polling places would lose more than $22,000 … and this does not account for the more than 1,000 local government units that would pay nothing in local match!
  • County statutory payments, already funded at 100%, would receive a 2% increase ($4.3 million) in this proposal. Again, without any requirement for a local match for voting equipment purchases by a county.
  • This match requirement would be deducted during the FY 16-17 budget year, yet voting equipment would not be received by any local government until at least 2017 and delivery would like be phased in over two to three years.

Comments have been made that under this proposal, every local unit will receive at least what they received during  the current budget year even with the 1.5% base reduction, but this statement assumes that there will be growth in sales tax revenue driving higher Constitutional revenue sharing payments. Early indications from the most recent Senate Fiscal Agency monthly revenue report reveal that it is unlikely that the state will even meet its already reduced sales tax estimate for the current year, let alone meet the overly optimistic 3.9% growth estimate for the coming year. It is more probable that Constitutional revenue sharing payments will be flat for a third year in a row, if not reduced at some point over the next year.

It is expected that the Senate’s revenue sharing plan will be voted on by the full chamber next week. Please remember to contact your Senator and urge them to begin restoring the cuts of the past decade and reform the way local governments are funded. They should start by rejecting the committee proposal.

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

New “Dark Store” Solution Focuses on Michigan Tax Tribunal Process

A big box "dark store" in southeast Michigan.

A big box “dark store” in southeast Michigan.

State Representative Dave Maturen (R-Vicksburg) introduced House Bill 5578 this week (http://legislature.mi.gov/doc.aspx?2016-HB-5578) with the support of the Michigan Municipal League and other local government groups, to address the ongoing crisis of “dark store” property tax appeals.

The legislation proposed by Rep. Maturen, was developed following a workgroup process which he chaired and involved participation by the League and numerous local assessors, appraisers and other property valuation experts. The proposal would require Michigan Tax Tribunal members to equitably apply universally accepted appraisal standards when deciding larger property tax appeal cases. These standards will provide consistency in determining highest and best use as part of the property valuation process. The legislation would also restrict the consideration of comparable sales that have deed restrictions if the deed restrictions are imposed by the seller to keep competitors of the seller from the  market and  the deed restrictions provide no benefit to the property but only to the seller’s business.

A hearing on the bill is scheduled for 10:30 a.m. Wednesday (April 27) before the House Tax Policy committee. League members are encouraged to contact the legislators on the Tax Policy committee at this link and your own Representative and Senator to explain the importance of this issue and to urge their support for HB 5578. Use the League’s Action Center to contact your lawmakers.

Visit the League’s information page on the Dark Stores issue here: http://www.mml.org/advocacy/dark-stores/

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

Michigan Investment in Municipalities Worst in Nation – By Far, Census Data Shows

The League's Anthony Minghine discusses revenue sharing during the news conference Monday afternoon.

The League’s Anthony Minghine discusses revenue sharing during the news conference Monday afternoon.

How bad is the municipal finance situation in Michigan? It’s the worse in the nation over the last decade, according to new data unveiled at a Michigan Municipal League news conference Monday, March 21.

And the culprit? State policies and politicians who have ignored the needs of cities, in the process damaging the state’s overall economy.

U.S. Census data shows Michigan is the ONLY state in the nation where municipal revenues overall declined from 2002-12 (the most recent information available).

Across the state, municipal revenues were down by 8.63 percent over that period, led by a 56 percent reduction in state revenue sharing.

Meanwhile, overall state revenues increased 39 percent. The numbers show that the state balanced its budget on the backs of cities.

The successful news conference was covered by multiple news outlets and also was live-streamed.

savemicity-large-websticker-72dpiView articles by the Detroit News, Gongwer, the Associated Press, Crain’s Detroit Business, the Detroit Free Press, MIRS News Service and WDET radio. The Free Press report is a column by Nancy Kaffer and does a particularly good job explaining the plight of cities.

You can see all the details at SaveMICity.org, a new web site the Michigan Municipal League has set up to provide information about the severity of the municipal finance problem facing Michigan, and offer solutions over time.

The website also has a new data base showing the revenue sharing dollar amounts diverted from every community in the state from 2002 to 2015.

More than $7.5 billion has been diverted statewide in that time period. Look up your community’s information here.

One of the many charts showing how Michigan has disinvested in its cities more than any other state in the state. That tiny red line you see is Michigan.

One of the many charts showing how Michigan has disinvested in its cities more than any other state in the state. That tiny red line you see is Michigan.

“Our cities are facing desperate conditions,” said League CEO and Executive Director Dan Gilmartin.

And he pointed to “fundamentally flawed” state policies providing for municipal finance, including massive cuts in revenue sharing since 2002, limits on assessment increases, but none on decreases, and other punitive state policy decisions.

Across America, the statewide average increase in municipal revenues was more than 40 percent.

The state with the next worse municipal finance revenue growth was Ohio, and there revenue grew by 25.7 percent. Around the nation, the average increase was more than 40 percent.

League Associate Executive Director and COO Tony Minghine has been leading a task force of League members and staff in examining the situation and brainstorming solutions. Minghine explained at the news conference that state policies have led to “strategic disinvestment” by cities, as they struggle to balance budgets in the face of declining revenues. He asked rhetorically whether Flint might have been able to avoid its man-made water contamination catastrophe if it had received the $63 million in revenue sharing withheld by the state since 2002 as a part of state budget balancing.

Minghine said more revenue is just one part of the League’s plan to be laid out in coming months, to try to address the pressing situation. He said cities will ask for legislative approval to address cost issues and look at the structure of local services in ways that are today prohibited by state law.

Another chart showing how Michigan has disinvested in its cities more than any other state in the state.

Another chart showing how Michigan has disinvested in its cities more than any other state in the state.

Wayne Mayor Susan Rowe showed how the situation is facing her city, which has seen revenue sharing cut by a cumulative $7.8 million since 2002 and has lost millions more in tax base due to decisions made at the state level regarding assessment practices. Wayne has laid off half its police force and still will run out of money in 2017. “We need the state to keep its promises to cities,” she said.

Mitch Bean of the Michigan Economic Consulting Group minced no words in putting the current plight of many cities on state policies. He pointed out that the combination of the Headlee Amendment to the state constitution and Proposal A allow assessments to drop during hard times, but limit their growth during good times. As a result, even a relatively well-off community like Farmington Hills, which saw assessments drop 30 percent from 2008 to 2012, will likely not see its tax base return to 2008 levels until 2025.

Why should state policymakers care about what they are doing to cities? Shanna Draheim of Public Sector Consultants, which has prepared a new report “Creating 21st Century Communities, Making the Economic Case for Place” said the result of these state decisions is that Michigan cities are lagging successful communities in attracting new talent. And that means the state is lagging in that vital category. You can see it in state personal income data, where Michigan has gone from a top 15 state to a bottom 15 state in per capita income since 2000.

Speakers during Monday's Michigan Municipal League press conference in Lansing. From left, Mitch Bean, Wayne Mayor Susan Rowe, Eric Lupher, Anthony Minghine and Dan Gilmartin.

Speakers during Monday’s Michigan Municipal League press conference in Lansing. From left, Mitch Bean, Wayne Mayor Susan Rowe, Eric Lupher, Anthony Minghine and Dan Gilmartin.

“States that have invested in cities are doing the best. They are growing economically. Michigan has the opportunity to do the same,” said Draheim.

But not unless we make some major changes to the state’s municipal finance policies, in a way that will let cities create the safe, walkable, fun locations that people want to move to. Until that happens, all of Michigan will suffer as the state’s economy sputters and fails to provide the public goods and economic opportunities that benefit all of us, whether we live in a big city, or rural township.

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

League’s Dan Gilmartin Talks Flint Water Crisis, Infrastructure Issues at Congressional Briefing

Michigan Municipal League CEO and Executive Director Dan Gilmartin participates in a Congressional Briefing on the Flint Water Crisis and infrastructure issues in Washington D.C. Wednesday.

Michigan Municipal League CEO and Executive Director Dan Gilmartin participates in a Congressional Briefing on the Flint Water Crisis and infrastructure issues in Washington D.C. Wednesday.

WASHINGTON, D.C. – Michigan Municipal League CEO and Executive Director Dan Gilmartin and fellow municipal leaders from across the nation called for a partnership between cities, states and the federal government to improve the country’s ailing infrastructure.

Gilmartin participated in a panel discussion at the Congressional Capitol Briefing earlier today (March 9, 2016) in Washington D.C. Gilmartin and the panel discussed national infrastructure issues and the Flint water crisis. Other scheduled panelists were Mayor Mark Stodola, of Little Rock, Arkansas; Councilmember Greg Evans, of Eugene Oregon; and Councilmember Andy Huckaba, of Lenexa, Kansas.

The panel also discussed whether federal policies are keeping pace with local efforts to reevaluate and reconfigure infrastructure for the next generation. More than 200 members of Congress and congressional staff attended the event at the Capitol Visitors Center Auditorium. The briefing is part of the National League of Cities annual Congressional City Conference concluding today.

In response to the Flint water crisis, the NLC on Tuesday announced a resolution that declared that the nation’s cities stand united in support of Flint. The resolution also included a call to Congress and the Administration to resolve the Flint Water Crisis. View the resolution here.

Here is an excerpt of the press statement about the resolution:

NLC is also calling on Congress and the administration to support robust funding for all water infrastructure mechanisms, including the Clean Water and Drinking Water State Revolving Loan Fund programs and the Water Infrastructure Finance and Innovation Act.

“The true tragedy is that the families-and children-impacted by the lead contamination in Flint will endure long-term education and mental health impacts,” said National League of Cities President Melodee Colbert-Kean, councilmember, Joplin, Mo.”The federal government must make a long-term commitment to help these families with the challenges that lie ahead.”

“The Flint drinking water crisis is unconscionable and unacceptable. Cites stand in solidarity with Flint, and the National League of Cities stands united with all American cities in the need to update our nation’s deteriorating water infrastructure,” saidNational League of Cities CEO and Executive Director Clarence E. Anthony. “We must invest in the infrastructure our communities depend on. We need the federal government to step up, and work with cities to make sure there will never again be another disaster like in Flint.”

“The tragic events in Flint are a wake-up call for the nation. Policies that ignore critical infrastructure needs result in a shameful disinvestment in our cities, leading to problems like we are experiencing in Flint,” said Dan Gilmartin, executive director and CEO of the Michigan Municipal League. “The Michigan state government has shorted communities $7 billion in revenue since 2000. The Flint crisis is the latest result of this ruinous policy.”

Access to clean drinking water is fundamental for the health and well-being of America’s communities and families. Lead-contaminated drinking water can have permanent and long-term effects on mental health, IQ and development, particularly in infants and children.

There is an urgent need to invest in our aging water infrastructure nationwide. The EPA estimates the U.S. water infrastructure capital needs to be approximately $720 billion over the next 20 years.

View the full press release about the resolution here.

NLC is the nation’s largest and most representative membership and advocacy organization for city officials, comprised of more than 19,000 cities, towns, and villages representing more than 218 million Americans.

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

Michigan Leaders Outline Three Local Government Priorities for U.S. Congress

U.S. Senator Debbie Stabenow, D-Michigan, speaks to Michigan Municipal League members in Washington D.C. during the NLC Congressional City Conference Tuesday, March 8, 2016.

U.S. Senator Debbie Stabenow, D-Michigan, speaks to Michigan Municipal League members in Washington D.C. during the NLC Congressional City Conference Tuesday, March 8, 2016.

A contingent of Michigan local government leaders were in Washington D.C. today to meet with U.S. Senators Debbie Stabenow and Gary Peters on legislative priorities for local communities. The three priorities requested were in the areas of municipal bond tax exemptions; marketplace fairness and online sales tax parity; and transportation funding among other issues.

The Michigan contingent in Washington D.C. this week for the National League of Cities Congressional Cities Conference 2016 was led by League President and Dearborn Mayor Jack O’Reilly; and League Vice President and Grand Rapids Mayor Rosalynn Bliss. Also attending were about 30 Michigan local government leaders, including Lansing Mayor Virg Bernero, Fenton Mayor Pro Tem and NLC Board Member Pat Lockwood; League CEO and Executive Director Dan Gilmartin and Summer Minnick, the League’s director of external relations and federal affairs.

The group has been meeting with various Congressional offices in the Capitol during their visit.

U.S. Senator Gary Peters meets with members of the Michigan Municipal League in Washington D.C. Tuesday, March 8, 2016.

U.S. Senator Gary Peters meets with members of the Michigan Municipal League in Washington D.C. Tuesday, March 8, 2016.

Here are details on the three priorities presented:

  1. Continuing to have municipal bonds be tax exempt. The tax exempt status of municipal bonds is critical to investment in infrastructure and provides tremendous economic growth in our communities. Eliminating that exemption would harm the future development of critical infrastructure projects and the jobs that come with them. The group encourages the Michigan Congressional Delegation to reject any attempt to eliminate or limit the traditional tax exemption for municipal bonds.
  2. Support marketplace fairness and online sales tax parity. Last Congressional session, the Senate passed the Marketplace Fairness Act with a vote of 69-27 in a bipartisan manner. This would have allowed state and local governments to collect an estimated $23 billion in online sales taxes, thus ending the online sales tax ‘break.’ However, to great disappointment, the House failed to act before session ended and we are starting over with new legislation this session. Gary Peters and Rosalynn Bliss edited-smallWhile exact estimates vary, Michigan stands to collect hundreds of millions of dollars from purchases that are avoiding the tax today. This session the bill, S. 698, is sponsored by Senator Enzi (R-WY) and has 22 co-sponsors. Within the past few weeks, Congress passed a bill to, among other things, prevent state and local governments from taxing internet access. As part of getting support needed for that bill, we understand that Senate leaders agreed to have a floor debate on the Marketplace Fairness bill later this year. By failing to pass legislation to bring tax equity in the retail industry, we are punishing those who have invested in our communities. Main Street retailers currently operate at a 5-10 percent disadvantage because they are required to collect sales taxes while remote sellers are not. And, we are leaving billions of dollars on the table which could be used to help invest in other areas for economic growth and/or reduce the deficit. Marketplace Fairness simply allows states and local governments to enforce existing sales tax laws. It does not create new taxes or increase existing ones. The Michigan contingent encourages passage of S. 698 for the benefit of our state and local economies.
    League President and Dearborn Mayor Jack O'Reilly and the League's Summer Minnick meet with U.S. Sen. Gary Peters.

    League President and Dearborn Mayor Jack O’Reilly and the League’s Summer Minnick meet with U.S. Sen. Gary Peters.

  3. Increase funding for transit and multi-modal transportation. Last year, Congress passed and President Obama signed the FAST (Fixing America’s Surface Transportation) Act, making the first long-term transportation bill in a decade official. There are some wins for local governments within the new law, which is worth approximately $305 billion. However, while there are many positives with the FAST Act, there are still investment needs in our transportation infrastructure. Our nation must continue to make greater investments in transit and multi-modal transportation in order to be competitive worldwide. The Michigan contingent hopes that in having a conversation about increased investment in transportation that we can focus more on all users of transportation networks and not primarily on vehicle users. While the FAST Act was extremely helpful to local communities by providing some stability in transportation funding, the Michigan leaders request Congress for a long-term mechanism for increased funding must still be debated. Additionally, increasing funds for transit and multi-modal transportation is critical to the future prosperity of our communities.

Posted by Matt Bach, the League’s director of media relations, on behalf of Summer Minnick League’s director of external relations and federal affairs. Summer can be reached at sminnick@mml.org.

League CEO Dan Gilmartin to Speak at Congressional Briefing on Flint Water Crisis

Dan Gilmartin is interviewed during the NLC Congressional City Conference in Washington D.C. this week.

Dan Gilmartin is interviewed during the NLC Congressional City Conference in Washington D.C. this week.

WASHINGTON, D.C. – Michigan Municipal League CEO and Executive Director Dan Gilmartin will participate in a Congressional Capitol Briefing Wednesday in Washington D.C. and talk about national infrastructure issues and the Flint water crisis.

Gilmartin will be part of a panel that will inform members of Congress about the most pressing infrastructure issues facing cities today. They also will delve into whether federal policies are keeping pace with local efforts to reevaluate and reconfigure infrastructure for the next generation. More than 200 members of Congress and congressional staff are expected to attend the event taking place 10 a.m. Wednesday, March 9, 2016, at the Capitol Visitors Center Auditorium. The briefing is part of the National League of Cities annual Congressional City Conference happening this week.

Through his work with communities, Gilmartin is recognized as a national leader in the fields of urban revitalization, placemaking, local government reform, and transportation policy.  Model D Media has referred to him as “an urban thinker with an eye for the small, oft-unnoticed changes that can make ‘places’ out of streets and buildings.”  Dan serves as a member of the Michigan Future, Inc. Leadership Council and on the Placemaking Leadership Council.

Joining Gilmartin on the panel will be other local experts who will discuss the water crisis in Flint and what it means for federal-state-local relations nation-wide; contrasting state and local perspectives on accountability in the transit funding process; competing public and private interests in the broadband market; and differing federal and local points of view on infrastructure finance.

Other speakers include Mayor Mark Stodola, of Little Rock, Arkansas; Councilmember Greg Evans, of Eugene Oregon; and Councilmember Andy Huckaba, of Lenexa, Kansas.

NLC is the nation’s largest and most representative membership and advocacy organization for city officials, comprised of more than 19,000 cities, towns, and villages representing more than 218 million Americans.

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

Michigan Local Government Leaders Discuss Flint Water Crisis with EPA in D.C.

Flint Vehicle City SignThe Flint water crisis was on top of mind for a group of Michigan local government leaders who had the opportunity to meet with U.S. Environmental Protection Agency (EPA) Administrator Gina McCarthy Monday afternoon (March 7, 2016) in Washington D.C.

A contingent of Michigan local government leaders met with the Administrator and Mark Rupp, EPA deputy associate administrator for intergovernmental relations, while in Washington D.C. this week for the National League of Cities Congressional Cities Conference 2016. The Michigan contingent was led by League President and Dearborn Mayor Jack O’Reilly; and League Vice President and Grand Rapids Mayor Rosalynn Bliss. Also attending the meeting were Carolyn Berndt, the NLC’s program director for sustainability and federal advocacy; Flint City Council President Kerry Nelson; Flint City Councilmember Jacqueline Poplar; League CEO and Executive Director Dan Gilmartin; Summer Minnick, the League’s director of external relations and federal affairs; and Chris Hackbarth, the League’s director of state affairs.

A birds-eye view from Flint's amazing Farmer's Market.

A birds-eye view from Flint’s amazing Farmer’s Market.

As most are well aware, Flint is in the international spotlight after elevated blood lead levels were discovered in some Flint children after its water source was switched to the Flint River. It had been purchasing Lake Huron water from the Detroit Water and Sewer System (DWSD). The decision to switch to the Flint River was made while the city was being run by a state-appointed emergency manager. At the time of the switch state regulators never required that the river water be treated to make it less corrosive, causing lead from plumbing and pipes to leach into the water supply. Even though the city reconnected to the DWSD in October, local and state officials continue to warn the public about the ongoing problem, are continuing to distribute bottled water and filters, and are encouraging pregnant women and young children against using the water unless it has been tested because lead levels in some cases continue to exceed what can be handled by the filters.

The Michigan Municipal League Board of Trustees is bringing together a group of technical experts, public works administrators, city managers and local elected officials to discuss response strategies in the wake of the Flint crisis. This task force will discuss the overall link between the current crisis in Flint and Michigan’s broken municipal finance system. They will also develop a response strategy for all of our members to utilize when a resident or the media has questions about the safety of drinking water in their community.

Downtown Flint during the 2013 Back to the Bricks event.

Downtown Flint during the 2013 Back to the Bricks event.

The League believes that the issues we have seen in Flint, Detroit and other cities is a symptom of a larger problem. This isn’t just about replacing the lead pipes in Flint and saying “all fixed.” Certainly there is an immediacy to that issue that needs to be addressed and solved. But even with new pipes there are much broader issues that needs to be addressed. We must fundamentally change the way government operates. We should allow local government to maximize their opportunities to invest in themselves, control costs, and provide services deserving of a 21 century community. Until we allow this flexibility Flint and many other cities in Michigan and across this country will be limited in their ability to provide the foundation for a strong, thriving, diverse community.

As part of the meeting with EPA and Michigan officials vowed to work together to assist Flint and ensure something like this never happens again.

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