Governor Presents Final Budget Recommendation

Governor Snyder presented the FY2019 state budget to a joint hearing of the House and Senate Appropriations committees Wednesday morning.  Matching his tone following January’s consensus revenue estimating conference and his comments about spending restraint during the recent State of the State address, the budget didn’t offer many surprises.

The key announcement for League members centered on his proposal for revenue sharing.

Constitutional revenue sharing payments are expected to grow, based upon sales tax growth, to the tune of 3.1% ($24.7 M) in the coming budget.

The Governor did not recommend a continuation of the 2.5% statutory revenue sharing increase that we were able to secure in the current budget, taking this $243 million appropriation back down to a level that has been flat over the previous four years.

Instead of increasing statutory revenue sharing through the traditional budget process, the Governor is building off of his comments from last year’s budget on the distribution of excess Personal Property Tax reimbursements.  The Governor has called for a simpler and fairer approach to the distribution of those excess reimbursements and emphasized the need to continue providing that support to local units of government.

His recommendation would maintain the apportion of PPT reimbursement revenue going to each type of local unit of government and have that revenue instead distributed by the Local Community Stabilization Authority to communities as an additional revenue sharing payment.  This would amount to a $73 million revenue sharing distribution to cities and villages.

Additionally, the Governor is proposing to use the excess reimbursement dollars that had gone to libraries and miscellaneous authorities to preserve and increase fire protection grant funding to local units with qualifying state or higher education facilities.

Other line items or programs of interest to local units of government included:

Adding $175M of one-time General Fund to go with the $150M already scheduled to go into roads as part of the previous road funding pkg

Adding $2M to continue and expand Project Rising Tide

Building in the $79M from his previously proposed solid waste tipping fee increase to support brownfield site contamination cleanups, water and beach monitoring and other environmental programs that had previously been supported by the former Clean MI Initiative bond proceeds.

The budget will now be reviewed by each chamber over the coming weeks, with initial action expected prior to the Spring/Easter Break.

For more details on today’s budget announcement –

PowerPoint Presentation – (slide 24 relates to revenue sharing/PPT excess)

Issue Papers –  pages 31-32 detail the revenue sharing/PPT proposal

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

Governor Continues Week of Policy Announcements

Following Governor Snyder’s eighth and final State of the State speech last week, his team has immediately moved into announcement mode, capitalizing on the initiatives he announced during his January 23rd speech to the Legislature.

A new announcement is planned for each day this week, in advance of next Wednesday’s (Feb 7th) FY 2018-19 state budget presentation.

On Monday, the Governor signed Executive Order 2018-2 in Port Huron, promoting the expansion of broadband internet service.  This E.O. creates a new state-level commission, the Michigan Consortium of Advanced Networks, to advise the Governor on the state’s broadband infrastructure needs, identifying gaps in coverage and capacity and recommending solutions for state and private sector investment to bridge those gaps.

On Tuesday, the Governor announced his Renew MI plan as a replacement for the former Clean Michigan Initiative bond program.  This $675 million bond program, approved by the state’s voters in the late ’90s, is nearly tapped of remaining bond capacity, so the Governor is proposing an increase in landfill tipping fees as a replacement for that bond revenue to avoid adding to the state’s long-term debt liabilities.  This new proposal would increase the tipping fee from the current .36/ton to $4.75/ton as a way to bring in an estimated $79 million per year to clean up contaminated sites, invest in recycling programming, assist with local solid waste management planning, and support ongoing water quality monitoring efforts at beaches, lakes, and rivers.

Wednesday’s announcement centers around efforts to curb invasive species, like Asian Carp from entering the Great Lakes.  On Thursday, the Governor is expected to announce his plans for investment in the state’s water infrastructure systems.  Finally, on Friday he is scheduled to detail his specific proposals for improving the state’s recycling efforts.

League staff have participated in briefings on these announcements and are reviewing the available information and awaiting the forthcoming announcements to determine the various impacts on local governments.  We will share additional details as the remaining initiatives are announced later this week.

Please contact our office if you have any questions.

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

Financial Dashboard Grant Details Released by Treasury

Local units of government that purchase financial forecasting and transparency reporting tools through one of the State of Michigan’s approved vendors, Munetrix or Forecast5, can now apply for a partial reimbursement.

All cities, villages, townships and counties that enter into an agreement to purchase these web-based tools through Munetrix or Forecast5, on or before December 1, 2017, are eligible for a partial reimbursement under the Financial Data Analytic Tool Reimbursement Program. A total of $500,000 in funding is available for reimbursements during the State’s 2018 fiscal year.

Cities, villages, townships and counties interested in applying for a partial reimbursement must submit their Financial Data Analytic Tool Reimbursement Request (Form 5568) to the Michigan Department of Treasury no later than December 1, 2017.  Attached is a copy of Form 5568 and an informational page regarding the program.

To learn more about the program or to download a reimbursement form, go to  http://www.michigan.gov/treasury/0,4679,7-121-1751_2197-451435–,00.html

Revenue Sharing and Grants Division

Michigan Department of Treasury

517-373-2697

TreasRevenueSharing@michigan.gov

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

$500 million federal TIGER program accepting grant applications for road projects; due October 16

The federal government has announced it is now accepting applications for the FY 2017 Transportation Investment Generating Economic Recovery (TIGER) program, with $500 million in available funds for infrastructure projects including roads.

The application deadline for the 2017 TIGER solicitation is October 16.

The Department of Transportation will hold public two webinars:

  • September 13 and 19, 2 – 4 p.m., on “How to Compete for TIGER Grants;” and
  • September 18, 2 – 4 p.m., on “Preparing a Benefit Cost Analysis.”

To register for the free webinars, please visit the TIGER Webinar Series webpage.

Additional information about the TIGER program is available at the TIGER website. Questions may be directed to Ryan Brumfield, 202.366.2639, ryan.brumfield@dot.gov, in the TIGER program office or to FHWA TIGER program staff Sam Snead, 202.366.0857, sam.snead@dot.gov.

John LaMacchia is the Assistant Director of State and Federal Affairs for the League handling transportation, infrastructure, energy and environment issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

MDOT kicking off 2018 Local Grade Crossing Surface Program; applications due October 27

MDOT provides funding assistance for highway-railroad grade crossing surface improvements on local roads. This annual program offers 60% funding for eligible projects, with railroads responsible for the remaining 40% of costs. Projects are selected in compliance with criteria established by state law.

After a successful launch in 2017, 2018 Local Grade Crossing Surface Program announcement letters are being mailed to all railroads and road agencies with active highway-railroad grade crossings within Michigan.

The 2018 Call for Projects opened in early September, with program letters containing additional details mailed to road authorities and railroads. Application materials for road agencies are now available, with a deadline for submittals of October 27, 2017. Project selections are expected to be confirmed by late November, with authorizations scheduled to be issued in time for the 2018 construction season. The 2017 Program had over 130 applications resulting in more than 70 approved projects to improve local crossing surfaces.

2018 Application
Sample Surface Program Railroad Authority Letter
Sample Surface Program Road Authority Letter

Questions about the program should be directed to Kristian Foondle, MDOT Local Grade Crossing Program Manager, at foondlek@michigan.gov. Click here for a list of railroad contacts

John LaMacchia is the Assistant Director of State and Federal Affairs for the League handling transportation, infrastructure, energy and environment issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

 

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.

MSP Announces Hazard Mitigation Assistance Grant Opportunity

Attached is the official Notice of Funds Availability (NOFA) announcement for the open application period for two Federal Emergency Management Agency (FEMA) mitigation grant programs for FY 2017.  This funding announcement includes the Flood Mitigation Assistance (FMA) Program and the Pre-Disaster Mitigation (PDM) Program.  Both of these FEMA hazard mitigation grant programs are now under one umbrella known as Hazard Mitigation Assistance (HMA).  FEMA has unified all of the mitigation grant programs under one set of guidance documents.  The two guidance documents (linked below) are dated 2015 because there have been no changes to the guidance since last year.

The information contained in the announcement below include limited time lines and requires a timely response.

Deadlines:
· NOIs must be submitted to the MSP/EMHSD by no later than September 1, 2017.
· eGrants applications (initial draft) are due to the MSP/EMHSD for review by October 13, 2017.
· After review and revision, eGrants applications are due to FEMA by November 14, 2017.

HMA funds can be used for the implementation of hazard mitigation projects as well as the development or update of local hazard mitigation plans.  Many of the FEMA approved local mitigation plans across Michigan will be expiring within the next two years.  The available HMA funding offers an excellent opportunity for communities to use grant dollars to update their local hazard mitigation plans.

IB 17-01 – HMA Funds Available
HMA_Guidance_022715_508
HMA_Addendum_022715_508

Joel Pepper
Asst. State Hazard Mitigation Officer
Emergency Management and Homeland Security Division
Michigan State Police
TX: 517-284-3955

Physical Address:
7150 Harris Drive
Dimondale, Michigan 48821

Mailing Address:
PO Box #30634
Lansing, Michigan  48909

 

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