Public hearing on EGLE state revolving funds definition scheduled for Sept. 8

The Department of Environment, Great Lakes, and Energy (EGLE) has scheduled a public hearing on Thurs., Sept. 8, 3:30 to 5:30 p.m., to hear public comments on new, draft definitions and scoring criteria proposals prior to finalization.

Recently enacted Public Act 132 of 2022 changes the term “disadvantaged” community to “overburdened community,” adds the new term “significantly overburdened community,” and requires EGLE to update the definition with input from stakeholders and the public. In addition, the legislation requires EGLE to develop scoring criteria to prioritize projects for both the Clean Water State Revolving Fund and the Drinking Water State Revolving Fund programs. Online and in-person attendance options are available for the Sept. 8 hearing.

To attend via Zoom, join online at the time of the meeting at https://bit.ly/3PR9QkG. If you would like to join by phone only, please use the following phone number: 636-651-3142, and use conference code 374288.

The in-person meeting location is Constitution Hall, ConCon A&B Conference Rooms, 525 West Allegan Street, Lansing, Michigan 48933. Please bring picture ID and check-in at the security desk at the main entrance located on the east side of the building. Masks are welcome but not required.

The hearing record will remain open to receive written comments until Sept. 15, 2022, at 5 p.m. Written comments may be directed via email to Kimber Frantz at FrantzK@Michigan.gov.

For more information on the new, draft definitions and scoring criteria, please visit the State Revolving Fund – Overburdened Community Definition and Scoring Criteria Development page at Michigan.gov/EGLE.

Individuals needing language assistance or accommodations for effective participation at the hearing should contact Kimber Frantz at FrantzK@Michigan.gov or 517-284-5035 in advance of the meeting to request language, mobility, visual, hearing, translation, and/or other assistance.

Herasanna Richards is a legislative associate handling energy, environmental, elections, and external municipal services for the League. She can be reached at hrichards@mml.org or 517-908-0309.

IIJA Funding Resource: Capitalizing on New Federal Funding Opportunities: A Webinar Series

The Sustainable States Network (SSN) and the American Council for an Energy-Efficient Economy (ACEEE) have organized three upcoming webinars that will explore key opportunities for cities to act on climate change through energy efficiency investments—including by capitalizing on new federal funding. You can learn more about these webinars and register through the links below:  

New Federal Funding Opportunities for Affordable Housing Retrofits                                                                              

Thursday, August 4 | 2:00pm-3:00pm ET 

This ACEEE webinar will explore how state and local governments can leverage a historic influx of federal funding to increase investments in retrofits for low- and moderate-income housing. Two jurisdictions that are already taking these steps will share early insights. 

Taking Advantage of Federal Funds: Local Energy Efficiency Policies and Programs to Consider 

Tuesday, September 20 | 2:00pm-3:00pm ET 

This ACEEE/SSN webinar will showcase leading energy efficiency programs from across the country that communities can learn from and replicate as they prepare to leverage new federal funding opportunities. 

ACEEE’s Self-Scoring Tool: Results from the Community Energy Challenge                                      

Thursday, September 29 | 1:00pm-2:00pm ET  

This ACEEE/SSN webinar will show communities how they can use ACEEE’s latest self-scoring tool to measure their energy efficiency and clean energy progress, and highlight results from the most recent cohort of SSN’s Community Energy Challenge. 

SSN Webinar Poster

Herasanna Richards is a legislative associate handling energy, environmental, elections, and external municipal services for the League. She can be reached at hrichards@mml.org or 517-908-0309.

Michigan Transportation Asset Management Council Seeks Communities for Awards

Passing this along from our friends at the Michigan Transportation Asset Management Council:

On behalf of the Michigan Transportation Asset Management Council (TAMC) we are seeking agencies and individuals to recognize for their efforts in asset management and best practices. Detailed instructions and information for the submittals and past award recipients are linked below.

The TAMC has established the Organizational Achievement Award to acknowledge those agencies that have incorporated the principles of asset management and adopted an asset management plan to help guide their investment decisions. In addition, the TAMC Awards Program provides agencies around the state with excellent examples to establish their own programs and practices. All Public Act 51 road agencies are eligible to be nominated for this award.

Additionally, the TAMC wants to recognize individuals providing outstanding support of Asset Management and the TAMC. Nominees for the Carmine Palombo Individual Achievement Award can include elected officials (state or local), support staff from state agencies, regional and metropolitan planning organizations, county road agencies, local units of government, the education community or other individuals involved in promoting asset management in Michigan.

Award submittals are due Friday, July 1, 2022, to Gloria Strong, TAMC Departmental Technician, strongg@michigan.gov. Please refer to the criteria and instructions documents (click here) to assist you with your nominations. Questions can also be directed to Gloria at (517) 402-3599. Pending the amount of award nominations, recognition may be part of the 2022 TAMC conference programs.

The awards will be presented at the TAMC Asset Management Conference, celebrating our 20 years, September 28, 2022 at the Great Wolf Lodge in Traverse City, MI.

Thank you in advance for all your efforts.

MML Foundation to Launch New MI Water Navigator Helpdesk at News Conference; CapCon Workshop

The Michigan Municipal League Foundation is launching a new program for MML member and non-member communities next week and everyone is invited. Our new MI Water Navigator Helpdesk gets launched next week with a virtual news conference at 10 a.m. Monday, March 14, 2022.

And then, during our CapCon Tuesday morning we will have a three-hour workshop to work with our members in using this new service.

We welcome our members to watch the virtual news conference by registering (for free) at this link. The news conference will include comments from MML Legislative Associate Herasanna Richards, the Foundation’s Grace Carey, past MML Board President Nathan Triplett, and former MML board member Mark Vanderpool, city manager for Sterling Heights.

MI Water Navigator is a resource for navigating Michigan drinking water infrastructure funding opportunities. Whether you are a public municipal water system or a private water utility, the MI Water Navigator Helpdesk and toolkit will provide direction in your search for state and federal funding.

This resource is provided by the Michigan Municipal League Foundation and is funded by the Charles Stewart Mott Foundation and the Joyce Foundation.

And there is still time to register for CapCon and attend the March 15 water navigator workshop at cc.mml.org.

Here is the news media advisory we sent out today about the upcoming press conference for this new program:

Michigan Municipal League Foundation Launches Water Navigator Service to Help Communities with Water Infrastructure Funding Opportunities

WHAT
The Michigan Municipal League Foundation will hold a news conference to launch its new MI Water Navigator program, a new online toolkit to help communities pursue drinking water infrastructure funding opportunities. The program is available to both municipal water systems and private utilities to help them search for and obtain state and federal water infrastructure funding. The MI Water Navigator will also offer a webinar series, how-to application guides, and a platform for engaging with the MI Water Navigator technical assistance team.

WHY
Michigan ranks last in the nation for accessing State Revolving Fund (SRF) loans and grants for drinking water and water conservation. Improving the state’s water infrastructure will improve access to clean, accessible, and affordable water, which cuts across the MML’s pillars of Community Wealth Building. The MML Foundation’s mission of Community Wealth Building is based upon the idea that thriving and equitable communities are built upon these essential pillars – Infrastructure, Environment and Sustainability, Public Health, Arts and Culture, Lifelong Learning, and Financial Security. These pillars are bound together by Trust and Belonging.

WHO
• Nathan Triplett, Michigan Municipal League Foundation board member, former mayor of East Lansing
• Herasanna Richards, Michigan Municipal League Legislative Associate
• Mark Vanderpool, Sterling Heights City Manager
• Grace Carey, Michigan Municipal League Foundation Program Officer
• Vicki Putala, OHM Advisors, Director of Environmental & Water Resources

WHERE
Zoom News Conference / Webinar. Register in advance here: https://us02web.zoom.us/webinar/register/WN_YsI4rR5pT8mWT5HHsTY9jw

WHEN
10:00 a.m. Monday, March 14

For additional information, contact Matt Bach, Michigan Municipal League assistant director of strategic communications, at mbach@mml.org and (810) 874-1073.

Governor’s Budget Proposal Includes Major Investments in Local Government

The Whitmer Administration unveiled its proposed Executive Budget Recommendation on Wednesday for the upcoming 2022-23 Fiscal Year that starts October 1st.

The budget recommendation totals $74.1 billion, including a historic $14.3 billion in General Fund dollars, compared to the current year’s $11.7 billion…the highest GF budget proposal in recent history.  Over 40% of the budget proposal consists of federal funds from the state’s American Rescue Plan Act funding and expected Infrastructure Investment and Jobs Act revenues.  The proposal still leaves over $2 billion of General Fund balance available for additional spending discussions, along with a still to be determined amount of unallocated ARPA and IIJA funds that will be the subject of ongoing supplemental appropriation negotiations outside of this budget process.

The budget presentation made before a joint session of the House and Senate Appropriations committees provided specifics on the Governor’s previously announced spending priorities, with spending focused on education, public sector employment recruitment, retention and HERO pay, elimination of the state income tax on retirement income ($107 million cost in 2023 and $495 million per year by 2025), and increasing the state’s Earned Income Tax Credit from 6% of the federal credit up to 20% (costing $262 million in FY23).  Briefing papers on many of the Administration’s key initiatives can be viewed here.

Major spending proposals that support local governments were prevalent throughout the budget proposal, with the centerpiece being a 10% increase in statutory revenue sharing.  This $26.6 million increase would be the largest single-year increase in recent history and would result in the highest funding amount since 2011, but still not fully recovered from the $100 million Executive Order cuts enacted that year.  The recommended increase would be split 5% into the ongoing base and 5% would be labeled as “one-time”.  In addition to the revenue sharing increase, the Governor responded to the League’s request for assistance in holding communities harmless from any clawback in the Constitutional, per capital revenue sharing payments due to the delay in receiving their 2020 census population numbers.  The Governor has proposed spending $50 million to ensure that no city, village, or township with a declining population will see additional reductions from a clawback of overpayments because of the delay in the release of census numbers and Treasury paying communities for the past 14 months based upon their 2010 population numbers.  The budget proposal recommends this $50 million be appropriated in the current budget year to avoid any per capita payment adjustments scheduled to occur in April of this year.  The Treasury budget recommendation also includes a few other spending items that support local governments:

  • $40 million for Local Community Transition Support (general fund) to provide aid to communities that have experienced significant economic impacts from the departure or disinvestment of large-scale employers and their workforces from their communities. Funding will support various economic or community development activities, including rehabilitation, demolition, or adaptive re-use of vacant buildings, various support and recruitment and retention activities for new or existing small businesses, local community business incubator programs, and outdoor space enhancement projects.
  • $50 million for First Responder Retention Payments (general fund and ARP – state fiscal recovery funds) to state and local law enforcement and public safety personnel who have performed hazardous work related to the COVID-19 pandemic. Funding is recommended in a fiscal year 2022 supplemental and includes $30 million general fund and $20 million federal American Rescue Plan resources announced as part of the Governor’s proposed MI Safe Communities framework.
  • $20.6 million Increase for Existing Recreational Marihuana Grants (restricted funds) to counties and municipalities in which a marihuana store or microbusiness is located. These payments are required under the Michigan Regulation and Taxation of Marihuana Act, Initiated Law 1 of 2018, and are based on the most recent recreational marihuana revenue projections and total $50.6 million for fiscal year 2023.

Significant, community-focused investment programs can be found throughout the remainder of the proposed budget, many of which match up with Municipal League funding priorities and specific funding requests, including major investments in infrastructure.  The League issued this media statement on Wednesday’s presentation, recognizing the numerous areas of the budget that focus on investing in our communities.

The following spending proposals will be of particular interest to municipalities and were been pulled from the FY23 Executive Budget Book that was released Wednesday:

Environment, Great Lakes, & Energy –

  • $251.7 million for Water Infrastructure Projects ($36.4 million general fund) to provide loans, grants, and direct funding to local communities for water infrastructure. These projects are supported through the federal Infrastructure Investment and Jobs Act (IIJA) and include service line replacements, water treatment facility upgrades, and stormwater management systems.
  • $69.3 million for Contaminated Site Clean-up ($20.2 million general fund) to provide resources for revitalizing and redeveloping sites of historic and industrial contamination in the state. This investment will also support a rapid response fund to deploy resources for sites outside the scope of normal contamination clean-up efforts.
  • $48 million for Community Support for Lead Line Replacement and Water Treatment System Upgrades (general fund). This program will provide grants for technical, managerial, and financial assistance to communities throughout the state to ensure that projects are implemented effectively and efficiently. Grants will prioritize disadvantaged communities.
  • $34.3 million for Highwater Infrastructure Grants (general fund) to provide local communities with grants for high water level and resiliency planning and infrastructure needs. This program continues past efforts to ensure that communities are provided the resources needed to address issues like coastal erosion, flooding, transportation networks, urban heat, and storm water management.
  • $23 million for Energy Efficiency Grants (federal fund) to provide grants and financial support to local communities and businesses for the implementation of energy efficiency infrastructure and policies. This program is supported with federal IIJA funds and will provide community support through grants, state-backed loans, and direct project implementation.

Labor & Economic Opportunity –

  • $200 million for the Michigan Regional Empowerment Program (general fund) to support the growth, development, diversification, and resiliency of regional economies through a competitive grant program. Grants will support projects that leverage partnerships and make investments that provide long-term sustainable economic benefit to the local region and the state as a whole. Grants may be used to support a wide range of transformational projects including those focused on affordable housing, broadband, manufacturing, education and workforce development, and other areas specific to local regional needs.
  • $11 million for the Attainable Homeownership and Apprenticeship Program (general fund) to support the acquisition, renovation, and resale of properties in both urban and rural land bank inventories, increasing access to attainable housing while expanding apprenticeship training opportunities by requiring paid apprentices on each home renovation site.
  • $10 million for the MI Local Heroes Marketing Campaign (general fund) to conduct a comprehensive statewide marketing campaign that highlights the benefits of public sector employment and attracts more individuals to critical jobs like nurses, teachers, police and firefighters.
  • $750,000 for the Resilient Lakeshore Heritage Grants Program (federal funds) for a grant program that will support the rehabilitation of qualifying properties in rural communities along the Great Lakes.

Transportation –

  • In total, the Governor’s fiscal year 2023 recommended budget reflects a $1.1 billion increase for transportation over the current fiscal year. This includes $578 million of projected new funding under the federal Infrastructure Investment and Jobs Act (IIJA), as well as $481 million of state restricted and general fund support for transportation. An accompanying fiscal year 2022 supplemental request also includes $475.7 million of new federal IIJA authorization. Over the next five years, Michigan is projected to receive more than $2.6 billion in new federal IIJA transportation funding, as compared to the prior federal authorization act.
  • An additional $488.6 million for Road and Bridge Construction to support state and local roads, highways, and bridges, over $94 million will go towards an estimated increase for local roads and bridges. The total increase reflects an additional $377.8 million of federal IIJA funding, with the remaining $110.8 million attributable to net increases in baseline state restricted revenues.
  • $150 million for Road Improvement Projects that are economically critical, carry high traffic volumes, increase the useful life of key local roads, or will be completed in conjunction with important bridge replacement projects to minimize the impact to motorists and businesses.
  • $66 million to make State Transportation Infrastructure more resilient to future flooding events by adding reliable generator backup power to all 164 state-owned pumping stations. This investment is intended to address the significant freeway flooding events that have impacted southeast Michigan communities and disrupted important economic corridors in that region during recent storm events.
  • $60 million to support Rail Grade Separation Projects at key congested local rail crossings that impede efficient movement of commercial and passenger vehicles and jeopardize timely public safety response in an emergency.
  • The Governor’s recommendation includes $100.8 million of new support for local and intercity transit and $31.5 million for passenger and freight rail improvements. An accompanying fiscal year 2022 supplemental request also adds $10 million in federal grant funding to support construction of a new Detroit passenger rail and intercity bus terminal.

While seeing these items identified by the Governor is encouraging, this is just the first step in the state budget process.  Now that the budget has been presented, the Legislature will begin their deliberation of the proposals and will craft their individual versions of a Fiscal Year 2023 budget.  Details of the Legislature’s view on these recommendations will become evident over the course of the coming weeks, with initial drafts from each chamber expected around the Spring Break/Easter timeline, followed by refinements that will take place after the May Consensus Revenue Estimating Conference, with a target to finish negotiations by the end of June.

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

White House Releases New Infrastructure Law Guidebook/Webinars

The White House and US Department of Transportation shared the following information yesterday on the recently signed Bipartisan Infrastructure Law.  The new law combined a reauthorization of federal transportation funding with significant other infrastructure investments in water, broadband, electric vehicles and charging, cybersecurity, and the nation’s energy grid.  This $1.2 trillion, 5-year spending plan is now starting to take shape and funds are expected to begin flowing to the states this Spring.

Monday’s communication offers stakeholders a detailed guidebook on the new law (BUILDING A BETTER AMERICA_FINAL) and registration option for two separate webinars later this week (see below).

According to the communication from the White House/USDOT…

The Bipartisan Infrastructure Law, signed in mid-November, is historic in its size – the largest ever investments in broadband, rail and transit, clean energy, and water, just to name a few – as well as the breadth of programs and sectors included in the law.  Implementing the largest investment in our nation’s infrastructure in generations will require deep partnership alongside Members of Congress, Governors, Mayors, Tribal leaders, local officials, and community members.

Today, the White House is releasing a Bipartisan Infrastructure Law guidebook to provide information so you know what to apply for, who to contact, and how to get ready to rebuild. This guidebook is a roadmap to the funding available under the law, as well as an explanatory document that shows direct federal spending at the program level. We will continue to update this resource online at Build.gov.  Our goal is for you—communities all across America—to take full advantage of the opportunity this new funding presents.

To help stakeholders better understand how to use this document and hear the latest updates on the Bipartisan Infrastructure Law implementation, we are hosting two webinars over the next week:

Resources:

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

Governor Whitmer Delivers Her Fourth State of the State Address

Governor Whitmer delivered her 2022 State of the State speech virtually on Wednesday evening, highlighting her accomplishments from the past year and focusing on a few key goals for the coming, election year.

While there were no specific programs targeted at local governments, the Governor did focus on investments in infrastructure and the need to continue to pursue additional investments with the state’s available American Rescue Plan and Bipartisan Infrastructure Law allotments.

During the speech, the Governor announced five new initiatives:

  • Eliminating the income tax liability for public pensions
  • Increasing the state’s Earned Income Tax Credit from the current 6% of the federal credit to 20%
  • A training a recruitment program to attract more mental health professionals to Michigan
  • Capping insulin prices
  • Funding a state level rebate for electric vehicle purchases, on top of the federal rebate, and an additional rebate for at-home charging infrastructure

Many of the details surrounding these announcements and the potential budget impacts will be released in the coming weeks and as part of the early February release of the Governor’s Fiscal Year 2022-23 Executive 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.

FEMA’s BRIC Direct Technical Assistance (DTA) Program Application Due Friday 1/28

National League of Cities and Serve MI City is reminding members of FEMA’s BRIC Direct Technical Assistance (DTA) program designed to help smaller communities and those with less staff capacity with free advice and support. Applications to apply for assistance are due January 28, 2022 at 3:00 PM EST.

FEMA’s BRIC DTA program was designed for eligible communities who need support in developing resilience capacity and are interested in applying for BRIC and other resilience grant funding.  A Letter of Interest for the BRIC DTA program is due on January 28, 2022. This free technical assistance will last for up to 36 months.

What communities qualify for FEMA’s free technical assistance?
  • All cities, towns, townships, counties, special district governments
  • Tribal governments, including both federally recognized tribal nations and non-federally recognized tribal governments
  • A hazard mitigation plan is not a prerequisite to apply.
What communities should apply?
  • Those with a desire to increase their capacity and capability to conduct mitigation activities
  • Communities looking to increase resilience to natural hazards
  • Those that need help identifying projects that will reduce risk
  • Communities that need support developing or submitting a BRIC application
The application process is quick and straightforward: 

Write a 1 or 2-page Letter of Interest that includes the following:

  • Community point of contact name, position, email, address and phone number
  • Description of the community’s need for Direct Technical Assistance
  • Description of the community’s capacity to assist in the DTA activity, including committed staff
  • Objectives and timelines, including the duration (up to 36 months) of technical assistance
  • Community point of contact information including name, position, email, address and phone

Letters of Interest (1-2 pages) are due by January 28, 2022 at 3:00 PM EST.  

Email your Letter of Interest to FEMA-BRICDirectTechnicalAssistance@fema.dhs.gov.

To learn more about this free FEMA program, please contact FEMA-BRICDirectTechnicalAssistance@fema.dhs.gov.

For more information on BRIC funding, view MML and FEMA’s presentation from April 1, 2021 on BRIC and the video of the webinar here.

Herasanna Richards is a legislative associate handling energy, environmental, elections, and external municipal services for the League. She can be reached at hrichards@mml.org or 517-908-0309.

 

Legislative Session Reaches Mid-Point

The Michigan House and Senate wrapped up their work last week for the calendar year as the mid-point of the current 2021-22 legislative session.  Following the holidays, the legislature will return to session on Wednesday, January 12, 2022 to resume action.  All legislation introduced during 2021 remains eligible for action through the end of 2022.

Year-end legislative activity centered on the book closing supplemental (HB 4398) and the passage of the Economic Development package (SB 769,771 and HB 4082, 5603) that the small taxpayer PPT expansion was tied into (HB 5351).

The book closing supplemental appropriated nearly $850 million between Fiscal Years 20-21 and 21-22 across a variety of state departments.  Of main interest to League members was the appropriation of $140 million in federal emergency rental assistance funds for rental and utility assistance to preserve housing and avoid eviction, almost $200 million in non-discretionary ARPA funds through MDOT for airports and transit agencies with nearly $170 million of that appropriation aimed at the state’s primary airports, and $140 million of FEMA funds to the Michigan State Police for emergency and disaster response and mitigation.

The Economic Development package (SOAR – Strategic Outreach and Attraction Reserve) was signed by the Governor this week and has been outlined as follows:

  • $1 billion for two new MEDC job creation funds to use for cash incentives for large corporations and construction site improvements
  • $409 million in grants for businesses affected by the COVID-19 shut-downs

https://www.bridgemi.com/michigan-government/michigan-legislature-passes-1b-incentive-plan-big-projects-gm

The inclusion of the expansion of the Small Taxpayer Exemption component of the Personal Property Tax reimbursement system was outlined in our Inside 208 blog following the late night action last week and was also discussed on the MIRS News Monday Podcast.  In the Governor and Legislature’s final move to secure the necessary votes for passage of this piece in the Senate, they added $75 million into the funding bill for the SOAR package (Senate Bill 85) to cover the first year’s cost of the expansion (which doesn’t kick in until 2023). The Senate Majority Leader and numerous other legislators made public comments committing to securing a long term reimbursement mechanism and discussions on this replacement will be a top priority for the League in the new year.

Three different supplemental budget proposals also saw action by one chamber during recent weeks.  House Bills 5522, 5523 and SB 565 provide some insights into legislative ARPA spending priorities around public safety, public health investments, and water and sewer infrastructure. These bills will likely form the basis for ongoing ARPA and state GF/GP fund balance spending negotiations that will continue in earnest in the new year.  Our team is heavily engaged, through our coalition efforts, in shaping the spending proposals within these bills and developing additional spending plans outside of these subject areas.

Other year-end legislative action can be headlined for League members by what did not happen.  No further action took place on HB 4722, the short-term rental zoning preemption or on SB 429, the aggregate mining preemption bill.  The legislature also failed to act on an extension for continuing to allow remote meetings under the Open Meetings Act.  As of December 31, 2021, local emergency declarations will no longer be allowed for remote meetings of public bodies under the OMA.  The marijuana caregiver package we are supporting was also held up, pending additional negotiations.

The Legislature did finalize action on Senate Bill 698, that extends the freeze on situs for assessment of equipment being used by remote workers and House Bills 5502-5506 which shifts the personal property tax business filing to a one-time filing with Treasury.  The state-funded cancer presumption for workers compensation was expanded to include part-time, paid on-call, and volunteer firefighters in House Bill 4172. The cost of this expansion will be supported by deposits to the state’s First Responder Presumed Coverage Fund from the state’s internet wagering proceeds.  A five-year extension of the sunset for the Transformational Brownfield program was also sent to the Governor prior to last week’s recess in Senate Bill 671 with League support.

A local fiscal “early warning” proposal was introduced right before the holiday recess.  Senate Bill 780 was introduced alongside a full repeal of the state’s Emergency Manager law.  SB 779 simply repeals all of Act 436 of 2012. The two bills are not tie-barred together but we expect the legislature to begin deliberation on the two proposals in the new year. In discussions with the Department of Treasury and the bill sponsor prior to introduction, we expressed grave concerns with the original approaches outlined in SB 780 and proposed numerous revisions.  We continue to work with the Department and the bill sponsor to ensure local autonomy in fiscal decisions and raise awareness of the broad range of factors outside of a local unit’s control that could contribute to a community’s financial situation and ensure that those factors are acknowledged by any legislation on this topic.

Also introduced last week was the reform of the disabled veteran property tax exemption that the League has been requesting.  Senate Bills 783784 were introduced on December 8th and the proposal would shift the burden of the veteran property tax exemption to the state’s income tax through the Homestead Property Tax credit program.  These bills have 12 bi-partisan Senate sponsors and we will be aggressively advocating for passage of these bills in the coming year.  League members are encouraged to contact their legislators to express support for these bills.

Following their return in January, the legislature will resume action on the remaining ARPA and state budget fund balance spending plans as they prepare for the Governor’s next executive budget recommendation and State of the State speech in late January/early February.

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

US DOT Details New Infrastructure Act Impact on Michigan

The US Department of Transportation released an analysis today of how the recently signed Infrastructure Investment and Jobs Act would impact the State of Michigan for the transportation-specific programs outlined in that bill.

The $1.2 trillion IIJA included the necessary transportation reauthorization of the former FAST Act and is estimated to offer Michigan a more than 30% increase in our annual federal road and bridge formula allocation.  Michigan will receive approximately $7.8 billion over the next five years from the transportation reauthorization components of the IIJA.  The 30% increase will bring in nearly $500 million in additional road and bridge funding annually to the state, not including any of the $100-200 billion of competitive grant opportunities that Michigan will be able to apply for.

The attached outline from US DOT also highlights the formula funding that Michigan is expected to receive in program areas like motor vehicle, commercial vehicle, bicyclist, and pedestrian safety, public transportation, electric vehicle infrastructure, Amtrak passenger rail expansions and freight rail safety and improvements, and airport infrastructure investments.

Competitive grant opportunities will also be available to state and local governments:

Safe Streets for All ($6B, new) – This program will provide funding directly to local and tribal governments to support their efforts to advance “vision zero” plans and other
improvements to reduce crashes and fatalities, especially for cyclists and pedestrians.
Rebuilding American Infrastructure with Sustainability and Equity (RAISE)
Grants ($15B, expanded) – RAISE grants support surface transportation projects of
local and/or regional significance.
Infrastructure for Rebuilding America (INFRA) Grants ($14B, expanded) – INFRA
grants will offer needed aid to freight infrastructure by providing funding to state and
local government for projects of regional or national significance. The BIL also raises the cap on multimodal projects to 30% of program funds.
Federal Transit Administration (FTA) Low and No Emission Bus Programs ($5.6B,expanded) – BIL expands this competitive program which provides funding to state andlocal governmental authorities for the purchase or lease of zero-emission and low-emission transit buses as well as acquisition, construction, and leasing of required
supporting facilities.
FTA Buses + Bus Facilities Competitive Program ($2.0B, expanded) – This program provides competitive funding to states and direct recipients to replace, rehabilitate, and purchase buses and related equipment and to construct bus-related facilities including technological changes or innovations to modify low or no emission vehicles or facilities.
Capital Investment Grants (CIG) Program ($23B, expanded) – The BIL guarantees
$8 billion, and authorizes $15 billion more in future appropriations, to invest in new highcapacity transit projects communities choose to build.
Federal Aviation Administration (FAA) Terminal Program ($5B, new) – This
discretionary grant program will provide funding for airport terminal development and
other landside projects.
MEGA Projects ($15B, new) – This new National Infrastructure Project Assistance
grant program will support multi-modal, multi-jurisdictional projects of national or
regional significance.
Promoting Resilient Operations for Transformative, Efficient, and Cost-saving
Transportation (PROTECT) Program ($8.7B, new) – PROTECT will provide $7.3
billion in formula funding to states and $1.4 billion in competitive grants to eligible
entities to increase the resilience of our transportation system. This includes funding for
evacuation routes, coastal resilience, making existing infrastructure more resilient, or
efforts to move infrastructure to nearby locations not continuously impacted by extreme
weather and natural disasters.
Port Infrastructure Development Program ($2.25B, expanded) – BIL will increase
investment in America’s coastal ports and inland waterways, helping to improve the
supply chain and enhancing the resilience of our shipping industry. BIL overall doubles
the level of investment in port infrastructure and waterways, helping strengthen our
supply chain and reduce pollution.
5307 Ferry Program ($150M, existing) – BIL retains the $30 million per year passenger ferry program for ferries that serve urbanized areas.
Electric or Low Emitting Ferry Program ($500M, new) – This competitive grant
program will support the transition of passenger ferries to low or zero emission
technologies.
Rural Ferry Program ($2B, new) – This competitive grant program will ensure that
basic essential ferry service continues to be provided to rural areas by providing funds to States to support this service.
Federal Highway Administration (FHWA) competitive grants for nationally
significant bridges and other bridges ($12.5B, new) – This new competitive grant
program will assist state, local, federal, and tribal entities in rehabilitating or replacing
bridges, including culverts. Large projects and bundling of smaller bridge projects will be
eligible for funding.
FTA All Station Accessibility Program ($1.75B, new) – This competitive grant
program will provide funding to legacy transit and commuter rail authorities to upgrade
existing stations to meet or exceed accessibility standards under the Americans with
Disabilities Act.
Charging and fueling infrastructure discretionary grants (Up to $2.5B, new) – This
discretionary grant program will provide up to $2.5 billion in funding to provide
convenient charging where people live, work, and shop.
Reconnecting Communities Pilot Program ($1B, new) – This new competitive
program will provide dedicated funding to state, local, MPO, and tribal governments for
planning, design, demolition, and reconstruction of street grids, parks, or other
infrastructure.
FHWA Nationally Significant Federal Lands and Tribal Projects ($1.5B, expanded)
– This discretionary program provides funding for the construction, reconstruction, and
rehabilitation of nationally-significant projects within, adjacent to, or accessing Federal
and tribal lands. BIL amends this program to allow smaller projects to qualify for funding
and allows 100% federal share for tribal projects.
Strengthening Mobility and Revolutionizing Transportation (SMART) Grant
Program ($1B, new) – The SMART Grant program will be a programmed competition
that will deliver competitive grants to states, local governments, and tribes for projects
that improve transportation safety and efficiency.

Dollars from this new act are expected to begin flowing to states and local governments in the first half of 2022.

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