Governor Signs State Budget – Local Governments See Numerous Wins

Update: View excel spreadsheet detailing bridge appropriations.

The conference reports on Senate Bill 82 and House Bill 4400 were signed yesterday, one week after the Legislature sent the record-setting state spending plan for Fiscal Year 2021-22 to her desk.  This budget, which takes effect October 1st,  appropriates nearly $70 billion overall with nearly $12 billion from General Fund revenues.  Additionally, the budget agreement includes another $2 billion in spending for the current FY20-21 fiscal year, mainly from available federal stimulus funds.  While most of the revenue for this budget agreement comes from available state revenues, about $700 million of American Rescue Plan Act funds were appropriated to fund additional programs and grants between the current and coming fiscal year.  Beyond this budget, the state still has nearly $5.8 billion in federal ARPA stimulus funds they have yet to appropriate, along with over $2 billion in General Fund balance they have available to spend.  A string of supplemental budget appropriation bills are expected over the course of this fall that will focus these remaining funds into specific topics like water and sewer and economic development.

While the budget agreement represents a significant development from a relationship standpoint between the Governor and Legislature, there were a few areas of disagreement in the budget boilerplate language that the Governor called out in her transmittal letter to the House and Senate, accompanying her signature on the plan.  While few spending lines appear to have been vetoed, the Governor did weigh in on approximately 40 different boilerplate directives that the Legislature had included in the overall budget.  Many of the items she declared “unenforceable” were tied back to concerns about the language violating the separation of powers between the Executive and Legislative branches and issues of amendment by reference.

While the Governor did declare unenforceable a series of references to mask orders related to child care facilities and local public health department orders, she did not weigh in on language that was inserted in every departmental budget section related to prohibiting COVID-19 vaccination requirements.  Language in the General Government budget, which controls spending by the Michigan Department of Treasury for items like revenue sharing (found in Section 225 on page 95 of the conference report) specifically states:

Sec. 225. (1) Any department, agency, board, commission, or public officer that receives funding under part 1 shall not:
(a) Require as a condition of accessing any facility or receiving services that an individual provide proof that he or she has received a COVID-19 vaccine except as provided by federal law or as a condition of receiving federal Medicare or Medicaid funding.
(b) Produce, develop, issue, or require a COVID-19 vaccine passport.
(c) Develop a database or make any existing database publicly available to access an individual’s COVID-19 vaccine status by any person, company, or governmental entity.
(d) Require as a condition of employment that an employee or official provide proof that he or she has received a COVID-19 vaccine. This subdivision does not apply to any hospital, congregate care facility, or other medical facility or any hospital, congregate care facility, or other medical facility operated by a local subdivision that receives federal Medicare or Medicaid funding.
(2) A department, agency, board, commission, or public officer may not subject any individual to any negative employment consequence, retaliation, or retribution because of that individual’s COVID-19 vaccine status.
(3) Subsection (1) does not prohibit any person, department, agency, board, commission, or public officer from transmitting proof of an individual’s COVID-19 vaccine status to any person, company, or governmental entity, so long as the individual provides affirmative consent.
(4) If a department, agency, board, commission, subdivision, or official or public officer is required to establish a vaccine policy due to a federal mandate, it must provide exemptions to any COVID-19 vaccine policy to the following individuals:
(a) An individual for whom a physician certifies that a COVID-19 vaccine is or may be detrimental to the individual’s health or is not appropriate.
(b) An individual who provides a written statement to the effect that the requirements of the COVID-19 vaccine policy cannot be met because of religious convictions or other consistently held objection to immunization.
(5) As used in this section, “public officer” means a person appointed by the governor or another executive department official or an elected or appointed official of this state or a political subdivision of this state.

The Governor’s transmittal letter interprets this language as providing “a roadmap for public employers to ensure their employees either receive the safe and effective COVID-19 vaccine or undergo regular testing to keep their co-workers safe. It also avoids any conflict with federal law, recognizing that federal authorities may issue vaccination requirements.”  This last comment appears to be in reference to forthcoming US Department of Labor rules that would align with the President’s recent call for vaccination or testing requirements for large employers.  This language is still being evaluated, especially in light of the potential costs related to implementing a stringent testing program at the local government level.

When reviewing the 964 page state operating budget document and the related 179 page House Fiscal Agency summary there are a number of key items of interest to municipalities and some significant victories for local government:

Overall, there is a $500 million deposit into the state’s Budget Stabilization Fund

Statutory Revenue Sharing will see a 2% ($5.2M) increase added into the overall base for cities, villages, and townships.

MML advocacy also helped to successfully restore $433,000 for more than 100 local units that were forced to return the federal CARES funding they received in August of 2020 as replacement for the state budget elimination of the August revenue sharing payment last year

Additionally in Treasury, the legislature approved the Governor’s recommendation for a $5M grant program to assist local governments with training and recruitment of first responders.  $3M was included to increase funding for the Michigan Infrastructure Council and $16M was added to fund infrastructure enhancements for E-911 systems.

Key funding items in other state departments:

Environment, Great Lakes, and Energy –

  • $15M for drinking water emergency assistance related to contamination response
  • $14.5M PFAS contamination remediation for water systems
  • $10M contaminated site clean up
  • $10M lead service line replacement and drinking water safety improvements in the City of  Benton Harbor
  • $19M for public and private dam safety and emergency response grants
  • While funding for the Governor’s MI Clean Water Plan was not included in this budget, it is expected that a larger water/sewer/storm water spending plan will be proposed from available ARPA funds this fall.

Labor and Economic Opportunity –

  • $100M of ARP funds for Community Revitalization Program and Placemaking grants to local units (identified blight and historic rehab projects in downtowns and outdoor dining and social district investments)
  • $1.5M increase in arts and culture grants funding
  • $3.5M increase in the Rural Jobs & Capital Investment Fund
  • $48M for 25 targeted local infrastructure grants across the state
  • $147M for 175 distinct local “enhancement grants” in communities statewide

Dept of Technology, Management, & Budget –

  • $20M for Cybersecurity

Dept of Natural Resources –

  • $7M of available federal funds for local recreation lands and facilities through Land & Water Conservation Fund payments

Michigan State Police –

  • $45M of federal funds for disaster and emergency response activities
  • $2M one-time increase to secondary road patrol grants
  • $500,000 to provide de-escalation training for law enforcement officers

MI Dept of Transportation –

  • $52.8M increase to the MTF for local road funding from full implementation of the $600M road plan income tax earmark
  • $12.8M restoration of last year’s cuts to the Transportation Economic Development Fund
  • $3M restoration of last year’s cuts to local bus transit operating support
  • $5.6M increase to state rail programs

Beyond the funding for the coming fiscal year, over $2 billion dollars was added to the current year (FY21) budget

  • $150M ARP deposit into the Unemployment Insurance Trust Fund
  • $168M from GF and Federal funds into the Water State Revolving Funds to fund loan demand for local water pollution control facilities
  • $121M of ARP funds for a Homeowners Assistance Fund within LEO that will support housing needs – includes utility payments and delinquent property taxes
  • $36.3M of federal funding for Low Income Household Water Assistance support through DHHS
  • A series of line items within MDOT from available December 2020 federal stimulus funds –
    • $196M local bridge bundling program – will allow for repair/replacement of 100 local bridges across Michigan. View excel spreadsheet detailing bridge appropriations.
    • $68M for Michigan’s 15 primary airports
    • $2M for Michigan’s general aviation airports
    • $65M for local road & bridge programs
    • $55M for local/rural transit agencies
    • $3.3M for the intercity bus program

With the signing of the budget, leaders will now turn their attention to appropriating the remaining American Rescue Plan dollars, available state General Fund revenues that continue to come in above revenue estimates, and any additional federal revenue that may result from the federal budget reconciliation process and/or the Infrastructure and Jobs Act discussion in Washington, DC.  The League’s State & Federal Affairs team will be extremely active in these upcoming budget discussions, pushing areas of priority for League members, like housing, community development, and additional support for local budgets and services.

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

Rochester Hills Wins 2021 Community Excellence Award Competition

Rochester Hills wins 2021 Michigan Municipal League Community Excellence Award.

Here’s a press release we just sent out to the media from our 2021 Michigan Municipal League Convention in Grand Rapids.

GRAND RAPIDS, Michigan – The community of Rochester Hills was honored with the Michigan Municipal League’s 2021 Community Excellence Award on Sept. 24 during the League’s annual Convention in Grand Rapids.

The peer-nominated Community Excellence Award (CEA), affectionately called “The Race for the Cup,” was started by the League in 2007 to recognize innovative solutions taking place in Michigan’s cities, villages, and urban townships. It’s the highest and most prestigious award bestowed on a community by the statewide League.

The winning community, which is selected through a ballot-box style vote of League members attending Convention, receives a large trophy cup that they get to have on display for the next year. Due to the COVID-19 pandemic, the last winner was the Uptown Bay City Project in 2019.

Rochester Hills, located in Oakland County with a population of about 76,000, won the CEA for its Reimaging, Reinventing, and Renewing Auburn Road project.

“We are honored to have been selected by our peers,” said Bryan Barnett, Mayor of Rochester Hills.  “We are really lucky to live in what we think is one of greatest communities in Michigan. To take this home for our staff and our residents is a huge honor for our community. I loved our project and was confident, but after I watched the other three finalists, I thought all of them had great presentations and projects. So, to win among such a strong field is a great honor. A huge congratulations to all the finalists.”

After decades of discussion, Rochester Hills engaged in deliberate planning to transform the city’s aging Auburn Road corridor into a safe and attractive place for vehicles and pedestrians with the goal of creating a more walkable environment, encouraging (re)development opportunities, increasing parking, incorporating art and landscaping, and developing public open space to create a vibrant, desirable district. The project has served as a catalyst for community redevelopment, igniting investment and a true entrepreneurial ecosystem for businesses. The result is a safer, more connected and walkable corridor that supports economic development, spurs people to engage, and renews community pride.

Here’s a look at the other three finalists:

  • Delta Charter Township brought together regional partners to coordinate the Waverly Pathway Project with the reconstruction of a county road and a $60 million freeway project. Delta and adjacent Lansing Charter Township worked with multiple agencies to plan the new shared-use pathway to solve a lack of facilities and serious hazards to walkers and bikers in the project area. Neither community could afford to build the pathway on its own, so they worked together to secure three different grants totaling $874,000. The Waverly Pathway project was made possible through extraordinary multi-agency collaboration that improved safety, strengthened multimodal transportation connectivity, and enhanced recreational opportunities for residents of both communities.
  • East Lansing’s Nighttime. Anytime. Place Project” was originally envisioned to help the city’s downtown business community address the complex challenges of the COVID-19 pandemic by providing enhanced options for outdoor dining and curbside pickup. As the city’s vision evolved, the project was expanded to include simple, cost-effective tactical urbanism techniques that reactivated and enhanced East Lansing’s downtown district through an eclectic mix of interesting, comfortable places, activities, and amenities. An underutilized parking garage was transformed into a farmers market; more than 300 pieces of K-12 student art were deployed at local businesses through an Art Popup Program; grass turf, tables and chairs, and hammocks were installed to create safe, welcoming spaces for relaxing, socializing, and outdoor dining, and more. Although these creative placemaking strategies were driven by the pandemic, the city hopes the “Daytime. Nighttime. Anytime. Place Project” results in long-term, community-driven enhancements and increased citizen engagement in downtown East Lansing.
  • Sterling Heights’ REcreating Recreation project is a transformational placemaking initiative that represents the single largest investment in quality-of-life services in the city’s history. Funded by a new millage, the ambitious project has provided opportunities for current and prospective residents to connect with their community in new, exciting, fun and inclusive ways, such as a new community center; an outdoor splash pad; a summer farmers market pavilion that transforms into a refrigerated ice rink in winter; a captivating skate park for all ages that prevents damage to other buildings; a mini-turf soccer field and an indoor bocce ball court; a new dog park for breeds of all sizes; a trail linking a city park with the city’s nature preserve featuring multiple respite and bike repair stations; and universally accessible paddle docks on the Clinton River for canoers and kayakers of all abilities, even those in wheelchairs.

The 2021 Race for the Cup began in the spring. The awards program received 25 entries this year, which is the most in a single year since the program started 14 years ago. Communities were encouraged to enter based on Civic Engagement, Innovative Delivery of Services, Intergovernmental Cooperation, Placemaking, Redevelopment, and COVID-19 Response & Recovery.

The competition included an online voting component open to the public with the top online vote getter (Sterling Heights) automatically advancing to the final four to compete at the Convention. The other three projects (Delta Charter Township, East Lansing, and Rochester Hills) were selected by a panel of judges.  The projects’ final score was based on the judges’ ranking (75 percent) and online voting (25 percent).

Judges for this year’s competition were Alfredo Hernandez, Racial Equity Officer, Michigan Department of Civil Rights; Amy Hovey, Special Projects Coordinator, Charles Stewart Mott Foundation; and Chad Livengood, Senior Editor, Crain’s Detroit Business.

“We always get some amazing projects, programs, and initiatives for our Community Excellence Award program and this year was no exception,” said Dan Gilmartin, CEO and Executive Director of the Michigan Municipal League. “The four finalists all gave fantastic presentations at our Convention, and I’m told the voting among our members was extremely close. Congratulations to all the participants in this year’s record-setting CEA program.”

Representatives from the final four presented their projects at the League’s 2021 Convention in Grand Rapids, Sept. 22-24. After hearing the presentations, Convention attendees voted for their favorite project, with Rochester Hills receiving the most votes. View past CEA winners here.

For photos of the CEA winners, go to the “Awards and Honors” album on flickr: https://www.flickr.com/photos/michigancommunities/albums/72157710904993143

Additional photos can be downloaded from the League’s flickr page for free. We just ask that the following photo credit be given: Michigan Municipal League/mml.org

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

Michigan Municipal League is dedicated to making Michigan’s communities better by thoughtfully innovating programs, energetically connecting ideas and people, actively serving members with resources and services, and passionately inspiring positive change for Michigan’s greatest centers of potential: its communities. The League advocates on behalf of its member communities in Lansing, Washington, D.C., and the courts; provides educational opportunities for elected and appointed municipal officials; and assists municipal leaders in administering services to their communities through League programs and services. Learn more at mml.org.

New Info Coming From MI Treasury on ARP Dollars for NEUs

The Michigan Department of Treasury recently provided an update to League staff on their continuing efforts to distribute the $322 million, first-year tranche of American Rescue Plan dollars designated for Michigan municipalities that are designated as Non-Entitlement Units.  These dollars were allocated to 1,724 Michigan cities, villages, and townships and are scheduled to be distributed on a per capita basis.  To date, MI Treasury has received applications from than 1,660 eligible units, with every Michigan city having requested their funds, following the July 8th opening of Treasury’s application portal.  Treasury is anticipating being able to begin distributing funds to completed and approved applicants by the middle of September.

Treasury’s 3rd party vendor has recently begun the process of reviewing the submitted funding request applications and auditing those submissions as a precursor to distributing the funds.  As of last week, the vendor had completed the initial review of about 1/3 of the applications. Treasury’s Coronavirus Local Fiscal Recovery Fund webpage is being updated as the vendor completes their audit of applications to display the status for each application.

During this review process, a high error rate has been encountered, with many errors being relatively superficial in nature (missing or wrong signatories, missing addresses or incomplete fields, DUNS number errors, etc).  Communities with errors in their application will be asked to make corrections to their applications and resubmit in order for the funds to be disbursed.  To facilitate the necessary error corrections, Treasury’s vendor is expected to begin contacting communities by phone late this week/early next week to make those communities aware of the situation with their application.  Following this direct contact, a letter will also be issued, likely next week, with the specific errors identified and the process for any necessary corrections and resubmission.

Treasury staff will also be participating in next week’s (Sept 7th) Live with the League broadcast to provide a more detailed update and answer any questions.

Here is some additional information shared recently by the Michigan Department of Treasury:

Intended Audience: Non-Entitlement Units of local government requesting or declining Coronavirus Local Fiscal Recovery Funds under the American Rescue Plan Act (ARPA). Non-entitlement units are defined as primary local governments (e.g., cities, villages, townships) other than federally defined metropolitan cities and counties under ARPA.

The Michigan Department of Treasury is reviewing more than 1,600 applications from local units requesting or declining Coronavirus Local Fiscal Recovery Funds (CLFRF). Over 95% of local units have completed the on-line submission process.

The Department of Treasury review team has begun to examine applications. Once the review has been completed and the application is error-free, the contact person and Chief Administrative Officer (CAO) will receive an e-mail from  treas-arpa@michigan.gov.

Errors in Submission

If errors were found in the on-line submission, the review team will contact the local unit to discuss the identified errors. Additionally, a detailed e-mail will be sent from treas-arpa@michigan.gov describing the errors. Please note: to successfully request funding, a local unit will have to log back into the ELITE system portal and correct identified errors. To ensure funding, local units are encouraged to complete this within seven days of receipt of the e-mail or be at risk of not receiving funding.

To assist with understanding common errors, the Michigan Department of Treasury has created a list of common errors and how to fix them.

NEU Status

NEUs can go to the Michigan Department of Treasury’s American Rescue Plan Act (ARPA) webpage to obtain their status update through the on-line summary file. Additionally, once audits are completed, local units will be able to access all their submitted information on the Michigan Department of Treasury’s document search site.

Payment Status

Payments to a NEU will occur after all application requirements have been met and after a Michigan Department of Treasury review. The first payments are anticipated to be issued in the next three weeks based upon the information local units verified in SIGMA.  These first payments will be for 50% of the allocation amount. The second 50% payment will be approximately 12 months later. Additionally, a smaller payment will be made after the initial on-line submission period is closed. This payment is the redistribution of funds from NEU’s that were non-responsive.

Questions? Comments?

More information and resources on CLFRF are available at Michigan.gov/ARPA.

Questions regarding the CLFRF can be directed to the Michigan Department of Treasury by e-mail at Treas-ARPA@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.

 

Michigan Municipal League Applauds Infrastructure Plan Approved in U.S. Senate

Dan Gilmartin, MML

Michigan Municipal League released a statement earlier this week about the U.S. Senate approving a $1 trillion plan to address the nation’s infrastructure needs. The statement is from Dan Gilmartin, the League’s CEO and Executive Director.

Here is the statement we sent out to the media:

“The Michigan Municipal League applauds the U.S. Senate’s vote today approving the Infrastructure Investment and Jobs Act. This investment takes a critical step toward ensuring access to safe roads, clean drinking water, reliable public transit, and high-speed broadband across Michigan and the nation. We implore the House to act quickly so these resources can be deployed. Bold action must continue in our effort to strengthen communities and improve the quality of life for residents. Congressional leaders should continue to work toward providing resources that support communities, address our housing needs, invest in our workforce, and foster sustainable and resilient places. It is time to meet this challenge and fully realize our nation’s enormous capacity to equitably invest in community wealth building, and we are ready and willing to add our voice to the process.”

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

Michigan Municipal League is dedicated to making Michigan’s communities better by thoughtfully innovating programs, energetically connecting ideas and people, actively serving members with resources and services, and passionately inspiring positive change for Michigan’s greatest centers of potential: its communities. The League advocates on behalf of its member communities in Lansing, Washington, D.C., and the courts; provides educational opportunities for elected and appointed municipal officials; and assists municipal leaders in administering services to their communities through League programs and services. Learn more at mml.org.

 

Legislature Breaks Without Finishing GF Budget

The Legislature recessed for at least two weeks earlier this week without finalizing a General Fund budget and without allocating any of their remaining GF fund balance or available American Rescue Plan Act funds.  A school aid budget was completed and sent to the Governor in HB 4411, but the House’s attempt at a baseline/continuation budget in HB 4410 and the Senate’s response that simply funded revenue sharing and a couple of DHHS line items remained unresolved by the time each chamber had adjourned.

While revenue sharing was not completed before they recessed, both chambers provided a 2% statutory revenue sharing increase ($5.2 million) in their different versions.  The Senate proposal also included a League-requested $433,000 to restore the August 2020 revenue sharing cut for dozens of League members that were unable to utilize the federal CARES funding that was offered as a replacement for that cut.  The Senate proposal and a different House proposal in SB 27 also offered a $10 million appropriation to provide relief to communities impacted by the severe storms that occurred in June.

While not completed this week, these items are all expected to resurface in a full budget negotiation that is expected to proceed between the Administration and legislative leaders in the coming weeks.  Those negotiations will likely determine when the House and Senate return to action to vote on a budget deal.  At this time, the House and Senate are scheduled to return for session days on; July 14 in the House, July 15 in the House and Senate, July 21 in the House, and July 27 in the Senate. While these days are currently scheduled, the success of ongoing budget negotiations will likely determine which, if any, of these days are utilized.

The League continues to advocate for improvements in revenue sharing funding, support for municipal infrastructure repairs necessitated by shoreline erosion, substantial state investments in water and sewer infrastructure similar to the Governor’s MI Clean Water Plan and the Senate proposal in SB 565, and state funding for replacement of local bridges as proposed in different versions by the Governor and legislative leaders, among a host of other spending priorities.

In addition to their work on the various Departmental budgets, the Governor and Legislature are also debating priorities for allocating the state’s first ARP allocation of $3.25 billion.  The League and our partners are pressing for leaders to agree on a comprehensive spending plan for these dollars that will provide local governments with additional opportunities to invest in their communities and leverage the dollars that they have available for greater impact on infrastructure, building local capacity, improving housing and community development, and promoting local economic development efforts.

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

 

Non-Entitlement Units Can Prepare Their ARP Allocation Requests

This morning, the Michigan Department of Treasury finalized the necessary forms and guidance to assist Michigan’s 1,724 “non-entitlement units”, eligible for American Rescue Plan funding on a per capita basis, to submit their requests to receive their eligible distributions. This will be the first of two distributions that NEUs will be eligible to receive under the federal stimulus, with the second distribution expected in 2022.

Treasury anticipates that the following new documents/request submissions will be able to be uploaded to Treasury’s ELITE System by July 6th.

The following information was shared by MI Treasury…

Intended Audience: Non-entitlement units of local government requesting or declining Coronavirus Local Fiscal Recovery Funds under the American Rescue Plan Act (ARPA). Non-entitlement units are defined as primary local governments (cities, villages, townships) other than federally defined metropolitan cities and counties under ARPA.

The ARPA Coronavirus Local Fiscal Recovery Fund (CLFRF) Non-Entitlement Units of Local Government (NEU) Funding Election and Budget Certification Form (Form 5751) is now available for NEUs to complete. Additionally, Numbered Letter 2021-5 is now available to assist NEUs in calculating their top-line budget for CLFRF reporting.   

The Form 5751 will be uploaded into the ELITE system along with other required documentation. Currently, the online submission portal is not active. The online portal to submit the required CLFRF reporting is expected to be live the week of Tuesday, July 6, 2021.

NEUs Can Prepare Application Materials Today

All documents to accept the CLFRF NEU funding are now available. NEUs can complete the following tasks, save each completed file as a PDF, and be ready to upload in the ELITE system in anticipation of the launch next week.

Application Requirements:

Contact Us

More information and resources on CLFRF are available at Michigan.gov/ARPA.

Questions regarding the CLFRF can be directed to the Michigan Department of Treasury by e-mail at Treas-ARPA@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.

State Budget Bill Positioned to Appropriate NEU Portion of ARP Funding

Late yesterday afternoon, the Michigan House of Representatives moved a new version of a supplemental appropriation bill, Senate Bill 37, that appears to represent a deal on a number of outstanding federal stimulus items from last December’s federal stimulus effort and includes appropriating the first installment of the American Rescue Plan Act’s Non-Entitlement Unit funding aimed at Michigan cities, villages, and townships that were not classified as Metropolitan Cities under the federal stimulus.

Senate Bill 37 appropriates the first half of the NEU funds that will be distributed on a per capita basis by the Michigan Department of Treasury.  The appropriation of this $322 million is a necessary first step before Treasury can distribute these dollars to the eligible NEUs identified by the US Treasury late last month.  The League is co-hosting a webinar with Michigan Department of Treasury staff on Thursday, June 17th to further discuss how local units can apply/request these funds and some of the reporting and calculation details that communities will need to follow to receive and utilize these funds.  League members are strongly encouraged to attend this webinar as they begin strategy and community planning conversations around these dollars.

Senate Bill 37 also includes additional Coronavirus-related FEMA Disaster Assistance funding and over $378 million for emergency rental and utility assistance.  With the House’s action yesterday, this bill now goes back to the Senate for an expected concurrence vote today and the Governor’s signature.

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

Webinar on Federal Stimulus Scheduled for June 17

The Michigan Department of Treasury released the following agenda and registration details for their first webinar on the American Rescue Plan Act, aimed at offering the Department’s initial guidance for implementing the ARP’s Coronavirus Local Fiscal Recovery Funds.

This webinar is scheduled for:

Thursday, June 17, 2021
2 p.m. – 3:30 p.m.

In partnership with the Michigan Municipal League, Michigan Townships Association, and Michigan Association of Counties, the Michigan Department of Treasury is pleased to announce the 13th webinar in the “Updates and Resources for Local Governments” webinar series.

Topics covered will include:

  • Updates on the American Rescue Plan Act, including eligible uses and receipting
  • Strategically utilizing funds

Participants can register and submit questions on the webinar’s registration page.

Agenda

  1.  Welcome & Introductions Heather Frick, Bureau Director, Bureau of Local Government and School Services, Michigan Department of Treasury
  2. Special Message to Locals
  3. Updates on the American Rescue Plan Act
    1. Receipt of Funds
    2. Eligible and Ineligible Uses of ARPA Funds
    3. Revenue Losses
    4. Reporting
      Eric Bussis, Chief Economist and Director of the Office of Revenue and Tax Analysis, Michigan Department of Treasury
      Rod Taylor, Administrator, Community Engagement and Finance Division, Michigan Department of Treasury
  4. Strategically Utilizing All Funds
    Tim Dempsey, Vice President, Public Sector Consultants
  5. Question and Answer 
  6. Closing Remarks
    Heather Frick, Bureau Director, Bureau of Local Government and School Services, Michigan Department of Treasury

Additionally, the Michigan Department of Treasury has developed a webpage with numbered letters, memorandums, webinars, and resources regarding COVID-19 updates for local governments and school districts. This webpage was created to ensure that Michigan communities have access to the most up-to-date guidance and is updated frequently with information and resources as they become available. 

Disclaimer: The U.S. Department of Treasury has issued interim rules for the American Rescue Plan Act. These rules are subject to change. The information provided during this webinar is solely intended for general reference and is not comprehensive or final information. It is recommended that local governments review all guidance from federal Treasury and contact their legal counsel and auditor for your specific situation.

 

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

U.S. Department of Treasury Releases Additional FAQs on the Coronavirus State and Local Fiscal Recovery Funds

The League and our partners at the National League of Cities received the following information from US Treasury regarding the posting of 10 additional FAQs on the Coronavirus State and Local Fiscal Recovery Funds that are part of the American Rescue Plan Act. The full FAQ document, which includes FAQs from the original May 10 publication date, the previous May 27 update, and this week’s update, can be found here.

Questions added in the last two updates can be referenced within the FAQ as follows.

  • 5/27/21: 1.5, 1.6, 2.13, 2.14, 2.15, 3.9, 4.5, 4.6,10.3,10.4 (updates are noted with “[5/27]”)
  • 6/8/21: 2.16, 3.10, 3.11, 3.12, 4.7,6.7,8.2, 9.4, 9.5,10.5  (updates are noted with “[6/8]”)

The specific questions added on 6/8/21 include the following:

  • May recipients use funds to establish a public jobs program?
  • In calculating revenue loss, are recipients required to use audited financials?
  • In calculating revenue loss, should recipients use their own data, or Census data?
  • Should recipients calculate revenue loss on a cash basis or an accrual basis?
  • Do restrictions on using Coronavirus State and Local Fiscal Recovery Funds to cover costs incurred beginning on March 3, 2021 apply to costs incurred by the recipient (e.g., a State, local, territorial, or Tribal government) or to costs incurred by households, businesses, and individuals benefiting from assistance provided using Coronavirus State and Local Fiscal Recovery Funds?
  • How do I know if a water, sewer, or broadband project is an eligible use of funds? Do I need pre-approval?
  • May recipients use Fiscal Recovery Funds to fund Other Post-Employment Benefits (OPEB)?
  • Once a recipient has identified a reduction in revenue, how will Treasury track use of funds for the provision of government services?
  • What is the Assistance Listing and Catalog of Federal Domestic Assistance (CFDA) number for the program?
  • May recipients use funds to cover the costs of consultants to assist with managing and administering the funds?

U.S. Treasury intends to update their FAQs periodically to help clarify questions about the Interim Final Rule.  They anticipate another update soon, which is likely to include additional questions recently posed by communities across the country. U.S. Treasury is trying to respond as quickly as possible to these questions.

It is important to note that because the Interim Final Rule is still in the 60-day public comment period, there may be some points raised by stakeholders that cannot be addressed via FAQs and will need to be considered as part of the process for revising the rule. It you have specific questions we strongly encourage you to submit comments for the record to ensure that these perspectives are reflected in the public comments when it comes time to finalize the rule.

Additionally, U.S. Treasury posted an FAQ supplement regarding distribution of funds to non-entitlement units of local government (NEUs).  This FAQ supplement includes several questions answered as part of previous FAQ updates, as well as answers to 12 additional high-priority questions that were received from stakeholders over the course of our engagement since the release of the NEU guidance on May 24.

The new questions added to the NEU FAQ supplement are listed below.

  • Can states impose requirements or conditions on the transfer of funds to NEUs?
  • Can states transfer additional funds to local governments beyond amount allocated to NEUs?
  • May states use funds to pay for the administrative costs of allocating and distributing money to the NEUs?
  • What steps do states and territories need to undertake to receive their NEU payments?
  • What are the specific deadlines for state governments in distributing funds?
  • How long does a state have to wait until an NEU can be treated as “non-responsive” and the state can issue a subsequent distribution based on unclaimed funding?
  • How should a state treat a local government on the list posted on the Treasury website that is no longer in operation and has been dissolved?
  • How should territories allocate and distribute payments to their NEUs?
  • Can states pay entities that are not included in the list of local governments provided by Treasury?
  • Is a Second Tranche payment guaranteed for NEUs, provided that they comply with the terms and conditions of the funding?
  • How should states check to see whether an NEU is excluded or disqualified as outlined in the guidance?
  • Are states required to collect key information from the NEU as outlined in the guidance (e.g., banking information or top-line budget totals) or may states rely on existing information in their systems?
  • Do states have to collect actual budget documents to calculate the “75 percent budget cap,” or can they rely on a budget total?
  • Do states have to monitor NEUs for compliance with use of funds?
  • Is there a requirement to distribute funds to NEUs electronically, or can funds be distributed via check?

The League will continue to update members on the legislature’s activities around this funding as well as forthcoming updated guidance from the US and Michigan Department of Treasury.

Additionally, the MI Department of Treasury has joined with MML to host a webinar on the American Rescue Plan Act.  This webinar is scheduled for June 17th. Stay tuned for agenda information and registration details.

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

New ARP Guidance for “Non-Entitlement Units” Released

Monday evening, the US Treasury released guidance specifically related to the majority of Michigan communities that will receive American Rescue Plan Act funding on a per capita basis.

For Michigan, these Non-Entitlement Units (NEUs), are scheduled to receive more than $644 million in federal aid that will be distributed through the State of Michigan on a per capita basis.  While US Treasury did not attribute specific allocations to each of Michigan’s NEUs, they did provide a List of Local Governments eligible for this federal funding support.  This list also includes the 2019 census data that the State of Michigan will use to allocate this funding to our eligible NEUs.  The NEU definitional and data methodology is also outlined by US Treasury here.

Following significant lobbying by MML and our partners at the National League of Cities, this updated list of local governments from US Treasury recognizes all of Michigan’s villages as distinct NEUs, eligible for their own per capita allocation from the state.  This is an important acknowledgement for Michigan communities becasue of our unique system of local government compared with our national peers.  We are now working with the Michigan Department of Treasury and the State Budget Office to determine how the state intends to implement and distribute this funding based upon the specific guidance that US Treasury provided to the states.  According to language in the American Rescue Plan, the state is required to forward these dollars within 30 days of receipt from the federal government, with only minor allowances for extensions.  A state appropriation bill must be passed to distribute this $644 million to all 1,724 eligible Non-Entitlement Units in Michigan.

The League will continue to update members on the legislature’s activities around this funding as well as forthcoming updated guidance from the US and Michigan Department of Treasury.

HEADS UP – We are also working with the Michigan Department of Treasury on a webinar for local government officials in early June.  Stay tuned for agenda information and registration details.

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