PA 33 Population Cap on Municipalities Removed With Passage of HB 5248

On Tuesday, the Michigan Senate convened for an action-packed day to move final items of legislation before the conclusion of the 2021-2022 legislative term. Among those bills was HB 5248, sponsored by Representative Steenland.  HB 5248 would eliminate the current 15,500 population cap applied to cities and villages utilizing or seeking to utilize the PA 33 special assessment for police and fire. This change would add a requirement for cities and villages with a  population above 15,500 to first bring the question of raising money by special assessment and the amount of the special assessment to be levied annually, with a majority of electors in the district supporting the special assessment.

The bill passed the House of Representatives in early May 2022 and was brought before the Senate Local Government committee in early November 2022. The Michigan Municipal League offered testimony alongside Representative Steenland in support of the bill, and the City of Roseville also provided testimony.

Limited session days did not allow for a committee vote. Thus, the bill was discharged to the Senate floor on November 29 and was taken up for a vote on the Senate floor the same day. HB 5248 passed with overwhelming support, 31-6-1, and will now go to the Governor’s desk for her signature.

The League has long advocated removing the PA 33 population cap on cities and villages. Legislation to make this change has been introduced but unsuccessful over the last 4 terms. Within the current statute, there is no population cap applied for townships. Most recently, the population cap for cities and villages was extended from 15,000 to 15,500 due to the 2020 Census (HB 4281 from Rep. Garza) . After both the 2010 and 2020 Census counts, the Michigan Legislature was rushed to make adjustments to the statute to accommodate municipalities that stood to immediately lose critical public safety funding. The League was able to point to this occurrence as a clear example of why this change was needed. This fix would address the disincentive for growth that discriminated against cities and villages and ensures the future Census counts did not jeopardize funding for public safety operations. Additionally, this will provide a tool for larger municipalities to seek additional revenue for more reliable services and competitive opportunities for public safety professionals.

Once signed by Governor Whitmer, HB 5248 would incorporate all existing carveouts for communities impacted by population shifts in PA 33.  This will support expanded funding options for local communities, increase available resources, and strengthen collaboration opportunities for critical public safety services.

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

Reminder: Live with the League is this Monday at Noon

Our next Live with the League is noon Monday.

As you may have previously read here on Inside 208, the Michigan Legislature had a couple session days this month after not being in session since late June. Both chambers were extremely active, and our Legislative team kept very busy tracking it all.

During the next Live with the League at noon Monday, Oct. 3, our team will break down the latest activity and discuss the topics our members most care about. We will cover the $1 billion budget supplemental approved Wednesday as well as the Senate nearly taking up the short-term rental legislation that we strongly oppose. We also will chat about a proposal for a revenue sharing trust fund that the MML’s John LaMacchia testified on. For additional details about this week’s legislative activity, read this blog post by our own John LaMacchia.

Hope you can make it to the discussion noon Monday, Oct. 3 and please be sure to ask any questions on your mind for our Legislative team! Register for the FREE event here.

Online Voting Now Open for Bridge Builders Microgrant Projects

Bridge Builders online voting is now open! Help shine a spotlight on your local visionaries, change-makers, and community leaders by voting for the Bridge Builders Microgrant project that inspires you.

Voting for Bridge Builders semi-finalist projects is open from August 22 through September 4. Voting is allowed once per day, per person. Our statewide juries will consider vote totals along with other factors when they select this year’s grantees, so get your votes in!

The Bridge Builders Microgrants program offers small, one-time grants to people or organizations within Michigan Municipal League communities. These grants support the little things—dynamic, creative activities that bring people together. To learn more about this year’s funding categories click here.

There are projects from 22 communities vying to be this year’s recipients of $500 and $5,000 in grants. The projects are in the following communities: Bridgman, Cassopolis. Cheboygan, Chelsea, Coopersville, Dearborn Heights, Detroit, Flint, Grand Rapids, Hancock, Harper Woods, Hastings, Iron Mountain, Lennon, Monroe, Mt. Pleasant, New Haven, Ortonville, Rochester Hills, Romeo, Romulus, and Traverse City.

Please support these projects by voting here: https://mmlfoundation.org/vote/

Applications Now Open for First Responder Training and Recruitment Grants

In an effort to help local units of government address critical needs in recruiting and training first responders, Gov. Gretchen Whitmer signed Public Act 87 of 2021 that appropriates $5 million to create the First Responder Training and Recruitment Grant Program.

All Michigan cities, villages, townships, counties or fire authorities are eligible to apply for a grant of up to $100,000 related to first responder training and recruitment. First responders are police officers, firefighters, Emergency Medical Technicians (EMTs), paramedics, and the local unit of government corrections officers.

The Michigan Department of Treasury will be working directly with local units of government and other local government partners to implement this grant program.

Key items for local units of government to remember:

  • A completed application with detailed information must be received by the Michigan Department of Treasury on or before Feb. 15, 2022.
  • The governmental unit must demonstrate how budgeted costs directly relate to the recruitment or training of first responders.
  • Priority will be given to projects that will be completed by Sept. 30, 2022.
  • Projects are funded on a reimbursement basis.
  • $2 million will be designated for communities with a per capita property taxable value of less than $15,000, with the remaining funds awarded based on a review of applications and the determination of the effective use of and need for the grant funds.

During the application review process, applicants may be contacted for clarification. The Michigan Department of Treasury reserves the right to award funds for an amount other than requested.

Applications will be selected for funding by the Michigan Department of Treasury based on program purpose, eligibility, and criteria. Projects are funded on a reimbursement basis.

To learn more about the First Responder Training and Recruitment Grant Program, go to Michigan.gov/FRG. Questions should be directed to TreasLocalGov@michigan.gov.

See Governor Whitmer’s announcement on the grant program 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.

Tell Your Senators Today to Oppose or Slow Down on Personal Property Tax Bill

The Michigan Municipal League needs your help to oppose a bill related to the personal property tax that could get a vote in the state Senate as early as Tuesday, December 14th. While we prefer you call your state Senators, we’ve also created this sample letter through our Action Center that you can email to them.

House Bill 5351 passed in the House Wednesday and appears to be on a fast-track for a vote in the Senate. The bill would double the small taxpayer personal property tax exemption for small businesses from $80,000 to $160,000. No fiscal analysis of this bill has been done, but best estimates are that this change could cost local governments $40 million to $50 million in anticipated personal property tax revenue.

It is not known how many businesses will be impacted by this, and most importantly the bill DOES NOT provide a revenue replacement to local government.

There is no reason to rush this bill through the legislature because it wouldn’t take effect until Dec. 31, 2022 and wouldn’t lower the personal property tax that commercial and industrial businesses pay until July, 2023.

The League is encouraging state Senators to hold off on voting on this important issue until after the first of the year so that proper time can be spent determining the full economic impact of this legislation. We’re also encouraging legislators to identify an appropriate revenue replacement for this significant cut to local governments to avoid cuts to vital local services.

Here are some talking points to use when discussing this issue with your Senators:

  • The state is sitting on billions of dollars that could help small business immediately so why cut small business taxes that does not provide any financial relief until July of 2023?
  • If this passes, how do you plan to replace the revenue for this significant cut to local governments?
  • What’s the rush? There is no immediate need to do this now and it should be delayed until we know the true impact to local government and small business.
  • Let’s work together to find a solution that immediately helps small business and doesn’t cut local government funding.
  • This legislation is not needed to pass the broader economic development incentive package the legislature is currently considering.

Please contact your Senators today! Call them or send them this letter. Thank you!

Flint’s Monica Galloway Selected as President of Michigan Municipal League Board

Monica Galloway, Flint City Councilmember, selected as 2021-22 MML Board President.

The new president of the Michigan Municipal League Board of Trustees is Flint City Councilmember Monica Galloway. This marks the fifth time in League history, dating back to 1899, that someone from the City of Flint was named president. And it’s the 10th time to have a president from a Genesee County municipality.

Here is a press release we shared with the media statewide about Galloway’s selection and selection of Sterling Heights Councilmember Barbara Ziarko as the board vice president.

FOR IMMEDIATE RELEASE: Sept. 23, 2021

Flint City Councilmember Monica Galloway has been named as the Michigan Municipal League’s 2021-22 President.

Galloway was selected Board President by the 19-member Board of Trustees this week during the League’s Convention in Grand Rapids. The Board also named Sterling Heights City Councilmember Barbara Ziarko as vice president. Ziarko is now in line to become League President in 2022-23.

Galloway said her journey to serve as the League’s Board President wasn’t typical because she got started with the statewide nonprofit organization as a requirement. Eight years ago, when first elected to the Flint City Council, the city was under an emergency manager who required councilmembers to become Level 1 graduates of the League’s Elected Officials Academy (EOA). So, she did what was required, but found immense value in participating in the MML and stuck with it even when it was no longer mandatory. She has since become one of a just a dozen League members to complete all four levels of the EOA.

“The MML has been a lifeline for me,” Galloway said. “I’ve learned so much in terms of how to become a good community leader and local legislator. Now, to have the opportunity to be in a leadership role with the very organization that helped me so much is just amazing. It’s such an honor. I serve on a board with amazing leaders and to receive their confidence is very humbling.”

Barbara Ziarko, Sterling Heights City Councilmember, selected as 2021-22 MML Board Vice President.

League CEO and Executive Director Dan Gilmartin said the organization and membership are in good hands with Galloway and Ziarko at the helm.

“The League is fortunate to have Monica and Barbara as leaders of our Board,” Gilmartin said. “The depth of their varied experience, savvy, and knowledge will help elevate our organization in the next year as the League assists municipalities to build community wealth, emerge from the pandemic, and invest in the future in ways that enhance the human experience for everyone.”

Monica Galloway has represented Flint’s Seventh Ward on the City Council since 2013. She is the first African American and first woman to hold that position. She has served on the MML Board since 2019.

In 2020, she was honored by the League with its Ambassador Award recognizing exemplary service. The award is given to MML members who successfully complete all four levels of the League’s Elected Officials Academy (EOA) program. She also serves as vice president of the EOA Advisory Board.

Born and raised in San Diego, CA, she and her Flint-native husband and two sons relocated to Flint in 1995.

As League president, Galloway said she plans to continue the nonprofit organization’s work in building community wealth and encouraging diversity, equity, and inclusion in municipalities throughout the state. She is the 10th League President from Genesee County and the fifth from the City of Flint since the MML was founded in 1899. The last president from Flint was in 1990—former Flint Mayor Woodrow Stanley.

MML Board President Monica Galloway and Vice President Barbara Ziarko.

“To be here 31 years after Mayor Stanley is amazing,” Galloway said. “I will do my absolute best not just to represent Flint and Genesee County, but to represent our entire state.”

In addition to selecting Galloway and Ziarko as the Board President and Vice President, the League membership also elected six new Board members during its annual meeting Wednesday, Sept. 22. The new members are Joshua Atwood, Lapeer City Commissioner; Rebecca Chamberlain-Creanga, Troy City Councilmember; Don Gerrie, Sault Ste. Marie Mayor; Valerie Kindle, Harper Woods Mayor; Joshua Meringa, Grandville Councilmember; and Tim Wolff, Lake Isabella Village Manager.

The new Trustees join Galloway, Ziarko and the other volunteers who remain on the 2021-22 Board—Robert Clark, Monroe Mayor; Peter Dame, Grosse Pointe City Manager; Carla Filkins, Cadillac Mayor; Stephen Gawron, Muskegon Mayor; Robert La Fave, L’Anse Village Manager; Andrè L. Spivey, Detroit City Councilmember; Deborah Stuart, Mason City Manager; Patrick Sullivan, Northville City Manager; Keith Van Beek, Holland City Manager; and Mark Washington, Grand Rapids City Manager.

The League Board and League CEO/Executive Director Dan Gilmartin also thanked the outgoing Trustees for their years of service: League President William Wild, Westland Mayor; League Vice President Dr. Deirdre Waterman, Pontiac Mayor; Michael Cain, City Manager of Boyne City; Brian Chapman, Sault Ste. Marie City Manager; Frances McMullan, Ypsilanti City Manager; Jean Stegeman, Menominee Mayor; and Diane Brown Wilhelm, Midland City Councilmember.

Download photos of the president, vice president, and new Board members on the League’s Flickr page at https://bit.ly/3nKKt9Q.

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

Proposed Permanent MIOSHA COVID-19 Workplace Safety Rules Raise Concerns for Local Governments

UPDATE as of 5/18/2021: MIOSHA is in the process of reviewing both the emergency rules and draft permanent rules. The agency has the flexibility it needs to ensure consistency with public health guidelines and will continue to protect Michigan workers as we work toward ending this pandemic.

*Please be advised that the draft permanent rules have not been rescinded. 

The League is currently working with the Whitmer Administration to address the conflicting messaging that is occurring between the most recent MDHHS order on mask wearing, Michigan’s “Vacc to Normal” campaign, and the recently scheduled MiOSHA public hearing to consider making the COVID-19 emergency workplace rules permanent.  The League has reached out to multiple contacts in the administration and department on the proposed rules and wanted to share the following highlights from the proposed rules.

The Michigan Occupational Safety and Health Administration (MIOSHA) is looking to move forward with permanent COVID-19 Workplace Safety rules on employers of all sizes and types and across all industries, including local units of government.

The Michigan Municipal League has concerns about the proposed permanent rules which fail to address commonsense concerns, impose unfunded mandates on local units, and do not reflect the rapidly changing environment related to the pandemic, and directly contradict the Governor’s “Vacc to Normal” plan announced on April 29.

The League anticipates submitting written public comment based on the points below for the May 26th hearing, and we encourage our members to also engage.

The League’s outstanding concerns with the proposed rule-set include:

The rules contradict and conflict with Governor Whitmer’s “Vacc to Normal” plan, released on April 29, and existing state and federal health guidance. The “Vacc to Normal” outlines a plan for rewarding workers and businesses for their efforts to vaccinate and stay safe. However, MIOSHA’s indefinite and permanent rules don’t mention the word “vaccine” even once. This sends a disingenuous and contradicting message to employers and employees alike. If the MIOSHA rules go into effect as written, employers would still have to require their employees to wear masks, “promote” remote work and socially distance indefinitely—and even if the entire workplace is fully vaccinated.

The rules provide a top-down, one-size-fits-all approach. Local communities vary significantly in capacity and resources. We need the flexibility to adapt and implement safety measures that match our operations and specific situations.

The rules needs to provide greater flexibility for Michigan to adapt as updated guidance as released from the CDC. This should be recognized as it relates to proper PPE standards, workplace protections, quarantine guidance, physical distancing, how to handle vaccinated versus non-vaccinated employees and other, current information to combat COVID-19. For example, updated CDC guidance now recommends that individuals who are fully vaccinated can gather indoors with other fully vaccinated people without wearing a mask or social distancing. However, the proposed permanent MIOSHA rules (Rule 7) do not address this issue and, instead, require everyone on the worksite to social distance and to wear face coverings.

The rules prioritize remote work, which has already caused a detrimental impact on downtown and local income tax revenues. Additionally, the requirements are unnecessary and overreaching. The proposed rules micromanage employers by requiring them to “create a policy promoting remote work for employees to the extent that their work activities can feasibly be completed remotely.” These decisions are best made in the workplace between employers and employees.

The rules lack a clear sunset date for when the rules would end. Given the widespread availability of vaccines, job providers deserve to understand when these regulations will come to an end. As written, the proposed rules wouldn’t even be guaranteed to expire after the Michigan Department of Health and Human Services declaration has ended!

Full text of the draft rules may be found here.

The MML recommends and encourages our members to attend the public comment hearing on May 26th at 9 a.m. to voice their opposition to the proposed rules and urge MIOSHA to reconsider its proposed permanent COVID-19 workplace safety rules in either written or verbal testimony. We also encourage you to contact your respective State Representative and State Senator to amplify your opposition to this rule-set. Information to participate is below.

Participate in MIOSHA’s virtual public hearing on May 26 at 9 a.m. via phone, web or Microsoft Teams and speak out in opposition to these rules.

If you plan to speak at the virtual hearing, please contact Toscha Klopp (email: kloppt@michigan.gov) by 5 p.m. on May 19 with your name and who you are representing.

To join the meeting via Microsoft Teams: https://teams.microsoft.com/l/meetup- join/19%3ameeting_MTZiN2ZjZmYtMzllYi00ZTZkLTgyMmYtMmFlYzcyM2Q5OGVk%40thread.v2/ 0?context=%7b%22Tid%22%3a%22d5fb7087-3777-42ad-966a- 892ef47225d1%22%2c%22Oid%22%3a%22ca6dec2f-ba39-4bfb-928b-d289fb945b11%22%7d

To join the meeting via the web: Visit http://www.michigan.gov/mioshastandards and scroll down to “Committees and Public Hearings” and click on “Advisory Committees and Public Hearings” link. A new page will open, and you will scroll down to the box titled “Public Hearings” and click on the “Join Microsoft Teams Meeting” link there.

To join the meeting via phone: Call (248) 509-0316 and enter Password/Conference Code: 107 137 372#

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.

 

American Rescue Plan Talking Points for Michigan’s Local Governments

The Michigan Municipal League has received a lot of questions about the recently approved American Rescue Plan from our members. Many of your answers can be found in this blog by the League’s Chris Hackbarth. But we’ve also received feedback from members seeking best practices about how to discuss the American Rescue Plan with the public and media. In response, we’ve prepared the following talking points and common questions and answers to help guide you. Feel free to use these talking points and questions and answers below and adjust them to fit your community’s needs.

Local Official American Rescue Plan Talking Points

  • The American Rescue Plan Act (ARP) represents a historic moment for [insert community name].
  • This financial support is an opportunity to invest in our future by building community wealth.
  • The funds are also a long overdue acknowledgement of local government’s outsized role in the day-to-day services that support a high quality of life.
  • History: This pandemic has put our communities through hell.
  • This fresh hell is on top of more than 20 years of persistent disinvestment and erosion of local control and decision-making ability for our community.
    • We know the story, Headlee, Proposal A, revenue sharing cuts, pre-emption of local control, etc.
    • Since 2000, Michigan communities have lost more than $9 billion to these policy decisions.
  • [Insert community name] has done more with less for two decades, and the American Rescue Plan is a lifeline that will help ensure our community can host, support, and accelerate a robust recovery for all our residents.
  • Crisis after crisis we have stepped up to find creative, innovative ways to serve our residents.
    • We’ve endured through population decline, once in a lifetime flooding, infrastructure failure, social and racial unrest, economic devastation, major demographic shifts, drug epidemics, declining public health—both physical and mental—topped off by a global pandemic that threatened to bring us to our knees, and I wish I could say that was the end of the list.
  • We have risen to the occasion to serve our residents every time while keeping the wheels turning on the basics of local government (public safety, roads and infrastructure, parks, etc.). While the pandemic might be global, its affects are felt locally.
    • Our restaurants and small businesses have suffered tremendously.
    • Our children and schools have struggled to adapt to remote learning.
    • Our trails and parks have hosted neighbors near and far seeking a break from isolation.
    • Our infrastructure has been transformed to set up COVID testing facilities while our ability to perform basic maintenance has suffered.
  • Local government belongs to its residents, and we will work with our residents and businesses to ensure these funds are invested strategically so that our whole community will benefit long into the future.
  • We will take our time. There are several weeks before the U.S. Treasury releases official guidance on our specific allocation and rules for implementation. Beyond that, we have until 2024 to spend these dollars.
  • We will revisit our [master plan/asset management plan/etc.] which will serve as a guideline, but we will also take time to reengage the entire community on our priorities.

Frequently Asked Questions

How much money is your community receiving?

There are various lists of anticipated ARP dollars by community, but these lists have inaccuracies and are incomplete. We’re waiting for more accurate numbers, as well as additional direction and information from the U.S. Department of the Treasury. It’s worth nothing that we can take our time in determining the best uses of this one-time funding because the ARP law gives us until the end of 2024 to use this community investment.

How will you spend this money?

The short answer is “carefully and strategically.” Local governments have been under funded for decades to the tune of $9 billion since the year 2000. We have crumbling infrastructure needs, public safety needs, human service needs, and our downtowns and parks need improvement and maintenance.

This is an extremely large sum of money. How can the public be assured that it will be spend responsibly and not wasted?

This isn’t [insert community’s] money, this is the public’s money. We are going to take our time to engage the community to ensure the that it goes to where their priorities are. The goal is to ensure these funds are used strategically so that every corner of our community makes a full recovery.

Are there any guidelines on how American Rescue Act funds can be spent?

The Department of Treasury will be issuing guidance detailing its interpretation and implementation of eligible uses, but the statutory language specifically authorizes the following uses of these funds:

  • To respond to the pandemic or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality;
  • For premium pay to eligible workers performing essential work (as determined by each recipient government) during the pandemic, providing up to $13 per hour above regular wages;
  • For the provision of government services to the extent of the reduction in revenue due to the pandemic (relative to revenues collected in the most recent full fiscal year prior to the emergency);
  • To make necessary investments in water, sewer, or broadband infrastructure

Are there things that the American Rescue Act funds CANNOT be used toward?

Yes, the Act prohibits states from offsetting, either directly or indirectly, a tax cut made since March 3, 2021; and prohibits states and local communities from depositing these dollars into a pension fund.

 

MML President Mayor Wild, Fellow Board Members Fighting for Michigan Communities

 

MML President and Westland Mayor Bill Wild (second row left) attends a Zoom meeting with U.S. Secretary of the Treasury Janet Yellen (bottom of frame) earlier today.

Michigan Municipal League Board President Bill Wild, mayor of Westland, and other board members were actively fighting on behalf of Michigan communities in recent days on a number of fronts. There was so much going on that we’ve decided to post this blog detailing it all.

Earlier today, Mayor Wild met with U.S. Secretary of the Treasury Janet Yellen about the need for a new federal stimulus package that provides direct, flexible support for communities battling COVID-19 on the frontlines. While this meeting that wasn’t recorded, we are able to share on social media how successful the League Board President Wild felt the meeting was. Here’s how Mayor Wild summarized the meeting for us:

“I think today’s meeting was very productive and remarkable in the Secretary’s understanding of the effect the pandemic has had on Local Government and the importance of allowing flexibility in the utilization of this funding.

I left feeling that the Administration was fully committed to moving this COVID-relief funding to communities very quickly and was encouraged that the line of communication will remain open to the White House post pandemic as we work to reopen our local economies, get Americans back to work and begin to rebuild the nation’s infrastructure.”

Westland Mayor Bill Wild, MML board president, attends a Zoom meeting with U.S. Secretary of the Treasury Janet Yellen earlier today.

The League is very appreciative of Mayor Wild’s work on our members’ behalf in trying to secure a COVID-related stimulus package that provides direct, flexible funding to local governments of all sizes from around the nation.

The meeting between Secretary Yellen, Mayor Wild and several other city leaders was requested by the White House through the National League of Cities. The NLC reserved a spot for the MML and we secured Mayor Wild’s participation. Other officials on the call included Council Member Kathy Maness, Lexington, SC, NLC President; Mayor Vince Williams, Union City, GA, NLC First Vice President; Irma Esparza Diggs, of NLC; Mayor Nic Hunter, Lake Charles, LA; Mayor Walter Eccard, Shallotte, N.C.; Mayor Patricia Branson, Kodiak, AK; and Mayor Charlene Lovett, Claremont, N.H.

Mayor Wild represented not just Michigan on the call, but the entire Midwest. The League provided Mayor Wild with talking points that he was able to share with Secretary Yellen. The current $1.9 trillion COVID-19 stimulus package being supported by President Biden includes a $350 billion emergency aid reconciliation package that provides flexible aid for our states, cities, counties, tribes, and territories. This package is on track to be approved in Congress, but the strong advocacy effort by the League and the NLC to garner support continues.

Helping Our Members in Various Ways

But Thursday’s meeting wasn’t the only way Mayor Wild and other MML board members were fighting for our membership in recent days.

Sunday’s Michigan Matter program featured League Board President William Wild, mayor of Westland, and League Board Vice President Deirdre Waterman, mayor of Pontiac. as well as the mayors of Rochester Hills and Warren.

On Sunday, both Mayor Wild and League Board Vice  President and Pontiac Mayor Deirdre Waterman appeared on the Michigan Matters news program on CBS Detroit. You can watch it here.

They were joined by fellow mayors Bryan Barnett of Rochester Hills and James Fouts of Warren to talk about the impact of COVID-19 on their communities.

Anything League members can do, such as media interviews like this one, to raise awareness over the need of direct funding for our communities battling the coronavirus is vital in getting the next stimulus package across the finish line.

Organizational Sign-On Letter Still Open

And here’s another way League members can help. As NLC and the MML prepares for the COVID Relief Package to head to the Senate – the coalition we are working with has reopened the sign-on letter previously distributed. Over 320 groups have already signed! 

 

THIS LINK contains the letter; as well as a sign up form. 


If you are a member of an organization that supports this effort, please have the organization’s representative sign the letter. If you work with other groups who might want to sign, we’d love to have them as well.


As a reminder, the NLC is not seeking individual government entities to sign this letter at this time – only organizations. 

TwitterStorm

The MML and many of our supporters also joined in the NLC’s TwitterStorm event today. In this social media campaign, people were encouraged to use the hashtags #AmericaRescuePlan and #AmericanRescuePlan to keep the pressure on federal lawmakers to pass the new stimulus plan. Here are some of the Tweets by the NLC and shared by the League and our staff:

  • Since the onset of #COVID19, frontline heroes have worked to keep us healthy and safe. Join us in supporting the #AmericanRescuePlan for the 93,000 first responders nationwide as we continue to move America’s communities forward.

  • Thank you Secretary @JanetYellen for taking the time today to connect with NLC! We look forward to continue to work alongside you & @USTreasury to build intergovernmental partnership, address residents’ critical needs & help communities respond, recover & rebuild #LeadingTogether

  • It is essential that the House passes this relief package this week so that the Senate to do the same. Tweet your Representative TODAY and let them know that their vote for the #AmericanRescuePlan will support our communities and drive the economy.

  • Municipalities face a more dire situation than states in the pandemic recovery. Although state and local relief have been grouped together in a recovery bill, the true impact of the pandemic varies between the local and state level. #AmericanRescuePlan

Live with the League

But wait, there’s more! Mayor Wild’s work also included joining our MML team on Live with the League conversation that took place Monday. He talked about his work in advocating for the new federal stimulus package that provides direct flexible funding for communities. Mayor Wild was joined by Mike Wallace of the National League of Cities and our Lansing team. It was a great  discussion n so please check it out here in case you missed it.

Mayor Gawron Testifies

This was also a busy this week on our behalf for Muskegon Mayor and MML Board Member Stephen Gawron. Mayor Gawron helped us out recently by testifying in a state House committee in support of Governor Whitmer’s budget proposal that called for $70 million to assist cities that have a local income tax.

Muskegon is among 24 Michigan cities that collect a local income tax and these communities are facing substantial revenue losses due to COVID-19. Mayor Gawron explained the impact on his city and why this is an important issue to be addressed in the upcoming state budget.

The mayor was also active on social media on this topic tweeting this:

Thank you @gregvanwoerkom and @RepSabo92 for the opportunity to testify as Mayor @cityofmuskegon advocating for aid and relief for Michigan’s 24 income tax communities so we can serve our neighbors. @WatchMuskegon

Thank you Mayor Gawron!

Other Lansing Testimony

In addition to having members testify, our League staff also testified in Lansing in recent days. Chris Hackbarth testified this Wednesday before House Communications and Technology committee about proposed cuts to broadband and the personal property tax. John LaMacchia testified last week in front of the House Transportation Committee on speed limits. John spoke in support of HB 4014, which provides decision-making power to #Michigan communities in setting speed limits. For more information on the bill go here: http://bit.ly/37lELlQ.

Whew! A busy many days!! Let’s keep the pressure on to help our communities get state and federal COVID support.

That’s A Wrap – 100th Legislative Session Finalized

With the expiration of 14-days on the Governor’s desk this past week, the last bills presented from December’s lame duck legislative action brought the 100th Legislative Session to an official close.

All told, nearly 300 new bills were introduced between the House and the Senate during the lame duck period, following the November election.  A total of 402 bills became new Public Acts (PAs) in 2020, with 158 of those PAs being finalized during lame duck, mainly during the month of December.  In addition to the volume of new laws, the Governor leaned heavily on her veto pen during the final days of the 100th Legislative Session.  All told, 36 bills were either directly vetoed or expired without signature, resulting in a pocket veto. The legislative action of 2020 stands in stark contrast to the activity of 2019, where only 178 new PAs were signed and no bills were vetoed. 

The following updates summarize many of the main issues that League staff were engaged with during this lame duck period and those issues that we expect to see returning during the 2021-2022 legislative term.

Signed By The Governor:

  • COVID Extension to Boards of Review: HB 5824 and 5825 (PAs 251 & 297 of 2020) – The League supported these two bills which codify the Governor’s now nullified Executive Order that had extended the March 2020 Boards of Review and allowed certain additional appeals and valuation changes during the July 2020 Boards of Review.
  • Poverty exemption: SB 1234 (PA 253 of 2020) – This bill amends the current residential property tax poverty exemption to assist with various COVID-related impacts that low-income residents are facing as they attempt to apply for the exemption. Upon determination of the local unit of government, existing poverty exemption applications may remain in effect for up to three years to counteract personal and public facility limitations due to COVID-19.  A similar, 3-year extension is also authorized for local units that choose to offer the extension for eligible residents on fixed income from public assistance. The League and the City of Detroit testified in support of these bills.  Treasury negotiated a number of amendments as a condition of their support prior to passage, including requiring each local unit’s poverty exemption policy and guidelines be posted on their website and bringing uniformity to the allowance of any partial exemptions, less than 100%, unless authorized by the State Tax Commission.
  • Personal Property Tax COVID Location Freeze: SB 1203 (PA 352 of 2020) – Amends the General Property Tax Act to freeze the location of all personal property being used by remote workers as assessable only at the business’s ordinary location for the 2021 tax year.
  • Tax Foreclosure Proceeds: SB 6761137 (PAs 255 & 256 of 2020) – These bills were passed in response to the recent Michigan Supreme Court Rafaeli decision that found that all “excess” proceeds from a tax foreclosure sale must be paid to the former owner of the property. This decision could have a long-term harmful impact on County Delinquent Tax Revolving Funds that will lead to chargebacks being assessed to local taxing jurisdictions. Communities that also leverage their right of first refusal to acquire these foreclosed properties for the minimum bid may also face a more expensive path to acquiring these parcels as the court decision also puts the ability to acquire parcels for the minimum bid at risk. Following months of work group discussions and negotiations with local units, the County Treasurers Association, and the Michigan Department of Treasury, the League secured amendments to retain a process for local units to continue acquiring some parcels for the minimum bid and language providing for an annual  local fiscal impact analysis from Treasury to help evaluate and make recommendations to address any increase in chargebacks to local units.
  • OMA Virtual Meetings: SB 1246 (PA 254 of 2020)Senate Bill 1246 amends the Open Meetings Act to allow communities to continue meeting virtually due to the pandemic through March 31, 2021. The prior allowance had allowed communities to meet virtually only through the end of 2020, so this extension was a high priority for the League. This new legislation also makes technical changed requested by the League to allow a local state of emergency or state of disaster to be declared pursuant to a local ordinance (in addition to those declared under law or charter in the current law) and adds a local chief administrative officer (in addition to a local official or local governing body) as a person who may declare the local state of emergency. In addition, the bill sets requirements a public body shall follow if a meeting is held in person before April 1, 2021, including adherence to social distancing and mitigation measures recommended by the Centers for Disease Control and Prevention for purposes of preventing the spread of COVID-19 and adopting heightened standards of facility cleaning. Read this blog for additional details.
  • Historic Preservation Tax Credit: SB 54 (PA 343 of 2020) – The League has fought for a number of years to restore Michigan’s state-level Historic Preservation Tax Credit program that was repealed under former Governor Snyder. The new program will provide a 25% credit on rehabilitation expenses against state income tax. For homeowners in historic districts, this credit helps offset the costs of repairing older homes while retaining their historic attributes. SB 54 caps the total number of credits per year at $5 million in order to have minimal initial impact on the State budget. The necessary $5 million for funding of the first year of the credit was already appropriated in the current state fiscal year in anticipation of this bill’s passage.
  • COVID critical infrastructure worker: SB 1258 (PA 339 of 2020) – Public Act 238 of 2020,  adopted earlier in 2020, established certain employee protections related to exposure to COVID-19. One aspect of that law required employees to quarantine for 14 days following certain instances of exposure. Specific classes of employees/businesses are exempt from that 14-day quarantine, like health care employees and first responders. Officials from the cities of Oak Park and St. Clair Shores joined the League in advocating for language in SB 1258, which would extend the specific employee/business exemption from the quarantine requirement to include critical infrastructure employees in the energy industry and other critical municipal service categories like water and wastewater operations.  During final negotiations, the bills was amended to allow the Dept of Health & Human Services Director to designate certain categories of employees for critical infrastructure deemed necessary to preserve public health or public safety. The bill also provides additional flexibility for returning to work with negative test results and time periods for isolation and/or quarantine as determined appropriate by the CDC, as opposed to designating a specific number of days in statute. The League and other local units have submitted a letter (view it here) to the Department Director requesting the immediate designation of critical municipal operations pursuant to the language in the new law.
  • Movable Bridge Public-Private Partnerships: SB 12151218 (PAs 353-356 of 2020) – The League and Bay City officials testified in support of this package of bills that will help Bay City address the replacement of two city-owned movable bridges. Due to the unique nature of these bridges and the extraordinarily high cost of replacement, this package will provide statutory authority for Bay City to enter into a public-private partnership that will provide for the replacement of both bridges and free up substantial city resources that can be invested in other infrastructure projects.
  • Water Shut-Offs: SB 241 (PA 252 of 2020) – A new version of this bill was adopted to codify the Governor’s previous Executive Order related to water shut-offs. In early July Governor Whitmer issued Executive Order 144 that placed a moratorium on water shutoffs until December 31st of this year. Following the nullification of the Governor’s E.O.s by the Michigan Supreme Court, the Administration and the Legislature negotiated the language in SB 241 to codify the intent of that E.O. into statute. This agreement in this bill reinstates the moratorium on water shutoffs and extends the date to March 31, 2021
  • Supplemental Budget Appropriation/CARES Hazard Pay Grant Extension: SB 748 (PA 257 of 2020) – Separate from the political grappling between the Legislature and Governor over state spending for COVID relief and unemployment benefits, language was included at the League’s request to extend the time period for local units to have issued first responder hazard pay premiums under the state’s Coronavirus Relief Fund grant program and be eligible for a reimbursement.  The original language had required payroll be issued by 10/31/2020, this change allowed communities to issue their payroll by 12/29/2020 and still be eligible for reimbursement.
  • Brownfield Redevelopment Authority Administrative Change: HB 4159 (PA 259 of 2020) – Provides technical changes and oversight to brownfield redevelopment authorities. Additional amendments were adopted to section 13b to increase the number of active projects that an authority may have at one time and also allow for a corresponding increase in expenditures for administrative and operating costs relative to the number of projects. This change is also consistent with the recently updated MEDC strategic plan and their revised Community Revitalization Program guidelines.
  • Small Cell Road Commission Fix: SB 1256 (PA360 of 2020) – Late in lame duck SB 1256 was introduced and moved without a committee hearing, receiving bi-partisan support in both chambers. This bill added country roads commission to the definition of authority and clarifies the original intention of the legislation. As a result of this change, all entities within the right of way would operate on a level playing field. The League did not support this legislation but did request, and have secured a commitment from the bill sponsor (Sen Dan Lauwers), to provide additional clarification that the rate will be paid exclusively to cities, villages, and townships. A bill addressing this clarification will be introduced early in 2021 and we anticipate it being taken up shortly after committees begin to meet.

Vetoed By The Governor:

  • Solar Projects Tax Exemptions: SB 1105 & 1106 – These bills were vetoed by the Governor as premature, given the State Tax Commission’s ongoing ad hoc review committee and related analysis and recommendations were not considered in the development of the vetoed language. The League opposed these bills and submitted a letter requesting the Governor veto these bills. The two bills would have exempted all utility-grade solar projects from the industrial personal property tax and replaced that lost property tax revenue with a Payment In Lieu of Tax reimbursement of $4000 per megawatt, an arbitrary value that would have amounted to pennies on the dollar for many local units.  Local units would have also been required to approve every tax exemption application it received as long as the project matched the definition of an “qualified renewable energy facility”, regardless of local land use or economic development plans or support.  As stated in the League’s veto request letter, which you can read here, we support additional investment in alternative energy systems in Michigan, but any PILT proposal must be developed in conjunction with local government and provide a balance between promoting solar development and maintaining the services residents rely upon.
  • Meijer Warehouse Equipment PPT cut: SB 1153 – This bill, along with two other bills (SB 11491150) had proposed exempting consumer goods handling warehouse equipment from personal property, sales and use tax. The bills died on SB 1149 1150 1153 veto request letter 12.22.20the Governor’s desk when she declined to act on them before the 14 days expired at the end of the term. The League opposed all three bills and submitted a veto request letter to the Governor, which you can view here. These bills would have provided Meijer and other large commercial retailers with full sales, use, and personal property tax exemptions for all large-scale consumer goods handling warehouse distribution equipment. The League and all other local government and school groups, and the MI Department of Treasury testified in opposition to these bills and a separate three bill package that did not end up moving (SBs 1178, 1179, 1180) that would have provided similar sales, use, and personal property tax exemptions for so-called “micro-fulfillment” systems installed by retailers to facilitate filling online customer orders. The Governor had expressed concern publicly with SBs 1149, 1150, and 1153, questioning the unknown impact that these cuts would have on state and local revenues.
  • Summer Property Tax Deferral/Penalty & Interest Relief: SB 943 – Originally introduced this summer as part of the summer tax deferral proposal that was vetoed, a substitute version of SB 943 was quickly adopted and passed targeting a select number of industries hit hardest by the pandemic. This alternative approach would have allowed for the retroactive deferral of any delinquent summer tax bills and waiver of related penalties and interest from four specific industry segments, until Feb 15, 2021. The bill also provided for state reimbursement to local units for any forgiven penalties and interest owed on any of these deferred amounts.  Treasury had opposed the bill based upon concern over administering the program. The Governor declined to act on the bill before the expiration of the 14-day limit, resulting in a pocket veto.
  • Rental Inspections: SB 692 – The League was neutral on this bill as the change would have only impacted certain change of ownership situations and only for a limited time period, not indefinitely. This bill was also pocket vetoed based upon a limited rationale for the legislation.

Bills Opposed By The League That Died Without Action:

  • Zoning Preemption For Aggregate Mining: SB 431– The League strongly opposed this effort to preempt local units of government from virtually any zoning or other currently authorized regulation of gravel and aggregate mining.  This bill is expected to be reintroduced in 2021 and the League will continue to engage League members and work with our allies to block its passage.
  • Preempting Regulation Of Automated Delivery Devices: SB 892
  • Zoning Preemption For Certain Large Foster Care Facilities: HB 4095
  • Short-Term Rental Zoning Preemption: HB 4046

Legislation The League Will Continue To Pursue In 2021:

  • Headlee/Proposal A Reform: HB 6454 – This bill was introduced to address the negative interactions between Headlee and Proposal A before any property value reductions from the current pandemic recession could impact local budgets.  We are working with the bill sponsor to reintroduce this proposal in the new term.
  • Public Notice Reform: HB 6440 – This was the main bill in a more than 100-bill package that proposed reforming the current, obsolete public notice requirements throughout state law.  This is a reintroduction of a similar package that the League supported in the 2015-16 session.
  • Speed Limits: HB 4733 – This bill would have further clarified local government’s ability to adjust speed limit below the 85th percentile speed when demonstrating a situation with hazards to public safety through an engineering and safety study.
  • Stormwater Authority Creation: HB 4691 and Basement Back-Up Liability Protection: HB 4692
  • Dark Store Property Assessing Reform: SB 26 & 39
  • Veteran’s Property Tax Exemption: HB 4176

The League will also continue to prioritize restoration of cuts and additional protections for statutory revenue sharing, funding for municipal infrastructure at risk from high-water levels and shoreline erosion, and opportunities to improve funding for roads and underground infrastructure in the new term, among other priorities.

The 101st Legislature will officially be seated and commence action on Wednesday, January 13th. Since the House is re-forming under a new Republican Speaker (Jason Wentworth, R-Farwell), a new committee structure will be established, and new committee membership will need to be announced. At this point, only the incoming leadership team and the House Appropriations committee chairmanship (Thomas Albert, R-Lowell) have been revealed. Neither the House nor Senate leadership have revealed their policy agendas for the coming year. 

Following the ceremonial first day of session on the 13th, the state’s annual Consensus Revenue Estimating Conference is scheduled for 9 am on Friday, January 15th. This revenue conference will establish the baseline that the Governor’s budget team will utilize to craft her Executive Budget Recommendation that will likely be released in early February. The Governor’s State of the State address has been scheduled for Wednesday, January 27th at 7 pm.  That speech and the subsequent budget presentation will offer insight into the Administration’s legislative goals for the year. 

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