Treasury Hosting Webinar Tuesday on CARES Funding

Related to the federal funding that local units of government received in place of their normal statutory revenue sharing payment from August 2020, Treasury released the following webinar details for local units to receive updates and training on required reporting.

The Michigan Department of Treasury (Treasury) is pleased to announce the CRLGG Program Quarterly Reporting System (OnCue) Training Webinar at 10:00 a.m. on Tuesday, October 13, 2020. This training is necessary for all CRLGG recipients.

Beginning this fall, local governments that received funding under the CRLGG program will be required to file quarterly financial status reports utilizing the OnCue reporting platform. The first of these reporting dates is Wednesday, October 28, 2020, updated from the original date of Wednesday, October 7, 2020.  In preparation for reporting, Treasury will be providing training on how to use the OnCue system, what information is required to be reported, and key reporting dates.

To register for this event, please visit https://crfreporting.eventbrite.com.

 Agenda:

  • Welcome & Introductions
  • Coronavirus Relief Funds (CRF) Reporting Requirements for Subrecipients
  • Report Processing and Key Dates
  • OnCue Reporting Tool Overview and Demonstration
  • Questions and Answers
  • Closing Remarks

If you have not completed the Grant Opening Certification Form, you must do so as soon as possible. This form was due September 23, 2020.

Unable to attend? A recording of the webinar will be uploaded to Treasury’s COVID-19 Updates for Local Governments website by October 19, 2020. 

Questions about Treasury CARES Act funded grant programs should be directed to the Treasury CARES Grant Programs Hotline at 517-335-0155 or Treas-CARES@michigan.gov.

Revenue Sharing and Grants Division

Michigan Department of Treasury

517-335-0155

Treas-CARES@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.

Governor Signs State Budget – Hazard Premium Payroll Deadline Extended

Earlier today, Governor Whitmer signed House Bill 5396, the omnibus budget for the state fiscal year that starts tomorrow, October 1st.

The Senate Fiscal Agency summary of the budget agreement can be reviewed here.

The House Fiscal Agency analysis can be viewed here.

Major components of the budget deal included:

  • A restoration of the August 2020 $97 million statutory revenue sharing cut.  For the coming year, statutory revenue sharing will be funded at the same level as originally set for last year.
  • An extension of time for communities to pay out federally funded CARES Act first responder hazard pay premiums (see below).  The payroll deadline was moved out from September 30th to October 31st, based on a Municipal League request.
  • A $35 million increase to local road agencies (counties and cities/villages) based upon the final implementation of the $600 million state income tax earmark as part of the 2015 road funding deal.
  • $24 million was appropriated as disaster relief grants to help areas around the state that have been devastated by flooding.
  • The Business Attraction & Community Revitalization Program within MEDC was increased by $20 million.
  • Federal Community Development Block Grant funding was increased by $15 million.
  • $5 million was appropriated in anticipation of the passage of the League-supported Senate Bill 54, which would restore the Michigan Historic Preservation Tax Credit program.
  • A one-time authorization of $800,000 for blight removal grants in Redevelopment Ready Communities.

In response to the Governor’s budget signing, the Michigan Department of Treasury released the following information relative to the payroll time extension for hazard pay and a reporting deadline extension for funds received as a result of the August revenue sharing swap…

Updates for CARES Act Grant Programs

The Michigan Department of Treasury has a few short updates and reminders about the First Responder Hazard Pay Premiums Program (FRHPPP) and Coronavirus Relief Local Government Grants (CRLGG) Program.

First Responder Hazard Pay Premiums Program (FRHPPP)

  • Today, the Gov. Gretchen Whitmer signed legislation that extends the deadline for when eligible hazard pay premiums must be paid to employees, changing the date from September 30, 2020, to October 31, 2020.
  • The application deadline for submitting reimbursement requests remains September 30, 2020.

Coronavirus Relief Local Government Grants (CRLGG) Program

  • The CRLGG Program’s first quarterly reporting due date will be extended. The Quarterly Financial Status Report was anticipated to be due on October 7, 2020. The federal government provided the state of Michigan an extension, so this date will be extended for local units of government.
  • A new date for local reporting has not been set yet. The reporting will be done in an online system that will launch mid-October. We are finalizing training sessions and due dates. More information will be forthcoming.
  • If a local unit does not plan to spend all their CLRGG Program funds, unused funds must be returned to the state Treasury Department. Returned payments must be accompanied by Form 5733, Treasury CARES Act Return of Funds Received Form. Form 5733 is available on the CRLGG website.

Additional Information

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 Michigan communities have access to the most up-to-date guidance and is updated frequently with information and resources as they become available.

Questions about CARES Act-funded grant programs should be directed to the Revenue Sharing and Grants Division at 517-335-0155 or Treas-CARES@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.

Treasury Releases Update on CARES Programs/Hazard Premium Payroll Deadline

(View the FRHPPP award status list by community here.)

View the full list of FRHPPP award status by community by clicking on this image.

Late yesterday the Michigan Department of Treasury released the following update on the three CARES Act federally funded programs aimed at supporting local units of government.

Federal funds that were swapped in place of the eliminated August revenue sharing payment (CRLGG) have a September 23rd deadline for receiving local units to certify their acceptance of the funds.

For those units that applied for first responder hazard pay premiums and were awaiting award notifications or advance payment of the grant funds before distributed the award to their eligible personnel, Treasury has stated they will have those award notices posted by the end of the day today (Friday), with advance payments supposedly on track for issuance next week.

The League continues to express concern to the Department and Administration and Legislative Appropriation officials that the delay in award notifications could have implications given the language in the program boilerplate requiring all hazard pay premiums must be issued to eligible employees by September 30th.  The ability to input and process the necessary payroll before the end of this month may be difficult or impossible for some communities based upon the data Treasury plans to post.  An League staff have requested an extension of that payroll distribution timeline to ensure that every community has a chance to take advantage of this program.  With legislative action on the upcoming state budget expected to occur next week, the opportunity to amend the 9/30 deadline in those state budget bills is a possibility.  Please contact the League and your legislators if you feel that an extension of the 9/30 payroll disbursement deadline would be beneficial to your community.

The following email provides the updated information that Treasury released yesterday:

The Michigan Department of Treasury is administering three local government grant programs associated with funding from the Coronavirus Aid, Relief and Economic Security (CARES) Act.

These programs include:

To date, the state Treasury Department has received and are reviewing more than 1,300 applications for both the FRHPPP and the PSPHPR Program. Because of time constraints and evolving guidance at the federal level, implementing these programs has taken longer than expected.

This update provides the latest information about the three CARES Act-funded grant programs. As new information becomes available, additional updates will be provided by the state Treasury Department.

First Responder Hazard Pay Premiums Program (FRHPPP)

Under the FRHPPP, the state Treasury Department has received more than 700 applications, totaling approximately $36 million in funding requests.

Announcements of awards are anticipated to be made online by Friday, September 18. A list of awardees will be posted on the FRHPPP webpage. Payment processing will begin on Friday, September 18.

Some grant requests may be reduced to reflect ineligible amounts. Detailed emails will be sent to applicants who received reductions.

Local units may still apply, but applications must be received by September 30, 2020 for payments that were made to employees by September 30, 2020, as state law allows.

Public Safety and Public Health Payroll Reimbursement (PSPHPR) Program

Under the PSPHPR Program, the state Treasury Department has received more than 600 applications, totaling approximately $350 million in funding requests. The Michigan Legislature has appropriated $200 million for this program, so a second round of funding for June and July payrolls is not expected.

The review process is not complete and provisional payments to applicants were issued this week. Payments are equal to 50% of the amount requested, up to a cap of $5 million. The description of the payment will include “Public Safety Public Health Payroll Reimbursement, 2020 PA 144, Sec 803.”

Once the state Treasury Department has reviewed the entire application for compliance, prorated payments will be made. As the state Treasury Department reviews the applications, there may be requests for more documentation.

Because the amount of grant requests exceeds the amount appropriated by the legislature, these payments will be prorated.

Coronavirus Relief Local Government Grants (CRLGG) Program

CRLGG Program payments were issued on August 31, 2020. A list of those payments is available by local unit. Recipients need to complete the CRLGG Grant Opening Certification, which must be signed and submitted to the Michigan Department of Treasury by 11:59 p.m. EST on September 23, 2020.

Payments under this program were issued to all eligible local units that would normally receive City, Village, and Township Revenue Sharing (CVTRS), County Incentive Program (CIP), or County Revenue Sharing (CRS). No additional units are eligible.

August statutory revenue sharing payments were eliminated under the fiscal year 2020 state budget reductions.

All the amounts received for the CRLGG Program need to comply with the Coronavirus Relief Fund (CRF) requirements.

To help determine eligible expenses, local governments should review the U.S. Department of Treasury’s CRF Guidance for examples of some eligible uses, specifically on pages three and four. This is a nonexclusive list and the guidance allows that additional items may qualify under the CARES Act. Another resource to review is the U.S. Treasury Coronavirus Relief Fund FAQ.

The state of Michigan cannot fully advise on compliance with the federal requirements. Each unit of government needs to decide on these thresholds and is responsible for meeting audit requirements, especially should federal guidance change.

Any amounts not used for CRF eligible expenses will need to be returned to the state, as prescribed by the grant agreement. Individuals will use the Return of Funds Received Form 5733, which will be coming soon.

Local units should ensure they have registered in the Federal System for Award Management (SAM).

The CRLGG Program will require additional reporting requirements as described on page 8 of the CRLGG & CRF Grant Requirements document. The state Treasury Department will provide additional information on these requirements and how this reporting will be performed in a future update.

Additional CARES Act Grant Information

Local units should review the Michigan Department of Treasury’s Numbered Letter 2020-4 that provides information on the receipting of revenues related to the FRHPPP, PSPHPR Program, and the CRLGG Program. This guidance advises entities on how to record and accrue funds granted under Public Act 144 of 2020.

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 Michigan communities have access to the most up-to-date guidance and is updated frequently with information and resources as they become available.

Questions about CARES Act-funded grant programs should be directed to the Revenue Sharing and Grants Division at 517-335-0155 or Treas-CARES@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.

September 23rd Deadline For Certification Related to August Revenue Sharing Swap

Late Friday afternoon, the Michigan Department of Treasury released their guidance and reporting packet related to the $150 million of federal CARES Act funding that was appropriated to local governments in place of the $97 million that was cut from statutory revenue sharing payments due to the elimination of the August 2020 CVTRS payment.  This budget cut and the related federal CARES funding appropriation does not impact any local unit’s Constitutional Revenue Sharing payment.  Municipalities should have received their Constitutional payments and these separate federal CARES distributions at the end of August.

The federal funding was apportioned to provide approximately 150% of what local unit would have received in their normal August CVTRS distribution and have specific expenditure restrictions dictated by the enacting federal legislation.  The Michigan Municipal League continues to urge Congressional leaders and Michigan’s congressional delegation to provide flexibility to these existing dollars and to appropriate additional direct, flexible support to all of Michigan’s local governments.  Please continue talking with your Member of Congress about the need to increase flexibility for these dollars to ensure their effectiveness and fiscal relief.

The federal funds appropriated in place of the August CVTRS payments have a certification report due to the Michigan Department of Treasury by September 23rd, followed by subsequent reporting deadlines identified by Treasury in the guidance packet.

The following is the notice that Treasury sent out on Friday…

Due to the FY 2020 budget cuts, the August payments for the City, Village, and Township Revenue Sharing (CVTRS), County Revenue Sharing (CRS) and County Incentive Program (CIP) were eliminated.  Local units did not receive these payments in August. 

However all cities, villages, townships and counties that were eligible to receive an August 2020 CVTRS, CRS or CIP payment received a Coronavirus Relief Local Government Grants (CRLGG) Program payment on August 31, 2020.  This payment is not a replacement for the revenue sharing payments eliminated in August, and can only be used for CARES Act eligible expenditures.

Local units must review the CRLGG & Coronavirus Relief Fund (CRF) Grant Requirements document and submit the CRLGG Grant Opening Certification, to the Michigan Department of Treasury by 11:59 p.m. EST on September 23, 2020 in order for the local unit to accept the CRLGG funds received.  The CRLGG Grant Opening Certification must be signed by the qualified local unit’s chief administrative officer. CRLGG Grant Opening Certifications can be returned to the Michigan Department of Treasury via email at Treas-CARES@michigan.gov or fax to 517-335-3298.

If a local unit does not submit a completed and signed CRLGG Grant Opening Certification, the local unit will be required to return the CRLGG funding received by September 30, 2020 using Form 5733 – CRLGG Return of Funds Received. Form 5733 will be located on the CRLGG website early next week.

If you have any questions, let us know.

Revenue Sharing and Grants Division – Michigan Department of Treasury

517-335-0155

 

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

Treasury Releases Updates on CARES Funded Programs Impacting Local Units

The Michigan Department of Treasury released the following updates  this afternoon on federal CARES Act programs aimed at supporting local units of government.  These programs include the $150 million in replacement funding for the suspended August 2020 statutory (CVTRS) revenue sharing payments, the $100 million hazard pay premium allowance for first responders, and the $200 million public safety/public health payroll reimbursement program for eligible April and May payroll expenses.

In addition to the August CVTRS replacement award amounts for each community, Treasury’s Revenue Sharing web page should be updated ahead of the August 31, 2020 CRLGG payment date to also include payment details for the August disbursement of Constitutional revenue sharing.

Update on Local Government CARES Act Programs

Coronavirus Relief Local Government Grants (CRLGG) Program.

Information is now available on the Michigan Department of Treasury’s website regarding the Coronavirus Relief Local Government Grants (CRLGG) Program.

Cities, villages, townships and counties that would have received an August 2020 payment under the City, Village and Township Revenue Sharing (CVTRS), County Revenue Sharing (CRS), or County Incentive Program (CIP) will receive a payment under this program on Monday, August 31st. A listing of CRLGG qualified local units and payment amounts can be found on the CRLGG website.

First Responder Hazard Pay Premiums Program (FRHPPP)

The first round of First Responder Hazard Pay Premiums Program (FRHPPP) advance payments were not issued on August 24, 2020, as planned. Unfortunately, the review process has required more time than anticipated. Treasury has dedicated additional staff to complete the reviews, which should allow Treasury to issue the advance payments in early September.

Treasury will announce the award amounts as soon as the reviews are completed allowing time for applicants to issue hazard pay premium payments to their employees by September 30th.

Please monitor the FRHPPP website for award announcements.

Numbered Letter 2020-4

The Michigan Department of Treasury issued Numbered Letter 2020-4, to assists local units of government with the receipting of revenues related to the Public Safety and Public Health Payroll Reimbursement Program (PSPHPR), First Responder Hazard Pay Premiums Program (FRHPPP) and the Coronavirus Relief Local Government Grants (CRLGG) Program. This guidance advises entities on how to record and accrue funds granted under 2020 Public Act 144.

Additional Information

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 web page 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. 

For questions please contact the Revenue Sharing and Grants Division at:

Phone: 517-335-0155

Email: Treas-CARES@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.

Governor Signs Budget Supplemental-CARES $ Application Deadline Extended One Week

Late Friday afternoon, Governor Whitmer signed the current year state budget supplemental that replaces the August CVTRS payment for all cities, villages, and townships with additional federal CARES dollars and makes some changes to the previous CARES funded programs for local units.

Following the Governor’s signature, the Michigan Dept of Treasury released the following information on the changes related to the hazard pay premium program and the public safety/public health payroll reimbursement program.

The previous July 17, 2020 application deadline for the public safety/public health payroll reimbursement program has been extended until this Friday, August 7, 2020.  League members who were not able to apply by the July 17th deadline are strongly encouraged to apply by this Friday.

In addition to the application extension, local government established public safety authorities may now be eligible to apply for both programs.  Local governments interested in the hazard pay premium program, but requiring advance funding from the program to offer the premium can now access the newly released Treasury application form as part of the program application packet documents on Treasury’s website to request this funding in advance of paying the premium.

Treasury Release:

Public Act 144 of 2020 was signed into law on July 31, 2020. This state law enables additional governmental units to now qualify for the First Responder Hazard Pay Premiums Program and the Public Safety and Public Health Payroll Reimbursement Program. Additionally, the Public Safety and Public Health Payroll Reimbursement Program deadline is extended until August 7 to allow local units of government that missed the prior deadline to submit their application.

Both grant programs use federal funding available to the state of Michigan through the Coronavirus Aid, Relief and Economic Security Act (CARES) Act. The U.S. Department of Treasury has issued a Coronavirus Relief Fund Frequently Asked Questions document for state and local governments.

Public Safety and Public Health Payroll Reimbursement Program Expanded and Extended

Previously only cities, villages, townships and counties qualified for the $200 million grant program. The legislation enacted expands eligibility to an authority, intergovernmental agency, or organization that was created by qualifying governments to provide public safety or public health services.

All qualifying local units of government now have additional time to apply for the Public Safety and Public Health Payroll Reimbursement Program. All applications must be submitted to the Michigan Department of Treasury by Friday, August 7.

Full information on this grant ― including overview of the grant, state of Michigan FAQs and application packet ― can be found on the Public Safety and Public Health Payroll Reimbursement Program webpage.

First Responder Hazard Pay Premiums Program Expanded

The legislation also expands eligibility for the First Responder Hazard Pay Premiums Program, which provides $100 million to fund additional compensation for first responders who have performed hazardous duty involving physical hardship related to COVID-19.

Now an authority, intergovernmental agency or organization that was created by qualifying governments to provide public safety or public health services can receive funding to pay first responders up to $1,000 per eligible employee.

Applications from qualifying entities will be funded on a first-come, first-served basis. An application is deemed to be submitted when all required supporting documentation has been emailed or faxed to the Michigan Department of Treasury. 

Full information on this grant ― including overview of the grant, state of Michigan FAQs and application packet ― can be found on the First Responder Hazard Pay Premiums Program webpage.

Additional Resources

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. 

Treasury staff members are available to assist and answer questions regarding these programs. The following are key contacts:

Revenue Sharing and Grants Division

Phone: 517-335-0155

Email: Treas-CARES@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.

Current Year Budget Deal Replaces August CVTRS With CARES Money

Following the Governor’s late June announcement of a budget deal to address the current year state budget shortfall due to the pandemic, the House and Senate Appropriations committees met jointly this morning to act on those negotiated reductions.

For League members, a key component of this budget deal includes a suspension of the August CVTRS payment to all counties, cities, villages and townships.  This move will save the state $97 million in their current budget.  The deal also includes replacing that lost revenue sharing with an additional $150 million in CARES Act federal money.  This new CARES money is expected to be automatically distributed to all units that would have received an August CVTRS payment and amounts to approximately 150% of what would have been received in the normal August payment.  These CARES dollars are not limited to any specific category of spending, but are open to any eligible CARES-related expense.

Additionally, League staff were able to secure some necessary changes to the previously adopted $300 million of CARES funding for hazard pay premiums for first responders and public safety payroll reimbursement to provide some needed eligibility flexibility and additional time to apply for those two programs.

Budget Director Kolb presented the budget plan and accompanying Executive Order spending reductions to a joint House/Senate Appropriations committee meeting this morning.  The Governor made over $600 million in spending cuts across various state departments. Many of the reductions were cuts to discretionary spending, hiring freezes, and temporary layoffs.  Two larger items were the use of CARES Act dollars to supplant payroll costs in Corrections and State Police.  Additional cuts in the E.O. to programs of interest to local government include; cuts to the local bridge program and Transportation Economic Development Fund in MDOT, rural blight removal grants, and PFAS and environmental remediation response funds.

In addition to the E.O. cuts, the Senate passed a supplemental spending bill (House Bill 5265) this morning, with House concurrence expected later today.  This supplemental appropriation reduced spending for the current budget year by an additional $538 million.

This supplemental bill cuts $43 million from cities, villages, and townships through a suspension of the August 2020 statutory revenue sharing payment.  The bill also cuts $53 million from counties by eliminating their August 2020 revenue sharing payment.  These dollars are replaced within the supplemental with an additional $150 million of federal CARES Act funding and will be distributed in proportion to what each municipality would have expected to receive from their normal August CVTRS payment.

In addition to these changes with revenue sharing, the language in HB 5265 also provides a series of adjustments to the $300 million of hazard pay premiums and public safety/public health payroll reimbursements that were approved earlier this month in SB 690.  Based upon feedback received from these original programs, we were able to negotiate amendments that will now allow multi-jurisdictional authorities to apply for the funding, clarifies the ability for communities who contract for public safety services with one of the counties that had previously received a direct federal allocation to qualify for these programs, and also extends the application period for the public safety payroll program for an additional week from the time the Governor signs the bill.

This bill is expected to be completed by the legislature later this evening and be signed by the Governor once it has been enrolled and presented.

Further action on the state budget fiscal year that begins on October 1st is not expected to be completed until sometime in September.

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

 

Governor Whitmer Signs CARES Funding Bill With Money for Locals

Earlier today, the Governor signed Senate Bill 690, as expected. This $880 million spending bill is the first appropriation of the roughly $3 billion that the State of Michigan had been allocated under the Coronavirus Relief Fund established within the federal CARES Act stimulus plan from earlier this spring.

As previously outlined, this spending plan includes three separate line items designed to assist local units of government:

  • $200 million is available to reimburse local units of government for their public safety and/or public health payroll expenses for the months of April and May, 2020.  According to guidance recently updated by the US Treasury, …“in light of the emergency nature of this program, a State, territorial, local, or Tribal government may presume that payroll costs for public health and public safety employees are payments for services substantially dedicated to mitigating or responding to the COVID-19 public health emergency“…  This funding will be distributed proportionally, based upon the total submissions that the MI Department of Treasury receives by July 17, 2020.
  • $100 million is available to provide grants for the payment or reimbursement of first responder hazard pay premiums.  First responders include law enforcement officers, firefighters, emergency medical technicians, paramedics, 9-1-1 operators, local unit of government corrections officers, airport public safety officers, and eligible personnel associated with ambulance operations. No more than $5.0 million would be awarded to any applicant, and the maximum reimbursement amount would be capped at $1,000 per eligible first responder.  This funding will be made available on a first come basis.
  • $25 million is available for municipal water system assistance to reimburse water utility providers for providing bill forgiveness for arrearages and fees incurred by residential water customers during the COVID-19 state of emergency and for providing a 25% discount on the total water bill for eligible customers through the end of December 2020. Reimbursement for each arrearage would be capped at $700.  The Michigan Department of Health and Human Services will be managing the distribution of these funds.

The League has worked with the State Budget Office and Michigan Departments of Treasury and Health & Human Services to host a webinar at 2 PM on July 9th to provide guidance and instruction for local units of government to assist in accessing these critical funds.  All League members are encouraged to attend this webinar.  Register now as space is limited.  The League will be working closely with our member communities in advance of the July 17th deadline for some of these dollars to ensure every eligible community is able to take advantage of this funding.

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

CARES Act Spending Agreement Reached

The Whitmer Administration and House and Senate leadership came to an apparent agreement this afternoon to begin spending more than $880 million of the state’s allocation of federal CARES Act stimulus funding.  Senate Bill 690 had originally passed the Senate with approximately $600 million in spending from the roughly $3 billion dollars that the state of Michigan was allocated earlier this year. The House Appropriations committee had proposed spending approximately $1.2 billion from those federal dollars when they moved the bill out of that committee two weeks ago.  Both the Senate and House versions included $100 million in first responder hazard pay premiums for use by local units of government. Following the House committee action, both legislative leaders and the Governor engaged in negotiations to come to an agreement on how to begin spending the state’s federal funding.

On Wednesday afternoon, the full House voted unanimously to send a substitute version of SB 690 H-3 back to the Senate for concurrence.  Following significant lobbying by the League, this new agreement provides substantial funding opportunities for local units of government and residents:

Water Utility Assistance

Includes $25.0 million for the department to reimburse water utility providers for providing bill forgiveness for arrearages and fees incurred by residential water customers during the COVID-19 state of emergency and for providing a 25% discount on the total water bill for eligible customers through the end of December 2020. Reimbursement for each arrearage would be capped at $700.

Gross

Federal

GF/GP

$25,000,000

25,000,000

$0

First Responder Hazard Pay Premiums

Includes $100.0 million for the payment or reimbursement of first responder hazard pay premiums provided to first responders who performed hazardous duty or work related to COVID-19. First responders would include law enforcement officers, firefighters, emergency medical technicians, paramedics, 9-1-1 operators, local unit of government corrections officers, airport public safety officers, and eligible personnel associated with ambulance operations. No more than $5.0 million would be awarded to any applicant, and the maximum reimbursement amount would be capped at $1,000 per eligible first responder.

 

Gross

Federal

GF/GP

 

$100,000,000

100,000,000

$0

 

Local Units of Government

Includes $200.0 million for reimbursing counties, cities, villages, and townships for eligible public safety and public health payroll expenditures under the federal CARES Act, Public Law 116-136.

Gross

Federal

GF/GP

$200,000,000

200,000,000

$0

 

Rental Assistance

Includes $60.0 million for the department to work with DHHS, the Judiciary, local community action agencies, and legal aid organizations to create a rental assistance program. Funding would be allocated as follows: not more than $4.0 million to legal aid organizations for legal services; not more than $4.0 million to local community action agencies for program case management staff and related costs; not more than $2.0 million for department administrative costs and to support a public awareness campaign; and remaining funding to pay for rent arrearages and rent subsidies to minimize evictions.

Gross

Federal

GF/GP

$60,000,000

60,000,000

$0

To access the $200 million of public safety and public health payroll reimbursement, local units of government will be required to report to the Department of Treasury by July 17, 2020, their eligible public safety and public health payroll expenses for the months of April and May 2020.  The Department is required to issue eligible payroll reimbursements by September 18, 2020 on a proportional basis if eligible submissions exceed the $200 million appropriation.  If the reimbursement requests are less than the $200 million allocation, Treasury is instructed to offer a second round of reimbursements utilizing eligible public safety and public health payroll expenses for the months of June and July 2020.

The bill now returns to the Senate for a final vote before moving to the Governor for her signature.

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

New Revenue Estimate Agreement For State Budget – Revenue Sharing Impact

The House and Senate Fiscal Agencies and Treasury officials met this morning to determine the revised revenue estimates that will be used in developing the upcoming state budget and to make any needed adjustments to the current year state budget.  You can review the Consensus agreement here – https://www.house.mi.gov/hfa/Consensus.asp.

As expected due to the abrupt shutdown in the state’s economy, this agreement identifies current year revenues running about $3 billion below what had been originally estimated back in January for the combined GF/GP and School Aid Fund budgets.  This reduction in state revenues will result in as-yet-to-be-determined level of budget cuts for the current budget and reduced resources to use when crafting the budget for the state’s upcoming fiscal year.  While we don’t know what impact these reductions may have on statutory revenue sharing, Treasury has provided a revised estimate for what the impact will be on Constitutional Revenue Sharing payments that are directly tied to the state’s Sales Tax collections.

This community-by-community estimate for Constitutional Revenue Sharing payments can be viewed here –

https://www.michigan.gov/documents/treasury/FY_2020_and_FY_2021_Projected_Constitutional_Revenue_Sharing_Payments_-_Executive_Recommendation_-_May_Consensus_-_updated_5-15-20_690792_7.pdf

Staff with SEMCOG analyzed these new state sales tax estimates and have calculated the potential bi-monthly budget impact on a per capita basis for a number of local fiscal year variations.  The SEMCOG blog and analysis can be viewed here. 

As more information becomes available on the Governor’s budget reduction plans in the next few days, we will share that information here on our blog.

The results of this consensus also further outline the critical need for additional, direct federal aid to all local units of government, as advocated for by MML and the National League of Cities through the Cities Are Essential campaign.  Economists with the University of Michigan’s Research Seminar in Quantitative Economics specifically highlighted that “State and local governments urgently need substantial help” from the federal government in order to weather this crisis. League members are urged to reach out to their Member of Congress using the tools on the Cities Are Essential campaign page to ask for their support to include direct aid to local governments in the next stimulus package.

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