Senate Considers Unfunded Mandates Package

This afternoon the Senate Local Government and Elections Committee heard testimony on Senate Bills 495-498, a package of bills that seek to induce heavier enforcement of the constitutional prohibition on unfunded mandates for local units of government.

The bills require the legislature to appropriate money in accordance with the Headlee Amendment. They also create a Local Government Mandate Panel to create a fiscal note to determine the financial impact on local units of government before legislation passes each chamber.

Among other requirements the legislation creates a Special Master in the Court of Appeals to specifically assist in Headlee cases. The legislation specifically states that local units would not have to comply with state mandates that were the subject of an action before the Court of Appeals if the court did not finally adjudicate the matter within six months.

The committee is expected to vote on this legislation next week.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

House Committee Hears Testimony on Creation of Securities Commission within LARA

The House Commerce Committee took testimony today on HB 5430 (Rep. Jenkins, R- Clayton), a bill to create a securities regulation advisory board within the Department of Licensing and Regulatory Affairs (LARA).  As introduced, this board would be made up business professionals appointed by the Governor, Senate Majority Leader and Speaker of the House.  The function of the board would be to advise the securities commissioner in LARA on issues surrounding securities.  This is as an extension of the Michigan Invests Locally Exemption legislation or MILE that became law earlier this year enabling intrastate crowd funding and further assists small businesses throughout the state to prosper and grow.  Having a mechanism such as this in place for efficient, organized, and expertized oversight of the new MILE program can help to ensure these small businesses are utilizing all proper ways of accessing and raising capital through the law.

There were some concerns from committee members over the board composition and lack of staggered terms.  Rep. Jenkins expressed her willingness to look into those issues and address them where possible. The chair indicated this could be back up in committee as early as next week.

Nikki Brown is a legislative associate for the League handling economic development and land use issues.  She can be reached at nbrown@mml.org or 517-908-0305.

Local Stock Exchange Legislation Passes Out of House Committee

Today, the House Commerce Committee passed out HB 5273, a bill dealing with Local Stock Exchanges.  HB 5273 would give businesses and residents in Michigan the ability to create a stock exchange through which intrastate stocks can be listed, bought, sold and resold. Those interested in purchasing stock from local companies would have easy access to the listings of all the companies on the exchange and show these potential investors that there is indeed a market for what they may be purchasing.  Exchanges must apply and be registered with the state as well as follow rules of operation laid out in the legislation which will provide security for all those participating, both the businesses and the investors.

There are some concerns with the Department of Licensing and Regulatory Affairs that are being worked on and will continue to be worked on as the process moves forward.

This is the next progression from the MILE/crowdfunding legislation that was passed earlier this year and we are thankful to Rep. Jenkins for working so diligently to help small businesses in our local communities grow and prosper.

Nikki Brown is a legislative associate for the League handling economic development and land use issues.  She can be reached at nbrown@mml.org or 517-908-0305. 

GAAMP changes made by Michigan Commission of Agriculture and Rural Development

Yesterday, during a special meeting, the Michigan Commission of Agriculture and Rural Development made changes to the Generally Accepted Agricultural Management Practices (GAAMPs) by making language changes to say land is not suitable for livestock if the area of the community is primarily residential (defined as more than 13 homes within 1/8 of a mile of the animals, or with any home within 250 feet of the proposed facility) that do not allow for agricultural use.  This would still allow a local community to have an ordinance allowing livestock within their community in these areas if they choose to do so. This makes it clear there is no Right to Farm protection in these types of areas.

After much testimony from many small farm operations with concerns, a vote was taken and language passed by the Commission.  There was discussion on having the committee through their annual review process discuss more urban type issues and density requirements.

As an additional result, the League and Michigan Townships Association have been asked by the Commission to communicate any concerns we hear about from our local communities to the Commission so they are aware of what issues are out lingering and any unintended consequences these changes may have made.  I would encourage you all, as you work through any urban farming issues, to please pass those concerns along to me so I can be sure they get to the Commission.

The League is supportive of this change and allowing the local communities along with it’s residents decide what might be suitable in their own communities, especially in residential neighborhoods.  We look forward to continued work with Commission and MDARD staff on these types of issues in the future.

Nikki Brown is a legislative associate for the League handling economic development and land use issues. She can be reached at nbrown@mml.org or 517-908-0305.

Michigan Senate Appropriations Committee Scraps EVIP in its Version of the Budget

Communities use revenue sharing dollars to fund services like trash collection and street sweeping to keep downtowns clean and attractive to residents and businesses.

Last week the Michigan Senate Appropriations Committee reported its version of the budget that scraps the Economic Vitality Incentive Program (EVIP) and reworks the revenue sharing formula.

The Senate’s proposal includes an additional $31 million for revenue sharing for local communities. The proposal would give a 1 percent increase to all cities, villages and townships who were eligible for EVIP in 2013-14 upon showing they have a dashboard (the only bit of EVIP left in this proposal.)

The remaining $28.6 million would be distributed based upon a formula that looks at adjusted unit type population, taxable value, and tax yield equalization. No payments of less than $3,500 would be made.

In computing unit type population, townships over 20,000 and townships over 10,000 that offer 24-hour police and fire services and water and sewer services to more than 50 percent of their residents would receive the same weight as cities.

The Senate proposal also includes $10 million in grants to communities who show signs of probable financial distress. A community could receive up to $2 million for projects or services to help them move toward fiscal stability.

The Senate Fiscal Agency has put together a comparison of the House and Senate EVIP recommendations that is available here: EVIP comparison

A huge thank you to Senator Pappageorge for removing these burdensome EVIP requirements. We are always yelling when we don’t like something, so please make sure you take time to say thank you. You can email Senator Pappageorge here.

We are also pleased that we are having a discussion about distributing scarce resources to communities who are providing services. Of the three proposals before us, this one is certainly moving in the best direction to help communities provide essential services and create the kinds of places that will attract and retain talented employees and jobs.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

Senate Scraps EVIP In Its Version of the Budget – Thank You Senator Pappageorge!

Revenue sharing should go to communities that provide services and create jobs and vibrant places where people want to live, work, shop and enjoy.

Yesterday the Senate General Government Appropriations Subcommittee reported its version of the budget that scraps the Economic Vitality Incentive Program (EVIP) and reworks the revenue sharing formula.

The Senate’s proposal includes an additional $31 million for revenue sharing for local communities. The proposal would give a 1 percent increase to all cities, villages and townships who were eligible for EVIP in 2013-14 upon showing they have a dashboard (the only bit of EVIP left in this proposal.)

The remaining $28.6 million would be distributed based upon a formula that looks at adjusted unit type population, taxable value, and tax yield equalization. No payments of less than $3,500 would be made.

In computing unit type population, townships over 20,000 and townships over 10,000 that offer 24-hour police and fire services and water and sewer services to more than 50 percent of their residents would receive the same weight as cities.

The Senate proposal also includes $10 million in grants to communities who show signs of probable financial distress. A community could receive up to $2 million for projects or services to help them move toward fiscal stability.

Sen. Pappageorge

The Senate Fiscal Agency has put together a comparison of the House and Senate EVIP recommendations that is available here: EVIP comparison

A huge thank you to Senator Pappageorge for removing these burdensome EVIP requirements. We are always yelling when we don’t like something, so please make sure you take time to say thank you. You can email Senator Pappageorge here.

We are also pleased that we are having a discussion about distributing scarce resources to communities who are providing services. Of the three proposals before us, this one is certainly moving in the best direction to help communities provide essential services and create the kinds of places that will attract and retain talented employees and jobs.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

Labor Day Bridge Walk Coordination Information Available

With the summer months soon coming upon us, it is not too early to start considering a Labor Day bridge walk in your community. Every year the Michigan Fitness Foundation encourages Michigan communities to host a Labor Day Community Walk to demonstrate their commitment to physical fitness and community involvement.

Labor Day Community Walks are an opportunity to showcase unique parks and recreation spaces in each community and in the past have included activities in public trails, parks and local bridges. These events give residents a local opportunity to participate in Michigan’s tradition of community unity through physical activity on Labor Day.

Every year more than 50,000 Michiganders travel to the Mackinac Bridge to celebrate Michigan’s tradition of physical fitness by participating in the Labor Day Bridge Walk. While not everyone is able to make the trip to the bridge, the Michigan Fitness Foundation would like to give all residents an opportunity to get active on Labor Day.  Each year the Michigan Fitness Foundations encourages communities to get active by hosting local fitness events on Labor Day weekend in conjunction with the Mackinac Bridge walk and run events.

By hosting a Labor Day Community Walk your community can inspire community unity and physical activity during this holiday weekend. We encourage a route length of approximately 5 miles and, if possible, incorporate a community bridge, although communities are welcome to tailor the walk to their unique area. Host communities will receive free promotional materials, a guide to creating and hosting a community walk and can use the Governor’s Council logo on all materials. In addition, your event has the opportunity to be endorsed by the Governor’s Council on Physical Fitness, Health and Sports. Endorsed events will be promoted by the Michigan Fitness Foundation in order to increase participation and obtain media coverage.

This year Labor Day Community Walks will take place on Monday, September 1, 2014. We hope that you will consider making your community a part of Michigan’s Labor Day tradition. To learn more about the walk, please visit http://michiganfitness.org/labor-day-community-walks. To register your community and receive free support materials, please e-mail marketingevents@michiganfitness.org with the following information:

  • Contact name
  • Contact number
  • Contact e-mail
  • Community name
  • Location and name of walk
  • Description of event
  • Number of people expected to participate

Nikki Brown is a legislative associate for the League handling economic development and land use issues.  She can be reached at nbrown@mml.org or 517-908-0305.

House Appropriations Passes New EVIP Proposal and Formula

Yesterday afternoon the House Appropriations Committee reported its recommendations for the general government budget that includes the Economic Vitality Incentive Program (EVIP).

Under this proposal category 1, the dashboard, would remain in effect without change. Category 2 would require 5 percent of the second EVIP payment to be committed to road construction or preservation. Category 3 would require 5 percent of the payment to be committed to unfunded liabilities. The language further says that a community that receives less than $50,000 in EVIP funding would not have to comply with the EVIP requirements.

In addition the House proposes changing how EVIP funds are distributed. A local unit would receive a 1 percent increase if they were eligible for payment in the current fiscal year or $7.14609 per capita, whichever is greater. The per capita formula would add include hundreds of additional communities to the formula without regard to service provision.

The League has significant concerns about this language and its disregard for both local control in spending and distribution to communities who provide services. We will continue to work on language that helps invest in communities who provide essential services and does not penalize them by requiring that they spend money as the legislature dictates. Contact your legislators and urge them to oppose these changes.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

New CRC Report Further Proof that Michigan’s Municipal Finance System is Broken

The Michigan Municipal League released a media statement today about a new report from the Citizens Research Council showing that state tax revenues increased by $1.2 billion from 2009 to 2012, while local tax revenues declined by $1.1 billion in the same time period.

Here is a portion of our statement from League President and Utica Mayor Jacqueline Noonan, which can also be viewed here:

This is further proof that the state has balanced its budget on the backs of local communities while at the same time placing additional requirements, stipulations and bureaucratic red tape on local governments in the form of the cumbersome and problematic Economic Vitality Incentive Program (EVIP).

“Simply put, these findings are an outrage,” said Noonan. “The state continues to divert revenue sharing away from local governments while the state’s surplus grows to nearly a billion dollars. After taking our money, the state then has the audacity to criticize Michigan’s cities and villages for not operating efficiently. It would be like someone taking money out of your wallet and then a day later penalizing you for not having any money. The partnership between state and local governments is broken, and it’s time to fix it.”

The Michigan Municipal League calls on the Legislature to fix the broken partnership between the state and communities and to work together to create the places where people want to live, work, play and create jobs.

Matt Bach is director of media relations for the Michigan Municipal League. He can be reached at mbach@mml.org and (734) 669-6317.

Governor Proposes Plan to Increase Recycling Access

Yesterday the Governor announced a proposal to double the state’s recycling rate over the next two years.  The proposal is intended to increase the state’s current 15 percent recycling rate to 30 percent by 2017.

The initiative focuses on several important pieces including benchmarking progress, education and technical assistance for communities, ensuring convenient access to recycling and developing market opportunities for recycled products.

The League was part stakeholder groups working through this issue in the last year. We are supportive of incentives to help local communities increase recycling access, and we look forward to continuing to work with the Department of Environmental Quality to help our communities reach these goals.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org