EVIP Category 3 Due June 1, 2014

The EVIP/CIP Category 3: Unfunded Accrued Liability Plan is due on June 1, 2014.

Submissions can be emailed to TreasRevenueSharing@michigan.gov or faxed to 517-335-3298 up to (and including) 11:59pm on Sunday, June 1, 2014. 

Please check Treasury’s website for additional information, including the required Certification Form 5074, available templates and FAQ’s.  The list of required documents is also available on Treasury’s website.

When filling out the Certification Form, the “Contact Name” should be the person who can answer questions pertaining to the submitted plan.  Usually this is the person who has completed the plan.  The Chief Administrative Officer’s name does not need to be the contact name (unless he or she can answer questions pertaining to the submitted plan).

Additionally the League has worked with MERS to put together a template that may be used when sending information to Treasury. That form is available online.

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

Competitive Grant Assistance Program Applications Available for Round 2

The application for FY 2014 – Round 2 of the Competitive Grant Assistance Program (CGAP) is now available.

The application is available on the Department of Treasury’s website.

There is approximately $8.0 million in CGAP funding available for this round.  Applications are due to the Michigan Department of Treasury by June 25, 2014.  Starting on June 2, 2014, the grant panel will begin reviewing the grant applications submitted.  Qualified grants may be awarded on a rolling basis.

If you have specific questions you can always contact me or the Department of Treasury directly at TreasRevenueSharing@michigan.gov

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 Passes Omnibus Budget with EVIP Changes

Yesterday the House passed the omnibus budget that included changes to EVIP.

Under this proposal category 1, the dashboard, would remain in effect without change.

One change made on the House floor was to eliminate one category. As the budget passed out of committee, category 2 would require 5 percent of the second EVIP payment to be committed to road construction or preservation.This provision has been eliminated.

Category 3 as passed out of committee is now Category 2. This 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.

We appreciate the step of eliminating one burdensome EVIP requirement. It’s certainly a step in the right direction. We do, however, have significant concerns about the per capita distribution 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 the formula 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

Free Webinar Regarding Supreme Court’s Ruling on Allowing Prayer in Meetings

The National League of Cities is hosting a free webinar on May 28th. The Supreme Court’s decision in Town of Greece v. Galloway clarifies allowable prayer practices before local government bodies and state legislatures.  Join Tom Hungar, Gibson Dunn, who argued this case before the Supreme Court, Douglas Haney, City Attorney for the City of Carmel, Indiana, and Lanny Proffer, former General Counsel for the National Conference of States Legislatures, in a discussion about how the Court’s ruling affects both state and local government.

Space is limited.

Reserve your Webinar seat now at:
https://www2.gotomeeting.com/register/444252274

This FREE webinar is co-sponsored by the State and Local Legal Center, the International Municipal Lawyers Association, and the National Conference of State Legislatures.
Title: Government Prayer after Town of Greece
Date:Wednesday, May 28, 2014
Time: 1:00 PM – 2:00 PM EDT

After registering you will receive a confirmation email containing information about joining the Webinar.
System Requirements
PC-based attendees
Required: Windows® 8, 7, Vista, XP or 2003 Server

Mac®-based attendees
Required: Mac OS® X 10.6 or newer
Mobile attendees
Required: iPhone®, iPad®, Android™ phone or Android tablet

Summer Minnick is the Director of Policy Initiatives and Federal Affairs. She can be reached at 517-908-0301 or sminnick@mml.org.

White House Releases Long Term Transportation Proposal

Last week, the White House released it’s long term Transportation Bill. This is in the midst of a federal transportation crisis, as Congress struggles with how to address the insolvency of the Highway Trust Fund – set to run out of money by the end of the summer. It is unclear if Congress will be able to come to a resolution on a long term fix in the middle of the mid term election cycle, or if they’ll scramble to find a short term fix until the lame duck session. The Press Release is listed below:

DOT 39-14
Tuesday, April 29, 2014
Contact: Press Office
Tel: 202-366-4570

Secretary Foxx Sends Transportation Bill to Congress
GROW AMERICA Act would create jobs, provide certainty for country’s future growth

WASHINGTON – U.S. Transportation Secretary Anthony Foxx today unveiled a long-term transportation bill he is sending to Congress for consideration as the House and Senate face looming deadlines to avoid the economic uncertainty and job loss that would ensue if the Highway Trust Fund runs out of money this summer. The GROW AMERICA Act reflects President Obama’s vision for a four-year surface transportation reauthorization bill that would create millions of jobs and lay the foundation for long-term competitiveness, rebuilding crumbling roads and bridges while providing much-needed certainty for local and state governments and addressing the country’s future needs.

“I visited eight states and 13 cities as part of my Invest in America, Commit to the Future bus tour this month and everywhere I went, I heard the same thing – people want more transportation options and better roads and bridges to get them where they need to go,” said Secretary Foxx. “Failing to act before the Highway Trust Fund runs out is unacceptable – and unaffordable. This proposal offers the kind of job creation and certainty that the American people want and deserve. I have been pleased to see that members of both parties are already working together to solve these challenges, and I look forward to continuing our discussion and to supporting and building on the good work that’s already been done.”

On February 26, Secretary Foxx joined President Obama to announce a plan to address the nation’s infrastructure deficit with a $302 billion, four-year surface transportation reauthorization proposal. As outlined in the FY2015 budget, the plan will invest in our national infrastructure network, increase safety and efficiency, and provide greater access to ladders of opportunity, all without adding to the deficit, by relying on the President’s proposed pro-growth business tax reforms.

The GROW AMERICA Act is based on this plan, and represents a number of proposals that have historically attracted bipartisan support including:

• Addressing the shortfall in the Highway Trust Fund and providing an additional $87 billion to address the nation’s backlog of deficient bridges and aging transit systems;
• Creating millions of new jobs to ensure America’s future competitiveness;
• Increasing safety across all modes of surface transportation, including increasing the civil penalties the National Highway Traffic Safety Administration (NHTSA) can levy against automakers who fail to act quickly on vehicle recalls;
• Providing certainty to state and local governments that must engage in long-term planning;
• Reducing project approval and permitting timelines while delivering better outcomes for communities and the environment;
• Bolstering efficient and reliable freight networks to support trade and economic growth; and
• Creating incentives to better align planning and investment decisions to comprehensively address regional economic needs while strengthening local decision-making.

“GROW AMERICA makes the sizable investment needed to improve our country’s roads and bridges,” said Deputy Federal Highway Administrator Gregory Nadeau. “Improving U.S. infrastructure is a national priority, and will ensure America’s economy remains robust for generations yet to come.”

“The Administration’s proposal makes forward-leaning investments in ladders to economic opportunity for the many millions of Americans who want to work, or simply need a reliable and safe way to get to work,” said Deputy Federal Transit Administrator Therese McMillan. “The GROW AMERICA Act will put thousands of Americans to work on repairing and expanding our aging transit infrastructure, while training women, minorities, and veterans to fill the jobs gap in transit through innovative new workforce development programs.”

“The GROW AMERICA Act will provide rail with a predictable, dedicated funding source and the tools needed to drive the next generation of rail safety and development,” said Joseph C. Szabo, Federal Railroad Administrator.  “It lays out a comprehensive strategy to eliminate risk on railroads through data-driven enforcement, proactive safety programs that identify risk in advance, and strong capital investment.  The safety gains identified in the bill, coupled with new investments in a higher performance rail network will move rail into the 21st Century.”

“Commercial bus travel is increasingly popular and this legislation will build on our unprecedented efforts to make it even safer by expanding oversight to bus ticket brokers and the locations where motorcoaches can be inspected,” said Federal Motor Carrier Safety Administrator Anne S. Ferro. “In addition, it will ensure fair pay for long-distance bus and truck drivers who are often paid by the miles they travel, not their total time on-duty, and face economic pressure to jeopardize safety by driving beyond the mandatory limits.”

“Whether traveling by motor vehicle, walking or bicycling, we are committed to ensuring that Americans reach their destinations safely. Our approach will continue to support both safer behavior and safer vehicles to prevent deaths and injuries on our roadways,” said Acting Administrator David Friedman, National Highway Traffic Safety Administration. “As the nation’s top regulator of the automotive industry, we hold manufacturers accountable for defect and compliance issues regarding their products and are seeking to further our ability to do so in the future, including increasing civil penalty limits nearly 10 times to $300 million.”

“On a typical day, more than 6.1 million tons of hazmat move throughout our nation’s transportation network,” said Pipelines and Hazardous Materials Safety Administrator Cynthia Quarterman.  “The GROW AMERICA Act promotes efficiencies and improvements that will help PHMSA ensure that the transport of hazmat by road, rail, air and water continues to move safely and efficiently.”

Earlier this month, Secretary Foxx traveled across the country on his Invest in America, Commit to the Future bus tour, with visits to manufacturers, bridges, freight facilities, and highway projects to raise awareness of America’s infrastructure deficit. Secretary Foxx met with business leaders, stakeholders and members of communities to discuss the projects that work, projects that are needed, and to ask them to commit to a future with an American transportation system that’s second-to-none.

In the face of current uncertainty of federal transportation investment, many states have postponed or canceled needed transportation projects altogether. And without additional investment, deficiencies in our nation’s infrastructure will cost businesses more than $1 trillion every year in lost sales. Despite this growing need, the Highway Trust Fund, which provides most of the federal support for state transportation projects, is on track to start bouncing checks as early as August. In January, the Department of Transportation began posting a ticker online so the American people can track the remaining funds, available here.

Summer Minnick is the Director of Policy Initiatives and Federal Affairs. She can be reached at 517-908-0301 or sminnick@mml.org.

 

Free Webinar Outlines How Communities Can Pay for Infrastructure

Local Solutions to Pay for Your Infrastructure Projects: Infrastructure Funding & Financing

This free webinar is being hosted by the National League of Cities on Tuesday, May 13th from 2:00 – 3:00. To register, click here.

Investment in infrastructure is critical to the economic development of this nation.  Not only does it pay for much needed transportation projects, but it is a job creator, a revenue generator, and a helps promote partnerships between a variety of stakeholders.  With federal funding in jeopardy, states and localities are having to explore new funding options to pay for their transportation infrastructure investments.

The National League of Cities, along with the International Bridge, Tunnel and Turnpike Association, will be hosting this webinar to help participants understand the ins and outs of alternative financing and funding mechanisms.  Presenters will explore a variety of sources and what contributes to an effective “financing toolkit.”  Participants will hear from speakers from Austin, TX and Tampa-Hillsborough, FL on how they are collaborating with key stakeholders on transportation financing options that best serve their communities.

Speakers

Mike Heiligenstein, Executive Director, Central Texas Regional Mobility Authority, Austin, TX and President, International Bridge, Tunnel and Turnpike Association

Howard Lazarus, Director of Public Works, City of Austin, TX

Joseph Waggoner, CEO and Executive Director, Tampa-Hillsborough Expressway Authority

Summer Minnick is the Director of Policy Initiatives and Federal Affairs. She can be reached at 517-908-0301 or sminnick@mml.org.

Sample Personal Property Tax Ballot Resolution Now Available

A sample resolution supporting the statewide ballot on August 5, 2014 for Personal Property Tax reform to go into effect is now available on the League’s website here.

The campaign to pass the August 5, 2014 ballot proposal, the last step in personal property tax (PPT) reform, kicked off last month with a series of press conferences. The Michigan Citizens for Strong and Safe Communities coalition is seeking to pass a ballot referendum that would allow for use of a portion of the currently collected statewide use tax to fully reimburse communities for PPT loss.

The coalition has launched a website and you can also follow it on Facebook and Twitter.

We encourage members to support the full replacement of PPT dollars with a significantly more stable reimbursement mechanism by voting “yes” on August 5. If your community passes and/or takes up this resolution please let the League’s Matt Bach know at mbach@mml.org as he is tracking the number of resolutions among Michigan cities, villages and urban townships.

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. 

Additional Testimony Taken by House Transportation Committee on Road Funding

For the Second time this week the House Transportation Committee took testimony on the transportation fund plan proposed by Speaker Bolger.

In testimony today the League thanked the legislature for the continued discussion but expressed our concern about this plan not representing a comprehensive solution and the lack of funding it provides in support of public transit. We have, and will continue to, offer suggestions on way to improve this legislation with the goal of finding a sustainable solution for the needs of Michigan’s transportation network.

Also testifying today were the Michigan Chamber of Commerce, the Michigan Environmental Council, and the Michigan Public Transit Association. Each of these three organizations echoed the need for additional funding to be added and strong support for the inclusion of transit in any long-term solution.

The League is very appreciative of the comments made by these organizations and will continue to work with them to find a solution to Michigan’s infrastructure needs.

John LaMacchia is a Legislative Associate for the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

Tax policy Committee Takes Testimony on Sales and Use Tax Bills to Fund Roads

Over the past two days the Tax Policy Committee has taken testimony on bills that would dedicate a portion of the general fund revenue from the sales tax collected at the pump and 1% of the use tax and dedicate that money to roads.

HB 5459 states that after all allocations and distributions are made, this includes the money that is sent to local communities through constitutional revenue sharing, the remaining balance will be used to fund our roads in accordance with percentages described in the transportation funding formula (Act 51). These percentages equal 39.1% to MDOT, 39.1% to County Road Commissions, and 21.8 to Cities and Villages. What this bill does not do is add additional dollars to the Comprehensive Transportation Fund and therefore public transit agencies across this state receive no increase in funding.

HB 5492 states the revenue generated from the use tax must first be reimbursed to the school aid fund and to communities for reimbursement for lost personal property tax revenue. Upon completion of those disbursements 1% shall be deposited into the Michigan Transportation Fund used to fund our roads in accordance with percentages described in the transportation funding formula (Act 51). This bill also does not do add additional dollars to the Comprehensive Transportation Fund resulting in no increase in funding for public transit.

Collectively these two bills will generate and additional $369 million for roads.

The League testified that while these bills preserve current funding and obligations to local communities, we have concerns about the continued dedication of General Fund dollars and the impact that this could have on our cities and villages in the future. The lack of investment in public transit is also an issue that needs to be addressed in these bills. We know that the economic and social benefits of having a great public transit system in Michigan is a key component to building vibrant communities.

These bills fall short of the sustainable long-term funding solution that is needed in Michigan. We will continue to work with members of the legislature to improve these bills and fix Michigan’s transportation needs.

John LaMacchia is a Legislative Associate for the League handling transportation and infrastructure issues. He can be reached at jlamacchia@mml.org or 517-908-0303.

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