The Community Revitalization and Business Attraction program will see a $20 million dollar increase for fiscal year 2013-2014, for a grand total of $120 million in the pot.  The governor recommended the $20 million increase, while the Senate recommended a $10 million increase and the House recommended a decrease.  The conference committee went with the governor’s recommendation and increased the program by $20 million.

At least $20 million of this $120 million pot is still to be used specifically for brownfield and historic preservation projects in the Community Revitalization portion of the program.

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.

State lawmakers are finally beginning the process of restoring more than a decade of cuts to Michigan communities.

Thanks to the urging of Michigan Municipal League members in recent days, the state’s conference committee this morning approved a 2014 state budget agreement that includes a 4.8% increase in statutory revenue sharing for local governments. In the past 12 years the state has cut local revenue sharing by more than $6 billion. Previous 2014 state budget recommendations called for no statutory revenue sharing increases to cities, villages and townships, but League staff and League members in recent days and weeks strongly encouraged lawmakers to support the Senate budget plan that included a 4.8 percent increase. It appears the League and our members have been heard. Check out this mlive.com article about the increase.

The budget also removed burdensome posting language, including the latest language that would have required local units of government to disclose the country of origin of their American flags.

The budget also included a 2.8 percent increase in constitutional revenue sharing.

Here is a statement from League CEO and Executive Director Daniel Gilmartin released to the media today:

“We are genuinely grateful to legislative leaders and Gov. Snyder for restoring a small portion of the cuts made by legislatures and governors to local revenue sharing over the past dozen years,” said Gilmartin, noting that the state has cut local revenues and used the funds to fill holes in the state budget, to reduce taxes, and for other state programs and services. “We will continue to seek additional restorations in future state budgets so local communities can also begin to share in the state’s economic recovery, just as the state budget is doing. The massive cuts to local revenue sharing have combined with other fiscal calamities, including slumping real property values, to decimate the finances of many local communities.

“When we need a cop or a firefighter at our homes or businesses, we don’t call the state capital. We call our local public safety agencies, which are largely funded by revenue sharing. When we turn on the faucet at our sinks, the water is clean largely because of revenue sharing funds. When young people are looking for great places to live, work and raise families and corporations are looking for places to locate and expand, they seek places that can deliver essential public services and that provide lifestyle attributes such as parks, art, culture, transportation alternatives to driving, and more. We hope this budget marks the start of a policy of reinvesting in Michigan cities and the end of the state’s policy of disinvestment and broken promises.”

View the full statement here on the League’s media room page.

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

This morning the House Judiciary Committee held a hearing on the Michigan Medical Marijuana Act. The League testified about the need for local control and clarity in the Act. We were joined by two city attorneys, Clyde Robinson (Kalamazoo) and Stephen Postema (Ann Arbor) who detailed how those cities have reacted to the 2008 law.

The committee appears to be taking a deliberative and thoughtful look at the Act, and we look forward to partnering with them as we move forward in this process.

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

A series of articles about the financial plight of Michigan cities is being posted from the online-publication, Bridge Magazine. Two of the best entries in the series are a guest viewpoint by Michigan Municipal League President David Lossing, Linden mayor, about the concerns municipalities have over the Economic Vitality Incentive Program (EVIP), formerly known as revenue sharing, and an article about city financial stress that prominently features comments from the League’s Anthony Minghine. These are must reads for anyone who cares about Michigan communities. There are also posts about how vibrant urban centers are able to lure young talent, the financial ratings of Michigan’s communities, what communities like Kalamazoo and Muskegon have done to stay financially solvent, a column by Mitch Bean about how the state has worsened the struggles faced by cities, and why it’s important to know the financial condition of your city.

In addition, Detroit Free Press Editorial Page Editor Stephen Henderson wrote a column about Mitch Bean’s guest viewpoint. Check it out.

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

For years the League has been working on a tax reduction loophole that was created due to the 2002 Michigan Supreme Court case of WPW Acquisition Company v. City of Troy. After Proposal A created the term taxable value, the Legislature passed legislation that allowed for an increase and decrease of certain commercial property’s taxable value based on their occupancy. This was meant to allow the taxable value of income producing property to reflect the ebb and flow of the economy.

Under that system, the City of Troy granted a reduction to WPW Acquisition Company due to a reduced occupancy. However, when the City increased their taxable value when they were more fully occupied, WPW Acquisition Company sued the City, claiming they could not increase their taxable value above 5% or the rate of inflation, whichever is less, due to Proposal A. The Supreme Court addressed the question of increases in occupancy and agreed with WPW. However, the reduction issue due to occupancy was never in question, so a legal loophole, creating tax inequity, was born.

This afternoon the Senate Finance Committee unanimously passed Senate Bill 114, a bill introduced by Senator Vince Gregory (D-Southfield) that amends the General Property Tax Act. The Act’s definition of “losses” includes an adjustment in value, if any, due to a decrease in the property’s occupancy rate, to the extent provided by law. The definition of “additions” includes an increase in value attributable to the property’s occupancy rate if a loss had been previously allowed because of a decrease in occupancy rate, or if the value of new construction was reduced because of a below- market occupancy rate.

The bill would limit the use of occupancy rates in the determination of losses to the period before December 31, 2013. The use of occupancy rates in the determination of additions would be limited to the period before December 31, 2001.

UPDATE: The 4.8 percent increase is now included in the latest budget agreement so the sample letters to the lawmakers have been removed. Read more about this good news for Michigan communities.

Michigan Municipal League Board President David Lossing sent letters to state senators and representatives Tuesday (May 21, 2013) asking for their support of the Senate’s Fiscal Year 2014 general government budget recommendation, which includes a 4.8-percent increase in funding for statutory revenue sharing, now known as the Economic Vitality Incentive Program (EVIP).

The League is asking you to also contact your state lawmakers today on this extremely important issue. To make it convenient, you can use the League’s automated letter service by going here to our Action Center. It is imperative you contact your lawmakers today or tomorrow as we expect a vote on the budget this week or early next week.

While this Senate proposal does not come close to replacing the $6 billion in local revenue sharing cut by Lansing legislators and governors since 2001, it will at least help stop the bleeding and provide desperately needed funds for local police and fire protection, road and bridge maintenance, and other essential local services.

Here is an excerpt of the letter from League President Lossing, mayor of Linden:

As the state’s economy slumped over the past dozen years, past decisions made by the Michigan Legislature to cut local revenue sharing were used to make up for the difference in the state’s budget gap. Now that Michigan is on the rebound, this modest increase to statutory revenue sharing adopted by the Michigan State Senate is reasonable and begins the process of ending fiscal pain felt by many of our communities. Cities and villages across our great state, including the city of Linden, have been tightening our fiscal belts for several years to weather this financial storm.

Now is the time to begin making strategic investments in our communities by increasing statutory revenue sharing in the FY 2013-14 budget, to make “Better Communities, Better Michigan.”

View a version of the Senate letter here. View a version of the House letter here.

The League encourages all our members to contact their lawmakers today on this issue. Feel free to write your own letter and/or use the sample letter provided in our Action Center. You can go here to get the contact information for your state officials.

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

This morning the House Regulatory Reform committee reported House Bill 4743, a bill that adds some new provisions into the existing Michigan Fireworks Safety Act.

The committee substitute combined House Bills 4743 and 4744 to allow local units of government to regulate consumer fireworks between midnight and 8 am on the day before, of and after a national holiday. You will recall that the current statute prohibits local regulation on the date before, of or after a national holiday.

The legislation also ensures fireworks safety fees will go into training for fire departments for the enforcement of the Act.

The intent is to have this legislation to the Governor before the 4th of July to give local units time to pass ordinances regulating fireworks. The bill will now be considered by the full House.

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

 Typically I like to write posts that celebrate the good things going on in communities across the State of Michigan. This serves to present a different dialogue and change the conversation from the usual norm. It is an honest effort to showcase the efforts of local leaders, from public officials, to those in business and non-profit as well as caring and thoughtful residents and neighborhood activists. But it is not meant to gloss over the challenges facing folks such as these and our communities in general. So without further delay, it is time for a reality check.

I have heard it said many times in many places over the last couple of months that Michigan is coming out of its recession. This is due to a number of factors, from the federal bailout of the auto industry to aggressive and sometimes controversial actions at the state level as well as efforts at the local level. As is usually the case it is never any one thing.

But despite all the talk about Michigan’s economic recovery there is no amount of relentless, positive action that can disguise the fact that many of our communities, large and small, still face, and without immediate policy changes will continue to face, fiscal distress.

We are all too familiar with the financial troubles besetting Detroit. However, a recent article in the on-line publication, the Bridge, brings to light the financial issues facing other cities across Michigan. And these are communities that are generally considered to be well run.

The article features a study by a private sector firm, Munetrix, which found dozens of communities around the state, from SE Michigan to SW Michigan and Northern Michigan facing financial stress.

Examples include Kalamazoo, which I had the opportunity to visit not too long ago. I was told by local officials and city staff that deep cuts to the budget will continue without some changes and as the article points out they are seeking to trim their work force through early retirement. Our state capitol city, Lansing is also facing some tough times as they try to close a $5 million deficit.

As the article notes, and my organization, the Michigan Municipal League has been pointing out for some time; it has been a series of events over the past decade that is taking their toll on local revenues.  This includes lower property values, foreclosures, $6 billion in lost state revenue sharing, limitations of Proposal A and of course the rising costs of pension and health care benefits.

 There is also a second part to this reality check and that is the worsening relationship between the state and local units. As noted above over the past decade, the state (legislatures and governors) has reduced revenue sharing payments by a total of $6 billion in order to shore up other areas of the budget. The new revenue sharing program, known as the “Economic Vitality Incentive Program” has, since its inception two years ago, only become more burdensome and less helpful as local leaders continue to do all they can to collaborate with other communities.

And this leads to some thoughts about another article I came across last week, noting that worsening relationships between state and local governments is not just confined to Michigan.

The article, titled “States Power Grab Quashes Local Governments’ Authority” is written by David Morris, director of the Public Goods Initiative at the “Institute for Local Self-Reliance. In it, he notes that Republican governors and legislatures are pre-empting and abolishing the authority of communities to protect their residents’ health and welfare.

• Earlier this year Wisconsin passed a law eliminating the authority of cities, villages and counties to require public employees to live inside city limits. Michigan banned local residency requirements for police and fire employees many years ago.
• A few weeks ago Kansas enacted a law prohibiting cities, counties and local government units from requiring private firms that contract with them to pay more than the state minimum wage or to require other benefits and leave policies.
• The Florida House recently voted to pre-empt local governments from enacting “living wage” and “sick time” ordinances. It would overrule counties, like Miami-Dade and Broward, which require companies they contract with to pay wages higher than the federal minimum wage.
• In November 2010, Pittsburgh became the first U.S. city to ban fracking within city limits.  In February 2012, the Pennsylvania legislature passed a law allowing fracking in all parts of the city, in essence abrogating cities’ traditional zoning powers to protect against noise, odors and industrial dangers.
• 19 states (including Michigan) severely restrict or abolish the right of local governments to build their telecommunications networks.

Now I don’t know about you, but I am fascinated to learn that these actions are occurring in Republican states.  And while it is true that over the course of our country’s history court cases have made it clear that municipalities are creatures of the state, it is also true that there has been much said, a lot of it critical, about the federalist nature of our system of government. And with over 300 million people now part of our great nation, it is hard to argue that some form of consistency is needed.

But, consistency in thought and action is also needed from those who argue against federalism in terms of the relationship between states and local governments.  In Michigan, time is of the essence. Local communities need a partner, not a parent, to work with them to ensure that quality services are not just maintained but enhanced. At the end of the day, this means resources must be made available through a system of governance and finance that makes sense for the 21^st century.  Without such a platform, the economic momentum we are beginning to gather will surely stall as discerning workers and business will go elsewhere to find the quality of life they say is so important to their well being.