MAC’s Guide to What’s on the Horizon: Legislation 2012

2011 brought a new fervor to Lansing and for better or worse there was change in state government. We saw a very fast pace from the Governor and legislature bring sweeping fundamental and programmatic changes through the process from start to finish at a volume and speed that has not been seen in my 14 years at the Capitol. So, after such a year as 2011, what can we look forward to in 2012 and what areMAC’s priorities moving forward?

Personal Property Tax:

PPT repeal will surely rear its ugly head again in 2012. MAC and its coalition partners have pledged to oppose PPT repeal unless the revenue is replaced in full and guaranteed for the future. Most state officials agree that the revenue must be replaced, but shy away from a guarantee through the Constitution. Counties and other local units have had too many promises broken (revenue sharing, PILT, court funding, jail reimbursement, etc.) to buy into a promise for shared revenue this time. We need a guarantee. Many machinations of the repeal have come and gone over the past year, thanks to the demand by local units to be kept whole in the process. If the state legislature wants a tax policy change, then it needs to foot the bill.

Revenue Sharing:

Revenue Sharing isMAC’s number one budget priority. Sixty-two counties are slated to be back in revenue sharing in fiscal year 2013, at a cost of between $170 and $180 million. It is clear that the legislature is likely to try to include counties in the Economic Vitality Incentive Program (EVIP), which requires cities, villages and townships to jump through state hoops to get what used to be their statutory revenue sharing dollars. Counties gave up taxing authority years ago in exchange for revenue sharing, andMACdoes not agree that counties have to earn it again.

County Road Commission Consolidation and Reform:

The bills to allow county commissions to consolidate their county road commission’s duties into the county board of commissioners or as a department of the county will likely be finished up in 2012. The bills (HBs 5025 and 5026) are in the House for a concurrence vote and are not likely to change again. The bills allow a county board of commissioners to eliminate an elected county road commission by putting the question on the ballot, eliminate an appointed county road commission by resolution of the county board of commissioners, requires two public hearings (for either elected or appointed) before action is taken, and sunsets the provisions after three years (January of 2015). MAC was able to make sure authority over the process was kept at the elected county board of commissioners. We hope that the bill package to allow for districting of road commissioners, should the county board deem it necessary, will also pass in 2012.

Dual Eligibles:

The state applied for a special waiver from the federal government to place funding for those who are dually eligible for both Medicaid and Medicare in the same pot. Basically a block grant system for this population would be set up by the federal and state government, mixing the two revenue sources together and reducing the amounts spent. The theory is that by managing care for these individuals, efficiencies and dollar savings will be attained. MAC is concerned that quality care be maintained, and is working with county partners to ensure their stability as quality care providers. Counties would be impacted through long-term care (county medical care facilities), mental health, and public health programs for duel eligibles.

Indigent Defense:

The Governor has appointed a Commission to look at the issue of indigent defense and make recommendations for changes to the current system. MAC has the only appointment for local government on the Commission, and will work to make sure any recommendations made will hold the county harmless.

911 Rewrite and Consolidation:

The state statute governing 911 sunsets at the end of 2014, so while there is still one more session before this issue presses to the forefront, it is not too early to start discussing county needs in the rewrite. In addition, there may be efforts made to consolidate 211 and MAC will fight any plan that forces consolidation rather than incentivizes it.

Additionally, MAC will seek to find creative solutions to alleviate the state’s mandated services including tackling our most egregious unfunded mandate, the courts, thereby aiming to peel away the layers of counties most difficult financial burden. MAC also wants to work on reform of DDA/TIFA legislation that will give counties a voice in the economic development initiatives within their borders; fitting with Governor Snyder’s efforts at a more regional approach to economic development.

MACwill also be pushing for legislation to change statute to formally allow mental health to spend its general fund dollars in jails, which is currently only allowed through budget boilerplate. MAC’s dedication to reformation of PILT, including reforms contained in SB 248 (Sen. Casperson, R-DeltaCounty) that would cap the amount of land the state can own at any given time, will continue in 2012. [MP1]

This should provide you a flavor of the items MAC will be pursuing on your behalf this year. As always, we want to hear from you, if you have questions or concerns with any of the upcoming legislation you can contact me at bodkin@micounties.org

A Happy, Safe, and Prosperous New Year to you and yours!