MAC COVID-19 Update
State leaders reach FY20 deal; revenue sharing funds replaced by federal COVID aid

Legislative leaders and the Governor’s Office reached final agreement this week on a plan to balance the current FY20 state budget by making large cuts to state spending and backfilling them with federal COVID aid dollars.

Of note for counties is a $97 million cut in revenue sharing from the state, replaced with $150 million in federal aid that has some restrictions.

So, the August revenue sharing payment will not go out as a revenue sharing payment. Instead, the state will be sending out payments to local governments out of a new $150 million pot of CARES funding. The amount that will be sent to each unit eligible for the August revenue sharing payment will be based on their proportion of the total pot of the $97 million that was cut.

If your county, for example, was getting 2 percent of the $97 million, you will get 2 percent of the $150 million.

MAC has confirmed that this will be a disbursement, but it is assumed at this point that counties will have to issue a report back to the State certifying that the funds were allocated to COVID-19-related expenses. Eligible allocations would include non-reimbursed public health and public safety payroll expenditures, personal protection equipment and facility modifications.

In addition to the revenue sharing changes, the budget bill has also extended the July 17 deadline to apply for the payroll reimbursement program. The deadline to apply for that now will be one week from the time this supplemental budget is enacted. This was done to accommodate those entities that were not originally eligible to apply for the funds, included public safety authorities and district health departments.

The state Treasury Department has developed a website with numbered letters, communications and resources regarding COVID-19 information for local governments and school districts. This website was created to ensure that Michigan communities have access to the most up-to-date guidance and will be updated frequently with information and resources as they become available.

For more information on this issue, contact Deena Bosworth at .
Upcoming events with MAC

  • Webinar on COVID Aid for Jails (July 23): Learn about options and details for gaining federal help to respond to COVID-19 in your jails during a digital Town Hall at 1:30 p.m. co-hosted by MAC, the Michigan Municipal League and the Michigan Joint Task Force on Jail and Pretrial Incarceration. To register for the event, click here.