Bill Text: MI SR0124 | 2019-2020 | 100th Legislature | Enrolled
Bill Title: A resolution to memorialize the Congress of the United States to help the state of Michigan, schools, and local governments address revenue shortfalls during the COVID-19 Pandemic.
Spectrum: Bipartisan Bill
Status: (Passed) 2020-06-11 - Adopted [SR0124 Detail]
Download: Michigan-2019-SR0124-Enrolled.html
As Adopted by
senate, June 11, 2020
senate Resolution No.124
Senators Brinks, MacGregor, Moss, Hertel, Chang, Wojno, Polehanki, McMorrow, Santana, Bullock, Alexander, McCann, Geiss, Hollier, Bayer, Ananich, Irwin, Schmidt, Barrett, Bizon, Bumstead, Daley, Horn, LaSata, Lauwers, Lucido, MacDonald, McBroom, Outman, Runestad, Shirkey, Stamas, Theis, VanderWall, Victory and Zorn offered the following resolution:
Whereas, The COVID-19 Pandemic has led to an unprecedented economic crisis in the United States. Governors across the country, including Michigan Governor Gretchen Whitmer, have ordered non-essential businesses and schools to temporarily close and mandated that residents do not leave their homes, except for specific essential activities, in order to limit the spread of COVID-19 and save lives; and
Whereas, The cost of preventing the spread of COVID-19 and protecting Michigan's citizens has been a dramatic decline in state tax revenue. As businesses are shut down and residents are out of work, the projected revenue from income, sales, and other taxes has dropped precipitously. In Michigan, projected General Fund revenue has been reduced by $2 billion and projected School Aid Fund revenue has declined by $1.2 billion for Fiscal Year 2020. Even as businesses re-open and restrictions on movement are lifted, the economic fallout from fighting COVID-19 will remain. Significant budget holes are projected in Fiscal Year 2021; and
Whereas, Local governments and schools are also facing a dire fiscal situation. In addition to falling revenues from property, casino, and local income taxes, the fall in state revenue may necessitate severe cuts to state revenue sharing to local governments. Similarly, the substantial shortfall in School Aid Fund revenue may lead to similar cuts in state funding for local school districts; and
Whereas, While government revenues have declined, the costs of providing some critical public services has increased as a result of the Pandemic. About 14,000 "essential" state employees are eligible for extra pay on each paycheck during the crisis. Several municipalities have enacted hazard pay for employees who are working during the crisis. In Wayne County, sheriff’s deputies are receiving an additional $30 per day worked with additional hazard pay available for overtime shifts; and
Whereas, While Congress has already enacted some federal aid for states and local governments, its limited scope and restrictions will be insufficient to weather the effects of the Pandemic. Michigan is currently expected to receive about $3.8 billion from the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, but the funds may only be used for expenses associated with the Pandemic. In addition, since the act only provides direct aid to local governments with a population exceeding 500,000, only a handful of Michigan's nearly 2,000 local units of government will be eligible for direct payments from the federal government; and
Whereas, Increasing the flexibility states have when using CARES Act aid will help mitigate these dramatic cuts. Allowing states and local governments to use CARES Act funding for costs that are not directly associated with the Pandemic will help to address their projected revenue shortfalls. Providing flexibility will ensure aid is available to local governments that were left out of the CARES Act and further address state and local budget shortfalls; now, therefore, be it
Resolved by the Senate, That we memorialize the Congress of the United States to help the state of Michigan, schools, and local governments address revenue shortfalls during the COVID-19 Pandemic; and be it further
Resolved, That copies of this resolution be transmitted to the Speaker of the United States House of Representatives, the President of the United States Senate, and the members of the Michigan congressional delegation.
