Bill Text: MI SR0126 | 2019-2020 | 100th Legislature | Introduced
Bill Title: A resolution to memorialize the Congress and President of the United States to provide additional funding to help state and local governments with significant budget shortfalls due to the COVID-19 Pandemic and to make existing COVID-19 funding more flexible.
Spectrum: Partisan Bill (Democrat 16-0)
Status: (Introduced - Dead) 2020-06-18 - Referred To Committee On Appropriations [SR0126 Detail]
Download: Michigan-2019-SR0126-Introduced.html
senate Resolution No.126
Senators Hertel, Moss, Brinks, Chang, Wojno, Polehanki, McMorrow, Irwin, Santana, Bullock, Alexander, McCann, Geiss, Hollier, Bayer and Ananich offered the following resolution:
Whereas, The COVID-19 Pandemic has significantly impacted Michigan and the United States. Since the first reported cases in Michigan on March 10, 2020, more than 64,000 Michiganders have been infected and nearly 6,000 have lost their lives to the virus. Nationally, there have been more than 1.9 million infections and 110,000 confirmed deaths; and
Whereas, Unprecedented measures have been required to mitigate the virus’ spread and protect public health. Governor Gretchen Whitmer, and other public officials across the country, have issued orders prohibiting large gatherings, closing schools, and requiring the temporary closure of nonessential businesses. The White House Coronavirus Task Force’s guidelines also recommended the closure of places where people gather when there is evidence of community transmission; 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 as well; and
Whereas, Failing to mitigate budget shortfalls will result in unprecedented cuts to core government functions and may hamper states’ ability to respond to and recover from the COVID-19 crisis. Michigan is required to have a balanced budget each year. In order to meet this requirement, cuts may be necessary to every facet of the state’s budget, including health care and economic development programs. Cutting these programs during the public health emergency and economic devastation brought by COVID-19 will make it much more difficult for the state to recover from the crisis; and
Whereas, Unmitigated deficits will negatively impact the ability of schools to safely or adequately return to operation next school year. Projected shortfalls in Michigan's School Aid Fund could require state funds for schools to be cut roughly $700 per student, or about 8.6 percent, for the current school year and further deficits are projected for the 2020-2021 school year. Allowing these reductions to occur may lead to layoffs and program cuts worse than those that occurred during the Great Recession. In addition, forcing schools to accept draconian cuts will affect their ability to adopt the precautions necessary to protect their students from COVID-19 when in-person education resumes; and
Whereas, Local governments are also facing significant budget holes and potential spending cuts. These governments are being affected by falling state and local revenue, as local tax revenue has dried up and state budget shortfalls could require significant reductions in state revenue sharing. Local units are expected to face millions of dollars in budget deficits in the coming year, and they face the possibility of cutting essential local services to make ends meet. Services that may face funding reductions include public safety funding, local infrastructure spending, and social programs for residents; and
Whereas, While Congress has already enacted some federal aid for states, 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; and
Whereas, The majority of Michigan's local governments will not receive any direct aid from the CARES Act. The act only provides direct aid to local governments with a population of 500,000 or more. As a result only five of Michigan's local governments – the city of Detroit and Wayne, Oakland, Macomb, and Kent counties - will receive federal aid under the act. This means that more than 99 percent of Michigan's 1,856 local governments have been excluded from direct federal aid; and
Whereas, Increasing the flexibility states have when using CARES Act aid and providing additional federal funding will help allay the budgetary effects of the COVID-19 Pandemic. Allowing states to use CARES Act funding for costs that are not directly associated with the Pandemic will help to address their projected revenue shortfalls. Providing additional funding will guarantee relief is available to local governments that were excluded from the CARES Act aid. Together, these actions will ensure the response meets the scale of the crisis that states and local governments are facing; now, therefore, be it
Resolved by the Senate, That we memorialize the Congress and President of the United States to provide funding to help state and local governments with significant budget shortfalls due to the COVID-19 Pandemic and to make existing COVID-19 funding more flexible; and be it further
Resolved, That copies of this resolution be transmitted to the President of the United States, the Speaker of the United States House of Representatives, the President of the United States Senate, and the members of the Michigan congressional delegation.
