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Advocacy Blue Arrows

Economic Vitality Incentive Program (EVIP) and PA 152

In 2012 statutory revenue sharing was eliminated and replaced by the Economic Vitality Incentive Program (EVIP). On June 9, 2014, the Michigan General Government Budget Conference Report was signed, eliminating EVIP categories 2 & 3. The requirements of EVIP category 1 remain intact, including the citizen guide, dashboard, debt service report and projected budgets. All requirements related to categories 2 & 3 (consolidation & unfunded accrued liability) are ELIMINATED. Please also note the certification deadline for category 1 is now December 1 rather than October 1. The State Department of Treasury anticipates updating its website in early August to reflect these changes. In the meantime, reference Senate Bill 767 for details. Revenue sharing begins on page 125 of that document, with specific EVIP language in Sec. 954 on page 130.

Detailed EVIP requirements/reports, forms, templates, etc. are available on the state’s website.

PA 152

Late August, 2011 brought significant change for public employers through Public Act 152 (PA 152) which creates a hard cap on the amount a public employer may contribute to a medical benefit plan for its employees and/or elected officials. PA 152 provides an option to annually elect an 80% contribution cap rather than the hard cap, and it contains a provision to allow a local unit to annually opt-out entirely.Annual elections for opt-out or the 80% cap must be made each year prior to the beginning of the medical benefit plan coverage year.

The State released new hard cap amounts on September 19, 2013 which will apply to medical benefit plan years beginning on or after January 1, 2014. This represents an increase of 2.9%.

Frequently Asked Questions on PA 152 - Michigan Department of Treasury

Sample PA 152 Resolutions

80/20:
Novi

Hard Cap:
Grosse Pointe

Opt Out:
Battle Creek
Bronson
Empire
Essexville
Saugatuck

Questions? Contact the League at info@mml.org

 

 

 

 

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