The Senate Local Government Committee had a hearing on SB 395 last week. This bill would repeal PA 88 of 1913, which allows County Commissions to assess up to 0.5 mills for tourism, agriculture, and economic development.
While this is a county tool, several League members oppose the bill. Washtenaw and Gratiot counties are the only two counties currently levying this millage. The cities in those counties have said that this tool has allowed for economic development in their counties and has relieved the cities of some of the costs while still ensuring that economic development happens. In Washtenaw, this allows for funding of Ann Arbor SPARK and the CEO of SPARK testified against the bill. The cities of Ann Arbor, Saline, and Ypsilanti also indicated opposition.
Gratiot County had their County Commission chair testify against this, along with the city managers of Ithaca and Alma. Also opposing was the head of the local Chamber of Commerce. They all said that this will ensure that Gratiot can lure jobs and businesses to their technology district and communities, while allowing locals to still provide basic services. With less revenue sharing and tax collection, this will ensure that economic development can still be done, and be done regionally. Testimony from each of these entities can be provided if requested. The League also testified on behalf of our members that benefit from this, saying that this is a tool that is working and should not be remived from the law.
The Michigan Association of Counties testified against the bill, but focused only on the fact that this is one of the few tools that counties can use. They testified that cities, villages, and townships are taking their money through DDA’s, and abatements and TIF’s and renaissance zones, and this is the only tool they have to use. The Mason County Growth Alliance also testified that they are considering using this tool and opposed the legislation.
This bill is being pushed by the Farm Bureau at the insistence of the Washtenaw County Farm Bureau. They said that they don’t like that local can pass a millage without a vote of the people. Ironically, though, the Gratiot Farm Bureau send a letter against the bill and asked the Senate to retain PA 88 of 1913.
Sen. Robertson, the Chair of the committee and the bill sponsor, said that he expected this bill to come up again soon and to be passed to the Senate floor.
Andy Schor is the Assistant Director of State Affairs for the Michigan Municipal League. Contact him at (517) 908-0300 or by email at aschor@mml.org.
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