Economic Vitality Incentive Program (EVIP) and PA 152

In FY 2012 statutory revenue sharing was eliminated and replaced by the Economic Vitality Incentive Program (EVIP). EVIP has three categories: Accountability & Transparency, Consolidation of Services, and Employee Compensation. FY 2013 brings new EVIP requirements/reports; complete information, forms, templates, etc. are available on the state’s website and we offer the following summary for your convenience.

DUE DATES:
Accountability & Transparency: October 1, 2012
Consolidation of Services: February 1, 2013
Employee Compensation: June 1, 2013

Applicant's Guide to the Competitive Grant Assistance Program

Payments to eligible local units are dependent upon successful completion of the requirements in each category. Eligible local units may receive payment in one, two or all three categories. Projected payments are estimated in thirds, click here for reporting requirements and payment schedules.

To qualify for each category, the local unit must:

1. Make a category’s required documents available for public viewing in the clerk’s office, or post them on a publicly accessible internet site by the due date for the category.

2. Provide the Michigan Department of Treasury the required certification form and copies of the required documents for the category by the due date for the category.

Accountability & Transparency

To qualify for this category of EVIP, eligible local units must:

Certify to the Michigan Department of Treasury (using form #4886) that by October 1, 2012 they have produced and made readily available to the public:
Submit a copy of their citizen’s guide, performance dashboard, and projected budget report to the Michigan Department of Treasury.

The state’s website provides dashboard & citizen’s guide templates and instructions, and an extensive list of links to other communities’ dashboards.

Consolidation of Services

To qualify for this category of EVIP, eligible local units must:

Certify to the Michigan Department of Treasury (using form #4887) that by February 1, 2013, they have produced and made readily available to the public, a consolidation plan as follows:

1. First Time Filers: For a city, village, township or county, the plan shall include a listing of any previous services consolidated with an estimated cost savings amount for each consolidation. In addition, the plan shall include 1 or more new proposals to increase its existing level of cooperation, collaboration, and consolidation either within the jurisdiction or with other jurisdictions, an estimate of the potential savings amount, and a timeline for implementing the new proposal.

2. Previous Filers: For a city, village, or township, the plan shall include an update on the status of the new proposals that were in the previous year's consolidation plan, including whether or not the previously proposed plan has been fully implemented, a listing of the barriers experienced in implementing the proposal, and a timeline of the steps to accomplish the proposed plan. In addition, the plan shall include 1 or more new proposals to increase its existing level of cooperation, collaboration, and consolidation either within the jurisdiction or with other jurisdictions, or a detailed explanation of why increasing its existing level of cooperation, collaboration, and consolidation is not feasible.

Submit a copy of their consolidation plan (new requirements in 2013, see above) to the Michigan Department of Treasury.

Employee Compensation

To qualify this category of EVIP, eligible local units must EITHER:

1. Certify to the Michigan Department of Treasury (using form #4888) that by June 1, 2013, they have developed an employee compensation plan, which they intend to implement, with any new, modified, or extended contract or employment agreement, for employees not covered under contract or employment agreement; and that the plan has been made available for public viewing in the clerk’s office or posted on a publicly accessible Internet site; and submit a copy of their employee compensation plan (see samples below) to the Michigan Department of Treasury.

2. Certify to the Michigan Department of Treasury (using form #4978) that by June 1, 2013, they are in compliance with 2011 PA 152; or certify they do not offer medical benefits to their employees or elected public officials; and submit supporting documentation to that effect. See below for more information on PA 152.

Sample Employee Compensation Plans

Blissfield (GLV) pop. 3,340
Coldwater (HRC) pop. 10,945
Grand Ledge (HRC) pop. 7,786
Grant (HRC) pop. 894
Muskegon (HRC) pop. 38,401
Tecumseh (HRC) pop. 8,521

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 elect an 80% contribution cap rather than the hard cap, and it contains a provision to allow a local unit to opt-out entirely. Compliance with PA 152 (including opt-out) does satisfy a local unit’s requirement related to the 3rd category of EVIP (see EVIP information above.)

The State released new hard cap amounts on September 18, 2012 which will apply to medical benefit plan years beginning on or after January 1, 2013. This represents an increase of 3.5%.

PLEASE NOTE: Treasury has modified its FAQs related to PA 152 and several items no longer conform with information provided in educational sessions with Treasury, or in their original FAQs. We are working with Treasury to resolve these conflicts but strongly caution that you work directly with Treasury on compliance questions.

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