League Victory! PA 54 Exemption Will Die in Lame Duck
The House failed to vote on HB 5780, a bill that would create an exemption to PA 54, the law barring retroactivity when contracts have expired. The legislation passed the House Local Government Commitee last week despite opposition from the League and the other local government associations.
Due to the constitutional five-day rule for legislation, all bills still in the chamber in which they originated (so all House bills still in the House for example) had to pass in order to be taken up in session this week. HB 5780 was not taken up by the House, and looks like it will die on the House floor. It would need to be reintroduced next year and start the entire process over again.
There is an unlikely chance the House will come in the third week in December, but at this point it is highly unlikely. As a result, this is a huge victory for our communities who are working hard to be efficient and cut costs!
State
Affairs Update
Senate hearing on PPT bills on Wednesday - contact your legislators!
- On Wednesday morniing the Senate Finance Committee has posted to hear testimony on House Bills 6022, 6024-26, bills that create the reimbursement scheme for personal property tax repeal as outlined in the Lt. Governor's plan.
The Lt. Governor's plan includes allowing locals to levy an essential services assessment for police and fire services as well as diverting a portion of the currently assessed statewide use tax. The League has a number of concerns with the plans including its reliance on a statewide vote of the people to divert the use tax as well as concerns over the level of reimbursement. In addition the plan appears to be an administrative nightmare for our communities.
Please contact your legislators and ask them for full and guaranteed replacement of personal property tax revenue.
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Regional Transit Authority Bill and RTA Funding Bill Pass House

Federal Update
Contact Congress to Preserve Federal Tax Exemption on Municipal Bonds - As the debate over how to reduce the deficit continues, tax expenditures—including the federal exemption for municipal bonds—are going to be on the table. Please contact your Congressional delegation and let them know how important this exemption is for communities.
Several deficit reduction proposals, including Simpson-Bowles, either cap or eliminate the tax exempt status of municipal bonds. If any of these provisions become law, they will cause either a significant decrease in infrastructure investment in our communities or taxpayers will pay billions of dollars more for higher interest costs on municipal bonds.
Please act reach out to your Members of Congress and the public to help us preserve the federal tax exemption for municipal bonds during the negotiations to address the fiscal cliff or the deficit. For contact information, click here.
Transportation Alternatives Grant Program
US Department of Transportation Seeking Local Feedback on National Environmental Policy Act
Tell Your Story: The FCC Wants to Hear About PEG in Your Community
MAP-21 Resources Available

21st Century Communities
Arts Grants Announced - The Michigan Council for Arts and Cultural Affairs has announced over $5.6 million in grants to 312 nonprofit arts and cultural organizations, educational institutions and municipalities in 47 counties throughout the state. The Council received 600 applications requesting over $8.2 million in funding.
The funds come from a state appropriation of $6.15 million recommended by Governor Snyder and approved by the legislature. The funding represented the first increase in in nearly 4 years. A complete listing of the grant awardees can be found here.
Arts and culture are essential components of thriving, vibrant communities as recognized by the MML Center for 21st Century Communities. A healthy creative sector attracts and retains residents and businesses, and produces economic benefits including jobs, a stronger tax base, downtown and neighborhood revitalization, and tourism.
City of Sault Ste. Marie & Lake Superior State University Work Together to Form a College Town
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Big Data for Small Communities
The Fund Book - Free Federal Funding Resource |