House Committee Passes New EVIP Proposals and New Formula

Posted on March 25, 2014 by Dene Westbrook

This morning the House General Government Appropriations Subcommittee reported its recommendations for the general government budget that includes the Economic Vitality Incentive Program (EVIP).

Under this proposal category 1, the dashboard, would remain in effect without change. Category 2 would require 5 percent of the second EVIP payment to be committed to road construction or preservation. Category 3 would require 5 percent of the payment to be committed to unfunded liabilities. The language further says that a community that receives less than $50,000 in EVIP funding would not have to comply with the EVIP requirements.

In addition the House proposes changing how EVIP funds are distributed. A local unit would receive a 1 percent increase if they were eligible for payment in the current fiscal year or $7.14609 per capita, whichever is greater. The per capita formula would add include hundreds of additional communities to the formula without regard to service provision.

Reps. Fred Durhal (D-Detroit) and Sam Singh (D-East Lansing) both offered amendments to strip out the EVIP requirements altogether and restore full funding for statutory revenue sharing. We appreciate their efforts to eliminate these burdensome requirements.

The League has significant concerns about this language and its disregard for both local control in spending and distribution to communities who provide services. We will continue to work on language that helps invest in communities who provide essential services and does not penalize them by requiring that they spend money as the legislature dictates.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at [email protected]

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