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House Passes Omnibus Budget with EVIP Changes

Posted on May 7, 2014 by Dene Westbrook

Yesterday the House passed the omnibus budget that included changes to EVIP.

Under this proposal category 1, the dashboard, would remain in effect without change.

One change made on the House floor was to eliminate one category. As the budget passed out of committee, category 2 would require 5 percent of the second EVIP payment to be committed to road construction or preservation.This provision has been eliminated.

Category 3 as passed out of committee is now Category 2. This 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.

We appreciate the step of eliminating one burdensome EVIP requirement. It’s certainly a step in the right direction. We do, however, have significant concerns about the per capita distribution 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. Contact your legislators and urge them to oppose the formula changes.

Samantha Harkins is the Director of State Affairs for the Michigan Municipal League.  She can be reached at 517-908-0306 or email at sharkins@mml.org

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