The Michigan Department of Treasury recently provided an update to League staff on their continuing efforts to distribute the $322 million, first-year tranche of American Rescue Plan dollars designated for Michigan municipalities that are designated as Non-Entitlement Units. These dollars were allocated to 1,724 Michigan cities, villages, and townships and are scheduled to be distributed on a per capita basis. To date, MI Treasury has received applications from than 1,660 eligible units, with every Michigan city having requested their funds, following the July 8th opening of Treasury’s application portal. Treasury is anticipating being able to begin distributing funds to completed and approved applicants by the middle of September.
Treasury’s 3rd party vendor has recently begun the process of reviewing the submitted funding request applications and auditing those submissions as a precursor to distributing the funds. As of last week, the vendor had completed the initial review of about 1/3 of the applications. Treasury’s Coronavirus Local Fiscal Recovery Fund webpage is being updated as the vendor completes their audit of applications to display the status for each application.
During this review process, a high error rate has been encountered, with many errors being relatively superficial in nature (missing or wrong signatories, missing addresses or incomplete fields, DUNS number errors, etc). Communities with errors in their application will be asked to make corrections to their applications and resubmit in order for the funds to be disbursed. To facilitate the necessary error corrections, Treasury’s vendor is expected to begin contacting communities by phone late this week/early next week to make those communities aware of the situation with their application. Following this direct contact, a letter will also be issued, likely next week, with the specific errors identified and the process for any necessary corrections and resubmission.
Treasury staff will also be participating in next week’s (Sept 7th) Live with the League broadcast to provide a more detailed update and answer any questions.
Here is some additional information shared recently by the Michigan Department of Treasury:
Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and [email protected].