COUNTIES MICHIGAN INSIDE THIS EDITION. Official Voice of the Michigan Association of Counties April 2015

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1 MICHIGAN COUNTIES Official Voice of the Michigan Association of Counties April 2015 INSIDE THIS EDITION Letter from MAC President MACPAC 2015 Member List Legislative Update Michigan s public lands MAC Events Calendar Profile Iron Ask The Expert Don t give away your telecom budget in 2015 MACSC Article Five questions to help you choose the right long-term disability carrier The May 5-Proposal 1 Legislative Conference Legislative Conference attendees hear encouraging words about unfunded mandates; pack issue workshops MAC honors Advocates

2 MICHIGANCOUNTIES 2 AFFILIATE MEMBERS Area Agencies on Aging Association of Michigan CCE Central Dispatch Community Economic Development Association of Michigan Road Association of Michigan Friend of the Court Association of the State of Michigan Health Care Association of Michigan Michigan Association of Community Mental Health Boards Michigan Association of Administrative Officers Michigan Association of Clerks Michigan Association of Drain Commissioners Michigan Association of Parks & Rec. Michigan Association of Treasurers Michigan Association of Veterans Counselors Michigan Association of Equalization Directors Michigan Association for Local Public Health Michigan Association of Registers of Deeds Michigan Association Substance Abuse Coordinating Michigan Community Action Agency Association Michigan Medical Care Facilities Council Michigan Social Services Association Michigan Directors of Services to the Aging Michigan Emergency Management Association Michigan Judges Association Michigan Probate Judges Association Michigan Works! Prosecuting Attorneys Association of Michigan Six Employment Alliance UPCAP Services Inc. CORPORATE MEMBERS AAA Michigan Ameresco, Inc. American Fidelity Group Axe & Ecklund, P.C. Berends, Hendricks & Stuit Blue Cross Blue Shield of Michigan Brown & Brown of Central Michigan 44North Clark Construction Company CMI - York Risk Services Group, Inc. Consumers Energy Cummings, McClorey, Davis & Acho, P.L.C. Dickinson Wright, PLLC DTE Energy Employee Benefits Agency Energy Systems Group, LLC Environmental Consulting & Technology, Inc. Fifth Third Bank Granger Construction Hooker DeJong, Inc. Hutchinson, Shockey,Erley & Co. IBEX Insurance Agency Integrys Energy Services Michigan, LLC ITC Holdings Corporation Justice Benefits Kucera International, Inc. Layton & Richardson, P.C. CPA Manatron, Inc. Maner Costerisan PC MAXIMUS - Management Services Merit Network, Inc. Michigan Municipal Risk Management Authority Mika Meyers Beckett & Jones, PLC Motorola Solutions Munetrix Municipal Financial Consultants, Inc. Mutual of Omaha Insurance Company Nationwide Retirement Solutions NewMind Group - Google Noresco Security Capital Advisors, LLC Site-Safe Products, Inc. The Rehmann Group UHY Advisors MI, Inc. MICHIGAN ASSOCIATION OF COUNTIES POLITICAL ACTION COMMITTEE MACPAC 2015 MEMBERS PLatinum Level Ken Borton Jack Shattuck Gold Level Jon Campbell Evelyn Kolbe Steve Marino Silver Level Erma Backenstose Vaughn Begick Renee Beniak Jerry Doucette Larry Emig Dana Gill Michael Hanley Daniel LaFoille David Pohl Pete Redmond Shelley Taub Cletus Smith Deena Bosworth Steve Currie Timothy McGuire Otsego Ionia Allegan Oceana Macomb Otsego Bay MCMCFC Alger Osceola Saginaw Schoolcraft Clinton Cheboygan Oakland Lenawee Bronze Level Yvonne Dzurka Casey Steffee Roseann Marchetti Carl Altman Robert Boerner Howard Heidemann John Kischnick Philip Kuyers Deb Pannozzo Shelly Pinkelman Ronald Retzloff Michael Spisz Dale Swift Dennis VanDam Leroy Kangas Veronica Klinefelt Don McLean Ray Steinke John Gisler Cass Presque Isle Oscoda St. Clair Oscoda Ottawa Berrien Crawford Montcalm Oakland Branch Ottawa Gogebic Macomb Chippewa Mecosta Kalamazoo Thank you to all of the MACPAC members. To support the MACPAC, please visit our website, micounties.org.

3 The MAC staff remains very busy working on a number of issues that have potential impact on county government funding... LETTER FROM THE PRESIDENT Greetings Friends, MICHIGANCOUNTIES 3 Wow! It seems like it was just the first of the year; somewhere along the line I blinked my eyes and the first quarter of 2015 is nearly in the books. For all of the new and newly returning commissioners around the state I hope you are nicely settled into your respective positions. For us old-timers, it just seems to be going faster and faster every year. I have the honor of being friends with many of the past MAC Presidents, some whom are still serving and those whom have moved onto other endeavors. It always warms my heart to hear from those whom have served before me checking to see how I am doing, wishing me well and just checking in on the MAC organization. In past legislative sessions it seemed there was downtime as the new legislature were seated and began to find their way in the process. During my on-going service alongside the MAC staff, this is the first time in a long time that the first quarter of the year has kept the staff hopping with a number of carry-over issues and some issues that are altogether new. In addition to the legislature, there is a flurry of activity surrounding the merger of DCH and DHS into the new Michigan Department of Health and Human Services. While we are not clear on all of the goals the state wishes to achieve through this merger; I requested staff arrange a meeting with new Director Nick Lyon and myself. As Dana Gill, Renee Beniak, Ruth MacAlpine and I met with Mr. Lyon, it became clear that many questions remain pertaining to the area of service delivery. That having been said, in true MAC fashion, we pledged to work through the merger and encouraged Mr. Lyon to include county government in the planning of service delivery, which always makes service transitions and implementation go so much better. One of the issues that is beginning to concern me is the flurry of legislation being proposed that adds expense to the state budget. As the recently appointed Funding Chairman of the Michigan Indigent Defense Commission, I can truly say that at this early point the funding numbers are indeterminate as to our eventual request to the legislature to fund implantation of the various plans down the road. Moreover, there have been other bills introduced that limit, cut, and transfer funding from the state. We as representatives of county government, need to remain on guard of additional acts by the legislature that limit or divert county funding sources in an effort to make themselves look good. We must always encourage the state to either replace county funding they eliminate or relieve the county of some mandated responsibilities to cover the cost of the cuts. The MAC staff remains very busy working on a number of issues that have potential impact on county government funding and/or services; corrections reform, changes to the child welfare system and foster-care, dark stores, tax capture districts, and of course road funding have kept staff very busy. One of the issues we are watching closely and working on is the change in age from 17 to 18 years of age for individuals to be adjudicated in the adult court and penal system. While this sounds somewhat innocuous, we are working to make sure this does not become a huge cost shift from our adult systems and DOC to the juvenile justice system, which could be detrimental in many counties across the state. The road issue has proven to be a hot button item across the state. There are a number of clean up provisions in the proposal that will send funding where it was supposed to go, and in turn dedicate more funding to the decaying road system both locally and at the state level. The ramp up provision allows the state to pay off previous road project bonds while preparing a long term solution for the road funding dilemma in Michigan. While some do not like the plan as it has been prepared and presented, my fear is that failure of this issue will force the issue to go dormant until late 2016; while the crisis of our roads and bridges will continue to get worse. I have also heard proposals of cutting the existing state budget to pay the road costs. I am puzzled how this would work based on nearly a decade of continuous budget cutting at all levels due to the economy. Moreover, the issue of the state bond payments and local road funding remains unaddressed in such plans. With all of this said, I ask that you consider joining me in not only advocating for county government from our respective positions, but also help us advocate at the legislative level by considering a generous donation to the MAC-PAC. We seem to be lagging behind our sister organizations, which gives them a leg up on affecting issues important to local government. We are also making a strong effort to try and hold the Caucus together, which are the members of the legislature that used to sit with us on their respective county commissions. I closing, I would like to wish you all a safe and wonderful spring right here in the various counties that make up Pure Michigan! Jon C. Campbell President, MAC Board of Directors

4 MICHIGANCOUNTIES 4 MICHIGAN ASSOCIATION OF COUNTIES LEGISLATIVEUPDATE MICHIGAN S PUBLIC LANDS Timothy McGuire, Executive Director Steve Currie, Deputy Director Yvonne Dzurka, Officer of Financial and Administrative Services Deena Bosworth, Director of Governmental Affairs Dana Gill, Governmental Affairs Associate Derek Melot, Director of Communications Casey Steffee, Governmental Affairs Assistant Kristina Garner, BCBSM/COBRA Coordinator Gabriel Zawadzki, Grant Services Program Assistant MAC BOARD OF DIRECTORS Jon Campbell, President, Allegan Jerry Doucette, First Vice President, Alger Shelley Taub, Second Vice President, Oakland Timothy K. McGuire, Secretary-Treasurer, Ingham Shelly Pinkelman, Immediate Past President, Crawford Matthew Bierlein, Director, Tuscola Kenneth Borton, Director, Otsego Michael Crawford, Director, Antrim Don Disselkoen, Director, Ottawa Pat Gardner, Director, Newaygo Michael Hanley, Director, Saginaw Veronica Klinefelt, Director, Macomb Dan LaFoille, Director, Schoolcraft Joseph Palamara, Director, Wayne Robert Showers, Director, Clinton Michael Spisz, Director, Oakland Max R. Thiele, Director, Allegan Doyle & Malinzak, PC, Legal Counsel MICHIGAN COUNTIES (ISSN ) Published Monthly By: Michigan Association of Counties 935 North Washington Avenue Lansing, MI currie@micounties.org Michigan s pleasant peninsula has attracted settlers and visitors for two centuries. The intersection of water, forests and stone have made our state a prime location for tourism and outdoor activities. Much of this advantage, though, rests on the existence and maintenance of lands held by the public. Ongoing efforts to preserve our lands, ecosystems and wildlife, as well as the provision for outdoor recreation, will suffer if Michigan s public lands are not properly managed. In Lansing, the debate continues over three key facets to this issue: How many public acres are necessary to achieve state preservation and recreation goals? How much public land can the state properly manage? How are local units of government expected to make ends meet when so much of the property in their jurisdictions are held by the public and off the tax rolls? Most of our members, especially in northern Michigan are familiar with the state s existing response: PILT, or Payments in Lieu of Taxes. Most of our members also are aware that PILT has not been enough to ensure counties have the financial resources to meet their mandated responsibilities. State Sens. Tom Casperson (R-Delta) and Darwin Booher (R-Osceola), who represent the majority of the counties with the most public land, are leading the charge to curb the acquisition of more public land and to push development of trails for public use on the land the state already owns. For years, they have been championing full and proper funding of PILT and increasing the accountability of the Michigan Department of Natural Resources (DNR). As you can see on the map, much of the land north of the Mason- Arenac line is owned either by the state or the federal government. In fact, more than 10 million acres in Michigan are held by the public. Unfortunately, much of this land lacks the infrastructure and accessibility necessary to maximize its public use. The MAC Board of Directors routinely votes to support the same goals as Casperson and Booher: To require the DNR to work with counties on land acquisitions To require full funding for PILT To require a land management plan that ensures the disposal Continued on page 5

5 MICHIGAN S PUBLIC LANDS full and on time. Hearings have already taken place on the bills and negotiations with the DNR will continue through the spring. of some public land so it can be freed up for private ownership and development To provide more funding dedicated toward outdoor recreation infrastructure MAC will keep its members updated on the progress of this critical legislation that will ensure proper protection and public use of our pleasant peninsula for the next century. In recent years, the DNR has made a concerted effort to communicate with local units of government about its land purchases and its plans for properties within a particular county s borders. DNR has told MAC that it understands Michiganians love outdoor recreation and it is working to balance that use with the need to preserve and protect our natural heritage. In 2013, DNR issued its first Public Lands Strategy plan. This plan was developed after the DNR met with the counties with the most public land, the other local units of government, constituents, business and conservation leaders and regional economic development groups. The plan recognizes the need for the DNR to work with local units to achieve common goals. State of Michigan Public Owned Lands and CFA Lands Keweenaw Houghton Ontonagon Baraga Gogebic Marquette Luce Alger Chippewa Iron It should be noted that the DNR is subject to a cap on additional land purchases until the Legislature approves of the strategic plan and lifts the cap statutorily. An attempt was made in the last Legislature to lift the cap, but it failed. In the current Legislature, several bills have been filed by Sens. Casperson and Booher that would make significant changes to the rules governing the purchase of lands and the funds available for development and management of those lands. Among them are Senate Joint Resolution C and Senate Bills 16, 39, 40 and 206. Those bills would free up more money for the state parks endowment fund for infrastructure and trail development. They also would keep the cap on DNR land purchases unless there remains in place a 5-year land strategy approved by the Legislature AND all PILT payments are made in from Page 5 Schoolcraft Mackinac Dickinson Delta Menominee Emmet Cheboygan Presque isle Charlevoix Otsego Montmorency Kalkaska Crawford Oscoda Missaukee Roscommon Ogemaw Antrim Alpena Leelanau Grand traverse Benzie Wexford Manistee Alcona Iosco Arenac Mason Lake Osceola Clare Gladwin Mecosta Isabella Midland Huron Oceana Bay Newaygo Tuscola Legend Federal Land Muskegon Montcalm Gratiot Ionia Clinton Sanilac Saginaw 2.6 Million Acres Lapeer The Nature Conservancy Land Ottawa 27,000 Acres Genesee Kent St clair Shiawassee Commercial Forest Act Lands 2.48 Million Acres Ingham Eaton Barry Allegan State of Michigan Land Livingston Oakland Forest Lands 3.97 Million Acres Park Lands 290,000 Acres Wildlife Lands 330,000 Acres Berrien 50 4/19/2012 DNR Resource Assessment Unit 25 0 Van buren Kalamazoo Cass St joseph 50 Miles Calhoun Branch Jackson Hillsdale Wayne Washtenaw Lenawee Monroe Macomb

6 MICHIGANCOUNTIES 6 THE MAY 5-PROPOSAL 1 On May 5 voters will be asked if they support increasing the sales tax from 6% to 7%. A yes vote will have a significant impact on not only how are roads are funded, but how schools and local units of governments are funded as well. How did we get here? The existing tax structure on motor fuels is confusing. Currently, the 6% sales tax on motor fuels doesn t go to roads. It goes into the sales tax formula, which is distributed the School Aid Fund (SAF) and constitutional revenue sharing. Most of the general public doesn t understand this mechanism and believes that all the taxes paid at the pump go toward roads. In addition, we have a flat tax on motor fuels. The flat tax has not kept up with the increasing costs of labor and materials that go into to fixing our roads. We are left with roads that are falling apart, which is causing a major safety issue among other issues in our state. At the end of 2014 the legislature passed a package of bills that addresses these issues. What does a YES vote do? By voting yes you are voting to increase the sales tax from 6% to 7%. You are also eliminating the sales tax on motor fuels, eliminating the flat tax on motor fuels and replacing the flat tax with a percentage based tax on the wholesale cost on motor fuels. The price at the pump is not expected to be significant (approx. $.05) and you are constitutionally guaranteeing that an expecting 1.3 billion dollars will go through PA 51. Thus fixing a structural issue with our taxes paid at the pump. By eliminating the sales tax at the pump, a hole is created in the General Fund (GF) and SAF. By increasing the sales tax from 6% to 7% we are filling that hole. The sales tax increase generates more than elimination of sales tax on motor fuels created. The legislature decided to take the extra money and increase the SAF by 300 million and increase constitutional revenue sharing by 100 million. In addition, they restored the Earned Income Tax Credit which will cost about 250 million. Finally, a yes vote will enact numerous other bills ranging from registration fee increases, warranty requirements on road projects to competitive bidding requirements on MDOT projects and some county road agency projects. In addition, the new funding would be phased in over three years. In the first and second year 800 and 400 million would toward paying down MDOT debt. May-YES MAC has consistently advocated for an investment in our infrastructure. This plan is not perfect, but does generate new money that is constitutionally guaranteed to towards our roads. Further information regarding Proposal 1 can found at or by contactiong Deputy Director Steve Currie at scurrie@micounties.org

7 MICHIGANCOUNTIES 7 ASKTHEEXPERT DON T GIVE AWAY YOUR TELECOM BUDGET IN 2015 By Abilita According to research from the Gartner group, 12 to 20 percent of business telecommunications billing charges are in error, and 85 percent of these errors benefit the carrier. This year, instead of thinking about cutting costs, how about setting an objective to stop giving free money to vendors for errors? When errors do exist, finding them and recovering the charges from vendors takes both time and a significant amount of effort. Vendors rarely solve these problems without proper motivation and it is imperative that you carefully document and adhere to their formal process for disputing charges and requesting credits. You ll also need to get re-rate calculations from your vendor to make sure the credits you receive are exactly what you are entitled to. Telecom Expense Management (TEM) is especially tricky for wireless assets because these charges are typically the most dynamic. Service changes or upgrades, voice and data pooling and device upgrades mean your invoices are constantly changing and errors in this type of environment can be difficult to detect. Therefore, it is imperative that you examine invoices on a monthly basis to ensure accuracy. Here s what we look for: Fraudulent charges added to your bill without your consent (also known as cramming) Rate increases due to expired contracts on landline Charges for unused features or services International roaming charges Charges for services or features you have asked to be disconnected Charges for devices you no longer use The absence of discounts you should be receiving Missing discounts, pricing errors, excessive support charges and incorrect service periods are all too common- actually it s how we make a living! Even if you are coming in under budget, think of what projects you could implement or hardware you could upgrade if you had 20 percent of your budget back. Abilita is invaluable in recovering charges because they know exactly how to deal with vendors to get businesses reimbursed in a timely manner. Explore the Ask the Expert section of the MAC website. Learn how this free member service can assist your county! MAC offers its members access to the best and brightest minds in the state in a variety of discipline areas to help you solve challenges you may face. These experts are willing to answer your questions and to provide you with suggestions, and they are available to you, at no cost, via . You can access these experts on our website once you have registered for site access. If you have any questions, do not hesitate to contact Derek Melot at melot@micounties.org.

8 MICHIGANCOUNTIES 8 MACSCARTICLE FIVE QUESTIONS TO HELP YOU CHOOSE THE RIGHT LONG-TERM DISABILITY CARRIER Courtesy Lincoln Financial Group When a serious accident or illness keeps one of your employees out of work for an extended period of time, long-term disability insurance can help keep their finances protected. How can you be sure you re selecting the plan that best meets your employees and your company s needs? Here s five important questions to ask when you re making this decision: 1. Can my employees work parttime without starting a new elimination period? Returning from a long-term disability is often a gradual process and sometimes employees initially need to work part time while they recover. Be sure your long-term disability plan lets your employees use total or partial disability to satisfy their elimination period, so they can return to work part time without starting a new elimination period. 2. How much income can my employees earn while they recuperate? What happens when your employees are only able to return to work on a part-time basis, but still need their full-time income? Look for a plan with a partial disability calculation that allows claimants to receive up to 99% of their pre-disability earnings (part-time income combined with long-term disability benefit payments) for the duration of their claims. 3. Is additional coverage available for more serious disabilities? Regular long-term disability benefits are a great help to insureds and their loved ones in a difficult time. But some policies go a step further, offering extra protection when it s needed most. See if your policy automatically increases the core benefit when a loss occurs resulting in a temporary or permanent serious cognitive impairment or the inability to perform Activities of Daily Living. 4. Are commissioned employees given time to get back to their full earning potential? benefit which takes their commission earnings into account helps them make the transition from disability to full productivity. 5. Does your plan offer value-added employee assistance services? When employees experience disability, income isn t the only issue. Often, individuals are also coping with emotional stress, family issues or legal concerns. When an Employee Assistance Program (EAP) is part of your plan, your employees will have access to the counseling, referrals and programs they need. The best long-term disability plans help your employees successfully move beyond their disability. Make sure your carrier s benefits protect income, promote a return to work, and provide the support your employees need as they work toward recovery. Commissioned and production-earning employees often need supplemental benefits while they rebuild their commission income to predisability levels. A supplemental

9 MICHIGANCOUNTIES 9 LEGISLATIVECONFERENCE LEGISLATIVE CONFERENCE ATTENDEES HEAR ENCOURAGING WORDS ABOUT UNFUNDED MANDATES; PACK ISSUE WORKSHOPS Nearly 300 county officials from across Michigan converged on the Lansing Center for the 2015 MAC Legislative Conference and were told that a response to the age-old problem of unfunded mandates from the state may come out of Lansing this year, and that legislative term limits may soon face a potent legal challenge. John Walsh, director of strategy for Gov. Rick Snyder, said during his keynote speech that he hopes to see new legislation limiting unfunded mandates on counties clear the Legislature before the end of the year. Walsh was referring to efforts by Sen. Tom Casperson (R-Delta) that have been supported by MAC. Moving forward, there s got to be recognition in the Legislature that the vote has a consequence, a financial consequence to the locals, Walsh said during his presentation today. Following Walsh, former House Speakers Lew Dodak and Rick Johnson interspersed stories about the ins and outs of running a legislative body with a wideranging critic of term limits. Both went so far as to say that a court challenge could dislodge the limits, which were adopted by the voters in I m told (former Senate Majority Leader Randy Richardville, who was term-limited at the end of 2014) has a real good legal position to take that to court and win, Johnson said. I ve been told that by more than one source. Johnson noted, I m a product of term limits; I voted for term limits, one of the dumbest votes I ever took as a citizen. Michigan State University President Lou Anna Simon headlined the second day of conference action, telling the assembled county officials that the university has 700 people serving counties via the MSU Extension Service. I think my fellow county commissioners and others left Lansing with a great deal of valuable information, said MAC President Jon Campbell. Some of our workshops were standing room only, such as the one on how the new Freedom of Information Act rules affect county governments. This shows that county commissioners remain committed to best practices as they serve their constituents. Among the workshop topics covered were: Michigan Tax Tribunal decisions that are vastly reducing big-box retailers property valuations; changes to the state s Freedom of Information Act; the scourge of human trafficking; regulation of medical marijuana; emergency preparedness; and the governor s Regional Prosperity Initiative. Presentations from the workshops and plenary sessions of the conference are accessible to MAC members on the private section of the MAC website, (Please note that you must register as a user of the website to access the documents.) Note: MIRS News Service in Lansing contributed to this report.

10 MICHIGANCOUNTIES 10 LEGISLATIVECONFERENCE MAC HONORS COUNTY ADVOCATES Four Michigan legislators were honored at the 2015 Legislative Conference as MAC Advocates during a breakfast presentation in Lansing. This year s honorees were: Sen. Tom Casperson (R-Delta), Sen. Vince Gregory (R-Wayne), Rep. Deborah Price (R-Ottawa) and Rep. Andy Schor (D-Ingham). MAC Governmental Affairs Director Deena Bosworth said each of the winners had displayed diligent support of county issues and county governments. Price, in accepting her specially designed Pewabic tile award, took the opportunity to urge the assembled county leaders to be more vocal in the legislative process, particularly on her bill to reform the state s public notices requirement to ease the costs on local governments. MAC EVENTS CALENDAR Friday, April 10, 2015 Environmental and Regulatory Affairs Committee Meeting 10 a.m. at MAC Headquarters Monday, April 27, 2015 Health & Human Services Committee Meeting 10 a.m. at MAC Headquarters Friday, April 17, 2015 Economic Development Committee Meeting 10 a.m. at MAC Headquarters Thursday, March 2, 2015 Judiciary and Public Safety Committee Meeting 2 p.m. at MAC Headquarters 10 a.m. at MAC Headquarters

11 COUNTYPROFILE IRON COUNTY Iron is rich with lakes and rivers. There are over 300 major lakes and numerous smaller water sites. Travel in any direction, and you ll find rivers. The Paint, the Net, the Brule, and, of course, the Iron River are among the waterways that flow freely through the county. Iron and the Upper Peninsula are beautiful areas and have been recognized for their recreational potential. Weather.com selected the Upper Peninsula as one of the Top Ten Winter Family Getaways in America. ShermansTravel selected the Upper Peninsula as one of the Top Ten Summer Destinations in the World. Area: 1,211 sq mi (3,136 km 2 ) Founded: 1855 Population: 11,516 (2013) Unemployment rate: 6.9% (Dec 2014) seat: Crystal Falls