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AGENDA
LEGISLATIVE POLICY COMMITTEE MEETING
CITY COMMISSION CHAMBERS
WEDNESDAY, MAY 25, 2022
5:30 P.M.
I. Call to Order
II. Approval of Minutes for March 24, 2021
III. Old Business
IV. New Business
1) Critical Dune Ordinance – Mayor Johnson
2) Social Media – Commissioner Ramsey
3) Federal and State Legislative Updates – Pete Wills
V. Adjourn
CITY OF MUSKEGON
LEGISLATIVE POLICY COMMITTEE
Minutes
Wednesday, March 24, 2021
5:30 pm
Via Zoom
Present: Commissioners Hood, Rinsema-Sybenga, Emory, Ramsey (arrived 6:38 pm),
Johnson, German, and Gawron.
Absent: None.
Approval of Minutes
Commissioner Rinsema-Sybenga moved, Commissioner Johnson seconded, to approve
the minutes of January 27, 2021.
MOTION CARRIED.
Goals
LeighAnn Mikesell, Director of Development Services, presented the 2021 goals for the City
of Muskegon. The goals were discussed at length at a previous goal setting meeting
Since housing impacts image, quality of life, and revenues and it was determined to be a key
focus area in the August session, staff suggests reducing the overall goals to these three:
Image, Quality of Life, Revitalize Revenues. Social Equity, Youth/Education, and Housing
remain focus areas within each of the goals, and particular action items were developed for
each focus area based on discussions at the January goal setting.
GOAL 1: IMAGE
Social Equity Focus Area
Action Item 2021-1 Develop a Diverse Workforce for All City Positions
Intentional early focus on Public Works and Public Safety
Housing Focus Area
Action Item 2021-2 Identify Developer for Froebel School Site for Redevelopment
Developer will determine the viability of saving the school building
Action Item 2021-3 Substantial Completion of Watermark Redevelopment Project
GOAL 2: QUALITY OF LIFE
Social Equity Focus Area
Action Item 2021-4 Collaborate on Workforce Development Programs
Youth/Education Focus Area
Action Item 2021-5 Partner with School Districts to Expose Students to Public
Service Career Options
Action Item 2021-6 Work with Youth and Education Stakeholders to Foster
Connections between Youth and Opportunities
Housing Focus Area
Action Item 2021-7 Expand Housing Options
Including type of house, price range, locations, rent or own, etc.
Action Item 2021-8 Balance Market Driven Options with Housing Options
Attainable for Low and Middle Income Earners
GOAL 3: REVITALIZE REVENUES
Social Equity Focus Area
Action Item 2021-9 Increase Minority Owned Businesses and Properties in Downtown
Action Item 2021-10 Increase Opportunities for Minorities to Partner in Economic Development
Action Item 2021-11 Increase Minority Owned Businesses and Properties in Lakeside and other
Commercial Districts
Housing Focus Area
Action Item2021- 12 Increase Property Values in the Urban Core and Eastside Neighborhoods
Action Item 2021-13 Increase Number of Existing Homes being Rehabilitated by Private Investors
Adjournment
Motion by Commissioner German, seconded by Commissioner Rinsema-Sybenga to
adjourn the meeting at 7:37 pm.
MOTION CARRIED.
______________________________
Ann Marie Meisch, MMC
City Clerk
Critical Dunes
• The City took control of the critical dune ordinance in 2019 in an effort to speed up review times
for applicants and to reduce their fees.
• The City accepts critical dune permit applications and forwards them to our consultant, Point
Blue, for review. Point Blue then makes a recommendation on the issuance of the permit.
• The State (EGLE) allows themselves up to 90 days to respond to critical dune applications. In
talking with previous applicants, staff has learned that EGLE often approves applications well
before that deadline, but sometimes may wait until the deadline to respond.
• The City usually processes critical dune applications in about 20-30 days.
• Please see the Joint Permit Application Fees document on the following page that lists the fees
for a critical dune permit review by EGLE. Fees for a new home appear to cost about $1,100, but
fees for a deck addition range from $150-$250.
• The City charges $1,500 for a critical dune permit. This was recently increased from $1,100
because EGLE is now requiring that we conduct post-construction inspections, which will need
to be done with our consultant. Refunds may be given if the consultant fees are not as much as
anticipated, but that is a rare occurrence. Sometimes the consultant fees exceed the amount of
the application fee. The Deck expansion in 2019 cost $2,100, but the applicant was only charged
$1,500. The consultant fees for the project at 3561 Woodlawn Ct in 2021 to bury power lines
were $1,168, but the application fee was only $1,100.
• Consulting fees for smaller projects appear to cost a lot more than they would if reviewed by
EGLE. The consulting fee for a fence addition at 1550 Nelson was $431.
• Staff has processed 20 applications since 2019.
• We have already processed 6 this year and anticipate more.
• Each application takes approximately 3-4 hours of staff time.
• Additional calls about potential projects take approximately 1 hour of staff time per week.
• We have been audited twice since 2019 and anticipate that we will be audited every year from
now on. Each audit takes about 40 hours of staff time and additional costs from the consultant.
• We have just completed the second audit and are no longer in violation.
Permits Issued
Year Public Private Total
2019 3 3 6
2020 0 2 2
2021 1 5 6
2022 0 6 6
Total 4 16 20
Critical Dune Map
State / Federal Report, May 2022
STATE
State Policy Issues
Bill # Sponsor Detail Status Position
HB 4129 Marino Requires Secretary of State to post a list of local clerks who are not current with continuing election 3/9/22 Passed House; MML opposed
education training on Department of State website. Senate Elections Comm
HB 4530- Calley, Filler, Bills would combine May & Aug elections into a June election; January 2023 effective date 4/27/21 Passed MML/Clerks
Whitesett, Assn/Sec of
4531- House; Senate
Puri State support
4532- Elections Comm
4533
HB 4722 Lightner, Would define Short Term Rentals (STR) as residential uses of property and restricts municipality's 10/27/21 Senate Reg MML opposed
SB 446 Nesbitt ability to regulate them. Mandates all STRs are a by-right residential use of property, permitted in all Reform; SB 446 Senate
residential zones. Cannot be subject to a special use or conditional use permit, or any procedures Floor
different from those required for other dwellings in the same zone. Bill would eliminate ability to
inspect STRs unless inspecting all dwellings in that zone, including owner-occupied.
HB 4985 Damoose Short Term Rental compromise; see below 6/15/21 House MML support
Commerce
HB 5054 Albert Municipal pension proposal 3/2/22 Senate Approp MML support
HB 5090 Clements Social Districts/Special Events - creates new outdoor service area permit allowing an on-premises Signed 3/10/22, PA 27 MI Downtown
licensee to have outdoor service in an outdoor service area under certain conditions; makes a of ‘22 Assn support
number of changes but would permit MLCC to issue a special license whose event is to be held
within a commons area located within a social district; would allow non-profit beer tent special
licenses within social district without shutting it down.
HB 5351 S. Johnson Doubles the Personal Property Tax exemption for small businesses from $80 to $160K; $40-50M impact Signed 12/15/21, PA 150 MML opposed
of ‘22
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39-bills Senate Elections Package – Senate GOP package addresses concerns with election security, 6/16 SB 285, 303, 304 MML support
operations and access. MML supports SB 278-300. passed Senate SB 278-300
SB 5 Wojno Modifies the number of days fireworks are permitted per year and increases penalties for violations 1/13/21 Senate MML support
of the Michigan Fireworks Safety Act. Local unit with pop density of over 3400 per sq mile may enact Regulatory Reform
ordinance that regulates fireworks except on News Year Eve, Memorial Day, July 4, Labor Day
SB 565 Bumstead FY21 budget supplemental drinking water and water infrastructure improvements - $15M 4/12/22 Signed MML support
appropriation for Windward Pointe property, PFAS remediation activities to address groundwater,
drinking water, surface water and fishery resources.
SB 473- Victory, 12-bill bi-partisan package to address police accountability and reform across law enforcement 5/25/21 introduced TBD
484 Chang agencies. MCOLES to develop guidelines/policies for investigations of officer-involved deaths
SB 769- LasSata, MEDC economic dev incentive package; Creates the Strategic Outreach and Attraction Reserve 12/29/21 SB 769 and N/A
771 & HB Vanderwall, (SOAR) fund, an umbrella fund that fuels the following secondary funds: 771 signed; 12/15/21
5602- etc - The Michigan Strategic Site Readiness Fund (MSSRF), which provides grants, loans and other HB 5602 signed
5604 economic help to generate investment-ready sites prepared for agreeable development.
- The Critical Industry Fund (CIF), which provides the money needed to “close the deal." Whatever
the company needs to make the numbers work, this fund helps. Gaps in equitable opportunity, small
business aid and consideration of environmental impacts.
SB 360- Multiple Employer-supported housing credit; Attainable Housing & Rehab; Re-establish Construction Code SB 360-364, 422, 432 MML, Home
364, 422, Senators Promulgation Committee; Expand NEZ’s to Additional Local Gov Units; Residential Facilities 6/17/21 House Builders, GR
432 Exemption; Allow PILOTs for Housing; Community Land Trusts Chamber
support
HB 4649- Multiple Employer-supported housing credit; Attainable Housing & Rehab; Re-establish Construction Code House Comm since MML, Home
50, 4647- Rep’s Promulgation Committee; Expand NEZ’s to Additional Local Gov Units; Residential Facilities 4/2021 Builders, GR
49, 4827, Exemption; Allow PILOTs for Housing; Community Land Trusts Chamber
support
4713-14
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FALL GENERAL ELECTION, NOVEMBER 8, 2022
Governor
• Democrat Party candidate(s) –
Gov. Gretchen Whitmer
• Republican Party candidate(s) (August 2 Primary) –
Donna Brandenburg – Byron Center businesswoman
Michael Brown – Berrien County resident and MSP Captain
James Craig – former Detroit Chief of Police
Tudor Dixon – Norton Shores businesswoman and media personality
Perry Johnson – businessman
Ryan Kelley – Allendale resident
Michael Markey – Grand Haven small business owner
Ralph Rebandt – Oakland County Clergy
Kevin Rinke – Oakland County businessman
Garrett Soldano – Kalamazoo chiropractor
U.S. House (new 3rd Congressional District map)
• Includes nearly two-thirds of Kent County; half of Ottawa; along with a third of Muskegon Co, including
the City of Muskegon.
• Republican candidate – current Congressman Peter Meijer
• Democrat candidate – N/A
Michigan state Senate (new 32nd Senate District map)
• Include nearly all of Muskegon County, except townships in the SE portion of the county; Oceana County,
Mason County, portion of Manistee County, and Benzie County
• Republican Candidate – current Sen. Jon Bumstead
• Democrat Candidate – current Rep. Terry Sabo
Michigan state House – (new 87th state House District map)
• Includes Muskegon and Muskegon Heights, N. Muskegon, and rural areas north of North Muskegon along
the shore and east along M-120 to Twin Lake.
• Republican Candidate – Michael Haueisen
• Democrat Candidates – Will Snyder / Brennen Gorman / Debra Warren / Eddie Jenkins III
NOVEMBER BALLOT PROPOSALS
Legislative Term Limits reform
• The legislature recently passed, by the required two-thirds vote, a proposed constitutional amendment
that would ask voters to change the constitution and allow legislators to serve a combined 12 years in
either chamber.
• House Joint Resolution R, mainly takes from the Voters For Transparency and Term Limits proposal and
includes a requirement that constitutional officers and legislators personally disclose where they are
receiving their income. Under the proposal, starting April 15, 2024, the governor, lieutenant governor,
secretary of state and attorney general must electronically file a yearly financial disclosure report with the
Department of State.
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• Since the legislature voted to put this issue on the ballot, there is no continued need for interest group-
based coalitions to collect signatures who were pushing the same idea. Putting the proposal in front of
the people requires either 425,059 signatures to the Bureau of Election by July 11 or a two-third vote by
both chambers of the Legislature by early September.
• If successful, it would be the first time since term limits was adopted by voters in 1992 that any changes
to the constitutional amendment would have made a ballot.
• Michigan's term limits law of three two-year House terms and two four-year Senate terms was enshrined
in the constitution by voters.
16 Additional Potential Ballot Proposals
The Michigan Board of Canvassers has received four ballot proposals to amend the state Constitution:
• Protect the Right to Vote petition– The GOP-driven proposal would require photo ID or a signed affidavit to
vote; would require a partial Social Security number to register to vote; would provide state-funded IDs to
those who need them; would make it so absentee ballot applications would only be available on request;
would set the times for absentee voting; and would make all elections run through public funds by disallowing
private donations.
• Promote the Vote 2022 petition – The League of Women Voters/ACLU/Voters Not Politicians proposal would
insert language in the state Constitution that would bar any law from creating an “undue burden” on voters; It
would allow absentee ballots to be counted six days after election if they are postmarked by Election Day;
would require proof of identity to register to vote, but would be able to sign for absentee ballots; would
require the state to pay for absentee ballot postage; would require at least one secure absentee drop box in
every municipality; would enshrine the power of election audits with the Secretary of State Office.
• Reproductive Freedom for All Michigan – The Planned Parenthood/ACLU constitutional amendment would
allow abortion in the state of Michigan; would allow the state to keep a ban on abortion after a baby could
survive outside the womb without extreme measures; it would not allow any bans on contraceptives.
• Michigan Changes to Initiative and Legislative Process petition - The proposal would change a process the
Michigan Legislature has used to bypass veto from the Governor. It would require any ballot initiative to be
voted on and not allow the Legislature to pass a ballot proposal into law after it meets the requirements. It
would also extend the validity of signatures for a petition by two years.
There are three Michigan constitutional amendments up for a vote that have been proposed by the Michigan
Legislature. The Legislative constitutional amendments have to be passed by the Senate and House by a two-third
majority before heading to the ballot:
• Michigan Two-Thirds Lame-Duck measure – The constitutional amendment was proposed by House Speaker
Jason Wentworth (R-Farwell). The proposal would require any bill proposed between November and the start
of a new Legislative session, known as a lame-duck session, receive two-thirds majority to pass. It has passed
the House, but not the Senate.
• Michigan Civil Service Employee Legislative Communication measure – The constitutional amendment was
proposed by a group of Michigan Senators in March. The amendment would keep state civil service
employees from being disciplined for talking with legislators or their staff. It has passed the Senate, but not
the House.
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• Legislative Vote to Suspend Legislator’s Salary measure – The proposal passed in the House would amend
the Michigan Constitution to allow a legislator’s salary and expense account to be suspended for unethical
actions or excessive absence. A vote would need to pass both chambers of the Legislature by a two-third
majority. It has passed the House, but not the Senate.
There are nine citizen-initiated state statutes that are heading to the state Board of Canvassers. These proposed
laws can create veto-proof legislation that can be directly passed by the Legislature if they collect the number of
signatures to end up on the ballot. If the legislation is not taken up by the Legislature, then the proposals end up
on the ballot:
• Voter ID Initiative – The proposal would require an ID card to vote in-person or by absentee ballot.
• Michigan Election Audits Initiative – The proposal would create a Forensic Audit Board that would be
responsible for auditing election results, including those from November 2020.
• Michigan Minimum Wage Increase to $15 – The proposal would increase the minimum wage in the state to
$15 per hour by the year 2027. The increase would start at $11 per hour starting in 2023 and increase by $1
per year until the $15 cap.
• Payday Loan Interest Rate Cap – The proposal would set the interest rate on payday lenders at 36% annually.
Any rate exceeding the cap would be deemed unenforceable. The initiative would also create a consumer
warning for payday loan businesses.
• Unlock Michigan II – The ballot proposal would limit the Michigan Department of Health and Human Services
and county health department emergency orders to 28 days unless approved by the legislative government
controlling the area.
• This Liberty and Justice for All proposal – The initiative would incentivize good behavior in prisoners through
credit for time served, regardless of their sentence date. Under current legislation, according to the ballot
measure, only prisoners sentenced after April 1, 1987, are eligible to have time knocked off for good behavior.
• Student Opportunity Scholarship Program – The Great Lakes Education Project-backed measure would create
a program called the Student Opportunity Scholarship that would allow organizations to register with the
state to distribute scholarships to students for both public and private education.
• Student Opportunity Scholarship Tax Credit – The proposal would create an income tax credit for anyone
contributing to the Student Opportunity Scholarship program.
• Decriminalization of Psilocybin Mushrooms and Other Plants and Fungi – The proposal would decriminalize
the cultivation, possession and use of psychotropic plants and fungi, such as mescaline, peyote and psilocybin
mushrooms.
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State Policy Issues--continued
Senate, House Planning To Vote On New $2.5B Tax Cut
• The Republican-led Senate and House plan to vote for a second time on a $2.5 billion income and property tax
cut plan that will include changes that are designed to address concerns the Governor brought up when she
vetoed the first tax cut plan earlier this spring.
• The plan drops the income tax rate from 4.25% to 4%, raises the personal exemption on income taxes and
expands the earned income tax credit (EITC). It also provides a more robust child tax credit, reimburses locals
for the property tax cut for veterans and increases the senior income tax exemption while adjusting it to
inflation.
• It comes a day before the Consensus Revenue Estimating Conference (5/20/22), where the state's fiscal
leaders are expected to project an extra $2 billion in state revenues for the current fiscal year in the School
Aid Fund and General Fund combined before the revenue growth is expected to slow going into Fiscal Year
2023.
• In March, the Legislature sent the Governor an income tax drop from 4.25% to 3.9%, an income tax write-off
for retirement income tax and a $500 per-child nonrefundable tax credit. The Governor vetoed the bill saying
it “would strip away funding from kids, police and communities . . . blowing a recurring, multi-billion-dollar-
hole in basic state government functions from public safety to potholes.” She didn’t rule out tax cuts as part
of a general conversation on what to do with the state’s large, multi-billion surplus, but her preference was on
retirement income exemptions and an expansion of the EITC.
Short Term Rentals (STRs)
• HB 4722 past the House on 10/27/21 and is opposed by MML. The Senate may vote on the legislation this fall.
• HB 4985 was introduced as “compromise” legislation and supported by MML. It has remained in the House
since June 2021 and would do the following:
o Local units could not ban STRs & would allow property owners to rent their property on limited basis.
o Properties rented for more than 14 days per year could be regulated as commercial establishments in
residential neighborhoods.
o Preserves local control by allowing zoning ordinances to classify those rentals as either residential or
commercial uses of property and allow local units to require a special-use or conditional-use permit
for those houses.
o Compromise Option 1 (HB 4985) Would define the number of days a property could be used as a STR
and still qualify to be regulated as a residential use rather than a commercial one.
o Compromise Option 2 (SB 547) Would stop local units from banning STR properties and create a
statewide registry. This bill has remained in the Senate since June 2021.
• The "Good Neighbor Policy" legislation, House Bills 5465 and 5466 is supported by a coalition of organizations
representing local government, public safety, the restaurant and lodging industry, economic development and
more. The compromise legislation was initiated as an alternative to the harmful HB 4722. HB 5465 and 5466
have remained in the House since October 2021.
o HB 5466 would allow property owners the ability to rent their property for up to 30 days per year in
all residential areas, while allowing for reasonable zoning regulations. The bill creates greater parity
between requirements and regulations among the unregulated short-term rental enterprises and
other “typical” hotel and motel lodging.
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o HB 5465 establishes the Short-term Rental Regulation Act that requires all short-term rentals and
hosting platforms, like AirBnB or VRBO, to register the property with the state, allowing for improved
awareness and regulatory enforcement. The properties are required to adhere to safety features,
such as liability insurance, and on-site smoke and carbon monoxide detectors and fire extinguishers.
Municipalities may enact reasonable regulations to protect health and safety, and proactively mitigate
nuisance issues, such as noise, parking and traffic.
There are groups supportive of a statewide housing plan but are opposed STRs. The intent is strike a balance
between of allowing various housing types in communities.
Governor launches Statewide Housing Plan (SHP), 5/4/22 – MML, MSHDA, Partner Advisory Council
• Earlier this year, the Governor encouraged communities, state agencies, local units, developers, nonprofits
and philanthropic organizations to partner in a solutions workgroup to discuss strategies for Michigan’s first
Statewide Housing Plan.
• The Vision: Michigan needs to increase the supply of safe, healthy, affordable, and attainable housing while
improving equity and racial justice throughout the housing sector. To rectify longstanding historical patterns of
racial discrimination and segregation in housing access, a strong and intentional focus on equity and racial
justice is interwoven throughout the plan.
• Final plan was released in early May.
• The goals is to create or preserve 75,000 housing units across Michigan. Other targets include:
o The stabilization of housing for 100,000+ households
o Significantly reduce equity gaps in homelessness and homeownership
o Strive to make homelessness rare, brief and one time
o Increase home energy efficiency and make weatherization improvements in 15,000+ household
Moving forward, a new statewide housing partnership and regional groups will work alongside Michigan’s
Campaign to End Homelessness (MCTEH) to meet the goals of the plan.
Governor announced $100M affordable housing proposal (HCDF), 7/27/01
• Last year, the Governor announced a proposed investment of $100M of federal ARPA relief dollars into the
Michigan Housing and Community Development Fund (HCDF).
• The proposal would assist 6,000 Michiganders, produce 2,000 rental housing units, and leverage an additional
$380 million in private funding, while creating 1,600 good-paying jobs.
• Transformational investment will expand access to affordable and attainable housing, helping close equity
gaps, and supporting the development of vibrant communities across the state.
• The HCDF was established in statute but has not always been funded by the legislature. Its purpose is to
develop and coordinate public and private resources to meet the affordable housing needs of low-income
households and to revitalize downtown areas in Michigan.
• The flexibility of the HCDF allows it to be used to provide grants and loans to finance a wide range of
housing-related projects including: acquisition, rehabilitation, new construction, development and
predevelopment, preservation of existing housing, community development projects, insurance, down
payment assistance, security deposit assistance, activities that address homelessness, assistance to nonprofit
and for-profit developers, municipalities, land banks, and community development financial institutions.
• Target is workforce housing and “missing middle” housing for those transitioning from low-income into
middle-income housing, two areas of need in Michigan.
• MSHDA has not yet developed an allocation plan for the HCDF and a formula for disbursement based on
poverty rates, and economic and housing distress.
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Housing Michigan Coalition, established in 2021
• Coalition of statewide community, business, and governmental organizations to increase supply of equitable,
accessible and attainable housing opportunities. Critical workforce, talent and quality of life issue.
• Led by MML, GR Chamber, Home Builders Assn of MI, and Housing North. City of Muskegon is a member.
• Legislative package includes: tax credits and funding mechanisms, state agency action and cooperation,
streamlining building and development regulations.
Additional legislation will likely be added to the following package of bills:
Introduced Legislation – Housing Michigan
Description Sponsored By: Senate Bill # House Bill #
Employer-Supported Housing Credit Sen. Victory & Rep. Huizenga 360, 361 4649, 4650
Attainable Housing & Rehabilitation Act Sen. Brinks & Rep. Sabo 362 4647
Re-Establish Code Promulgation Committee Sen. Daley & Rep. Tate 363 4648
Expand NEZ’s to Additional Local Govt Units Sen. Moss & Rep. Bolden 364 4646
Residential Facilities Exemption Sen. Horn & Rep. Roth 422 4827
Allow PILOTS for Housing Sen. Schmidt 432
Community Land Trusts Sen. Victory & Rep. Lilly 4713, 4714
Coming Soon
Description Sponsored By:
Housing Impact Statement Sen. Daley & Rep. Tate
Governor announced $1.4B child care investment in 2021
• Working families need to have access to affordable, available and quality child care.
• Proposal would raise subsidy rates for providers by 20% and expand eligibility for low or no-cost child care to
200% of the federal poverty level.
• An estimated 150,000 more children will be covered by stretching the eligibility for subsidized child care from
150% of the federal poverty level -- $39,300 each year for a family of four -- to 200% of the poverty level --
$53,000 annually for the same-sized household -- from Aug. 1 to Sept. 30, 2023.
• After 9/30/23, authorizes eligibility permanently to four-member families making $41,920 yearly, which is
160% of the poverty level.
• Assigns nearly $125 million toward premium pay for child care professionals with stipends paid quarterly from
July 2021 until September 2022, equating to a $500 retention bonus for staff each three months.
• $1.4B in ARPA funds for MI is built on top of the $241.5M the state receives annually to support child care.
• Plan will be negotiated with the legislature.
Water Infrastructure & Local Parks plan – Public Act 53 of 2022; $4.709B for the following include:
• Infrastructure and Quality of Life
• The legislation is taking $3.9B from the federal COVID-19 recovery funds sent to Michigan and $945.4M from
U.S. Congress' Infrastructure Investment and Jobs Act.
• Water Infrastructure - $515M for storm water and wastewater improvement projects, and $750M for
drinking water infrastructure advancement projects. This appropriation can be utilized on public health
mitigation grants, sewer infrastructure, lead service line replacements, regional water authority, water
treatment plant modifications and PFAS remediation.
o EGLE has started plans to administer $1.9B of these funds through the State Revolving Fund process.
• Local Parks - $200M in local parks and trail infrastructure grants.
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o Provides an opportunity to improve quality of life for our residents, support local economies and bring
people back to Michigan as the state continues its recovery from the effects of the pandemic.
o Addresses the needs at our neighborhood parks and community gathering places to make them safer,
more accessible and inclusive.
o This new programs are expected to be modeled on the state’s Recreation Passport grants to help local
communities develop the recreational assets they need for the next generation.
• Homeowners - $121.4M for a homeowner assistance fund to help families experiencing financial hardship
after Jan. 21, 2020, distributing funds to fend off homeowner mortgage delinquencies, foreclosures,
displacements or loss of internet service or utilities. The HCDF will also use $50M for expanding affordable
housing programs to those most disenfranchised during the pandemic.
• Broadband - $250.6 million to offer competitive broadband infrastructure grants to boost connectivity in
"unserved areas," with 5% of the appropriation going toward the Michigan High-Speed Internet Office. The
office will be authorized to accept eight new employees, and leftover federal broadband grant funding will be
available with no extra state resources needed.
Total Investment: $4.709 Billion
Highlights of Key Areas of Investment of Water Infrastructure & Local Parks Plan
General EGLE guidance – EGLE to administer $1.9B of the total $4.7B
• 3 primary fund sources of the legislation include –
o ARPA / IIJA / General Fund
• EGLE intends to funnel a majority of the $1.9B through State Revolving Fund (SRF) for water infra projects.
• What funds can communities apply for -
o IIJA – $500M loans and loan forgiveness, submit project plans in accordance with SRF process
o ARP - $1B grant funding - $600M drinking water, $400M clean water, submit project plans in
accordance with SRF process
• PA 53 to distribute funds over two-year cycle
o Communities who applied for 2023 SRF cycle are eligible for IIJA and ARP, (funding determinations
made by Oct ’22)
• Funds primarily for construction projects, not planning.
Local Government
Non-Entitlement Coronavirus Local Fiscal Recovery Fund Grants – Second Tranche ($322 Million, ARP)
• Includes $322.1 million federal Coronavirus State Fiscal Recovery Fund Star to distribute to local units of
government pursuant to federally designated allocations. City will receive our ARP second tranche of
$11,440,947 from this pot.
Hold Harmless Revenue Sharing Payments ($46 Million, General Fund)
• Allocates $46.0 million to be used to make hold harmless payments to cities, villages, and townships that
experience a decline in population according to the 2020 census; requires payments to be made in an
amount equal to the overpayment amount.
Water Infrastructure
Water State Revolving Funds ($506 Million, IIJA)
Appropriates year one and two of five years' worth of federal Infrastructure Investment and Jobs
Act (IIJA) funding to support loans and grants for the following:
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• Allocates $154.3 million to wastewater infrastructure
• Allocates $88.2 million to drinking water infrastructure
• Allocates $45.1 million to address emerging contaminants in stormwater and wastewater ($8.1 million)
and drinking water ($37.0 million)
• Allocates $138.8 million to replace lead service lines
• Allocates $43.3 million to assist small and disadvantaged communities for drinking water infrastructure
projects
• Allocates $36.4 million in state general fund resources for year one and two of five years' worth of state
matching funds required to access IIJA funding
Water State Revolving Funds – Clean Water ($515 Million, ARP)
• Allocates $515.0 million to be used for clean water infrastructure improvements and public health risk
reduction efforts. The following specifics uses of these funds were included:
o Requires EGLE to maximize geographic distribution of funds by meeting certain requirements
o Allocates up to $20.0M for substantial public health risk grants capped at $2.0 million per project
o Allocates $25.0 million to be used for the Great Lakes Water Authority
Water State Revolving Funds – Drinking Water ($750 Million, ARP)
• Allocates $750.0 million to be used for drinking water improvements including lead service line
replacements, water main improvements, and water treatment plant upgrades. The following specifics
uses of these funds were included:
o Requires EGLE to maximize geographic distribution of funds by meeting certain requirements
o Requires at least a quarter of the appropriation, aside from specific allocations, to be used for
lead service line replacement and PFAS remediation ($187.5 million)
o Allocates $18.0M to be used for the consolidation and contamination risk reduction program to
provide drinking water assistance to remove or reduce PFAS or other contaminants.
• Allocates $15.0 million be used for contaminated site remediation in Muskegon County (Sappi site); for
PFAS remediation activities
Housing
Housing and Community Development Fund: Affordable Housing ($50 Million, ARP)
• Allocates $50.0M in funding be deposited into the HCDF and be allocated to MSHDA to expand affordable
housing for individuals disproportionately impacted by the COVID-19 pandemic.
Housing and Community Development Fund: Middle Housing Gap Program ($50 Million, ARP)
• Allocates $50.0 million to the HCDF to be used by MSHDA to create a Missing Middle Housing Gap
program to increase the housing supply for households with incomes between 185% and 300% of the
federal poverty level by helping defray the costs to nonprofit developers for investing in, constructing, or
rehabilitating properties
o requires that at least 30% of awards be allocated to projects in rural communities
o requires that no more than 15% be allocated for projects in any single city, village, or township
Residential Clean Energy Improvements ($50 Million, ARP)
• Allocates $50.0 million to MSHDA to incentivize energy efficiency and health improvements for single or
multi-family properties and to provide energy assistance
o Authorizes properties to be owner-occupied or rental properties
o $10.0 million for rehabilitation of certain structural or mechanical repairs for both existing owner-
occupied and rental properties
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o $20.0 million for activities that stabilize and enhance neighborhoods by nonprofits 501(c)3
agencies and local governments
Broadband
Capital Projects Fund - Michigan Statewide Broadband Service Grant Program ($250 Million, ARP)
• Allocates $250.0 million in funding to be used to provide competitive broadband infrastructure grants for
the provision of broadband service in unserved areas
o requires grant awardees to submit semiannual reports
o requires that up to 5% of funding be used to operate the MI High-Speed Internet Office (MIHI)
Parks and Recreation
Local Parks Recreation and Trail Infrastructure Grants ($200 Million, ARP)
• Allocates $65.0 million to be used for a local parks and recreation grant program
• Allocates $60.0 million to be used for a recreational greenway in Detroit
• Allocates $55.0 million to be used for a recreational greenway in Grand Rapids
• Allocates $20.0 million to be used for the Northern Michigan Tourism and Sports Fund for facilities,
sports-related tourism, and recreation in northern Michigan
State Parks and Trail Infrastructure ($250 Million, ARP)
o Allocates $250 million to DNR to develop, improve, repair, and maintain state parks, state
recreation areas, and state-designated trails.
Roads, Bridges, Transit and Mobility
Road and Bridge Programs ($316.7 Million, IIJA Revenue Increase)
• Appropriates $316.7 million in federal funds for the following:
o $237.5 million for state trunkline road and bridge capital construction programs
o $79.2 million for local federal-aid road construction programs
o The allocation between state trunkline and local road programs is in accordance with provisions
of Public Act 51 of 1951.
Public Transportation Programs ($66.2 Million, IIJA Revenue Increase)
• Appropriates $66.2 million in federal funds for the following:
o $41.0 million for transit capital
o $9.8 million for rural area formula (nonurban operating/capital) grants
o $7.7 million for service initiatives
o $3.2 million for specialized services
o $1.6 million for intercity bus services
o $2.7 million for marine passenger program
o $227,900 for MDOT transit program administration
Michigan Infrastructure Office ($5 Million, ARP)
• Appropriates $5.0 million federal Coronavirus State Fiscal Recovery Fund to establish an office that will
coordinate efforts across state department agencies and other federal and local partners to help ensure
federal funding provided from the Infrastructure Investment and Jobs Act is used effectively and
efficiently.
Mobility Futures Initiative ($25 Million, General Fund)
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• Allocates $25.0 million to the Office of Future Mobility and Electrification in LEO to coordinate
investments in the mobility sphere and requires funding to be allocated as follows:
o $15.0 million for transition and growing the state's mobility workforce and industry
o $7.0 million for safer, greener, and more accessible mobility services, which may include grant
and pilot programs
o $3.0 million to develop and commercialize mobility technologies through a new network of
mobility innovation hubs
Police Accountability + Reform – SB 473-484
• Bipartisan package (Sens. Roger Victory, Stephanie Chang). Broad areas such as banning "no-knock" warrants
and chokehold, ongoing implicit bias, behavioral health and de-escalating training led by MCOLES, duty to
intervene policies and reporting requirements for officer misconduct that would be kept by MCOLES.
• Many of the reforms proposed in the bills are already implemented across the state but would provide for a
more consistency of standards across agencies statewide.
• The legislation has remained in Senate committee since May 2021.
o SB 473: Requires MCOLES to establish a policy for the investigation of officer-involved deaths to be
distributed to all law enforcement agencies, and for all agencies and MCOLES to make those policies
publicly available.
o SB 474: Use of force violations would be required in records of officers' separations from
departments, and would be maintained by MCOLES
o SB 475: Allows for MCOLES to revoke a law enforcement officer's license in the event the individual
utilized excessive force that resulted in the death or serious bodily harm of another individual. Also
prohibits the license from being reissued.
o SB 476: Bans the intentional disclosure of a person's identity who filed a misconduct complaint
against an officer.
o SB 477: A police union would be exempt from representing a member who is facing disciplinary
action if the union determined that the grievance does not hold merit.
o SB 478: Bans the use of chokeholds except in cases where it may save a life.
o SB 479: Bans "no-knock" warrants, except in certain circumstances, and updates the definition of
"knock and enter" warrants.
o SB 480: Establishes an affirmative duty to intervene in instances of excessive force by another officer.
Those who fail to act would be subject to disciplinary action.
o SB 481: Requires law enforcement agencies to develop a use of force policy that meets certain
requirements.
o SB 482: Implicit bias training, de-escalation training, and behavioral health training standards would
be developed by MCOLES.
o SB 483: Provides for MCOLES to undertake a study on the attraction and retention of law
enforcement officers to discern the main obstacles to recruiting and retaining quality officers.
o SB 484: Adds tampering with or shutting off police body cameras as a form of tampering with
evidence.
State seeking to expand access to LIHTC program
• MSHDA proposing changes to the Low Income Housing Tax Credit program to increase access to the funding
tool to communities beyond downtowns and city centers.
• Qualified Action Plans that determine how the credits are awarded are typically amended every two years.
• Draft changes to the 2022-23 QAP are expected to be approved in June.
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• The plan for the QAP is to focus solely on the production of new housing units rather than a prior split focus
on funding the production of new housing units AND the restoration of existing units.
• The QAP has used a “walk score” metric to award LIHTC, which considers densely populated areas throughout
the state, generally downtowns. The QAP would now rely less on walk score and more on proposed
developments’ proximity to critical amenities such as grocery stores or doctors’ offices.
FY23 State Budget Issues
• The Governor's budget recommendation list for FY23 includes a $2.3 billion recruitment and retention effort
for school employees, $500 million to ramp up economic incentives and special one-time "hero pay" benefits.
• $74.1B Exec Rec plan for FY23 – largest in state history. It's a 34.5% jump from five years ago when the budget
was $55B. In the lean years between FY '06 and FY '13, the state budget was in the $40B range.
• Quick items of note regarding the budget include:
- $1.1 billion more for roads. Of this, $578 million is from the President Biden federal infrastructure program and
$481 million is coming from state funds, including the General Fund. Of this money, $279.9 million is in specific
one-time General Fund investments.
- $5 million for a new Infrastructure Office to coordinate all the federal money coming into the door and making
sure the different levels of government are on the same page.
– $10 million to convert the 7,000-vehicle state fleet conversion to electrical vehicles
– $243.3 million to expand dental care coverage for more than 3 million Medicaid enrollees
- $251.7 million for water infrastructure projects
Funding The Strategic Outreach And Attraction Reserve (SOAR) Fund
After scoring a $7B investment from General Motors, which will eventually be connected to Michigan's debut
usage of the SOAR Fund, the Governor is proposing to equip the fund with an extra $500 million.
The incentive package was signed at the end of 2021, and made with a $1 billion appropriation to create a Critical
Industry Fund and the Michigan Strategic Site Readiness Fund (MSSRF), aiming to entice billions in private
investments and jobs for the state.
Revenue Sharing
Executive Recommendation –
• 5% one-time and 5% on-going increase in state spending to revenue sharing for local governments
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EGLE – SB 840/HB 5782
Item Governor Senate House
IIJA $ for Water SRF $214M of IIJA $0 $214M of IIJA
Lead line replacement $48M $0 $0
High water infra grants $34.3M $0 $0
IIJA $ for Energy Efficiency Grants – for locals $23M $0 $23M
Wetland Mitigation Grants $0 $10M $0
DNR – SB 839/HB 5789
Item Governor Senate House
Local Boating Infra Maint/Improv – cap outlay grants $300K $300K $300K
MDOT – SB 841/HB 5791
Item Governor Senate House
MTF increase for C/V - $31.3M increase to $684M $31.3M $31.3M $31.3M
Local Fed Aid Road/Bridge Construction – addtl’ fed $15.2M $15.2M $15.2M
TEDF increases $4.3M $4.3M $4.3M
Maritime & Port Facility Improvement Office – new $0 $100 $0
EV Study – boilerplate – Senate, impact on rev from - New -
integration of EV on state roads
One-time GF to local road agencies – (C/V $268.5M) $0 $750M $0
General Government - SB 831/HB 5783
Item Governor Senate House
DTMB – MI Infra Ofc – to coordinate $ from IIJA $5M $0 $0
Treasury – Local Transition Support Grants - $ to $40M $0 $0
locals where large employers departed or divested
Treasury – blight elimination grants $0 $20M $0
Treasury – EV Rebate program – EV rebates & $ for $10M $0 $0
at-home charging equipment
Treasury – Statutory Rev Sharing – 10% inc (5% $26.6M $26.6M 2% - (1% ongoing,
ongoing, 5% one-time) 1% one-time)
Treasury – FF/EMS signing bonus to relocate to MI $0 $0 $5M
Treasury – FF/EMS explorer & job shadow program $0 $0 $5M
Treasury – FF/EMS quarantine reimbursement $0 $0 $10M
(3/18/20-9/30/21)
Treasury – FF/EMS recruitment marketing $0 $0 $2M
Treasury – FF/EMS retention bonuses $0 $0 $5M
Treasury – Fire Gear Initiative – comp grant, equip $0 $0 $10M
Treasury – Rec Marihuana Grants – inc of $20.6M $20.6M $20.6M $20.6M
Labor – Pure MI - increase $5M - $10M
House municipal pension proposal –
House Bill 5054 would create a grant program and the opportunity for local units of government to access direct
resources to address municipal pension debt. $1.15B in state GF resources would be utilized to provide direct
assistance to municipalities to help pay down municipal pension debt. There would be two parts to the grant
program; $900M would be utilized to get all pensions that are less than 60% funded up to 60% funded, and
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$250M will be provided to pensions that are 60% funded or greater. The intent is to create more stability in the
system.
As a condition of accepting the grant, a recipient will be required to do the following.
For pensions funded at 60% or greater:
• Retiree healthcare, if offered, shall be prefunded
• The local unit will make in full all actuarially determined contributions.
• The discounted rate and the assumed rate of return for the qualified retirement system shall be capped at
current levels. The discounted rate and assumed rate of return may be approved for adjustment to a
lower level.
• The qualified retirement system shall adopt the most recent mortality tables recommended by the
Society of Actuaries.
• Grant recipients are still required to follow their PA 202 Corrective Action Plan measures for 5+ years
• Corrective Action Plan monitoring from the state’s Municipal Stability Board will continue for 5 years
• Grant recipients must utilize the uniform standards published by the Treasurer annually under PA 202
• In the event a local unit does not pay the locally amortized contribution, or any actuarially determined
contributions are not made by the local unit, a revenue sharing intercept by the Department of Treasury is
allowed.
• Grants are capped at 5% of the funds available ($250M)
For those that are under 60% funded:
• The local unit will make in full all actuarially determined contributions. The discounted rate and the
assumed rate of return for the qualified retirement system shall be capped at current levels. The
discounted rate and assumed rate of return may be approved for adjustment to a lower level.
• The qualified retirement system shall adopt the most recent mortality tables recommended by the
Society of Actuaries.
• Prohibition on contractual pension benefit enhancements for 10 years after accepting the grant or the
local unit must repay the full value of the grant. After 10 years no benefit increases will be acceptable
unless a community is at least 80% funded and then the value of any increase must be funded at 100%, or
the local unit must repay the full value of the grant.
• Grant recipients are still required to follow their PA 202 Corrective Action Plan measures for 5 additional
years
• Corrective Action Plan monitoring from the state’s Municipal Stability Board will continue for 5 years
• Grant recipients must utilize the uniform standards published by the Treasurer annually under PA 202
• In the event a local unit does not pay the locally amortized contribution, or any actuarially determined
contributions are not made by the local unit, a revenue sharing intercept by Treasury is allowed.
• Grants are capped at $100M
Changes to House Bill 5054 include:
• Further defines that the most recent mortality tables may also be adjusted based on experience studies as
well.
• Require retirement systems to comply with Uniform Actuarial Assumptions within 5 years of receiving the
grant funds rather than immediately.
• Clarifies that benefit enhancements must be 100% pre-funded and that increases to wages and salaries
are not considered a benefit enhancement. The update also removes the 10-year cap to benefit
enhancements.
• Clarifies that the grant funds available to pension systems above 60% funded can use the grant funds for
pre-funding retiree health care benefits.
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• Clarified how any excess grants funds can be distributed to pension system below 60% funded. If by
August 31st there are still funds remaining, then the cap to an individual local unit does not apply when
funds are redistributed.
HB 5054 – passed the House 3/1/22, no further action has taken place.
Local road agency project savings legislation
• SB 465 was recently signed now permitting local road agencies to participate in a federal aid swap with the
Michigan Department of Transportation (MDOT) as an outlet for minimizing road repair costs.
• A rural county may have only one federal aid project every few years and is less likely to be staffed or
experienced in federal aid projects, and may struggle with the detail work required to execute it.
• MDOT estimated that meeting federal standards, like bidding requirements and reports, local road agencies
experience an expense increase of between 20% to 30%. Meanwhile, MDOT calculated an increase of only
10% to 15% in its cost to fulfill federal mandates. This is because MDOT has an operation that is more suited
to handle the administrative federal requirements than smaller municipalities, since the state department
already receives 75% of those funds.
• Allowing local agencies to swap federal funds for state dollars and avoid the burdensome requirements that
come with the federal dollars could help local communities save substantially on their costs and more
effectively use their resources to improve local roads.
• The Senate Fiscal Agency (SFA) projected that the reform could result in local governments saving up to 30%
annually due to reduced compliance and overhead costs.
• MDOT intends to release guidance to local units in June; and in each subsequent November for the next Fiscal
Year.
• City staff may wait until FY24 to participate and use a Federal Aid buyback at that time.
HB 5522 - FY22 $368M For Out-of-State Officer Recruitment
• HB 5522 passed the House in December 2021 to address a public safety officer shortage in Michigan by
attracting out-of-state officers with money to be put into their health care savings account, vesting their
contribution plan from another employer, and reimbursing them for hunting and fishing licenses and
recreation passports.
• $250M in funding would be dedicated to local law enforcement agencies and corrections officers.
o $57.5 million would be used for "Move to Michigan" incentives to grow the pool of candidates.
• If an out-of-state officer has a defined contribution plan with the officer's out-of-state employer, and the
officer is not fully vested in that plan, the incentive would pay an amount equal to the amount of employer
contributions the out-of-state officer will forfeit by relocating to Michigan.
Highlights of the program include:
- $40M for assistance to police academy cadet scholarships.
- $10M for officer signing bonuses and $10M for officer retention bonuses, to offer up to $5,000.
- $25M for communication towers and other communication equipment.
- $10M for riot gear and body armor purchases.
- $10M to support costs for hiring school resource officers.
- $10M for creating or expanding job shadowing programs for local law enforcement.
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- $10M to reimburse local officers for leave time they were required to use to quarantine because of exposure or
possible exposure to COVID-19.
- $2.5M to add to or establish K-9 units for local law enforcement agencies.
Opioid Settlement
• The settlement involves three of the nation’s largest pharmaceutical distributors — Cardinal,
McKesson, and AmerisourceBergen — and opioid manufacturer Johnson & Johnson. The
companies will start releasing funds to a national administrator on April 2, 2022. Money will be
allocated to state and local governments in the second or third quarter of 2022.
• The state will see around $825 million as a result of the settlement; half earmarked for local
units. The intent of the funds is to split them 50/50 with the municipalities that apply to
participate. The monies can only be used for the prevention of treatment of opioid addiction.
• City expects to receive approximately $1.4M.
FEDERAL
Infrastructure Investment and Jobs Act (IIJA) – Grant Opportunities
• Staff continues to monitor and review grant announcements to determine which ones would be
appropriate to pursue throughout the course of 2022 and beyond.
National League of Cities ARP Grant Navigator Program
• Staff has begun a dialogue with NLC staff on available grant opportunities.
FY22 Congressional Directed Spending (2021)
• Great Lakes Community Wharf –
o Federal funds were inserted in the federal budget for the U.S. Army Corps of Engineers to begin the
process of evaluating whether to fund a Feasibility Study to potentially perform dredging activities in
the Third Street channel. USACE received these funds as part of a “Sec. 107 Small Navigation Harbor
Improvement Program”. The first step in evaluating if a Feasibility Study should be conducted is for
the USACE to perform a Federal Interest Determination (FID).
S3011 / HR5735
Gives local gov greater flexibility and clarity on eligible uses including disaster recovery expenses and certain infra
investments; allow state and locals to - allocate up to $10M of ARPA funds for the provision of gov services
without using Treasury's rev loss calculator / allow the greater of $10M or 30% of the city's total ARPA allocation
to be used for infra-related activities under a separate infra provision authorized under fed surface trans law or
Title 1 of Housing and Comm Dev Act / allow ARPA funding to be used to provide emerg relief from nat disasters
or neg econ impacts of natural disasters, including temp emerg housing, food assistance for lost wages or other
immediate needs
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American Jobs Plan (Infrastructure) IIJA - $1.2T
• Safe Streets for All ($6B, new) – This program will provide funding directly to local and tribal governments to
support their efforts to advance “vision zero” plans and other improvements to reduce crashes and fatalities,
especially for cyclists and pedestrians.
• Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Grants ($15B, expanded) – RAISE
grants support surface transportation projects of local and/or regional significance.
• Infrastructure for Rebuilding America (INFRA) Grants ($14B, expanded) – INFRA grants will offer needed aid
to freight infrastructure by providing funding to state and local government for projects of regional or
national significance. The bill also raises the cap on multimodal projects to 30% of program funds.
• Federal Transit Administration (FTA) Low and No Emission Bus Programs ($5.6B,expanded) – the bill
expands this competitive program which provides funding to state and local governmental authorities for the
purchase or lease of zero-emission and low-emission transit buses as well as acquisition, construction, and
leasing of required supporting facilities.
• FTA Buses + Bus Facilities Competitive Program ($2.0B, expanded) – This program provides competitive
funding to states and direct recipients to replace, rehabilitate, and purchase buses and related equipment and
to construct bus-related facilities including technological changes or innovations to modify low or no emission
vehicles or facilities.
• Capital Investment Grants (CIG) Program ($23B, expanded) – The bill guarantees $8 billion, and authorizes
$15 billion more in future appropriations, to invest in new high capacity transit projects communities choose
to build.
• MEGA Projects ($15B, new) – This new National Infrastructure Project Assistance grant program will support
multi-modal, multi-jurisdictional projects of national or regional significance.
• Promoting Resilient Operations for Transformative, Efficient, and Cost-saving Transportation (PROTECT)
Program ($8.7B, new) – PROTECT will provide $7.3 billion in formula funding to states and $1.4 billion in
competitive grants to eligible entities to increase the resilience of our transportation system. This includes
funding for evacuation routes, coastal resilience, making existing infrastructure more resilient, or efforts to
move infrastructure to nearby locations not continuously impacted by extreme weather and natural disasters.
• Port Infrastructure Development Program ($2.25B, expanded) – the bill will increase investment in America’s
coastal ports and inland waterways, helping to improve the supply chain and enhancing the resilience of our
shipping industry. The bill overall doubles the level of investment in port infrastructure and waterways,
helping strengthen our supply chain and reduce pollution.
• Federal Highway Administration (FHWA) competitive grants for nationally significant bridges and other
bridges ($12.5B, new) – This new competitive grant program will assist state, local, federal, and tribal entities
in rehabilitating or replacing bridges, including culverts. Large projects and bundling of smaller bridge projects
will be eligible for funding.
• Charging and fueling infrastructure discretionary grants (Up to $2.5B, new) – This discretionary grant
program will provide up to $2.5 billion in funding to provide convenient charging where people live, work, and
shop.
• Reconnecting Communities Pilot Program ($1B, new) – This new competitive program will provide dedicated
funding to state, local, MPO, and tribal governments for planning, design, demolition, and reconstruction of
street grids, parks, or other infrastructure.
• Strengthening Mobility and Revolutionizing Transportation (SMART) Grant Program ($1B, new) – The
SMART Grant program will be a programmed competition that will deliver competitive grants to states, local
governments, and tribes for projects that improve transportation safety and efficiency.
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The Infrastructure Investment and Jobs Act (HR 3684) totals $1.2 trillion, with $550 billion being new spending
targeted at:
$110 billion for roads and bridges. In addition to construction and repair, the funding also helps pay for
transportation research at universities and “congestion relief” in American cities.
$66 billion for railroads. Funding includes upgrades and maintenance of America’s passenger rail system and
freight rail safety, but nothing for high-speed rail.
$65 billion for the power grid. The bill would fund updates to power lines and cables, as well as provide money to
prevent hacking of the power grid. Clean energy funding is also included.
$65 billion for broadband. Includes funding to expand broadband in rural areas and in low-income communities.
Approximately $14 billion of the total would help reduce Internet bills for low-income citizens.
$55 billion for water infrastructure. This funding includes $15 billion for lead pipe replacement, $10 billion for
chemical cleanup, and money to provide clean drinking water in tribal communities.
$47 billion for cybersecurity and climate change. The Resilience Fund will protect infrastructure from
cybersecurity attacks and address flooding, wildfires, coastal erosion, and droughts along with other extreme
weather events.
$39 billion for public transit. Funding provides for upgrades to public transit systems nationwide. The allocation
also includes money to create new bus routes and help make public transit more accessible to seniors and
disabled Americans.
$21 billion for the environment. Used to clean up superfund and brownfield sites, abandoned mines, and old oil
and gas wells.
$17 billion for ports. Half of the funds in this category would go to the ACE for port infrastructure. Additional
funds would go to the Coast Guard, ferry terminals, and reduction of truck emissions at ports.
$11 billion for safety. Address hwy, ped, pipeline, and other safety areas with hwy safety getting bulk of funding.
$7.5 bill for electric vehicle charging stations. The Biden administration asked for this funding to build
significantly more charging stations for electric vehicles across the nation.
American Family Plan – Build Back Better - $1.8T
• The proposal — the second phase of his plan to overhaul the U.S. economy — calls for $1.8 trillion in spending
and tax credits for American families and workers over 10 years. The latest proposal aims to boost labor force
participation and strengthen the economy by supporting children and families.
• Michigan Fact Sheet
• 11/19/21 – House passed
Framework for the Build Back Better Act -
• The framework will save most American families more than half of their spending on child care, deliver two
years of free preschool for every 3- and 4-year-old in America, give more than 35 million families a major tax
cut by extending the expanded Child Tax Credit, and expand access to high-quality home care for older
Americans and people with disabilities.
• The largest effort to combat climate change in American history. The framework will cut greenhouse gas
pollution by well over one gigaton in 2030, reduce consumer energy costs, give our kids cleaner air and water,
create hundreds of thousands of high-quality jobs, and advance environmental justice by investing in a 21st
century clean energy economy – from buildings, transportation, industry, electricity, and agriculture to
climate smart practices across our lands and waters.
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• The most significant effort to bring down costs and strengthen the middle class in generations. The
framework will make the single largest and most comprehensive investment in affordable housing in history,
expand access to affordable, high-quality education beyond high school, cut taxes for 17 million low-wage
workers by extending the expanded EITC, and advance equity through investments in maternal health,
community violence interventions, and nutrition, in addition to better preparing the nation for future
pandemics and supply chain disruptions.
And, it is fully paid for and will reduce the deficit by making sure that large, profitable corporations can’t zero out
their tax bills, no longer rewarding corporations that shift jobs and profits overseas, asking more from millionaires
and billionaires, and stopping rich Americans from cheating on their tax bills. Under this historic agreement,
nobody earning less than $400,000 per year will pay a penny more in taxes.
Specifically, the Build Back Better framework will:
• Ensure clean energy technology – from wind turbine blades to solar panels to electric cars – will be built in the
United States with American made steel and other materials, creating hundreds of thousands of good jobs
here at home. The Build Back Better legislation will target incentives to grow domestic supply chains in solar,
wind, and other critical industries in communities on the frontlines of the energy transition. In addition, the
framework will boost the competitiveness of existing industries, like steel, cement, and aluminum, through
grants, loans, tax credits, and procurement to drive capital investment in the decarbonization and
revitalization of American manufacturing.
• Advance environmental justice through a new Clean Energy and Sustainability Accelerator that will invest in
projects around the country, while delivering 40% of the benefits of investment to disadvantaged
communities, as part of the President’s Justice40 initiative. The framework will also fund port electrification;
facilitate the deployment of cleaner transit, buses, and trucks; and support critical community capacity
building, including grants to environmental justice communities. In addition, the framework will create a new
Civilian Climate Corps – with over 300,000 members that look like America.
• Bolster resilience and natural solutions to climate change through a historic investment in coastal restoration,
forest management, and soil conservation.
Build Back Better framework includes targeted investments that will reduce costs that hold back middle-class
families and grow our economy from the bottom up and the middle out. Specifically, the framework will:
• Make the single largest and most comprehensive investment in affordable housing in history; enable the
construction, rehabilitation, and improvement of more than 1M affordable homes, boosting housing supply
and reducing price pressures for renters and homeowners.
• Address the capital needs of the public housing stock in big cities and rural communities all across America
and ensure it is not only safe and habitable but healthier and more energy efficient as well.
• Historic investment in rental assistance, expanding vouchers to hundreds of thousands of additional families.
And, it includes one of the largest investments in down payment assistance in history.
• Will create more equitable communities, through investing in community-led redevelopments projects in
historically under-resourced neighborhoods and removing lead paint from hundreds of thousands of homes,
as well as by incentivizing state and local zoning reforms that enable more families to reside in higher
opportunity neighborhoods.
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Investments $ billion
Child Care and Preschool 400
Home Care 150
Child Tax & Earned Income Tax Credits 200
Clean Energy and Climate Investments 555
ACA Credits, Including in Uncovered States 130
Medicare Hearing 35
Housing 150
Higher Ed and Workforce 40
Equity & Other Investments 90
Total 1750
Immigration 100
Offsets – Estimates, Subject to Confirmation $ billion
15% Corporate Minimum Tax on Large Corporations 325
Stock Buybacks Tax 125
Corporate International Reform to Stop Rewarding Companies
that Ship Jobs and Profits Overseas 350
AGI Surcharge on the Top 0.02% 230
Close Medicare Tax Loophole for Wealthy 250
Limit Business Losses for the Wealthy 170
IRS Investments to Close the Tax Gap 400
Prescription Drugs: Repeal Rebate Rule 145
Up to a Total of: 1995
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