Governor Signs State Budget – Hazard Premium Payroll Deadline Extended

Earlier today, Governor Whitmer signed House Bill 5396, the omnibus budget for the state fiscal year that starts tomorrow, October 1st.

The Senate Fiscal Agency summary of the budget agreement can be reviewed here.

The House Fiscal Agency analysis can be viewed here.

Major components of the budget deal included:

• A restoration of the August 2020 $97 million statutory revenue sharing cut. For the coming year, statutory revenue sharing will be funded at the same level as originally set for last year.
• An extension of time for communities to pay out federally funded CARES Act first responder hazard pay premiums (see below). The payroll deadline was moved out from September 30th to October 31st, based on a Municipal League request.
• A $35 million increase to local road agencies (counties and cities/villages) based upon the final implementation of the $600 million state income tax earmark as part of the 2015 road funding deal.
• $24 million was appropriated as disaster relief grants to help areas around the state that have been devastated by flooding.
• The Business Attraction & Community Revitalization Program within MEDC was increased by $20 million.
• Federal Community Development Block Grant funding was increased by $15 million.
• $5 million was appropriated in anticipation of the passage of the League-supported Senate Bill 54, which would restore the Michigan Historic Preservation Tax Credit program.
• A one-time authorization of $800,000 for blight removal grants in Redevelopment Ready Communities.

In response to the Governor’s budget signing, the Michigan Department of Treasury released the following information relative to the payroll time extension for hazard pay and a reporting deadline extension for funds received as a result of the August revenue sharing swap…

Updates for CARES Act Grant Programs

The Michigan Department of Treasury has a few short updates and reminders about the First Responder Hazard Pay Premiums Program (FRHPPP) and Coronavirus Relief Local Government Grants (CRLGG) Program.

• Today, the Gov. Gretchen Whitmer signed legislation that extends the deadline for when eligible hazard pay premiums must be paid to employees, changing the date from September 30, 2020, to October 31, 2020.
• The application deadline for submitting reimbursement requests remains September 30, 2020.

• The CRLGG Program’s first quarterly reporting due date will be extended. The Quarterly Financial Status Report was anticipated to be due on October 7, 2020. The federal government provided the state of Michigan an extension, so this date will be extended for local units of government.
• A new date for local reporting has not been set yet. The reporting will be done in an online system that will launch mid-October. We are finalizing training sessions and due dates. More information will be forthcoming.
• If a local unit does not plan to spend all their CLRGG Program funds, unused funds must be returned to the state Treasury Department. Returned payments must be accompanied by Form 5733, Treasury CARES Act Return of Funds Received Form. Form 5733 is available on the CRLGG website.

Additional Information

Additionally, the Michigan Department of Treasury has developed a webpage with numbered letters, memorandums, webinars, and resources regarding COVID-19 updates for local governments and school districts. This webpage was created to ensure Michigan communities have access to the most up-to-date guidance and is updated frequently with information and resources as they become available.

Chris Hackbarth is the League’s director of state & federal affairs. He can be reached at 517-908-0304 and [email protected] .