Bill Text: MI HCR0026 | 2019-2020 | 100th Legislature | Introduced
Bill Title: A concurrent resolution to memorialize the Congress of the United States to provide financial relief to state and local governments affected by COVID-19.
Spectrum: Partisan Bill (Democrat 51-1)
Status: (Introduced - Dead) 2020-06-11 - Referred To Committee On Appropriations [HCR0026 Detail]
Download: Michigan-2019-HCR0026-Introduced.html
house Concurrent Resolution No.26
Reps. Hoadley, Pohutsky, Clemente, Cherry, Sneller, Pagan, Hood, Koleszar, Brenda Carter, Sabo, Kennedy, Cynthia Neeley, Shannon, Tate, Brixie, Ellison, Hope, Stone, Rabhi, Manoogian, Bolden, Hertel, Kuppa, Peterson, Guerra, Elder, Chirkun, Tyrone Carter, Garrett, Anthony, Cynthia Johnson, Wittenberg, Cambensy, Byrd, Garza, Coleman, Haadsma, LaGrand, Greig, Liberati, Camilleri, Gay-Dagnogo, Hammoud, Sowerby, Warren, Whitsett, Inman, Witwer, Jones, Love and Lasinski offered the following concurrent resolution:
Whereas, Unprecedented measures have been required to mitigate the virus’ spread and protect public health. Governor Gretchen Whitmer, and other public officials across the country, have issued orders prohibiting large gatherings, closing schools, and requiring the temporary closure of nonessential businesses. The White House Coronavirus Task Force’s guidelines also recommend the closure of places where people gather when there is evidence of community transmission; and
Whereas, The cost of preventing the spread of COVID-19 and protecting Michigan’s citizens has been a dramatic decline in state tax revenue. As businesses are closed and residents are out of work, projected revenue from income, sales, and other taxes has significantly declined. Michigan’s projected General Fund revenue has declined by $2 billion and projected School Aid Fund revenue has declined by $1.2 billion for the current fiscal year. Even as many businesses resume operations and other restrictions are lifted, the economic devastation from fighting COVID-19 will remain. Significant deficits are also projected for Fiscal Year 2021. Nationally, it is estimated that states could face more than $500 billion in budget shortfalls; and
Whereas, Failing to mitigate these budget shortfalls will result in unprecedented and incredibly damaging cuts to core government functions. Michigan is required to have a balanced budget each year. The cuts necessary to meet this requirement could necessitate severe reductions in funding for critical functions including education, public safety, and a host of other areas. Current projections for the School Aid Fund could require state funding to be cut by about $700 per pupil, or more than 8 percent, for the current school year. Local units have also begun enacting hundreds of millions of dollars in cuts to prepare for expected shortfalls that could disproportionately impact low-income communities and communities of color; and
Whereas, The cuts necessary to balance state budgets may hamper states’ ability to recover from the COVID-19 Pandemic. With cuts necessary across state budgets, health care; economic development programs including neighborhood development and relief for small businesses; investments in critical infrastructure such as dams; and PFAS cleanup and other cleanup efforts may also be eliminated or face funding reductions. Cutting these programs during the public health emergency and economic devastation brought by COVID-19 will make it much more difficult for states to recover from the crisis; and
Whereas, State taxpayers also pay federal taxes, and the federal government should provide support in times of crisis. According to federal data, Michigan residents paid nearly $40 billion in federal individual income taxes, the thirteenth most of any state, during the 2017 Tax Year, the last year for which data is available. It is fair to expect that the federal government will provide support in return during times of extreme financial stress; and
Whereas, While some federal aid has already been provided to states, it will not be enough to weather the effects of the Pandemic. Michigan is receiving about $3.8 billion from the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, but these funds may only be used for expenses related to the Pandemic. Further, the act only provides direct aid to local governments with populations over 500,000, meaning that the vast majority of Michigan’s nearly 2,000 local units of government will be excluded; and
Whereas, Future relief funds should allow for flexibility in how they can be used. The deficits that states are facing are vast and may require adaptive decision making. Placing restrictions on how relief funds can be used will limit their effectiveness in helping states mitigate the fiscal impacts of the COVID-19 Pandemic; now, therefore, be it
Resolved by the House of Representatives (the Senate concurring), That we memorialize the Congress of the United States to provide continued and flexible financial relief to state and local governments affected by COVID-19; and be it further
Resolved, That copies of this resolution be transmitted to the Speaker of the United States House of Representatives, the Majority Leader of the United States Senate, and the members of the Michigan congressional delegation.
