house Concurrent Resolution No.4

Reps. Rogers, Coleman, Steenland, Rabhi, Morse, Young, Brabec, Hope, Brixie, Liberati, Hertel, Sneller, Cherry, Puri, Manoogian, Steckloff, Weiss, Breen, Scott, Tate, Brenda Carter, Cynthia Johnson, Kuppa, LaGrand, Aiyash, Ellison, Neeley, Hood, Bolden, Anthony, Garza, Jones, Stone, O'Neal, Clemente, Sabo, Tyrone Carter, Shannon, Koleszar, Lasinski, Camilleri, Peterson, Yancey, Cavanagh, Sowerby and Thanedar offered the following concurrent resolution:

A concurrent resolution to memorialize the federal government to provide direct aid to state and local governments.

Whereas, The COVID-19 Pandemic has significantly impacted Michigan and the United States. Since the first reported cases in Michigan on March 10, 2020, more than a half million Michiganders have been infected and more than 15,000 have lost their lives to the virus; and

Whereas, Unprecedented measures have been required to mitigate the virus' spread and protect public health. Governor Gretchen Whitmer, the Michigan Department of Health and Human Services, and public health officials across the country have issued orders prohibiting large gatherings, closing schools, and requiring the temporary closure of nonessential businesses; and

Whereas, Mitigating the spread of COVID-19 and protecting Michigan's citizens have affected state revenue. At the January 2021 Consensus Revenue Estimating Conference, it was estimated that net General Fund revenue declined by more than $345 million during the 2019-20 Fiscal Year and would decline further during the 2020-21 Fiscal Year. Nationwide, states are facing significant declines in tax revenue; and

Whereas, Local governments across Michigan are also facing a dire fiscal situation. Falling revenues from local taxes combined with possible cuts to state revenue sharing have dramatically altered budgetary estimates for local governments. The 24 Michigan communities that collect city income taxes are facing combined potential revenue losses of at least $250 million; and

Whereas, Failing to mitigate these state and local revenue shortfalls may result in damaging cuts to core government functions. Michigan is required to have a balanced budget every year. The cuts necessary to meet this requirement could necessitate reductions in funding for critical public services, including education, public safety, and others. States and localities have already eliminated more than 1 million jobs since the Pandemic began, exceeding the total jobs lost following the Great Recession; and

Whereas, The cuts necessary to balance state budgets may hamper states' ability to recover from the COVID-19 Pandemic and deal with other important issues. 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 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, While some federal aid has already been provided to states and local governments, it is insufficient to weather the effects of the Pandemic. Michigan received aid from the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, but these funds may only be used for expenses that relate to the Pandemic. The act only provided 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 were excluded. Further, direct aid to state and local governments was not included in the subsequent federal stimulus package enacted in December 2020; and

Whereas, President Joe Biden has proposed and the U.S. Congress has begun working to enact a relief package that includes $350 billion in emergency aid for state and local governments, including direct, flexible aid to local governments. Experts have projected that this total would be sufficient to avoid deep budget cuts, protecting public services and avoiding adverse effects on the economy's recovery; now, therefore, be it

Resolved by the House of Representatives (the Senate concurring), That we memorialize the federal government to provide direct aid to state and local governments; and be it further

Resolved, That copies of this resolution be transmitted to the President of the United States, the Speaker of the United States House of Representatives, the President of the United States Senate, and the members of the Michigan congressional delegation.