Rochester Hills hears Lansing update on revenue sharing, franchise fees and paid-leave debate

State Sen. Michael Weber and representatives from Midwest Strategy Group briefed the Rochester Hills City Council on Sept. 23 about legislation and budget items in Lansing that council members said could materially affect local finances.

Weber, who represents the 9th District, told the council the statewide budget passed in June and “goes into effect October 1st,” and said statutory revenue sharing for cities, villages and townships increased by about $75 million. He also said the Public Act 51 road formula yielded about a $36 million increase for cities and villages and described ongoing efforts to create a revenue-sharing trust fund to provide more certainty for local governments.

"The budget obviously did pass in June; it goes into effect October 1st," Weber said in his presentation. He described the trust-fund concept as a way to reduce reliance on annual appropriations and said he and municipal partners are still pushing to pass the legislation this year.

Lobbyists Adam Wright and Mike Capon of Midwest Strategy Group added detail on bills they said are priorities for Rochester Hills, including House Bill 4965, which they warned could reduce nearly $1 million in franchise and PEG fee revenue if large providers reclassify cable as a streaming video service. "If they switch to a streaming system it could dramatically decrease the revenue that Rochester Hills and many other communities around the state get," the presentation said.

The group also highlighted Senate Bill 643, intended to create a funding mechanism for sound-abatement projects, and noted developments on paid sick leave and a Michigan Supreme Court decision involving the tipped-wage credit for restaurant workers. Weber said discussions and roundtables with stakeholders have produced bipartisan interest in finding workable solutions.

Council members asked whether certain school policies—such as local restrictions on cellphone use—would require state action; Weber replied that many districts already adopt local policies and that he would consult with state colleagues on whether a statewide approach is needed. "There's nothing that's prohibiting [local districts] from doing their own policies," he said.

Why it matters: Several of the items discussed—franchise fee definitions, revenue sharing and public-safety trust funds—affect municipal revenues and planning. Council members said they rely on such briefings to shape local budget choices and to coordinate with lobbyists and state partners.

Next steps: The council will continue monitoring the revenue-sharing trust fund and House Bill 4965 and said staff will coordinate with Midwest Strategy Group and Sen. Weber’s office on compromise language and local impacts.