MGFOA
Established in 1938, The Michigan Government Finance Officers Association (MGFOA) is a professional association of public officials, finance and professional persons. Our objective is to unite finance professionals for the purpose of enhancing and promoting professional management of financial resources.
2010 - 2011 Board Nomination Form
MICHIGAN SUPREME COURT RULES C.E.P.I VIOLATED HEADLEE
Source: Volume #49, Report #135, Article #1--Wednesday, July 14, 2010 - GONGWER
An 11-year-old state requirement that school districts collect information like pupil counts and financial data and submit it to the Center for Educational Performance and Information violated the Constitution's prohibition against the state placing unfunded mandates on local governments, a divided Supreme Court ruled Wednesday.
The ruling disposes of the last piece of the long-running case Adair v. State of Michigan (SC Docket No. 137424) in which 456 school districts sued the state for violating the Headlee Amendment against unfunded mandates. Dissenting justices said the ruling opened the floodgates for Headlee lawsuits.
Affirming the crux of the Court of Appeals' ruling, a 4-3 Supreme Court majority upheld the Court of Appeals and a special master, which issued a declaratory judgment that the state had violated the ban on unfunded mandates. The suit did not seek monetary damages, but the result raises questions about what funds the state might have to provide going forward. The Supreme Court also reversed the Court of Appeals and ruled the state would have to pay the school districts' attorney fees.
The key question in the case surrounded whether the school districts had to show the amount of increased costs placed upon them in detail. The majority opinion, written by Chief Justice Marilyn Kelly and signed by Justice Michael Cavanagh, Justice Diane Hathaway and Justice Elizabeth Weaver, held that districts do not need to provide such detail.
"A plaintiff must show that the state required a new activity or service or an increase in the level of activities or services," Ms. Kelly wrote. "If no state appropriation was made to cover the increased burden on local government, the plaintiff need not show the amount of increased costs. It is then the state's burden to demonstrate that no state funding was required because the requirement did not actually increase costs or the increased costs were not necessary."
Ms. Kelly wrote that the state made no such appropriation for the districts implementation of reporting requirements, nor for the districts' ongoing duties on the subject.
"Rather, the districts were expected to take monies from discretionary funds to cover the costs associated with their data-collection and reporting obligations," she wrote.
The dissenting justices ripped the opinion, saying it would lead a flood of Headlee litigation and misinterpreted the Constitution.
Justice Stephen Markman, writing the dissent, said the burden always remains on the plaintiff in Headlee cases and the plaintiff must detail increased necessary costs.
"If plaintiffs are not required to demonstrate that a state requirement will, in fact, result in the actual reallocation of funds or out-of-pocket expenses, then there has been no showing of any necessary increased costs that will be incurred," he wrote. "The Legislature will effectively be required to enact an accompanying appropriation to every statute that mandates an increase in the level of an activity or service - even if there are no necessarily increased costs, and even if any such increased costs are merely de minimis - unless it is willing to undertake the risk that the state will eventually be able to sustain in court its burden of proof that a (Headlee) plaintiff's costs did not increase or that any such increased costs were not necessary."
Signing the dissent were Justice Maura Corrigan and Justice Robert Young Jr.
Statutory Mandates Commission Proposed Legislation
The Legislative Commission on Statutory Mandates (LCSM) submitted its final report on December 31, 2009. The LCSM has recommended changes to both the legislative and judicial process which include preventive and curative measures for non-compliance with the Headlee amendment prohibition on unfunded mandates. Full report found HERE.
Current Status - HB 5797, 5799 and 5801 approved but not reported out of House Judiciary Committee due to minor cleanup. HB 5800 was postponed for further work group meetings with the Court of Appeals. This is still a work in progress and if passage occurs it will be in Oct/Nov.
Current Action Needed - call your representative and urge support. Find your legislator HERE.
For a Brief Overview, Read the MGFOA Letter to its Members
MGFOA Adopted Resolution of Support
Resolution Template for Member Use
MGFOA Executive Director Position
The MGFOA welcomes Colleen M. Coogan to the newly created position of Executive Director. The Executive Director will be responsible for enhancing member services, acting as a liaison to governmental units and professional associations, providing contract administration and coordinating publications.
Ms. Coogan brings a fresh perspective to our group – her recent attempts to address the variety of issues encountered by today’s government accounting professional led her to an equal variety of websites, agencies and professional associations. This experience in turn led her to the MGFOA. She has agreed to spend 2 years with the Association expanding the resource base for our members, developing a single-source point of reference and organizational framework and increasing our visibility statewide.
As the official contact for the MGFOA please reach Colleen at executive@migfoa.org.
BOARD OF DIRECTORS MEETING SCHEDULE
2009 - 2010
At this time all board meetings will be held at the City of Ann Arbor Service Building, 4251 Stone School Rd., Ann Arbor, unless someone specifically wishes to host a meeting. Meetings start at 9:30 AM.
Friday, August 20, 2010
Meetings Up North is now VIKTOR Incentives & Meetings.
Please update your records to reflect the new MGFOA Mailing address, phone number and email:
MGFOA
4020 Copper View
Suite 130
Traverse City, MI 49684
info@migfoa.org
(p) 231-947-0882