Charles Beatty Jr. attended the Sept. 4 Washtenaw County board of commissioners meeting to accept a resolution in honor of his father, Charles Beatty Sr. The board supports naming the Head Start building at 1661 LeForge in Ypsilanti – owned by the county – in honor of the late Charles Beatty Sr., who was influential in early childhood education. (Photos by the writer.)

For the site at 2260 and 2270 Platt Road – the former juvenile center – staff have proposed a process that focuses on possibly using the site for affordable housing. A $100,000 planning grant is available to explore that option. However, several commissioners – while expressing support for affordable housing in general – wanted to look at a broader range of alternatives, including the possibility of selling the site, which some believe could be worth $2 million. After more than an hour of debate, the board voted to postpone action until its Sept. 18 meeting, directing staff to prepare an alternative resolution to consider.

Another lengthy debate focused on the funding mechanism for new trial court software, estimated to cost $2.3 million. The vendor of the current system went out of business several years ago, and replacement is critical. Donald Shelton, chief judge of the trial court, told commissioners: “If this [software] system goes down, our judicial system in the county simply stops operating.”

Some commissioners wanted a more formal mechanism to repay the county’s investment in the system, which includes nearly $1.3 million from capital reserves. The board eventually passed a resolution stating that revenues from the court’s electronic filing fees will be used to reimburse the capital reserves. E-filing fees – likely to be $6 per filing – are expected initially to generate only about $45,000 in revenues. The e-filing will start with civil cases, with phased roll-out to other cases, including criminal and probate. At some point, e-filing might become mandatory.

A range of other significant action items yielded far less discussion. The board gave initial approval to a new micro loan program for small businesses, to be managed by the Center for Empowerment and Economic Development. Also getting initial approval was a range of grants administered by the county’s office of community & economic development, as well as a resolution that would give blanket approval in the future to nearly 30 annual entitlement grants received by the county totaling an estimated $8.8 million, beginning in 2014. Currently, each of those grants requires separate annual approval by the board.

Commissioners also gave initial approval to strengthen the county’s affirmative action plan, as well as other nondiscrimination in employment-related policies. The primary change adds a prohibition of discrimination on the basis of gender identity, gender expression, and sexual orientation. Community activist Jim Toy and Jason Morgan, who serves on the board of the Jim Toy Community Center, spoke during public commentary to support the changes.

Other items receiving an initial vote from the board include: (1) adding three new full-time jobs for stewardship of the county nature preserves; (2) adding a new 10-bed treatment program for female teens in the county’s youth center that will create a net increase of 5.46 jobs; and (3) budgets for the county’s public health and community support & treatment service (CSTS) departments.

During the meeting, the board also honored the nonprofit Dawn Farm on its 40th anniversary, and recognized Bill McFarlane, the long-time Superior Township supervisor who recently announced his resignation due to health issues. Commissioners also supported renaming the county-owned Head Start building in Ypsilanti in honor of the late Charles Beatty Sr., a pioneer in early childhood education.

Topics that emerged during public commentary included a plea to urge state legislators to repeal Michigan’s version of a “stand your ground” law. Board chair Yousef Rabhi indicated his intent to bring forward such a resolution on Sept. 18 – similar to one passed by the Ann Arbor city council on Aug. 8, 2013. Rabhi also plans to introduce a resolution on Sept. 18 advocating for stronger cleanup standards of 1,4 dioxane – the contaminant in an underground plume caused by Pall-Gelman’s Scio Township operations. The Ann Arbor city council passed a resolution on Sept. 3, 2013 related to this issue.

Also on Sept. 18, a public hearing will be held to get input on a proposed increase to the Washtenaw County tax that supports services for indigent veterans and their families. The current rate is 0.0286 mills – or 1/35th of a mill. The new proposed rate of 1/30th of a mill would be levied in December 2013 to fund services in 2014. It’s expected to generate $463,160 in revenues. The public hearing was scheduled by commissioners at their Sept. 4 meeting.

Platt Road Property

The Sept. 4 agenda included a resolution to create an advisory group to look at options for the county-owned Platt Road site in Ann Arbor, where the old juvenile center was located. [.pdf of Platt Road staff memo]

The idea of an advisory committee to help with the dispensation of this property was first floated at the board’s July 10, 2013 meeting, as part of a final vote on an overall strategic space plan for county facilities. The space plan proposed demolishing the former juvenile center and exploring redevelopment of the site at 2260 and 2270 Platt Road for affordable housing, alternative energy solutions, and county offices. Details of how the advisory committee would be appointed, as well as the committee’s formal mission, was an item to be worked out for a board vote at a later date.

Those details were brought forward on Sept. 4. The original Sept. 4 resolution called for a nine-member committee with the following composition:

• 2 county commissioners
• 1 Ann Arbor city councilmember
• 2 residents from the adjacent neighborhood
• The executive director of the Ann Arbor Housing Commission [Jennifer L. Hall]
• The director of Washtenaw County parks & recreation [Bob Tetens]
• The director of the Washtenaw County office of community & economic development [Mary Jo Callan]
• The Washtenaw County infrastructure management director [Greg Dill]

The timeline called for at least three committee meetings with a consultant later this year to develop the community design process, followed by public workshops in January of 2014. A final plan with recommendations would be completed and presented to the county board by May of 2014.

The proposal was heavily oriented toward the option of putting affordable housing on that site, which raised concerns for several commissioners. A staff memo listed several elements that would be explored, including: (1) affordable rental housing by the Ann Arbor housing commission; (2) an affordable housing green demonstration pilot project; (3) connection to the adjacent County Farm Park; (4) ReImagine Washtenaw Avenue design principles; and (5) other identified community priorities, such as geothermal, solar panels or community gardens.

According to the staff memo, the planning work would be funded by $100,000 in grants from the U.S. Department of Housing and Urban Development and the Michigan State Housing Development Authority, with funds to support the development of affordable housing. The money was part of a $3 million federal grant awarded to the county in 2011 and administered by the county’s office of community & economic development (OCED).

Platt Road Property: Board Discussion

Dan Smith (R-District 2) noted that the resolution didn’t include the option of selling the land. Perhaps it makes sense to include a real estate agent among the list of advisory committee members, he said. He hadn’t heard commissioners reach consensus about ruling out the option of selling the land – either in part or in its entirety.

Ronnie Peterson (D-District 6).

Ronnie Peterson (D-District 6) expressed surprise about the resolution, implying that there must have been other meetings about this topic that he didn’t know about. He said he had supported the concept of looking at options for the property, which he believed could be valued at $2 million or more. He supported involvement of neighbors in giving input into the property’s future.

However, the resolution before them was more far-reaching than he had expected, Peterson said. He felt it was earmarking money for an initiative – affordable housing – that the board hadn’t discussed or approved. He expressed concern for the county’s overall budget, noting that there will be cuts made in the coming year.

Yousef Rabhi (D-District 8) replied to Petersen, noting that the resolution passed by the board on July 10 had included an amendment to the language, in order to address concerns that Peterson had raised at that meeting – including an explicit statement that the board had ultimate control over what happens to the Platt Road site.

Andy LaBarre (D-District 7) had been integral in putting together this resolution, Rabhi noted, because the property is in LaBarre’s district. Rabhi assured Peterson that he hadn’t missed any meetings, and that this resolution was an evolution from the July 10 discussion.

Conan Smith (D-District 9) told Peterson he was excited by this community process. Smith wanted to understand Peterson’s concern: Was it that there aren’t sufficient options cited in the resolution? Peterson replied that the planning process is tapping into funding that hadn’t been approved by the board. He wondered where the money had come from, and whether it could be used for other projects.

Brett Lenart, OCED’s housing and infrastructure manager, reiterated information from the staff memo – that the funding came from a HUD sustainable communities regional planning grant. The overall grant is funding the Washtenaw Avenue corridor project and a range of other efforts, he said. The Michigan State Housing Development Authority (MSHDA) committed $100,000 in matching funds. One component of those matching funds is furthering sustainable solutions for at-risk populations, he said.

Lenart told commissioners that the Platt Road site seemed like a good opportunity to marry a county asset with the affordable housing goals supported by the grant. It’s near the Washtenaw Avenue corridor, near public transportation and job opportunities.

2270 Platt Road – on the west side of Platt, south of County Farm Park.

Conan Smith clarified with Lenart that the funds must be used for planning. Smith then said he agreed with Peterson in that the resolution didn’t direct the advisory committee to explore a broad range of options. “We’re pre-determining the outcome for this site, with this resolution,” Smith said. “We’re going to angle it toward affordable housing in some way.”

Lenart replied that the staff is suggesting that the primary discussion for the site should focus on affordable housing. If these grant funds are used for planning, then there needs to be a good faith effort to advance the cause of affordable housing, he said.

Conan Smith noted that the board hasn’t discussed whether affordable housing is its priority for the Platt Road property. He said he shared Peterson’s concern in that regard.

Rolland Sizemore Jr. (D-District 5) said he hadn’t known about this proposal, even though he’s a member of the county’s space committee. He also objected to having four directors on the advisory committee, suggesting that they could delegate that responsibility.

Sizemore asked what the $100,000 would be used for. Lenart replied that it would be used for a community design process, including fees for architects and consultants to run the public meetings and develop recommendations. Sizemore expressed skepticism about using that amount simply for planning. “I just don’t like the way this looks,” he said, to spend that much money just to tell the board what they should do with 13-14 acres of land. “If you’ve got that kind of money to throw around, then I think we’ve got a big problem.”

Lenart noted that if the planning funds aren’t spent at the Platt Road site, then the funds will be used for planning at other locations that might be suitable for affordable housing.

LaBarre reported that he’s talked to residents in these neighborhoods, and no one ever brought up the option of selling that site. This process is inclusive, he said, and he supported it. Commissioners won’t be obligated to act on the recommendations that will be delivered as the result of this process, he noted.

Brett Lenart, housing and community infrastructure manager for the county’s office of community & economic development (OCED). Seated next to him is Mary Jo Callan, OCED director.

Dan Smith stated his priorities for the property. He’d like to sell the portion along Platt Road, and reserve a portion adjacent to County Farm Park to make a greenway or park. He noted that 5 out of the 9 committee members, as proposed, are either commissioners or staff. If the board really wants diverse input, then they should get rid of some of the county representatives and include more residents.

Dan Smith also cautioned against asking citizens to do a lot of work on this committee, only to have it possibly ignored by the board. He felt commissioners should have a better idea of its priorities for the site, before asking an advisory committee to make recommendations.

Peterson said he didn’t mind exploring options or including citizen input. But it’s important that the board make sure the community receives the full value from that property, regardless of what is done with it. But the proposed resolution leads the county into the housing business, he said, and that concerns him. Peterson added that he doesn’t know what other affordable housing options are in the works, or what other planning efforts might benefit from this $100,000.

Rabhi read from the original July 10 resolution – specifically, LaBarre’s amendment that had been added to create the advisory committee. Rabhi also noted the additional language that had been included as a friendly amendment to address Peterson’s concerns at the time [italics include friendly amendment language]:

Be it further resolved that the board of commissioners create a nine-member Platt Road community advisory committee to review and develop a recommendation for the disposition of the county’s Platt Road site. The composition and charge of the advisory committee will be determined by the board of commissioners at a later date, provided however that the board of commissioners shall have the authority to ultimately determine the disposition of the Platt Road site.

Peterson said he’d given his trust when he voted for that resolution on July 10. He had assumed that names of people to serve on the committee would be brought forward. He didn’t know any other plans were in the works.

Felicia Brabec (D-District 4) indicated that she thought the committee would bring forward pros and cons for each option for the site, not just one recommendation. It seemed like the committee was being directed to lean toward one option, without exploring the full spectrum. Lenart replied that the intent is to present a concept for affordable housing at that site, that’s rooted in information and community input. He said if there’s no interest on the board in pursuing affordable housing there, then OCED would find another project that could use the planning funds.

Conan Smith floated the idea of amending the resolution to call for the advisory committee to deliver an initial high-level alternatives analysis, with a recommendation. Then the board could direct the committee and staff to implement the planning process for whatever alternative is chosen.

Platt Road Property: Board Discussion – Amendment

Dan Smith proposed amending the resolution to create more diversity on the committee – adding an Ann Arbor city council designee and three county residents, including one with real estate experience. Alicia Ping (R-District 3) objected to singling out Ann Arbor for additional representation. Although the land is located in Ann Arbor, it’s owned by the county – paid for by all county taxpayers, she noted. Yousef Rabhi proposed alternative wording, considered as a friendly amendment to Smith’s version, to add four slots to the committee for Washtenaw County residents, including at least one with experience in real estate.

Outcome on amendment: It passed on a 6-3 vote, over dissent from Ronnie Peterson (D-District 6), Rolland Sizemore Jr. (D-District 5) and Andy LaBarre (D-District 7).

Platt Road Property: Board Discussion – Final Debate

Alicia Ping asked additional questions about the planning grant. Brett Lenart explained that it couldn’t be used to plan exclusively for a park or commercial development – and that affordable housing had to be at least considered in good faith in order for the planning grant to be used.

Yousef Rabhi (D-District 8).

Ping thought Ronnie Peterson had raised some good points, and she felt more comfortable doing a high-level alternatives analysis, as Conan Smith had proposed.

Andy LaBarre noted that the resolution passed by eight commissioners on July 10 – Rolland Sizemore Jr. had been absent – called for a nine-member advisory committee to review and develop a recommendation for the disposition of the Platt Road site. He sensed that there wasn’t support for the current resolution, but he hoped it wouldn’t cause them to “piddle away time on this unnecessarily.” If the board wants to do something with the site, they should make that decision relatively quickly, he said. Whatever they do, LaBarre said, he would advocate for involving residents near the site.

Yousef Rabhi asked how other funds from the $3 million grant were being spent. Lenart replied that the grant was funding planning efforts for the Washtenaw Avenue corridor, working to strengthen neighborhood groups and associations, helping new tenants at the Hamilton Crossing complex in Ypsilanti with literacy, budgeting and other life skills, and improving pedestrian crossings on the south side of Ypsilanti. The grant also had funded some of the work for the Ann Arbor Downtown Development Authority’s Connecting William Street project, he said, and is paying for the Arts Alliance to incorporate public art into some infrastructure projects.

Rabhi clarified with Lenart that affordable housing must be considered in order for the planning to be eligible for this grant funding, but affordable housing doesn’t have to be part of the final recommendation. The key is that affordable housing will be part of the discussion, Rabhi said, along with other options. He added that no commissioner is opposed to affordable housing.

Peterson agreed, saying that the issue is the proper use of this grant funding. He noted that the eastern part of the county, which he represents, is the reason why this kind of funding is available to the county – because of the low income residents there. He hoped the board could establish a committee with no budget. He didn’t think this grant was the appropriate funding mechanism, and he didn’t think OCED was the appropriate department to handle this project. The facilities staff should be in charge, he said, noting that the county has policies and procedures for the disposal of property.

Rabhi then suggested tabling the item until the board’s Sept. 18 meeting. He asked Greg Dill, the county’s infrastructure management director, to work with commissioners and staff to bring forward an alternative resolution on Sept. 18.

Dan Smith moved to postpone the resolution.

Outcome: The motion to postpone passed unanimously.

Trial Court Software

At their Sept. 4 meeting, commissioners acted on two items related to a new case management software system for the Washtenaw County trial court.

Donald Shelton, chief judge of the Washtenaw County trial court.

The board was asked to give final approval to the selection of a new record-keeping software system for the court that’s estimated to cost $2.3 million. The Tyler Odyssey Case Records Management System will replace an outdated software system that hasn’t been supported by the previous vendor since 2005, when the vendor went out of business.

The original resolution, put forward at the board’s Aug. 7, 2013 meeting, had identified the following funding sources for this project: (1) a $551,998 refund from the state related to an unfinished pilot project; (2) $200,000 from an anticipated 2013 surplus in the trial court budget; (3) $700,000 from the county’s IT fund balance; and (4) $899,463 from the county’s capital reserves, to be repaid with any trial court surplus starting in 2014.

However, some commissioners weren’t comfortable with the funding sources that were identified, so an alternative resolution was brought forward during the Aug. 7 meeting that did not include references to funding sources. An amendment to that alternative resolution – made after considerable discussion and procedural maneuverings – stated that the board approved the selection of this software system, and directed the county administrator to develop a maintenance and implementation plan, and to identify funding sources by the time of the board’s Sept. 4 meeting.

The funding sources were identified in a separate Sept. 4 resolution: (1) a $551,998 refund from the state related to an unfinished pilot project; (2) $200,000 from an anticipated 2013 surplus in the trial court budget; (3) $300,000 from the county’s IT fund balance; and (4) $1,299,463 from the county’s capital reserves, to be repaid with any trial court surplus starting in 2014.

A staff memo accompanying the funding resolution also notes that an annual software maintenance and support fee – starting at $188,933 – will be offset by revenue from fees associated with all Washtenaw County trial court electronic filing.

Commissioners discussed the approach to funding for about an hour on Sept. 4 with Donald Shelton, chief judge of the trial court.

Trial Court Software: Board Discussion

Dan Smith (R-District 2) asked to pull out the funding resolution for a separate vote.

Alicia Ping (R-District 3) asked about the maintenance funding. Beyond the fees from e-filing, how will the rest of the annual maintenance costs be paid for? Greg Dill, director of infrastructure management, replied that costs would be covered from the county’s IT maintenance fund.

In response to another query from Ping, chief judge Donald Shelton said that the e-filing fee is in addition to the regular filing fee. It’s estimated to be $6 per filing, with an initial annual projection of $45,000 in revenues. The e-filing will start with civil cases, with phased roll-out to other cases, including criminal and probate. Eventually, he added, it will likely be mandatory to file documents electronically. So those initial annual revenue estimates, which Shelton characterized as conservative, are expected to increase. All revenues from e-filing will be used to offset the annual maintenance costs. Revenues will increase as more documents get filed electronically, and savings from not using paper documents will also increase, he said.

What happens when the e-filing revenues exceed the maintenance costs: Who gets the extra revenue? Ping wondered. Shelton recalled that when he was mayor of Saline, someone pointed out that action being taken might create a parking problem. “I said, ‘Oh, I pray for a parking problem downtown every day,’” Shelton joked. He said it’s not the court’s intention to profit from e-filing, other than to cover costs to support the system.

Alicia Ping (R-District 3) explains that her husband – attorney David Shand – showed her how he could access documents electronically from other county courts on his phone.

Conan Smith (D-District 9) pointed out that the previous resolution had indicated that e-filing revenues would be used to pay back the county’s capital reserves. Now, it’s flipped, he said – the e-filing is going to cover operating (maintenance) costs, and are not repaying the county’s capitalization of the system.

Dill said the funding model is very much the same as the original proposal. The county administration has talked to the trial court about reducing its operating budget by $200,000 annually, Dill said. Those reductions can be applied to repay the county’s capital reserves, which are helping to fund the initial cost of the new system.

Shelton added that this new system will enable the trial court to meet its targets for structural budget reductions. He pointed out that for eight years, the court’s software wasn’t supported by the vendor because that company went out of business. So during that time, the county didn’t pay annual maintenance costs. That’s almost $700,000 that wasn’t spent, he said, because the court has been “limping along in our Studebaker.” The court was able to do that because one of its employees was able to keep the system running. However, that employee is no longer working for the county. “If this system goes down, our judicial system in the county simply stops operating,” Shelton said.

Shelton noted that an estimated 40% of the county residents will come into contact with the judicial system at some point in their lives – for things like a divorce, or a child who’s in trouble, or a crime. Having a new system to help run the operation is a need, not a want, he said. It’s an investment.

Conan Smith said he understood the need. But his concern is about how that system is funded, given the myriad countywide needs. He’d prefer to see a fee schedule developed to cover the capitalization and operations costs of this new system. Smith suggested perhaps a $30 increase to the current $150 regular filing fees, beyond any charges for e-filing.

Shelton replied that the court is constrained by the state in terms of how much it can charge for filing fees. The state legislature sets those fees – for example, it costs $100 to file a lawsuit. There’s more flexibility in electronic filing fees, which are subject to negotiation between the state and the court, he said.

Shelton noted that he has pledged to reduce the court’s operating budget, which will be made possible by this new system.

Smith described Shelton’s pledge as “rock solid.” However, Smith added, the court’s leadership will change soon. [Shelton can not run for re-election because he'll be over 70 years old when his current term ends. The state constitution requires that judicial candidates at the time of election must be younger than 70 years old.] “Then we’re in a situation with folks who didn’t cut that deal,” Smith said. The priorities of a new court leadership might shift, so Smith wanted a formal agreement that lays out how the project will be capitalized from court funds.

Shelton replied that he can’t bind future judges any more than Smith can bind future commissioners. However, he added that he could speak for the bench in that when they make a commitment, they keep it.

Rolland Sizemore Jr. (D-District 5) voiced concern that additional software upgrades will be needed in other county departments and in the county-funded district courts. He cited expenses associated with moving the dispatch operations from downtown Ann Arbor to the county’s Zeeb Road facility. Dill reported that staff is working on a 10-year technology plan, which would address Sizemore’s concerns.

Conan Smith (D-District 9).

Yousef Rabhi (D-District 8) agreed with Conan Smith about paying back the county’s capitalization costs. Rabhi reminded Dill that they’d talked about using the e-filing revenues to pay back the county’s capital reserves – not to offset maintenance costs. Shelton clarified that the e-filing revenues won’t be coming directly to the court. Rather, Tyler Technologies will be deducting those fees from its maintenance bill to the courts – that’s why it made sense for the e-filing revenues to offset maintenance, he said.

Rabhi said the point is to build in a way that the court can reimburse the capital reserves, to offset the county’s $1.3 million investment. The resolution needs to include language that spells out how that will happen.

Dan Smith (R-District 2) introduced some new issues. He said he’s heard anecdotally that the new system isn’t needed, but Dill and IT manager Andy Brush have spent a lot of time looking into it, and he’d go with their recommendation. He also noted that the courts had chosen to set themselves up in a different way from other county departments, getting their budget as a lump sum that’s governed by a memorandum of understanding. Given that, he has difficulty approving $1.3 million from the county’s capital reserves to a unit over which the board has essentially no financial oversight.

Dan Smith said he appreciated Shelton’s commitment, but the board has experienced recent situations where there were misunderstandings about promises that were made “that got us into a whole lot of hot water.” What really counts isn’t what’s talked about at the board table, Smith said, “but what we actually vote on. We need these types of things in writing.”

Conan Smith pointed out that from a budgetary standpoint, there’s no cash available to allocate to the capital reserves. The court will receive an annual maintenance bill, minus the amount of e-filing revenues. “I’d rather see a much more solid, structured revenue solution,” he said.

Shelton clarified that the maintenance bill is covered by the county’s IT fund, and isn’t part of the court’s lump sum budget. So any reductions in that maintenance bill will be money that the IT fund doesn’t have to expend. Responding to a query from Ronnie Peterson (D-District 6), Shelton noted that the annual maintenance cost includes future upgrades.

Shelton again reiterated that with the new system in place, the court will be able to meet its $200,000 budget reduction target. Over six years, that $200,000 annual reduction will cover the county’s $1.3 million capital investment in the system, he said.

Shelton noted that all county boards in the state chafe at the independence of courts as a separate unit of government. The courts are not a county department, he said. However, he felt the relationship between the board and the courts in Washtenaw County was better than any of Michigan’s other 82 counties. And although the board doesn’t have absolute control over the court’s budget, he said, the court gives a detailed report about how its money is spent, so that the administration knows exactly what’s happening with the court’s budget, and why.

Shelton also highlighted a “performance dashboard” that’s posted on the court’s website, so anyone can view the fluctuations in filings and dispensations.

Conan Smith replied that his concern is to find a predictable funding source that doesn’t compromise the county’s other investment priorities. He noted that he’s been talking with Mary Jo Callan, director of the county’s office of community & economic development, about the possibility of “social impact” bonds, as an example.

Trial Court Software: Board Discussion – Amendment

Rabhi proposed an amendment to add a resolved clause to the resolution:

Be it further resolved that the offsets to the annual software maintenance and support costs created by the e-filing revenue will be used to reimburse the $1,299,463 of capital investment from the capital reserve fund.

After some additional discussion, Ping proposed an amendment to Rabhi’s amendment, adding this sentence: “Once the capital fund is reimbursed, additional offset funds will be allocated to the tech plan fund balance.”

Outcome on Ping’s amendment to Rabhi’s amendment: It was unanimously approved on a voice vote.

So the final version of the Rabhi’s amendment to the main resolution stated:

Be it further resolved that the offsets to the annual software maintenance and support costs created by the e-filing revenue will be used to reimburse the $1,299,463 of capital investment from the capital reserve fund. Once the capital fund is reimbursed, additional offset funds will be allocated to the tech plan fund balance.

Outcome on Rabhi’s amended amendment: Commissioners unanimously approved the amendment on a voice vote.

Trial Court Software: Board Discussion – Final Vote

Rabhi then called the question, a procedural move intended to force a vote. Curtis Hedger, the county’s corporation counsel, noted that six votes are required in order to pass a motion to call the question.

Outcome on motion to call the question: It passed unanimously.

The board then voted on the main resolution, as amended, on funding of the Tyler software system.

Outcome: The resolution passed on an 8-1 vote, over dissent by Dan Smith (R-District 2).

Trial Court Software: Final Approval

Both resolutions – the funding resolution, and the general resolution for the Tyler system that was given initial approval on Aug. 7 – were on the board agenda for a final vote later in the meeting.

From left: Greg Dill, director of infrastructure management, and commissioner Dan Smith (R-District 2).

There was additional discussion, generally repeating themes and information that had been covered earlier in the meeting. Conan Smith highlighted the fact that the county would be taking on an additional expense for maintenance that will be absorbed by the IT fund. He wanted to know what cuts would be made to the IT budget in order to accommodate that additional maintenance expense.

Greg Dill replied that as his staff looked at the mix of all IT needs throughout the county, they felt confident they could absorb the trial court maintenance costs. The overall IT funding, even with additional maintenance costs, is sufficient to take care of the needs of the entire organization, he said. Kelly Belknap, the county’s finance director, explained that part of the IT budget includes revenues from what’s called the “1/8th mill” fund, which pays for infrastructure needs. Not all of the IT funding comes from the county’s general fund.

Outcome on final approval for the funding resolution: It passed on an 8-1 vote, over dissent by Dan Smith (R-District 2).

Outcome on final approval for the general Tyler software resolution: It passed on an 8-1 vote, over dissent by Kent Martinez-Kratz (D-District 1). He did not indicate why he voted against the resolution. He had voted in favor of it on Aug. 7.

Trial Court Child Care Fund

In another item related to the trial court, the board was asked to give initial approval to 2013-2014 state child care fund expenditures of $9,425,785 for the trial court’s juvenile division and county dept. of human services. About half of that amount ($4,712,892) will be eligible for reimbursement from the state. [.pdf of budget summary]

According to a staff memo, the child care fund is a joint effort between state and county governments to fund programs that serve neglected, abused and delinquent youth. Part of this year’s funding will support a new 10-bed treatment program that will be housed in the county’s youth center facility, opening in November of 2013. From the staff memo:

The treatment program in its initial phase will exclusively provide treatment services to females aged 12-17 using an integrated therapeutic treatment model. The program will offer a short-term 90 day option as well as a 6 to 9 month long-term treatment option. The second phase of treatment programming will expand services to males aged 12-17.

The new program is expected to generate revenue from out-of-county treatment referrals.

The expenditures will result in a net increase of 5.46 jobs. A total of 10.46 full-time equivalent positions will be created, and 5 FTEs will be eliminated.

Trial Court Child Care Fund: Board Discussion

Dan Smith (R-District 2) clarified with county administrator Verna McDaniel that the county’s cost for this program is about $4.7 million. McDaniel stated that the funds are subject to the county’s memorandum of understanding with the trial court. Donald Shelton, chief judge of the trial court, clarified that only about a third of the funds are subject to the MOU. The MOU does not cover funding to the county’s department of human services or the youth center.

Rolland Sizemore Jr. (D-District 5).

Felicia Brabec (D-District 4) wondered how the new treatment program fits into the county’s continuum of care. She also wanted to make sure that adolescents in Washtenaw County have access to the program.

Lisa Greco, director of children’s services for the county, explained that the new program would expand therapy treatment services that the county currently purchases from other providers. The program would involve the child and entire family, she said – it would be part of the entire continuum of care that the county provides.

Linda Edwards-Brown, the trial court’s juvenile and probate court administrator, noted that the program will initially serve only females, but the plan is to eventually expand to include males.

Brabec wondered how this program would be different from detention. Greco explained that there are parts of the juvenile facility that are secured, and other areas that are not secured. Activities in the new treatment program would take place in the unsecured areas, she said. There will also be a team approach to treatment and intervention.

Directing her comments to commissioner Dan Smith, Greco noted that all positions in the county’s youth center are 50% funded from the state child care fund. [Earlier in the meeting, Smith had objected to the resolutions on the agenda that added jobs to the county's payroll.]

Yousef Rabhi (D-District 8) pointed out that this program is built first and foremost for Washtenaw County residents. The county wants to create partnerships with neighboring counties and courts, but that’s not the program’s primary focus, he said. Secondarily, those services could be made available to residents outside the county.

Edwards-Brown noted that the trial court’s first response is to try to keep kids at home, and there are several in-home programs that are available. It’s the court’s last resort to place adolescents in a treatment facility.

Rolland Sizemore Jr. (D-District 5) highlighted this project as an example of different county departments – including the infrastructure management group – working together.

Outcome: Commissioners gave initial approval to the child care fund expenditures, over dissent by Dan Smith (R-District 2). A final vote is expected on Sept. 18.

Micro Loan Program for Small Business

A countywide micro loan program for small businesses was on the Sept. 4 agenda for initial approval. The resolution would authorize the county’s office of community & economic development to contract with the Center for Empowerment and Economic Development to manage this program. CEED already handles a smaller micro loan program focused on the eastern side of the county. [.pdf of CEED micro loan proposal]

From left: Alicia Ping (R-District 3) and Felicia Brabec (D-District 4).

Micro loans would range from $500 to $50,000, for businesses that can’t get conventional financing. CEED has a $5 million borrowing capacity from the U.S. Small Business Administration, and expects to make $300,000 in micro loans in the next two years in Washtenaw County. The county would provide $45,000 out of revenues from levying the Act 88 millage. Of that amount, $35,000 would be used to seed a loan loss reserve fund and $10,000 would be designated for initial operating costs.

To be eligible for a micro loan, businesses must be based in Washtenaw County and have been turned down by two financial institutions for loans over $20,000. Other requirements include: (1) a business plan for businesses that are less than 3 years old; (2) a marketing plan for businesses that are 3 years or older; (3) two years of financial statements and tax returns; and (4) a personal financial statement.

The county is allowed to levy up to 0.5 mills under Public Act 88 of 1913, but currently levies a small percentage of that – 0.06 mills, which will bring in $696,000 this year. It’s used for programs run by the county’s office of community & economic development, and to fund the county’s MSU extension office. Act 88 does not require voter approval. It was originally authorized by the county in 2009 at a rate of 0.04 mills, and was increased to 0.043 mills in 2010 and 0.05 in 2011.

Last year, Conan Smith (D-District 9) of Ann Arbor proposed increasing the rate to 0.06 mills and after a heated debate, the board approved the increase on a 6-5 vote. [See Chronicle coverage: "County Board Debates, OKs Act 88 Tax Hike."] Increasing this tax was one of several revenue options that the county commissioners discussed at their Aug. 8, 2013 working session, as part of a broader strategy to address a projected $3.9 million budget deficit in 2014. [See Chronicle coverage: "County Board Eyes Slate of Revenue Options."]

The county has identified economic development as one of its main budget priorities.

Micro Loan Program for Small Business: Board Discussion

Alicia Ping (R-District 3) asked for examples of how this type of loan has been used successfully. Todd Van Appledorn with CEED responded that these loans are intended for entrepreneurs who have trouble getting loans through traditional sources, like banks or credit units. Types of businesses range from small manufacturers to retail shops or even consultants. Since CEED started its micro loan program in 1993, they’ve made over $5 million in loans, he said.

County administrator Verna McDaniel.

Generally, banks require two years of credit history before lending, Van Appledorn said, and new businesses don’t have that track record. Or some entrepreneurs have credit issues that don’t relate to their business – if they’ve had medical expenses, for example. The average micro loan made by CEED is $10,000.

Ping recalled that when she served on the Saline city council, a micro loan program was operated through the city’s economic development council. All the loans got paid back, she said, although not all the businesses were successful. A restaurant that’s been in downtown Saline for 20 years had received a micro loan. She thought it would be a great county program.

Yousef Rabhi (D-District 8) asked how this program fits into the county’s overall economic development strategy. Tony VanDerworp with the county’s office of community & economic development explained that existing programs cover the high tech and life sciences sectors, as well as larger businesses. Now, OCED is working to find ways to support locally owned small businesses, he said. Efforts include this proposed micro loan program, changes to procurement policies, and support for the local food sector, among other things.

Responding to another question from Rabhi, Van Appledorn described CEED as an intermediate lender. The county’s program and seed funding will allow CEED to borrow through the U.S. Small Business Administration for the micro loans.

Rolland Sizemore Jr. (D-District 5) wondered what entity will decide who gets the loans. That’s CEED’s job, Van Appledorn said. What’s the success rate? Sizemore asked. For a smaller eastern Washtenaw County micro loan program, from July 2009 through April 2013, 14 loans were approved totaling $270,000, VanDerworp reported. No loans have defaulted.

Ronnie Peterson (D-District 6) praised CEED, noting that it has received national attention for its work. He hoped to see the program expand even further.

Dan Smith (R-District 2) said he supported the activities, but was concerned about using taxpayer dollars to fund businesses that can’t get conventional financing. People start businesses in other ways, he noted, such as using their home equity, personal credit, or loans from friends and family.

Smith also pointed out that the loan committee meets virtually, and that’s a concern. The public should have an opportunity to see how their money is being spent, and he wondered whether these meetings have to comply with the Michigan Open Meetings Act. Van Appledorn said that CEED follows the SBA’s guidelines for this program, and has never had a problem in the past 30 years handling it this way.

Outcome: Commissioners gave initial approval to the micro loan program, over dissent from Dan Smith (R-District 2). A final vote is expected on Sept. 18.

Increase in Parks Stewardship Staff

A resolution to create three new full-time jobs for stewardship of Washtenaw County’s nature preserves was on the Sept. 4 agenda for initial approval.

The positions include: (1) a park laborer with a salary range of $31,507 to $41,766; (2) a park associate/principle planner with a salary range of $40,253 to $61,195; and (3) a stewardship coordinator, with a salary range of $43,373 to $56,586.

The additional jobs reflect a change approved by the county board nearly a year ago. At their Sept. 19, 2012 meeting, commissioners voted to amend the Natural Areas Ordinance No. 128, which established the county’s natural areas preservation program in 2000.

Bob Tetens, parks & recreation director, and Meghan Bonfiglio, superintendent of park planning.

The change removed a previous restriction that only 7% of millage funds could be used for management or stewardship. The goal was to use $600,000 per year for management and stewardship. Of that, roughly $240,000 would be used for ongoing stewardship activities, and $360,000 would remain to be invested in a dedicated reserve for long-term land stewardship.

According to a staff memo, the county’s parks system manages more than 4,500 acres of land in 13 parks and 22 preserves. In addition to the 556 acres of property already “actively” managed in the nature preserves, the staff also have active stewardship responsibilities for another 372 acres of prime natural areas within the county parks system. Overall, staff has identified 1,868 acres – or roughly 42% of the system’s current total acreage – as core conservation areas.

Funding for these new positions would be paid for entirely from the countywide natural areas millage, which was initially approved by voters in 2000 and renewed in 2010. The current 0.2409 mill tax raises roughly $3.5 million in annual revenues, and runs through 2021.

Increase in Parks Stewardship Staff: Board Discussion

Board chair Yousef Rabhi (D-District 8) described it as the right move to make, reflecting the county’s value of protecting its ecosystem. He noted that the city’s of Ann Arbor’s natural areas preservation program has a budget of about $700,000 to staff a system about half the size of the county’s natural areas, so “there’s always more that we can do.” It’s a step in the right direction, he said.

Dan Smith (R-District 2), who serves on the county parks & recreation commission, pointed out that during this meeting the board would be increasing the county’s overall headcount by nearly 10 FTEs, including the increase to the parks staff. It helps that some of the positions will be paid for out of a dedicated millage – as is the case with the parks staff – but it’s still an increase in positions, he said.

Rolland Sizemore Jr. (D-District 5), who also is a member of the parks & rec commission, praised Tetens and the parks staff. He noted that the intent is to slow down the amount of acquisitions and shift to a maintenance mode. However, he also shared concerns in general about increasing staff size.

Outcome: Commissioners gave initial approval to the staff increase. A final vote by the board is expected on Sept. 18.

Non-Discrimination Policy

At its Sept. 4 meeting, commissioners were asked to give initial approval to reaffirm and update the county’s affirmative action plan, as well as other nondiscrimination in employment-related policies. [.pdf of staff memo and policies]

The primary change adds a prohibition of discrimination on the basis of gender identity, gender expression, and sexual orientation.

The resolution’s three resolved clauses state:

NOW THEREFORE BE IT RESOLVED that the Washtenaw County Board of Commissioners reaffirms its intent to prohibit discrimination in Washtenaw County against any person in recruitment, certification, appointment, retention, promotion, training and discipline on the basis of race, creed, color, gender, gender identity, gender expression, sexual orientation, national origin, age, handicap, veteran status, marital status, height, weight, religion and political belief.

BE IT FURTHER RESOLVED that the Washtenaw County Board of Commissioners shall strive to promote a workforce that welcomes and honors all persons and that provides equal opportunity in employment.

BE IT FURTHER RESOLVED that the Washtenaw County Board of Commissioners directs the Human Resources / Labor Relations Director to update the Affirmative Action Plan, as well as policies Prohibiting Discrimination in Employment, Sexual Harassment, and the County’s Statement of Equal Employment Opportunity to reflect the Boards commitment and reaffirmation described herein.

Non-Discrimination Policy: Public Commentary

During public commentary at the start of the meeting, community activist Jim Toy directed his first comments to commissioner Conan Smith (D-District 9).

From left: Jim Toy, Yousef Rabhi and Jason Morgan.

Toy recalled when he’d spoken to the Ann Arbor city council decades ago in front of then-mayor Al Wheeler, who was Smith’s grandfather. “I looked at the mayor and said, ‘Mayor Wheeler, I am totally intimidated because you look exactly like my grandfather,’” Toy said. He added: “I feel no such intimidation tonight.”

Toy thanked the board for its continued support of human and civil rights, and supported expansion of the county’s affirmative action plan and related policies. It has symbolic, political, psycho-social and personal weight, he said. The diverse components of human sexuality – sex, gender, gender identity, gender expression and sexual orientation – “must receive stated protection,” Toy said. “Otherwise, we all are at risk of discrimination and harassment and assault, up to and including murder.” He ended his remarks by telling commissioners: “Namaste – walk in sunshine.”

Jason Morgan, a board member of the Jim Toy Community Center and director of government relations at Washtenaw Community College, also spoke in support of the changes. He appreciated the county’s support of LGBT protections and human rights protections. The county has been known for a long time as a leader in this regard. He noted that other supporters – including Katie Oppenheim of the Michigan Nurses Association – were there to urge commissioners to support the changes.

Outcome: Commissioners unanimously voted to give initial approval to the non-discrimination changes. A final vote is expected on Sept. 18.

Funding for Office of Community & Economic Development

In addition to the micro loan program reported in this article (see above), several other items were on the agenda related to funding for programs managed by the county’s office of community & economic development, totaling nearly $2 million:

• $88,263 from the federal dislocated worker training (DWT) national emergency grant [.pdf of staff memo for DWT grant]
• $16,277 in federal funding for the Michigan Works! Service Center Operations [.pdf of staff memo for Michigan Works funding]
• $50,000 in federal Trade Adjustment Assistance (TAA) employer-based training foundation funding [.pdf of staff memo for TAA funding]
• $287,860 in federal Dept. of Energy weatherization funding [.pdf of staff memo for weatherization funds]
• $274,792 in federal Emergency Solutions Grant funding. The total program budget is $412,188, which includes $137,396 of in-kind matching contributions. The program supports the Housing Access for Washtenaw County (HAWC) partnership between Salvation Army, the Shelter Association of Washtenaw County and the Interfaith Hospitality Network of Washtenaw County. [.pdf of ESG staff memo]
• $516,156 in federal Community Services Block Grant (CSBG) funds [.pdf of CSBG staff memo]
• $21,828 in discretionary funds from the federal Community Services Block Grant (CSBG) to provide free income-tax preparation for low-income residents [.pdf of discretionary CSBG staff memo]
• $703,214 in federal funding for a senior nutrition program, with a total budget of $873,372. Additional funding comes from a USDA reimbursement of $100,001 and in-kind contributions of $70,157. [.pdf of senior nutrition memo]

The board also was asked to give initial approval to a blanket resolution covering nearly 30 annual entitlement grants received by the county totaling an estimated $8.8 million, beginning in 2014. According to a staff memo, these grants are awarded on a reoccurring basis based on pre-existing state or federal allocation formulas. They require board approval as individual items, which “ends up consuming a significant portion of Board and staff time throughout a given year, as formula grants are on a variety of different fiscal years, and are awarded at several different points throughout the year. Furthermore, the piecemeal nature of the resolutions does not provide a holistic overview of the continuum of services provided to the community by OCED,” the memo states. [.pdf of staff memo regarding blanket grant approval]

There are several categories of grants that will continue to require a board vote, even if this blanket approval is passed. Those categories include:

• competitive grants;
• grants that are not based on pre-established federal or state funding formulas or entitlement formulas;
• new grants, or ones that have not been previously awarded to or administered by OCED;
• grants that would require a county general fund appropriation in excess of the amount approved by the county board in the budget;
• grants that would require a change in OCED position control;
• grants more than $100,000 or 10% more than the anticipated amount, whichever is greater.

Funding for OCED: Board Discussion

In response to a question from Felicia Brabec (D-District 4) about the weatherization grant, program coordinator Aaron Kraft clarified that the grant would fund 40 weatherization jobs in 2013.

Brabec also asked about changes to the senior nutrition program. Andrea Plevek of the OCED explained that because of sequestration and other funding constraints, OCED is working with partner organizations to streamline delivery of meals to senior citizens. Those changes include providing shared meal service at senior centers wherever possible, and reallocating financial resources to local programs based on both demand for service and need. Partners that provide both shared-meal service and home delivery are the Ann Arbor housing commission (Baker Commons); Chelsea Senior Center; Dexter Senior Center; and Northfield Senior Center.

Andy LaBarre (D-District 7), who serves as the board’s representative to the Area Agency on Aging 1-B, asked if there was anything beyond sequestration happening at the federal level, that the county should be aware of. Plevek replied that the state agencies, which pass through federal funding to the county, have prioritized homebound meal delivery. She wasn’t aware of any other action at the federal level.

Ronnie Peterson (D-District 6) asked for a report on the overall impact of federal sequestration. The county receives a lot of federal dollars, he noted, and he’s very concerned about the impact. It’s crucial to know as the administration develops its next budget, Peterson said, because the board will need to decide whether departments that are losing federal funding will get more support from the county to make up the shortfall.

County administrator Verna McDaniel said she’d work with department heads to pull that information together. LaBarre, who chairs the board’s working sessions, said he’d be willing to dedicate an upcoming session to that topic.

Outcome: All OCED items were given initial approval, with final votes expected at the board’s Sept. 18 meeting.

Hearing for Indigent Veterans Services Tax Hike

Commissioners were asked to set a public hearing for Sept. 18 to get input on a proposed increase to the Washtenaw County tax that supports services for indigent veterans and their families.

Michael Smith, director of the county’s department of veterans affairs, talks with commissioner Felicia Brabec (D-District 4).

The current rate, approved by the board last year and levied in December 2012, is 0.0286 mills – or 1/35th of a mill. The new proposed rate of 1/30th of a mill would be levied in December 2013 to fund services in 2014. It’s expected to generate $463,160 in revenues.

The county is authorized to collect up to 1/10th of a mill without seeking voter approval. That’s because the state legislation that enables the county to levy this type of tax – the Veterans Relief Fund Act – predates the state’s Headlee Amendment. The county first began levying this millage in 2008. Services are administered through the county’s department of veterans affairs.

Increasing this tax was one of several revenue options that the county commissioners discussed at their Aug. 8, 2013 working session, as part of a broader strategy to address a nearly $4 million projected budget deficit in 2014. See Chronicle coverage: “County Board Eyes Slate of Revenue Options.”

There was no discussion on this item. In addition to the public hearing, the board is expected to vote on the tax hike on Sept. 18.

Outcome: Commissioners set the Sept. 18 public hearing on an increase in the millage to pay for indigent veterans services.

CSTS Budget

Commissioners were asked to give initial approval to the 2013-14 budget for the community support and treatment service (CSTS) department, from Oct. 1, 2013 through Sept. 30, 2014. The $34.96 million budget includes $29.598 million in revenue from the Washtenaw Community Health Organization (WCHO), which contracts with CSTS to provide services for people who are mentally ill and developmentally disabled. Other revenue comes from the Haarer bequest ($165,192), a contract with the county sheriff’s office ($246,846), smaller contracts with other entities, and fee-for-service billing. [.pdf of CSTS budget]

The budget calls for putting six full-time positions and two part-time jobs on “hold vacant” status. Those positions are currently unfilled.

The resolution also authorized county administrator Verna McDaniel to approve a service agreement with the WCHO, which is a separate nonprofit that’s a partnership between the county and the University of Michigan Health System.

CSTS Budget: Board Discussion

Discussion was brief. Felicia Brabec (D-District 4) asked for an explanation about the changes that CSTS is undergoing.

Trish Cortes, WCHO director, reported that over the past fiscal year, the delivery of all direct services has been shifted from WCHO to CSTS. Now, CSTS provides all direct services, under contract with the WCHO. [Further explanation of these changes, and additional discussion among commissioners, took place at the board's April 3, 2013 meeting.]

Outcome: Commissioners unanimously gave initial approval to the CSTS budget. A final vote is expected on Sept. 18.

Public Health Budget

The Sept. 4 agenda included a resolution approving the public health department’s $10.796 million budget for 2013-14, from Oct. 1, 2013 through Sept. 30, 2014. The budget includes $3.553 million in an appropriation from the county’s general fund, and $243,226 from the department’s fund balance. [.pdf of staff memo regarding public health budget]

As part of the budget, the public health department is proposing a net increase of 1.5 full-time equivalent positions. That results from eliminating 4.5 FTEs and creating 6 new positions. In addition, 5 positions will be put on “hold vacant” status, effective Oct. 1.

The resolution also included a proposed fee schedule for vaccines and clinic visits. [.pdf of proposed fee schedule] The minimum fee is proposed to be raised from $30 to $40.

Public Health Budget: Board Discussion

Rolland Sizemore Jr. (D-District 5) noted that public health director Dick Fleece is retiring, and that provides a good time to look at possibly restructuring the department. He also expressed concern over the listing of salary ranges for new positions, rather than giving each position a set salary.

From left: Lefiest Galimore and Dick Fleece, the county’s public health director.

Dan Smith (R-District 2) said he agreed with Sizemore. If changes are going to be made, this is the chance to do it with minimal impact.

Felicia Brabec (D-District 4) pointed out that the staff memo refers to the impact of federal sequestration on the budget, and she wondered when more information would be available on that.

Fleece responded, saying the department had received more information since the staff memo for this resolution was written. The areas that he’d been concerned about were emergency preparedness, HIV/AIDS services, and the Women Infants and Children (WIC) program. The department has subsequently learned that the state of Michigan will absorb the cuts and maintain funding at the current levels, he said.

Conan Smith (D-District 9) thought commissioners should at some point talk about recreating the public health board. Right now, the county board plays that role, he noted, but they lack specific expertise in that area “and we frankly don’t do our due diligence on things that [staff] could probably use a professional board for in public health.” There’s a wide array of resources in this community, he noted, including hospitals and the University of Michigan School of Public Health.

Ronnie Peterson (D-District 6) and Yousef Rabhi (D-District 8) both agreed. Fleece said he’d welcome a public health board, though he noted the department does have an advisory committee that also serves as the health code board of appeals.

Fleece also pointed out that when he was appointed health director, he retained his position as environmental health coordinator, which saved the county the cost of filling that position. He thanked his management team, many of whom attended the meeting, as well as the county’s medical examiner, Jeff Jentzen, who Fleece said attended to show support.

Outcome: The board unanimously approved the public health budget and fee schedule.

2013 Budget Adjustments

A budget adjustment resulting in a $654,670 increase in 2013 general fund revenues and expenses, bringing the total general fund budget to 103,218,903, was on the Sept. 4 agenda for final approval. [.pdf of 2013 budget adjustment chart]

An initial vote had been taken on Aug. 7, 2013, following significant debate and some failed amendments proposed by Conan Smith (D-District 9). His amendments would have restored over $1 million in funding to programs and departments that had been cut in previous budget cycles. During the Aug. 7 meeting, other commissioners expressed general support for his sentiments, but cautioned against acting quickly and not giving sufficient strategic thought to these allocations, which they had seen for the first time that night.

Conan Smith, Alicia Ping (R-District 3) and Dan Smith (R-District 2) had dissented on the vote giving initial approval to the budget adjustments. Board approval is required for budget changes greater than $100,000 or a variance of more than 10%, whichever is less.

The county’s finance staff cited several factors related to the adjustments, including the fact that property tax revenues are $2.3 million higher than anticipated when the budget was approved in December 2012. The county is also receiving $205,344 more in state funding than was originally budgeted, from state liquor tax revenues.

On the expense side, $551,998 will be used to help pay for the trial court’s new records management software system. Those funds come from a refund to the court by the state of Michigan. There will also be an increase of $102,672 in expenses due to a higher substance abuse allocation mandated by Public Act 2 of 1986, and related to the higher liquor tax revenues that the county received. Those funds will go to the county’s designated substance abuse coordinating agency.

The 2013 general fund budget also is not expected to need a previously planned use of $2.8 million from the fund balance.

There was no discussion on this item at the Sept. 4 meeting.

Outcome: Commissioners gave final approval to 2013 general fund budget adjustments, over dissent from Conan Smith (D-District 9).

Naming of Head Start Building

The Sept. 4 agenda included an item to support naming the county’s Head Start building at 1661 LeForge in Ypsilanti in honor of the late Charles Beatty Sr. [.pdf of resolution honoring Charles Beatty Sr.]

Beatty was recognized for his work in education – he was the first African American school principal in Michigan. He served as principal of Ypsilanti’s Harriet Street School – which was renamed Perry School – until 1967, and was instrumental in setting up the Perry Preschool Program and the HighScope Foundation’s Perry Preschool Study. The study was influential in validating the importance of early childhood programs like Head Start.

From left: Former Washtenaw Head Start director Patricia Horne McGee and Maude Forbes, a retired principal of Fletcher and Adams elementary schools in Ypsilanti.

Board chair Yousef Rabhi, who read the resolution aloud, called it a “great day for Washtenaw County.”

By way of background, at its Aug. 7, 2013 meeting, the board approved a 10-year lease of the county-owned Head Start building to the Washtenaw Intermediate School District. [.pdf of lease agreement] The WISD is taking over management of the Head Start program from the county, which has administered it for over four decades. After considerable debate, the board made the decision in late 2011 to relinquish the Head Start program.

The county took out bonds to pay for the construction of the $2.29 million Head Start facility in 2002. Ten years remain on the bond repayment for a total of $1.66 million.

WISD will begin making payments in 2014. Annual payments vary, beginning with $166,862 by Oct. 1, 2014. [.pdf of rent payment schedule] After the final payment, the county would deed the Head Start building and surrounding 11-acre property to the WISD. During the term of the lease, WISD will pay for utilities and basic maintenance, but the county will be liable for structural issues with the building, including roof repairs, broken windows, and other repairs – unless the repairs are caused by WISD action.

WISD superintendent Scott Menzel attended the Sept. 4 meeting, but did not address the board.

Naming of Head Start Building: Public Commentary

Several family members and friends were on hand, and the resolution was presented to Charles Beatty Jr., who told commissioners that this father – also known as “Chief” – would be very proud that the Head Start building was being named after him, because the program had been very near and dear to his heart.

Michael Kinloch, an officer of Kappa Alpha Psi, spoke on behalf of that organization, noting that Charles Beatty Sr. had been a member of the fraternity and had helped on many community service projects. He thanked commissioners for honoring Beatty.

Maude Forbes said she was probably the oldest person in the room to have known Charles Beatty. She’d first met him as a third-grade student at Harriet Street School, where he was principal. In 1953 she graduated from Ypsilanti High School, thanks to his help. In 1957 she was looking for her first teaching job, and he asked her: “Where else would you teach, except with me?” She thanked the commissioners, HighScope, and Pat Horne-McGee, who had worked to make sure that Beatty was recognized. Forbes joked that if Beatty could get someone like commissioner Ronnie Peterson through school, “and have him end up being a recognized citizen and not end up in court, then you know [Beatty had] a lot of talent.”

Larry Schweinhart, president of the HighScope Educational Research Foundation in Ypsilanti, told commissioners that none of the organization’s achievements would have been possible without the generous partnership of Charles Beatty Sr. It’s fitting to name the Head Start building after him, because he’s one of the pioneers who made Head Start possible, Schweinhart said.

Naming of Head Start Building: Commissioner Response

Many commissioners praised Beatty and his lifetime achievements, and thanked his family and friends for attending. Ronnie Peterson (D-District 6) spoke at length about his personal experiences with Charles Beatty Sr., who had been principal at Perry Elementary when Peterson attended there. Peterson described Beatty as a great man who didn’t get the recognition he deserved when he was alive. He thanked Beatty’s family and Pat Horne-McGee for working to make this happen.

Alicia Ping (R-District 3) noted that she attended Perry Elementary for kindergarten, not long after Beatty retired. She’d like to think that he was instrumental in creating the atmosphere in that building, even after he had gone.

Dawn Farm 40th Anniversary

The county board passed a resolution honoring the nonprofit Dawn Farm, which is celebrating its 40th anniversary this year. [.pdf of Dawn Farm resolution] The Ann Arbor city council had passed a similar resolution at its Sept. 3, 2013 meeting.

Dawn Farm president Jim Balmer and Janis Bobrin, who serves on the nonprofit’s board.

Dawn Farm offers both residential and out-patient services supporting recovery for alcoholics and drug addicts. The organization was founded in 1973 by Gary Archie and Jack Scholtus in a rented old farmhouse on Stony Creek Road in Ypsilanti. It has grown to include facilities in downtown Ann Arbor.

Dawn Farm’s president, Jim Balmer was on hand to accept the resolution, along with board members Janis Bobrin and Maggie Ladd. Bobrin is the former county water resources commissioner. Ladd is executive director of the South University Area Association. Also attending the Sept. 4 meeting was Charles Coleman, the nonprofit’s Chapin Street project coordinator.

Balmer told commissioners that he didn’t think this kind of program could have survived anyplace other than Washtenaw County. The community’s generosity accounts for the survival of Dawn Farm, he said.

Balmer invited commissioners to the Sept. 8 40th annual jamboree and fundraiser, noting that both founders will be attending. “There will be cake!”

Several commissioners praised Balmer and Dawn Farm for their work.

Honoring Bill McFarlane

Commissioners passed a resolution in honor of Bill McFarlane, the long-time Superior Township supervisor who recently announced his resignation due to health issues. [.pdf of resolution honoring McFarlane]

In introducing the resolution, board chair Yousef Rabhi described McFarlane as a friend to all the commissioners. McFarlane was unable to attend the Sept. 4 meeting, but Rabhi said it would be presented to him at his going-away celebration later this month.

Several commissioners praised McFarlane for his service over the decades, both in Superior Township and in countywide efforts like the Washtenaw Area Transportation Study (WATS) and the county’s police services committee.

Township Sewer Contract Amendment

The amendment of a contract between Washtenaw County, Lyndon Township and Sylvan Township was on the agenda for final approval. [.pdf of original contract]

In February 2013, county commissioners voted to refinance debt for a sewer system in Lyndon and Sylvan townships, on the county’s west side. The resolution authorized the sale of refunding bonds that would be used to pay the remaining principal on existing bonds that were sold in 2004. That year, the county sold $5.115 million in bonds to help the townships pay for the sewer. Of that amount, $2.225 million remained to be repaid, prior to the refunding. The project built sewers at Cavanaugh, Sugar Loaf, Cassidy, Crooked, and Cedar Lakes. It’s funded through special assessments on property around those lakes and payments by the Sugar Loaf Lake State Park and Cassidy Lake State Corrections Facility.

In March 2013, the county received bids for the refunding, with the lowest bid from Hastings City Bank at an interest rate of 1.749838%. As a result of this refunding, only $695,000 in debt remains on this bond issue. Lyndon Township was able to cash reserves and redeemed all of their outstanding debt for this project.

The contract amendments given initial approval by county commissioners on Aug. 7 remove Lyndon Township from any responsibility for debt retirement and reduce the amount of debt for Sylvan Township. All other provisions of the contract remain in place until the bonds are paid off in 2022. Both township boards have previously approved these changes, according to a staff memo.

This sewer system is separate from a controversial water and wastewater treatment plant project in Sylvan Township. For more background on that project, see Chronicle coverage: “County Board OKs Sylvan Twp. Contract.”

Outcome: Without discussion, commissioners gave final approval to the contract amendment.

Communications & Commentary

During the evening there were multiple opportunities for communications from the administration and commissioners, as well as public commentary. In addition to issues reported earlier in this article, here are some other highlights.

Communications & Commentary: Budget Update

Felicia Brabec (D-District 4), who’s leading the budget process for the board, gave an update on activities related to developing the 2014-2017 general fund budget. All departments have been given letters stating the targets for budget reductions. The administration will be bringing forward a draft budget proposal to the Oct. 2 board meeting.

Budget task force meetings on priority areas are continuing. Brabec plans to bring the outcomes of those meetings to the board at a Sept. 19 working session.

The board will receive a third-quarter 2013 budget update from county administrator Verna McDaniel in November.

Communications & Commentary: Repeal “Stand Your Ground” Law

Three people spoke during public commentary urging the board to pass a resolution asking for the repeal of Michigan’s “stand your ground” law. Lefiest Galimore told commissioners that he had addressed the Aug. 8, 2013 meeting of the Ann Arbor city council with the same message. He called it a “vigilante law.” The city councils of Ann Arbor and Ypsilanti have both approved this kind of resolution, he noted. Galimore hoped the county board would do the same, to put pressure on Michigan legislators.

Blaine Coleman, wearing a sign that stated “Black Life Matters,” expressed some surprise that it was so easy to speak to commissioners. [Unlike the Ann Arbor city council, which requires people to sign up for the public commentary at the start of its meetings, there is no sign-up required at the county board session.] He said the law has become a “hunting license” against black men and black boys. “I think it’s perceived that way and I think it’s used that way.” The deeper problem for the past 400 years is that black life is not taken seriously or valued, he said. Rather than spending trillions of dollars on overseas wars, the U.S. government should invest in rebuilding inner cities like Detroit.

Lucia Heinold also urged commissioners to pass a resolution asking Michigan legislators to repeal this state’s version of the “stand your ground” law. She’s talked with a lot of black parents about the fears they have for their children. She hoped commissioners would join the movement to repeal the law. Heinold said she’s worked with the prisoner re-entry program and has come to admire sheriff Jerry Clayton and his work with the neighborhoods.

Later in the meeting, board chair Yousef Rabhi (D-District 8) indicated that he would be bringing forward such a resolution at the board’s Sept. 18 meeting. He said he felt that more discussion needed to happen, which he hoped would happen on the 18th.

Conan Smith (D-District 9) spoke in support of a resolution, but hoped that it would go further than simply calling on legislators to repeal the law – because that won’t likely happen, given the current composition of the legislature.

Communications & Commentary: Human Services

Ellen Schulmeister, executive director of the Shelter Association of Washtenaw County, thanked commissioners for their support for human services, for coordinated funding, and specifically for the Delonis Center, a homeless shelter in downtown Ann Arbor that’s operated by the shelter association. She read a short statement about a man named Peter who used the services of the center and was able to become independent and live on his own again. Last winter, the shelter moved 31 people from its warming center or rotating shelter into housing. Another 51 people were moved into the residential program, she said, where nearly half of them were then moved into housing.

Communications & Commentary: Pall-Gelman 1,4 Dioxane Plume

Kent Martinez-Kratz (D-District 1) mentioned the ongoing cleanup of the 1,4 dioxane plume. The environmental contamination is related to past activities of the former Gelman Sciences manufacturing operations in Scio Township. Gelman was later bought by Pall Corp. Martinez-Kratz noted that he serves on the Coalition for Action on Remediation of Dioxane (CARD), which is calling for better cleanup standards.

Yousef Rabhi (D-District 8) reported that he’s been communicating with Ann Arbor city councilmember Sabra Briere and Chuck Warpehoski, who co-sponsored a city council resolution on Sept. 3 related to this issue. Rabhi would like to bring a similar resolution to the county board at its Sept. 18 meeting.

Communications & Commentary: Miss America

Alicia Ping (R-District 3), whose district includes the city of Saline, reported that the Miss America pageant will be held on Sept. 15 in Atlantic City. Miss Michigan, Haley Williams, is from Saline, Ping noted, and she urged commissioners and the public to support Williams. The competition will be broadcast on ABC affiliates starting at 9 p.m.

Communications & Commentary: Thomas Partridge

Thomas Partridge called on commissioners to seek out additional resources, including private foundation support and an override of the Headlee Amendment, to provide services to county residents.

Present: Felicia Brabec, Andy LaBarre, Kent Martinez-Kratz, Ronnie Peterson, Alicia Ping, Yousef Rabhi, Rolland Sizemore Jr., Conan Smith, Dan Smith.

Next regular board meeting: Wednesday, Sept. 18, 2013 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The ways & means committee meets first, followed immediately by the regular board meeting. [Check Chronicle event listings to confirm date.] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public commentary is held at the beginning of each meeting, and no advance sign-up is required.

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Washtenaw Head Start supporters filled the county boardroom on Oct. 20 at a working session of the board of commissioners. (Photo by the writer.)

Eighteen people spoke during public commentary, many of them staff or parents of children in Head Start – and many with their children in tow. They described how transformative the preschool program has been in their lives, and made passionate appeals for the county to keep administering it.

The county administration first made a formal proposal to the board at a July 21 working session, when county administrator Verna McDaniel and her staff laid out details of a transition. McDaniel noted that the county isn’t in the business of education, and that it made sense to consider moving the program to another grantee – especially in light of a projected $17.5 million general fund deficit that the county was facing in 2012-2013.

If approved by the board, the county would notify the federal Head Start program of its intent to relinquish its grantee status. County support would continue through 2012 – a line item of $528,000 for 2012 is in the proposed general fund budget, part of Head Start’s total $4.8 million budget. But the county would hand off the local Head Start to federal administrators at the start of 2013. Federal officials would then be responsible for selecting another agency to take over the program.

Pat Horne McGee – Washtenaw Head Start’s executive director – received a standing ovation from the audience at the start of her presentation to commissioners. She noted that October is national Head Start awareness month, and that usually she’s there to accept a board resolution of appreciation. Horne McGee then reviewed a 9-page document she had originally distributed to the board this summer, which highlighted the program’s achievements and economic impact, and which proposed alternatives that would allow the county to continue administering the program.

Several commissioners stated their support for Head Start, but noted that the county wasn’t best-suited to administer it. However, Ronnie Peterson protested bitterly over how the process was being handled, accusing others – but not naming anyone specifically – of holding backroom talks with Washtenaw Intermediate School District officials about taking over the program. [The county could have input on the choice, but would not be empowered to decide which agency is selected. The possibility of WISD being the next grantee was discussed at the July 21 working session – Peterson attended that meeting and expressed similar concerns.]

It’s likely that commissioners will continue to discuss the future of Head Start, as part of their ongoing budget deliberations. They have until the end of the year to approve the budget, but only three more regular meetings are scheduled before then.

The Oct. 20 working session also included a very brief presentation about the county’s contracts for outside professional services. This report focuses on the topic of Head Start.

Head Start: Brief Background

As part of an effort to balance the 2012-2013 budget and overcome a projected $17.5 million deficit, county administrator Verna McDaniel has proposed eliminating support for Washtenaw Head Start. At her initial presentation to commissioners at the July 21 working session, she said the board had directed her to review all the county programs and services to determine whether the county should continue to offer them, in light of current economic conditions. That was the context for her proposal regarding Head Start.

Head Start is a federal grant program that promotes school readiness for children from low-income families, between three to five years old. The program offers educational, nutritional, health, social and other services. The county has administered this program for 46 years – in federal parlance, the county is the “grantee” for the program in Washtenaw County. There are several sites throughout the county. The largest is in Ypsilanti, serving about 260 children and their families. About 300 other children are served at sites in Ann Arbor, Whitmore Lake and Willow Run.

The program employs about 35 full-time employees – mostly teachers, plus about six positions in administration. Most of the workers are represented by unions.

The program would likely continue under a different grantee. The process would work like this:

1. The county would notify the regional Head Start office that the county intended to relinquish its status as grantee.
2. A date would be set to end the county’s participation in the program.
3. The national Head Start office would issue a request for proposals (RFP) and select a new grantee. Entities that could qualify as a grantee include: (1) a public entity – like a school district, university, municipality or a new consortium; (2) a nonprofit or for-profit organization; or (3) a regional Head Start office.
4. If no new grantee is selected by the county’s end date, the national Head Start office would appoint the Community Development Institute (CDI) as the program’s interim manager. CDI is a federally funded entity specifically charged with providing this kind of interim service for Head Start programs. Current Head Start staff in Washtenaw County would have to re-apply for their positions.

Another factor is the $3 million Head Start building that the board of commissioners voted to build in 2002. The county owes $2.68 million on bond payments through 2022. It’s likely that the building would factor in to any agreement made with the next grantee. Currently, all of the “rent” paid to the county by Head Start goes directly to the bond payments. In addition, Head Start will make payments to the county through FY 2052-53 to repay the county for the full amount of the bond. The county would also need to determine what obligations it has for more than $748,000 it received in federal funds for the building.

For more details about the program and previous board discussion, see Chronicle coverage: “Options Weighed for Washtenaw Head Start.” In addition to the July 21 working session, several Head Start supporters also spoke during public commentary at the board’s Sept. 21 meeting, when the 2012-2013 budget was formally presented.

Head Start: Public Commentary

Most of the 18 people who spoke during public commentary were staff or parents with children in Head Start. Here’s a sampling of that commentary, which lasted about an hour and was frequently met with applause from others in the audience.

Marcia “Marti” Bombyk said she’s an Ann Arbor resident and taxpayer, and a professor of social work at Eastern Michigan University. She’s also coordinator of EMU’s graduate certificate in community building and a neighborhood organizer in Ypsilanti, focusing on neighborhoods south of Michigan Avenue where there’s a high concentration of families in poverty. Bombyk told commissioners she’d like to address the bigger picture, and she read a letter from a former student of Head Start who’s now an adult. In the letter, the student explained how without Head Start, she wouldn’t be where she is today. It’s an investment in the future, helping to break the cycle of poverty. Bombyk said the letter was written by Congresswoman Loretta Sanchez. [Sanchez is a Democrat representing California's District 47.] Bombyk urged the board to retain funding for Washtenaw Head Start.

John Franks said he’s a graduate of Ypsilanti High School and is getting a bachelor’s degree in business management. Head Start helped him be prepared for school, giving him that extra push and letting him know what to expect. If not for Head Start, he wouldn’t be talking to them today. Now, his three-year-old son is in Head Start too. His son has only been in the program for two months, but has already learned a lot, Franks said. He noted that Head Start had employed his mother, which helped out their whole family.

Franks’ fiancé, Jemma Wallace, described how their son – who she says is borderline ADHD – can now hold a pencil, and is eating fruits and vegetables. Wallace said she’d been struggling, and the Head Start teachers are giving her advice on how to be a better parent. Her son is now eager to go to school, she said. Wallace also gently chastised commissioners: “You all look kind of bored, but I want you to wake up!”

Jill Koeppe teaches at the Ypsilanti Head Start site, and said the teachers there are all dedicated. She worked hard to get her degree – the teachers have high credentials, she said. Koeppe drives 45 minutes to get to work and her student loan payments require a large part of her take-home pay, but she does it because she believes in the program. Everyone works extra hours so that they can help the Head Start families. It’s a wonderful program, she said.

Michelle Trummel of Ypsilanti described how she was taking Head Start families on a tour at Eastern Michigan University. On the tour, she asked EMU’s director of community relations to support their efforts to keep Head Start with the county, but he told her it was a done deal. This hurt her, Trummel said, but he was probably right – though she still hoped that he was wrong. The county is giving up on its most valuable asset – its children. Why are they selling out a program of excellence? There are over 40 staff at Head Start in Ypsilanti, including teachers, kitchen staff and others. All of them will be fired and have to reapply with whatever agency takes over Head Start, and they’ll lose county benefits. She might lose her house, Trummel said, and she knows of others who would face foreclosure. She said she’s known as the “Ypsitucky Queen,” and she’s a wealth of positive community relations – but now her fate lies with the board.

Melodie Tolbert walked up to the podium with a young boy, and said the boy was a former student of hers at Head Start, where she teaches. If the county doesn’t pay money at the start of these children’s lives, the county will pay much more at the end, if they get into trouble and are put in prison. Please don’t balance the budget on the backs of children, she said. Society is changing. Head Start provides a safe place for children to come, learn, and be fed nutritious meals. Tolbert held up a copy of the board’s budget principles, saying that commissioners are concerned about families and children – that’s what Head Start is all about, she said. They’ve worked hard to become a program of excellence, but they need the county’s continued support.

Shirley Beckley noted that she’s talked to the commissioners before. Her children, who attended Head Start, are now 48 and 49, and her grandchild now attends the program. She knows the county has to balance its budget, but even the governor of Michigan has decided to fund Head Start, so surely the county can, too.

Tiffany Gore said her 23-year-old son was enrolled in Head Start 18 years ago. The program fostered his love of school, helped him overcome learning disabilities and resulted in his becoming an honor student. He’s now studying at Michigan Tech, pursuing a degree in computer engineering. She also now has a three-year-old daughter who’s had some disabilities and is enrolled in Head Start – now her daughter is much calmer and pleasant to be around, and that’s given Gore peace of mind. She urged commissioners to retain the program.

Wadler Fleurina, who lives in Ypsilanti, has two kids at Head Start, and they always tell him what they’ve learned. Most countries that are poor don’t have decent education. Fleurina said he’s from Haiti, which has a very poor education system. Here, his children have opportunities because of Head Start. It will help them through high school and college, and let them reach new heights. He asked commissioners to find it in their hearts to keep Head Start going.

Jenita Holbrook noted that she lived in Romulus, but her second home is at 1661 Leforge Road in Ypsilanti – the Head Start site. She graduated from Head Start in the 1980s, growing up in a neighborhood that most commissioners probably only saw on TV. Their family would sometimes eat only beans and rice for weeks at a time, and their milk was powdered. She lived next to crack houses, and there were drive-by shootings. She lost two brothers to drive-by shootings, less than a year apart. But for her, Head Start has broken the cycle of poverty. If you don’t invest in children now, she said, they’ll end up being like the men who killed her brothers. Maybe Head Start could have prevented that.  “If you don’t keep it open, you’ll have a lot more on the streets,” she said.

Dwight Walls, senior pastor with the Greater Shiloh Church of God in Christ in Ypsilanti, described his past affiliation with the county and Head Start. He began working for Head Start in the late 1960s, first as kitchen staff, then as an assistant teacher, then working his way up to eventually serve as director for a short time. He was president of the employee union for 25 years, Walls said, and negotiated 20 contracts during that time. He said he was there to fight for the children because their lives are at stake. Head Start works, and will continue to work if they find money to keep it afloat. Walls noted that he’s worked on a lot of their campaigns to get commissioners elected. Let’s go back and relook at the budget, he said – together they can find the funding to make it work.

Caryette Fenner – president of AFSCME Local 2733, the largest union representing county employees – told commissioners that she was also a product of Head Start, but not in Washtenaw County. She didn’t remember the names of her teachers because she didn’t have a good experience. But her daughter attended Head Start here, and remembers her teachers because they had a positive impact on her life. Her daughter graduated from Michigan State and is working on a master’s degree – that’s all due to Head Start. Fenner said that when her daughter was in the program, one of the teachers encouraged Fenner to also go back to school, and she did. This is a program of excellence, she said. And whatever Pat Horne McGee tells her staff to do, they’ll do. Teachers have already made labor concessions, Fenner noted. The program brings value to Washtenaw County.

Flo Burke told commissioners to examine studies that have been done by the HighScope Educational Research Foundation in Ypsilanti and the National Institute for Early Education Research. Studies show that quality preschool programs can make a difference, she said. Head Start is a program they just can’t let go. The county’s funding is just a small part of the Head Start budget, she noted – most of the budget is provided by federal funding. But if the county drops its sponsorship, it’s not clear what would happen. There’s no guarantee that anyone would take it over, she said.

The final speaker, Sara Burg, tearfully spoke about being a single mother, and how she didn’t know where she’d be without this program. Two of her children have graduated from Head Start, and another one just started. Without Head Start, her children wouldn’t be doing as well as they are, and she wouldn’t be able to keep a job because she couldn’t afford daycare. She urged commissioners to continue funding the program.

In addition to public commentary at the working session, commissioners had received a raft of letters from Head Start children and parents, lobbying the board to retain the county’s administration of the program. [.pdf of letters]

Head Start: Presentation

After public commentary, board chair Conan Smith thanked everyone for coming, and said it was never the board’s intent to see Head Start disappear. They’re working on a strategy to maintain the organization’s full breadth of services, he said. Yet the county has to be cautious and not be arrogant in thinking it’s the best entity to provide this service, Smith added. If the county does vote to reduce its budget allocation to Head Start, Smith said it’s a vote he’ll make only if he’s confident that another provider can step in.

With that, Yousef Rabhi – who chairs the working sessions – introduced the executive director of Washtenaw Head Start, Pat Horne McGee, who received a standing ovation from the crowd of supporters in the audience.

Horne McGee noted that October is Head Start awareness month, and that usually she’s there to accept a resolution of appreciation from the board. She referred to a handout that she’d originally distributed to the board this summer. [.pdf of Head Start impact document] It was important to provide a framework for what Head Start has accomplished, she said, in order to make a decision about its future. She also pointed to the board’s budget decision principles, citing three that she felt related directly to Head Start:

• Support programs that address the basic needs of children and families.
• Support programs that increase economic opportunity for residents.
• Integrate efforts across agencies to meet strategic priorities.

Horne McGee asked people to stand up if they were parents of Head Start children and also worked for the program – several people in the audience stood. Head Start isn’t just a child development program, she said. It’s also a community development program that helps people acquire skills and emerge from poverty. Many of Head Start’s staff have matriculated or completed professional degrees with support of the program and the county, she said.

Horne McGee touched on a range of other points from the 9-page impact document. Among other things, the document (1) outlined ways that the program has made cuts over the years to address the worsening financial situation, and (2) proposed several alternatives that could lower the county’s general fund contribution to Head Start. The options specified under the second point included items such as requesting additional in-kind contributions from local partners, and tying staff raises to increases in federal grant support. She also referenced letters of support from the community that commissioners had received this summer regarding Head Start.

Alluding to the public commentary, Horne McGee said the best stories have already been told, adding that she’d be happy to answer questions from the board.

Head Start: Commissioner Discussion

Alicia Ping began the discussion by saying she’d be brief, because “I know commissioner Peterson has a lot to say.” She confirmed with Horne McGee that Head Start is free to those who enrolled. But is it open to people who could pay? she asked. Horne McGee explained that 10% of the families enrolled can be over the income level set by the federal Head Start program, but those are often families of children with disabilities, she said. The staff also uses that 10% for families whose income might be just a few dollars over the limit. Horne McGee said Washtenaw Head Start gets many request for families that want to pay to enroll, but they aren’t accepted, she said.

Ronnie Peterson then spoke at length, often receiving applause from the Head Start supporters. He described his own background, saying he started working when he was 10 and didn’t get any handouts. Head Start is an award-winning program and provides opportunities, he said, not handouts. He talked about his advocacy in fighting poverty, and recalled that commissioner Conan Smith’s grandfather, Al Wheeler, had led the county’s office of economic opportunity during its most progressive years.

Peterson said he’d advocate for Head Start all the way to the vote. When he was growing up, his parents didn’t eat until all their children had been fed, he recalled.  “We should not enjoy a budget adoption until the children are fed.”

Peterson characterized the county as planning to default on the Head Start program, in order for the Washtenaw Intermediate School District (WISD) to take over. He said he didn’t realize those discussions had been going on, and he wondered what process had been started and at what level these discussions had been taking place.

Yousef Rabhi said he didn’t know what conversations had occurred. Rabhi noted that if the county decides to give up its status as federal grantee of the program, then it would be out of their hands. Even if the WISD is interested in taking over the program, there’s no guarantee that WISD would be selected, he said.

Peterson said he was upset at being left out of the loop, and he asked whether Rabhi was confirming that discussions had taken place. Rabhi replied that he wasn’t sure – he hadn’t attended any meetings with WISD, but it seemed that there might have been discussions, since the WISD had been mentioned so many times.

Peterson said it seemed that everyone in charge was out of the room. [County administrator Verna McDaniel didn't attend the working session, and at the time of Peterson's comment, board chair Conan Smith and Kelly Belknap, deputy county administrator, were not in the boardroom.] Peterson said he was concerned that this was being handled in a backroom process, adding that he had confronted the WISD superintendent about it. He said he had never played politics with children, and he found this offensive.

Referring to the $15,000 annual stipends that McDaniel had proposed several weeks ago for her top staff, Peterson asked “Where did that come from?” The county’s financial challenge doesn’t seem that great if money can be found for that, he said. [The stipends – which Peterson characterized as bonuses – had been part of a proposed administrative restructuring that McDaniel withdrew from the board's Sept. 21, 2011 agenda. She had planned to eliminate the position of deputy administrator, which has been vacant for several months, and distribute responsibilities among four other managers, who would receive a $15,000 stipend in addition to their regular salaries.]

Parents in the room that night probably don’t have time to go to PTA meetings, Peterson said, yet they came to the working session. They weren’t asking for handouts, he said, but just wanted to have an education for their children. The room should have been packed with advocates for children and early-childhood education, he said. Discussions about the future of Head Start should have been public, he said.

Wes Prater said that the budget information about Head Start has been public, and noted that in addition to $528,000 in general fund dollars that support the program this year, the 2012 county budget calls for another $528,000 to fund Head Start.  [No funding is budgeted for Head Start in 2013 – the county plans to relinquish its administration of the program that year.]

Peterson said it was a weird meeting that night, and there will be a Part 2 to the discussion. He wasn’t sure why people “on the payroll” weren’t in the room. He asked if Horne McGee had been asked to propose an alternative budget. No, she said, adding that the program has consistently made budget cuts over the years. Peterson said he anticipated a follow-up meeting on this issue.

As he had at a board meeting the previous night, Prater pointed out that 16 departments showed increases in their expenditures compared to 2011, totaling more than $6 million. Conan Smith, who had returned to his seat by this time, explained – as he had the previous night – that the increases relate primarily to higher amounts for each department’s cost allocation plan (CAP).  [The CAP sets a charge that’s levied on each county unit and designed to cover general costs like administration, technology, building use, and insurance, among other things.]

Smith said he wished that Peterson had remained in the room to hear this explanation – Peterson had left the room soon after Smith started speaking. Departments are not being overfunded, Smith said, and county revenues are declining. “This is a tight budget with no fat in it,” Smith said.

The budget projects revenues of $97.714 million in 2012 and $96.937 million in 2013, down from $101.25 million this year.

Prater contested Smith’s interpretation, insisting that 16 county departments were increasing their expenses by a total of $6.8 million, and that CAP accounted for only a portion of that. He accused Smith of “playing with numbers.”

Rolland Sizemore Jr. spoke up, noting that he sat on the Head Start board and it’s an excellent program. He said there might be ways to find additional funds, and pointed to the fact that many county buildings aren’t fully used. County staff might be able to consolidate – at the Zeeb Road service center, for example – and sell some buildings. It comes down to money, he said – that’s the issue in making these budget decisions.

At this point Shirley Beckley, who had spoken during public commentary, stood up and began addressing the board. Rahbi interrupted, saying she’d have the opportunity to speak at the meeting’s final public commentary. “I’m 70 years old and I’ll say something right now,” she replied. She recalled that at the board’s working session in the summer, when the Head Start program had been initially discussed, some commissioners had said they weren’t in the business of educating children. If they decided to get rid of the program, they should at least be honest, she said. “We’re not stupid.” She told Conan Smith to stop talking to them as if they were.

Present: Barbara Levin Bergman, Felicia Brabec, Leah Gunn, Ronnie Peterson, Alicia Ping, Wes Prater, Yousef Rabhi, Rolland Sizemore Jr., Dan Smith, Conan Smith.

Absent: Rob Turner

Next regular board meeting: Wednesday, Nov. 2, 2011 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The Ways & Means Committee meets first, followed immediately by the regular board meeting. [confirm date] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public comment sessions are held at the beginning and end of each meeting.

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County commissioner Ronnie Peterson, right, talks with supporters of the Washtenaw Head Start program. (Photos by the writer.)

Although the budget calls for a net loss of 32.22 full-time-equivalent jobs, most of those positions are either already vacant or will be handled through retirements, McDaniel said. One significant retirement was recognized during the meeting: Donna Sabourin, executive director of the county’s community support & treatment services (CSTS) department, who’s worked for the county for 20 years. Commissioners awarded her a resolution of appreciation, and also gave final approval to the CSTS budget for the coming year.

But the meeting’s main focus was the proposed general fund budget, which was discussed at length and will be the topic of most board meetings and working sessions at least through November. The county budget is based on a calendar year, from Jan. 1 through Dec. 31, and is developed in two-year cycles.

Among the recommended cuts is a reduction of $1.2 million to local nonprofits and other agencies. For example, funding for the Humane Society of Huron Valley’s contract is proposed to drop from $500,000 in 2011 to $250,000 in 2012 and 2013. The Delonis Center homeless shelter’s funding could decline from $160,000 to $25,000.

The budget also calls for the county to relinquish its status as the federal “grantee” for the Head Start program in Washtenaw County, which would trigger a process to find a replacement entity. The county has administered the program for 46 years. About a dozen Head Start supporters showed up to Wednesday’s meeting, and urged commissioners to continue support for the program.

Though commissioners had several questions and comments about the 2012-2013 budget, several of them expressed even more concern for what’s on the horizon: Projected deficits of $11.6 million in 2014 and $14.7 million in 2015.

Board chair Conan Smith characterized the 2012-2013 budget as a recommendation that’s “ripe for public discussion at this point.” Everything is still on the table, he said. The board is expected to take up the topic again at its Oct. 5 meeting, and a public hearing on the budget is set for Oct. 19. The target date for approving the budget is Nov. 16.

There was no vote taken on the 2012-2013 budget directly, but the board took action on several other budget-related items. Among them, commissioners gave final approval to levy two taxes: for (1) services for indigent veterans; and (2) economic development and agriculture.

The board also passed a resolution in support of developing a regional transportation authority, after a failed attempt to postpone the vote. The resolution is a prelude to a Sept. 30 summit with Detroit and the counties of Wayne, Oakland, Macomb and St. Clair, which will focus on region transit issues.

Two issues of note did not come before the board as expected. A proposed reorganization of county administration was pulled from the agenda at the start of the meeting. It would have replaced the deputy administrator position by giving additional responsibilities to four managers, paying them annual stipends of $15,000 each. The stipends were a sticking point – during public commentary, AFSCME Local 2733 president Caryette Fenner objected to the timing of that pay, in light of recent labor concessions made by employees.

And not on the agenda was an anticipated proposal by the Washtenaw County Road Commission, which was discussed by the board at its Sept. 8 working session. The road commission is presenting a request for a countywide millage to help pay for road repair. It’s a tax that the county board could impose without seeking voter approval. The plan was subsequently submitted to the county clerk on Friday, and could be addressed at the board’s Oct. 5 meeting.

Admin Reorganization Postponed

One of the first actions of the meeting was to pull off the agenda a resolution regarding the reorganization of administrative positions proposed by Washtenaw County administrator Verna McDaniel. Details of the restructuring had been part of the board’s packet of meeting materials, including a proposal to pay annual stipends of $15,000 to each of four managers who would be taking on additional responsibilities.

The proposed changes, which could be introduced at a later date, were expected to save $120,962 and were part of a broader 2012-2013 budget proposal. The reorganization would have put the deputy county administrator’s position – which has been unfilled since the departure of Bill Reynolds earlier this year – on hold/vacant status. A new “cross lateral” team was proposed with four members: Kelly Belknap, director of finance; Greg Dill, infrastructure management director (a new position); Curtis Hedger, corporation counsel; and Diane Heidt, director of human resources and labor relations.

Greg Dill, director of administrative operations for the sheriff’s office, is likely to be appointed as the county’s infrastructure management director. He was working on his iPad before the meeting.

Dill is currently director of administrative operations for the sheriff’s office. A resolution for his new appointment – to the newly created job of infrastructure management director, with a salary of $116,75 – was also pulled from the agenda of Wednesday’s meeting. His new responsibilities would include those previously assigned to the county’s information & technology manager, a position that’s been eliminated following the departure of James McFarlane earlier this year.

According to a staff memo, the cross lateral team was intended to split the duties formerly handled by the deputy administrator. Department heads would be assigned to a team leader and report to that person for non-critical issues.

The proposal called for each team member to receive a $15,000 stipend in addition to their salaries, which would be capped at $125,000 unless a higher salary is authorized by the county board. If the combination of salary and stipend exceeded $125,000, the excess would be paid as a contribution into the employee’s deferred compensation retirement plan.

Other changes in the proposal included eliminating an administrative coordinator position, and creating a new management analyst job.

Admin Reorganization: Public Commentary

There was no discussion on the topic among commissioners, but during public commentary later in the meeting, AFSCME Local 2733 president Caryette Fenner objected to the $15,000 stipend that had been proposed. She noted that her membership and most employees had made concessions to address the projected two-year budget deficit. It wasn’t that these team leaders didn’t deserve the stipend, she said, but it wasn’t the right time for it.

2012-2013 Washtenaw County Budget

After discussing budget priorities and challenges for over a year, commissioners formally received a recommended budget for 2012-2013 at Wednesday’s meeting, which calls for a total net loss of 32.22 full-time-equivalent jobs and cuts to a range of programs and services. [.pdf of draft 2012-2013 budget]

County administrator Verna McDaniel and the county’s finance staff gave a presentation during the meeting, showing how the administration proposes to balance the budget. Previously, an estimated $17.5 million deficit had been projected for that two-year period.

The board is expected to take up the topic again at its Oct. 5 meeting, and a public hearing on the budget is set for the board’s Oct. 19 meeting.

Commissioners asked questions both at Wednesday’s meeting and during a working session the following day, on Sept. 22.

2012-2013 Washtenaw County Budget: Presentation

The proposed budget is based on a forecast in general fund revenues of $97,714,410 in 2012 and $96,937,530 in 2013 – down from $101,250,268 this year. The budget includes cutting 28.36 full-time-equivalent jobs, creating 5.5 FTEs, putting 11 FTE positions on hold/vacant status, and removing 1.64 FTEs out of hold/vacant. In addition to the 25.36 jobs that are already vacant, another 14 of the job cuts are expected to be handled mostly through retirements. Currently the county employs 1,369 people.

WEMU’s Andy Cluley interviews Washtenaw County administrator Verna McDaniel after the Sept. 21 board of commissioners meeting.

The biggest cuts are proposed to come from the sheriff’s office in positions represented by the Police Officers Association of Michigan (POAM), with a net loss of 12 jobs, and in positions represented by AFSCME 2733 Unit B, with a net loss of 10 positions.

Earlier this year, McDaniel told commissioners that she hoped to gain $8 million in labor concessions from employees. New labor contracts have now been finalized with 90% of the county’s employees, for a total of $4 million in savings both budget years from changes to compensation and benefits. The board had approved a new contract with its largest labor union – AFSCME Local 2733 – at a special meeting on Sept. 13.

The budget also reflects $4.1 million more in additional revenues from property taxes. Those tax revenues are now projected to be higher than previously estimated. The budget also identifies $8.2 million from organizational and structural changes.

The budget includes a total of $1,239,859 in cuts to funding for local nonprofits and other agencies. Examples of the most dramatic changes include funding for Humane Society of Huron Valley’s contract (from $500,000 in fiscal 2011 to $250,000 in fiscal 2012 and 2013), the Delonis Center homeless shelter (from $160,000 to $25,000), and the Safe House domestic violence shelter (from $96,000 to $48,000). [.pdf of six-page response to the proposed cuts by Tanya Hilgendorf, executive director of the Humane Society of Huron Valley. ]

Items proposed to be cut completely include $125,000 to the Southeast Michigan Council of Governments (SEMCOG), $200,000 for the county’s reserve for housing, and $110,000 for a housing contingency fund. Money for the county’s coordinated funding of human services will drop by $128,538 (from $1,015,000 to $886,462). [.pdf chart of nonprofit/agency allocations]

Looking beyond this two-year budget cycle, the report also projects deficits of $11.6 million in 2014 and $14.7 million in 2015.

During the presentation to commissioners at their Sept. 21 meeting, McDaniel, finance director Kelly Belknap and finance analyst Tina Gavalier summarized the proposed reductions and revenue sources for the coming two years. [.pdf of budget presentation highlights]

In addition to a working session on Sept. 22, other budget-related dates include:

• Oct. 6: Working session on a county building/space plan.
• Oct. 19: Public hearing on the 2012-2013 budget.
• Nov. 2: Budget update for the third quarter of 2011.
• Nov. 16: Target date for board vote on 2012-2013 budget.

2012-2013 Washtenaw County Budget:  Commissioner Discussion

Yousef Rabhi began by thanking county staff for their work in developing the budget, and thanking employees for the contract concessions they made. “People have given, and given a lot,” he said.

Leah Gunn described this budget as “the hardest budget I’ve ever worked on” during her 15-year tenure on the board, but noted that even more challenges are in the wings. If the state legislature eliminates the personal property tax, that will be another major hit to the revenues of local governments, she said. Gunn urged people to contact their legislators in Lansing and beg them not to repeal the tax, “or we lose government services.”

Wes Prater first asked for more details on the 80% in budget reductions that McDaniel had categorized as structural – she said she’d get that information to the board.

Prater then turned to the projections for 2014-2015, when deficits of $11.6 million and $14.7 million, respectively, are expected. Why are expenditures projected to increase? Revenue estimates are much lower, he noted – falling 8.21% in 2014 to $88.975 million, and staying flat the following year. Why aren’t expenditures in line with that? The staff needs to look at revenue realistically, he said, then prepare a budget that’s based on those realistic revenue estimates.

McDaniel said that as they get closer to those years, they’ll have a better handle on projections and will make revisions. She acknowledged that it was disheartening to see additional projected deficits, but said the staff would be remiss if they didn’t point it out. The county will work to bring expenditures in line with revenues for those years, she said – they are required to present a balanced budget.

Prater complained that originally, the administration had projected a $20 million deficit for 2012-2013. Then in the spring, that deficit had been revised to $17.5 million. But revenues are only down $1.7 million from 2011, he said.

Kelly Belknap, the county’s finance director, explained that the projected deficit was based on anticipated expenses and revenues. It wasn’t comparing 2012 to 2011, she said. McDaniel added that the county would “be in a pickle” if they made rosy projections. She assured Prater that the staff wasn’t playing games to make things look worse. It’s difficult to make projections, she said, and she acknowledged that revenues for the current year showed less of a decline than anticipated. But she indicated that it’s better to be prepared for a steeper decline than to suddenly be faced with a crisis, if projections turn out to be overly optimistic.

Prater replied that in the past couple of years, projections have missed the mark so much, that some people think county officials don’t know what they’re doing.

From left: Commissioners Rob Turner, Yousef Rabhi and Dan Smith.

Dan Smith observed that it seemed the county was jumping from one emergency now to another in 2014-2015. He asked the staff to explain why revenues are expected to decline, and where some of the expenditure increases are coming from. Expenses are projected to rise from $96.93 million in 2013 to $103.72 million in 2015.

Tina Gavalier, the county’s finance analyst, confirmed for Smith that most of the revenue declines reflect an anticipated drop in property tax revenues and a loss of state revenue sharing. Current union contracts run through 2013, she noted, so the projected expenses assume that concessions made for the coming two years will end. That means step increases, longevity pay and other aspects of the previous contract will resume, unless labor unions agree to additional concessions. Gavalier also noted that health care costs are projected to increase 12%.

Gavalier also pointed out that earlier this year, the staff had projected deficits of $27.7 million in 2014 and $34.3 million in 2015. Since then, based in part on updated estimates of property tax revenues, those deficits are now projected to be lower.

Conan Smith took issue with Prater’s characterization that previous revenue projections had been way off. In fact, Smith said, the projections were fairly accurate – off by less than 1% in 2010 and by about 1.5% this year. On the revenue side, the board needs to project worst-case scenarios, he said. For expenses, they assume the status quo from the previous budget cycle as a starting point. Of course expenditures will be adjusted, he said – the county is legally obligated to present a balanced budget.

Alicia Ping asked a series of questions also related to how the projections are made, wondering why the previously projected $17.5 million deficit was no longer reflected in the 2012-2013 budget. Belknap clarified for Ping that the deficits are based on projected expenses if the county takes no action. Conan Smith added that the budget that’s now presented to the board reflects adjustments they’ve made – including labor concessions, for example – that helped them overcome that deficit and align expenses with revenues. You don’t see the $17.5 million deficit because the county has taken action to address it, he said.

Barbara Bergman thanked the unions and other employees for their sacrifices, and said that at a later date the board needs to talk about making a sacrifice, too. She didn’t want to make commissioners’ salaries so low that people couldn’t afford to serve, she said, but they needed to talk about adjustments.

Rob Turner noted that the daunting task before them is the 2014-2015 budget, with a two-year $26 million deficit. Given that they’ve just made serious cuts in the current budget cycle, cutting another $26 million “is just a scary thought,” he said. Turner agreed with Bergman that they needed to look at the line items for commissioners too. They can’t just sit back and hope that property taxes will increase – they need to look ahead.

Ronnie Peterson observed that public employees are “taking it in the neck,” and that people often point to those employees as being responsible for the deficit. But employees are responsible for coming to work and doing their jobs, he said – it’s the responsibility of the board to manage the budget and protect the future of local government, so that employees can feel secure. He clarified with McDaniel that additional board meetings and working sessions will focus on specific aspects of the 2012-2013 budget.

Peterson said it felt like the county was just putting a finger in the dike. Some commissioners had courage, while others didn’t, he said. Commissioners should lead the way, but everyone needed to sacrifice – and he didn’t see that that was happening.

Rolland Sizemore Jr. said he wanted to look at the issue of part-time employees. He also noted that not all of the departments led by other elected officials were getting budget cuts. [Those elected officials are the prosecuting attorney Brian Mackie; water resources commissioner Janis Bobrin; county treasurer Catherine McClary; clerk/register of deeds Larry Kestenbaum; and sheriff Jerry Clayton.]

McDaniel replied that in developing the budget, finance and administrative staff looked at a variety of factors, including cuts taken by departments in previous years, and budgets in comparable departments. The budget didn’t make broad, across-the-board cuts, she said, but rather reflected strategic decisions.

Proposed general fund budgets for departments led by other elected officials are:

Office       2011      2012     2013

Pros Atty   $5.44M    $5.88M   $5.94M

Water Res   $2.59M    $2.46M   $2.54M

Treas       $1.31M    $1.51M   $1.55M

Clerk       $2.36M    $2.64M   $2.53M

Sheriff    $40.89M   $43.41M  $44.92M

-

The sheriff also oversees the budget for emergency services, which is budgeted for $2.77 million in 2011, $2.53 million in 2012, and $2.63 million in 2013.

Returning to the overall budget, Conan Smith elicited from McDaniel that budget increases for certain departments reflect higher cost allocation plan (CAP) payments that these departments are being asked to make. The CAP is an amount charged to each department for items like the county attorney and administration.

Yousef Rabhi clarified with McDaniel that nearly all of the positions being eliminated were already vacant or were planned retirements. McDaniel said there may be one “bump,” but that doesn’t mean the person will hit the streets. The administration is working hard to find another assignment for that person, she said.

Rob Turner noted that the county’s “rainy day” fund – its general fund reserves – would be decreasing in the coming years. It’s important to remember to maintain it in case the state does something drastic that would affect the budget, he said. At the same time, it’s important to note that the county isn’t keeping a fat balance, he said.

Mention of the state prompted Ping to comment on the personal property tax (PPT) issue. She noted that Gunn had mentioned it earlier in the meeting, adding that everyone is shocked that the proposal seems to have legs. Although it seems like the momentum is now behind reducing the tax, not eliminating it, there’s no revenue replacement plan being put forward, Ping said, and that’s wrong. “Again, Lansing needs to be minding their own business,” she said. Ping asked staff to provide information about how eliminating the PPT would affect the county’s revenues.

Prater returned to the issue of revenue projections, and noted that the county’s equalization staff “really missed the mark” in projecting the decline of property tax revenue for 2011. The 2011 budget had been built on the assumption of an 8.5% drop in property tax revenues, but in fact revenues fell only 2.85%. [See Chronicle coverage: "Washtenaw County's Taxable Value Falls"]

Gunn commented that for decades, property tax revenues did nothing but increase. Then revenues plunged, and the county has had to deal with it, she said. Predicting it is almost impossible, she added, and the equalization report for the year doesn’t get completed until April – four months into the fiscal year. Given those constraints, it’s always better to be conservative in projecting revenues, she concluded.

McDaniel noted that the board had agreed to build the budget based on worst-case scenarios. Otherwise, they might be faced with sudden, unanticipated cuts, she said.

Outcome: The board voted unanimously to move the budget agenda item to its Oct. 5 meeting. No initial vote was taken on the 2012-2013 budget itself .

After the vote, Peterson asked about a building space plan that McDaniel is preparing, which will be presented at the Oct. 6 working session and is likely to include recommendations about what to do with certain county facilities that might be sold. Was that plan factored into the budget? McDaniel responded that it’s not part of the budget, because commissioners would need to provide direction to staff about how to proceed. It’s more related to future planning than to the 2012-2013 budget, she said.

2012-2013 Washtenaw County Budget: Public Commentary – General

Caryette Fenner, president of AFSCME Local 2733, expressed concern that information about retirements had been made public before the union leadership was informed. She hadn’t heard about it previously.

Following up to her commentary, Yousef Rabhi said he’d like to see better communication between the unions and county administration. He hoped that the proposed cross lateral managers would help facilitate communication with union leaders and employees.

2012-2013 Washtenaw County Budget: Head Start

During public commentary after the budget discussion, Shirley Beckley told commissioners she is the parent and grandparent of children who had benefited from Washtenaw Head Start. She wondered what the status of the program was, in layman’s terms – had it been cut from the budget, or had the board reconsidered that decision?

Public commentary is typically a formal process, with speakers alloted a set amount of time – three minutes at Ways & Means Committee meetings, or five minutes at regular board meetings. After all public commenters have spoken, commissioners have the opportunity to respond, if they choose.

However, during this public commentary on Head Start there was considerable – and uncharacteristic – back-and-forth.

By way of additional background, the board held a working session on July 21, 2011 devoted to the future of Washtenaw Head Start. From that report:

The presentation stressed that Head Start – which serves over 500 preschool children of low-income families in the county – would not be eliminated. Rather, the county would relinquish its status as the program’s federal “grantee,” triggering a process to find a replacement entity. Federal Head Start officials would be responsible for selecting another agency to take over from the county.

The county currently spends about $900,000 each year in support of Head Start, which has a local budget of $4.8 million – the bulk of its funding comes from federal sources. In addition, the county owes $2.68 million in bond payments related to an Ypsilanti facility it built for Head Start in 2002-03.

Seven of the board’s 11 commissioners attended the working session, and several expressed support for exploring the transition. They praised the program, which has been recognized nationally for its performance, but noted that education isn’t part of the county’s core mission. Some suggested that an organization like the Washtenaw Intermediate School District would be a better fit to administer the program.

At Wednesday’s meeting, county administrator Verna McDaniel told Beckley that there’s still time to discuss budget decisions, and that meetings of the board are open to the public, with opportunities for public commentary. Beckley replied that she didn’t think the county understood the impact of its decision to cut funding for the program. She hoped that they could come to some kind of understanding with Head Start, rather than cutting it. She wondered if Head Start were cut from the county, would it get a new name?

McDaniel said she couldn’t answer that question. The federal government would take responsibility for finding a new agency to sponsor it, if the county decided not to host the program.

Beckley indicated that she was confused about the process. Commissioner Rolland Sizemore Jr. replied “sometimes we are, too.”

The next speaker was Caryette Fenner, president of AFSCME Local 2733. Among her budget-related concerns, Fenner said she thought that the executive director of Washtenaw Head Start – Pat Horne McGee – would be returning to the board to propose budget cuts that would still allow the county to retain the program. She hoped the board would take another look at Head Start and see if there was any way to help.

Sizemore characterized Head Start as a great program – a comment that elicited applause from supporters in the audience. He said the county has to look at all its options, and that there’s the possibility of another provider taking over the program.

Conan Smith noted that the board will hold a public hearing on the 2012-2013 budget at its Oct. 19 meeting. That’s a great opportunity to talk about it, he said. Public commentary also could be made at any of the board’s other meetings, he said, including upcoming working sessions devoted to the budget. Or people could talk to commissioners directly, he noted.

Everything is still on the table, Conan Smith said. The board has a budget that’s recommended by the county administration, he added, and ”that is ripe for public discussion at this point.”

Ronnie Peterson, who had spoken at length during the July working session about his support of Head Start, reiterated his support for the program. It seems to the public that the county has already decided to cut ties with Head Start, he said, but he hoped that commissioners hadn’t made up their minds. There are a lot of other things that the county subsidizes, he said, and he wanted to talk about those, too.

Peterson said he planned to work on the issue of Head Start, as well as funding for outside agencies. The board didn’t have to adopt the budget until the end of the year, he said, and commissioners need to have a proper discussion about it. He indicated his belief that Head Start should stay with the county – and received applause from the audience.

Act 88, Veterans Relief Millages

Several other items on the agenda also related to the 2012-2013 budget. Commissioners were asked to take a final vote to approve levying two taxes in December 2011: (1) 0.05 mills for support of economic development and agriculture; and (2) 0.025 mills to pay for services for indigent veterans. Because the Michigan statutes that authorize these millages predate the state’s Headlee Amendment, they can be approved by the board without a voter referendum. Initial approval and public hearings on these millages occurred at the board’s Sept. 7 meeting.

The indigent veterans millage will cost homeowners about $2.50 for every $100,000 of a home’s taxable value. It’s expected to raise $344,486 – about $11,000 less than in 2010, due to projected decreases of property values. The county first began levying this millage in 2008. Services are administered through the county’s department of veterans affairs.

Outcome: Commissioners approved the resolution to levy the millage for indigent veterans services, with dissent from Alicia Ping (R-District 3). Kristin Judge (D-District 7) was absent.

The millage for economic development and agriculture – authorized under the state’s Act 88 – will cost homeowners $5 for each $100,000 of their home’s taxable value. It was also given initial approval at the board’s Sept. 7 meeting, with dissent from Alicia Ping, Wes Prater and Dan Smith. Nine people spoke during public commentary at that meeting, all supportive of the tax – including several people from organizations that will be funded from it.

The anticipated $688,913 in millage proceeds will be allocated to several local entities: Ann Arbor SPARK ($230,000), SPARK East ($50,000), the county’s dept. of community & economic development ($131,149), Eastern Leaders Group ($100,000), promotion of heritage tourism ($65,264), Food System Economic Partnership (FSEP – $15,000), Washtenaw 4-H ($82,500) and Washtenaw County 4-H Youth Show ($15,000).

On Sept. 21, Dan Smith said he would again be voting against the Act 88 millage, as he had on the initial Sept. 7 vote. He read from the 1978 Headlee Amendment ballot language, which was passed by voters and amended the state constitution. The ballot language stated, in part, that the amendment would “prohibit local government from adding new or increasing existing taxes without voter approval.”

Act 88: Public Commentary

As she had at the board’s Sept. 7 meeting, on Sept. 21 Jennifer Fike – executive director of the Food System Economic Partnership (FSEP) – thanked commissioners for their past support of FSEP, and encouraged them to approve the millage again. FSEP leverages the funds it receives from the millage to attract and support food businesses in this region, she said, and she provided several examples of that.

After her commentary, board chair Conan Smith noted that Fike is also a member of the Michigan Commission of Agriculture and Rural Development.

Outcome: The Act 88 millage was approved on a 7-to-3 vote, with dissent from Alicia Ping (R-District 3), Wes Prater (D-District 4), and Dan Smith (R-District 2). Kristin Judge (D-District 7) was absent.

Support of Regional Transit

At the Sept. 7 meeting, board chair Conan Smith had indicated he would be bringing forward a resolution in support of a regional transportation authority for southeast Michigan. That resolution was on the Sept. 21 agenda.

The context for the resolution is a Sept. 30 southeast Michigan regional summit that Washtenaw County has been invited to participate in for the first time. In past years, the summit included Detroit and the counties of Wayne, Oakland and Macomb. This year, Washtenaw and St. Clair counties will be included, and the topics will focus on regional cooperation and transportation. Smith and Kristin Judge have been participating in the planning stages on Washtenaw County’s behalf.

The resolution cites the benefits and goals of regional transportation, including transit options along the Ann Arbor to Detroit corridor, and connections to Detroit Metro and Willow Run airports. It notes that state Sen. Rebekah Warren (D-Ann Arbor) – who is married to Conan Smith – has introduced legislation as part of a bipartisan package to create a regional transportation authority.

The main resolved clause of the Washtenaw County resolution states:

Be It Therefore Resolved that the Washtenaw County Board of Commissioners supports the creation of a new Regional Transportation Authority to enhance interconnectivity among the communities of the southeast Michigan region and urges the participants in the 2011 Southeast Michigan Regional Summit to aggressively pursue work that meets the above outlined goals.

Support of Regional Transit: Commissioner Discussion

Leah Gunn moved to table a vote on the resolution, saying she had a lot of questions about it and it needed a complete discussion. For one, she wanted to know what the Ann Arbor Transportation Authority thought about it. [AATA is leading an effort to develop a countywide transit authority.]

Outcome on motion to table: The motion failed on a 5-5 vote, with support from Leah Gunn (D-District 9), Barbara Bergman (D-District 8), Ronnie Peterson (D-District 6), Alicia Ping (R-District 3) and Wes Prater (D-District 4). Kristin Judge (D-District 7) was absent.

Ronnie Peterson asked Conan Smith to provide more details about the resolution. Smith reviewed that for the past decade, leaders of the counties of Wayne, Oakland and Macomb, and the city of Detroit had been meeting to discuss issues common to that region. This year, Washtenaw and St. Clair counties were also invited, he said, and the focus will be on regional transportation. Each county was asked to bring a resolution of support on that issue. This resolution acknowledges that Washtenaw County supports having a conversation about creating a regional transportation authority, he said.

Barbara Bergman noted that there wasn’t mention of a budget for this in the resolution. In the past, she said, some issues have ended up consuming considerable staff time, and she didn’t want that to be the case. Bergman said she’d consider supporting the resolution if it were amended to indicate there would be no money budgeted for the effort at this point.

C. Smith said he had no intention of spending money on it. He asked if anyone objected to adding Bergman’s suggestion as a friendly amendment – there were no objections.

Peterson clarified with C. Smith that they weren’t joining a consortium at this point, but rather simply supporting the idea of discussing it.

Rolland Sizemore Jr. said he was tired of reading articles in the Detroit papers that don’t mention Washtenaw County. He viewed this as an opportunity to advertise the county while working with other communities, something he said he keeps “harping about.”

Outcome: As part of the consent agenda, the resolution was approved unanimously.

Bonds for Western Washtenaw Recycling

Commissioners were asked to give final approval to authorize issuance of $2.7 million in bonds, backed by the county’s full faith and credit, to help pay for a $3.2 million facility operated by the Western Washtenaw Recycling Authority (WWRA).

The WWRA plans to use $500,000 from its reserves to fund part of the project. The $2.7 million in bonds would be repaid through special assessments on households in participating WWRA communities – the city of Chelsea, Dexter Township, Lima Township, Lyndon Township, and Manchester Township. Bridgewater Township is participating in the WWRA, but will not help fund the new facility. The village of Manchester and Sylvan Township have withdrawn from the WWRA.

County commissioners had been briefed on the proposal at their July 7, 2011 working session. Since then, the WWRA board has approved adding a county commissioner to their board. Rob Turner – a Republican representing District 1, which covers large portions of western Washtenaw – will serve in that role.

Outcome: Commissioners unanimously gave final approval to authorize bonds for the WWRA facility.

Accommodation Tax Contract Amended

A contract amendment regarding the distribution of the county’s accommodations tax was on the agenda for final approval by the board.

The county collects a 5% excise tax from hotels, motels, and bed & breakfasts, which is then distributed to the Ann Arbor and Ypsilanti convention & visitors bureaus and used to promote tourism and convention business. The contract calls for the county to retain 10% of that tax to defray the cost of collection and enforcement. (Until 2009, the county had only retained 5% for this purpose.) The remaining funds are split, with 75% going to the Ann Arbor Convention & Visitors Bureau, and 25% going to the Ypsilanti Convention & Visitors Bureau.

The contract amendment addresses the process for distributing excess funds that might accumulate from the county’s 10%, if that amount exceeds the expenses required to administer and enforce compliance with the tax. Beginning in May 2013, the county will continue to retain 10% of the tax proceeds, plus 10% of any remaining fund balance. If additional funds accumulate in the fund balance, they are to be returned proportionally to the two convention & visitors bureaus – 75% to Ann Arbor, and 25% to Ypsilanti.

Outcome: The board unanimously gave final approval to the accommodation tax contract amendment.

CUB Contracts Suspended

At their Sept. 21 meeting, commissioners were asked to give final approval to suspend the county’s use of Construction Unity Board (CUB) agreements, pending the outcome of litigation that’s challenging the validity of the state’s Public Act 98.

CUB agreements are negotiated between local trade unions and contractors, and require that contractors who sign the agreement abide by terms of collective bargaining agreements for the duration of the construction project. In return, the trade unions agree that they will not strike, engage in work slow-downs, set up separate work entrances at the job site or take any other adverse action against the contractor.

However, Act 98 of 2011 – which became effective July 19, 2011 – prohibits municipalities from including as a requirement in a construction contract anything that would either require or prohibit contractors from entering into agreements with collective bargaining organizations. The act also prohibits discrimination against contractors based on willingness or non-willingness to enter into such agreements.

The law is being challenged in federal court by the Michigan Building and Construction Trades Council, AFL-CIO and the Genesee, Lapeer, Shiawassee Building and Construction Trades Council, AFL-CIO. They are seeking to rule the law invalid, alleging that it is pre-empted by the supremacy clause of the U.S. Constitution and the National Labor Relations Act.

At the board’s Sept. 7 meeting, when commissioners took initial action on this issue, Yousef Rabhi had proposed two amendments to the resolution: (1) to assert the effectiveness of CUB agreements in ensuring a fair and cooperative workplace; and (2) to affirm that the county would reinstate CUB agreements when it becomes possible to do so. Those amendments had been approved on an 8-2 vote, with dissent from Dan Smith and Alicia Ping.

On Sept. 21, Dan Smith said he still opposed the way that the resolution had been modified – he had objected to the second amendment, which he believed inappropriately commented on the value of CUB agreements. However, he said the No. 1 priority is to look out for taxpayer dollars and to prevent the county from being sued, so he would be supporting the resolution.

Outcome: Commissioners voted unanimously to suspend the county’s use of CUB agreements.

Public Health Budget

On the agenda was a resolution giving final approval to the county’s 2011-2012 public health budget, which includes elimination of a net of nearly seven full-time positions.

The $11,839,496 budget includes a $3,553,575 allocation from the county’s general fund – a net decrease of $583,597 from the previous year. Unlike the county’s general fund budget, which is aligned to the calendar year, the public health budget runs from Oct. 1 through Sept. 30, in sync with the state’s fiscal year.

Though a total of nearly 12 full-time-equivalent positions (a combination of part-time and full-time jobs) will be eliminated in the proposed budget, five positions will be created or reclassified, for a net loss of nearly seven FTEs.

The budget also calls for a raft of new fees and fee increases. Effective Jan. 1, 2012, new fees will be required for a change of restaurant ownership ($250), a temporary food license late fee ($60), a time-of-sale authorization extension fee ($50), and a pollution prevention late reporting fee ($25).

A sampling of the fee increases includes a septic tank only permit (from $52 to $100), a new-build well permit (from $187 to $250), and a swimming pool inspection (from $56 to $150). Cremation permit fees will be increased from $40 to $50.

Outcome: Without discussion, commissioners voted unanimously to give final approval to the county’s public health budget.

CSTS Budget, Director Retires

A resolution for final approval of the 2011-2012 budget for Washtenaw County’s community support & treatment services (CSTS) department was on the Sept. 21 agenda. The budget includes a net loss of five full-time-equivalent (FTE) positions.

The proposed $26,838,557 CSTS budget calls for eliminating seven FTEs and putting one position on hold/vacant status, but creating three new FTE positions, for a net loss of five FTEs. In addition, 19 FTE positions will be reclassified. Though CSTS is a county department employing about 300 people, it receives 98.8% of its funding from the Washtenaw Community Health Organization, a partnership between the county and the University of Michigan Health System. Commissioners were briefed on a reorganization of the WCHO at a July 7, 2011 working session. The changes are aimed at limiting the county’s financial liabilities.

The WCHO is an entity that receives state and federal funding to provide services for people with serious mental illness, developmental disabilities and substance abuse disorders. At this point, WCHO “leases” its employees from the county, and contracts for services through CSTS.

The CSTS budget runs from Oct. 1 through Sept. 30, in sync with the state’s fiscal year. The county operates on a calendar year cycle.

Outcome: Without discussion, commissioners unanimously supported the resolution giving final approval to the CTST budget.

Donna Sabourin, executive director of the county’s community support & treatment services (CSTS) department, who’s retiring after working for the county for 20 years.

CSTS executive director Donna Sabourin, who is retiring after working for the county for 20 years, was acknowledged at the Sept. 21 meeting. She’s been executive director of CSTS since 2002. The board approved a resolution of appreciation in her honor. [.pdf of resolution of appreciation] Commissioner Barbara Bergman said it was a sad pleasure to present the resolution, noting that she and Sabourin had worked closely together for many years.

Sabourin spoke briefly, saying there’s never been a day when she hasn’t felt proud to be a county employee. She thanked the board for their continued commitment to the services provided by CSTS. Even the hardest decisions that commissioners had made were done with compassion and concern, she said. Sabourin also thanked CSTS employees, and wished them well as they meet the challenges of the coming years. She said she felt tremendous gratitude for her time with the county.

Sabourin told The Chronicle that after her retirement, she plans to work managing vendors at the Town Peddler Craft & Antique Mall in Livonia.

Insurance Providers Selected

Commissioners were asked to accept proposed quotes for insurance coverage in seven areas, totaling $1,021,275 in premiums.

The Arthur J. Gallagher Insurance Agency has proposed obtaining coverage from several providers for the areas of: (1) property coverage, including boiler and machinery – Chubb Insurance Co.; (2) general liability, law enforcement liability, public officials liability, and auto liability – Genesis Insurance Co.; (3) crime – Great American Insurance Co.; (4) fiduciary liability – Chubb Insurance Co.; (5) lawyers professional liability – Underwriters at Lloyd’s London; (6) judicial liability – Underwriters at Lloyd’s London; and (7) medical professional – Hudson Insurance Co.

Outcome: The board voted unanimously to accept the proposed insurance quotes.

Appointments

In an item added late to the agenda, board chair Conan Smith moved two sets of appointments:

• Republican Melody Gable and Democrat Ulla Roth to the county board of canvassers, both for four-year terms starting Nov. 1, 2011.
• Republican Barbara Johnson and Democrats Rachel Bendit and Rose Toth to the county jury board. Johnson’s term expires April 30, 2017. Terms for Bendit and Toth also expire April 30, but in 2014 and 2015, respectively.

Outcome: Without discussion, commissioners unanimously approved the appointments.

Misc. Public Commentary

In addition to the speakers reported above, Thomas Partridge spoke at three of the four opportunities for public commentary during the evening. Saying he advocated for those who were affected by decreased services, Partridge urged commissioners to develop a plan to raise revenues by seeking grants, working to expand the number of entertainment venues in the county, and asking the wealthiest individuals and businesses in the county – including football and basketball fans – to contribute. Eight of the board’s 11 commissioners are Democrats, he noted, but no one had put forward a plan to raise revenues. He called on the board to pass a resolution asking employers locally, in the state and nationwide to hire more workers here, rather than expanding in places like China and India.

Partridge also urged commissioners to fund co-ops that would providing living spaces and employment for people in need, and he argued that a countywide drug policy is needed to combat increased property crimes and robberies caused by people using illegal drugs, including marijuana. None of the law enforcement agencies are handling this, he said, not even the sheriff’s office.

Partridge also criticized Barbara Bergman and Leah Gunn – two of the four commissioners who represent Ann Arbor district – calling them puppets of mayor John Hieftje.

Both of the other two Ann Arbor commissioners responded, somewhat indirectly, to Partridge’s final comments. Yousef Rabhi said he’d recently been interviewed by the Ann Arbor Observer for an article that the publication is doing on Bergman and Gunn. Both have announced plans not to seek re-election in 2012. He said he’d been skeptical when he came on the board – Rabhi was first elected in November 2010 – but they are phenomenal commissioners and strong supporters of human services.

Conan Smith joked that Bergman and Gunn are more like the mayor’s marionettes.

Present: Barbara Levin Bergman, Leah Gunn, Ronnie Peterson, Alicia Ping, Wes Prater, Yousef Rabhi, Rolland Sizemore Jr., Dan Smith, Conan Smith, and Rob Turner.

Absent: Kristin Judge.

Next regular board meeting: Wednesday, Oct. 5, 2011 at 6:30 p.m. at the county administration building, 220 N. Main St. in Ann Arbor. The Ways & Means Committee meets first, followed immediately by the regular board meeting. [confirm date] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public comment sessions are held at the beginning and end of each meeting.

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Pat Horne McGee, director of Washtenaw County's Head Start program, at the county board's July 21, 2011 working session. (Photo by the writer)

The presentation stressed that Head Start – which serves over 500 preschool children of low-income families in the county – would not be eliminated. Rather, the county would relinquish its status as the program’s federal “grantee,” triggering a process to find a replacement entity. Federal Head Start officials would be responsible for selecting another agency to take over from the county.

The county currently spends about $900,000 each year in support of Head Start, which has a local budget of $4.8 million – the bulk of its funding comes from federal sources. In addition, the county owes $2.68 million in bond payments related to an Ypsilanti facility it built for Head Start in 2002-03.

Seven of the board’s 11 commissioners attended the working session, and several expressed support for exploring the transition. They praised the program, which has been recognized nationally for its performance, but noted that education isn’t part of the county’s core mission. Some suggested that an organization like the Washtenaw Intermediate School District would be a better fit to administer the program.

However, commissioner Ronnie Peterson spoke passionately and at length in defense of the county maintaining its support of Head Start. He said this was the first time he’d heard about the plan, and he criticized the administration for not alerting the board publicly about their intent to jettison the program. County administrator Verna McDaniel noted that she had laid out a schedule of topics for budget-related working sessions at the board’s first budget working session on June 16. Head Start as a general topic had been on that list.

McDaniel pointed out that the board had set priorities and instructed her to review closely all the county programs and services to determine whether the county should continue to offer them, in light of current economic conditions. “At the risk of maybe making some of you uncomfortable, I’m doing just that,” she said. The discussion about Head Start is in that context, she said.

Peterson argued that the board should look at Head Start in relation to other non-mandated programs that receive general fund support. What other programs should be part of the budget discussion? The county funds the Humane Society of Huron Valley, for example, he noted. [Rather than run its own shelter, the county pays $500,000 annually to the HSHV to provide animal shelter services mandated by the state.] Peterson said he loves his pets, but at the end of the day, Head Start is more important.

Washtenaw Head Start: Presentation

Kelly Belknap, interim deputy administrator, gave the formal presentation on tentative plans for the county to pull out as the responsible party for the Washtenaw Head Start program. She stressed that county officials are considering this option in the context of a broad review of county programs and services. As the county faces a projected $17.5 million two-year deficit for 2012-2013, the administration is reviewing whether some programs or services that the county now provides would be better offered by another entity. Questions and concerns raised by commissioners will help guide the administration, she said.

Head Start is a federal grant program that promotes school readiness for children from low-income families, between three to five years old. The program offers educational, nutritional, health, social and other services. The county has administered this program for 46 years – in federal parlance, the county is the “grantee” for the program in Washtenaw County. There are several sites throughout the county. The largest is in Ypsilanti, serving 262 children and their families. Another 299 children are served at sites in Ann Arbor, Whitmore Lake and Willow Run.

The program employs 34.8 full-time employees – of those, 25.5 are teachers, and 6 positions are in administration, including one that’s currently vacant. Most of the workers – 27.3 of the 34.8 FTEs – are represented by unions. [A report distributed later in the meeting by Washtenaw Head Start director Pat Horne McGee states that the program employs nearly 100 workers countywide, both full-time and part-time.]

Head Start’s budget for 2011-12 is $4,854,094 – the bulk of that ($3,675,966) comes from federal funding. Another $528,048 comes from the county’s general fund, and the program also plans to use $129,838 from the Head Start fund balance during the fiscal year. Remaining funds come from in-kind contributions and a U.S. Dept. of Agriculture reimbursement.

To retain federal funding for Head Start, the county (as grantee) must fund at least 20% of the total budget – or about $918,000 in FY2011-12. That comes from the combination of general fund dollars and in-kind support, Belknap said. In addition, the county subsidizes part of Head Start’s cost allocation plan (CAP) – an amount charged to each county department for things like the county attorney and administration. Head Start’s CAP was assessed at $435,000 in FY2010-11, Belknap said, but the program was only charged $167,974. Over the years, she said, the county has typically exceeded the 20% requirement.

Including the CAP and general fund support, Belknap told commissioners that Head Start had received $5.976 million in subsidies from the county since FY2005-06.

The question that the administration is now asking, she said, is whether Head Start is part of the county’s core mission. While it’s a solid program, perhaps there are partners in the community that are better-suited to operating it. The program is discretionary – it’s not a service that’s mandated by the state. What’s more, educational programs aren’t part of the county’s core function, she said – even though the county is proud of Head Start. On the financial side, personnel costs continue to rise but federal funding will likely remain flat, at best, she said.

The program could continue under a different grantee, Belknap said. The process would work like this:

1. The county would notify the regional Head Start office that the county intended to relinquish its status as grantee.
2. A date would be set to end the county’s participation in the program.
3. The national Head Start office would issue a request for proposals (RFP) and select a new grantee. Entities that could qualify as a grantee include: (1) a public entity – like a school district, university, municipality or a new consortium; (2) a nonprofit or for-profit organization; or (3) a regional Head Start office.
4. If no new grantee is selected by the county’s end date, the national Head Start office would appoint the Community Development Institute (CDI) as the program’s interim manager. CDI is a federally funded entity specifically charged with providing this kind of interim service for Head Start programs. Current Head Start staff in Washtenaw County would have to re-apply for their positions, Belknap said.

Another factor to consider is the $3 million Head Start building that the board of commissioners voted to build in 2002, Belknap said. The county owes $2.68 million on bond payments through 2022.

Chart showing the bond payment schedule for the Washtenaw Head Start building in Ypsilanti. (Links to larger image)

It’s likely that the building will factor in to any agreement made with the next grantee, Belknap said. She noted that all of the “rent” paid by Head Start goes directly to the bond payments. In addition, Head Start will make payments to the county through FY2052-53 to repay the county for the full amount of the bond. The county will also need to determine what obligations it has for more than $748,000 it received in federal funds for the building, she said.

Belknap concluded by laying out the proposed next steps. The board would make a decision about Head Start as part of the 2012-13 budget it approves in November. In December, the county would notify the regional Head Start office of its intent to relinquish its responsibility for the program, and set an end date of August 2012 to end participation.

Washtenaw Head Start: Commissioner Discussion

Yousef Rabhi, who chairs the working sessions, began by framing the discussion with a question: Is Head Start a service that the county government should be providing?

Ronnie Peterson was the first to respond – and he responded at length. ”There’s a lot of stuff we shouldn’t be in the business of, but we’re in it,” he began. He wondered who had scheduled this topic – it was the first he’d heard that the county was considering letting go of Head Start.

He hoped the county would always be in the business of securing the healthy future of its children. The county is often the place of last resort, Peterson said, but the county government’s safety net already has a lot of holes. The county has cut back on programs even during good times, he said. Whenever that happens, it’s important to understand the impact these decisions have on the people that are served. The presentation on Head Start didn’t include that kind of information, he said.

Peterson pointed to recent changes at the juvenile court as a similar situation. The old facility on Platt Road was dilapidated and that was the reason cited for moving the juvenile court to the downtown Ann Arbor courthouse – yet the reason the original facility was dilapidated was because the county didn’t invest in it, he contended. That was a choice that was made. In the past, county commissioners have made verbal commitments to services for children, but they haven’t followed through with funding, Peterson said. And now the board is talking about leaving Head Start, which has won national awards, he noted.

Peterson said he couldn’t believe no one had brought up this transition at earlier meetings. The county had built a new $3 million facility for Head Start just a few years ago. If Head Start was on the table, why didn’t county officials bring in experts to talk about what the options are? he wondered. The county spends more money on vehicles in a year than it does on Head Start in 2-3 years, he said.

Peterson wanted the county administration to put the Head Start discussion in the context of other non-mandated programs that receive general fund support. What other programs should be part of the budget discussion? The county funds the Humane Society of Huron Valley, for example, he noted. [The county pays $500,000 annually to the HSHV to provide animal shelter services mandated by the state.] Peterson said he loves his pets, but at the end of the day, Head Start is more important.

He noted that school districts are facing budget deficits too – how will those districts be better equipped than the county to handle Head Start?

The board needs to form a budget & finance committee to work more closely on these issues, Peterson said, so the board can get more control over the county’s finances. It’s been embarrassing for several years, he said.

When Peterson finished his turn, Rabhi reviewed for commissioners the budget process that they agreed to earlier this year, which included priority-setting retreats. More recently, commissioners had voted to add five working sessions devoted exclusively to budget issues, Rabhi noted – the topics for those working sessions had been discussed at previous meetings, he said, “and this is one of them.”

From Chronicle coverage of the first budget working session, on June 16:

Finally, [county administrator Verna] McDaniel provided a list of topics for budget-related working sessions in the coming months:

• July 7: Updates on the WCHO split from the county, the Western Washtenaw Recycling Authority, and the Ann Arbor Skatepark
• July 21: Head Start
• Aug. 4: Retirement funding, unfunded accrued liabilities, debt, and time owed to employees
• Aug. 18: County building/space plan, county/city of Ann Arbor dispatch consolidation
• Sept. 9: Health care reform, tax increment financing (TIF)

The remainder of scheduled working sessions for September, October and November will be budget-related, but specific topics have not been identified at this point.

McDaniel repeated Rabhi’s comments, stressing that the topics of the budget working sessions had been discussed at their June 16 meeting. She noted that the first major reorganization had been to consolidate three departments – the office of community development, the economic development & energy department, and the employment training and community services (ETCS) department. Staff had briefed the board on that consolidation at several points, she said, including a May 5, 2011 working session. [The board gave initial approval to the consolidation at its July 6 meeting, and are expected to take a final vote on Aug. 3.]

These working sessions are a forum for the administration to bring forward proposals and seek board input, McDaniel said. She noted that the board had set priorities and instructed her to closely review all the county programs and services to determine whether the county should continue to offer them. “At the risk of maybe making some of you uncomfortable, I’m doing just that,” she said. The discussion about Head Start is in this context.

McDaniel emphasized that she is not proposing to eliminate the Head Start program. The question is whether the county government is the best grantee for it. The presentation was not intended to impugn Head Start in any way, McDaniel said.

In response to a query from Peterson, McDaniel said that in addition to the three-department consolidation and possible Head Start changes, other possible reorganization includes the county/city of Ann Arbor dispatch consolidation and possibly increasing the county’s IT partnership with Ann Arbor. [For background on the dispatch consolidation, see Chronicle coverage: "Ann Arbor, Washtenaw: Joint 911 Dispatch?"]

Wes Prater said he understood that Head Start is a discretionary program, but it has enjoyed strong board support. He believed the county should consider finding a different grantee, but he’s concerned about what would happen to the children and families if the transition is unsuccessful. He asked for additional information in writing – including background about how school districts are currently involved – and said this won’t be the only board discussion on the issue. But if there’s another grantee out there that could take over responsibility for Head Start, the county should consider it, he said.

Dan Smith clarified the funding that the county currently provides to Head Start: (1) $528,000 annually from the general fund; (2) $267,000 in a subsidy for Head Start’s portion of the county cost allocation plan (CAP) – an amount charged to each department for things like the county attorney and administration; and (3) a portion of the bond payment for the Head Start facility.

Kelly Belknap, interim deputy administrator, said that when she referred to the county supporting Head Start with $5.9 million over a seven-year period, she was not including the bond payments. That’s because the Head Start program has made a commitment to pay off the county’s portion of those bond payments eventually – through fiscal 2052-2053.

D. Smith confirmed that in total, the county paid about $900,000 annually to support Head Start. He also drew out the fact that Head Start’s fund balance was low – there isn’t much more available in the fund balance beyond the $130,000 that Head Start plans to use from it for the FY2011-12 budget, Belknap said. She added that if union concessions are secured for the coming year, Head Start would need to use less of its fund balance.

Alicia Ping said if the county could find another qualified grantee, that would be great – especially if it’s an educational entity. But she also agreed with Peterson’s desire to see the whole picture, not just to be presented with isolated options on ways to cut expenses.

Leah Gunn weighed in to defend some of the board’s past actions. Her first year on the board, in 1997, she joined the Head Start policy council. At that time, Head Start officials at the federal level had told the county that its Head Start program was failing, she recalled. The county eventually hired Horne McGee, she said, who built it into a program with a reputation for excellence.

Gunn said it breaks her heart to look at these numbers, but it takes almost $1 million to run the program, offering services that school districts like Ypsilanti and Willow Run can’t provide. But given the county’s other obligations, she added, she couldn’t see how the county could continue to run it.

The county hadn’t cut children’s services, Gunn continued. In 1998, the board instituted the children’s well-being program and has allocated roughly $1 million each year to nonprofits that provide children’s services, she said.

Turning to the topic of the juvenile court, Gunn said the reason that the county built a new juvenile detention center was that the Platt Road facility had been uninhabitable. She’s proud of the new facility and the programs run out of it. The same is true for the juvenile court – county staff determined that the Platt Road location wasn’t worth renovating, so the court was moved downtown. She disputed Peterson’s contention that kids are forced to mingle with adult offenders.

Gunn pointed out that the other major non-mandated service that the county provides is police services. She noted that the board had been through that discussion, and the majority of commissioners determined that police services were a priority. So the county is spending millions of dollars to subsidize the cost of sheriff deputy patrols for municipalities that contract for those services, as well as supporting general fund deputies, she said.

The board knows her feelings about this, Gunn said, but she voted yes because she didn’t have the votes on her side and she didn’t want to waste everyone’s time debating it. [Gunn, one of four commissioners who represent Ann Arbor, has previously voiced dissent over the amount of money that the county spends to offset the cost of sherif deputy patrols throughout the county. For additional background on the issue, see Chronicle coverage: "The Price of Washtenaw Police Services"]

While she is sad to lose the program, it doesn’t mean that Head Start will be eliminated, Gunn said. The county will find another grantee. She recalled a similar situation when the county decided that it could no longer support the Library for the Blind and Physically Disabled. Now that service is provided by the Ann Arbor District Library, she noted. These are hard decisions, but the board must determine whether Head Start is a core service or not. ”In the end, it probable is not,” she said.

Rob Turner, a former Chelsea school board member, told commissioners he’s dealt with Head Start from the school’s perspective – it’s been successful in some districts, less so in others, he said. Turner agreed with some of Peterson’s comments, and suggested that county officials talk to leaders of the Washtenaw Intermediate School District (WISD) to see if they’re interested in taking on the program. The WISD, as a countywide educational entity, would be in the best position to coordinate it, he said, and make it even stronger and more effective.

Turner said the county is the wrong entity to handle Head Start, but he’d hate to see the program turned over to the feds – there would be a disconnect with the community, he said. The county needs to work to find another agency to take on the program, so that the baton can be passed without disrupting services to children and their families.

Gunn pointed out that Head Start is actually a federal program now – it’s monitored by federal officials, receives the bulk of its funding from the federal government, and must meet federal standards. If the county wants to end its participation, there’s a process that must be followed – and the county can’t select the entity that would take over the program. ”I’m sorry to say that’s the truth, but when you take federal money, you have to follow federal rules,” she said. “That’s the way it is.”

Peterson replied, “It may be federal dollars, but these are Washtenaw County babies.” He again described his concerns about the impact on the children and families, and said he hoped that the board’s next meeting would be filled with parents and children who would show commissioners how much the families need Head Start. His district wasn’t the most challenged – Rolland Sizemore Jr.’s district held that distinction, he said. [Sizemore represents District 5, covering parts of Ypsilanti Township and Superior Township.]

But Peterson added that he also had a lot of disadvantaged people in his district [District 6, covering Ypsilanti and part of Ypsilanti Township] and called himself an advocate and a voice for the disadvantaged and poor. He warned his fellow commissioners not to expect his support for their issues, if they didn’t support resources for children.

The county pays for other mandated services – like the sheriff’s road patrols, the energy department and participation in the Urban County, Peterson noted. He supported those programs, but is troubled that others aren’t supporting attempts to lift children out of poverty.

Gunn responded by saying she grew impatient with Peterson for claiming he’s the only one who has poor people in his district, or who cares about children. Every commissioner does, she said, and she especially resents it given her long-time work with Head Start and funding for children’s services. And as for the Urban County, it’s also a federal program, she noted – it receives money from the U.S. Dept. of Housing and Urban Development (HUD) specifically for projects in low-income neighborhoods and for low-income residents.

Turner thanked Gunn for pointing out that the transition for Head Start wasn’t something that the county could decide itself. However, he said, it’s been his experience that state and federal officials are receptive to recommendations. If the county suggests an entity to take over, he believed the federal agency would entertain that suggestion to make the transition smoother.

At the end of the discussion, Rabhi wrapped up by thanking commissioners for their input on what was a hard topic to discuss. The theme he’d heard was that the most important thing is what’s best for the children. Rabhi said that will weigh heavily on his mind as commissioners continue exploring options for Head Start.

Wasthenaw Head Start: Public Commentary

About a dozen Head Start staff and supporters attended the July 21 session, but only two people spoke during public commentary at the end of the meeting.

Shirley Beckley said she’s lived in Ann Arbor her whole life and is a product of the school system. Her grandson goes to Head Start and has benefited from it, and she’s disappointed that commissioners are talking about shifting the program out of the county’s control. She hoped the board would reconsider. She’s worried that shifting it to another entity would be disruptive, and the children and families don’t need another disruption in their lives. Beckley said she’s also had reason to interact with the county’s juvenile court system, unfortunately, with some of her children and grandchildren. She was disappointed that the facility had been moved to the downtown courthouse – she’d come to one of the board’s previous meetings to speak against that move, but said the public didn’t really have any say-so in the matter.

Beckley hoped the county would take care of Head Start the same way they’ve taken care of the juvenile court. Commissioners say they’re not in the business of educating children, ”but you’re in the business of locking them up!” she said. Head Start is one way to take care of children so that it doesn’t reach that point. The Head Start program has a director who cares about the children and who has a national reputation, Beckley said. She’d hate to see things get lost in the shuffle of moving to another entity, and to see the children suffer. She again stated that she hoped they’d reconsider.

Pat Horne McGee, director of Washtenaw Head Start, also addressed commissioners during public commentary – she had not been part of the formal presentation. She’s been director for the past 12 years, she said, and wanted to clarify some things. Head Start isn’t primarily an education program, she said – it’s a comprehensive development program, addressing a child’s emotional, social, and health needs. If children are not healthy, they can’t learn, she said. Before coming to Washtenaw, Horne McGee said she’d been director of Head Start in Wayne County, which was also an award-winning program. The Wayne County grantee, an intermediate school district, ended the program because it wanted to focus on K-12 education. But preschool is vital to K-12 success, she said.

Horne McGee passed out copies of letters of support for the county to keep Head Start. Among them was a letter from former Ann Arbor city councilmember Leigh Greden, who’s now executive director of government and community relations for Eastern Michigan University. He wrote about the partnership between Washtenaw Head Start and EMU, which brings children and their parents to EMU’s campus in the fall.

She also distributed a briefing paper that described the local Head Start’s impact on the community and economic development. Among other things, the document (1) outlined ways that the program has made cuts over the years to address the worsening financial situation, and (2) proposed several alternatives that could lower the county’s general fund contribution to Head Start – options such as requesting additional in-kind contributions from local partners, and tying staff raises to increases in federal grant support.

Horne McGee concluded by thanking the Head Start staff and parents – and former parents, she said, pointing to county treasurer Catherine McClary – who had attended the meeting that night.

Washtenaw Head Start: Public Commentary – Commissioner Response

Leah Gunn noted that she served on the Head Start policy council when the county hired Horne McGee, and said Horne McGee has been a fantastic director. ”All we need is money to make this work, my friends,” Gunn said. The program aims to break the cycle of poverty, Gunn added, and if the county could keep the program, it would. But she didn’t see how the county could find the money to do that.

Ronnie Peterson expressed displeasure that Horne McGee hadn’t been part of the formal presentation. He indicated that it’s appropriate for any program director to participate in that way, when their work is being discussed. Rob Turner echoed that sentiment, noting that all three department directors had participated when the reorganization of their areas had been discussed before the board. He highlighted Horne McGee’s comment about the importance of preschool preparation for K-12 success, and said that’s why it would be good to have the WISD or a school district take over the program.

Yousef Rabhi said he thought there had been an invitation extended to Horne McGee to participate in the presentation, but that for some reason that didn’t work out. It’s not his intention to shut people out, he said. [Horne McGee told The Chronicle after the meeting that she'd been told to attend, but not invited to make a presentation.]

Wes Prater reminded his colleagues that they have a county administrator, Verna McDaniel, who is under contract to present a budget to the board – that’s her job. When the board gets the budget, commissioners can slice and dice it anyway they want. But first, he said, ”I think we need to allow her to do her job, then we’ll do ours.”

Peterson replied that it seemed to him there are meetings taking place in advance of the public meetings – some strategy had already been laid. If that’s the way the game is played, he said, then that’s all the more reason to have a budget & finance committee of the board. Commissioners hire, fire, restructure and adopt the budget, he said. Their working sessions are meant to discuss these issues. ”Tonight was a one-sided presentation,” he said. “Let’s not make it that way again.”

Prater responded to Peterson by saying he wasn’t talking about the presentation – he was talking about the overall process. The board doesn’t have the authority to tell the county administrator what to put in the budget. It’s in her contract as her responsibility, Prater said.

Present: Leah Gunn, Ronnie Peterson, Alicia Ping, Wes Prater, Yousef Rabhi, Rob Turner, and Dan Smith.

Absent: Barbara Levin Bergman, Kristin Judge, Rolland Sizemore Jr., Conan Smith

Next regular board meeting: Wednesday, Aug. 3, 2011 at 6:30 p.m. at the county administration building, 220 N. Main St. The Ways & Means Committee meets first, followed immediately by the regular board meeting. [confirm date] (Though the agenda states that the regular board meeting begins at 6:45 p.m., it usually starts much later – times vary depending on what’s on the agenda.) Public comment sessions are held at the beginning and end of each meeting.

The Chronicle could not survive without regular voluntary subscriptions to support our coverage of public bodies like the Washtenaw County board of commissioners. Click this link for details:Subscribe to The Chronicle. And if you’re already supporting us, please encourage your friends, neighbors and colleagues to help support The Chronicle, too!