Washtenaw County administrator Verna McDaniel gave a budget update to commissioners at their Jan. 16, 2013 meeting. (Photos by the writer.)

Although a much smaller general fund deficit of $3.93 million is projected for 2014, McDaniel hopes to make $6.88 million in structural changes that year – a combination of new revenues and cuts in expenditures. If that happens, “we’d be done – we’d have no deficit” going forward, McDaniel said, because those cuts and revenue increases would compound and carry over into future years.

To do that, for 2014 the goal is to generate an additional $1.2 million in revenue, reduce operating costs by $2.96 million, cut $100,000 from outside agency funding, and find $2.62 million in reductions to employee compensation and benefits.

McDaniel noted that for 2012-2013, the county overcame a $17.5 million deficit – but only about $7.3 million of that came from structural changes. Yousef Rabhi, the board’s chair, noted that even though the $6.88 million target is lower, the cuts will be a challenge because many services are already cut to a minimal level.

The board has set a planning retreat for Thursday, March 7 at 6 p.m. – to be held during its regular working session – to talk about budget priorities.

In other action at the Jan. 16 meeting, commissioners were appointed to more than 40 boards, commissions and committees. [.pdf of 2013 appointments listing] Because of changes approved late last year, commissioners will receive stipends based on the number of groups on which they serve, and the number of meetings that they are expected to attend.

Though there are still some details to be determined, a tentative tally of stipends shows a total of $8,800 for all nine commissioners, with individual pay ranging from a low of $0 for Ronnie Peterson, the only commissioner with no appointments, to $2,700 for Yousef Rabhi, whose appointments include several that are mandatory because of his position as board chair.

Unlike the previous per diem system – when commissioners had to request payments, which were administered by the county clerk’s office – the stipend payments will be pro-rated, aggregated and paid out biweekly as part of a commissioner’s paycheck. No one is responsible for monitoring attendance, and absences will only be addressed if brought to the attention of the board chair.

During the Jan. 16 meeting, commissioners also approved a variety of federal grants, primarily related to funding for homeland security and job training. And given initial approval was an application for a $20,000 grant to fund expansion of an after-school program called “Telling It” in the West Willow and MacArthur Boulevard housing developments – low-income neighborhoods on the east side of Washtenaw County.

The grant application is unusual in that it’s the first time a county unit – in this case, the sheriff’s office – has sought funding through the coordinated funding pilot program, which was designed to support human services more effectively in this community. The coordinated funding is a partnership of Washtenaw County, the city of Ann Arbor, the United Way of Washtenaw County, the Washtenaw Urban County, and the Ann Arbor Area Community Foundation.

County Budget Update

The county works on a two-year budget planning cycle. Its fiscal year matches the calendar year. In late 2011, commissioners set the budget for 2012 and 2013. However, because state law mandates that the board must approve the budget annually, commissioners voted on Dec. 5, 2012 on a budget “affirmation” for 2013, making several adjustments to the $102.8 million general fund budget. This year, they’re beginning the two-year cycle anew, planning for 2014-2015, with a longer-term view through 2017.

At the Jan. 16 meeting, county administrator Verna McDaniel and her financial staff gave commissioners an overview of the county’s current financial condition, setting the stage for preliminary estimates of the budget in 2014 and beyond.

County Budget Update: Current Conditions

In many ways, the county is in a better financial situation than it has been for several years, McDaniel told the board. The county maintains a AA+ bond rating – the second highest possible rating – with a debt ratio of 0.96%. That’s well below the 10% level that it must maintain by board policy. Although the county has tapped its general fund reserves to balance the budget in recent years, it has used less of the reserves than expected.

Chart showing sources for the $102.8 million general fund revenues in 2013. The largest source comes from taxes and penalties – 59%. Another 20% of revenue comes from fees and services. (Chart provided in Jan. 16 board packet.)

It’s important to remember that several factors are still in flux, McDaniel said. A portion of the state’s revenue-sharing program will now be tied to incentives, which will affect how much funding the county receives. Starting next year, the county will only be getting about 75% of the amount it has historically received, she said – or about $4 million annually. About 20% of that $4 million will be tied to the state’s incentive program requirements.

This year, the county will receive about $2.7 million in state revenue-sharing, and will be drawing down the $4 million that remains in the county’s state revenue-sharing reserve fund. After this year, that reserve fund will be depleted.

Property tax revenues are still falling, though the decreases have begun to stabilize, McDaniel said. The original projection for 2012 was for a 5% decline in property tax revenues, but in fact revenues fell only 0.77%. For 2013, projections call for a 2% decline.

The state has also repealed the personal property tax. McDaniel said she hopes there will be replacement revenues for that, but the legislature hasn’t yet determined what that might be.

In general, Washtenaw County hasn’t been hit as hard as other communities, McDaniel noted, “but the impact has been significant to us.” Property taxes won’t return to the robust levels that the county was accustomed to for quite some time, she said.

Another significant factor relates to federal funding. The county has already started to see reductions in federal grants, and further cuts are expected, McDaniel said. “The question that remains for the board is how the general fund should respond to these reductions in non-general fund areas – that’s going to come to you.”

The county really won’t know the full picture for 2013 until April, when the annual equalization report is completed. McDaniel stressed that her presentation was a preliminary picture, and that she’ll be bringing a more detailed report in May.

County Budget Update: Current Conditions – Expenditures

Turning to the expense side, McDaniel noted that since 2002, the county has been managing reductions in its budget due to decreases in state revenues and property tax revenues. Most departments have been cut by at least 20%, and are now “down to the bone,” she said. “We don’t have fat in our organization, so [budget cuts] will be an even bigger challenge.”

Personnel costs account for 67% of the county’s expenses in the general fund budget – or about $65 million. Fringe benefits equal about 66% of salaries, and health care costs are expected to increase over 8% annually. The county has been able to offer excellent wages and benefits in the past, McDaniel said, “but this is something we’re going to have to monitor.”

Chart of Washtenaw County 2013 general fund expenditures. Public safety services – including the sheriff’s office and jail – account for 54% of the budget, while judicial expenses are 18% of expenditures. (Chart provided in Jan. 16 board packet.)

Because the county is a service industry, personnel costs are the largest expense. The county’s unions have helped achieve previous budget goals in the past few years, McDaniel said. Contracts negotiated in 2011 resulted in most union and non-union employees not getting salary increases in 2012 and 2013, with “step” increases for union employees frozen in 2013. Separate agreements were made with two unions – Police Officers Association of Michigan (POAM) and the Command Officers Association of Michigan (COAM) – that are expected to save a total of $5.6 million over a four-year period through 2015.

This year, McDaniel said, the county will be entering into negotiations with nearly all of its 17 bargaining units, which have contracts that expire on Dec. 31.

Another major expense category is appropriations to non-general fund activities, which accounts for 16% of overall expenditures. Those expenses include the child care fund, public health, environmental health, and infrastructure, among others. For mandated services, the levels of serviceability need to be reviewed carefully, McDaniel said. Because those levels are “squishy,” she said, the administration needs to negotiate with other county elected officials to determine an appropriate budget. [Though units like the sheriff's office, prosecuting attorney's office, courts and clerk's office are overseen by elected officials and provide state-mandated services, their budgets must be authorized by the county board of commissioners.]

By function, 54% of the county’s general fund budget is allocated to public safety, with another 18% allocated to the judicial system. Another major expense category is general government costs (23%), which include county administration, human resources, IT, finance and other administrative services.

Tax appeals are another factor on the expense side, McDaniel said. Until recently, the county only budgeted about $100,000 to cover appeals that might be made on property tax assessments. Since the economic downturn, more people are appealing their assessments, she said. The 2013 budget includes $1 million to cover possible appeals.

All of this comes at a time when the community needs the county’s services more than ever, McDaniel said. She also noted that there has been a transition internally within county government, with two new commissioners, new board leadership, and more than 100 retirements at the end of 2011 that created a “brain drain.”

McDaniel reminded commissioners that the county overcame a $17.5 million deficit over the two years of 2012 and 2013. However, about $7.3 million of those reductions were one-time savings, not structural. So there’s more work to do, she said.

County Budget Update: Projections

Looking ahead, McDaniel provided preliminary estimates that show a general fund deficit of $3.93 million for 2014, which translates to 45.9 full-time-equivalent employees. That’s followed by projected deficits of $4.88 million in 2015 (56.9 FTEs), $6.53 million in 2016 (76.4 FTEs), and $9.27 million in 2017 (108.1 FTEs). McDaniel stressed that the projected deficits reflect a compounding impact if no action is taken. In addition, the FTE figures were merely a translation to show how many employees would hypothetically be affected in order to balance the budget – it’s not a policy decision to have layoffs, she said. McDaniel said she wanted to make that clear so that people in the organization wouldn’t be scared.

From left: Kelly Belknap, the county’s finance director, and finance analyst Tina Gavalier.

The projections assume a 2% decrease in property tax revenues for 2013, followed by only minor increases – 1% annually – in property tax revenues for each of the following four years. Other assumptions include lower state revenue-sharing and an 8% increase in costs for fringe benefits, with no across-the-board salary increases. However, the projections assume that step increases and longevity pay would be reinstated for union employees, and that there would be no furloughs or banked leave days.

McDaniel noted that most current union contracts expire at the end of 2013. The unions have formally requested a special conference with administration on Jan. 23, she reported. [After the meeting, Caryette Fenner – president of AFSCME Local 2733, the county government’s largest union – clarified for The Chronicle that the purpose of the meeting is to discuss possible responses to the state's right-to-work legislation. For a report on a Jan. 3 board working session about that issue, see Chronicle coverage: "County Board Weighs Right-to-Work Response." For a look at how the Ann Arbor Transportation Authority is responding to right-to-work legislation, see: "AATA OKs Labor, Agency Fee Accords"]

Nothing is off the table, McDaniel said, because even with 0% salary increases, the county still faces a deficit.

Contracts for police services – under which other municipalities pay the county for sheriff deputy patrols – are expected to include a 1% increase in both 2014 and 2015, but no subsequent increases in 2016 or 2017. That’s not a policy decision, McDaniel said, but a conservative estimate for budgeting purposes.

County Budget Update: Proposed Response

McDaniel stressed the importance of taking a long-term view, as well as the need to make some cultural changes. The county can’t be all things to all people, she said, and previous “needs” might now need to be re-evaluated as “wants.”

To do this, the board needs to give direction to the staff. An upcoming retreat will be focused on providing that direction, she said, and staff will be listening intently to discern the board’s priorities. The county needs to define its core services and determine what kind of community impact they want to make. McDaniel referred to a June 2009 article in the Harvard Business Review – “Making the Best of a Bad Situation,” by Robert Sutton – that describes what employees need during difficult times, including predictability, control, understanding and compassion.

McDaniel highlighted the impact of making $6.88 million in structural cuts in 2014. If that happens, “we’d be done – we’d have no deficit” going forward, she said. To reach that goal, the administration is proposing to generate an additional $1.2 million in revenue, reduce operating costs by $2.96 million, cut $100,000 from outside agency funding, and find $2.62 million in reductions to employee compensation and benefits. In that regard, McDaniel noted that 327 employees currently have what’s called a “Cadillac” health care plan. Under new federal health care laws, the county government will pay a 40% tax starting in 2018 if those plans remain in place.

McDaniel noted that for 2012-2013, the county overcame a $17.5 million deficit – but only about $7.3 million of that came from structural changes. Although the $6.88 million might seem like a “walk in the park” to some, she said, it needs to be done in the context of departments that have already made deep cuts.

She noted the importance of partnering, when it makes sense to shift county services to other organizations. As an example, she noted that this happened when the Ann Arbor District Library took responsibility for handling the Library for the Blind & Physically Disabled, which in the past was part of the county government. She also cited examples of partnering with the city of Ann Arbor on dispatch operations, and participating in the coordinated funding approach for human services. McDaniel noted that other examples of collaboration are posted online.

Felicia Brabec led her first meeting as chair of the Washtenaw County board’s ways & means committee.

Overcoming the projected deficit is a great challenge, McDaniel said. She added that she felt really good about the county’s financial situation in 2013, “barring any crazy surprises nationally or state-wise.” But the 2013 strategy is using general fund reserves to balance the budget, she noted. “We need to get out of the business of using fund balance to balance the budget,” she said. Instead, the county should put an additional $4 million into those reserves. It’s important because those reserves are used to pay bills during the first six months of the year, before taxes are collected in July.

McDaniel also floated some questions that commissioners should consider in their upcoming deliberations: (1) Do current budget allocations have the impact that commissioners desire? (2) Should the general fund be used when there are federal/state revenue reductions in non-general fund programs? and (3) What community area(s) can the county least afford to impact any further?

The board has set a planning retreat for Thursday, March 7 at 6 p.m. – to be held during its regular working session – to talk about budget priorities. McDaniel said that March through August will be the time when the “meat” of budget preparation will occur – with labor negotiations, town hall meetings with employees, and internal analysis of departmental budgets. The goal is to bring a draft budget to the board in September, with adoption by the board in November.

County Budget Update: Board Discussion

Conan Smith wondered if the 1% projected increase in property tax revenues in 2014 through 2017 takes into account personal property tax reforms. Yes, McDaniel replied, but the projections assume there will be an 80% reimbursement of PPT. Tina Gavalier, the county’s finance analyst, reported that the projections reflect a $390,000 decrease in PPT.

McDaniel added that the county isn’t counting on the PPT replacement revenues, and the budget projections might have to be revised later this year. The board will get another budget update in May.

Regarding the police services contracts, Smith asked if the 1% increase is for revenues or expenditures. It’s a projected revenue increase to the county, Gavalier said. The contracting communities also will pay for any increases in fringe benefits.

Rolland Sizemore Jr. asked about the $100,000 cuts to outside agencies – what organizations are included? McDaniel said the outside agency funding is a separate list that includes human services groups like the Shelter Association of Washtenaw County, as well as dues and membership fees.

Alicia Ping wanted to see what would happen if different percentages were plugged into the projections. For example, instead of a projected 2% decrease in property tax revenues for 2013, what would the outlook be if revenues decreased only 0.77% – as was the case in 2012? She asked the finance staff to send that information, and also to calculate a 0% change in 2014, followed by an increase of 0.75% in 2015.

Andy LaBarre asked for clarification about how the projected deficit of $9.271 million for 2017 relates to the $6.88 million in structural changes that McDaniel proposed in 2014. McDaniel replied that the deficit compounds each year if nothing is done. The $6.88 million is the “magic figure” that if achieved, would eliminate the need for cuts in future years, she said. LaBarre characterized it as a “silver bullet.”

Yousef Rabhi, the board’s chair, praised McDaniel and her staff, saying he was proud to have a team like hers to lead the county through this difficult time. Even though there was some optimism in her presentation, which isn’t a bad thing, he said, Rabhi emphasized that the county has already been through a couple of rounds of major cuts. So they should be optimistic “in a measured sense,” he said, and understand that the $6.88 million in new revenue and cuts will be a challenge.

Ronnie Peterson asked when the structural changes might occur. McDaniel replied that the county won’t know what its 2013 revenues will be until April, when the equalization report is completed. She’ll be giving the board an update in May.

Peterson asked for a report on what’s happening at the state and federal levels, and how those changes might impact the county budget. He wanted to know if the board would be discussing the proposed structural changes at the retreat. He expressed concern about employees, noting that they have sacrificed a lot to keep the organization afloat. “Only so much blood is available from those who come to work every day,” he said. Peterson advocated for soliciting comments from employees about how to approach these changes. He wanted to ensure that employees continued to provide services, and were not forced to become recipients of those services.

Responding to Peterson, Rabhi said he’d like to accommodate some of those points during the upcoming retreat.

Conan Smith said it was nice that the county doesn’t have the same severity of budget challenges that they’ve faced in the past few years. He appreciated the focus on structural changes and the long-term outlook that McDaniel and her staff are taking.

McDaniel said the county needs to keep an open mind about the budget planning period. They’ve been looking at two years, but she’d like the board to entertain the possibility of looking beyond that.

Smith noted that Oakland County has moved to a three-year budget planning cycle, and it’s had a positive impact. He said he’ll keep an open mind, but he’s also concerned about the strictures that a longer budget cycle would put on future boards. [Commissioners are elected to two-year terms.] It would be helpful if McDaniel identified parts of the budget where longer-term stability is more important, he said, as well as places where having more flexibility is easier to accommodate. That would allow for flexibility to pursue commissioner interests, he said, as well as to respond to emerging issues throughout the community.

McDaniel agreed that a certain amount of flexibility needs to be built into the budget planning. It’s important to be nimble, she said, especially in this economy.

Smith then turned to the issue of cash flow as it relates to the county’s general fund balance. He noted that McDaniel had alluded to the need for those funds to cover the long gap between December and July, when the county’s property tax revenues are collected. He pointed out that the county came very close to depleting the fund balance last year – and finance director Kelly Belknap confirmed that this had been the case.

He highlighted McDaniel’s comment that the county should add another $4 million to its general fund reserves. McDaniel elaborated, saying that when she and other county staff meet with bond rating agencies in Chicago – for refinancing or other issues – the county has to meet a litmus test related to its solvency. One thing those agencies look at is the county’s general fund balance. If the amount were closer to 20% of the total general fund budget, the county would likely get a better bond rating. “We’re close to the top, but we’re not at the top,” she said. So the county needs to look at what can be done to “fatten up that fund,” she said.

Washtenaw County commissioner Conan Smith.

Smith replied by saying that the county needs to do a comparative analysis of an incrementally better bond rating and what that rating might deliver – in terms of interest rate percentages on the debt that the county holds – and weigh that against the county’s ability to spend those reserves on community challenges instead. If adding to the reserves in turn improves the county’s bond rating, but only saves a few million dollars in interest, “then it may not be worth it,” he said. The money might be better spent on core community challenges, Smith said, so it’s important to be smart about that comparative analysis. Solid bond ratings and cheap interest are important over the long term, but the county shouldn’t shortchange more short-term needs, he said.

McDaniel added that it’s also important to look at the interest that can be earned from investing the reserves.

Smith said that over the years there have been calls for increasing the fund balance. He noted that former commissioner Jeff Irwin, who’s now a state House representative for District 53, advocated for a fund balance closer to 16%. At the same time, the county’s bond counsel has told the board that the county won’t be penalized as long as the fund balance is above 10%. “There’s a lot of give between 10 and 20,” Smith said, “and that’s where this board really needs to weigh in, on what to do with that money.”

Smith’s next line of questioning related to expense projections for personnel. A 0% salary increase applies to most, but not all, of the 17 bargaining units representing county employees. He clarified with McDaniel that contracts for employees represented by the Police Officers Association of Michigan (POAM) and the Command Officers Association of Michigan (COAM) don’t expire until the end of 2015. Tina Gavalier, the county’s finance analyst, said that expense projections factor in a 1% salary increase for POAM and COAM members in both 2013 and 2014.

Smith also highlighted the fact that the projections don’t include unpaid furlough days or banked leave days, but that it might be something that the administration could request for future labor agreements. When McDaniel affirmed that it wasn’t included in these budget projections, Smith replied “I think we’re still going to need it.” He said he appreciated that the projections were conservative both on the revenue side as well as in the county’s ability to reduce expenditures.

Felicia Brabec asked about the timeline for the state’s decision to eliminate the personal property tax (PPT). McDaniel replied that the PPT will be fully eliminated by 2016, but it will be incrementally eliminated for some businesses starting in 2014. There will be minimal impact in 2013, but the county will start seeing cuts in PPT in 2014. She suggested that Raman Patel, the county’s equalization director, could give the board more information on that at a working session.

Andy LaBarre asked whether McDaniel had any thoughts about the impact of a possible default at the federal level, and how that might affect the county. McDaniel said that if there are federal cutbacks, the county would have to scramble and the board would need to give direction about how to address the situation. For example, if a program is primarily funded through federal grants and that funding is cut, would the board want to authorize general fund dollars to support the program? If so, what other programs would be cut instead?

Rabhi noted that the Washtenaw Urban County – a consortium of local governments – receives federal funding for low-income housing and other programs. The staff have done projections, in the context of possible federal sequestration (automatic cuts), and determined that the best case scenario would be a 10% decrease in funding for local programs. “The worst case scenario could be a lot worse,” he said.

Brabec observed that even if sequestration doesn’t occur, federal and state money could be cut. So departments that bring in a lot of those funds need to start thinking about that possibility as well, she said.

Outcome: This was a non-voting agenda item, and no action was taken.

Commissioner Appointments

Each year, commissioners are appointed to various boards, commissions and committees – 43 in total. These appointments are made with nominations by the board chair, and a vote of the full board.

This year, board chair Yousef Rabhi scheduled an appointments caucus immediately prior to the start of the board’s Jan. 16 meeting to hash out details. Commissioners had sent him their preferences beforehand. The caucus was attended most commissioners, with the exception of Dan Smith and Ronnie Peterson. Kent Martinez-Kratz left the caucus early due to a family emergency.

The group generally reached consensus on their appointments. One exception was on appointments to the county parks & recreation commission. Dan Smith has served for the past two years, and had told Rabhi that it was the only appointment he really wanted. However, Conan Smith – who previously had served on the parks & rec commission before his tenure as board chair in 2011-2012 – now wanted to return to the position. Rabhi decided to appoint Conan Smith and reappoint Rolland Sizemore Jr. to WCPARC.

In addition to their general interest in a particular appointment, commissioners’ preferences sometimes were dictated by the time of day or day of the week when these boards or commissions meet. This was especially a factor for the commissioners who have full-time jobs, or jobs that are less flexible in allowing them to take time off during the day.

Commissioner Appointments: Stipends

Related to appointments, the biggest change this year is how commissioners will be compensated for the work on boards, committees and commissions. In the past few years, commissioners have been able to tap a $3,500 “flex” account from which they could seek mileage reimbursements and per diem payments for meetings that qualified for extra compensation. The payments required that commissioners submit forms to the county clerk’s office, requesting per diems or mileage reimbursements.

Chart showing tentative 2013 county commissioner stipend payments.

At their Dec. 5, 2012 meeting, commissioners approved replacing per diem payments with stipends, effective Jan. 1, 2013. Commissioners had previously debated the issue at their Nov. 7, 2012 meeting, giving the increase initial approval at that time.

The stipends are based on the number of boards, committees and commissions on which a commissioner serves, and the number of meetings that commissioners are expected to attend. Stipend payments range from $50 per year for groups that meet only 1-2 times annually, up to $1,000 for groups that meet more than 24 times. No stipends are paid for groups that meet only sporadically or on an as-needed basis.

In addition, commissioners are paid a base salary of $15,750. The leadership positions – board chair Yousef Rabhi; chair of the ways & means committee, Felicia Brabec; and chair of the board’s working session, Andy LaBarre – are paid an additional $3,000 annually. The board vice chair, Alicia Ping, receives an additional $1,000 annually.

Commissioners can continue to request reimbursement for mileage to authorized meetings. Commissioners also receive fringe benefits, including $1,163 that the county pays into a retirement account for each commissioner, as well as payment of 50% of health care insurance if the commissioner chooses to obtain health care through the county as a part-time employee.

For additional background on commissioner compensation – including a previous controversy related to the per diem payments – see Chronicle coverage: “Compensation Change for County Board?”

Here’s a summary of appointments for each commissioner [.pdf of 2013 preliminary appointments listing] [.pdf of final appointments resolution]:

• Kent Martinez-Kratz (D-District 1): Coalition for Action Remediation of Dioxane (CARD) ($300); Health Emergency Response Coalition ($100); Local Emergency Planning Committee ($100); Police Services Steering Committee ($300). Total appointments: 4 ($800).
• Dan Smith (R-District 2): Economic Development Corp. ($0); Emergency Telephone District Board ($0); Local Development Finance Authority – Superior Township ($0); Michigan Township Association ($0); Retirement Commission (WCERS) ($300); Space Plan Committee ($150). Total appointments: 6 ($450).
• Alicia Ping (R-District 3): Economic Development Corp. ($0); Emergency Telephone District Board ($0); Local Development Finance Authority – Saline ($0); Police Services Steering Committee ($300); Public Safety & Justice Oversight Committee ($0). Total appointments: 5 ($300).
• Felicia Brabec (D-District 4): Community Action Board ($150); Emergency Telephone District Board ($0); Literacy Coalition ($100); Sustainable Revenue for Supportive Housing Services Task Force ($100); Washtenaw County/City of Ann Arbor Community Corrections Advisory Board ($100). Total appointments: 5 ($550).
• Rolland Sizemore Jr. (D-District 5): Accommodations Ordinance Commission ($150); Community Action Board ($150); Detroit Region Aerotropolis ($100); Emergency Medical Services Commission ($100); Homeland Security Taskforce ($150); Local Development Finance Authority – Augusta Township ($0); Local Development Finance Authority – Ypsilanti Township ($50); Parks & Recreation Commission ($300); River Raisin Watershed Council (TBD); Road Commission ($500); Space Plan Committee ($150); Workforce Development Board ($150). Total appointments: 12 ($1,800).
• Ronnie Peterson (D-District 6): No appointments.
• Andy LaBarre (D-District 7): Area Agency on Aging 1-B ($250); Community Collaborative of Washtenaw County (formerly Human Services Collaborative Council) ($50); Southeastern Michigan Council of Governments (SEMCOG) ($250); Washtenaw Metro Alliance ($0); Washtenaw Urban County ($300). Total appointments: 4 ($550).
• Yousef Rabhi (D-District 8): Agricultural Lands Preservation Advisory Committee ($300); Brownfield Redevelopment Authority ($300); Criminal Justice Community Collaborative ($100); Drainage Board ($300); Emergency Telephone District Board ($0); Head Start Policy Council ($150); Community Collaborative of Washtenaw County (formerly Human Services Collaborative Council) ($50); Public Safety & Justice Oversight Committee ($0); Public Works Board ($300); Solid Waste Consortium ($300); Southeastern Michigan Council of Governments (SEMCOG) ($250); Washtenaw Area Transportation Policy Study Committee (WATS) ($300); Washtenaw County Food Policy Council ($100); Washtenaw Metro Alliance ($0); Washtenaw Urban County ($300). Total appointments: 14 ($2,700).
• Conan Smith (D-District 9): Drainage Board ($300); Environmental Health Code Appeals Board/Public Health Advisory Committee ($300); Washtenaw County Parks & Recreation Commission ($300); Retirement Commission (WCERS) ($300); Sustainable Revenue for Supportive Housing Services Task Force ($100). Total appointments: 5 ($1,300).

Commissioners have the option of waiving their stipends by giving written notice to the county clerk. Otherwise, starting in February the stipend payments will be automatically pro-rated, aggregated and paid out biweekly as part of a commissioner’s paycheck. The payments are made based on the assumption that commissioners will attend the meetings for boards, commissions and committees to which they’ve been appointed.

Rules related to attendance are laid out in the county board’s rules & regulations, which were approved at the board’s Jan. 2, 2013 meeting. In part, the rules state:

Habitual non‐attendance of Commissioners at meetings to which they have been appointed shall be reported to the Chair of the Board. If a member is absent three consecutive times without a reasonable excuse, he or she will be considered as having vacated his or her seat and a new Commissioner shall be appointed by the Chair of the Board and confirmed by a majority vote of the Board members elected and serving.

However, no one is responsible for monitoring a commissioner’s attendance to these meetings. Their attendance will be recorded as part of the meeting minutes for each board, committee or commission, but those minutes are not always easily accessible or provided in a timely way. Rabhi told The Chronicle that he is committed to ensuring that minutes for all of these groups will be made available.

Outcome: The commission unanimously approved various appointments for commissioners. Dan Smith and Kent Martinez-Kratz were absent.

After the vote Rabhi thanked commissioners, saying he put a lot of time and thought into the decisions, and he didn’t want anyone to take it personally if they didn’t get the appointment that they had requested.

Other Appointments

In addition to commissioner appointments, the board was asked to appoint members to the county’s workforce development board and food policy council.

Four nominations were made to the 15-member Washtenaw food policy council, all for terms ending Dec. 31, 2014: Amanda Edmonds, William Alt, Nicole Miller, and Patti Smith. The goal of the council is to support local small and mid-sized farmers by fostering policies that encourage local food purchasing and production. Formation of the council was approved by the county board at its March 21, 2012 meeting.

Nominated for reappointment was Scott Menzel to serve on the county’s workforce development board, which provides oversight of various job training programs and services. Menzel, whose previous term expired on Dec. 31, 2012, is superintendent of the Washtenaw Intermediate School District (WISD). His new term runs through Dec. 31, 2015.

Outcome: All appointments were approved unanimously, without discussion.

Homeland Security Grants

Three agenda items related to homeland security grants were on the Jan. 16 agenda.

The county board was asked to authorize a change in fiduciary for homeland security grants. The Southeast Michigan Urban Area Security Initiative (UASI) board oversees homeland security funding and policy for this region. The UASI has named Macomb County as regional fiduciary. Previously, Oakland County held that designation. The change requires that Washtenaw County sign a new inter-local fiduciary agreement with Macomb County before any funds from previously awarded grants can be distributed.

Marc Breckenridge, the county’s director of emergency management.

The county is receiving $816,713 in 2011 federal homeland security grant funds, for a period through May 30, 2014. The emergency services division of the county sheriff’s office has identified 10 projects to be funded with the grant, which will also help pay for three employees in that division. Allocations include $106,948 for the Washtenaw Metro SWAT Team; $87,500 for outdoor warning sirens; $82,000 for a vehicle and equipment for the Washtenaw County Hazardous Materials Response Team; and $75,000 for the Washtenaw County Road Commission to buy mobile, portable, and control station radios.

An additional $308,202 from a separate 2012 homeland security grant – for a period through May 31, 2014 – will fund a new standby power generator for the road commission ($150,000) and additional outdoor warning sirens ($125,202), among other projects.

According to a staff memo, Washtenaw County has received about $8.29 million in homeland security grants since 2001.

Homeland Security Grants: Board Discussion

Marc Breckenridge, the county’s director of emergency management, was asked to explain why the approval of these grants was happening at this time. He told commissioners it was a little complicated, and that the delays in part related to a decision by the Southeast Michigan Urban Area Security Initiative (UASI) board to change fiduciary from Oakland County to Macomb County. Some of the other counties in the UASI didn’t think that Oakland was doing a good job, he said. So the grants had to be rewritten and signed off by Macomb County, before the funding could be rolled out to the individual jurisdictions.

Outcome: All grants were approved unanimously.

Grant for After-School Program

County commissioners were asked to support an application for a $20,000 grant to fund expansion of an after-school program called “Telling It” in the West Willow and MacArthur Boulevard housing developments, low-income neighborhoods on the east side of Washtenaw County. [.pdf of grant application]

From left: Washtenaw County sheriff Jerry Clayton and county commissioner Rolland Sizemore Jr.

According to a staff memo, the Telling It program focuses on developing creative writing and literacy skills for at-risk youth. It would support an effort to fight gang-related activity – specifically, the dozen or so “cliques” in the Ypsilanti/Willow Run area. The memo defines cliques as gangs “without bylaws, or a code of ethics, ultimately heightening the threat. Criminal behavior is viewed as a rite of passage as youth longing to belong to something in some areas where they are being offered very little positive influence during the school year. The Sheriff’s Office has recognized the need to provide after-school enrichment programs that are not purely sports based.”

One of the main concerns in West Willow is an underground culture of “fight clubs,” according to the sheriff’s office – where teenage boys promote fighting between teenage girls, with the fights videotaped and uploaded to YouTube.

The grant application is unusual in that it’s the first time a county unit has sought funding through the coordinated funding pilot program, which was designed to support human services more effectively in this community. The coordinated funding is a partnership of the county, the city of Ann Arbor, the United Way of Washtenaw County, the Washtenaw Urban County, and the Ann Arbor Area Community Foundation.

The process has three parts: planning/coordination, program operations, and capacity-building. The approach targets six priority areas, and identifies lead agencies for each area: (1) housing and homelessness – Washtenaw Housing Alliance; (2) aging – Blueprint for Aging; (3) school-aged youth – Washtenaw Alliance for Children and Youth; (4) children birth to six – Success by Six; (5) health – Washtenaw Health Plan; and (6) hunger relief – Food Gatherers.

The grant application for Telling It would help pay for four program facilitators, a program director, and a psychotherapist to serve as a training consultant. It would fall under the coordinated funding category of capacity building.

Commissioner Conan Smith had previously raised some concerns about using the coordinated funding program, which was designed to support local nonprofits, to pay for a county-sponsored initiative. He has said that if it’s important to the county, the county should find a way to pay for it without using money that’s meant for outside agencies.

Outcome: Initial approval was granted unanimously. A final vote is expected on Feb. 6.

Job Training Grants

Three items on the Jan. 16 agenda related to an initial vote on funding for three workforce development programs – totaling about $1.35 million. The programs are overseen by the county office of community and economic development (OCED), which manages the local Michigan Works! office.

The grants include $1.16 million in federal funding for Partnership. Accountability. Training. Hope. (PATH), an orientation and job placement program for people who are applying for or receiving welfare assistance. The program was previously called Jobs, Education and Training (JET).

The county board also was asked to give initial authorization to a $111,750 increase in federal grant funding for the Workforce Investment Act (WIA) Dislocated Worker program. The additional funds will increase the program’s budget from $801,669 to $913,419. The program provides training for unemployed workers as well as on-the-job training for employees who need additional skills.

The third grant is $84,783 for the Food Assistance Employment and Training program, to provide job training for people who are receiving food assistance.

Outcome: Without discussion, authorization for the three grants was given initial approval. A final vote is expected at the board’s Feb. 6 meeting.

Communications & Commentary

During the evening there were multiple opportunities for communications from the administration and commissioners, as well as public commentary. Here are some highlights.

Communications & Commentary: Pure Michigan and Right-to-Work

Ronnie Peterson brought up the issue of the county’s contribution to support the promotion of tourism in this area, in collaboration with the state.

By way of background, the county collects a 5% excise tax from hotels, motels, bed & breakfasts and other small accommodations businesses, which is then distributed to the Ann Arbor and Ypsilanti convention & visitors bureaus and used to promote tourism and convention business.

The county keeps a portion of those tax revenues to pay for the cost of collection and enforcement. On Nov. 18, 2009, the board approved a five-year agreement with the CVBs, from 2010 through 2014, that increased the county’s share of the accommodation tax revenues from 5% to 10%.

At the board’s Sept. 21, 2011 meeting, commissioners amended the county’s contract with the CVBs to address 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.

At its meeting on Feb. 15, 2012, the county drew on those excess administrative funds, voting to allocate $200,000 to help fund a Pure Michigan campaign focused on the Ann Arbor area. At the time, more than $350,000 had accumulated in the administrative fund from the county’s share of the accommodation tax revenues.

On Jan. 16, Petersen said he had utmost respect for the local CVBs, but he was concerned about what the county might be contributing to the state’s Pure Michigan campaign, and how that money was being spent to promote the new right-to-work law. The county funds are designated to promote local tourism, Peterson said, and “I’m hoping our local money is not being spent for another purpose.”

He was referring to a controversy over full page “Pure Michigan” advertisement in the Jan. 8, 2013 issue of the Wall Street Journal, paid for by the Michigan Economic Development Corp. (MEDC). The ad in part touted the fact that Michigan is now a right-to-work state. Gov. Rick Snyder, a Republican who signed the legislation late last year, has criticized the ad.

Seven of the nine county commissioners – including Peterson – are Democrats, and opposed the right-to-work legislation. At their Jan. 3, 2013 working session, the board discussed the impact of right-to-work on the county government’s union employees, and explored possible responses.

Communications & Commentary: RTA

Conan Smith reported that Gov. Rick Snyder had appointed Paul Hillegonds, senior vice president of corporate affairs at DTE Energy, to chair the new southeast Michigan regional transit authority, which includes Washtenaw County. Smith said that it’s a non-voting position, but an important one. DTE’s main offices are in Detroit, but Hillegonds spends a lot of time in Ann Arbor, Smith said, adding that Hillegonds will likely be keenly interested in how those two communities are connected.

Smith noted that Hillegonds had served as speaker of the Michigan House of Representatives at a time when there was a 55/55 partisan split, describing the period as genial and productive. Hillegonds is a strong consensus builder, Smith said, and will be highly effective as RTA chair. [Link to a Jan. 17 WDET interview with Hillegonds about the RTA appointment.]

By way of background, Smith has been a strong advocate for the RTA, both as executive director of the Michigan Suburbs Alliance and as chair of the county board in 2011 and 2012. Specifically, he advocated for the inclusion of Washtenaw County in the authority, which also includes the city of Detroit and counties of Wayne, Macomb and Oakland.

His position has not been shared by the majority of elected officials on the county board or the Ann Arbor city council. On Nov. 7, 2012, the Washtenaw County board – which Smith chaired at the time – brought forward a resolution rescinding its previous support for Washtenaw County’s inclusion in the RTA. [.pdf of resolution to rescind support of the RTA]

And on Dec. 10, 2012, the Ann Arbor city council unanimously passed a resolution requesting that the state legislature amend the law to exclude Washtenaw County from the initial area of the RTA. The Ypsilanti city council is expected to consider a similar resolution at its Feb. 5 meeting. That amendment is something that state representative Jeff Irwin (D-53) has indicated to The Chronicle that he’ll be working on in the 2013 legislative session.

Gov. Rick Snyder signed the legislation into law in December 2012, giving each jurisdiction 90 days to make appointments to the RTA board. In Washtenaw County, those appointments must be made by the county board chair. Because Smith’s term as chair was ending on Dec. 31, 2012 – and because he wanted to make the RTA appointments himself – he pushed through an accelerated application and interview process.

Interviews with five finalists were held on Dec. 27, with three of those finalists participating via Skype. Smith announced his selection in an email sent on Dec. 31 just before 5 p.m., appointing Liz Gerber and Richard “Murph” Murphy. Gerber lives in Ann Arbor and is a professor at the University of Michigan Ford School of Public Policy. Murphy is an Ypsilanti resident and programs director for the Michigan Suburbs Alliance, the organization that Smith leads.

For additional background, including actions taken to address conflict-of-interest issues because Murphy is an employee of Smith’s, see Chronicle coverage: “Gerber, Murphy Named to Transit Board.”

Communications & Commentary: Public Commentary

Only one speaker, Thomas Partridge, addressed commissioners during the time set aside for public commentary. He criticized Republican Gov. Rick Snyder, saying that Snyder’s state-of-the-state address – which was being given at the same time as the county board meeting – was certain to contain bad news for the state and the county. He described Snyder as a bully with an unending appetite to destroy longstanding liberties and rights of Michigan residents, including the right to collective bargaining.

Present: Felicia Brabec, Andy LaBarre, Ronnie Peterson, Alicia Ping, Yousef Rabhi, Rolland Sizemore Jr., Conan Smith.

Absent: Kent Martinez-Kratz, Dan Smith.

Next regular board meeting: Wednesday, Feb. 6, 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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Called ”Seeds for Change: Growing Prosperity in Ypsilanti,” the project is intended to provide job training and placement to unemployed workers interested in agricultural employment, and to offer shared commercial kitchen space and business support to local agri-business entrepreneurs, according to a staff memo. The initiative will also encourage local entities – including governments, universities, hospitals, and other partners – to buy products made from people in this program. Products will be available for purchase with food stamps, to address the nutritional needs of low-income residents and expand the market for locally-produced products.

The project will initially rely on existing county staff, including workforce development resources, as well as local Dept. of Human Services support and possible other public funding, which has not yet been specified. Additional funding from state and federal sources will be needed, according to the staff memo, and the project will seek private grants and volunteer support.

Possible partners include Zingerman’s Community of Businesses, Food Gatherers, Food Systems Economic Partnership, Growing Hope, Think Local First, two local food co-ops, St. Joseph Mercy Hospital and University of Michigan Hospital, local school systems, University of Michigan, Eastern Michigan University, Washtenaw Community College, local working farms and farmers’ markets.

This brief was filed from the county administration building at 220 N. Main St. A more detailed report will follow : [link]

Washtenaw County employment applications ask about felony convictions.

Mary King, coordinator of the Michigan Prisoner ReEntry Initiative of Washtenaw County, told commissioners how the MPRI is attempting to reduce the county’s high prisoner recidivism rate – a problem dating back several years. She also urged them to consider eliminating a question on the county’s employment forms that asks about an applicant’s felony history. Such questions can be barriers to employment, she said, and the biggest cause of parole failure is lack of a job.

Leaders of two county departments – Mary Jo Callan of the Office of Community Development, and Patricia Denig of Employment Training & Community Services (ETCS) – gave an update on how some of the county’s $22.69 million in federal stimulus funds are being spent. Those two departments alone have received $13.22 million for a wide range of programs, from job training to low-income housing.

Federal Stimulus Spending in Washtenaw

Mary Jo Callan, director of the joint county/city of Ann Arbor Office of Community Development, started with an overview of federal stimulus funds, noting that $321 million had been awarded to entities in Washtenaw County through the American Recovery and Reinvestment Act. About half of that has been awarded to the University of Michigan, she said. Washtenaw County government has received $22.69 million.

Thursday’s presentation focused on the $13.22 million received by the OCD and ETCS departments, in the categories of family support, community building and workforce development.

Stimulus: Funding for Family Support Services

Several programs have been funded by $1.067 million to support families, said Patricia Denig, interim executive director for ETCS. Of that, the largest amount –  $925,193 – was awarded through the Community Service Block Grant program. Funds have been used to hire additional ETCS staff, increase existing services – like the county’s emergency financial assistance programs and foster grandparent program – and expand efforts like the Washtenaw Literacy Coalition, the Homelessness Prevention and Rapid Re-Housing program, and microloans offered by the Center for Empowerment and Economic Development (CEED).

Senior nutrition services received $61,554 and has expanded the number of meals served by 20,000 to a total of 245,000 meals over 15 months, delivered to 2,200 people in the county. Delivery has been expanded to areas not served before, Denig said, and Saturday delivery was added.

The county’s emergency food assistance program received $17,000 in stimulus funding, Denig said. For this program, the county partners with the nonprofit Food Gatherers, which supplies local food pantries. The federal funding is helping provide emergency food for an additional 1,400 households annually.

Finally, the county received $46,285 for human services via the Community Development Block Grant program, which is administered by the Washtenaw Urban County. These funds were allocated in two ways, Denig said: 1) to Northfield Human Services to provide transportation for low-income residents, and 2) to the Fair Housing Center, which helps alleviate barriers for low-income residents and to advocate for those facing housing discrimination.

Stimulus: Funding for Programs to Strengthen Communities

Three programs in this category got a total of $7.578 million in federal stimulus funds, Callan told commissioners: weatherization, neighborhood stabilization and infrastructure projects.

Of that, the county’s weatherization program received $4.29 million, and 100 projects are in progress and another 70 applications have been approved. Though only about $1.8 million has been committed to projects at this point, the county has until the spring of 2012 to spend the funds, Callan said. The program has hired five new employees, trained six inspectors and has 12 contractors approved to do weatherization work.

The Neighborhood Stabilization Program (NSP) received $3.024 million to acquire foreclosed or abandoned houses. The county has worked primarily with Habitat for Humanity of Huron Valley and Community Housing Alternatives to buy 17 homes so far, Callan said. The NSP funds are also paying to demolish blighted properties in Ypsilanti – primarily in the Water Street area – and in Ypsilanti Township. And a portion of the money will be used to redevelop 144 units of rental housing at Parkview Apartments in Ypsilanti. [These funds are overseen by the Washtenaw Urban County – see Chronicle coverage: "Urban County Allocates Housing Funds"]

The remainder of the funding in this category – $262,282 – is being used for infrastructure improvements in low-income areas, including road work in Ypsilanti Township and sidewalk repair in Pittsfield Township.

Stimulus: Funding for Workforce Development

Washtenaw County received $4.578 million for workforce development programs to help dislocated workers and unemployed adults, as well as for a summer youth jobs program.

Denig said that whenever possible, the ETCS staff tries to enroll people in both the dislocated worker and adult worker programs, which received a combined $1.463 million in stimulus funding. Those funds helped pay for the training of 97 additional participants in the federal Workforce Investment Act (WIA) adult program, and an additional 189 people in the WIA program for dislocated workers – people who are transitioning to new careers after their jobs have been eliminated. These services are offered at the county’s Career Transition Center in downtown Ypsilanti, which opened last fall.

The summer youth jobs program received $1.957 million. Over 600 young people between the ages of 14-24 worked at 120 sites across the county, Denig said. The program’s goals include giving employment opportunities to youth that they might not otherwise have had, and to help develop good work habits, financial literacy and social skills. One of the program’s participants, Leslie Minor, was selected by the Michigan Works! agency as its Alumni of the Year, Denig said.

Stimulus: Challenges Faced

Callan concluded the presentation by saying they were very proud of their accomplishments and that they’d been good stewards of the money. But she also acknowledged how “extremely challenging” it has been to manage this stimulus funding. It’s an unprecedented national program that’s heavily scrutinized, and the funding comes with a lot of strings attached. Reporting requirements are very detailed – “some might say onerous,” she said – which entails considerable staff time.

Ramping up the programs is another challenge, Callan said, whether it’s hiring and training new staff for the weatherization program or finding employer partners for the summer youth jobs program. Another challenge is knowing that these are short-term dollars, she said, though demand for these services continues to grow.

One of the things that will have a lasting impact, Callan noted, is the paradigm change that’s happening between the Office of Community Development and ETCS. They’re working together to try to find the best way to provide the services they offer – it shouldn’t be the case that residents just get the services that are available from the office that they happen to enter, she said.

Callan cited weatherization as an example – those services are offered through both departments. Together, they’ve entered into a joint contract with the Clean Energy Coalition, a nonprofit that will provide training for contractors and subcontractors in energy efficiency and weatherization. Both departments will share the costs for CEC to develop the training curriculum, Callan said.

They’re committed to looking beyond departmental silos, Callan said. In general, the goal should be to collaborate and have a “permeable boundary,” within county government and throughout the community.

Stimulus: Commissioner Questions, Comments

Several commissioners had questions for Callan and Denig. Barbara Bergman asked whether there was any movement toward consolidation among nonprofits that the county worked with in the community, quipping “or is that a bad question that we’ll discuss in private?”

It’s a question that many people are asking, Callan said. Her office works with about 70 nonprofits, and those groups are trying to do things differently and collaborate more. But just like jurisdictional cooperation between local governments, it’s challenging. The Office of Community Development isn’t interested in supporting new nonprofits, she added, but that doesn’t mean they aren’t interested in new ideas and new approaches.

Responding to a question from Wes Prater, Callan clarified that the federal funding didn’t always align with the county’s own fiscal year, which runs from Jan. 1 through Dec. 31. They are rolling funds, with grants given over a minimum 15-month period. Verna McDaniel, the deputy administrator who’s been hired to replace retiring county administrator Bob Guenzel next month, said it was the county finance department’s job to account for the funds within the county’s budget.

Prater asked whether the new contractors being hired for these expanded programs are complying with the Davis Bacon Act, which requires that public works projects pay prevailing wages. It was important to have rigid enforcement of that, he said. Denig said they’ve recently hired a contractor who’s an expert in Davis Bacon, who’ll help with compliance issues. Aaron Kraft, who supervises the weatherization program, said that new contractors weren’t all familiar with Davis Bacon, so there’s been a learning curve.

Prater also asked how many of the contractors being hired are from Washtenaw County – it was important to him that those jobs stay local. Kraft said they’d get that information to him.

Mark Ouimet wanted to know whether the senior nutrition program included delivering meals to senior centers as well as the homebound. It did, Denig replied. Ouimet said that the program was important not just for the food, but for socialization as well.

Bergman asked about the senior nutrition program, too. She noted that federal and state funding for the Area Agency on Aging has been cut, and she worried about that vulnerable population. She wondered if it would be possible to use neighborhood providers for preparing meals, or whether that would run counter to public health code. Denig said the program achieves economies of scale by using one provider for food preparation, but that they can look at how to expand delivery services. The federal stimulus funds have allowed them to serve more people who’ve been on a wait list on the eastern side of the county, and to increase delivery in rural areas on the western side.

Jeff Irwin asked about a comment that Callan had made during her presentation about the Neighborhood Stabilization Program, and how it was sometimes difficult to acquire foreclosed houses because of competition from the private sector. He asked her to elaborate. The competition comes from buyers who are able to respond more quickly than the county can, she said, and who can pay more for the property. Using federal funds, the county can’t pay more than 1% below the appraised value – so the county must get an appraisal and funding together before moving forward. In contrast, some buyers can act quickly and are willing to pay cash.

Responding to a follow-up from Irwin, Callan said there are different types of buyers. Some are speculative, having faith that the market will turn. Others are acquiring the houses as rental properties. And to a lesser degree, some are actual homeowners making purchases. Irwin pointed out that on the positive side, it meant that there are people out there willing to invest.

He also asked Callan to clarify the difference between the Neighborhood Stabilization Program (NSP) and the Community Development Block Grants-Recovery (CDBG-R) program. NSP funds focus on foreclosure reclamation, Callan said, whether through demolition of blighted property or acquisition and rehab. The funds can be spent in a limited geographic region, designated by low-income population. CDBG-R is used for housing development, public instructure improvements, and to a limited degree, human services programs.

Michigan Prisoner ReEntry Initiative

Mary King, coordinator of MPRI of Washtenaw County, began her presentation by noting that Michigan spends nearly $2 billion annually for its corrections systems. It costs $30,000 to incarcerate a prisoner for a year, and $45,000 if the prisoner is mentally or physically ill. [Similar information was discussed at a recent forum on MPRI at the University of Michigan Ford School of Public Policy. See Chronicle coverage: "Panel: MPRI Transforming State Corrections"]

Washtenaw County has the highest recidivism rate in Michigan, King told commissioners  – as high as 75%, depending on whether it’s calculated over two or three years. One of the biggest factors contributing to repeat offenses is a lack of employment, she said. It’s extremely difficult for parolees to find a job, especially in this economy – and given the fact that an increasing number of employers require background checks, no matter what the job.

Nationwide, 82% of employers now do background checks, King reported, and only 12.8% will hire someone with a felony conviction. It’s ironic, she said: The very thing that would make a community safer – finding employment for parolees – is the thing that’s most frequently denied. “You could make the case that we’re actually creating the very thing that we fear.”

Because it addresses this and other problems of transitioning from prison to the community, MPRI “is a crime reduction program,” King said.

The program begins when a prisoner is incarcerated, she said, but intensifies 60 days prior to their release and continues for six months following their return to their community. Services vary, depending on need, but include help in finding housing, transportation, clothing and other basic needs. Employment training and family counseling are also available. The nonprofit Catholic Social Services is the lead agency for MPRI locally, but its steering committee includes representatives from county law enforcement and corrections, faith-based groups and other nonprofits, and former prisoners.

About 350 people each year return to Washtenaw County from prison. Of those, 32% are from Ypsilanti Township, 25% from Ann Arbor, 19.5% from Ypsilanti, 8.5% from Superior Township, 2% from Pittsfield Township and the rest from other parts of the county. Those statistics are important, King said, because the program has made a commitment to help settle former prisoners back into the communities where they previously lived.

The local program is just in its third year, so there isn’t yet data on recidivism to show MPRI’s impact. King said that other sites in the state, which have been using MPRI for a longer period, are showing roughly 30% reductions in recidivism. The goal had been a 10% reduction, she said, so it’s “beyond people’s wildest expectations.”

With employment being a major challenge, King said the program offers “juicy” incentives for employers to hire former prisoners. Employers can “try out” a worker for eight weeks at no cost – MPRI acts as the employer-of-record and pays all wages. Up to $2,400 in tax credits are available for each new hire, she said, and employees are bonded for up to $25,000.

But the biggest barrier is the felony box on an application, King said – many employers automatically discard applicants who check “yes,” regardless of skills, work ethic, or experience. ”It puts everyone into the same box, which is if you have a felony, you’re not welcome here.” Title VII of the Civil Rights Act of 1964 prohibits the rejection of all applicants with criminal records, but it happens all the time, she said.

King laid out several reasons for “banning the box.” People of color are arrested, convicted and sent to prison in disproportionate numbers, compared to the overall population, she said, and are at a disadvantage when they return to the community. The county could serve as a model for employers in other governments and the private sector – King pointed out that one of the board’s stated priorities is to “support programs which result in successful reintegration of persons who have come through the criminal justice system.” [Jason Smith, an intern with MPRI, elaborated on reasons to ban the box in an essay published by The Chronicle on Jan. 27, 2010.]

Background checks are also an issue, King said. While they should be used for certain sensitive jobs, it shouldn’t be an across-the-board practice. Often there are inaccuracies in the report, and applicants aren’t given a chance to see it or respond. If background checks are conducted and result in the applicant being denied a job, the applicant should at least be allowed to see the report and verify its accuracy, she said.

King said that MPRI is providing a template for a resolution that local governments can modify to address these issues. She encouraged commissioners to take action, saying it would level the playing field for former prisoners. In Michigan, Battle Creek was the first community to ban the box, and Kalamazoo has now done the same.

“We’re hoping that Washtenaw County might like to be third,” King said.

MPRI: Commissioner Questions, Comments

Leah Gunn recalled that the mayor of Battle Creek had come to the board and discussed that town’s experiences with eliminating the felony box. She said if it works there and in Kalamazoo, “I don’t know why it wouldn’t work here.” Former prisoners have served their time, she said, and the board should consider banning the box, especially if it helps reduce recidivism.

Barbara Bergman has previously raised the suggestion of banning the box. She commended King for getting “water from a rock,” noting that the state hadn’t kept all of its promises regarding MPRI. She said that although there should be exceptions – for example, for employees working with children – in general, eliminating the question about felony convictions is the “only humane and smart and money-saving thing to do.” The county should also require its contractors to do the same, she said.

Jeff Irwin said he wanted to get feedback from the county’s human resources staff, as well as department heads and other employees. It’s the board’s responsibility to float the idea within the organization, before acting on it. He commended King for making the suggestion, and said that reducing recidivism is key to dealing with the state’s criminal justice problem.

After King’s presentation, Diane Heidt – the county’s human resources director – told The Chronicle that currently, applicants aren’t eliminated from consideration if they’ve been convicted of a felony. And background checks aren’t conducted until after an offer has been extended, she said.

Trenda Rusher, head of Washtenaw County's Employment Training & Community Services (ETCS) department, led a joint meeting of the Workforce Development and Community Action boards on Monday. (Photos by the writer.)

The Washtenaw County department that Trenda Rusher supervises is undergoing transition, and not just because the long-time workforce development manager is retiring.

At Monday’s annual joint meeting of the two boards that oversee the county’s Employment Training & Community Services (ETCS) department, Rusher spoke of several other changes – from the dramatic growth of revenues, thanks to federal stimulus dollars, to the equally dramatic increase in demand for services, due to Michigan’s economic plight and the implosion of the auto industry.

And as Rusher departs – after nearly three decades with the county, she’s heading to Washington, D.C. to start her own consulting business and to be near her twin daughters – the new county administrator will be looking at possibly reorganizing the operations that serve as a conduit for millions of federal, state and local dollars.

Verna McDaniel, the deputy county administrator who’s expected to replace retiring administrator Bob Guenzel, spoke to ETCS staff and members of both boards on Monday, saying “we will be looking at all options.” No decisions have been made – a planning team will be meeting to lay out a strategy for evaluating what’s next, she said.

ETCS Highlights in 2009

There are 24 members of the Workforce Development Board and 17 members of the Community Action board – about half of the combined group showed up for Monday’s half-day joint meeting. They oversee, respectively, the county’s job training and community services programs that ETCS manages. ETCS director Trenda Rusher spent part of the meeting summarizing what those programs accomplished in 2009.

Stimulus funding is taking the organization’s budget from $8 million to about $20 million, Rusher said. For 2009, the ETCS budget was $13.6 million – with 96% of those funds coming from federal and state grants, and the rest from county appropriations. Additional federal funding has been earmarked for ETCS programs in 2010. Of the $13.6 million budget, 73% of the funds – nearly $10 million – were used for workforce development programs.

The largest program getting stimulus funding through the American Recovery and Reinvestment Act is the county’s weatherization initiative. Last spring, the county was awarded just over $4 million to weatherize up to 600 homes over an 18-month period. [See Chronicle coverage: "County Gets $4.1 million Weatherization Grant"] Previously, the local weatherization program, which serves  low- to moderate-income families, had funding for about 100 homes annually, Rusher said.

Some members of the county’s board of commissioners have questioned why more homes haven’t been weatherized by this point. Commissioner Ken Schwartz in particular has voiced concerns about the delay, and at the board’s Dec. 2, 2009 meeting, he asked again for an update. From Chronicle coverage of that meeting:

Patricia Denig, director of planning and operations for the county’s Employment Training & Community Services (ETCS) department, said that the federal program was initially held up because the U.S. Department of Energy – the granting agency – decided to conduct a national prevailing wage survey, and those results weren’t released until August. In September, ETCS issued a request for proposals (RFP) to get bids from local contractors to provide weatherization services. Bids were received and ETCS was ready to sign contracts in early November, Denig said, but local labor organizations raised concerns about whether those bids had been reviewed by the the county’s Construction Unity Board, known as CUB. Now, ETCS was awaiting a decision from CUB.

In a follow-up this week, Curtis Hedger, the county’s corporation counsel, told The Chronicle that those contracts are now being processed without CUB approval. Wage guidelines for the weatherization contractors, which are lower than what CUB would like, are mandated by the federal government. On Monday, Rusher told members of the ETCS oversight boards that “we’re working like crazy” to get the weatherization requests processed. The grant funding must be used by Sept. 30, 2010 March 31, 2012.

Juanita House, right, holds her daughter Olivia Hudson while working on a group exercise at the joint meeting of the county's Workforce Development and Community Action boards. House is a member of the Community Action Board. In the background: Aaron Kraft, who supervises the ETCS weatherization program.

The weatherization program is one of many community services programs that are managed by ETCS. Among its programs, the department provides emergency food assistance and a summer food program for low-income children, health insurance for low-income county residents through the Michigan Enrolls program, and several services for senior citizens, including meals served in community centers and a foster grandparent program.

At Monday’s meeting, Rusher highlighted several workforce programs as well, including the county’s Access Points initiative. A federal program, it provides training to volunteers at faith-based organizations and community centers, which then act as satellite sites for providing employment resources. [.pdf file of Access Point sites and contact information]

There are 36 Access Points in Washtenaw County, Rusher said – more than in the rest of Michigan combined, and the highest number for any other participating region in the country. “They’re like gerbils,” she said. “They just keep growing.” Gov. Jennifer Granholm last year came to a breakfast for Access Point participants, to thank them for “putting Michigan on the map,” Rusher said.

Another highlight of the year was the opening in November of the Career Transition Center, located in downtown Ypsilanti on the second floor of the KeyBank Building at 301 W. Michigan Ave. Monday’s board meeting was held in a conference room in the basement of that building.

Since opening, thousands of people have walked through the center’s doors, Rusher told board members. She cited a head count of over 6,000 people, but then noted that those numbers include duplicative counts, with some people coming to the center multiple times.

George Toles, who works for ETCS corporate and business services, fires up a demo of a practice interview program at the Career Transition Center in Ypsilanti. A webcam mounted on top of the computer monitor records the interviewee. Counselors at the center then help critique the responses. The equipment is also used for employers off-site to conduct actual job interviews.

On Monday, board members attending the half-day joint meeting spent part of the time touring the center, which includes conference rooms, a computer training lab, interview rooms – each with a phone and computer – and a large area with computers and Internet access available for conducting job searches. There’s also a functional gas fireplace in the lobby.

The center serves as an entry point for people accessing the state’s unemployment services, via the Michigan Works! program, as well as a resource for people hoping to change careers. ETCS operates another employment center in Ypsilanti as well, at 304 Harriet St.

While both centers offer classes and help in identifying resources for job seekers, the newer Career Transition Center encounters more people who have never previously been unemployed. It’s often an emotional experience, said Rhonda Williams, one of the career counselors on staff. “We have to be Dr. Phil sometimes,” she told The Chronicle.

Update on the Future of ETCS

In reassuring ETCS staff about the upcoming transition, there was an element of Dr. Phil in the remarks of Verna McDaniel, deputy county administrator, who spoke to staff and board members on Monday,  The department employs 22 county staff, plus about 65 contract employees.

McDaniel is the sole candidate being considered at this point to replace county administrator Bob Guenzel, who also dropped by the Monday event. She was interviewed by the county board of commissioners on Thursday – an interview that Guenzel characterized in his remarks on Monday as “superb.”

McDaniel told the ETCS crowd that she didn’t want to presume she’d be the next administrator, but she said that county administration would work closely with the leadership of the boards and with staff in the coming weeks. She pledged to provide frequent updates about plans for the department.

Verna McDaniel, right, talks with Jenny Bivens, workforce development manager, at the county's Career Transition Center in downtown Ypsilanti. McDaniel, deputy county administrator, spoke to ETCS staff and the joint meeting of the Workforce Development and Community Action boards on Monday.

Whoever is appointed by the board of commissioners on Feb. 3 will have their hands full, McDaniel said. To help with that transition, she and Guenzel have formed a team to work on a smooth hand-off between administrators and to lay some groundwork for the future. There are several opportunities, she said, given the retirements of both Rusher and Peter Ballios, the county’s finance director.

They’ll be looking at all options, she said, but they haven’t made any decisions “so don’t feel we have secrets or anything like that.” There’s no need to panic, she added, urging people not to speculate or spread rumors about what might be happening.

What they’ll be doing is laying out a process by which to make decisions, she said. They’ll be seeking staff and board input, she added: “You’re going to be seeing a lot of me.”

On the board level, some reorganization is already occurring: the Workforce Development and Community Action boards have combined their leadership into a joint executive committee, co-chaired by Keith Peters and Mike DuRussel.

But other possible changes aren’t yet in place. In response to questions from ETCS staff, McDaniel said they’ll have a plan for the ETCS leadership transition by March 31. Rusher, whose retirement took effect at the end of 2009, has agreed to stay in her position through the end of March. McDaniel said they don’t yet know if a search for Rusher’s replacement will be local or national. The board of commissioners has asked the county administration to look at “other permutations of leadership,” she said.

When one staff member stated that the department needs an interim leader after March, McDaniel agreed. She said they didn’t want to rush into naming an interim, but that by the time Rusher leaves, “I’m almost certain that will be necessary.”

Commissioners also discussed their plan for this Saturday’s retreat, which will focus on setting budget priorities.

Stimulus funds for local workforce

At their April 15 meeting, commissioners will be asked to approve the receipt of $3,638,720 from the federal stimulus act, to be managed by the county’s Employment Training and Community Services (ETCS) department. Nearly $2 million of that will be spent on funding between 600 to 1,000 jobs this summer for teens and young adults from low-income families.

Trenda Rusher, ETCS director, is contacting schools and existing programs that serve the county’s youth, trying to get the word out about the availability of funding for jobs, according to McDaniel. The No. 1 priority is to find placements for eligible youth, she said.

In addition, $855,634 is allocated for services targeting dislocated workers, such as people laid off from the auto industry, and $461,622 will fund other adult workforce programs run by ETCS. These programs are currently funded by nearly $4 million in federal money awarded last summer via the state’s No Worker Left Behind program. Out of the stimulus funding, $363,872 will be used to cover administrative costs.

Annual equalization report

Next Wednesday’s meeting will also include some much-anticipated financial news: Raman Patel, the county’s equalization director, will present the board with an annual equalization report, which tells how much money the county will be collecting in taxes this year. The report is crucial because the county is already four months into its current fiscal year, and if tax revenues turn out to be lower than projected, the board will have to make cuts in order to balance the current budget. This possibility has been discussed frequently over the past few months, as one challenge in a generally bleak budget outlook.

April 11 budget retreat

Grappling with those budget challenges is the focus of Saturday’s retreat, held from 9 a.m. until 1 p.m. at the county’s Rolling Hills Park Lodge. The retreat is open to the public and will be facilitated by Scot Graden, superintendent of Saline Area Schools.

Commissioner Kristin Judge, who’s taking the lead in organizing the retreat, said the goal is to emerge with a set of budget priorities, which will help guide the board as they make what will inevitably be difficult choices to slash the budget. Of its roughly $100 million general fund budget, the county could face deficits of up to $28 million for 2010-11, unless revenues are higher than projected or the board makes deep cuts in expenses. County administrator Bob Guenzel has described this as the worst financial situation he’s seen in his 36 years with the county.

Judge said they’d start the retreat by revisiting the county’s “guiding principles,” which are listed on a framed poster in the conference room where Wednesday’s briefing was held. They are:

1. Ensure long term fiscal stability for the County.
2. Reduce the cost of conducting the County’s business.
3. Enhance customer service.
4. Provide the necessary knowledge, skills and resources to County employees to carry out these principles.
5. Ensure adequate provision of mandated services.
6. Focus on the root causes of problems that affect the quality of life of County citizens by aggressively pursuing prevention strategies
7. Provide leadership on intragovernmental, intergovernmental and intersectoral cooperation and collaboration aimed at improving services to County citizens.

Judge said they’ll use those principles to help identify general budget priorities. They won’t talk about cuts to specific programs or departments, she said – that will come later, during their regular board meetings. Rather, discussion at the retreat will aim at developing broad priorities that can help guide the board and administration when the time comes to make specific recommendations about budget cuts.

Commissioner Mark Ouimet asked what success would look like at the end of the retreat. “If we come out of there alive,” quipped Rolland Sizemore Jr., the board chair. Judge said she hopes they’ll emerge with 7 to 14 budget priorities. Commissioner Jeff Irwin said success or failure depends on how broadly they cast their priorities – too broad, he said, and it won’t provide meaningful guidance to the administration. “It’s more art than science,” he said.

Ouimet asked who was attending. Of the 11 commissioners, Judge said Conan Smith can’t attend, and it’s unclear whether commissioners Barbara Levin Bergman or Ronnie Peterson will attend, either.

Sizemore said that even if they all don’t attend, the retreat will be useful. “We may not get as far as Kristin thinks we’re going to get, but it’s a start.”

Judge also said she hoped the board would come together as a group and talk through some of their feelings about their priorities for the county. Ouimet asked what she meant by “feelings,” and Judge allowed that she was using her “counselor talk” (she has a masters degree in counseling), and that he could think of it as opinions. However, she said, part of the point is to bond as a board, since they’ll have some tough decisions to make together. “I think we need to do some of that warm and fuzzy stuff,” she said. “So come with a positive attitude!”

During the public comment part of Wednesday’s briefing, Caryette Fenner, president of Local AFSCME 2733, said that even if the board emerged with just one priority, that would give some guidance. Fenner represents the largest union of county workers – with more than 850 members – and said she plans to attend Saturday’s retreat as an observer. Irwin said he’d be interested in hearing her thoughts at the retreat, when there will be time for public comment as well.

Misc.: Feel-good reports

As board chair, Sizemore said he and Ouimet, who serves as vice chair, wanted to do more positive things at future board meetings, since they’re dealing with such negative budget news at the Ways & Means Committee. [Ways & Means meetings, chaired by commissioner Conan Smith, immediately precede board meetings. Much of the board's work is conducted during these sessions, which are typically longer than the regular board meetings that follow.] Sizemore asked staff to come up with some “fast, feel-good reports” that they could present to the board. Deputy county administrator Verna McDaniel and Joanna Bidlack, management analyst with the county administrator’s office, said they’d work on that.

A graduate receives congratulations and a chef's jacket from Scott Roubeck, Special Projects Coordinator for Food Gatherers' Community Kitchen

The Culinary Arts Training Class is part of the jobs training program that’s integrated into the Food Gatherers Community Kitchen. The Community Kitchen serves meals nightly at the Delonis Center, the homeless shelter on Huron Street on the periphery of downtown Ann Arbor. During their 120 hours of instruction, which accumulates in twice-weekly sessions, students in the training class are responsible for preparing the Monday night Community Kitchen meal.

Missy Orge, Director of Outreach and Training at Food Gatherers, emphasized in her remarks to the assembly that the training class is not easy. Although the most recent class started with 10 students, all of which completed the course, the class from the spring dwindled from eight to four students by the course’s conclusion.

Culinary Arts graduates made the appetizers served at the graduation reception – including this carved fruit centerpiece.

Based on the quality of the appetizers on offer at the reception – which were prepared by graduates of the course – it was not hard to believe that some of the Monday night dinners they prepared during the training course earned applause from the diners.

In addition to their diplomas, graduates received a chef’s jacket and a “golden spatula.” Although the spatula is likely ornamental, the gleaming white new jackets are fully functional. And the goal of the program is for graduates to find a place in the food industry where they could get those jackets dirty.

Among local establishments where graduates have found employment in the past are: People’s Food Co-Op, Zingerman’s Roadhouse, Zingerman’s Deli, Zingerman’s Next Door, Stucchi’s and Washtenaw Community College.

Currently, graduates are employed by Sodexho (at Borders World Headquarters), Subway, Kroger, Zingerman’s Deli, Red Hot Lovers, McDonald’s, Little Caesar’s, UM Hospital, Avalon Housing, Food Gatherers.

Gradautes of the 6th and 7th classes of the Food Gatherers' Culinary Arts Training Class. The graduation reception was held at the Delonis Center.

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