Groveland Twp.- The township board voted on Monday night to support a resolution requiring that a local unit of government’s ‘ability to pay? be considered when an arbitrator’s award is determined.
The resolution that takes aim at House Bill 5325 (State Representative Joe Haveman-R Holland to Amend PA 312), was in part a response to a northern Michigan community that was required to pass a millage to pay an arbitrator’s award.
Ability to pay guidelines included in the bill: award cannot exceed the total percentage of increase of the local government’s general fund revenue; prohibits the consideration of unused millage or assessment capacity; and prohibits the changing of the priorities of a local government by specifying funds previously identified for a different governmental purpose (i.e. matching funds for a road project). In addition, the bill would require the consideration of a five year economic impact on the local community of any award.
While currently there are no labor unions for the fire department in the township, Bob DePalma, township supervisor, said the board’s support was for other communities in the state.
‘We know this has been a big problem statewide for a long time,? said DePalma. ‘It has to change. We support the political concept of the resolution sent to us from Royal Oak.?
State Representative Jim Marleau -R Lake Orion, said the complex bill is at the beginning stages and will likely change many times before there’s an opportunity to vote and discuss the issue.
‘Cities, townships and villages are struggling to provide local services during these tough economic times,? he said. ‘It is understandable that they are concerned about these potential costs. Most people in our community are feeling the pressure from Michigan’s economy and the lack of jobs. This bill, if passed as it is currently, would offer some protection from higher taxes, as raising taxes would be the worst thing we could do to Michigan families and potential job providers.?
‘However, to my knowledge, no community in our area has had this type of economic impact from negotiations with local police or fire.?
‘I am watching to see what is included if and when it is passed by the House Labor Committee,? he said.