HomeMy WebLinkAboutResolutions - 1977.09.15 - 13410MISCELLANEOUS RESOLUTION 8180 September 15, 1977
BY: FINANCE COMMITTEE- Dennis Murphy, Vice Chairman
IN RE: CONSTITUTIONAL CHALLENGE TO FEDERAL UNEMPLOYMENT TAX PROGRAM
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairman, Ladies and Gentlemen:
WHEREAS the Federal Unemployment Compensation Amendments of 1976, Public
Law No. 94-566, require all State and local governments to pay unemployment
compensation benefits to their employees; and
WHEREAS the failure of a State or any local government to provide these
benefits automatically terminates that State's participation in the Federal-
State Unemployment Compensation Program; and
WHEREAS in response to the Federal mandate of the Unemployment Compensation
Amendment of 1976, the Michigan State Legislature has pending legislation, Senate
Bill 714 and House Bill 5086, which will require local governments to join the
Michigan Employment Security Commission on a contributing or reimbursement
basis; and
WHEREAS the severe impact of this new Federal law, conservatively estimated
at $500,000 for Oakland County and $400 million for local governments nationwide
in fiscal 1979, will aggravate rather than ease the unemployment problem among
State and local governments, actually causing more unemployment because local
governments will be forced to reduce hiring and increase layoffs to finance the
costs of these new benefits; and
WHEREAS the National Institute of Municipal Law Officers (NIML0),on behalf
of nearly one thousand (1,000) States, Cities, Counties and other local political
subdivisions, is preparing a massive law suit to challenge the constitutionality
of those provisions of the Unemployment Compensation Amendments of 1976, Public
Law No. 94-566, which force State and local governments to pay unemployment
compensation benefits to their employees; and
WHEREAS the National institute of Municipal Law Officers has established a
Federal Unemployment Compensation Tax Litigation Trust Fund for purposes of fund-
ing the expenses, legal fees, economists and other experts of the litigation
attacking the constitutionality of the Federal Unemployment Compensation Amendments,
Public Law No. 94-566; and
Dennis L. Mucpy, V14e Chairman
September 15, 1977
WHEREAS, direct participation in the suit by the County of Oakland requires,
first, a ten thousand ($10,000) dollar payment to the NIMLO Federal Unemployment
Compensation Tax Litigation Trust Fund (based on a formula according to population);
second, submission of a sworn affidavit by the County Executive's Designated Chief
Financial Officer certifying as to his estimate of the cost of this tax to the
County; third, if considered necessary by counsel, agreement by the County that this
financial officer will go and act as a witness at the preliminary injunction hearing
expected to be held in Washington, D.C. seeking a stay of the Acts pendente lite
during the more than two years the case is expected to be in the Courts before
finally being decided by the U.S. Supreme Court; and finally, submission of a letter
to the National Institute of Municipal Law Officers no later than September 15, 1977
expressing the intention of Oakland County to actively participate in the subject
litigation.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners
authorizes the National Institute of Municipal Law Officers (NTMLO) to act in
behalf of Oakland County as an active participating litigant regarding the
Constitutional challenge to the Federal Unemployment Tax Program; and
BE IT FURTHER RESOLVED that an amount not to exceed ten thousand ($10,000)
dollars be appropriated from General Fund Contingency to the non-departmental
account Unemployment Compensation Tax Litigation and paid therefrom to the NIMLO
Federal Unemployment Compensation Tax Litigation Trust Fund; and
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes
submission of a sworn affidavit by the County Executive's Designated Chief Financial
Officer certifying as to his estimate of the cost of this tax to the County; and
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes
the County Executive's Designated Chief Financial Officer to go to Washington, D.C.
and act as a witness, if requested by NIMLO, at the preliminary injunction hearing; and
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes
submission of a letter to the National [tistitute of Municipal Law Officers no later
than September 15, 1977, expressing the intention of Oakland County to actively
participate in the constitutional challenge to the Federal Unemployment Tax Program.
The Finance Committee, by Paul E. Kasper, Chairman, moves the adoption of the
foregoing resolution.
FINANCE COMMITTEE
By .„...... —Deputy Clerk
8180 September 15, 1977
Moved by Murphy supported by Roth the resolution be adopted.
Discussion followed.
AYES: Page, Pernick, Peterson, Price, Roth, Simson, Wilcox, Aaron, Daly,
DiGiovanni, Doyon, Fortino, Gorsline, Kelly, Lanni, McConnell, McDonald, Moffitt,
Montante, Moxley, Murphy. (21)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, Clerk of the County of Oakland and
having a seal, do hereby certify that I have compared the annexed copy of
...
Miscellaneous Resolution #81 .80 .. 091?-ti . by . the_OAtan.q.county..RopsAp.f_
_Commi ss.ioners . at Fhejr. Reqir.1.9_ hel d oci ,5,v-.2tqgkr..U,,.
with the original record thereof now remaining in my
office, and that it is a. true and correct transcript
therefrom, and of the whole thereof.
In Testimony Whereof, I have hereunto set my hand and
affixed the seal of said County at Pontiac, Michigan.
this. 15th day ofAeRt,p.mber
Lynn D. Allen Clerk