News

2024 Metro Act – update on 2023 distribution correction

Communities receiving Metro Act distributions received a letter dated July 27, 2023, regarding an error in the May 2023 distribution of Metro Act funding. Some of the errors were corrected during the 2023 calendar year, most of the errors were to be adjusted with the May 2024 payment. This LINK TO 2024 Metro Act PAYMENTS provides the 2024 distribution amount, 2023 correction amount, and the 2024 payment amount. Municipalities who received a correction in the 2024 payment will receive a letter in June 2024 from the LCSA detailing the correction.

2024 Metro Act Distribution

The 2024 Metro Act Distribution has been processed. Municipalities should receive ACH or Michigan Class direct deposit on or about May 31, 2024. Those municipalities who choose to be paid by check will receive their payment via mail shortly after that date.

Error in 2023 METRO Act Distribution and Corrective Plan

The purpose of this statement is to notify interested parties of an error in the distribution of the
2023 funding under the METRO Act (Metropolitan Extension Telecommunications Rights-of-Way
Oversight Act, 2002 PA 48, as amended, MCL 484.3101 to 484.3120) and the corrective plan.

The 2023 METRO Act payments were distributed to 1,754 municipalities on May 31, 2023. After
the distribution, the Local Community Stabilization Authority (“LCSA”) identified an error in the
distribution. This error is unique to the May 31, 2023 distribution, and does not apply to prior
year distributions.

The error in 2023 distributions resulted in some municipalities receiving an overpayment and
some municipalities receiving an underpayment of METRO Act funds.

Over the next few weeks, all municipalities that received an over or under payment will receive
a corrective action letter regarding their distribution. For 95% of the municipalities, the LCSA
will correct the error in next year’s payment (May 2024) with an over or under payment equal
to the error in the May 2023 payment. If any municipality that would like to request
consideration of another resolution, instructions will be provided in the corrective action letter.
For 5% of municipalities that received a very large overpayment relative to their correct
distribution, the LCSA is requesting that the overpayment be repaid to the LCSA as soon as
possible. Instructions for repayment will be provided in the corrective action letter.

The error was the result of a miscalculation of AT&T’s METRO Act fee and its application to the
various municipalities of the State. The LCSA has identified the error, unique to 2023, and has
taken action to ensure a similar error will not occur in the future.

Sincerely,

Jaymes Vettraino
Director, LCSA