House approves $3.1 billion road plan backed by MAC
MAC’s Deena Bosworth joined Ed Noyola of the County Road Association this week in testifying for a GOP roads plan before a House committee.
The Michigan House sent a comprehensive road funding plan to the Senate this week. The plan, which MAC testified in favor of this week, is designed to provide sustainable and long-term funding for road maintenance and repair, a critical issue as Michigan faces a looming “funding cliff” when the last of the $3.5 billion in transportation bonds from 2019 is exhausted.
Here’s an overview of the proposed legislative changes and the impacts they could have on Michigan’s road funding system:
Increased motor fuel taxes
Under House Bill 4183, the state increases the taxes levied on motor fuel. Currently, gasoline and diesel are taxed at 31 cents per gallon, with annual adjustments for inflation. The new proposal, effective Oct. 1, 2025, would raise the tax to 51 cents. This rate would be further adjusted for inflation starting Jan. 1, 2026. The increased revenue would be used to fund road maintenance and infrastructure repair.
Sales tax exemptions
HBs 4180 and 4185 modify sales tax policies to allocate more funds to transportation. Starting Oct. 1, 2025, the retail sale of motor fuel and aviation fuel would be exempt from the sales tax. This exemption would free up additional revenue for road purposes. HB 4185 directs $775 million to backfill the School Aid Fund and $95 million to support constitutional revenue sharing for cities, villages and townships.
Allocating the money
HB 4187 introduces a significant shift in the distribution of revenue collected under the Corporate Income Tax and other business taxes. Starting in fiscal 2026, up to $2.2 billion would be allocated to road agencies. The distributions would work like this:
FYs 2026-2030
Total CIT Earmark $2.2 billion
- 90 percent to local road agencies:
- Neighborhood Road Fund, $375M
- County road commissions, $883M
- Cities/villages, $722M
- Total to local road agencies: $1.98 billion
- 10 percent to State Trunkline Fund: $220 million
FY 2031 and beyond
Total CIT Earmark $2.2 billion
- 90 percent to local road agencies:
- Neighborhood Road Fund, $275M
- County road commissions, $938M
- Cities/villages, $767M
- Total to local road agencies: $1.98 billion
- 10 percent to State Trunkline Fund: $220 million
Creating a Neighborhood Road Fund
HB 4230 establishes the Neighborhood Road Fund, which will receive a portion of the revenue from HB 4187. Between 2025-2029, $100 million annually would be earmarked for the repair of closed, restricted, and critical bridges, with the Local Bridge Advisory Board overseeing the spending. The remaining funds in the Neighborhood Road Fund would be distributed to county and city/village road agencies based on the proportional share of road mileage they maintain.
The distribution formula ensures equitable access to funds, with each county road commission guaranteed $100,000, and the rest divided based on the total mileage of local roads. These funds can only be used for preservation, maintenance, and preventative care of local road systems, ensuring the longevity of infrastructure and reducing future costs.
Where MAC stands
MAC testified in support of the nine-bill package this week, though also expressing caution about the effect these shifts will have on the state’s General Fund and the potential impact on revenue counties receive from the state for many operations.
For more information on this issue, contact Deena Bosworth at bosworth@micounties.org.
Podcast 83: In Lansing, all roads lead to roads right now
In their newest legislative update, MAC’s Podcast 83 team again took a deep dive into the no. 1 issue in Lansing right now: roads.
“Huge talk in Lansing is about an influx of dollars into the local road system,” said Deena Bosworth, MAC’s governmental affairs director. “The vast majority of the money that they’re talking about right now (would be) going to county roads, then to city roads and, lastly, to (the Michigan Department of Transportation).
“It’s about a $3 billion package,” Bosworth continued, “They’ve carved out a little bit of money for bridges. I want to say a little. We’re talking hundreds of millions of dollars, but money for bridges, money for county road systems, money for city road systems and then some money for actually township roads, too, so that they don’t necessarily have to come up with a big match on the design part of the projects, where county roads are or where the county is responsible for the roads.”
MAC testified in support of the package in a House committee on Tuesday, Bosworth noted, joining such groups as the Michigan Municipal League and the County Road Association in support.
“(W)e’re slightly concerned about what some of this decrease in General Fund (to finance the road investment) will mean later down the road, but again, you can’t really look a gift horse in the mouth with your $1.4 billion additional every year going into the county road system,” she said.
In other news, Jimmy Johnson gave an update on work for a permanent fix for trial court funding: “(The Legislature) created the Trial Court Funding Act of 2024, which is requiring the Supreme Court Administrative Office, under the direction and supervision of the Supreme Court, to analyze and determine these certain costs and revenues that trial courts are working on. So that sunset right now and for them to have that report completed and presented to everyone is going to be May 1, 2026.”
As part of this work, Johnson said, there is a Funding Distribution Team: “Now this group is going to be charged with recommending a plan to establish the Trial Court Fund, and that’s going to be designed to centralize all the generated revenue from the trial courts.
“Their most recent update was that they held a vote on which functions currently receive money from court assessments, and what should be considered court operations and therefore continue to receive money from court assessments via the Trial Court Fund. They were able to reach a consensus, it says, on two-thirds of the votes. Now, again, we don’t know exactly what those are. We’re basically getting kind of like a high level ‘this is what we’re discussing.’”
To view the full episode, recorded on March 18, click here.
Previous episodes can be seen at MAC’s YouTube Channel.
And you always can find details about Podcast 83 on the MAC website.
Michigan Judicial Council gives update on trial court funding
This 2023 chart shows the existing breakdown of trial court funding in Michigan.
This week, the Michigan Judicial Council released a status update from their Alternative Funding for Trial Courts implementation teams. These teams are responsible for making recommendations on a permanent funding model for trial courts. The four implementation teams are focused on:
- Operational Costs Funding Model
- Funding Distribution
- Uniform Assessments and Indigency Determination
- Collections Systems
The Operational Costs Funding Model team is tasked with developing the financial plan for Michigan’s trial courts under the new funding model. This includes determining and recommending appropriate funding levels for each trial court.
One key issue they are currently working on is whether the Maintenance of Effort (MOE) should be static or adjusted periodically, and what triggers an adjustment once the MOE is established. This is an important area to watch, as it could have a direct financial impact on counties. A complete concept paper on this issue will be finalized by the end of April.
Meanwhile, a Funding Distribution Implementation Team is responsible for recommending a plan to establish a Trial Court Fund. This fund would centralize all revenue generated by trial courts and create a process for redistributing court-generated revenue back to the courts.
In its latest update, the funding team voted on which functions currently receiving money from court assessments should continue to receive funding via the Trial Court Fund. The team reached a two-thirds consensus on all but three of the funds under consideration. These recommendations will be presented to the entire workgroup at its April meeting. For the funds the team did not reach a consensus on, they will present two options for consideration, along with arguments from both sides.
At this time, MAC does not have full details on what the Funding Distribution Team agreed or disagreed on, as we only received a general update from the workgroup. We will continue to closely follow this process.
For more information on this issue, contact Jimmy Johnson at johnson@micounties.org.
MAC launches annual Opioid Settlement Funds Survey
The Michigan Association of Counties, in partnership with Public Sector Consultants, is conducting the second annual opioid settlement county reporting survey on opioid settlement funds.
The survey allows MAC to:
- Update the Opioid Settlement Resource Center dashboard
- Understand annual reporting information on the planning for, and utilization of, opioid settlement funds
- Provide useful technical assistance for counties
Following the survey, the MAC Opioid Settlement Center dashboard will be updated and a report will be created to share about efforts taking place across the state. To see the report from the first annual opioid settlement county reporting survey, see the Michigan Opioid Settlement County Reporting: Data Overview – June 2024.
For additional information or no-cost technical assistance, contact Amy Dolinky at dolinky@micounties.org.
Celebrate National County Government Month in April
National County Government Month (NCGM), held each April, is an annual celebration of county government. Since 1991, the National Association of Counties (NACo) has encouraged counties to actively promote county roles and responsibilities in serving residents.
Through participating in NCGM, your county can:
- Champion the county workforce (Michigan counties collectively employ more than 40,000 people from Monroe to Gogebic)
- Boost civic engagement and strengthen connections between government and residents
- Raise public awareness of programs and services provided to the community
In 2024, MAC arranged with Rep. Julie Rogers, a former Kalamazoo County commissioner and MAC Board member, for a House resolution in support of NCGM.
A sample proclamation, sample press release, celebration ideas, social media resources and more can be found at https://bit.ly/CountyMonth2025
And please share your NCGM events and news with MAC by emailing Communications Director Derek Melot at melot@micounties.org.
MSHDA announces new process to reserve CDBG funds through MI Neighborhood
The Michigan State Housing Development Authority (MSHDA) is pleased to announce a new streamlined process to reserve Community Development Block Grant (CDBG) Funds. The CDBG Program, funded through MI Neighborhood, is expanding eligible activities and increasing the maximum funding amount a unit of local government can request up to $1.5 million.
Letters of Intent, the first step of the process to reserve funding, are now being accepted. CDBG funds are available to non-entitlement units of general local government — cities, towns, townships, villages, or counties not currently receiving a direct allocation of CDBG funds from HUD. A reference map can be found on our website.
MSHDA is currently accepting LOI for funding from eligible Units of General Local Government (UGLG) for proposals that meet the housing objectives of the CDBG Program. These letters will be used to establish eligible projects. If approved, grantees will receive a reservation memo reserving funds, as a formal application and CDBG compliance steps are completed.
To be considered for funding, submit a LOI form online via the MI Neighborhood CDBG page or print and mail LOI submissions (via overnight mail only) to the attention of MSHDA NDD, 735 E. Michigan Ave, Lansing, MI 48912.
To learn more about the process, MSHDA is hosting a Q&A session on April 3 at 10 a.m.:
Join the meeting
Meeting ID: 265 746 348 873
Passcode: zC6gg9Mx
All submissions must be stamped/submitted prior to 11:59 p.m. on April 17, 2025.
After submission, you may be contacted for a consultation prior to reservation of funds.
Submit any questions to MSHDA-CDBG@michigan.gov.
University uses MAC work as basis for national guidance on opioid funds
Johns Hopkins Bloomberg School of Public Health has released national transparency guidance, A Principles Quick Guide on Transparency for Opioid Settlement Fund Management. Amy Dolinky, MAC’s technical adviser on opioid settlements, worked with Hopkins to develop the guidance, which is adapted from MAC’s Transparency, Monitoring and Accountability Guidance Document.
Dolinky also authored a blog post on the new guidance highlighting why transparency matters and the importance of incorporating transparency across planning and spending efforts associated with settlement funds.
The guidance focuses on three key areas for considering transparency: planning, funding, and monitoring, and then suggests reflecting on what has been done and refining the transparency work as needed. Throughout each phase of work, three universal considerations should also be incorporated: community inclusion, conflict of interest management, and the establishment of a centralized information platform.
For more information or for technical assistance with opioid settlement planning and spending, contact Amy Dolinky at dolinky@micounties.org.
Staff picks
National County Government Month (NCGM), held each April, is an annual celebration of county government. Since 1991, the National Association of Counties (NACo) has encouraged counties to actively promote county roles and responsibilities in serving residents. 
In 
The U.S. Treasury states that the agency intends to enhance compliance checks on the obligation data submitted by counties as part of its efforts to ensure taxpayer funds are used in accordance with program requirements. Treasury intends to recoup funds obligated or expended impermissibly and to recapture funds that were not obligated by the deadline. Counties that are deemed noncompliant will receive “Information Document Requests.”
The Michigan Department of Treasury and Michigan State University Extension (MSU Extension) are reminding you of our next Fiscally Ready Communities training opportunity. This FREE training is a 90-minute webinar that’s designed to assist appointed and elected officials with entry and intermediate level budgeting knowledge.
A House Republican plan that could mean a nearly $1.5 billion boost for county road accounts received its first committee review this week.
A Republican road funding proposal that could mean a whopping $1.44 billion in new county road dollars was the focus of 
Juvenile defendants would receive help through the Michigan Indigent Defense Commission (MIDC) under a bill backed by the House Judiciary Committee this week.
Juvenile transport bill advances out of House
On Feb. 21, Michigan’s new Earned Sick Time Act went into effect. This new law allows for increased flexibility for workers to earn paid sick leave. The new reforms will be phased in over time, giving small businesses time to adjust. The Michigan Department of Labor and Economic Opportunity has developed resources to help both workers and businesses understand the changes. Visit their website to:
Michigan has been battling highly pathogenic avian influenza (HPAI), a.k.a. bird flu, for over three years. The virus has heavily impacted our backyard and commercial poultry farmers, increased the price of eggs, and, in March of 2024, crossed over into Michigan’s dairy cattle. While the virus is primarily spread by migratory wild birds, it can also be moved to new areas by people on their shoes, clothes, car tires, and more. Anyone has the potential to spread HPAI, particularly if they move between farming locations on the same day.
As your county revises its materials management plans according to Part 115, do you find yourself with more questions than answers? Address these concerns at Michigan’s largest annual recycling conference May 13-15.
NACo invites applications for 2025 Achievement Awards
Counties and municipalities 
In a preemptive move to ensure essential government functions continue in the event of a state budget impasse that lingers through the Oct. 1, 2025, start of the next fiscal year, the Michigan House of Representatives voted for a stripped-down Fiscal 2026 budget this week. The measure, 
Michigan counties stand to gain huge new resources for infrastructure under a road plan unveiled by the Republican majority in the Michigan House this week.
Could 2025 bring a major infrastructure investment and a burst of bipartisanship in Lansing? MAC’s Podcast 83 team divines the tea leaves inside of Gov. Gretchen Whitmer’s 2025 State of the State speech 
MAC continues to offer to members its “
The Michigan Department of Treasury and Michigan State University Extension will co-host the next Fiscally Ready Communities training opportunity on March 10 at 2 p.m. This FREE training is a 90-minute webinar that’s designed to assist appointed and elected officials with entry and intermediate level budgeting knowledge.
