Comparing the FY25 revenue sharing proposals
As the state budget for fiscal 2025 heads to the Legislature’s Conference Committee, differing proposals for county revenue sharing from the governor and legislative chambers will be on the table. Each plan aims to address the fiscal needs of counties with varying methodologies and financial implications.
As seen in the chart, the three proposals have significant differences.
The governor favors a traditional approach of ongoing and one-time increases still subject to the annual appropriations process.
The House wishes to follow the MAC-supported Revenue Sharing Trust Fund model built on a sales tax carve-out, thereby allowing for a steady increase in funding and ensuring a link between economic activity and county funding.
The Senate takes the Revenue Sharing Trust Fund model further with a larger chunk of the sales tax and an inverse relationship to taxable value, meaning counties with lower taxable values receive a larger share of the increase. This results in a $52.5 million increase, with the average county seeing a boost of approximately 20 percent.
The Senate’s proposal, which MAC favors, aims to provide more substantial financial support, particularly to counties with lower taxable values, thereby addressing disparities and promoting equitable distribution of resources.
To see how the different approaches affect your county, click here.
The challenge now before the Conference Committee, armed with final spending data from the Consensus Revenue Estimating Conference (see item below), lies in balancing the ambitious increases proposed by the Senate with the more conservative approaches of the governor and House, all while ensuring the final agreement meets the varied needs of counties.
For more information on this issue, contact Deena Bosworth at bosworth@micounties.org.
State has $14.26 billion to use for FY25 General Fund
Michigan’s legislators will have $236 million more available for the fiscal 2025 General Fund budget than was expected in January.
In its final session before the Legislature completes its 2025 budget work, the Consensus Revenue Estimating Conference (CREC) concluded there will be a net amount of $14.26 billion to spend for the General Fund, state spending plan that covers many county-related functions.
This figure is up $235.6 million from the CREC projection from January 2024.
These conferences are required by statute to determine the state of Michigan’s financial resources as lawmakers draft annual budgets.
“With Michigan’s revenue outlook appearing to be stable if not growing slightly, we hope to see the manifestation of growth to continue to benefit not just the state, and infrastructure, but with counties as well through revenue sharing,” said MAC’s Deena Bosworth.
Notable information from the May 17 presentation on Michigan’s economy and budget:
- The state would enter FY25 with a “rainy day” reserve fund of $2.1 billion, after substantial growth in interest earnings. As recently as FY19, the reserve fund held only $1.15 billion.
- CREC continues to show the state falling further below the revenue limit imposed by the Headlee Amendment, which was adopted in the 1970s. For the next two fiscal years, the state could raise an additional $12 billion ― essentially a second state General Fund ― and still comply with Headlee’s restrictions.
- The housing affordability outlook is not good, but, conversely, that is positive news for businesses involved in home construction that are trying to fill unmet demand.
- Michigan employment is above pre-pandemic levels.
- Inflation in Michigan is “turning slowly,” with housing the major issue there.
For more information on MAC’s budget advocacy, contact Deena Bosworth at bosworth@micounties.org.
Policy Summit will focus on financial issues with opioids, roads, jails
The 2024 MAC Policy Summit on June 25 will feature briefings on Medicaid jail policies, the latest news on using opioid settlement dollars, a potentially massive shift in how Michigan funds its roads and an overview of counties’ long-term fiscal health.
Registration is now open for the session, with a $75 fee covering either the virtual option or attendance in-person at the AC Hotel Lansing just off U.S. 127 in the capital city.
The event is designed to allow county leaders to get to and from Lansing in a reasonable schedule. However, MAC has secured a room block at the AC Hotel (3160 E. Michigan Ave., Lansing) for $149 per night.
Agenda
9 a.m. – 9:40 a.m.: Registration and Continental Breakfast
9:40 a.m. – 10:40 a.m.: Medicaid Inmate Exclusion Policy and the Medicaid Section 1115 Waiver
- Presenters: Robert Sheehan, CEO, Community Mental Health Association of Michigan, and Samantha Gibson, governmental affairs associate, MAC
10:45 a.m. – 11:45 a.m.: Opioid Settlement Funds: Year in Review
- Presenter: Amy Dolinky, technical adviser, opioid settlement funds planning and capacity building, MAC
11:45 a.m. – 12:30 p.m.: Lunch
12:30 p.m. – 1:30 p.m.: Why and How to Conduct a Road Usage Charge Pilot in Michigan
- Presenter: Baruch Feigenbaum, senior managing director of transportation policy, Reason Foundation
1:30 p.m. – 2:30 p.m.: Beyond the Numbers: Assessing the Resilience of Michigan County Governments’ Finances
- Presenter: Stephanie Leiser, lead, Michigan Local Government Fiscal Health Project at the Center for Local, State, and Urban Policy
For more details on the presentations, the hotel and parking tips, visit MAC’s events page.
Participants in the summit will earn 1 credit hour toward certification in MAC’s County Commissioner Academy.
Legislator remarks, energy law featured in new MAC videos
The Legislative Panel was held on May 1 at the 2024 Legislative Conference. (Rod Sanford Photography)
MAC has added new videos to its YouTube playlist from the 2024 Michigan Counties Legislative Conference in Lansing, April 29-May 1:
- Energy Siting Law Workshop (April 30) led by Sarah Mills of the University of Michigan
- Basics of Public Act 233
- What’s a county to do under the act?
- Pros and cons of available options
- Legislative Panel held on May 1
- Senate Minority Leader Aric Nesbitt on indigent defense reform
- Comments on public safety funding
- Rep. John Fitzgerald on road funding
- Rep. Graham Filler on partisan dynamics in the House
Presentations and other documents from the conference can be found on MAC’s website.
Prospects for huge revenue sharing gain detailed in podcast
Legislators continue to grind on a fiscal 2025 state budget, a document that could yield a massive reform in county revenue sharing, a Podcast 83 team member detailed this week in a new episode.
While the governor, the House and the Senate all have proposed increases in revenue sharing, it’s the Senate approach that is most attractive, said Governmental Affairs Director Deena Bosworth.
Like the House, the Senate is pursuing MAC’s trust fund proposal of carving out a portion of the state sales tax for use in dedicated fund for counties.
“(The Senate) wants to do 9.1 percent of the state sales tax for cities, villages, townships and counties. And they are not doing the public safety percentage (which the House is pursuing),” Bosworth said. “So, Sen. (John) Cherry made the recommendation that we’re going to take a bigger piece of the sales tax, which is a $52.5 million increase. He says whatever your county got in fiscal year 24 is absolutely the minimum. And then that additional $52.5 million that he is recommending for this year is going to get distributed out to counties based on an inverse relationship to their taxable value.”
In other Capitol news:
- Samantha Gibson explained MAC’s opposition to a bill on prisoners earning release credits that could disrupt the state’s “Truth in Sentencing” rules.
- Madeline Fata explained the huge burdens that could fall on county clerks and other local election officials if the current version of the so-called “Michigan Voting Rights Act” legislation were to be adopted.
View the full episode, recorded on May 13, by clicking here.
Previous episodes can be seen at MAC’s YouTube Channel.
And you always can find details about Podcast 83 on the MAC website.
Register now for next ‘Chart Chat’ webinar from Michigan Treasury
Registration is open for Treasury’s next “Chart Chat” webinar on Thursday, May 30. The session will run from 2 p.m. to 3 p.m. Eastern.
The Chart Chat webinar series provides local governments with critical information related to accounting and auditing topics, measuring local government fiscal health, and other important updates from Treasury.
Topics covered in this session will include:
- Corrective Action Plans
- Numbered Letters Update
- Budget Projection Tool
- Uniform Actuarial Assumptions (PA 202 of 2017)
- Headlee Overview
Presentations and recordings from this webinar, along with previous webinars, can be found at TREASURY – BLGSS Learning Center. For support related to Treasury’s local government services, visit the TREASURY – Contact Information.
Staff picks
- Community ordinances are clashing with Michigan’s drug harm reduction strategy (Detroit Free Press)
- Michigan has plenty of jobs. Too bad workers find so many boring, study finds (Bridge Michigan)
- State backs collaborative approach to affordable housing project (Rural Innovation Exchange)
- Indiana judge opens door for new eatery, finding `tacos and burritos are Mexican-style sandwiches’ (Associated Press)
A package to allow certain prisoners to earn productivity credits to reduce their sentence was introduced in the Senate this week.
Legislation to expand drug treatment court availability was voted out of the House this week. For several months, it remained on the House floor, needing a majority to be reinstated after the special elections in mid-April to receive enough votes.
Crucial legislation to promote court funding reform was concurred by the House on Thursday and sent to the governor for her signature.
The 
Lansing-based consulting firm Health Management Associates has released a 
A key part of funding for trial courts in Michigan is again secure for another 30 months after Gov. Gretchen Whitmer signed 
Election bills that would impose sweeping new duties on local governments received a hearing in a Senate committee this week. Known collectively as the “Michigan Voting Rights Act,” 
Legislation to secure key trial court funding has passed out of the House, and recently introduced Senate bills on the subject received a hearing in the Senate Judiciary Committee this week.
A 10-bill package designed to restrict ― but not eliminate ― local governments’ power to regulate short term-rentals, while allowing for a 6 percent excise tax was the subject of the House Local Government Committee meeting this week. 
Democrats again will hold a 56-54 edge in the Michigan House of Representatives after two special elections held Tuesday.
Learn your options about social media posting in April 22 webinar
Hosted by the Local Government Legal Center (LGLC), legal experts will lead a discussion of the Lindke v. Freed decision in which the Supreme Court set forth the test for when local government officials are considered “state actors” for the purposes of the First Amendment when they post on social media.
Click here to register. The webinar begins at 2 p.m. Eastern.
The LGLC is a coalition of national local government organizations formed in 2023 by the National Association of Counties (NACo), National League of Cities (NLC), International Municipal Lawyers Association (IMLA) and Government Finance Officers Association (GFOA) to provide education to local governments regarding the Supreme Court and its impact on local governments and local officials and to advocate for local government positions at the Supreme Court in appropriate cases.
Capital improvements are subject of April 22 ‘Fiscally Ready’ session
Recurring annual expenses are simple to budget, but repair and replacement of big-ticket items can be much more difficult. A Capital Improvement Program (CIP) will help your local government organize those major projects and forecast the expenses to make long-term planning simpler. This session will cover the basics of a CIP, best practices, and give participants a chance to share techniques that have worked for their community, as well as policies, procedures, and accounting for capital asset management and planning.
Click here to register for the event, which runs from 3 p.m. to 4:30 p.m. Eastern.
For more information about Fiscally Ready Communities, please check out the Treasury Fiscally Ready Communities webpage. This webpage includes Treasury’s 32-page Fiscally Ready Communities Best Practices document, which we encourage all local officials to review.
If you have any questions, email TreasLocalGov@michigan.gov with the subject line “Fiscally Ready.”
Legislative Update 4-12-24
MAC news, Blog, Events, Legislative, MACSC, Marketing, NACo
Fee authority for courts likely to expire without legislative intervention
House Bill 5392, by Rep. Sarah Lightner (R-Jackson), extends a quickly approaching May 1, 2024, expiration (“sunset”) of the authority of trial courts to levy fees that constitute a key part of their operational funding.
However, HB 5392 is “tie-barred” to a separate measure through actions of the House Judiciary Committee. The companion bill, HB 5534, by Rep. Kelly Breen (D-Oakland), outlines a plan for the State Court Administrative Office to conduct data collection on certain trial court costs and revenue sources and provide a report to the Legislature with proposals to implement the Trial Court Funding Commission’s recommendations from 2019. A “tie-bar” means both bills must advance together.
MAC sees broad support for the sunset extension, but the prospects for the companion bill are much less clear. If, for political reasons, the legislation is delayed and not signed before May 1, a funding gap will result.
As we approach May 1, and the bills have yet to receive a vote, it is increasing likely fee authority for courts will expire. Courts stand to lose nearly $50 million in operational funding annually if HB 5392 does not pass. This loss of revenue, if not covered by the state, will fall on the counties to cover.
With the likelihood for the fee authority to expire, the State Court Administrative Office sent a memo to courts last week, encouraging them to work with counties to establish a back-up funding plan.
While we are expecting the authority to expire on May 1, MAC anticipates the bills will still be signed in May. MAC is advocating for state funding to be appropriated to counties in the event a funding gap is created, to the tune of $1 million per week.
MAC supports both HB 5392 and 5534, with our priority to move HB 5392 and extend the funding authority prior to May 1.
MAC is asking members to take immediate action to urge quick legislative passage. Please visit MAC’s advocacy center to share your support for HBs 5392 and 5534 with your elected officials. The legislative window is closing, as there are limited days for the Legislature to advance the bills to the governor prior to May 1.
For more information on this issue, contact Samantha Gibson at gibson@micounties.org.
Executive Director Stephan Currie with official County Government Month resolution.
Legislative resolution recognizes ‘County Government Month’
April has been designated National County Government Month in Michigan after the Senate approved a resolution this week.
Resolution 105, by Sens. Jeff Irwin (D-Washtenaw) and Sylvia Santana (D-Wayne), was requested by MAC as part of National County Government Month festivities led by the National Association of Counties. Irwin is a former Washtenaw County commissioner and a member of MAC’s County Caucus.
This recognition is an opportunity to highlight the hard work of county officials and the multitude of services county governments provide. Since 1991, the National Association of Counties has pushed for all states to celebrate counties throughout the month of April.
Impact on counties of federal PFAS rule as yet unclear
The federal government has issued new drinking water standards pertaining to Per- and Polyfluoroalkyl Substances (PFAS). The U.S. Environmental Protection Agency (EPA) announced this week the “first-ever national, legally enforceable drinking water standard.”
There are 66,000 public drinking water systems in the U.S. and the EPA estimates that between 6 percent and 10 percent of those systems will need to take action to meet the new standards. The federal government has made available $1 billion in funding to test and treat both private and public water supplies for PFAS.
Michigan has been a national leader in PFAS testing and treatment since at least 2017 with the creation of the Michigan PFAS Action Response Team (MPART). While MPART has already sampled every public drinking water system in the state, it is not yet publicly known how many, if any, will be impacted by the new standards.
For more information on MAC’s environmental policy work, contact Madeline Fata at fata@micounties.org.
Trial court legislation still stuck in Lansing calendar, Podcast 83 reports
“So, at this time, unfortunately, we’re still held up on trial court funding legislation in the House,” Gibson said. “What’s becoming increasingly likely, and what I think will end up happening, is once the two vacant house seats are filled after those special elections, April 16, maybe. So, let’s say April 23 or 24, maybe the House will vote the bills out, then the Senate is going to have a hearing on some Senate versions of those bills on the 18th. So, whenever the House bills get over there, they can just get sent right to the Senate floor. … We probably will be looking at a week or so after May 1 for implementation of the new sunset.”
In that case, MAC will be pressing the state to reimburse counties for the approximately $1 million per week that will be lost in operating revenue, as it did the last time the fee authority expired in the fall of 2022.
Also reviewed in this week’s episode are:
The potential effects of legislation just signed by Gov. Gretchen Whitmer on hotel/motel tax authority for Kent and seven other counties.
The timing for the passage of the state’s FY25 budget this spring with the statewide election calendar looming.
View the full episode, recorded on April 8, by clicking here.
Previous episodes can be seen at MAC’s YouTube Channel.
And you always can find details about Podcast 83 on the MAC website.
April 16 webinar set on harm reduction and opioid treatment meds
Many people have negative reactions when they hear “methadone” or “needle exchange,” but these are two of several science-backed ways to improve health and prevent deaths among people who use drugs. This presentation provides a broad overview of two kinds of interventions that science shows can help people who use drugs: medications for opioid use disorder (MOUD), sch as methadone, and harm reduction, which includes services like needle and syringe programs. We will explain how these interventions work, show evidence of their effectiveness, and address common misconceptions about them.
Register to attend here.
The series is hosted by the Michigan Department of Health and Human Services, in partnership with Michigan State University, University of Michigan and Wayne State University as part of their Technical Assistance Collaborative.
For more information on opioid settlements are technical assistance, contact Amy Dolinky at dolinky@micounties.org.
New tool provides ‘one-stop shop’ for your grant searches
The MI Funding Hub is a new effort led by the Michigan Municipal League and state Department of Labor and Economic Opportunity to develop one-stop shop for grants. The hub provides open access to a searchable database of federal and state funding sources as well as philanthropic foundations that can be queried based on type of applicant and funding category as funding becomes available.
The hub provides a monthly newsletter announcing new grants, webinars and grant readiness training.
Local officials also have free access to hands-on technical assistance from a team of experts across many fields through the MI Funding Hub helpdesk. After receiving your helpdesk request form, the team will schedule a meeting to discuss funding needs, answer funding questions, direct applicants to appropriate funding sources and coach you on developing application strategies.
Services provided through the MI Funding Hub do not include writing grant applications, but MAC’s CoProPlus subsidiary does have a pre-negotiated grant writing contract available.
Get started by watching a recorded introductory webinar.
Use cyber courses to bolster your county’s defenses
In early April, Grand Traverse County was hit with a “spear phishing” attack through its email system. The county’s IT team was able to ward off the assault, but this is yet another reminder that digital security is a fundamental duty for any county government in the 21st century.
The NACo Cyberattack Simulation is a reality-based simulation that prepares county risk leaders for cyberattacks by assessing counties’ current state of readiness and identifying gaps. This simulation will help attendees evaluate their incident response procedures and tools and guide them in developing a detailed cyberattack response strategy.
Upcoming sessions will focus on:
The NACo Cyberattack Simulation is designed for cybersecurity managers, their teams and those responsible for risk defense, protection, and recovery, including HR, policy management, finance, public safety and emergency services. It requires 30-60 minutes per day for one week. Activities can be completed on the participants’ schedule and accessed online anywhere.
The retail price of the one week Cyberattack Simulation is $795 per enrollee; however, the simulations are fully sponsored for all counties, bringing your price down to ZERO.
To learn more or enroll, email moderator@pdaleadership.com.
Electronic options now offered on payments from state
The LCSA issues thousands of checks each year to local governments and a number of these remain uncashed. Issuing physical checks means there’s a greater chance of those funds being lost.
While we do work with the local units to try to locate checks and/or reissue them, if necessary, this process can take months.
As a result, we are commencing an electronic payment outreach program with the goal of ensuring local governments receive payments required under state statute(s). Our partners at Plante Moran are launching an outreach effort to contact local units of government directly to set up electronic payment.
LCSA offers two options for electronic deposit: through an ACH or through a Michigan Class participant-to-participant transfer.
If you would like to begin the simple process of converting to electronic payment, email us at electronicpayment@lcsami.gov. For questions, please contact Samantha Harkins, ceo@michiganmsa.org.
Opioid settlement metrics tool released
OSPRI was developed by a working group from Vital Strategies and Johns Hopkins Bloomberg School of Public Health with additional contributions from the Pew Charitable Trusts, Shatterproof, the CDC Foundation, and the National Association of Counties.
For additional information or technical assistance with monitoring investments, contact Amy Dolinky at dolinky@micounties.org.