State’s General Fund resources will dip in fiscal 2027, finance panel reports
Legislators and Gov. Gretchen Whitmer can plan on just under $14.1 billion to be available for the state’s General Fund (GF) in fiscal year 2027, a state panel determined on Friday.
The Consensus Revenue Estimating Conference projects net GF for FY27 at $14.074 billion, which would be about $60 million less than what the state is spending in FY26.
In its written analysis prior to the panel’s meeting, the House Fiscal Agency stated: “While there is some relatively mild weakening in revenues for economic reasons, the large downward revisions (from the May 2025 estimates) are primarily due to tax policy changes involving motor fuels with respect to the FY 2024-25 road plan and tax policy changes associated with state-level OBBBA coupling on income tax deductions for overtime, tips, and Tier 3 Social Security.”
In a presentation on the national and Michigan economies before the panel on Friday, Daniil Manaenkov of the University of Michigan noted:
- Stock market effects are still propelling a good chunk of consumption.
- The pass through of tariffs to consumers has been “quite muted.”
- The unemployment rate is holding and wages are rising.
- Real retail spending is still growing.
“People are upset about everything but are still spending,” Manaenkov said.
For more information about MAC’s budget advocacy, contact Deena Bosworth at bosworth@micounties.org.
Savi webinar details benefit option for Michigan counties
“There are 45 million Americans who carry a total of about $1.8 trillion of student debt. And again, for many borrowers, it’s not just about the monthly payment. This payment affects their ability to save, to contribute to retirement or even pay for everyday essentials. So, 63 percent of these 45 million borrowers report having difficulty making their monthly student loan payment.”
So explained Tony Raffa of the student-debt solution firm Savi during a Jan. 13 webinar co-hosted by MAC.
Savi is working with the National Association of Counties and MAC to extend student-debt management expertise to county employees and beyond.
In detailing Savi’s 99 percent acceptance rate for Public Service Loan Forgiveness (PSLF) applications, Raffa noted that Michigan has more than $58 billion in student loan debt and a “very large” delinquency rate.
Savi, which is now partnered with six Michigan counties, has saved Michigan residents more than $38 million through their expertise in navigating more than 150 loan programs.
To watch the webinar recording, click on the image above or click here.
To view the slides from the webinar, click here.
And for any questions you may have about how Savi can help your county create a program, contact John Nelson at johnnelson@bysavi.com.
Michigan Treasury outlines timeline for county payments
Counties will see some state payments show up at adjusted times in 2026, the Michigan Department of Treasury announced this week.
Treasury officials said that revenue sharing payments will continue to be issued every other month, consistent with the traditional schedule. However, the taxable value payment portion of county revenue sharing will be distributed twice this year, in February and June, rather than being spread evenly across the year.
In addition, public safety funds allocated in the fiscal 2026 budget will be provided to counties in a single payment scheduled for June.
Counties that qualify for prosecutor-related funding can expect those payments in the spring, according to the department. Eligibility requirements remain unchanged.
Treasury also addressed changes to the distribution of liquor tax revenues that support the Convention Facilities Fund, a portion of which is passed through to counties for substance abuse programs. These payments will not be made in January as originally planned due to a cash flow issue. By statute, liquor tax revenues must first be applied to debt service, and the revenues have not yet been remitted to the Department of Treasury.
As a result, counties will receive Convention Facilities Fund-related payments in April, July and October this year. Treasury emphasized that the total amount counties are expected to receive will remain the same, even though the funds will be distributed in three payments instead of four.
The Department of Treasury said it will continue to communicate with counties as payments are issued and encouraged local officials to factor the revised timelines into their budget planning.
For more information on this issue, contact Deena Bosworth at bosworth@micounties.org.
Podcast 83: Legal maneuvering continues on mental health, House spending
As the Legislature prepares its 2026 work schedule, MAC’s Podcast 83 team reviewed several continuing issues from 2025 in its latest episode.
In the wake of a Court of Claims ruling on a mental health revamp planned by the state, eyes now have turned to the Michigan Department of Health and Human Services (MDHHS), the lead agency on the project, said MAC’s Jimmy Johnson.
“So … what happens next? Jan. 29 is the deadline that MDHHS has to appeal this,” Johnson explained, so we’re going to be watching that very closely. We could see some timelines change. … There are some rules that are impermissible with Michigan law, so now MDHHS is going to have to come up with those fixes, bring it to the judge and the judge is going to have to concur.”
“There’s a lot of moving parts on that, and timeframe issues, especially when you start looking at, again, an election year and an administration change coming at the end of this year,” replied host Steve Currie. “You know, this Oct. 1 deadline that was originally put out there or the changeover … if you start putting out a new RFP, we’re already halfway through January, so that extends things out. It’ll be interesting to see what the department does at this point, with regards to this change.”
Governmental Affairs Director Deena Bosworth reviewed how an Attorney General’s opinion has reversed a major change in state spending sought by House Speaker Matt Hall (R-Kalamazoo): “The Attorney General’s opinion came out and said, no, (the House action) is unconstitutional; there is a separation of powers issue that once an appropriations bill passes through the House and the Senate and gets signed by the governor, then it’s up to the administration to administer this. It’s now a law.
“Now, all of a sudden, we’ve got an issue where the speaker is, going to appeal that decision … and we think there’s going to be a hearing yet at the end of this week,” she added.
MAC’s Samantha Gibson gave a summary of key legislative dates in coming weeks as work will begin on the state’s fiscal year 2027 budget.
“The first (key date) is this Friday. The Consensus Revenue Estimating Conference, also known as CREC, will be Jan. 16,” Gibson reported. “Following that is the governor’s budget presentation, which maybe will be Feb. 12, so we’ll have more insight as to what the governor’s priorities are. …
“And beyond that, we have State of the State coming up on Feb. 25, so even more insight into the governor’s priorities going into 2026,” she added.
To learn more, watch the full episode, recorded on Jan. 13, by clicking here or on the image above.
House approves bill for Antrim County judgeship
A bill to create the Antrim County 99th District court was passed by the House on Thursday. House Bill 4749, by Rep. John Roth (R-Grand Traverse), would allow the Antrim County Probate Judge to serve as both probate and district judge.
Currently, the 86th District Court operates under an intercounty operating agreement between Antrim, Grand Traverse, and Leelanau Counties. Under HB 4749, Antrim County residents would be better served with the creation of a 99th District Court and have closer, more immediate access to court resources.
MAC supports this legislation.
The bill moves to the Senate for consideration.
For more information on this issue, contact Samantha Gibson at gibson@micounties.org.
MSU Extension expands its learning options for local government leaders in 2026
County and other local officials will have a greater array of learning opportunities in the coming year, MSU Extension announced this month.
Local Government Policy and Practice is a new MSUE webinar series featuring MSU Extension units and centers that offer insights, tools, and research to help public sector leaders strengthen their communities. The webinar will take place monthly throughout 2026 on Zoom. Upcoming webinars are listed below. Registration and more information is available at events.anr.msu.edu/msue_local/.
- February 19 – Innovations in Rural Tourism and Placemaking Through Education – The MSU Extension Tourism team will showcase how educational programming is supporting rural tourism and placemaking, strengthening Michigan communities.
- March 19 – Data Centers and Michigan’s Electric Utilities – Institute for Public Utilities Director Dr. Erik Nordman will share the latest developments regarding data center proposals and how they might affect Michigan’s electric utilities, customers, and communities.
Governing Essentials Webinar Series – is tailored for local elected and appointed officials who wish to sharpen their skills and promote good governance practices. The series covers the Open Meetings Act, fundamentals of parliamentary procedure, effective board practices and ethical public service. This 4-part series repeats in the spring and fall. Our first series kicks off on February 10 at 12:00 PM covering the Open Meetings Act. Click here for dates and to register.
- ***NEW in 2026*** – Ethical Public Service – A fourth webinar added to the series this year explores the principles of ethical public service, emphasizing transparency and accountability in governance. Participants will learn practical strategies to navigate ethical challenges in decision-making, and the effective use of bylaws and codes of conduct in board operations.
Fiscally Ready Communities – The Fiscally Ready Communities program consists of five webinars aimed at assisting communities in establishing, measuring, and maintaining policies that enhance operational and financial effectiveness. This program is a collaborative effort between MSU Extension and the Michigan Department of Treasury, offering local governments best practices in fiscal sustainability. The goal is to help communities achieve long-term fiscal health, ultimately supporting thriving local environments. Webinars are scheduled throughout 2026, with the first one on February 9 at 2PM covering Budgeting for Fiscal Sustainability. Click here for dates and to register.
MSU Extension is a MAC Affiliate and a trusted partner with MAC for more than 50 years on the widely known New Commissioner School trainings. To learn more about MAC’s educational programs, click here.
MAC’s offices to observe MLK Day
MAC’s offices in Lansing will be closed on Monday, Jan. 19 to observe Dr. Martin Luther King, Jr. Day. MAC will resume normal office hours at 8 a.m. on Tuesday, Jan. 20.
Learn about how the MLK holiday came to be from this review by the National Constitution Center.
Staff picks
- Time to reform the process for work project approval (Citizens Research Council of Michigan)
- Lenawee, Houghton courthouses ranked in public buildings ‘gem’ list (Lansing State Journal)
- Local democracy is strong, but rural Michigan communities are falling behind, new survey shows (Michigan Advance)
- Some dogs can expand their vocabulary by eavesdropping on their owners (Associated Press)