NEWS

County Funding Updates: Revenue Sharing, Public Safety, and Prosecutor Grants

In a meeting with officials from the Michigan Department of Treasury, MAC was briefed on the status of the FY 2026 payments to counties for revenue sharing, public safety and prosecutor grants. 

Revenue Sharing Payments:

The Michigan Department of Treasury has confirmed that statutory revenue sharing for counties will remain virtually unchanged from the previous fiscal year, providing counties with continued funding stability heading into FY 2025-26. However, counties should be aware of the nuances of the portion of revenue sharing based on taxable value.  This can change year to year, but not drastically.  Because Treasury receives updated taxable value data in March, those payments are issued later in the spring (May or June).

Public Safety Payments: Based on Taxable Value Data

The separate Public Safety funding line also depends on taxable value information. Treasury will receive the 2025 data in March, after which counties will have a verification period to confirm the accuracy of their taxable value figures. Counties will be able to correct any discrepancies during that period—this will be the only required reporting step.

Treasury anticipates that Public Safety disbursements will go out in May or June, once data are verified. This link will take you to a chart that gives an estimate on how much each county is likely to receive for FY 2026.

FY 2026 Public Safety County Estimated Distributions – October 3, 2025

Prosecutor Funding: Streamlined Two-Year Application

Treasury also outlined a simplified process for prosecutor grant funding, which will now operate under a single application covering both years of the current biennium.

Key details include:

Treasury will receive necessary data from the Michigan State Police in November.

Applications are expected to open in January, with Treasury offering application training sessions to assist prosecutors in identifying eligible expenses.

Prosecutors are encouraged to begin thinking about each line item in their budgets that may qualify under the grant’s parameters.

Important: These grant funds cannot supplant existing county funding for prosecutorial operations. They must be used to supplement, not replace, county support.

MAC will continue to monitor all funding streams—including statutory revenue sharing, public safety appropriations, and prosecutor grants—and will update members as timelines and application processes are finalized. For more information, please contact Deena Bosworth at bosworth@micounties.org

House Passes MOE Extension Bill

House Bill 4726, sponsored by former MAC Board President Rep. Matt Bierlein (R-Tuscola), was favorably passed by the full House this week. The legislation extends the current Medicaid Maintenance of Effort (MOE) requirement for county-owned medical care facilities and now heads to the Senate for further consideration.

The measure was approved by a vote of 97-3, with ten members excused.

As we have discussed in previous legislative updates, this legislation continues the existing MOE structure, which was set to expire at the end of this year. The current version maintains the same intent—preserving funding predictability for county medical care facilities—while allowing additional time for discussions on a permanent solution.

While this marks a positive step forward for county-owned medical care facilities, additional work remains to ensure long-term stability and clarity around future funding obligations.

MAC and the Michigan County Medical Care Facilities Council (MCMCFC) testified in support and strongly urged the bill’s passage. We’ll share additional updates as it continues through the legislative process.

For more information, contact Jimmy Johnson at Johnson@micounties.org. 

Court Ruling Restores Part of SNAP Funding

After weeks of back and forth in the courts, a federal judge has now ordered the Trump administration to release some of the federal dollars that had been held up for the Supplemental Nutrition Assistance Program (SNAP).

According to the Michigan Department of Health and Human Services (MDHHS), the state has received new directions from the USDA on how those funds will be distributed. Households that normally receive their benefits on the 3rd, 5th, or 7th of the month will get a partial payment this Saturday, November 8, with all other recipients receiving partial benefits on their regular issuance date.

MDHHS is also continuing to process new applications filed in October and early November. However, it’s still unclear whether those newly approved applicants will receive their November benefits as the state waits for further federal clarification.

While that plays out, several court cases are still pending that could affect how and when the remaining funds are released. MDHHS has said it will keep beneficiaries updated if there are any changes to payment schedules.

From a county perspective, the uncertainty around the federal funding has placed added strain on local food pantries and service organizations. The $4.5 million provided by the state to the Food Bank Council of Michigan—along with planned expansions to Double Up Food Bucks and the Hunters Feeding Families program—is intended to help offset that pressure at the local level.

Counties may see an uptick in calls from residents seeking information or assistance as partial payments begin going out this weekend. Residents with questions about their benefits are encouraged to contact their local DHHS office or check MI Bridges for updates.

For more information, contact Jimmy Johnson at Johnson@micounties.org.

Alternative Funding for Trial Courts Recommendations Released

The recommendations on alternative funding for trial courts, developed by the Alternative Funding for Trial Court Workgroup as established under Public Act 47 of 2024, have officially been released. 

The release marks the next step in addressing the ongoing challenges faced by trial courts in maintaining operations amid budgetary constraints. MAC along with other impacted stakeholders are now reviewing the report’s findings, with implementation discussions expected to begin in the coming months.

MAC has not yet taken a position on the recommendations.

For more information on this issue, contact Samantha Gibson at gibson@micounties.org. 

NACo again encourages veteran recognition with Operation Green Light

America’s counties have a long and proud history of serving our nation’s veterans, a legacy that continues to this day as we work with our federal, state and local partners to ensure that the former service members have access to the resources they need to thrive. 

Once again on Veterans Day, the National Association of Counties (NACo) and the National Association of County Veterans Service Officers (NACVSO) invite the nation’s 3,069 counties, parishes, and boroughs to join Operation Green Light and show support for veterans by lighting our buildings green from Nov. 4-11, 2025 (Article Image: Saginaw County Courthouse). By shining a green light, county governments and our residents will let veterans know that they are seen, appreciated and supported.

To show support, counties are encouraged to use this template to pass a resolution declaring your county’s participation in Operation Green Light.

Podcast 83: Tax expert: There’s no reasonable way to replace the role of property taxes in public services

Citizens in Michigan and other states who think there’s a practical way to replace the revenue brought in by property taxes are in for a rude awakening, said the author of a new report on taxing options in a special episode of Podcast 83.

Jared Walczak authored There’s No Good Way to Pay for Property Tax Repeal, a report issued by the National Tax Foundation in early October. One of its findings is: “All revenue alternatives are less conducive to economic growth than the existing property tax regime, but some transfer regimes are sharply degrowth.”

That’s of particular importance in Michigan these days as efforts continue to repeal the property tax via a ballot proposal.

“(O)ur latest paper is trying to fill what I think is an important gap, because a lot of the conversation around property tax elimination has really been half of a conversation,” Walczak told podcast host Stephan Currie. “It’s been, essentially, ‘Wouldn’t it be nice if you didn’t have to pay property taxes?’ with very little grappling with: What’s the alternative?”

In short, there are no good ones, Walczak explained.

“Statewide in Florida, you’d need about a 15.3 percent sales tax rate (to replace property taxes there) … But if you did that on a county-by-county level, it would range from 9.8 percent to 32.5 percent, based on which county it is. Because if you have a retail concentration, or you’ve got a lot of tourism, you can raise a lot of revenue. on your base. If you’re an agricultural area, if you are a bedroom community, if there’s just not a whole lot of retail activity going on in your jurisdiction, the rates necessary to offset that revenue are going to be ludicrously high, and that’s before we think about cross-border shopping. …

“Fundamentally, as unpopular as the property tax can be with some people, it’s a tax that really corresponds reasonably well to the benefits you’re receiving,” Walczak said. “It makes sense as a tax; that’s why it’s economically efficient. It’s not perfect. We can always talk about ways to make it better, and I think in an environment where assessed values have risen rapidly, and sometimes people are paying a lot more, those are conversations that are absolutely worth having.

“But it’s about improving a system, not eliminating it.”

For more analysis from Walczak and the central role played by property taxes in delivering public services, watch the full episode by clicking here or on the image above.

Leadership Academy creates special class for elected officials

Join your fellow elected county leaders from across the state and the nation in the NACo High Performance Leadership Academy, beginning this January.

This innovative, online leadership development program — created in partnership with the National Association of Counties (NACo) and General Colin Powell — is designed specifically for county officials and staff. The nearly 20,000 county graduates can attest that this program uniquely focuses on real-world leadership skills you can apply immediately in your role, including:

• Leveraging positive leadership strategies and mindset for positive outcomes
• Building high trust for high-performance teams
• Leading effectively through change and uncertainty
• Strengthening communication and collaboration across departments
• Enhancing accountability and results

The program is fully facilitated online, creating a very convenient format and accommodating your busy schedule; participants can complete the program on their own schedule while connecting with peers nationwide in an engaging, interactive environment.

More than two-thirds of counties across the country use this program to help make existing leaders better and emerging leaders ready to address the pressing issues of our day — and we hope you’ll be part of the next cohort starting in January 2026. We have secured the price of $1,000 for you (retail is $2,995).

Learn more and apply here: www.naco.org/skills 

If you have questions or would like to connect with past participants from our state, please contact Treina Smith-Slatt at treinas@pdaleadership.com.