FY27 budgets advance in House and Senate this week
This week, Michigan’s legislative subcommittees began moving budget bills for fiscal year 2027. House Speaker Matt Hall (R-Kalamazoo) has prioritized cutting $2 billion of “waste, fraud, and abuse” in the upcoming budget, making room for increased investments in other areas, particularly to county revenue sharing and public safety. These initial approvals set the stage for negotiations in the full Legislature and provide an early glimpse into the priorities shaping Michigan’s spending for the year ahead. While both chambers have begun budget work, official state revenue data will not be confirmed until the Consensus Revenue Estimating Conference on May 15.
In the Senate, several budgets were approved by the full Appropriations Committee, while the House has passed a number of its budgets out of subcommittees. Among the notable proposals, the House wants an increase to county revenue sharing of $19.8 million and a boost to county public safety revenue sharing grants by $2.5 million. However, funding for prosecutor grants would be discontinued under the current House proposals.
MAC anticipates the Senate proposing flat statutory revenue sharing for FY27, with the simultaneous passage of the Revenue Sharing Trust Fund legislation, Senate Bills 559-561, by Sens. Jeremy Moss (D-Oakland), Michael Weber (R-Oakland) and John Cherry (D-Genesee), respectively. These bills, which passed with broad, nearly unanimous bipartisan support in a previous session, would create a special fund with a dedicated revenue stream from state sales tax proceeds.
The House budget and Gov. Gretchen Whitmer’s FY27 plan align on requiring the Michigan Indigent Defense Commission (MIDC) to use currently available funds to begin developing and implementing standards for youth defense, signaling a step toward reforming representation for minors in the state’s justice system.
These budget actions reflect a mix of increased support for county governments and public safety, alongside selective reductions, as Michigan lawmakers continue to shape the state’s fiscal priorities.
For more information on the state budget, contact Deena Bosworth at bosworth@micounties.org.
House passes law enforcement rehiring bill
This week, the Michigan House approved House Bill 4471, by Rep. Mike Harris (R-Oakland) with strong bipartisan support. The bill addresses critical law enforcement staffing shortages faced by counties across Michigan by giving counties more flexibility to rehire retired sheriff’s deputies and/or prosecutors without jeopardizing their retirement benefits.
Under current law, a county retiree who returns to work for the same county may not work more than 1,000 hours in a 12-month period if they wish to continue receiving retirement benefits. HB 4471 removes that 1,000-hour cap, allowing retirees to return to county employment without losing their pension payments.
Counties across Michigan have been struggling to fill open positions in sheriff’s departments and prosecutor offices, leading to increased overtime costs, burnout and retention challenges.
By eliminating the cap, HB 4471 will allow counties in the 13 Michigan counties with independent retirement boards to rehire trained, experienced personnel without forcing retirees to choose between working part-time or forfeiting their pensions. It is important to note that this is an option for counties and not mandatory.
MAC supports the bill, which now moves to the Senate for consideration.
For more information on this issue, contact Deena Bosworth at bosworth@micounties.org.
Litigation on state plan on mental health services nears end in Court of Claims
A Michigan Court of Claims judge this week ruled an administrative revamp to how Michigan oversees local mental health services conflicts with state law in several respects.
Judge Christopher P. Yates’ announcement builds on the court’s October 2025 ruling, which allowed a Department of Health and Human Services (MDHHS) bidding process to move from the current PIHP structure to a competitive procurement model and reduce the number of PIHP service regions.
After the state’s disputed behavioral health RFP was taken off the table in February, the court said there may be little left to fight over.
The Michigan Court of Claims has concluded that the two consolidated lawsuits over the state’s behavioral health RFP are now moot because the state rescinded the RFP at issue. The ruling shows the case is likely headed for dismissal, though the court has not officially closed it yet. The court has given the parties until April 20 to file additional briefs on whether the cases should be dismissed permanently or could be brought again. The court has not given a timeline for when that final order will be issued.
For more information on this issue, contact Jimmy Johnson at Johnson@micounties.org.
Michigan House declares April as County Government Month
The Michigan House of Representatives has officially declared April 2026 as County Government Month, recognizing the essential role counties play in delivering critical public services across the state. The resolution, House Resolution 272, introduced by Rep. Matthew Bierlein (R-Tuscola) and supported by a bipartisan group of legislators, highlights the importance of county government and its direct impact on residents’ daily lives.
Since 1991, counties nationwide have used April as an opportunity to raise awareness about the services they provide and the value they bring to their communities. Michigan’s resolution aligns with this national effort, encouraging residents to better understand and engage with their county governments.
Online registration extended to April 22 for Legislative Conference
The deadline for online registration for the 2026 Michigan Counties Legislative Conference, April 27-29 in Lansing, has been extended to April 22, MAC announced today.
This year’s conference, held in conjunction with the Michigan County Medical Care Facilities Council, will again feature a format where all the presentations are plenary sessions – attendees will not miss out on any content!
Special events at the conference include:
- A buffet dinner on the opening night for mingling with colleagues and MAC’s Premier Corporate Partners
- A Legislative Reception on Tuesday evening to allow county leaders to mingle with their representatives and senators
- Presentation of certificates to members who earned “Year 1” certificates from 2025 in MAC’s County Commissioner Academy
Registration fees for the conference are $425 for a member attending the entire event. (All county officials and members of MAC Affiliates are eligible for the member rate.) Again, the deadline for online registration is now April 22.
Click here to begin your conference registration.
Once again, the DoubleTree Hotel in downtown Lansing will be the conference hub. Though the special room block expired on March 27, rooms may still be available at the conference rate by calling the hotel directly at 833-904-2206.
Podcast 83: UM researcher discusses county fiscal challenges in new report
Michigan counties are leaving the era of COVID-prompted aid with good balance sheets, says a University of Michigan researcher in a new Podcast 83 episode.
But with that federal assistance winding down, the role that property taxes play in county operations becomes ever more paramount, noted Stephane Leiser, director of the Center for Local, State and Urban Policy (CLOSUP).
Leiser was commenting on the findings in “The Fiscal Health of Local Governments,” which studied survey data from counties and other local governments for the years 2022-2024.
“Just starting with property taxes, obviously counties are generally more reliant on property taxes than other types of jurisdictions,” Leiser noted to Podcast host Stephan Currie.
“So, I’m just looking at the data in Table 11 in our report, and we find for counties at the median, they’re getting almost 60 percent of revenue from property taxes.
“There’s a pretty big range to that, though,” she continued. “It kind of ranges from about 40 percent on the low end to almost 75 percent on the high end. … So, you know, the property tax in general has pros and cons as a revenue source, right? It’s relatively stable. It’s relatively predictable. It’s easy to forecast. But it just doesn’t grow, right? It doesn’t keep up with inflation … due to Prop A and Headlee and all the constraints on revenue.
“So, you take the good with the bad when you’re relying on property taxes.”
For more details on the report, view the full episode, recorded in late March, by clicking here or on the image above.
Staff picks
- Michigan considers ‘1 buck rule’ to balance herd, better control population (Bridge Michigan)
- Trump admin moves Great Lakes Asian carp project from Illinois, Pritzker claims a ‘political stunt’ (Fox 32 Chicago)
- The everyday housing we manage to ignore (Governing)
- This Michigan county ranks no. 1 in liquor sales per person (MLive)