State panel makes slight upward revision to budget resources for FY27
Michigan legislators will have slightly more money to spend out of the General Fund for the next budget year according to figures adopted by a key state panel on Friday.
The Consensus Revenue Estimating Conference determined that the fiscal 2027 net General Fund assets should be $14.17 billion for a budget year that starts Oct. 1, 2026. In January, the same panel pegged this figure at $14.07 billion, so Friday’s decision is an increase of about $100 million.
“For counties, I think the major takeaway is that General Fund/General Purpose (GF/GP) revenue forecasts were up modestly, with fiscal year 2027 revenues up by $94 million and current fiscal year 2026 revenues up $228 million in today’s revisions,” said Robert Schneider, senior research associate at the Citizens Research Council of Michigan. “That’s good news since discretionary programs like revenue sharing rely on that revenue.
“Still, even with these revisions, the budget outlook remains challenging with cost pressures both from H.R. 1 and inflationary increases for things like Medicaid and state payroll eating up a lot of revenue growth,” Schneider continued, “something that will continue for several more years. That will make it harder for the legislature and governor to find room for program increases ― including revenue sharing and other programs important to local governments.”
Among MAC’s state budget priorities for FY27 are:
- Statutory revenue sharing increases for counties
- Creation of a dedicated Revenue Sharing Trust Fund, using a secure funding stream from the state sales tax
- Assistance for counties dealing with costs associated with claims on retroactive tax foreclosure proceeds
- Filling a gap created by the state in county veteran grants in FY25
- Funding for prosecutor pay to level the playing field with funding for public defenders
- Boosting reimbursements from the state when it uses county jail beds
- Continuation of the public safety grants in the revenue sharing program, which are $11.7 million in FY26
For details on MAC’s advocacy work, visit our website or contact Deena Bosworth at bosworth@micounties.org.
Opioid settlement unallowable use list and local government spending report released
The Michigan Department of Attorney General has released two new documents of critical importance to the county-level opioid settlement work taking place across the state. The press release noting the publishing of these two documents can be found here.
The AG Office released a report detailing local government spending of settlement funds between 2023-2025. The initial report, to be updated annually, allows county governments to see where other counties, cities, and townships are spending funds. In the near future, MAC will be completing an analysis of the data to highlight key themes from spending across the state.
The AG Office has also released an unallowable use list. The list highlights expenditures that are considered “non-remediation” and should not be funded with opioid settlement funds. This list is expected to change over time, highlighting the need for ensuring expenditures align with Exhibit E, the list of allowable uses.
All opioid settlement funds are intended to be used for purposes of opioid remediation and the State-Subdivision Agreement signed between local governments and the AG requires 70 percent of funds to be used for future opioid remediation, or activities that will take place in the future.
For more information, contact Amy Dolinky at dolinky@micounties.org.
Local land use decisions compromised under housing package
The Legislature took testimony this week on a controversial package of housing bills that would significantly limit local zoning authority in a bid to increase housing construction. MAC and other local government organizations oppose the proposal, arguing the legislation would shift important land-use decisions away from local communities.
During the hearing in the House Committee on Government Operations, bill sponsors claimed the legislation would reduce barriers to development by standardizing lot sizes, dwelling sizes and zoning requirements. However, local officials, during a press conference that followed the committee, warned the bills move far beyond encouraging housing growth and instead impose statewide mandates that fail to account for local infrastructure, public safety and community planning concerns.
Officials from cities and townships repeatedly described the legislation as “developer-driven” and “one-size-fits-all.” The bills “do not allow” flexibility but instead “mandate what we can” do locally, adding that removing zoning authority from local governments also removes decision-making from residents themselves.
County leaders share similar concerns. MAC opposes the legislation because counties and local governments are best positioned to balance housing needs with infrastructure capacity, emergency services, environmental concerns and long-term community planning. Housing solutions should be developed collaboratively with communities not mandated through broad statewide zoning requirements.
For more information on this issue, contact Deena Bosworth at bosworth@micounties.org.
Bill to end time limit on court funding authority clears House committee
Legislation to end the time limit on court authority to impose costs related to trial court operations advanced from the House Judiciary Committee.
House Bill 5452, by Rep. Sarah Lightner (R-Jackson), would allow the authority for courts to assess costs reasonably related to actual court expenses in criminal cases permanently. Without legislative action, this authority would expire ― or “sunset,” in the legislative parlance ― on Dec. 31, 2026.
Since 2019, the legislature has been considering recommendations from the Trial Court Funding Commission. MAC supported the initial recommendations but subsequent work to implement some of those recommendations has fallen short of gaining support from MAC and other interest groups. Given the difficulty of implementing the recommendations, MAC supports the elimination of the sunset. The State Court Administrative Office, though, opposed the bill in committee.
Without this authority being extended, counties and local courts could face additional financial pressure tied to maintaining court services, which is why MAC supports HB 5452. The measure now advances to the House floor.
For more information on this issue, contact Deena Bosworth at bosworth@micounties.org.
Podcast 83: American Fidelity discusses power of being ‘different’ in attracting and retaining county workers
In a special episode of Podcast 83, Scott Adkins of American Fidelity talks with host Stephan Currie about how counties can use information to win the contest to attract and retain quality employees.
“American Fidelity … provides employer cost-saving solutions and supplemental insurance business benefits to industries,” Adkins said. “But we’re more than just an insurance company, Steve. Our goal is to empower employers to make benefit decisions that help both their organization and their employees.
“We help extend their HR department’s capacity,” Adkins continued. “We educate, enroll and support the development of competitive insurance packages, all while facilitating administrative efficiency and fostering positive employee experiences. We deliver year-round support, which helps employers overcome benefit administration and budget challenges and offer a different perspective than any of the other insurance companies you may deal with. We like to say we’re a different opinion.”
“So, let’s talk a little bit about supplemental insurance. You know, why should counties be thinking about supplemental insurance?” Currie asked. “When you just talked about county budgets are tight, it seems contradictory.”
“Local government employees often face things like lower wage growth compared to the private sector, high exposure to frontline work risks like public safety, public works, health care roles, and then also significant out of pocket medical expenses,” Adkins replied. “So, supplemental benefits can help fill the financial gaps created by major medical plans that they have, and these benefits help protect employees from sudden financial expenses, which can indirectly benefit the county.”
To hear more from Adkins on American Fidelity’s (AF) work with Michigan counties, watch the full episode by clicking here or on the image above. For even more on AF’s work as a MACSC-sponsored program, visit their page on the MAC website.
MAC hosts ‘summit’ session to discuss strategy with county partner groups
An annual gathering of leaders of the various county groups was held at MAC’s Lansing offices this week.
The “County Summit” brings together MAC partner organizations to discuss the legislative and budget issues shaping county government.
MAC Board President Antoinette Wallace chaired the session, which included the Michigan Association of County Clerks, the Michigan Association of Registers of Deeds, the Michigan Sheriffs’ Association, the Michigan Association of County Treasurers, the Prosecuting Attorneys Association of Michigan, the Michigan Association for Local Public Health and the Michigan Association of County Drain Commissioners.
Each group shared its legislative priorities, budget concerns and the issues currently creating challenges in the Legislature. The summit also allows participants to better understand the operational and policy challenges facing their county partners.
“This meeting continues to be one of the most valuable opportunities for county organizations to come together, exchange information and coordinate advocacy efforts on behalf of counties and the residents they serve,” said MAC Executive Director Stephan Currie. “By strengthening those relationships and maintaining open communication, Michigan’s county organizations are better positioned to advance policies that support effective county government and strong communities across the state.”
MAC staffer to lead national webinar on using opioid funds for housing
The National Association of Counties, in partnership with MAC, is hosting a webinar on June 8 focusing on the use of opioid funds to address housing needs.
The session, to be led by MAC’s Dan Kelly, will run from 1 p.m. to 2 p.m. Eastern.
Register for the webinar here.
In this webinar, learn practical strategies for using opioid settlement funds to support housing initiatives in your county. This session offers clear guidance on emerging models, compliance considerations and opportunities to fund housing as part of broader recovery infrastructure.
For more information, contact Dan Kelly at kelly@micounties.org.
Jared Walczak addresses a session on property tax policy.
Videos of 2026 Legislative Conference sessions are now available
Recordings of most of the plenary sessions from the 2026 Michigan Counties Legislative Conference are now available on MAC’s YouTube channel.
Among the sessions available are:
- What’s Going on with Energy Policy, with remarks by Michigan Public Service Commission Chair Dan Scripps
- A Legislative Roundtable featuring Sens. Aric Nesbitt and Darrin Camilleri and Reps. Rachelle Smit and John Fitzgerald
- An analysis of the potential effects of property tax cuts and replacement revenues, with context given by Jared Walczak of the Tax Foundation
Presentation slides and other materials from the conference can be accessed on MAC’s website.
MAC’s next major conference is the Annual Conference, Sept. 9-11 at the Grand Traverse Resort in Grand Traverse County. Expect registration for that event to open by early July.
Staff picks
- 50% of Michigan towns grew in population last year. See how yours fared. (MLive)
- Improving health literacy of Michigan residents: New grant program accepting applications (BCBSM Foundation)
- Coast Guard to deploy autonomous sail drones on Great Lakes this summer (Mason County Press)
- Genesee County looks to create new commission with end goal of new sports complex (MLive)