NEWS

Legislature completes FY 2027 budget in overnight session

Following weeks of closed-door negotiations, the Michigan Legislature completed work on the FY 2027 state budget during an overnight session that concluded early Friday morning. In addition to approving the state budget, lawmakers passed more than 60 bills before adjourning.

Even with the rush of legislative activity this week, MAC successfully protected several key county priorities. County revenue sharing remains flat for the second consecutive year; counties will continue to receive Public Safety Revenue Sharing funding at current levels; prosecutor grants continue; and veteran grants continue. 

The overnight session also marked a dramatic increase in legislative activity. Prior to Thursday evening, the Legislature had sent just 20 bills to the governor’s desk in 2026. During the final hours before adjournment, however, more than 60 bills were approved, many of which were discharged from committee and advanced through the legislative process within hours as part of the final budget agreement.

On a positive note, counties avoided several proposals that would have had significant long-term impacts. The Legislature did not advance the sweeping property tax reduction proposals introduced earlier this year, nor did it approve legislation that would have preempted local zoning authority.

While MAC appreciates the Legislature’s efforts to complete the budget before the start of the new fiscal year (Oct. 1), the accelerated process limited opportunities for stakeholder review and engagement. Several bills, including budget bills, were substantially amended during final negotiations, leaving little opportunity for interested parties to review the changes or provide meaningful feedback before final passage. MAC will continue working with lawmakers and the administration as these measures are implemented and as discussions continue through the end of the year. 

Budget highlights

• County revenue sharing remains flat for the second consecutive year, avoiding potential reductions.
• The Legislature did not adopt the Revenue Sharing Trust Fund bills, which means we still have work to do to get it over the finish line. 
• County eligibility for Public Safety Revenue Sharing funding continues at the FY26 level of $11.7 million.
• Local Prosecutor Grants receive a $3 million increase for those counties that were eligible in FYs 25 and 26. 
• The Election Equipment Reserve Fund was eliminated, and the Legislature did not include the Governor’s proposed $43.2 million for replacement voting equipment, despite the current statewide voting system contract expiring in February 2027.
• Veteran Service Grants continue at approximately $4 million.
• The requirement for the judicial branch to maintain medication-assisted treatment programs for individuals with opioid and alcohol addictions was eliminated.
• Child Care Fund appropriations increase by $73.5 million, reflecting updated May caseload estimates.
• Foster care payments increase by $14.2 million.
• Community Corrections plans receive a $1 million increase.
• The budget includes $1.33 million in Infrastructure Investment and Jobs Act (IIJA) funding for sewer overflows and stormwater management, despite statewide needs exceeding $1 billion.
• No funding was provided to address upcoming dam safety requirements. However, the budget continues with $4 million for dam safety emergency response costs and $5 million for repairs and maintenance of approximately 200 state-owned dams.
• The budget does not reimburse counties for the Michigan Department of Natural Resources’ use of county Payment in Lieu of Taxes (PILT) funds to pay the department’s share of lake level assessments, but it’s important to note that HB 6105, by Rep. Tom Kunse (R-Clare), is still in play to rectify the situation.
• The budget also includes more than $125 million in Legislatively Directed Spending items, many of which will benefit counties.  

Legislation that directly affects counties

The following bills were approved by the Legislature and will be sent to the Governor for consideration:

• SB 81 – Expands the Michigan Indigent Defense Commission’s responsibilities to include youth defense services.
• SB 423 – Eliminates the sunset on a county treasurer’s authority to enter into payment plans to help property owners avoid tax foreclosure.
• SB 723 and HB 4871 – Expand the Transformational Brownfield Program to support additional housing development.
• HB 4415 – Increases the competitive bidding threshold for county road agencies from $15,000 to $75,000.
• HB 4471 – Eliminates the 1,000-hour employment limit for retirees rehired by county sheriff’s departments and prosecutors’ offices.
• HB 5232-33 – Require paid military leave for law enforcement officers and firefighters.
• SB 966 and HBS 5806-07 – Create the Michigan Housing Opportunity Tax Credit Program.

For more information on MAC’s budget advocacy, contact Deena Bosworth at bosworth@micounties.org

 MAC releases data from Opioid Settlement Survey

MAC is excited to announce the updating of the MAC Opioid Settlement Dashboard and the release of the Michigan County Opioid Settlement Reporting: Data Overview for 2026. Data included on the dashboard and in the report are pulled from the Annual Opioid Settlement County Reporting Survey. The survey was administered between March and May of 2026 and was intended to capture data associated with calendar year 2025. Information collected included county activities associated with planning efforts, stakeholder engagement, management of funds and spending. The data captured highlighted common themes and trends across the state and will also serve as a tool to assist in developing technical assistance offerings. Thirty percent (30%) of counties responded to the survey, providing a snapshot into the opioid settlement work around the state.

Additionally, in May, the Michigan Department of Attorney General released a report detailing local government spending of settlement funds between 2023-2025.

For questions or for technical assistance, request support here.

Podcast 83 discusses sweeping changes to federal student loan programs and how MAC partner program can help county employees

With major changes coming to federal student loan programs on July 1, this week’s Podcast 83 episode features a MAC partner that aids counties and their employees in navigating loan repayment rules.

Savi is now operating in nine Michigan counties to aid county employees, or even all of a county’s residents, navigate the dizzying rules of loan repayments.

“We are a public benefits social impact company, really founded by a lot of student loan experts and policymakers, to help those many people out there struggling with student debt, trying to better understand their debt and all their options,” explained Savi’s Tony Raffa.

“Probably the most important thing is that collections are back on the table (as of July 1),” he continued. “The biggest concern here is that we’ve seen 9 million borrowers are currently in default nationally, so about 1 in 4 borrowers. We see about 25 percent of those in Michigan are in this boat. And what that means is it means these borrowers are not currently making student loan payments. Now, that has a few effects

“For starters, anyone who’s not making student loan payments is going to see an immediate hit to their credit score. We’ve seen, on average, credit scores dropping by 57 points, and as we continue to get deeper into defaults and delinquency, we will only see that number increase. We’ve even seen 2 million people go from prime to subprime credit scores.”

Learn more about how Savi can partner with you to aid your county employees by watching the full episode, recorded on June 25, by clicking here or on the image above.

Macomb County leads Michigan haul in NACo Achievement Awards

Macomb County was one of 18 counties from across the U.S. to receive a “Best in Category” recognition in the 2026 NACo Achievement Awards.

Macomb’s Public Works Office’s was cited for its work on sewer overflows in the category of “County Resiliency: Infrastructure, Energy and Sustainability.” Macomb is the first county agency in the U.S. to implement an automated system of monitoring the levels of residual chlorine that enters the lake following chemical treatment of combined sanitary and stormwater flow when the volume of that flow exceeds the capacity of retention basins and is discharged into the lake.

“To receive the top award from NACo among so many projects and initiatives in a single category is terrific, and we’re very honored to receive it,” said Macomb Public Works Commissioner Candice Miller in a statement. “It’s a testament to our department’s ongoing effort to protect our wonderful Lake St. Clair and to improve water quality, which improves our quality of life.”

Michigan received 25 awards in the competition, sponsored each year by the National Association of Counties to “recognize innovative county government programs across 18 categories representing the full spectrum of county responsibilities, from public safety and health to technology and workforce development.”

Macomb also earned another19 NACo citations in the categories of Criminal Justice and Public Safety, Civic Education and Public Information, Community and Economic Development, County Resiliency: Infrastructure, Energy, and Sustainability, Financial Management.

Neighboring Oakland County earned five citations in the categories of Community and Economic Development, County Resiliency: Infrastructure, Energy, and Sustainability; and Personnel Management.

Winners will be honored at NACo’s 2026 Annual Conference in New Orleans in mid-July.