Legislative Update 7-7-23

ICYMI: Revenue sharing, Child Care Fund boosts mark FY24 state budget

Increases in county revenue sharing and reimbursements for the Child Care Fund highlight a fiscal 2024 state budget approved by legislators during marathon sessions in Lansing this week.

What is being described as “the largest state budget in Michigan history” includes a $17.6 million boost in county revenue sharing, which will bring the total in FY24 to $263.4 million. This represents the seventh consecutive increase in this account after a decade of disinvestment by the state.

“We are obviously pleased with increases in revenue sharing, and especially this year in light of the fact that these are broad-based boosts that reach every corner in the state in a budget marked more by specific and highly individualized projects by the Legislature,” said Stephan Currie, MAC’s executive director.

See county-by-county revenue sharing estimates for FY24.

The fact that the final increase was much less than had originally been discussed earlier this year is evidence, said MAC’s chief lobbyist, that the true, fundamental reform is to create and fund a separate Revenue Sharing Trust Fund. “What we have seen from the conference committee this week is a reminder that we need to take revenue sharing out of the annual political free-for-all with the budget,” said Deena Bosworth. “Our plan, developed in close coordination with other local government groups, will do just that, and we remain hopeful that, with members’ help, we can bring this reform into reality later this year.”

Bosworth was referring to plans embodied in House Bills 4274, by Rep. Amos O’Neal (D-Saginaw), and 4275, by Rep. Mark Tisdel (R-Oakland), which would create a trust fund and dedicate a percentage of the state sales tax to it, thereby ensuring annual growth when sales tax receipts grow and separating revenue sharing from much of the current budget politics.

To send a message of support to your legislators of this reform, click here.

In other county-related items from the FY24 budget:

• $6.6 billion is assigned to transportation work;
• $1.1 billion is assigned to environmental work (with about a third of it coming from the state General Fund);
• Reimbursements for counties from the Child Care Fund will go to 75 percent from the current 50 percent, securing one of MAC’s key priorities for 2023;
• $72 million will go into Michigan Indigent Defense Commission grants to cover costs associated with Standard 8 adopted by the commission;
• $19.3 million is dedicated to foster care per diems, representing an 8 percent increase;
• $25 million is dedicated in an increase to Essential Local Public Health Services; and
• $76 million is dedicated to implementing the provisions of Proposals 1 and 2 from 2022 that alter legislative term limits, transparency and election procedures, with $30 million of that figure set aside for grants to incentivize early voting efforts on a multi-jurisdictional effort.

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