Appropriations bill for General Government invests in Michigan communities, lays out people-focused spending priorities for various state departments and agencies
LANSING, Mich. (May 15, 2024) — Yesterday, the Michigan Senate passed the General Government appropriations bill, Senate Bill 760, which sets the 2025 fiscal year budgets for the departments of Attorney General, Civil Rights, State, Treasury, and Technology, Management, and Budget, as well as the Executive Office, Legislature, and Legislative Auditor General. As Chair of the Senate Appropriations Subcommittee for General Government, Sen. John Cherry (D-Flint) is proud to have worked alongside his Senate colleagues to craft a bill that innovatively addresses the needs of each of these unique state departments and the Michiganders that they serve.
One significant proposal included in the budget passed yesterday tackles a longstanding issue by changing how the state conducts revenue sharing with our local communities to fund vital public safety, parks and recreation, water and garbage services and more. This bill recommends returning to the three-factor distribution formula that was originally adopted in 1998 as a way to allocate these additional resources in a fair way. The formula recognizes fiscal challenges facing communities, the demand for services, and creates a statewide floor on the per capita amount raised by a millage. Additionally, as part of this new approach, Chair Cherry proposes utilizing a revenue sharing trust fund to ensure permanent resources are appropriated for local units of government and the services they provide.
Restoring this method would ensure resources are allocated to all cities, villages and townships (CVTs) in Michigan, including the approximately 1,200 communities that had been kicked out from receiving these payments after changes took place in 2002. This bill also recommends a 20.5% increase in revenue sharing for both CVTs and counties, ensuring no communities lose out on funds under the new equation.
“From Michigan’s rural areas to our urban ones, restoring this approach to revenue sharing will help communities across the state in a fair and balanced way,” said Sen. Cherry. “By taking this innovative and long-awaited approach to state funding for local units of government, Michigan communities will be equipped with the resources they need to thrive — from responsive police and fire departments, quality local water, sewer and trash services, and robust parks and recreation opportunities. I am proud the Senate is taking bold, necessary steps to resolve this issue.”
Also included in the portion of this bill connected to the Dept. of Treasury is a $34.8 million proposal to support local prosecutor offices, addressing issues with high turnover, training needs and case backlog. A $25 million one-time funding recommendation for the Municipal Retirement Grant Program is included as well, which would help communities experiencing the greatest burden from their pension and other post-employment benefits (OPEB) systems.
In addition to the exciting changes and investment proposals mentioned above, other highlights of the various departmental and agency budgets contained within the General Government Appropriations bill include:
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Funding for the Dept. of Attorney General for efforts to ensure justice for sexual assault crime victims.
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Investments in the Dept. of Civil Rights to ensure equal employment opportunity rights and produce a quarterly public report on state civil rights complaints.
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Investments in the Dept. of Treasury to provide public safety resources to communities; to bolster small business retirement programs; and to promote MiABLE program for disabled individuals to save and invest for disability-related costs without affecting benefits eligibility.
“This budget is really focused on investing in our communities in a myriad of ways, from ensuring Michiganders have the resources they need upon retirement to bolstering the ability of our local governments to deliver basic services,” said Sen. Cherry. “I am confident this bill that my colleagues and I have put forth will build towards a more vibrant and prosperous future for Michiganders in all corners of the state.”
As the Legislature and governor’s office work to finalize the budget, Sen. Cherry will remain focused on smart, innovative solutions that address our state’s needs and that take care of the people who call it home. The recommendations passed will now go to the House of Representatives for further consideration.
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