This bill appropriates state funding for K-12 public schools, community colleges, and higher education institutions for the 2025-2027 fiscal years. It allocates specific dollar amounts from various state funds to support public school operations, including general funds, transportation, meals, and student support reserves, while also distributing $493 million to community colleges for operational expenses. The legislation establishes spending priorities that require general fund allocations to be used before state school aid funds, and directs any unspent general fund money to a stabilization fund at the end of each fiscal year.
This bill establishes funding for fiscal year 2026-2027 to support construction, renovation, demolition, and equipment projects for state buildings and facilities. It directly affects state agencies, institutions of higher education, community colleges, and the state building authority by authorizing capital outlay expenditures. The legislation creates an appropriation act to provide the necessary financial resources for these infrastructure projects during the specified fiscal year.
SB 559 creates a new Revenue Sharing Trust Fund in Michigan's Department of Treasury, effective October 1, 2025. The fund will receive money from the general sales tax, donations, and investment earnings, with balances carrying over annually instead of lapsing. It mandates specific distributions: $299 million to cities, villages, and townships (based on prior eligibility regardless of new criteria), $261 million to counties (similarly based on prior eligibility), and remaining funds distributed through three formulas measuring taxable value, population type, and yield equalization. This directly affects all local governments in Michigan by changing how they receive state revenue-sharing payments.
SB 561 amends Michigan's sales tax law to change how revenue is distributed. It allocates 8.6% of the 4% general sales tax (starting October 1, 2025) to a new Revenue Sharing Trust Fund for distribution to cities, villages, townships, and counties. The bill also directs computer software sales tax revenue ($9-12 million annually) to the Michigan Health Initiative Fund and splits aviation fuel tax revenue (35% to the state aeronautics fund, 65% to airport funds). These changes affect local governments, public schools (via school aid fund allocations), airports, and health programs, without altering the overall tax rates.
SB 553 amends Michigan's tax increment financing (TIF) law to allow municipalities to fund water resource improvements using TIF revenues. It specifically adds projects like lake management, shoreline protection, stormwater systems, invasive species control, and public access to inland lakes or rivers to the list of eligible TIF activities. Municipalities can now create authorities within designated "water resource improvement districts" (areas near lakes, rivers, or harbors) to finance these projects through captured tax revenues. The bill clarifies definitions for terms like "water resource improvement" and "water resource improvement district" to ensure TIF funds are properly applied to environmental and public access enhancements.
SB 581 updates definitions in Michigan's downtown development law to clarify how tax increment financing (TIF) programs operate. It specifically revises the definition of "downtown district" to allow multiple geographic areas within a business district under certain conditions (like inter-municipal agreements), defines "captured assessed value" for TIF calculations, and limits "catalyst development projects" to one per authority (requiring $300 million+ investment in cities over 600,000 population). These changes directly affect municipalities operating downtown development authorities that use TIF to fund redevelopment. The bill focuses on precise terminology to ensure consistent application of existing TIF rules, without creating new funding mechanisms.
SB 695 allows regional transit authorities in Michigan to charge an extra $1.20 per $1,000 of a vehicle’s value (on top of standard registration fees) for transit funding, but only if approved by voters in a November election. It requires ballot measures to specify how funds will be used and limits spending to transit projects. The tax applies to regular vehicle registrations in transit regions, excluding company test vehicles (e.g., manufacturer-owned vehicles used for testing). It takes effect January 1, 2027, pending approval of related legislation. This change directly affects vehicle owners in participating transit regions through their registration costs.
SB 692 modifies how regional transit authorities in Michigan can raise funds for public transportation. It requires voter approval for local transit taxes through a November election, with ballot measures clearly stating the tax rate, duration, purpose, and whether it's a renewal or new tax. The bill mandates that at least 85% of funds collected from local taxes or vehicle registration fees must be spent on transit services within the community where the money was raised. It also adds new reporting requirements for transit authorities starting January 1, 2027, including annual cost/revenue reports and asset management plans.
HB 4576 is the fiscal year 2025-2026 appropriations bill for the Michigan Department of Education. It authorizes specific funding levels for the department's operations and programs during the upcoming state fiscal year. The bill passed the House on June 11, 2025, with 56 ayes, 53 noes, and 1 excused. As a procedural appropriations act, it establishes the legal funding framework but does not detail specific programs or spending items beyond the authorized amounts.
HB 4543 changes how Michigan's home heating credit is adjusted annually. It replaces the use of the national U.S. Consumer Price Index (CPI) with the Detroit Consumer Price Index to calculate annual credit adjustments. This means the credit amount for eligible households will now reflect local cost-of-living changes in Detroit instead of national averages. The bill directly affects low-to-moderate income Michigan residents who claim the home heating credit on their state tax returns.
