Michigan House Bill 6225 permanently reduces the state individual income tax rate to 3.9% starting in 2028, eliminating a previous automatic mechanism that could have lowered the rate further based on general fund revenue growth. The bill establishes a phased reduction schedule, lowering the tax from 4.15% in 2026 to 4.0% in 2027 before reaching the final rate. It also mandates specific annual deposits from income tax collections into the state school aid fund and the renew Michigan infrastructure fund, with the latter receiving $69 million per year beginning in fiscal year 2030.
Michigan House Bill 6298 is a supplemental appropriations act that reallocates funds within the Department of Health and Human Services for the fiscal year ending September 30, 2026. The bill directs $150 million to the newly established Youth and Family Justice Bureau while reducing allocations for other child welfare functions, including foster care payments and local office staff compliance. These funding shifts are intended to support the specific powers and duties of the bureau as defined in the state probate code, effectively consolidating resources under this new agency structure.
This bill amends the state school aid act to appropriate approximately $18.1 billion for public schools and education purposes for the fiscal year ending in 2026, and about $18.8 billion for the following year. It specifies that these funds will be drawn from multiple sources, including the state school aid fund, the general fund, and various specialized reserve funds for transportation, enrollment stabilization, and educator fellowships. Additionally, the bill allocates up to $50,000 from the state school aid fund to support the operation of a specific "learner-first district." The legislation only takes effect if a separate companion bill is also enacted into law.
This bill proposes changes to how Michigan manages its economic stabilization fund by adjusting the rules for transferring money into and out of the fund based on state revenue growth rates. It requires that if revenue growth exceeds 2 percent, the excess amount must be moved into the stabilization fund, while limiting withdrawals to 25 percent of the fund balance when revenue growth is negative. Additionally, the bill subjects the fund to specific provisions of the motor fuel tax act, ensuring that any transfers are consistent with existing tax laws. The legislation is tied to a companion bill and will not take effect unless both are passed by the legislature.
This proposed constitutional amendment requires Michigan's legislature to pass the annual school aid budget bill by July 1 each year. To ensure transparency and accountability, the bill must be publicly available on the legislature's website for at least seven days before a vote, and any amendments must be posted for 24 hours. If the deadline is missed, the salaries of the governor, the Senate majority leader, and the House speaker will be withheld until the bill is enacted.
This bill allows the state treasurer to provide interest-free loans to school districts and intermediate school districts if the state budget is not passed by October 1. Under the new rules, a district can borrow an amount equal to what it received from the school aid fund in the previous year for a period of up to one year. The state treasurer retains the authority to set additional terms for these loans, which are intended to help districts manage cash flow during budget delays.
SB 1073 modifies the Michigan Trust Fund Act to adjust how money flows into and out of the 21st Century Jobs Trust Fund. The bill specifies that certain funds, including tobacco settlement revenues and amounts from the general fund, must remain in the trust fund rather than reverting to the general fund at the end of a fiscal year. It also clarifies that while the principal stays in the trust, any interest and earnings generated from investments must be deposited into the general fund. Additionally, the bill outlines that money from the trust can only be used to support specific programs under the Michigan Strategic Fund Act, such as those related to innovation and economic development. This legislation is contingent upon the simultaneous passage of Senate Bill 1072, which is tied to it in the legislative process.
This bill requires the state treasurer to calculate and report specific monthly funds to various legislative committees and state budget offices. The funds in question are those designated for withholding from payments made to the federal government, as previously outlined in the state's management and budget act. The legislation does not take effect unless it is passed together with a companion bill, HB 6122, which addresses the actual withholding of those federal payments. Essentially, this measure establishes a reporting process to ensure that the legislature is informed about the amounts the state intends to withhold from federal transfers.
HB 6035 is a budget bill that allocates state funds to various Michigan departments and agencies for the fiscal year ending September 30, 2026. It establishes the legal authority for these agencies to spend the money and sets specific conditions that must be met for the expenditures to occur. The legislation directly impacts state government operations by defining how much money is available for the upcoming year.
HB 6042 is a supplemental appropriations bill that allocates state funds for the fiscal year ending September 30, 2026. The legislation specifically includes funding for the Macomb County interceptor, a project aimed at managing wastewater or stormwater in that region. It also provides financial support to various state departments, the judicial branch, and the legislative branch. The bill sets conditions on how these funds can be spent and was introduced by Representative Denise Mentzer in June 2026.
