Budget & Taxes (Children)

HB 4805 increases the percentage of Michigan's Children's Trust Fund available for disbursement to child welfare programs. It changes the disbursement rate from 4.25% (2015-2017) to up to 5% starting in 2018 (if the fund's 12-quarter average reaches $23.5 million), and then to up to 8% beginning in fiscal year 2025. The bill uses a rolling average of the fund's value (including investment gains or losses) to determine annual disbursement amounts. This directly affects state funding for child abuse prevention and related services under the Child Abuse and Neglect Prevention Act.

SB 419 increases the annual disbursement rate from Michigan's Children's Trust Fund from 4.25% to 5% of the fund's 12-quarter rolling average (starting in 2018 if the fund meets a $23.5 million minimum), and raises it further to 8% beginning in 2026. The fund, which supports child abuse prevention and related programs using state tax revenues and other sources, uses a rolling average to smooth out annual fluctuations in value. This change directly affects the amount of money available for children's services each year. The bill does not alter the fund's funding sources or disbursement authorization process.