Statutory revenue sharing for all townships, cities and villages would increase by 10% under the Senate General Government Subcommittee’s recommendation for FY 2026. Senate Bill 173, sponsored by Sen. John Cherry (D-Flint), would distribute the increased funds through the three-factor formula that was implemented in the current fiscal year. The current-year appropriation provided statutory revenue sharing to ALL townships for the first time in nearly two decades.
The appropriation recommendation also includes language that would enable the state to withhold revenue sharing dollars if it was determined a local unit did not provide protections under the 5th and 14th amendments of the U.S. Constitution.
Additionally, a new initiative, the Community Crime Reduction Initiative, is proposed, which would assist local units in reducing crime. Under the proposal, grants would be awarded to eligible units with $60 million for counties and $40 million to eligible townships, cities and villages. To be eligible, a township, city or village would have to have a population of 7,500 or more and a per capita taxable value of $45,000 or less. This initiative is an alternative to the Public Safety and Violence Prevention Fund legislation passed recently by the House. SB 173 next advances to the Senate Appropriations Committee for consideration