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Michigan Townships Association

Legislature approves FY 2026-2027 state budget

The Legislature approved the state’s FY 2026-2027 budget totaling $75.2 billion, which includes a general fund total of $14.1 billion. Due to a projected $1 billion shortfall, the final budget is smaller than the state’s current fiscal year budget.

Funding impacting townships include:

  • Statutory Revenue Sharing will remain at the current year’s appropriation level.
  • Constitutional Revenue Sharing, which is determined by actual sales tax revenue collections, is projected to decrease by 2.3% ($25 million) based on the most recent (May 2026) state revenue estimates.
  • Public Safety Revenue Sharing (PSRS) grants will be funded at $50 million, of which $35.1 million is distributed to cities, villages and townships (CVTs) based on their violent crime statistics. In the current year, $50 million was appropriated PLUS an additional one-time funding of $20 million; CVTs received a total of $42.5 million this fiscal year. This budget, which begins on Oct. 1, contains only the $50 million—thus, local units will see a slight decrease in the PSRS grants.

You can view the estimates for your township’s statutory and constitutional revenue sharing, as well as projected Public Safety Revenue Sharing grant, here.