FY 2026 Budget Revenue Sharing/Public Safety Estimates
Constitutional and Statutory Revenue Sharing – Estimates for constitutional revenue sharing and statutory revenue sharing under the state’s FY 2026 budget: Constitutional/CVT Revenue Sharing Estimates – FY26
Public Safety Revenue Sharing Grants – A new program was included in the FY 2026 budget for public safety revenue sharing grants. The funds must be used only for operational and capital expenditures for public safety purposes. Of the amount, 75% must be used to fund directly or indirectly law enforcement agency or officers. Up to 25% may be used to fund other non-law enforcement-related public safety initiatives such as improving recruitment or retention efforts, training programs, equipment purchases, programs designed to reduce identified risks to public safety, crime diversion programs, operational emergency medical or firefighter services, and capital improvements to public safety buildings/structures. The language states it is the intent to fund for three years. We will be sharing additional details when available on spend conditions, reporting timelines and requirements. Public Safety Revenue Sharing Grant Estimates
Road Funding – Under the recently enacted road funding package, you can view the estimates that will be available by county with corresponding percentage increase: FY 2026 Transportation – County Distribution Estimates
The Revenue Sharing Trust Fund would protect local funds
Revenue sharing is one of the two primary funding sources that local governments rely on to provide core services to their residents. It ensures we can keep communities safe and secure, provides safe drinking water, maintains parks and infrastructure, and attracts businesses to your communities. Unfortunately, even with recent increases, this critical state funding stream is 51% less revenue sharing to townships, cities and villages than the state provided in 2002. This places undue pressure on local governments to continue identifying funding sources to provide core services. For the past two decades, 88% of Michigan’s townships, did not receive annual statutory revenue sharing until the current state fiscal year (FY 2025).
House Bills 4311 and 4312 would change this dynamic by creating a system that protects and provides predictability for local units of government.
The legislation to create a Revenue Sharing Trust Fund to protect vital resources and help provide critical local services for all local units of government has been reintroduced. House Bills 4311 and 4312 would secure all state shared revenue for local units of government utilizing a trust fund model. The resources would be calculated based on a percentage of sales tax collected allowing resources to rise and fall with economic change. Specifically, the bills:
- Amend the Michigan Trust Fund Act to establish a Revenue Sharing Trust Fund within the Department of Treasury
- Amend the General Sales Tax Act to require the Department of Treasury to deposit 8.62% of the money received and collected from the sales tax imposed at a rate of 4% into the newly created Revenue Sharing Trust Fund
- Require the State Treasurer to transfer and disburse money received by the Revenue Sharing Trust Fund from sales tax revenue.
This change would allocate funding resources in a secure and predictable manner to help protect sustainable funding for vital services, economic opportunities and our local infrastructure. The bills are a priority for MTA and an investment that will help maintain local infrastructure. It is an investment worth making for our communities if we want a growing and prosperous Michigan.