All townships should have received FY 2025 CVTRS Detailed Guidance this week from the Michigan Department of Treasury for the City, Village & Township Revenue Sharing (CVTRS) program. As previously shared by MTA in June, ALL local units are eligible in FY 2025 to receive CVTRS funding. This is the first time in nearly two decades that all townships will receive this funding. The Legislature funded the CVTRS program payments for the upcoming fiscal year, modified the payment structure to provide additional revenue sharing funding to all local units and modified program requirements.
The new revenue to be distributed will be provided via a new 3-factor formula for ALL local units:
- Taxable Value Payment
- Weighted Population Payment
- Yield Equalization Payment
Additionally, City, Village and Township Revenue Sharing Projections for FY 2025 are now available. You will note the projections for each local unit include the estimated constitutional revenue sharing amount (Sec. 950) as well as a breakdown of CVTRS payments (shaded column headings). The document projects the amount each local unit will receive under the new three-factor formula funding as well as the amount for those that received CVTRS in FY 2023-2024 (Sec. 952(2)). The final column projects the estimated total for all amounts—constitutional, amounts for those who previously received CVTRS and the new funding to be distributed via three-factor formula.
Please note that while the funding may be minimal for some local units for FY 2025, this is the first CVTRS funding that 88% of townships will receive in nearly two decades.
Two additional points to note from the guidance document. First, the CVTRS payments to those local units newly funded will be made in two payments: February and June of 2025. Secondly, all local units will be notified before the end of November that their 2024 taxable value data is available for verification on Treasury’s website. This is important as the new formula utilizes the taxable value in determining eligible funding.