Gov. Whitmer’s executive budget recommendation for Fiscal Year 2026 was presented this week, kicking off the budget process for the upcoming fiscal year. The proposed $83.5 billion budget includes a general fund total of $15.3 billion, a school aid budget total of $21.3 billion and $34.8 billion in federal funds; federal funds represent 41.7% of the total FY 2026. Highlights of the budget proposal impacting townships include:
- Constitutional revenue sharing—$25.7 million increase
- Statutory revenue sharing—4% increase ($22.7 million) for those local units receiving City, Village and Township Revenue Sharing (CVTRS) prior to the FY 2025 budget; 3.6% increase overall
- Public safety trust fund—$75 million to address violent crime prevention for townships, cities and villages based on violent crime statistics
- Behavioral health resources—$2.5 million ongoing for first responders and public safety staff
- First responders presumed coverage fund—increase of $2.5 million for wage loss and medical care expenses for those battling certain cancers
- Lead service line replacement—$50 million (one-time) to assist communities replace lead service lines and upgrade their water systems to improve the quality of drinking water and reduce lead exposure
- Water infrastructure grants—$30 million in ongoing annual funding to support communities’ efforts to replace lead service lines and upgrade associated infrastructure, and expand resources to support locals with stormwater management and stormwater infrastructure upgrades
- Solid waste surcharge (tipping fee) increase—$80 million to clean up contaminated sites, provide grants to local communities for waste management and bring Michigan in line with other Midwest states when it comes to out-of-state trash haulers
- Road funding—$112.2 million to ensure Michigan receives all $1.8 billion in federal highway aid; $27.3 million to improve local roads, highways and bridges across the state, and $7.8 million to fund a study and pilot program of potential road usage charge options
- Rural prosperity grants—$3 million to support rural communities through grants and expansion of the Rural Development Grant Program to support projects that enhance rural community infrastructure, including job training, childcare, housing and utilities
- Renewables Ready Communities program—$129.1 million federal competitive grant to deploy clean energy resources to support those who choose to host these facilities with technical and financial resources and incentivize the deployment of energy facilities on brownfield properties
- Employer assisted housing pilot program—$25 million to expand the existing program, leveraging investments from employers to fund a range of affordable housing projects
- Budget stabilization fund—$50 million deposit, bringing the rainy day fund balance to approximately $2.3 billion by the end of fiscal year 2026