Michigan Townships Association

Revenue sharing for ALL townships, key provision of state budget approved

Following advocacy by both MTA and township officials, the Legislature included an additional $75 million for revenue sharing in the FY 2024-25 budget that will provide statutory revenue sharing for all townships. This action—and the increased funding—is a positive step in recognizing the value of and investing in local governments.

Of the estimated $670 million for statutory revenue sharing, the distribution provides:

  • $520 million to be disbursed in the same proportion to current recipients as in current fiscal year
  • $75 million in new revenue
  • $40 million to be distributed to townships, cities and villages using a three-factor formula (previously utilized in 1998): 1/3 inverse taxable value per capita, 1/3 unit type population and 1/3 yield equalization.
  • $30 million for counties to be distributed on inverse taxable value per capita
  • $75 million for a new Public Safety and Violence Prevention Fund to provide additional resources for police services and to support community violence intervention efforts; distribution to local units will be based on violent crime statistics and passage of House Bills 4605 and 4606 will be required to implement the fund.

For the past two decades, the majority of townships have not received this critical funding due to state budget cuts. The budget measure passed early Thursday morning restores funding to all townships, cities and villages to the statutory revenue sharing program and provides increased and ongoing resources to state-shared revenue. This action represents a positive recognition of the invaluable role our communities provide every day and offers vital, additional funding for local governments to best serve their residents. MTA would like to especially thank Sen. John Cherry (D-Flint) and Rep. Felicia Brabec (D-Pittsfield Chtr. Twp.) for their steadfast commitment and hard work to secure the critical resources to support all local communities.

In addition to the much-needed increase in revenue sharing funding, there are several key provisions in the approved budget impacting townships including:

Elections:

  • A new requirement that the Secretary of State must provide reimbursement to townships and other local governments within 60 days of receiving the necessary documentation
  • $1.5 million additional funds to provide grants to counties for implementation costs of Proposal 2 of 2022, such as early voting
  • $5.7 million (supplement) for Help America Vote Act election security grants

Economic development and housing:

  • $47.4 million in grants to develop affordable housing and to increase housing stock
  • $110 million (FY 2024 supplemental) for missing middle housing, with at least 30% of the grants to rural community projects
  • $50 million (FY 2024 supplemental) for the Housing and Community Development Fund to expand access to affordable housing
  • $50 million in continued funding for the Revitalization and Placemaking program
  • $3.3 million for the Housing Readiness Incentive Grant Program to provide grants to local communities to cover costs association with master plan updates and zoning

Infrastructure:

  • $509 million for water infrastructure to fund lead service line replacement and water infrastructure and climate change mitigation
  • $48.3 million to provide loans and grants to local communities to support projects associated with lead service line replacement
  • $5 million for Renewable Energy and Electrification Infrastructure grants for planning, developing, designing, acquiring or constructing renewable energy and electrification infrastructure projects