All members are asked to contact your state representative and state senator TODAY to ask them to stand with local governments and protect constitutional and statutory revenue sharing in the state budget.
Budget negotiations for the state’s 2026 fiscal year continue, with the budget expected to be approved today, so your voice is needed NOW.
All townships will experience a double hit to their revenue sharing dollars under the proposed budget plan, with an 8.8% decrease in constitutional revenue sharing due to loss of sales tax revenue as part of the road funding plan and a reduction in statutory revenue sharing. The sales tax shift creates a $95 million decrease in constitutional revenue sharing, and the once-committed backfill for local governments by the House and Senate is NOT there. Statutory revenue sharing is also on the chopping block with a reduction or complete elimination for townships.
MTA has been working non-stop this week to share the impact of these cuts with lawmakers, but we need your voice to share what this revenue loss will mean to your community. Please reach out to your lawmakers today to ask them to maintain funding to local units.
You may receive a response that “local governments in total will receive more money” through four different sources. However, the impact to townships is a net loss:
- Reduction in statutory revenue sharing—reduces or eliminates FY 2025 funding
- Redirect of sales tax without previously committed backfill of $95 million—creates an 8.8% reduction in your constitutional revenue sharing
- Public safety fund—provides revenue for specific purposes to reduce crime BUT townships only receive if they have or contract for law enforcement; otherwise, it goes to county sheriff
- Road funding increase—townships DO NOT receive road funding dollars; rather, we will be asked to provide more township money to match the increased funds the county road agencies receive
- Bottom line—LOSS of revenue for your township
Please ask lawmakers to support a budget and road funding plan ONLY if it maintains statutory revenue sharing dollars and backfills the $95 million of constitutional revenue sharing loss to townships, cities and villages. If not, they will be supporting cuts in revenue sharing to your community.
If you have already contacted them, thank you—and please do so again.
The state cannot keep forcing local governments to adjust to less revenue while continuing to provide essential services and programs to residents and the greater community.