Michigan House Bill HB4274

Michigan 2023-2024 Regular Session

• Introduced: 3/14/23
• Refer: 3/14/23
• Report Pass: 9/13/23
• Engrossed: 11/1/23
• Refer: 11/2/23

Caption

State management: funds; revenue sharing trust fund; create. Amends sec. 2 of 2000 PA 489 (MCL 12.252) & adds secs. 11a & 11b. TIE BAR WITH: HB 4275'23

Impact

If implemented, HB 4274 would significantly modify the existing framework governing how state funds are shared with local authorities. The creation of the revenue sharing trust fund is seen as a proactive step to ensure that local governments receive predictable and consistent funding. This could result in improved municipal services and infrastructure as local entities gain better access to state resources. Moreover, it outlines provisions that prevent the lapsing of funds at the end of the fiscal year, allowing for more effective budget management at the local level.

Summary

House Bill 4274 aims to establish a revenue sharing trust fund within the Department of Treasury as part of amendments to the Michigan Trust Fund Act. The bill outlines how funds will be allocated to local governments, including cities, villages, and townships, based on eligibility criteria from previous fiscal regulations. This initiative is designed to enhance financial support for local entities by providing systematic disbursements that are expected to begin in October 2024. The bill emphasizes the importance of consistent revenue streams to maintain and improve local governance and services.

Sentiment

The sentiment surrounding HB 4274 appears generally supportive among legislators who see this as a beneficial measure to aid local governments. Many advocates argue that the bill addresses long-standing issues related to funding disparities and promotes equity among different municipalities. However, there might also be concerns regarding the sustainability of funding and whether the allocations will be sufficient to meet the diverse needs of Michigan communities, especially smaller or underfunded local governments.

Contention

While the bill has garnered support for its objective to streamline funding to local governments, potential points of contention include debates about the distribution formula and the total amount to be allocated. Some legislators may express skepticism about whether the proposed funding levels are adequate to meet the growing demands on local municipalities. Additionally, the tie-bar provision linking HB 4274 to another piece of legislation (HB 4275) complicates matters, as both bills must pass together for the revenue sharing initiative to take effect, which raises concerns about legislative coordination and the risk of delay.