Michigan Senate Bill SB0230

Michigan 2023-2024 Regular Session

• Introduced: 3/22/23
• Refer: 3/22/23

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: SB 0229'23

Impact

One of the core impacts of SB 230 is the establishment of the revenue sharing trust fund, which will provide consistent financial support to local areas on a bi-monthly basis. The disbursement is divided equally between local municipalities and counties, with specific provisions to ensure that funds are appropriately allocated based on established eligibility criteria. This mechanism aims to enhance local government autonomy by ensuring they receive crucial financial resources to meet community needs effectively.

Summary

Senate Bill 230 seeks to amend the Michigan Trust Fund Act (2000 PA 489) to establish a revenue sharing trust fund within the Department of Treasury. This new fund is intended to facilitate the transfer and disbursement of collected revenues to local municipalities, including cities, villages, and townships, as well as counties across Michigan. SB 230 specifies the mechanisms for collecting and distributing funds, promoting a structured approach to financial support for local governments, especially in light of ongoing funding challenges at the municipal level.

Contention

Despite its potential benefits, SB 230 faces contestation primarily concerning the administrative burden associated with its implementation and the dependency it creates on state-apportioned funds. Critics worry that this legislation might lead to unpredictable funding allocations as local governments adjust to reliance on state-released funds. Additionally, the requirement for counties to be treated as eligible even if they have limited funding cycles raises concerns about equity and fairness in fund distribution across differing local contexts.