Michigan Senate Bill SB0248

Michigan 2025-2026 Regular Session

• Introduced: 4/23/25
• Refer: 4/23/25

Caption

Human services: services or financial assistance; water rate affordability fund; provide for. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding sec. 14t. TIE BAR WITH: SB 0250'25, SB 0252'25

Impact

The anticipated impact of this legislation is substantial as it seeks to provide targeted support to families struggling to pay their water bills. By capping assistance payments at 15% of the fund's total and allocating funds toward arrearage payments and income-based discounts, the bill is crafted to mitigate the financial strain on low-income residents. Furthermore, the establishment of a structure for regular reporting and auditing will ensure transparency in how these funds are managed and dispersed, ultimately enhancing accountability for both the state and utility providers involved.

Summary

Senate Bill 248 aims to address the issue of water affordability for low-income residents in Michigan by establishing a dedicated fund—the Low-Income Water Residential Affordability Fund. This fund will facilitate financial assistance programs aimed at reducing the burden of water service costs on vulnerable populations. The bill mandates the creation of this fund within the state treasury, which will be financially supported through a small monthly fee levied on retail water-metered accounts. Starting at $1.25, this fee is designed to increase gradually and will be adjusted according to the Consumer Price Index, ensuring it remains responsive to inflationary pressures.

Contention

Notable points of contention surrounding SB 248 stem from the implications of imposing additional fees on water utility bills, even though they aim to create a support system for low-income users. Critics might argue that adding fees could disproportionately affect those already struggling financially. Additionally, there may be concerns regarding the effectiveness of the proposed fund in genuinely addressing affordability versus merely creating a framework for collecting fees. Discussions will need to navigate these complexities, balancing state responsibility in providing essential services while also ensuring that financial mechanisms do not inadvertently add to the existing challenges faced by low-income families.