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Michigan Municipal League Unveils 2025-26 Legislative Priorities to Foster Thriving Communities

Posted on January 24, 2025 by John LaMacchia

This week, the Michigan Municipal League released its legislative priorities for the 2025-26 session. The document details eight policies that local government leaders have identified as necessary to foster thriving communities in Michigan.

Key components the League’s legislative priorities include:

Creation of a Revenue Sharing Trust Fund

The League emphasizes the urgent need for a stable and predictable funding source for local governments. The proposed Revenue Sharing Trust Fund will allocate a percentage of the state sales tax to statutory revenue sharing and place it in a dedicated trust fund that will protect the provision of essential services like public safety, water and sewage infrastructure, and recreational opportunities. This initiative has previously received broad bipartisan support for its efforts to support local services and community growth.

Establishment of a Neighborhood Roads Fund

While Michigan has invested billions of dollars to improve state roads in recent years, local road improvements have lagged far behind. The League is proposing to address the growing wear on Michigan’s neighborhood streets through the creation of a Neighborhood Roads Fund financed by a modest 50-cent Retail Delivery Fee. This dedicated funding stream is expected to generate approximately $275 million annually for neighborhood roads. By focusing on neighborhood streets, the initiative aims to address the concerns every resident sees outside their front door.

Continued Funding for the Revitalization and Placemaking (RAP) Program

Building on the success of previous years, the League calls for ongoing investment in the Revitalization and Placemaking (RAP) Program. This initiative provides resources for projects that promote population and tax growth, invest in new housing options, and enable business creation. By allocating $50 million annually from corporate income tax revenue, the RAP program will continue to create vibrant spaces that help attract and retain residents and support Michigan’s growth efforts.

Other policy priorities the League will focus on this year include:

  • Addressing the interaction between Headlee and Proposal A
  • Implementing an Employer Housing Tax Credit
  • Protecting locals’ ability to regulate short-term rentals
  • Enacting the Michigan Mobility Trust Fund
  • Codifying the process for implementing a stormwater utility

The League invites members, lawmakers, community leaders, and residents to learn more about these policy initiatives and support our efforts to foster thriving communities in Michigan. More information about the League’s 2025-26 legislative priorities is available at mml.org/advocacy.

John LaMacchia is the League’s director of state & federal affairs. He can be reached at [email protected] or 517-908-0303.

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