House Passes Budget: Includes More Money for Roads and Public Safety, Cuts Revenue Sharing
By: John LaMacchia, August 29, 2025

This week the House passed a budget that invested in roads and public safety but also cut statutory revenue sharing. We need your voice to make it known that cutting revenue sharing is unacceptable. 

We have now seen proposals from the House and Senate, as well as the Governor. There are major differences between these budgets that will need to be negotiated before the end of September to avoid a government shutdown. 

We will continue to advocate for a budget that includes a significant road funding proposal and sets aside dedicated revenue to keep our communities safe and secure. We will also be clear that should not happen at the expense of revenue sharing.  

Currently, cities, villages, and townships are receiving $333M in statutory revenue sharing payments. The Governor’s proposal increases that to $345M (4% increase), the Senate’s proposal increases that to $366M (10% Increase), and the House proposal reduces that to $293M (12% cut). 

The following statement was issued by League Board President, Mayor Don Gerrie of Sault Ste. Marie, on behalf of the Michigan Municipal League in response to the House budget.  

“The League desires a state budget that fosters economically vibrant communities that are well resourced, safe and secure, and that cultivate deep connections between people and place. This requires investment in roads, public safety, and ALL services that our residents and businesses rely on.  

We must work together to find common ground on increasing transportation funding by $3 billion with a focus on neighborhood roads, dedicating resources to ensure our communities are safe, and adopting a revenue sharing trust fund that prioritizes the stability of statutory revenue sharing over cuts.  

For over a decade, we have been advocating to return funding for statutory revenue sharing to cities and villages to 2011 levels prior to devastating cuts. After years of working in a bipartisan manner, we finally achieved that last year. When we are looking to attract and retain talent in Michigan, it is not the time to roll back these gains.   

Communities are essential partners in our collective effort to build a better Michigan. As their voice in Lansing, we continue to commit to finding a solution and are ready to work in collaboration with the administration and legislative leaders to pass a budget that improves quality of life, provides economic security, and invests in our infrastructure.” 

With less than 5 weeks before the budget needs to be finalized, we must use our voices to be heard. The message is simple: yes on roads, yes on public safety, no on cuts to revenue sharing. It must be made clear that any cuts to revenue sharing are unacceptable. We recognize there are significant new resources in this budget for local roads and public safety, but we should not be shifting vital local resources from one bucket to provide increases in another.  

While the passage of the House budget is just a step in the process, we must understand that cuts are a real possibility with this proposal. If we are going to be successful in protecting revenue sharing, every legislator in the House and Senate needs to hear from us. 

We are asking you to reach out to your legislator and let them know that this budget must invest in roads, public safety, and ALL services that our residents and businesses rely on, and that we oppose any cuts to revenue sharing. 

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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