Inside 208

Since the passage of the budget a few weeks ago, there have been several questions about the impact on local budgets. A few different preliminary estimates were available, but we have been waiting for the state departments to provide their estimates. MDOT and Treasury have now both officially released their estimates for road funding and revenue sharing respectively.

Road Funding Estimates:

Click here for the latest road funding estimates from MDOT. Below are a couple of things to consider when reviewing these estimates.

• These are only estimates and payments will vary based on actual collection of fuel tax, registration fees, and the new marijuana wholesale tax.
• The two most important columns to review are “FY26 Total” and “FY27 Total”. These reflect your increase over current year funding and not the total dollar amounts you will receive.
• These estimates are only for FY 26 and FY 27 even though the new transportation package is phased in over five years. Estimates are difficult to predict in years three through five and therefore have not been provided.
• The reduction of income tax on this document is not a loss of revenue, it reflects a shift to the corporate income tax and is now reflected in the Neighborhood Road Fund.
• It is anticipated that payments will fluctuate throughout the year, with smaller payments to begin the state fiscal year and larger payments towards the end of the state fiscal year due to the delay in the distribution of Corporate Income Taxes (CIT) for roads.

Revenue Sharing Estimates:

Click here for your annual estimated constitutional and statutory revenue sharing payments. This document includes the actual FY 25 numbers and the estimated FY 26 numbers. This provides a side-by-side comparison of constitutional and statutory revenue sharing. These estimated do not include the new Public Safety Revenue Sharing resources.

For a more detailed bimonthly payment estimate, click here. To navigate these estimates please follow these steps.

• From the drop-down menu select the county where your municipality resides.
• Select your municipality from the drop-down menu.

Please remember that the constitutional payments are only estimates and will fluctuate based on actual sales tax collected.

As additional information or estimates are provided by the departments, we will be sure to make that available.

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