City, Village, and Township Revenue Sharing (CVTRS) Program

For fiscal year (FY) 2025, the Legislature continued the CVTRS program payments. However, the program requirements and payment structure have been modified to provide additional revenue sharing funding to all local units. All local units are eligible for these payments.

The FY 2025 CVTRS program includes the following payments:

• CVTRS-Standard Payments – Local units that received an FY 2024 CVTRS payment
• (NEW) 3-Factor Formula Payments – All local units
  • Taxable Value Payment
  • Weighted Population Payment
  • Yield Equalization Payment

Use of Funds:

• A city, village, or township that has a retirement pension benefit system in underfunded status (under Section 5 of 2017 Public Act 202, MCL 38.2805) must allocate, to the local unit’s pension unfunded liability, an amount equal to 50% of the difference between the local unit’s FY 2025 total CVTRS payment amount and the local unit’s FY 2024 total eligible CVTRS payment amount
  • A city, village, or township that has issued a municipal security (under Section 518 of 2001 Public Act 34, MCL 141.2518) is exempt from allocating FY 2025 CVTRS payment amounts to the local unit’s pension unfunded liability
• A city, village, or township that does not have a retirement benefit system in underfunded status may use the funds for any purpose.

Link to Detailed Guidance: FY 2025 CVTRS Detailed Guidance

Link to Revenue Sharing Projections: FY 2025 Constitutional CVTRS Projections 9-20-24

Additional Information

• Detailed information and FY 2025 CVTRS projections can be found on Treasury’s CVTRS website https://www.michigan.gov/treasury/local/share/evip
• If you have any questions, feel free to contact the Revenue Sharing and Grants Division by phone at 517-335-7484 or by email at [email protected]

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