Budget Update: Where We Stand on Revenue Sharing and How You Can Help
By: John LaMacchia,
September 29, 2025
While the Governor, Speaker, and Senate Majority leader announced a deal to pass the budget by October 1, the final budget agreement is still very fluid and currently in the final stages of negotiation. Concern remains that revenue sharing, both constitutional and statutory, could be reduced.
Constitutional revenue sharing is projected to be cut by $95M (8.8%) because of no longer charging sales tax on gas. Previously, there was broad agreement to backfill this loss and hold local government harmless, but that may no longer be the case.
Cuts to statutory revenue sharing that were included in the House budget, also remain a possibility. These cuts amount to a 12% reduction, $40M for cities, villages, and townships, and $35M for counties.
In this moment, there is no time to delay, we need you to reach out to your legislators with one simple message.
Hold constitutional and statutory revenue sharing harmless.
These cuts will affect communities in many different ways and should not be justified by an increase in restricted funding for roads and public safety.
Now is the time for you to act and continue to have our voices heard. Tell your legislator to stand up for the communities they represent and protect revenue sharing.
John LaMacchia is the League’s director of state & federal affairs. He can be reached at [email protected] or 517-908-0303.