Appropriations: supplemental; funding for grants for finance, human resources, or information technology operations; provide for. Creates appropriation act.

2025-2026 Regular Session Introduced by Amos O'Neal and 1 co-sponsor

Creates a one-time $11.5M Back-Office Grant Program to boost Michigan local governments' finance, HR, and IT ops. Administered by a contracted nonprofit with local cost sharing.

bill electronically reproduced 08/26/2025

#appropriations:supplemental

Purpose and intent

HB 4811 is a supplemental, one-time appropriations bill that establishes and funds a statewide “back‑office grant program” to help local units of government strengthen finance, human resources (HR), and information technology (IT) operations. The program is administered under the Michigan Department of Treasury and is intended to help local governments address emergent needs, critical operations, staffing challenges, and cybersecurity/resiliency needs.

Appropriation and fiscal impact

Total one-time appropriation: $11,500,000 (State General Fund/General Purpose).

Amount forecasted to flow to local units: $10,925,000.

Administrative cap: up to 5% of the appropriation ($575,000) may be paid to the contracted nonprofit administrator.

State spending from state sources (per constitution): $11,500,000 for FY ending Sept 30, 2025.

The appropriation is designated a work project; unexpended funds do not lapse until project completion (tentative completion date: Sept 30, 2029).

Key provisions

Establishes a Back‑Office Grant Program (administered by Treasury) to provide grants for local government needs in:

Complex, unanticipated, or emergent needs;
Investments in critical business operations;
HR programs to improve recruitment and retention;
Cybersecurity and resiliency testing of IT infrastructure;
Alternative staffing when recruitment/retention fails.

Treasury must contract with a “qualified nonprofit” (defined as a nonprofit association representing counties in Michigan) to administer the program; Treasury retains oversight authority.

The administrator may receive no more than 5% of the appropriation for administration.

The contracted nonprofit, in consultation with Treasury, must:

Publish an application, approval, and compliance process;
Establish local match requirements that account for local financial need;
Authorize expenditure of grant funds to a Department of Treasury‑contracted qualified accounting firm (or other department‑approved firms) on behalf of approved local units.

$2,875,000 must be disbursed in advance to the qualified nonprofit; used funds must be replenished within 30 days after appropriate reporting.

The Management and Budget Act (1984 PA 431) governs administration and oversight.

Who is affected

Eligible recipients: local units of government (cities, villages, townships, counties, and local/intergovernmental authorities and agencies).

Administrator: a nonprofit association representing counties (selected via contract).

Department of Treasury: program oversight and contracting responsibilities.

Approved accounting firms: will receive grant funds to perform allowed services.

Timeline and procedural status

Filed: March 13, 2025.

Passed the House: May 14, 2025 (read 3rd time; recorded votes and journal statements on that date).

Bill electronically reproduced/reintroduced Aug 26, 2025 and referred to House Appropriations Committee.

Project tentative completion date: September 30, 2029.

This bill creates a targeted, time‑limited funding stream to strengthen local government back‑office capacity with state oversight and a contracted nonprofit administrator, while requiring local cost‑sharing that considers financial need.

Bill