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SB 642

Economic development: other; the management and budget act; amend to reflect elimination of the Michigan strategic fund. Amends sec. 125 of 1984 PA 431 (MCL 18.1125). TIE BAR WITH: SB 0631'25

2025-2026 Regular Session Introduced by Thomas Albert and 1 co-sponsor

Michigan bill removes Michigan Strategic Fund references from state budget law, potentially eliminating a key economic development incentive tool without clarifying replacement mechanisms.

REFERRED TO COMMITTEE ON GOVERNMENT OPERATIONS
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Bill Summary · SB 642

Legislative bill overview

SB 642 amends Michigan's Management and Budget Act to remove references to the Michigan Strategic Fund, which appears to be undergoing elimination or restructuring. The bill is tied to companion legislation (SB 631) and represents a technical update to state law following changes to the fund's status or operations.

Why is this important

The Michigan Strategic Fund has historically been a key economic development tool used to attract business investment and support job creation initiatives. Changes to this fund could affect how the state pursues economic development, attracts corporations, and allocates resources for business incentives—directly impacting workforce development and tax revenue strategies.

Potential points of contention

  • Loss of economic development flexibility: Eliminating or drastically changing the Strategic Fund may reduce the state's ability to offer competitive business incentives compared to other states, potentially affecting business recruitment efforts
  • Unclear replacement mechanism: The bill doesn't specify what replaces the Strategic Fund's functions, raising questions about whether economic development priorities will simply be abandoned or transferred elsewhere
  • Tied legislation dependency: The bill's effectiveness depends on understanding SB 631, creating uncertainty about the full scope of changes until both bills are reviewed together

Compiled from official sources — confirm details with the bill’s official record.

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