WeVote
Log In

Bill

Bill

SB 426

Individual income tax: other; employment withholdings redirected from the state to certain community colleges for the new jobs training program; clarify application to professional employer organizations. Amends secs. 703, 705 & 711 of 1967 PA 281 (MCL 206.703 et seq.). TIE BAR WITH: SB 425'25

2025-2026 Regular Session Introduced by Joe Bellino

Michigan redirects portion of state income tax withholdings to community colleges for workforce training, affecting state budget and employer compliance for professional employer organizations.

REFERRED TO COMMITTEE ON APPROPRIATIONS
#individualincometax:other
0
WeVote Research Nonpartisan
Bill Summary · SB 426

Legislative bill overview

SB 426 redirects a portion of individual income tax withholdings from the state budget to Michigan community colleges to fund a "new jobs training program." The bill amends tax code sections governing income tax collection and clarifies how professional employer organizations (PEOs) are treated under this redirected withholding system.

Why is this important

This bill would create a dedicated revenue stream for workforce development at community colleges by diverting state income tax funds. It directly affects state budget allocations and could either expand job training capacity or reduce general state revenues depending on the withholding percentage redirected.

Potential points of contention

  • State budget impact: Redirecting tax revenue reduces funds available for other state programs (education, healthcare, infrastructure) unless offset by spending cuts or tax increases elsewhere
  • Implementation with PEOs: Clarifying PEO treatment adds complexity; employers using PEOs may face different compliance requirements than traditional employers, raising fairness questions
  • Program accountability: The bill doesn't specify performance metrics, funding caps, or oversight mechanisms for how community colleges use the diverted funds, raising concerns about fiscal responsibility
  • Tie-bar dependency: Linkage to SB 425 means this bill's passage depends on companion legislation, making the full scope of intended changes unclear from this bill alone

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

Sign in to ask a question.