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HB 6146

State finance: budgets; distribution of the countercyclical budget and economic stabilization fund; make subject to section 8 of the motor fuel tax act. Amends sec. 352 of 1984 PA 431 (MCL 18.1352). TIE BAR WITH: HB 6147'26

2025-2026 Regular Session Introduced by Joey Andrews and 3 co-sponsors

HB 6146 ties transfers to the stabilization fund to growth rates and CREC estimates, with new caps on withdrawals and an approval-by-appropriation process.

bill electronically reproduced 06/30/2026
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Bill Summary · HB 6146

Summary of HB 6146 (Michigan, 2025-2026)

Purpose and intent

  • HB 6146 amends Section 352 of the Management and Budget Act (1984 PA 431; MCL 18.1352) to modify how funds are transferred to and from the state’s countercyclical budget and economic stabilization fund, and to tie these provisions to the Motor Fuel Tax Act.
  • The bill is designed to govern the triggers, limits, and procedures for allocating resources to the stabilization fund based on the state’s annual growth rate and consensus revenue estimates.
  • It is a tie-bar to HB 6147 (noted in the bill as “request no. H07245’26”), meaning the effectiveness of HB 6146 is contingent on enactment of HB 6147.

Key provisions and changes

  1. Trigger for transfers to the fund

    • If the annual growth rate exceeds 2%, the portion above 2% (the excess) must be multiplied by the total State General Fund-General Purpose Revenue (GF-GPR) for the fiscal year ending in the current calendar year. This product determines the amount to be transferred from the GF-GPR to the countercyclical/ stabilization fund in the fiscal year beginning in the current calendar year.

  2. Limitations on appropriations from the fund

    • Absent other provisions in section 358, the legislature may not appropriate GF-GPR funds for a fiscal year when the annual growth rate for the calendar year ending is estimated to be greater than 0% at the most recent Consensus Revenue Estimating Conference (CREC).
    • If the growth rate is estimated to be less than 0%, the legislature may appropriate no more than 25% of the prior fiscal year ending balance in the fund (as reported in the Comprehensive Annual Financial Report) for the fiscal year ending in the current calendar year.
    • If the growth rate remains less than 0% in consecutive calendar years, for each fiscal year ending in those years, the legislature may appropriate no more than 25% of the available fund balance at the beginning of the first fiscal year ending in the first calendar year with a growth rate less than 0%.

  3. Transfers and appropriations process

    • The legislature must provide for transfers into or out of the fund via an appropriations act.

  4. Relation to the Motor Fuel Tax Act

    • This section is subject to § 8 of the Motor Fuel Tax Act (2000 PA 403, MCL 2007.1008), indicating coordination or compliance with that tax act’s provisions.

  5. Effective date and enactment condition

    • The act’s enactment is contingent on the enactment of House Bill 6147 (103rd Legislature), establishing a condition precedent for HB 6146 to take effect.

Affected entities and stakeholders

  • State government and the Legislature: The primary decision-makers for when and how much to appropriate from the countercyclical/ economic stabilization fund, within the new triggers and limits.
  • State General Fund-General Purpose Revenue (GF-GPR) recipients and the stabilization fund’s balance: Transfers, limits, and timing could affect overall state savings and available resources for stabilization purposes.
  • State residents and taxpayers: Indirect impacts through potential changes in revenue stabilization, which can influence long-term fiscal stability, bond ratings, and exposure to economic cycles.
  • Constituents affected by motor fuel tax requirements: Because the act references the Motor Fuel Tax Act, there could be cross-references to tax policy and related considerations.

Procedural and timeline aspects

  • Introduction and referral: Introduced June 30, 2026; referred to the Committee on Appropriations.
  • Action timeline: As a tie-bar (conditioned on HB 6147), HB 6146’s effective date depends on the passage of HB 6147.
  • Fiscal planning controls: The bill introduces CREC-based estimates as a key determinant for appropriations from the fund, and it prescribes capped withdrawal rules when growth is negative.
  • Funding mechanics: Requires an appropriations act to authorize transfers into or out of the stabilization fund.

Notes

  • The bill’s stated language includes some drafting issues (e.g., “When If” and “shall not”/“must” phrasing) that may be clarified in committee edits.
  • The substantive policy centers on strengthening the governance around the countercyclical budget and stabilization fund, tying transfers to growth rates and CREC estimates, and coordinating with existing tax provisions via the Motor Fuel Tax Act.

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

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