Bill
SB 912
Create and reorganize state trust funds to manage revenues, establish a revenue sharing fund and targeted funds, and set grant and distribution rules.
SB 912 (2025-2026) – Michigan, State Management: Funds; creation of revenue sharing trust fund; tie-bar with SB 559 & SB 561
Summary purpose
- Create and reorganize state trust funds to manage and allocate certain revenues, with a focus on establishing a revenue sharing trust fund and related targeted funds. The bill specifies definitions, fund names, and the framework for allocation, operation, investment, and expenditures of these funds, as well as administration of grant programs and duties of state/local officials.
Key provisions and changes
- Amended definitions (Sec. 2) to establish or reference multiple funds:
- Community District Education Trust Fund (section 12)
- Flint Settlement Trust Fund (section 11)
- Local Government Reimbursement Fund (section 3a)
- Medicaid Benefits Trust Fund (section 5)
- Michigan Merit Award Trust Fund (section 9)
- Michigan Opioid Healing and Recovery Fund (section 3)
- Revenue Sharing Trust Fund (section 11a)
- Strategic Outreach and Attraction Reserve Fund (section 4)
- 21st Century Jobs Trust Fund (section 7)
- Tobacco Settlement Revenue (definition tied to existing master settlement agreement)
- The act is structured to create funds, allocate revenues among them, and govern their operation, investment, expenditure, grant administration, and related duties.
- Enacting section 1 (tie-bar): The bill’s effectiveness is contingent upon the passage of Senate Bills 559 and 561 (i.e., it does not take effect unless those companion bills are enacted).
- The bill preserves references to existing programs and relationships with Medicaid and other programs while enabling new or reorganized trust funds.
- The text explicitly provides for the powers and duties of state officials and local governmental officers/entities in relation to these funds, including grant administration and fund management.
Affected parties and impact
- State government: Creation/establishment of new trust funds and the restructured framework for revenue sharing and grants. Requires coordination across departments (e.g., health and human services for Medicaid-related funds).
- Local governments: Potentially affected by the revenue sharing mechanism and how distributions are allocated from the revenue sharing trust fund, depending on the appropriation level and statutory formulas.
- Public programs: Funds tied to Medicaid, Flint settlement, opioid recovery, education (community district), and other targeted purposes may experience new funding structures and allocation rules.
- General public: Implications for state budget priorities and grant programs that rely on these funds.
Procedural and timeline considerations
- The act is introduced on April 21, 2026, by Senator Veronica Klinefelt and referred to Appropriations.
- Final effectiveness is contingent upon enactment of SB 559 and SB 561 (tie-bar requirement); without those bills, this act would not take effect.
- Legislative history indicates subsequent committee actions, with favorable report and immediate effect recommended, followed by committee of the whole review.
Fiscal notes and potential impact (per provided analysis)
- The fiscal impact on local units is indeterminate and depends on:
- The level of payments appropriated
- Whether the new revenue is fully replacing existing nonconstitutional revenue sharing
- Whether the revenue is appropriated and the existing nonconstitutional revenue sharing is altered
- Estimates range from no impact in FY 2026-27 (if revenue is not appropriated) to a potential $626.4 million increase in local unit revenue if the new revenue is deposited into the trust and fully appropriated without altering existing nonconstitutional revenue sharing.
- Regardless of net local impact, the bills would guarantee the current nonconstitutional revenue sharing formula for FY 2025-26 and future years to the extent funding is appropriated. Final distributions would depend on local factors (taxable value, millage rates, population changes).
Sponsorship
- Primary sponsor: Senator Veronica Klinefelt
- Co-sponsor: Senator Veronica Klinefelt (noted in list; the same named sponsor appears as co-sponsor)
Note: This summary reflects the bill text and accompanying fiscal analysis provided. It does not constitute legal interpretation or endorsement.
Compiled from official sources — confirm details with the bill’s official record.
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