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Bill

SB 109

State management: funds; cap and distribution of funds in the disaster and contingency fund; modify, and create new fund. Amends title & secs. 18 & 19 of 1976 PA 390 (MCL 30.418 & 30.419) & adds sec. 18a.

2025-2026 Regular Session Introduced by Rosemary Bayer and 3 co-sponsors

SB 109 establishes caps on Michigan's disaster and contingency fund reserves and creates a distribution mechanism for excess accumulated funds.

referred to Committee on Appropriations
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Bill Summary · SB 109

Legislative bill overview

SB 109 modifies Michigan's disaster and contingency fund management by establishing new caps on fund accumulation and creating a mechanism for distributing excess funds. The bill amends the state's fiscal management law to specify how these emergency reserves should be built up, maintained, and potentially allocated when they exceed specified thresholds.

Why is this important

States maintain disaster and contingency funds as financial buffers for emergencies and unexpected crises. How these funds are managed affects the state's fiscal flexibility during emergencies, tax policy decisions, and whether surplus public money gets returned to taxpayers or redirected to other priorities. This directly impacts Michigan's budgeting practices and emergency preparedness capacity.

Potential points of contention

  • Fund cap levels: Disagreement over what constitutes an appropriate maximum balance—too low reduces emergency reserves, too high locks up money that could fund programs or reduce taxes
  • Distribution mechanism: Dispute over whether excess funds should automatically return to taxpayers, go to specific programs, or remain under legislative discretion
  • Emergency preparedness vs. fiscal conservatism: Tension between maintaining robust reserves for disasters versus freeing up capital for current spending needs or tax relief

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

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