State budget talks could increase revenue sharing to Eaton County, Rep. Gina Johnson says

Representative Gina Johnson, whose legislative district includes parts of Eaton County, briefed the county’s Ways and Means Committee on the 2025 state budget outlook and said the House budget proposal includes increased revenue sharing that could bring additional dollars to local governments.

Johnson said the House has passed a package that "guaranteed schools K through 12 funding" and increased per-pupil funding "to over $10,000," and that the proposal also addresses corrections, the Michigan State Police, mental-health services, school safety programs and veterans services. "We're in the early stages of the budget discussion," Johnson said, and the House was waiting for the Senate to concur.

Why it matters: Eaton County commissioners pressed Johnson for clarity about how much the county might receive and how quickly. Local revenue-sharing increases would ease county budget pressure in a year when commissioners said they expect to consider cuts if a county public-safety millage vote fails. Johnson said the House roads plan includes an increase in revenue sharing and she is "fighting for an increase," but final details hinge on the Senate and the governor.

House proposal and surplus. Johnson said the state’s January revenue estimates showed income- and sales-tax receipts up, and she noted a reported $1.1 billion surplus earlier this year. "Income tax revenue and the sales tax revenue is projected to increase. Therefore, we should have more money to work with," she said. She also confirmed a House proposal to lower the income-tax rate from 4.25% to 4.05%.

Local questions and state limits. Commissioners asked whether the current revenue-sharing level is protected. "By safe you mean it's not, won't be reduced?" one commissioner asked; Johnson replied the current level "is safe" and that most legislators support at least keeping revenue-sharing whole while she and others push for increases. Commissioners also asked whether surplus commitments already made at the state level limit available funds; Johnson said she could not speak to specific prior commitments but reiterated projected tax revenue increases.

On municipal insolvency and state intervention. Commissioners asked about the process if a Michigan county faces insolvency. Johnson summarized the state procedure: a financial review team would assess the situation and, if a financial emergency were declared, the governor could trigger corrective actions and options for restructuring. "The City of Detroit went through it," Johnson said when asked for examples.

What’s next. Johnson urged local officials to identify essential services and prepare budgets accordingly. "If we can fulfill essential services — safety, courts, your roads, your infrastructure — everything else is on the table to consider a cut or revision," she said. She also encouraged commissioners to lobby the House and Senate on behalf of Michigan counties.

Speakers

- Gina Johnson, State representative, Michigan House of Representatives (government) - Commissioner Holmes, Eaton County commissioner (government) - Commissioner Murphy, Eaton County commissioner (government)

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Provenance

{"transcript_segments":[{"block_id":"167.01","local_start":0,"local_end":220,"evidence_excerpt":"Chairman. Good to be with you again. It's always good to be with my Eaton County part of the, big districts spread across part of Michigan. Revenue sharing is a topic that, many, bipartisan, there's much support, bipartisan support for increasing it to go to the local areas.","reason_code":"topicintro"},{"block_id":"311.54","local_start":0,"local_end":150,"evidence_excerpt":"I will do everything in my power to secure an increase. Now I will tell you that everybody both sides of the aisle and the House and Senate have stated at least that the revenue sharing that's current is safe.","reason_code":"topicfinish"}]}