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State rep. tells Clawson officials road funding rises but Medicaid pressures remain
Summary
State Rep. Sharon McDonald briefed the council on 2025 legislative outcomes: a split legislature reduced the number of public acts enacted, the state moved $7 billion to cover Medicaid gaps, and Clawson will see increased road funding (listed at $455,000) and an estimated $95,000 public safety payout.
State Representative Sharon McDonald (26th District) told the Clawson City Council Jan. 6 that Michigan’s split legislature and weaker revenue forecasts shaped a challenging 2025 session but produced notable increases in infrastructure funding that will affect Clawson.
McDonald said the legislature transferred $7,000,000,000 from other areas to try to fill a Medicaid funding gap and that the budget included a significant boost to road funding. “We moved $7,000,000,000 from other areas to try to fill that Medicaid gap,” she said. She called out a roughly $455,000 increase earmarked for local road funding in Clawson and estimated the city would receive about $95,000 from the new Public Safety Trust Fund to supplement police budgets.
She outlined changes to gas taxation and a new excise approach: the 6% sales tax on gas was ended and a 21-cent-per-gallon excise tax for roads was introduced, with the stated intention of directing new revenue to infrastructure. McDonald also described last-term actions including a controversial $645 million set of project defundings and proposed bills she is sponsoring that could affect local school bond borrowing and data center regulation.
McDonald invited the council to submit legislatively directed spending requests for the fiscal year 2027 budget cycle and offered to remain in contact about the status of projects that may have been affected by late-year appropriation changes.
