2025 Senate Bill 173

Appropriations: general government; appropriations for fiscal year 2025-2026; provide for.

A bill to make appropriations for the legislature, the executive, the department of the attorney general, the department of state, the department of treasury, the department of technology, management, and budget, the department of civil rights, and certain other state purposes for the fiscal year ending September 30, 2026; and to provide for the expenditure of the appropriations.

Mackinac Center Analysis

Senate Bills 162-181 are templates for the upcoming FY '26 budget. None of these bills have any real dollar figures attributed to them. They will be used to fill in the budget as it progresses through negotiations this year.

Introduced in the Senate

March 18, 2025

Introduced by Sen. John Cherry (D-27)

Referred to the Committee on Appropriations

May 6, 2025

Reported with substitute S-2

May 8, 2025

Referred to the Committee of the Whole

May 14, 2025

Reported with substitute S-2

1. Amend page 27, line 28, by striking out “Community crime reduction initiative” and inserting “community aid for responders and emergency services”.

2. Amend page 31, line 24, by striking out “Community crime reduction initiative” and inserting “community aid for responders and emergency services”.

3. Amend page 27, line 28, by striking out “60,000,000” and inserting “70,800,000 and adjusting the subtotals, totals, and section 201 accordingly.

4. Amend page 31, line 24, by striking out “40,000,000” and inserting “47,200,000” and adjusting the subtotals, totals, and section 201 accordingly.

5. Amend page 33, line 2, by striking out “community crime reduction initiative” and inserting “community aid for responders and emergency services”.

6. Amend page 126, line 8, after “more” by inserting “and less than 600,000 according to the most recent decennial federal census”.

7. Amend page 126, following line 10, by inserting “(c) $18,000,000.00 to a city with a population greater than 600,000 according to the most recent decennial federal census for the purposes described in subsection (4)”.

8. Amend page 125, line 28, after “for” by striking out “community crime reduction initiative” and inserting “community aid for responders and emergency services”.

9. Amend page 126, line 11, after “the” by striking out “community crime reduction initiative” and inserting “community aid for responders and emergency services”.

10. Amend page 126, line 17, after “the” by striking out “community crime reduction initiative” and inserting “community aid for responders and emergency services”.

11. Amend page 126, line 24, after “the” by striking out “community crime reduction initiative” and inserting “community aid for responders and emergency services”.

12. Amend page 127, line 8, after “receive” by striking out “community crime reduction initiative” and inserting “community aid for responders and emergency services”.

13. Amend page 128, line 4, after “the” by striking out “community crime reduction initiative” and inserting “community aid for responders and emergency services”.

14. Amend page 25, following line 7, by inserting:

“Liability reimbursement

100”

and adjusting the subtotals, totals, and section 201 accordingly.

15. Amend page 133, following line 15, by inserting:

“Sec. 949o. (1) From the funds appropriated in part 1 for liability reimbursement, the department shall reimburse county treasurers on a case-by-case basis for the cost of liabilities due to a court order or settlement issued for actions taken by a county treasurer that was in compliance with state law.

(2) In order to receive a reimbursement as described in subsection (1), a county treasurer must demonstrate in writing to the department of treasury that the liability is due to a court order or settlement resulting from action that was in compliance with Michigan statute at the time it occurred.”

Substitute S-2 concurred in by voice vote

Amendment offered by Sen. Lana Theis (R-22)

1. Amend page 11, line 9, by striking out “31,728,300” and inserting “31,978,300”.

2. Amend page 11, line 10, by striking out “32,174,800” and inserting “32,424,800”.

3. Amend page 13, line 1, by striking out “22,069,800” and inserting “22,319,800”.

4. Amend page 70, following line 19, by inserting:

“Sec. 624. From the funds appropriated in part 1 for auditor general field operations, a total of $250,000 of additional funding provided for fiscal year 2025-26 must be used by the office of the auditor general for the purpose of conducting more audits to clear backlogged cases with the goal of completing more audits in a fiscal year.”.

The amendment failed 17 to 19 (details)

Amendment offered by Sen. Aric Nesbitt (R-20)

1. Amend page 3, line 14, by striking out “119,429,600” and inserting “119,529,600”, and adjusting the subtotals, totals, and section 201 accordingly.

2. Amend page 61, following line 24, by inserting:

“Sec. 327. From the funds appropriated in part 1 for operations, the department of attorney general shall expend no less than $100,000.00 GF/GP to investigate foreign national voting in Michigan elections.”.

The amendment failed by voice vote

Amendment offered by Sen. Jonathan Lindsey (R-17)

1. Amend page 133, following line 15, by inserting:

“Sec. 949o. From the funds appropriated in part 1, the department of treasury shall ensure that state funds are withheld from any entity not in compliance with Executive Order 14151 issued by President Donald Trump on January 20, 2025.”

The amendment failed 17 to 19 (details)

Amendment offered by Sen. Roger Hauck (R-34)

1. Amend page 43, following line 20, by inserting:

“Sec. 225. It is the intent of the legislature that the department maximize the efficiency of the state workforce and, where possible, prioritize in-person work, and post its in-person, remote, or hybrid work policy on its website.”

The amendment failed 17 to 19 (details)

Amendment offered by Sen. Thomas Albert (R-18)

1. Amend page 37, line 9, by striking out all of subsection (d).

The amendment failed by voice vote

Amendment offered by Sen. Thomas Albert (R-18)

1. Amend page 56, line 22, by striking out “Sec. 314. The department of attorney general may spend not more than $2,697,100.00 of the funds appropriated in part 1 from the lawsuit settlement proceeds fund for the payment of 1 or more of the following:

(a) Court judgements, orders, settlements, arbitration awards or other administrative decisions.

(b) Attorney fees, litigation costs, or investigation costs incurred by the office of the governor, the department of attorney general, the governor, the attorney general, a department, an agency, or a principal officer of a department, when acting in an official capacity.”.

The amendment failed by voice vote

Amendment offered by Sen. Thomas Albert (R-18)

1. Amend page 8, following line 3, by striking out lines 4 through line 1 of page 13 and inserting the following:

Sec. 104. EXECUTIVE OFFICE

(1) APPROPRIATION SUMMARY

Full-time equated unclassified positions

10.0

Full-time equated classified positions

86.2

GROSS APPROPRIATION

$

9,337,100

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers

0

ADJUSTED GROSS APPROPRIATION

$

9,337,100

Federal revenues:

Total federal revenues

0

Special revenue funds:

Total local revenues

0

Total private revenues

0

Total other state restricted revenues

0

State general fund/general purpose

$

9,337,100

(2) EXECUTIVE OFFICE OPERATIONS

Full-time equated unclassified positions

10.0

Full-time equated classified positions

86.2

Unclassified salaries–FTEs

8.0 $

1,621,800

Governor

159,300

Lieutenant governor

111,600

Executive office–FTEs

86.2

7,444,400

GROSS APPROPRIATION

$

9,337,100

Appropriated from:

State general fund/general purpose

$

9,337,100

Sec. 105. LEGISLATURE

(1) APPROPRIATION SUMMARY

GROSS APPROPRIATION

$

231,881,000

Interdepartmental grant revenues:

Total interdepartmental grants and intradepartmental transfers

7,334,800

ADJUSTED GROSS APPROPRIATION

$

224,546,200

Federal revenues:

Total federal revenues

Special revenue funds:

Total local revenues

Total private revenues

467,700

Total other state restricted revenues

7,898,400

State general fund/general purpose

$

216,180,100

(2) LEGISLATURE

Senate

$

50,540,800

Senate automated data processing

3,194,200

Senate fiscal agency

4,736,300

House of representatives

74,223,800

House automated data processing

3,194,200

House fiscal agency

4,736,300

GROSS APPROPRIATION

$

140,625,600

Appropriated from:

State general fund/general purpose

$

140,625,600

(3) LEGISLATIVE COUNCIL

Independent citizens redistricting commission

$

2,992,300

Legislative corrections ombudsman

1,585,800

Legislative council

16,472,500

Legislative service bureau automated data processing

3,712,100

Michigan veterans facility ombudsman

368,600

National association dues

703,700

Sentencing commission

100

Tribal legislative liaison

500,000

Worker’s compensation

177,100

GROSS APPROPRIATION

$

26,512,200

Appropriated from:

State general fund/general purpose

$

26,512,200

(4) LEGISLATIVE RETIREMENT SYSTEM

Actuarially determined contribution

$

100

General nonretirement expenses

6,280,100

GROSS APPROPRIATION

$

6,280,200

Appropriated from:

Special revenue funds:

Court fees

1,461,400

State general fund/general purpose

$

4,818,800

(5) PROPERTY MANAGEMENT

Binsfeld Office Building and other properties

$

9,865,000

Cora Anderson Building

6,825,000

GROSS APPROPRIATION

$

16,690,000

Appropriated from:

State general fund/general purpose

$

16,690,000

(6) STATE CAPITOL HISTORIC SITE

Bond/lease obligations

$

100

General operations

6,574,100

Restoration, renewal, and maintenance

3,961,100

GROSS APPROPRIATION

$

10,535,300

Appropriated from:

Special revenue funds:

Private – gifts and bequests

467,700

Capitol historic site fund

3,961,100

State general fund/general purpose

$

6,106,500

(7) OFFICE OF THE AUDITOR GENERAL

Unclassified positions--FTEs

$

433,500

Field operations

30,804,200

GROSS APPROPRIATION

$

31,237,700

Appropriated from:

Interdepartmental grant revenues:

IDG, commercial mobile radio system emergency telephone fund

44,900

IDG, contract audit administration fees

77,000

IDG, deferred compensation funds

110,800

IDG, emp ben div postemployment life insurance benefit

23,000

IDG from LEO, self-insurers security fund

97,000

IDG from MDHHS, human services

37,400

IDG from MDLARA, liquor purchase revolving fund

116,900

IDG from MDMVA, Michigan veterans facility authority

105,000

IDG from MDOT, comprehensive transportation fund

47,100

IDG from MDOT, Michigan transportation fund

382,400

IDG from MDOT, state aeronautics fund

37,000

IDG from MDOT, state trunkline fund

888,300

IDG, legislative retirement system

31,900

IDG, Michigan economic development corporation

152,800

IDG, Michigan education trust fund

67,000

IDG, Michigan finance authority

321,900

IDG, Michigan justice training commission fund

50,000

IDG, Michigan strategic fund

238,500

IDG, office of retirement services

1,019,600

IDG, other restricted funding sources

26,400

IDG, state sponsored group insurance fund

84,700

IDG, single audit act

3,375,200

Special revenue funds:

21st century jobs trust fund

116,800

Brownfield development fund

34,200

Game and fish protection account

38,000

MDTMB, civil service commission

215,400

Michigan state housing development authority fees

137,600

Michigan veterans’ trust fund

2,000

Michigan veterans’ trust fund income and assessments

23,000

Motor transport revolving fund

8,900

Office services revolving fund

12,300

State disbursement unit, office of child support

69,400

State services fee fund

1,804,600

Waterways account

13,700

State general fund/general purpose

$

21,427,000”

and adjusting the subtotals, totals, and section 201 accordingly.

The amendment failed by voice vote

Amendment offered by Sen. Thomas Albert (R-18)

1. Amend page 81, following line 4, by inserting:

“Sec. 720. From the funds appropriated in part 1 for election regulation, the MDOS shall submit a report to the standard report recipients that must include information on the steps the MDOS has taken to correct and improve the online accessibility and availability of campaign finance reports. The report must include a listing of the steps the MDOS has taken to fix and improve the webpage along with steps taken to comply with online accessibility requirements in the Michigan campaign finance act.”.

The amendment failed 17 to 19 (details)

Amendment offered by Sen. Thomas Albert (R-18)

1. Amend page 88, following line 12, by inserting:

“Sec. 822f. From the funds appropriated in part 1, the MDTMB shall submit a monthly report to the house of representatives and senate appropriations committees detailing the daily employee occupancy rate of each state-owned or leased building for the prior month. The first report must be submitted by November 30, 2025.”

The amendment failed 17 to 19 (details)

Amendment offered by Sen. Thomas Albert (R-18)

1. Amend page 19, line 21, after “137.0” by striking out “50,080,400” and inserting “75,080,400” and adjusting the subtotals, totals, and section 201 accordingly.

2. Amend page 93, following line 15, by inserting:

“Sec. 827a. (1) From the funds appropriated in part 1 for Michigan public safety communications system, $25,000,000.00 shall be used for matching grants to local units of government for the construction of new public safety communication towers. The Michigan public safety communications system (MPSCS) shall coordinate with the department of treasury to develop a grant program for this purpose. The grant program must be structured as follows:

(a) Grants shall be awarded to local units of government on a competitive basis. The MPSCS shall have the authority to review applications and select grant recipients from applications received.

(b) In order to be eligible for a grant under this section, a local unit of government must commit $1.00 for every $1.00 of grant funding received for the purposes described in subsection (1).

(c) The department of treasury shall administer the payment of grants on behalf of the MPSCS. The department of treasury shall expend not more than 1% of the funds allocated in part 1 for public safety facility grants for administrative purposes.

(2) The MPSCS shall develop and post a grant application on a publicly accessible page of the department website no later than November 15, 2025.

(3) The MPSCS must set a deadline for receipt of applications of December 31, 2025. Funds must be awarded no later than March 15, 2026.

(4) The MPSCS must give priority to areas that have the greatest demonstrated need for communication towers and that demonstrate the ability to meet the matching requirement in subsection (1)(b).

(5) The unexpended portion of funds appropriated to the Michigan public safety communications system for grants for new public safety communications towers is designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditure for the project under this section until the project has been completed. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to provide grants to support the construction of new public safety communications towers by local units of government.

(b) The project will be accomplished by utilizing state resources, grants, contracts with service providers, or some combination thereof.

(c) The total estimated cost of the project is $25,000,000.00.

(d) The tentative completion date is September 30, 2030.”

The amendment failed by voice vote

Amendment offered by Sen. Thomas Albert (R-18)

1. Amend page 31, following line 25, by inserting:

“Public safety facility grants

50,000,000”

and adjusting the subtotals, totals, and section 201 accordingly.

2. Amend page 149, following line 19, by inserting:

“Sec. 991. (1) From the funds appropriated in part 1 for public safety facility grants, the department of treasury shall establish and administer a program to provide matching grants to local units of government for the purpose of consolidating or renovating local law enforcement or fire fighter facilities. The grant program must be structured as follows:

(a) Grants shall be awarded to local units of government on a competitive basis. The department of treasury must prioritize demonstrated need and cost savings when selecting grant recipients.

(b) In order to be eligible for a grant under this section, a local unit of government must commit $1.00 for every $1.00 of grant funding received for the purposes described in subsection (1).

(c) The maximum award for a grant shall be $5,000,000.00 per local unit of government.

(d) The department of treasury shall expend not more than 1% of the funds allocated in part 1 for public safety facility grants for administrative purposes.

(2) The department of treasury shall develop and post a grant application on a publicly accessible page of the department website no later than November 15, 2025.

(3) The department of treasury must set a deadline for receipt of applications of December 31, 2025. Funds must be awarded no later than March 15, 2026.

(7) The unexpended portion of funds appropriated for public safety facility grants are designated as a work project appropriation, and any unencumbered or unallotted funds shall not lapse at the end of the fiscal year and shall be available for expenditure for the project under this section until the project has been completed. The following is in compliance with section 451a(1) of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to provide grants to support the consolidation and renovation of law enforcement and fire department facilities owned and operated by local units of government.

(b) The project will be accomplished by utilizing state resources and grants.

(c) The total estimated cost of the project is $50,000,000.00.

(d) The tentative completion date is September 30, 2030.”

The amendment failed by voice vote

Amendment offered by Sen. Thomas Albert (R-18)

1. Amend page 140, line 19, by striking out all of subsection (6).

The amendment failed 17 to 19 (details)

Amendment offered by Sen. Thomas Albert (R-18)

1. Amend page 127, line 15, by striking out all of subsection (6).

The amendment failed 17 to 19 (details)

Amendment offered by Sen. Lana Theis (R-22)

1. Amend page 3, line 14, by striking out “119,429,600” and inserting “118,429,600”, and adjusting the subtotals, totals, and section 201 accordingly.

The amendment failed 17 to 19 (details)

Amendment offered by Sen. Roger Hauck (R-34)

1. Amend page 40, following line 13, by inserting:

“Sec. 214. The department shall maintain, on a publicly accessible website, information that identifies, tracks, and regularly updates key metrics that are used to monitor and improve the agency’s performance.”

The amendment failed by voice vote

Amendment offered by Sen. Ed McBroom (R-38)

1. Amend page 81, following line 14, by inserting:

“Sec. 723. From the funds appropriated in part 1, the MDOS must update its software to allow for the inclusion of a capital letter anywhere in between the first and last letter of the last name or to make all letters in a last name capital letters, whichever is most cost-efficient. This provision must be applied to all correspondence regarding elections or other voter materials, and state-issued driver licenses, personal identification cards, enhanced driver licenses, or enhanced personal identification cards.”.

The amendment failed by voice vote

Amendment offered by Sen. Jonathan Lindsey (R-17)

1. Amend page 25, following line 7, by inserting:

“Liability reimbursement

83,000,000”

and adjusting the subtotals, totals, and section 201 accordingly.

2. Amend page 133, following line 15, by inserting:

“Sec. 949o. (1) From the funds appropriated in part 1 for liability reimbursement, the department shall reimburse county treasurers on a case-by-case basis for the cost of liabilities due to a court order or settlement issued for actions taken by a county treasurer that was in compliance with state law.

(2) In order to receive a reimbursement as described in subsection (1), a county treasurer must demonstrate in writing to the department of treasury that the liability is due to a court order or settlement resulting from action that was in compliance with Michigan statute at the time it occurred.”

The amendment was withdrawn

Amendment offered by Sen. Lana Theis (R-22)

1. Amend page 81, following line 14, by inserting:

“Sec. 723. Beginning on October 1, 2025, all state-issued driver’s license, state-issued personal identification cards, state-issued enhanced driver’s license, or state-issued enhanced personal identification cards shall only recognize two genders.”.

The amendment failed 17 to 19 (details)

Passed in the Senate 19 to 17 (details)

Received in the House

May 14, 2025

Referred to the Committee on Appropriations