Northern Michigan Counties Association (MAC) Meeting Summary May 2025
State Budget & Revenue Sharing
Deena Bosworth, MAC’s Director of Government Affairs, provided an update on the state legislature’s current dynamics. With the House and Senate controlled by different parties, little progress is being made on key legislative efforts. Only four bills have been signed into law this session. Bosworth noted, “They’re not working out their differences at this point... they just aren’t communicating well.”
Despite the legislative gridlock, the Senate passed a proposed budget that includes a $29 million increase in revenue sharing for counties statewide. However, a new formula ties the allocation to property tax bases—benefiting counties with lower property values like Wayne County while reducing gains for wealthier counties such as Leelanau. Bosworth indicated that all counties would receive some increase, though there is no guaranteed minimum. Notably, a revised revenue estimate projects a $370 million shortfall compared to initial projections, which could impact the final allocation.
Also included in the Senate budget:
$60 million for a new county-level community policing initiative, which still requires approval from both legislative chambers.
Foreclosure Reimbursement Funds
The Senate budget also earmarks $100 million to reimburse counties for proceeds retained from tax-foreclosed property sales—funds that must now be returned to former property owners following a Michigan Supreme Court ruling.
Leelanau County Treasurer John Gallagher previously indicated the county could face limited liability, as few properties here are sold at auction. However, statewide liability is estimated at $83 million. Bosworth noted that Minnesota addressed a similar issue by having the state cover all costs, and MAC is advocating for a comparable solution in Michigan.
Other Legislative Topics of Interest
Road Funding: The state House is working on a plan that would double annual funding for county and municipal roads. Governor Whitmer and Democratic leaders are drafting an alternative proposal.
Septic System Inspections: A once-prominent bill requiring mandatory inspections of private septic systems appears to be stalled, largely due to a lack of implementation funding. Bosworth expects a revised version may resurface, possibly with a 10-year inspection cycle, but warned of strong opposition from groups such as the Michigan Realtors Association.
County Jail Sustainability: Commissioner Robbins shared insights on revenue-generating ideas for the Leelanau County Jail. His expertise was also sought in Ogemaw County, where a jail built in 2015 recently closed due to budget constraints and insufficient inmate population. The estimated annual cost to operate that facility was $338,000.
Future Meetings & Events
MAC is seeking suggestions for future meeting locations and public facility tours throughout northern Michigan. A Leelanau County wine tour was proposed but quickly dismissed due to concerns it might be a bit too leisurely to be productive.
