Michigan News And Capitol Report, Week Ending Friday, May 15th, 2026

HFA, SFA: State Revenues Starting To Cool

Michigan’s economic outlook remains stable but slowing, with state economists warning lawmakers that weaker job growth, softer consumer spending and uncertainty in federal policy could tighten state budgets in the coming years.

 The information comes from new revenue forecasts presented ahead of Friday’s Consensus Revenue Estimating Conference (CREC).

The House Fiscal Agency’s May 2026 “Economic Outlook and Revenue Estimates” report projected modest growth in state tax collections through the 2027-28 fiscal year, but not at the pace seen during the post-pandemic recovery. Economists said inflation has cooled and unemployment remains relatively low, but Michigan’s manufacturing-heavy economy continues to face headwinds from high interest rates, weaker national growth and uncertainty tied to tariffs and trade policy.

A separate transmittal memo from the Senate Fiscal Agency (SFA) added that Michigan’s economy is expected to trail national economic growth through 2028, with the national economy projected to grow by roughly 2% annually after adjusting for inflation.

The SFA memo also provided additional detail on how recent transportation funding changes are expected to affect state revenues. General Fund (GF) revenue is projected to decline 0.3% in Fiscal Year 2025-26 and another 2.3% in FY 2026-27, largely because lawmakers redirected money toward roads in legislation approved last October. Revenue growth is expected to rebound by FY 2027-28, when GF/GP collections are forecast to rise 2.5%, helped in part by declining Michigan Business Tax credits.

Meanwhile, the School Aid Fund is expected to remain more stable because it was largely shielded from the transportation funding changes. The SFA projects School Aid Fund revenue growth of 2.5% in FY 2025-26, followed by increases of 2.2% and 2.1% in the next two fiscal years.

The report comes as lawmakers and Gov. Gretchen Whitmer negotiate the Fiscal Year 2026-27 budget amid growing concern about flattening revenue growth and rising spending pressures tied to Medicaid, education and infrastructure.

The Senate memo also outlined projected year-end balances under the Senate’s proposed budget plan. For FY 2025-26, the SFA projects positive balances of roughly $912.5 million in the General Fund and $971.8 million in the School Aid Fund. Those estimates assume the Senate deposits roughly $650 million from the Strategic Outreach and Attraction Reserve Fund and another $200 million in work project revenue back into the General Fund. 

For FY 2026-27, the Senate’s budget plan would leave projected balances of $354.3 million in the General Fund and $225.4 million in the School Aid Fund.

However, the Senate Fiscal Agency warned the state could face a General Fund shortfall of roughly $227.3 million in FY 2027-28 when future cost increases are factored in, including the first year of Supplemental Nutrition Assistance Program error-rate cost sharing, estimated at $320 million GF. The SFA still projects a positive School Aid Fund balance of $588.2 million that year.

The forecasts will help shape Friday’s CREC meeting, where the House Fiscal Agency, Senate Fiscal Agency and Whitmer administration agree on the official revenue estimates used to finalize Michigan’s state budget.

Standardized Housing Regulations Gets First Public Hearing

Local governments would lose some regulatory authority over new housing being built in their communities under legislation heard in committee that's designed to speed up and lower the cost of new builds.

The bipartisan bills standardized some lot sizes, dwelling sizes and other zoning rules – regulations the home building lobbying has argued can be streamlined to spur more home construction.

Spearheaded by Rep. Kristian Grant (D-Grand Rapids), the bills have been batted around for years, but only today have been heard by a legislative committee – the House Government Operations Committee.

The “Housing Readiness Package” is being described by advocates as flexible housing reforms, but locals say the actual language would mandate sweeping local zoning changes that communities would be left to manage.

Following a House Government Operations Committee hearing on the package, Reps. Jaime Greene (R-Richmond) and Samantha Steckloff (D-Farmington Hills) joined the Michigan Municipal League and Michigan Townships Association in calling the bills developer-driven, one-size-fits-all. They argue the bills would preempt local authority over zoning, land use and site-plan review. 

Dan Gilmartin, executive director and CEO of the Michigan Municipal League, said that his number one takeaway from the hearing was the “flowery language” lawmakers used about bringing down housing costs “does not match what’s in the bills.”

Local officials said they support more housing, but argued the package would shift decision-making power away from city halls, township boards and local residents and toward statewide mandates written without enough input from the communities affected.

The hearing itself was packed, with two overflow rooms, but Chair Brian BeGole (R-Perry) said the committee would not take support or opposition testimony on the housing package because of time constraints. Instead, sponsors were allowed to introduce their bills and explain the package. 

Grant told the committee the bills are aimed at the rising cost and shortage of housing. She said the package is not meant to eliminate zoning law or remove local voices, but to address barriers like large lot-size requirements, minimum dwelling sizes, slow approval timelines and zoning rules that prevent duplexes or accessory dwelling units from being considered. 

Grant said amendments being circulated would increase the proposed minimum lot size from 1,500 square feet to 2,000 square feet, increase the minimum dwelling size from 500 square feet to 600 square feet, adjust the protest-petition process and extend local review time under the site-plan bill from 90 days to 105 days, with another 30 days for projects of 100 units or more. 

She also said language would be added to the zoning bills to clarify that local governments could still consider infrastructure capacity, utilities, public services and public impacts.

“This does not take away locals’ input,” Grant said in committee. “They still will have a process. Discussions and negotiations are still happening.” She said the point is to ask locals to consider options “case by case,” including duplexes, garage lofts and smaller lots. 

Rep. Jennifer Wortz (R-Quincy) speaking on HB 5529 and HB 5530, said the bills would limit minimum residential lot-size requirements in municipalities where water and sewer are already available. She said the goal is to allow smaller homes on smaller lots, create more starter-home and retirement-home options and limit sprawl into farmland. 

Rep. Joey Andrews (D-St. Joseph) said his HB 5584 would require duplexes to be permitted in districts where single-family homes are allowed, but said the bill does not mean every duplex must be approved.

A developer would still have to meet review standards, show the project would not overload utilities and meet health and safety standards, Andrews said. However, he said the answer to a duplex proposal “can’t start as no,” and communities should have to review the proposal and have the conversation. 

That was exactly the point local officials disputed afterward.

Wayland Mayor Jennifer Antel said she heard lawmakers repeatedly describe the bills as something that would “allow” more housing options, but said local officials read the bills differently.

“These bills do not allow. These bills mandate what we can,” Antel said. “When you take the zoning decisions away from us at the local level, you’re also taking them away from our citizens.” 

Macomb Township Supervisor Frank Viviano said he met with Rep. Joseph Aragona (R-Clinton Township), his representative and one of the package’s main sponsors, to voice his concerns with the package. Viviano said his land development team spent two weeks studying the bills before showing Aragona how the package could affect existing projects, water and sewer systems, stormwater, parking, driveways and public safety access. 

Viviano said Aragona’s decision to pull back support from portions of the package, including removing his name from one of the bills, came partly as a result of that meeting and pressure from the community. But Viviano described Aragona’s changes as “watered down,” saying his core concerns remain with lot sizes, setbacks, unit sizes, duplexes by right and mobile homes. 

Aragona wrote on Facebook earlier this month that bills expanding duplex construction and more premanufactured housing — HB 5582, HB 5584 and HB 5585 — do not have a path forward despite “fruitful discussions.” He said the broader package, including tax relief, zoning and credit proposals, remains “a long way from being finished.” 

Viviano said the site-plan timeline bill remains a concern because local review is not simply a delay tactic. He said when a developer submits a plan, engineers, police, fire and other departments may identify problems that require back-and-forth revisions before a plan is ready for a planning commission vote.

“If you make it an artificial deadline, yeah, it means you shoot it to the planning commission before it’s ripe,” Viviano said. “All that happens is they say no, and then that developer goes to the back of the line, pays all his fees all over again and starts again.” 

He said unfinished plans could involve road dimensions, grading, drainage, detention basin sizing and sewer elevations. In Macomb Township, he said one area already needs a $10 million pump station to increase water pressure, and increased density could multiply that need. 

Walker Mayor Gary Carey said the package would erode local decision-making over land use and zoning, potentially increasing traffic congestion, straining police, fire and EMS services and forcing approvals before infrastructure, safety or environmental concerns are resolved. 

For now, the divide is not only over policy, but over what the bills actually do.

Grant and Andrews said the package preserves local review and asks communities to consider housing options they may currently reject outright. Local officials said the language is not a request, but a mandate.

Klinefelt Wants Ban On Out-Of-State Investors

In related news: Senate Democrats introduced legislation that would deter private equity firms from buying housing and create a tax credit to lower the cost of building homes. 

Sen. Veronica Klinefelt (D-Eastpointe)'s SB 971 would prohibit out-of-state investment groups from owning more than 10 single-family homes in Michigan. The legislation aims to level the playing field for prospective homebuyers, who are too often forced to compete with large investors able to make cash offers or waive inspections. 

In addition, Sen. Jeff Irwin (D-Ann Arbor) is offering SB 966, SB 967 and SB 968, which would create the Michigan Housing Opportunity Credit to help make building new homes more affordable as well. This would supplement the existing federal housing credit, allowing the state to draw down additional federal funding to invest in the building of over 2,500 new homes every year. 

Irwin, the chair of the Senate Housing and Human Services Committee said Michigan currently relies only on federal tax credits to build more affordable housing, while most states have their own housing incentives in place.

McKinney Leading Community Solar Bill

Community members could subscribe to a shared solar project and receive credits on their utility bills for the energy produced by it, under legislation introduced by Donavan McKinney (D-Detroit).

The Affordable Clean Energy Savings and Solar Act (ACCESS) is designed to lower utility costs and improve energy grid reliability, McKinney said. The panels would be built on rooftops, parking lots or unused land. 

“We can't afford to leave people out of clean energy. My legislation is designed to ensure that community solar works for everyone, not just those who can already afford access,” McKinney said in a press conference on the legislation. “Community solar expands access and lowers utility bills at a time when affordability is a real concern. It brings investments to local communities. It supports grid resilience, and it creates local jobs in construction, maintenance and energy engineering.”

Lawmakers are considering proposed measures that would establish a framework for community solar energy, including HB 4590, SB 518 and SB 519. House Republicans recently passed a slate of energy legislation, including repeals of 2023 energy mandates. McKinney said that the passage of the bills would do more harm than good, and his legislation would save ratepayers money and save the environment. 

Under the program, every participant would receive 10% savings, and lower-income households would be guaranteed at least 20%. The bill would reserve 40% of program capacity for low-income households and service organizations. 

Also present at the press conference were Chris Gilmer-Hill and Wesley Watson with the Michigan Environmental Justice Coalition, and Nancy Morales with the Sierra Club and Urban Core Collective. 

McKinney is currently a candidate for Michigan's 13th congressional district.

Mobile Home Parks Give Residents Chance To Buy If Owner Wants To Sell

Mobile home park owners and residents have reached a deal regarding how parks should be regulated by the state, backing bills that give residents the chance to buy their mobile home park if the owner wants to sell it. 

Sen. John Cherry (D-Flint) has spent years trying to reform Michigan's laws and standards surrounding mobile home parks. In both his Senate district and previous House district, Cherry represented Swartz Creek Estates in Genesee County. 

According to residents, they were informed of their mobile home park being sold in July 2018 when an out-of-state investment firm left notes on their doors, alerting them that rent would increase by $75. 

Last term, during the Democratic trifecta, Cherry proposed requiring mobile home park owners to first have rent increases approved by a commission within the state's Department of Licensing and Regulatory Affairs (LARA), which was opposed by the Michigan Manufactured Housing Association (MMHA). 

In order to get the different groups on board in an era of divided government, Cherry dropped the "rent control" aspects of the previous proposal.

"The structure is unusual. Residents own their home, but they rent the land beneath it. That hybrid gives families a foothold into ownership, but it also creates a structural vulnerability when parks change hands or when an operator stops complying with the law," Cherry said, adding that the legislation "does not impose rent control. What it does is give residents a fair shot to buy the community they live in." 

He said there are roughly between 1,100 and 1,200 licensed manufactured housing communities in Michigan, being the "only unsubsidized, affordable homeownership available" to a "significant share" of seniors, retirees and working-class families in the state. 

The Senate Housing and Human Services Committee unanimously voted out SB 934, SB 935, SB 936, SB 937, SB 938 and SB 939 . Some of the significant changes in the bills include: 

- Ahead of accepting any final offers, park owners must first notify residents and LARA of their intentions to sell or transfer ownership. Residents would have 60 days to inform the owner if they would like to purchase the park themselves, and if so, the sale to residents would be incentivized with a 15% tax credit.  

- Park owners must offer lease or rental agreements of no less than one year, with exceptions provided if the prospective tenant declined a one-year lease and a new agreement was written up.

- Park owners could not charge more for utilities than the costs listed by the service providers. They would also be barred from charging special fees on different types of rent payment methods, as well as from terminating someone's tenancy to change the uses of the park without notification 12 months in advance. 

- LARA would establish a database of all park owners. 

One of the testifiers in the Senate Housing and Human Services Committee was Holly Hook, a Swartz Creek Estates resident and a vocal member of MHAction, an advocacy group for mobile home residents. 

She described residents struggling with unsafe conditions, such as drinking water that came out gray, yellow or orange, as well as potholes and sewage running through yards. 

"I've even heard a story of an uncapped gas line in one community, which could have caused a real explosion," Hook said. "And also, I've heard stories of many residents not being offered leases, and I'm one of them, and this can often lead to some unfair practices, such as unreasonable fees, and seniors are often required to pay rent electronically and we don't have a computer." 

The bills were backed as well by Jason Hanselman, a lawyer for the MMHA. He said the bills address the problem of abandoned mobile home parks, which can lead to safety issues, diminished curb appeal and suppressed home values. 

He said in February 2020, the secretary of state stopped using a process for manufacturing housing community owners to secure titles of homes that had been abandoned. Now, he said, it takes multiple court appearances and "many delays" before a title is secured. 

"Solving this problem is really a win for everyone involved," Hanselman said. "(Gov. Gretchen Whitmer) has said removing and rehabilitating blighted properties creates a ripple effect of positive change that not only reclaims neglected spaces, but fosters economic growth, enhances safety and bolsters community pride."