Michigan Senate Bill SB0945

Michigan 2025-2026 Regular Session

• Introduced: 5/7/26
• Refer: 5/7/26

Caption

State management: funds; interest earned from money in the countercyclical budget and economic stabilization fund; deposit into the child care payment fund. Amends sec. 351 of 1984 PA 431 (MCL 18.1351). TIE BAR WITH: SB 0946'26

Summary

SB 945 amends the Management and Budget Act to redirect interest earned on the state’s countercyclical budget and economic stabilization fund to the child care payment fund. Under the bill, the state treasurer must transfer interest accrued from the stabilization fund for the period from fiscal year 2024 through the bill’s effective date into the child care payment fund within 90 days, and all future interest from investments of the stabilization fund must also be deposited into that child care fund. The bill leaves the underlying stabilization fund in place for its existing purpose of helping smooth revenue and employment during recessions and periods of high unemployment. It also preserves the existing rule that money deposited into the stabilization fund must be available for distribution by the following January 1. The bill is tie-barred to SB 946, meaning it would not take effect unless that companion bill is also enacted.

Impact

The bill changes the disposition of investment earnings associated with the countercyclical budget and economic stabilization fund, shifting those earnings to the child care payment fund rather than leaving them in the stabilization fund. This affects state treasury accounting and the flow of interest income, but it does not eliminate or fundamentally alter the stabilization fund itself. It amends section 351 of 1984 PA 431 and defines the child care payment fund by reference to 1973 PA 116, section 13b.

Sentiment

Based on the bill text and available context, the measure appears to be a targeted fiscal policy proposal with a child care funding purpose rather than a broadly controversial restructuring of state finance. No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available materials. The tie-bar to SB 946 suggests the bill is part of a coordinated package and likely intended to work alongside related legislation.

Contention

The main policy tension is between preserving interest earnings for the state’s rainy-day stabilization reserve and redirecting those earnings to support child care payments. Supporters would likely emphasize using otherwise idle interest to fund child care, while opponents could argue that diverting investment income weakens the stabilization fund’s capacity or flexibility during economic downturns. Because no hearing testimony or votes are included, specific lawmakers or stakeholder groups taking those positions cannot be identified from the record provided.