MI HB5857

Allows municipal governing bodies to appropriate general fund surpluses to a budget stabilization fund by ordinance or resolution requiring a 2/3 vote of members elected and serving.

Prohibits municipalities from imposing additional taxes beyond estimated budget needs to provide money for the stabilization fund.

Increases the maximum balance of the stabilization fund from 15% to 20% of either the municipality's most recent general fund budget or 20% of the average of the 5 most recent general fund budgets, whichever is less.

Permits fund investments with earnings returned to the municipality's general fund.

Requires that any fund balance exceeding the 20% limit be appropriated to the next general fund budget but not returned to the stabilization fund.