MI HB4798

Increases the maximum amount municipalities can hold in budget stabilization funds from 15% to 20% of either the most recent general fund budget or the average of the 5 most recent general fund budgets, whichever is less.

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

Prohibits municipalities from imposing additional taxes solely to generate revenue for contributions to the budget stabilization fund.

Requires any excess funds above the 20% cap to be appropriated to the municipality's next general fund budget rather than returned to the stabilization fund.

Takes effect 90 days after enactment.