MI HB5054

Appropriates $1,500,000,000 in total state spending from general fund sources for fiscal year ending September 30, 2022, with $1,150,000,000 designated for local units of government.

Establishes local unit municipal pension principal payment grant program with $900,000,000 to provide grants to cities, counties, townships, villages, and road commissions for deposits into underfunded retirement systems (below 60% funded ratio as of December 31, 2021), capped at $100,000,000 per qualified unit.

Creates pension best practices and debt reduction grant program with $250,000,000 for units with qualified retirement systems at or above 60% funded ratio, with grant funds prioritized for: achieving 100% funded ratio, paying down debt obligations, and matching infrastructure investment requirements.

Requires grant recipients to certify compliance with pension best practices including full actuarially determined contributions, benefit enhancements that are 100% prefunded, capped discount rates, current mortality tables, and 5-year corrective action plan monitoring by municipal stability board.

Allocates $350,000,000 deposit into state police retirement system in addition to actuarially determined contributions; applications for grant programs open April-May 2022 with funds dispersed by August-September 2022.