Budget & Taxes (Debt & Bonds)

HB 4818 amends Michigan school district bonding rules to clarify what bond proceeds can fund. It prohibits using bonds for technology-related expenses like software upgrades, training, maintenance, consumables (e.g., ink, toner), or repairs outside warranties. School districts can still use bonds for physical infrastructure - such as building construction, buses, athletic fields, or facility upgrades - but only for the initial purchase and setup of technology hardware and software, as narrowly defined in the bill. The amendment also requires independent audits of bond spending within 120 days of project completion.

SB 199 amends Michigan's tax increment financing law to modify funding limits for certain legacy obligations. It specifically restricts the amount of tax increment revenue (revenue from increased property taxes in redevelopment areas) that can be used to pay for ongoing management contracts and professional services established before 1993. The bill phases out these payments annually, starting with $3 million per year for taxes levied through 2009, decreasing to $0 for taxes levied after June 2015. This directly affects municipalities and tax increment authorities that issued or incurred these pre-1993 obligations or related contracts.