part 1

line-item appropriations

Sec. 101. There is appropriated for various state departments and agencies to supplement appropriations for the fiscal year

ending September 30, 2025, from the following funds:

APPROPRIATION SUMMARY
GROSS APPROPRIATION	$	11,500,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers		0
ADJUSTED GROSS APPROPRIATION	$	11,500,000
Federal revenues:
Total federal revenues		0
Special revenue funds:
Total local revenues		0
Total private revenues		0
Total other state restricted revenues		0
State general fund/general purpose	$	11,500,000
Sec. 102. DEPARTMENT OF TREASURY
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION	$	11,500,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers		0
ADJUSTED GROSS APPROPRIATION	$	11,500,000
Federal revenues:
Total federal revenues		0
Special revenue funds:
Total local revenues		0
Total private revenues		0
Total other state restricted revenues		0
State general fund/general purpose	$	11,500,000

(2) ONE-TIME APPROPRIATIONS
Back-office grant program	$	11,500,000
GROSS APPROPRIATION	$	11,500,000
Appropriated from:
State general fund/general purpose	$	11,500,000

part 2

provisions concerning appropriations

general sections

Sec. 201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1 for the fiscal year ending September 30, 2025 is $11,500,000.00 and total state spending from state sources to be paid to local units of government is $10,925,000.00.

Sec. 202. The appropriations made and expenditures authorized under this part and part 1 and the departments, commissions, boards, offices, and programs for which appropriations are made under this part and part 1 are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.

DEPARTMENT OF TREASURY

Sec. 301. (1) The funds appropriated in part 1 for back office grant program must be used to establish and operate a back office grant program that provides grants to local units of government for 1 or more of the following related to finance, human resources, or information technology operations:

(a) Assistance with complex, unanticipated, or emergent needs.

(b) Investments in critical business operations.

(d) Cybersecurity and resiliency testing of information technology infrastructure.

(e) Alternative staffing when recruitment or retention efforts fail.

(2) The department of treasury shall contract with a qualified nonprofit for the administration of the back office grant program. The contract must provide for oversight of the back office grant program by the department of treasury. Not more than 5% of the funds appropriated in part 1 for back office grant program may be paid to the qualified nonprofit for the administration of the back office grant program.

(3) The qualified nonprofit, in consultation with the department of treasury, shall do all of the following:

(a) Develop a detailed application, approval, and compliance process for the back office grant program that is published and available on the qualified nonprofit's website.

(b) Establish local match requirements for receipt of a grant under the back office grant program. Local match requirements established under this subdivision must take into account a local unit of government's financial need.

(c) Authorize the expenditure of grant funds for the back office grant program to the qualified accounting firm with which the department of treasury contracts in accordance with section 301 of House Bill No.____ (request no. H02443'25) of the 103rd Legislature or 1 of the department of treasury approved qualified accounting firms on behalf of the local unit of government approved for the grant.

(4) The department of treasury shall disburse $2,875,000.00 of grant funds to the qualified nonprofit in advance and replenish all utilized funds not later than 30 days after appropriate reporting from the qualified nonprofit on the use of funds in accordance with the application, approval, and compliance process developed under subsection (3).

(5) The unexpended funds appropriated in part 1 for back office grant program are designated as a work project appropriation. Any unencumbered or unallotted funds do not lapse at the end of the fiscal year and are available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:

(a) The purpose of the project is to establish and operate a back office grant program to provide local units of government the opportunity to enhance the functional areas of finance, human resources, and information technology in a financial needs-based cost-sharing arrangement with this state.

(b) The project will be accomplished by utilizing state employees or contracts, or both.

(d) The tentative completion date is September 30, 2029.

(6) As used in this section:

(a) "Back office grant program" means the grant program established and operated under this section.

(b) "Local unit of government" means a city, village, township, county, or any intergovernmental, metropolitan, or local department, agency, or authority, or other local political subdivision.