Mich. Comp. Laws § 18.1350: State spending paid to units of local government; refunds or other repayments.

Sec. 350.

If state government assumes the financing and administration of a function, after December 22, 1978, which was previously performed by a unit of local government, the state payments for the function shall be counted as state spending paid to units of local government.

Refunds or other repayments of prior year revenues shall not be considered in the determination of total state spending.