Bill Text: MI HB4602 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: State financing and management; budget; technical amendments to budget stabilization fund; provide for. Amends secs. 302, 352, 354, 355, 356, 358 & 367b of 1984 PA 431 (MCL 18.1302 et seq.) & repeals secs. 353 & 397 of 1984 PA 431 (MCL 18.1353 & 18.1397).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-12-31 - Assigned Pa 613'18 [HB4602 Detail]
Download: Michigan-2017-HB4602-Engrossed.html
HB-4602, As Passed Senate, December 19, 2018
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 4602
A bill to amend 1984 PA 431, entitled
"The management and budget act,"
by amending sections 302, 352, 354, 355, 356, 358, and 367b (MCL
18.1302, 18.1352, 18.1354, 18.1355, 18.1356, 18.1358, and
18.1367b), sections 352, 354, 355, and 356 as amended by 1999 PA 8,
section 358 as amended by 2014 PA 188, and section 367b as amended
by 2011 PA 47; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 302. (1) "Adjusted personal income" means the total
personal income of this state, less transfer payments, adjusted for
inflation. The adjustment for inflation shall be determined by
reducing the total personal income of this state less transfer
payments for a calendar year by the average of the Detroit consumer
price
index for the 12 months ending 6 months before the same
calendar
year. ends.
(2) "Allocation of state financial resources" means the
decision process to place priorities on services by proposing and
appropriating money by law for state government services.
(3) "Allotment schedule" means the estimated periodic
expenditures and obligations of appropriations constituting a
spending plan.
(4) "Annual growth rate" means the percentage change in
adjusted personal income for the current calendar year as compared
to adjusted personal income for the calendar year immediately
preceding the current calendar year. The annual growth rate shall
be rounded off to the nearest 0.1%.
Sec. 352. (1) When the annual growth rate is more than 2%, the
percentage excess over 2% shall be multiplied by the total state
general fund-general purpose revenue for the fiscal year ending in
the current calendar year to determine the amount to be transferred
to the fund from the state general fund in the fiscal year
beginning in the current calendar year.
(2) Except as otherwise provided in section 358, the
legislature shall not appropriate money from the fund for a fiscal
year when the annual growth rate for the calendar year in which
that fiscal year ends is estimated to be greater than 0% at the
most recent consensus revenue estimating conference. When the
annual
growth rate is less than 0%, estimated
to be less than 0% at
the most recent consensus revenue estimating conference, the
percentage
deficiency under 0% shall be multiplied by the total
state
general fund-general purpose revenue for the fiscal year
ending
in the current calendar year to determine the eligible
amount
to be transferred to the state general fund from the fund in
the
fiscal year ending in the current calendar year. When the
formula
calls for a larger transfer from the fund than is necessary
to
balance the current fiscal year state general fund-general
purpose
budget, the excess shall remain in the fund.legislature may
appropriate by law for the fiscal year ending in the current
calendar year no more than 25% of the prior fiscal year ending
balance in the fund as reported in the comprehensive annual
financial report. However, if the annual growth rate is estimated
to be less than 0% in consecutive calendar years, for each of the
fiscal years ending in those calendar years, the legislature may
appropriate by law no more than 25% of the available fund balance
at the beginning of the first fiscal year ending in the first
calendar year that had an annual growth rate less than 0%.
(3) The legislature shall provide for transfers into or out of
the fund through an appropriations act.
Sec. 354. (1) The executive budget for each fiscal year shall
contain
an estimate of the required transfer into or the fund or
the amount of funds recommended to be appropriated out of the fund
required
by under section 352.
The executive budget for each fiscal
year shall not contain an estimate for a transfer out of the fund
unless the annual growth rate is estimated to be less than 0% in
that fiscal year.
(2)
The legislature shall include a the
final estimate amount
of
the transfer into or the
fund or the amount of funds
appropriated
out of the fund required by under section
352 in the
appropriations bill which contains the revenue estimate required by
section 31 of article IV of the state constitution of 1963.
(3)
Except as provided in subsection (4), a A transfer into
the fund shall be made in equal monthly installments throughout the
fiscal
year. Except as provided in subsection (4), a A transfer
out
of the fund may be made as needed during the fiscal year.
(4)
Notwithstanding section 352, for each fiscal year ending
after
October 1, 1997, all unreserved general fund-general purpose
balances
at the final close of the fiscal year shall be transferred
to
the fund. If an amount is required to be transferred to the fund
for
a fiscal year under section 352, any amount transferred to the
fund
under this subsection shall be considered to be a part of the
amount
transferred to the fund for purposes of section 352.
Sec. 355. (1) The transfer into or out of the fund as provided
in section 352 for each fiscal year beginning after September 30,
1978, may be adjusted in light of revision in the annual growth
rate for the calendar year upon which that transfer was made. If an
adjustment is made, it shall be implemented by an appropriation
bill
enacted into law. The
(2) For a transfer into the fund, the adjustment, if made,
shall be directly proportional to an increase or decrease in the
annual
growth rate. , but the adjustment shall not be in excess of
1%
multiplied by the total general fund-general purpose revenue of
the
fiscal year upon which the transfer was based.
(3) The basis for an adjustment under this section shall be a
change in the personal income level for that calendar year as
determined by the bureau of economic analysis of the United States
department
of commerce Department of
Commerce or its successor in
the last report it makes before April 30 of the fiscal year in
which that calendar year ended. The adjustment, if made, shall be
effective on June 1 of the fiscal year in which the transfer is
made.
Sec.
356. The balance in the fund shall not exceed 10% 15% of
the combined level of general fund-general purpose and school aid
fund revenues. If the balance in the fund at the end of a fiscal
year
exceeds 10% 15% of the actual state general fund-general
purpose and school aid fund revenues for that fiscal year, the
excess shall be rebated to taxpayers on the individual income tax
returns filed following the close of that fiscal year according to
a schedule to be established by law.
Sec. 358. (1) Except as otherwise provided in this section,
the legislature may make an emergency appropriation from the fund
subject to all of the following conditions:
(a) The maximum appropriation from the fund for budget
stabilization as provided in section 352(2) has already been made
for the current fiscal year.
(b) The legislature has approved the emergency appropriations
bill by a 2/3 majority vote of the members elected to and serving
in each house.
(c) The emergency appropriations bill becomes law.
(2) The additional transfer from the fund may be made only for
the current fiscal year.
(3)
For the fiscal year ending September 30, 2001, the fiscal
year
ending September 30, 2002 and for each fiscal year beginning
with
the fiscal year ending September 30, 2004 and ending with the
fiscal
year ending September 30, 2016, there is appropriated and
transferred
from the fund to the state trunk line fund established
under
section 11 of 1951 PA 51, MCL 247.661, the sum of
$35,000,000.00.
(4)
For the fiscal year ending September 30, 2000, there is
appropriated
and transferred from the fund to the state trunk line
fund
established under section 11 of 1951 PA 51, MCL 247.661, the
sum
of $37,100,000.00.
(5)
For the fiscal year ending September 30, 2000, an amount
equal
to the unreserved general fund/general purpose balance
transferred
to the fund for the fiscal year ending September 30,
2000,
but not to exceed $62,900,000.00, is appropriated and
transferred
from the fund to the state trunk line fund established
under
section 11 of 1951 PA 51, MCL 247.661.
(6)
For the fiscal year ending September 30, 2014, there is
transferred
$194,800,000.00 from the fund to the settlement
administration
fund created in the Michigan settlement
administration
authority act for the purposes described in that
act.
Sec. 367b. (1) A revenue estimating conference shall be held
in the second week of January and in the third week in May of each
year, and as otherwise provided in this act.
(2) The principals of the conference shall be the state budget
director or the state treasurer, the director of the senate fiscal
agency, and the director of the house fiscal agency, or their
respective designees.
(3) The conference shall establish an official economic
forecast of major variables of the national and state economies.
The conference shall also establish a forecast of anticipated state
revenues as the conference determines including the following:
(a) State income tax collections.
(b) State sales tax collections.
(c) Corporate income tax collections.
(d) Michigan business tax collections.
(e) Total general fund/general purpose revenues.
(f) Lottery transfers to the school aid fund.
(g) Total school aid fund revenues.
(h) Annual percentage growth in the basic foundation allowance
provided for in the state school aid act of 1979, 1979 PA 94, MCL
388.1601
to 388.1772.388.1896.
(i) Compliance with the state revenue limit established by
section 26 of article IX of the state constitution of 1963.
(j)
Pay-ins or maximum allowable pay-outs required under the
countercyclical budget and economic stabilization fund.
(4) The conference's official forecast of economic and revenue
variables shall be determined by consensus among the principals.
(5) The forecasts required by this section shall be for the
fiscal year in which the conference is being held and the next 2
ensuing fiscal years. The conference shall also forecast general
fund/general purpose revenue trend line projections and school aid
fund revenue trend line projections for the next 2 ensuing fiscal
years.
(6) The May revenue estimating conference shall establish
expenditure
forecasts for medicaid Medicaid
expenditures and for
human services caseloads and expenditures for the fiscal year in
which the conference is being held and the next 2 ensuing fiscal
years.
(7) The official conference forecasts of revenues and
expenditures shall be based upon the assumption that the current
law and current administrative procedures will remain in effect for
the forecast period.
Enacting section 1. Sections 353 and 397 of the management and
budget act, 1984 PA 431, MCL 18.1353 and 18.1397, are repealed.
Enacting section 2. This amendatory act takes effect 90 days
after the date it is enacted into law.
