Bill Text: MI SB0475 | 2019-2020 | 100th Legislature | Chaptered

Michigan Senate Bill 475 (Prior Session Legislation)

Bill Title: School aid: foundation allowance; reference to basic foundation allowance in revenue estimating conference; change to target foundation allowance. Amends sec. 367b of 1984 PA 431 (MCL 18.1367b).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2020-09-22 - Assigned Pa 0157'20 With Immediate Effect [SB0475 Detail]

Download: Michigan-2019-SB0475-Chaptered.html

Act No. 157

Public Acts of 2020

Approved by the Governor

September 17, 2020

Filed with the Secretary of State

September 17, 2020

EFFECTIVE DATE: September 17, 2020

state of michigan

100th Legislature

Regular session of 2020

Introduced by Senator Schmidt

ENROLLED SENATE BILL No. 475

AN ACT to amend 1984 PA 431, entitled �An act to prescribe the powers and duties of the department of management and budget; to define the authority and functions of its director and its organizational entities; to authorize the department to issue directives; to provide for the capital outlay program; to provide for the leasing, planning, constructing, maintaining, altering, renovating, demolishing, conveying of lands and facilities; to provide for centralized administrative services such as purchasing, payroll, record retention, data processing, and publishing and for access to certain services; to provide for a system of internal accounting and administrative control for certain principal departments; to provide for an internal auditor in certain principal departments; to provide for certain powers and duties of certain state officers and agencies; to codify, revise, consolidate, classify, and add to the powers, duties, and laws relative to budgeting, accounting, and the regulating of appropriations; to provide for the implementation of certain constitutional provisions; to create funds and accounts; to make appropriations; to prescribe remedies and penalties; to rescind certain executive reorganization orders; to prescribe penalties; and to repeal certain acts and parts of acts,� by amending section 367b (MCL 18.1367b), as amended by 2018 PA 613.

The People of the State of Michigan enact:

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 are 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.

(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 target foundation allowance provided for in the state school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1897l. In establishing this forecast in January and May of 2020, the conference shall take into account the change in terminology from �basic foundation allowance� to �target foundation allowance� that occurred in the amendments made to section 20 of the state school aid act of 1979, 1979 PA 94, MCL 388.1620, for the 2019-2020 fiscal year.

(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 under the countercyclical budget and economic stabilization fund.

(4) The conference shall determine its official forecast of economic and revenue variables by consensus among the principals.

(5) The conference shall make forecasts under this section 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 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 conference shall make official conference forecasts of revenues and expenditures based upon the assumption that the current law and current administrative procedures will remain in effect for the forecast period.

Enacting section 1. This amendatory act takes effect October 1, 2019.

A close up of a logo

Description automatically generated This act is ordered to take immediate effect.