Bill Text: MI SCR0022 | 2019-2020 | 100th Legislature | Engrossed

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Bill Title: A concurrent resolution calling for the responsible use of the state's transportation bonding authority and to state the Legislature's intent regarding future debt service payments.

Spectrum: Partisan Bill (Republican 22-0)

Status: (Passed) 2020-03-04 - Referred To Committee On Transportation [SCR0022 Detail]

Download: Michigan-2019-SCR0022-Engrossed.html

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As Adopted by senate, March 4, 2020

 

senate Concurrent Resolution No.22

Senators Stamas, Victory, MacDonald, Outman, Zorn, Bizon, Bumstead, Daley, LaSata, Lauwers, Horn, Barrett, Runestad, VanderWall, Johnson, Nesbitt, Lucido, Shirkey, Theis, Schmidt, MacGregor and McBroom offered the following concurrent resolution:

A concurrent resolution calling for the responsible use of the state's transportation bonding authority and to state the Legislature's intent regarding future debt service payments.

Whereas, Article IX, Section 9 of the Constitution of the State of Michigan of 1963 grants authority to the Legislature to authorize the issuance of transportation bonds against constitutionally protected revenue designated for usage by the state. To facilitate the issuance of bonds, the Legislature, through statute, has authorized the State Transportation Commission to issue transportation bonds; and

Whereas, The State Transportation Commission is a constitutionally established body appointed by the Governor, subject to the advice and consent of the Senate. This body, not the Governor, is tasked with determining policy for the department, including, but not limited to, the financing mechanisms utilized by the department; and

Whereas, Neither the state constitution nor state law authorizes the Governor to issue transportation bonds; and

Whereas, The state of Michigan continues to make annual debt payments on transportation bonds first issued over 25 years ago, diminishing available funds for annual road projects; and

Whereas, With the issuance of new bonds, there could be even less available funding for state roads than there is today, due to 30 more years of annual debt payments to service the new bonds; now, therefore, be it

Resolved by the Senate (the House of Representatives concurring), That we call for the responsible use of the state's transportation bonding authority; and be it further

Resolved, That it is the intent of the Legislature that the total amount of bonds and notes issued pursuant to MCL 247.668b for transportation purposes, described in the second paragraph of Article IX, Section 9 of the Constitution of the State of Michigan of 1963, shall not exceed an amount as will be serviced as to the maximum principal and interest requirements by a sum equal to 15% of the total of the amount of money received from taxes, the use of which is restricted by Article IX, Section 9, and which is deposited in the state treasury to the credit of the State Trunk Line Fund during the state fiscal year immediately preceding the issuance of the bonds or notes, unless the growth rate of taxes exceeds 25% from the previous fiscal year; and be it further

Resolved, That it is the intent of the Legislature not to increase future debt service appropriations above the levels authorized for Fiscal Year 2019-2020; and be it further

Resolved, That it is the intent of the Legislature not to authorize appropriations for debt service payments for bonds longer than 10 years; and be it further

Resolved, That we urge the State Transportation Commission to provide a copy of this resolution to all individuals and entities who seek to purchase transportation bonds; and be it further

Resolved, That copies of this resolution be transmitted to the members of the State Transportation Commission, the Director of the Michigan Department of Transportation, and the Governor.