Legislation watch
Mackinac Center for Public Policy
Capitol Building

2001 House Bill 4824: Expand school “sinking fund” uses
  1. Introduced by Rep. Doug Hart (R) on May 24, 2001, to allow school districts to levy 5-mill “sinking fund” taxes for a wide range of purposes. Under current law, sinking funds are permanent funds which may only be used to buy land or defray the debt on school construction or major repair projects. In contrast, regular school bonds may be used to fund a wide array of activities. The bill potentially allows new tax mills to be used to cover items considered "operating expenses," which is prohibited by the 1994 Proposal A initiative. Because the bill would amend a law enacted by voters through a ballot initiative, it probably would require a constitutionally-mandated 3/4 majority vote in both the House and Senate to become law.
    • Referred to the House Transportation Committee on May 24, 2001.
    • Substitute offered in the House on December 13, 2001, to replace the previous version of the bill with a version recommended by the committee which reported it. Under the substitute, schools would not have to use the term "sinking fund" on the ballot, but could label it by another descriptive term, such as "infrastructure investment fund". The substitute passed by voice vote in the House on December 13, 2001.
  2. Passed 95 to 2 in the House on December 13, 2001.
    Who Voted "Yes" and Who Voted "No"