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2007 House Bill 4850: Borrow to pay for current spending

Public Act 18 of 2007

Introduced by Rep. Virgil Smith (D) on May 24, 2007 To borrow $100 million dollars to avoid spending cuts in the Fiscal Year 2006-2007 state budget. The bill does this by increasing from $400 million to $500 million the borrowing authorized under the “21st Century Jobs Fund” business subsidy program. The first $400 million of that debt was loans with a duration of approximately 20 years. Note: Reportedly, the bill may be amended to authorize an additional $300 million in borrowing to pay for current year spending.   Official Text and Analysis.
Referred to the House Appropriations Committee on May 24, 2007
Reported in the House on May 30, 2007 With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
Substitute offered in the House on May 30, 2007 To replace the previous version of the bill with one that increases the proposed borrowing from $100 million to $500 million.
The substitute passed by voice vote in the House on May 30, 2007
Amendment offered by Rep. Daniel Acciavatti (R) and Rep. Bill Huizenga (R) on May 30, 2007 To authorize another $410 million in borrowing rather than another $500 million.
The amendment passed by voice vote in the House on May 30, 2007
Amendment offered by Rep. Bruce Caswell (R) and Rep. Kenneth Horn (R) on May 30, 2007 To earmark $202.8 million of the proposed borrowing to cover school spending.
The amendment passed by voice vote in the House on May 30, 2007
Passed 80 to 26 in the House on May 30, 2007 To borrow $410 million to avoid spending cuts in the Fiscal Year 2006-2007 state budget. The bill does this by increasing from $400 million to $810 million the borrowing authorized under the “21st Century Jobs Fund” business subsidy program. The first $400 million of that debt was loans with a duration of approximately 20 years. Note: Reportedly, the bill may be amended to authorize an additional $300 million in borrowing to pay for current year spending. The House Fiscal Agency notes that depending on the timing and structure of the borrowing this will impose annual debt service payments of $40 million to $46 million for the next 20 years.
Received in the Senate on May 31, 2007
Referred to the Senate Appropriations Committee on May 31, 2007
Amendment offered in the Senate on June 12, 2007 To add an additional $5 million in long term debt to avoid cuts in current spending in the FY 2006-2007 budget. The extra borrowing was added after Gov. Granholm line-item vetoed a $5 million spending cut in the budget bill that embodied the deal based on this bill's borrowing.
The amendment passed by voice vote in the Senate on June 12, 2007
Passed 23 to 14 in the Senate on June 12, 2007 To borrow $415 million to avoid spending cuts in the Fiscal Year 2006-2007 state budget. The bill does this by increasing from $400 million to $815 million the borrowing authorized under the “21st Century Jobs Fund” business subsidy program. The first $400 million of that debt was loans with a duration of approximately 20 years. The House Fiscal Agency estimates the measure will incur annual debt service payments of $40 million to $46 million for the next 20 years.
Received in the House on June 12, 2007 To concur with the Senate-passed version of the bill, which added an additional $5 million in long term debt to avoid cuts in current spending in the FY 2006-2007 budget.
Passed 78 to 29 in the House on June 12, 2007
Signed by Gov. Jennifer Granholm on June 12, 2007

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