2007 House Bill 4851 (Use borrowed college grant money to pay for current spending )

Public Act 34 of 2007

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• Introduced by Rep. Andy Meisner on May 24, 2007, to give the Michigan higher education student loan authority the authority to transfer money to the Michigan merit award trust fund, which was created to hold revenue from the 1998 tobacco company lawsuit settlement. Unlike money controlled by the authority directly, there is no restriction on the legislature using money in the merit award fund (which is a “trust” fund in name only) for any other purpose. The bill is part of an agreement to avoid spending cuts in the current fiscal year budget by borrowing up to $500 million, plus another $100 million from the student loan authority, which is itself borrowed money.
  • 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-2) 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 only authorizes transferring money from the authority to the merit award fund in Fiscal Year 2007. The substitute passed in the House by voice vote on May 30, 2007.
• Passed in the House (101 to 5) on May 30, 2007, to give the Michigan higher education student loan authority the authority to transfer money to the Michigan merit award trust fund. Unlike money controlled by the authority directly, there is no restriction on the legislature using money in the merit award fund (which is a “trust” fund in name only) for any other purpose. The bill is part of an agreement to avoid spending cuts in the current fiscal year budget by borrowing up to $410 million, plus another $80 to $90 million from the student loan authority, which is itself borrowed money. [Vote Details and Comments]
• Received in the Senate on May 31, 2007.
  • Referred to the Senate Appropriations Committee on May 31, 2007.
    • Reported in the Senate on June 19, 2007, with the recommendation that the substitute (S-1) be adopted and that the bill then pass.
  • Substitute offered in the Senate on June 20, 2007, to replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described. The substitute passed in the Senate by voice vote on June 20, 2007.
• Passed in the Senate (36 to 0) on June 21, 2007, to give the Michigan higher education student loan authority the authority to transfer money to the Michigan merit award trust fund. Unlike money controlled by the authority directly, there is no restriction on the legislature using money in the merit award fund (which is a “trust” fund in name only) for any other purpose. The bill is part of an agreement to avoid spending cuts in the current fiscal year budget by borrowing up to $410 million, plus another $80 to $90 million from the student loan authority, which is itself borrowed money. [Vote Details and Comments]
• Received in the House on June 21, 2007.
• Passed in the House (97 to 9) on June 26, 2007. [Vote Details and Comments]
• Signed by Gov. Jennifer Granholm on July 10, 2007.

Comments

Introduced by Rep. Andy Meisner on May 24, 2007. Passed in the House (101 to 5) on May 30, 2007. New Comment

Received in the House on June 21, 2007. Passed in the House (97 to 9) on June 26, 2007. New Comment