2007 House Bill 5221 / 2008 Public Act 165

Appropriations: 2007-2008 capital outlay budget

Introduced in the House

Sept. 15, 2007

Introduced by Rep. Morris Hood (D-11)

To provide the “template” or “place holder” for a Fiscal Year 2007-2008 capital outlay budget. This bill contains no appropriations, but may be amended to include them. It was introduced two weeks before the Oct. 1, 2007 deadline for adopting a 2007-2008 budget, with no agreement in sight regarding how to close a $1.7 billion gap between desired spending and expected revenue in this and preceding year’s budgets. The bill could be a “vehicle” for an eventual solution, or could become a short term “continuation budget” if a deal is not reached by Oct. 1.

Referred to the Committee on Appropriations

April 23, 2008

Reported without amendment

With the recommendation that the substitute (H-4) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one that uses it as a "vehicle" for a proposal by Gov. Granholm to borrow and spend $806 million on state and university construction projects with a total cost of some $1.5 billion, plus other spending. For more see the House-passed version, and for detail see <a href="http://www.legislature.mi.gov/documents/2007-2008/billanalysis/House/pdf/2007-HLA-5221-3.pdf">analysis</a> from the House Fiscal Agency.

The substitute passed by voice vote

Amendment offered by Rep. John Proos (R-79)

To strip out the authorization to borrow and spend $1.583 billion for state government, university and community college construction projects.

The amendment failed by voice vote

Amendment offered by Rep. Rick Shaffer (R-59)

To reduce state department budgets by the amount necessary to make debt service payments on the $806 million in direct state borrowing the bill proposes for state government, university and community college construction projects.

The amendment failed by voice vote

Amendment offered by Rep. Marty Knollenberg (R-41)

To require approval by the legislature's joint capital outlay subcommittee before a state department can proceed with a construction or lease project that would cost more than $1 million or the lease would cost more than $500,000.

The amendment failed by voice vote

Amendment offered by Rep. Kate Ebli (D-56)

To correct a drafting error in the language of the bill.

The amendment passed by voice vote

Passed in the House 59 to 45 (details)

To authorize spending more than $1.583 billion for state government, university and community college construction projects, of which $806 million would come from direct state borrowing, and the balance from other revenue sources. In addition, the bill authorizes the use of $209.5 million in mostly federal money for military base and airport safety and improvement projects (see also <a href="http://www.michiganvotes.org/2007-SB-511">Senate Bill 511</a>), spending $34.5 million from the Natural Resources Trust fund for recreation and conservation projects and land acquisitions, and more. See also <a href="http://www.michiganvotes.org/2008-HB-5888">House Bill 5888</a>, which increases the state’s debt limit by $1.1 billion (from $2.7 billion to $3.8 billion), which would be necessary to accommodate all this spending. The higher education and state office building construction project debt is part of a “stimulus” package proposed by Gov. Granholm.

Received in the Senate

April 24, 2008

May 27, 2008

Amendment offered

To strip out the authorization to borrow and spend $1.583 billion for state government, university and community college construction projects, and just leave the authorization to spend mostly federal money on airport improvement projects.

The amendment passed by voice vote

Amendment offered by Sen. Michael Switalski (D-10)

To add back the authorization to spend some $1.5 billion for state government, university and community college construction projects, plus various conservation and other projects.

The amendment failed 19 to 18 (details)

Amendment offered by Sen. Michael Switalski (D-10)

The amendment failed 19 to 18 (details)

Passed in the Senate 37 to 0 (details)

To authorize the use of $183.1 million, of which $162.8 million is federal money, for airport safety and improvement projects. This Senate-passed version does not contain the House-passed authorization for spending some $1.5 billion for state government, university and community college construction projects proposed by Gov. Granholm as a “stimulus” package, of which $806 million would come from direct state borrowing, and the balance from other revenue sources. See also <a href="http://www.michiganvotes.org/2007-SB-511">Senate Bill 511</a> and <a href="http://www.michiganvotes.org/2008-HB-5888">House Bill 5888</a>, which increases the state’s debt limit.

Received in the House

May 28, 2008

June 10, 2008

Passed in the House 108 to 0 (details)

To concur with the Senate-passed version of the bill, which contains just the (mostly) federal airport money, and not the spending authorization for some $1.5 billion in new state and university construction projects, most of which would be paid for with money borrowed by the state. This concludes what press reports called "a game of chicken," in which the House tried to attach the extra spending to the federal money, which must be accepted soon or foregone.

Signed by Gov. Jennifer Granholm

June 19, 2008