2007 Senate Bill 436 / Public Act 17

Balance 2006-2007 budget with cuts, accounting shifts, and debt

Introduced in the Senate

April 25, 2007

Introduced by Sen. Ron Jelinek (R-21)

To provide a "template" or "place holder" for a potential supplemental multidepartment appropriation for Fiscal Year 2006-2007. This bill contains no appropriations, but may be amended at a later date to include some. This is related to closing a gap between spending that has already been appropriated and expected revenue for the year.

Referred to the Committee on Appropriations

May 16, 2007

Substitute offered

To replace the previous version of the bill with one that contains a Republican plan to match current year spending with expected revenues, closing an approximately $722 million gap. This has most of the same cuts as <a href="http://www.michiganvotes.org/2007-SB-220">Senate Bill 220</a>; the per-pupil school aid cut would be $36 (compared to $122, which is the amount expected if no other cuts are made or taxes raised.) The bill also removes $294.5 million that has been allocated but not yet spent from the “<a href="http://www.michiganvotes.org/2005-HB-5047">21st Century Jobs Fund</a>,” and removes smaller amounts from various other “restricted” funds, including $35 million from a state “convention facilities fund,” $70 million from a state underground fuel tank cleanup fund (target of a 2004 "<a href="http://www.michiganvotes.org/2004-HB-6074">fund raid</a>"), $20 million from a “Michigan Conservation Corps Endowment Fund,” $70 million from the “Merit Award Trust Fund” that funds non-need based college scholarships with tobacco lawsuit money, and others. The bill also repeats and adds to the accounting changes proposed by <a href="http://www.michiganvotes.org/2007-SB-220">Senate Bill 220</a>, including reducing deposits into government employee pension and post-retirement health care funds to the legal minimum (which is significantly below the actuarially sound minimum). It contains additional cuts to higher education cuts, local bus subsidies, and revenue sharing to local governments.

The substitute passed by voice vote

Passed in the Senate 21 to 16 (details)

To adopt a Republican plan to match current year spending with expected revenues, closing an approximately $722 million gap. This has most of the same budget cuts and accounting changes as <a href="http://www.michiganvotes.org/2007-SB-220">Senate Bill 220</a>. It would remove $294.5 million that has been allocated but not yet spent from the “<a href="http://www.michiganvotes.org/2005-HB-5047">21st Century Jobs Fund</a>” and removes smaller amounts from various other “restricted” funds. See the <a href="http://www.michiganvotes.org/2007-SB-436">May 16 Senate substitute</a> for more details.

Motion to reconsider by Sen. Alan L. Cropsey (R-33)

To reconsider the vote by which the bill was passed.

The motion failed by voice vote

Motion to reconsider by Sen. Alan L. Cropsey (R-33)

To suspend the rules to permit reconsideration of the vote by which the bill was passed.

Consideration postponed

May 17, 2007

Withdrawn by Sen. Alan L. Cropsey (R-33)

A motion to reconsider the vote by which the bill was passed.

Received in the House

May 17, 2007

Referred to the Committee on Appropriations

May 25, 2007

Substitute offered by Rep. George Cushingberry (D-8)

To replace the previous version of the bill with one that embodies the May 25 agreement struck between the Governor, the House and the Senate, as described in the final House-passed and Senate-passed versions.

The substitute passed by voice vote

Amendment offered by Rep. Steve Tobocman (D-12)

To remove a "tie-bar" to House Bill 4500, which would increase the income tax from 3.9 percent to 4.6 percent. With the tie-bar the bill could not take place unless the tax hike also did.

The amendment passed by voice vote

Passed in the House 69 to 37 (details)

To partially close the gap between previously appropriated spending and expected revenue in the current fiscal year budget (which has just four months remaining) by adopting some relatively modest budget cuts (but none to schools), postponing various payments until the next fiscal year, contributing less-than-actuarially sound amounts to pension funds, “raiding” several “restricted” funds for $167.9 million (only $30 million of which is from “<a href="http://www.michiganvotes.org/2005-HB-5047">21st Century Jobs Fund</a>”), and borrowing. The bill actually increases welfare, Medicaid and prison spending. Government restructuring or additional spending cuts will be avoided by borrowing between $100 million and $600 million (depending on further negotiations); see <a href="http://www.michiganvotes.org/2007-HB-4850">House Bill 4550</a>, see <a href="http://www.michiganvotes.org/2007-HB-4851">House Bill 4551</a>, <a href="http://www.michiganvotes.org/2007-HR-123">House Resolution 123</a> and <a href="http://www.michiganvotes.org/2007-HR-124">House Resolution 124</a>.

Received in the Senate

May 25, 2007

Passed in the Senate 26 to 10 (details)

Signed with line-item veto by Gov. Jennifer Granholm

June 6, 2007

Which was to not accept a $5 million cut in state lottery promotional spending.