Public Act 17 of 2007

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• Introduced by Sen. Ron Jelinek (R) on April 25, 2007, 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 Senate Appropriations Committee on April 25, 2007.
  • Substitute offered in the Senate on May 16, 2007, 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 Senate Bill 220; 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 “21st Century Jobs Fund,” 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 "fund raid"), $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 Senate Bill 220, 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 in the Senate by voice vote on May 16, 2007.
• Passed in the Senate (21 to 16) on May 16, 2007, 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 Senate Bill 220. It would remove $294.5 million that has been allocated but not yet spent from the “21st Century Jobs Fund” and removes smaller amounts from various other “restricted” funds. See the May 16 Senate substitute for more details. [Vote Details and Comments]
• Moved to reconsider by Sen. Alan L. Cropsey (R) on May 16, 2007, to reconsider the vote by which the bill was passed. The motion failed in the Senate by voice vote on May 16, 2007.
• Moved to reconsider by Sen. Alan L. Cropsey (R) on May 16, 2007, to suspend the rules to permit reconsideration of the vote by which the bill was passed.
  • Withdrawn by Sen. Alan L. Cropsey (R) on May 17, 2007, a motion to reconsider the vote by which the bill was passed.
• Received in the House on May 17, 2007.
  • Referred to the House Appropriations Committee on May 17, 2007.
  • Substitute offered by Rep. George Cushingberry (D) on May 25, 2007, 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 in the House by voice vote on May 25, 2007.
  • Amendment offered by Rep. Steve Tobocman (D) on May 25, 2007, 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 in the House by voice vote on May 25, 2007.
• Passed in the House (69 to 37) on May 25, 2007, 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 “21st Century Jobs Fund”), 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 House Bill 4550, see House Bill 4551, House Resolution 123 and House Resolution 124. [Vote Details and Comments]
• Received in the Senate on May 25, 2007, 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 “21st Century Jobs Fund”), 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 House Bill 4550, see House Bill 4551, House Resolution 123 and House Resolution 124. Passed in the Senate (26 to 10) on May 25, 2007. [Vote Details and Comments]
• Signed with line-item veto by Gov. Jennifer Granholm on June 6, 2007, which was to not accept a $5 million cut in state lottery promotional spending.