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2016 House Bill 5383: Pay Detroit school debt, require reforms

Public Act 193 of 2016

Introduced by Rep. Amanda Price (R) on February 18, 2016 To channel the state income tax revenue that House Bill 5382 would earmark to cover the Detroit school district’s debt through a particular state fund created for the purpose. This is part of a House package consisting of House Bills 5382 to 5387.   Official Text and Analysis.
Referred to the House Appropriations Committee on February 18, 2016
Reported in the House on May 3, 2016 Without amendment and with the recommendation that the bill pass.
Amendment offered by Rep. Amanda Price (R) on May 5, 2016 To use revenue from the 1998 tobacco company lawsuit settlement to pay for the Detroit school district bailout.
The amendment passed by voice vote in the House on May 5, 2016
Passed 55 to 53 in the House on May 5, 2016.
    See Who Voted "Yes" and Who Voted "No".
To earmark $72 million in annual tobacco lawsuit revenue to cover debt service on $500 million in Detroit school district debt, which was incurred by spending more than they took in for a number of years. The bill not give the Detroit district an extra $202 million for unspecified "transition costs," which was included in Senate-passed version (Senate Bill 822). See also House Bill 5384.
Received in the Senate on May 10, 2016
Referred to the Senate on May 10, 2016
Received in the House on June 2, 2016
Moved to reconsider by Rep. Aric Nesbitt (R) on June 2, 2016 The vote by which the House passed the bill.
The motion passed by voice vote in the House on June 2, 2016
Substitute offered by Rep. Amanda Price (R) on June 2, 2016 To adopt a version that reflects the final bailout amounts and conditions agreed to by the House.
The substitute passed by voice vote in the House on June 2, 2016
Passed 57 to 51 in the House on June 2, 2016.
    See Who Voted "Yes" and Who Voted "No".
To earmark $72 million annually in annual tobacco lawsuit revenue to cover debt service on $467 million in Detroit school district debt (on top of $50 million delivered earlier by House Bill 5296), plus $150 million for "transition costs" as the district executes the new governance structure authorized by House Bill 5384. The bill authorizes a total of $617 million in tobacco company revenue for the district, money which is currently used for Medicaid and other state spending.
Received in the Senate on June 8, 2016
Referred to the Senate on June 8, 2016
Amendment offered in the Senate on June 8, 2016 To add a promise that if tobacco lawsuit money isn't adequate to pay for the bailout, the legislature will appropriate extra money from the general fund rather than from the school aid fund (from which other school districts get money).
The amendment passed by voice vote in the Senate on June 8, 2016
Passed 20 to 17 in the Senate on June 8, 2016.
    See Who Voted "Yes" and Who Voted "No".
To concur with the House-passed version of the bill, except for two changes. The Senate added language clarifying that none of the bailout money will come out of the state school aid fund (meaning from money available for other schools), and clarifying that state officials have the authority to close a failing charter school. The bill does not contain provisions previously passed by the Senate that would give a mayoral commission the power to ration charter schools in Detroit.
Received in the House on June 8, 2016
Passed 57 to 52 in the House on June 9, 2016.
    See Who Voted "Yes" and Who Voted "No".
To concur with the Senate-passed version of the bill, which clarified that none of the bailout money will come out of the state school aid fund (meaning from money available for other schools), and clarified that state officials have the authority to close a failing charter school.
Signed by Gov. Rick Snyder on June 21, 2016

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