Michigan Votes Forum

Introduced in the Senate on May 9, 2001, to dip into the state counter-cyclical budget and economic stabilization fund ("rainy day fund") in order to make appropriations at previously anticipated levels, despite a decline in tax revenue compared with amounts which had been projected earlier in the year. The bill authorizes expenditures of $77 million from the fund in the current fiscal year, and up to $155 million in FY 2001-2002

The vote was 35 in favor, 0 opposed and 2 not voting

(Senate Roll Call 228 at Senate Journal 56)

Click here to view bill details.

“Mr. Speaker and members of the House: We should not dip into the budget stabilization fund without exhausting every other means.This is a poor approach to balancing the budget. We should re-visit the SBT elimination.We should re-visit the personal income tax reduction schedule. We should back off the E-Mich program and stop the 100 million Supreme Court House. We need the BSF for true rainy days.”

“Mr. Speaker and members of the House: I voted ‘no’ on SB 463, because I believe that the Michigan Legislature has not explored all sources of funding to address the budget shortfalls, nor have we had a thorough discussion of our funding priorities. We should consider a short term suspension of our previously approved tax cuts, our continuing to pour money into e-Michigan, and capital projects like the $100 million Supreme Court Building. We should consider the amount of revenues needed to fund our priorities, like early childhood development programs, educational programs, higher education, health care, environmental protection, and programs for our seniors and veterans. Then we need to consider how much is needed from the Budget Stabilization Fund, how much should come from suspension of our tax cut programs (should we suspend them for one year?), the transfer of unused funds in e-Michigan, and the potential suspension of capital projects. But those alternative sources of revenue were not looked at. Thus, I could not support this bill.”

“Mr. Speaker and members of the House: During the 1999-2000 session, as a member of the House Tax Policy Committee, I repeatedly cautioned us about continuing to approve legislation which would have a negative impact on Michigan’s revenue stream. Late in that session both House and Senate Tax Policy Committee Chairs were cautioning about the ‘erratic receipts of Michigan’s revenues’. Here we are today being requested to approve transferring $77 million to the General Fund for our current fiscal year and $155 million for the next fiscal year and an additional up to $50 million for this current fiscal year if needed to ensure a zero balance in the General Fund. I question the priorities being funded through these transfers as well as a real opportunity for the minority caucus to have any fruitful input at this time. We should be coming together as a total legislative body to meet the needs of Michigan’s people. There is no fiscally responsibility to consider a withdrawal for the next fiscal year at this time as no consensus revenue estimates have been agreed to and the State’s economic condition could improve substantially over the next six months to a year.”