2002 House Bill 5643 / Public Act 517

Introduced in the House

Feb. 14, 2002

Introduced by Rep. Sandy Caul (R-99)

The executive recommendation for the FY 2002-2003 Department of Career Development and the Michigan Strategic Fund budgets. This appropriates $689.2 million in adjusted gross spending (funded from all sources, including special state restricted fund and federal pass-through dollars, minus interdepartmental transfers), compared to $706.2 million, which was the FY 2001-2002 amount enacted in 2001, excluding any supplemental appropriations. Of this, $80.7 million will come from the General Fund (funded by actual state tax revenues), compared to the current year’s $91.0 million. The budget includes suspension of $13 million GF in job training grants funded by the Strategic Fund. The two departments’ FY 2002 funding were cut a combined $13.5 million in a November, 2001 budget-balancing executive order.

Referred to the Committee on Appropriations

March 19, 2002

Amendment offered

To replace the executive recommendation for the bill with a version which makes minor changes in the funding amounts, and minor changes in certain “boilerplate” language requiring or prohibiting various conditions and actions. The substitute includes an additional $1 million for a program that encourages bank lending to Michigan businesses.

The amendment passed by voice vote

Amendment offered by Rep. Joseph Rivet (D-97)

To prohibit privatization of functions previously provided by state employees unless the savings to the state are at least five-percent of the cost of providing the same service with state employees.

The amendment failed 52 to 56 (details)

Passed in the House 107 to 1 (details)

The House version of the FY 2002-2003 Department of Career Development and the Michigan Strategic Fund budgets. This appropriates $690.2 million in adjusted gross spending (funded from all sources, including special state restricted fund and federal pass-through dollars, minus interdepartmental transfers), compared to $706.2 million, which was the FY 2001-2002 amount enacted in 2001, excluding any supplemental appropriations. Of this, $81.7 million will come from the General Fund (funded by actual state tax revenues), compared to the current year’s $91.0 million. The budget includes suspension of $13 million GF in job training grants funded by the Strategic Fund. The two departments’ FY 2002 funding were cut a combined $13.5 million in a November, 2001 budget-balancing executive order. The House version adds $1 million for a program that encourages bank lending to Michigan businesses.

Received in the Senate

March 19, 2002

May 15, 2002

Substitute offered

To replace the Senate-passed version of the bill with a version which makes some changes in the funding amounts, and in certain “boilerplate” language requiring or prohibiting various conditions and actions. Among these are small changes in various line items, thereby providing "points of difference" between the Senate- and House-passed versions of the bill. This allows Senate members of a likely House-Senate conference committee to negotiate these items. Unless there is a point of difference, technically a conference committee may not change a particular provision. The substitute was amended to cap Economic Development Job Training Grants (EDJT) to universities at $500,000 each, and one grant per year per university.

The substitute passed by voice vote

May 16, 2002

Amendment offered by Sen. Shirley Johnson (R-13)

To eliminate a provision that requires the Family Independence Agency to provide welfare clients with eligibility guidelines for post-employment training. This has to do with the issue of one department budget containing instructions for a different department.

The amendment passed by voice vote

Amendment offered by Sen. Martha G. Scott (D-2)

To transfer $5 million from Indian gaming revenue that now goes into the Strategic Fund budget to the City of Highland Park. The city is on the verge of bankruptcy.

The amendment failed 16 to 21 (details)

Amendment offered by Sen. Alma Smith (D-18)

The amendment failed by voice vote

Passed in the Senate 37 to 0 (details)

The Senate version of the FY 2002-2003 Department of Career Development and the Michigan Strategic Fund budgets. This appropriates $692.4 million in adjusted gross spending (funded from all sources, including special state restricted fund and federal pass-through dollars, minus interdepartmental transfers), compared to $706.2 million, which was the FY 2001-2002 amount enacted in 2001, excluding any supplemental appropriations. Of this, $81.9 million will come from the General Fund (funded by actual state tax revenues), compared to the current year’s $91.0 million. The budget includes suspension of $13 million GF in job training grants funded by the Strategic Fund. The two departments’ FY 2002 funding were cut a combined $13.5 million in a November, 2001 budget-balancing executive order.

Received in the House

May 16, 2002

May 22, 2002

Substitute offered by Rep. Sandy Caul (R-99)

To replace the Senate-passed version of this budget with a version which makes several changes in the funding amounts, and in certain “boilerplate” language requiring or prohibiting various conditions and actions. The action will send the bill back to the Senate.

The substitute passed by voice vote

Passed in the House 98 to 2 (details)

Received in the Senate

May 22, 2002

May 30, 2002

Failed in the Senate 0 to 36 (details)

To concur with a House-passed changes to the bill. The vote sends the bill to a House-Senate conference committee to work out the differences.

Received in the House

May 30, 2002

June 19, 2002

Passed in the House 55 to 48 (details)

The House-Senate conference report for the FY 2002-2003 Department of Career Development and the Michigan Strategic Fund budgets. This appropriates $605.9 million in adjusted gross spending (funded from all sources, including special state restricted fund and federal pass-through dollars, minus interdepartmental transfers), compared to $706.2 million, which was the FY 2001-2002 amount enacted in 2001, excluding any supplemental appropriations. Of this, $64.5 million will come from the General Fund (funded by actual state tax revenues), compared to the current year’s $91.0 million. The conference report includes a number of specific line item cuts, but states that these would restored if a tobacco tax is approved. It also provides for a one percent department-wide operational expenses cut, with the specifics to be determined by the department, and reflects savings to come from a state employee early retirement pension enhancement program. There are actual cuts in some programs funded by the budget, and some funding source shifts from state to federal dollars.

Received in the Senate

June 19, 2002

June 27, 2002

Passed in the Senate 20 to 15 (details)

Received in the House

June 27, 2002

Signed with line-item veto by Gov. John Engler

July 25, 2002

In the House

Aug. 13, 2002

Referred to the Committee on Appropriations