2003 House Bill 4367 / Public Act 237

Introduced in the House

March 18, 2003

Introduced by Rep. Marc Shulman (R-39)

To provide a “template” or “place holder” for a Fiscal Year (FY) 2003-2004 multidepartmental supplemental budget. This budget contains no appropriations, but these may be added later to make cuts or changes to current or future appropriations.

Referred to the Committee on Appropriations

Dec. 3, 2003

Passed in the House 89 to 7 (details)

Received in the Senate

Dec. 4, 2003

Referred to the Committee on Appropriations

Dec. 11, 2003

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one which embodies a December 2003 agreement struck between Sen. Majority Leader Ken Sikkema and Gov. Granholm to close a $900 million gap between desired state spending and expected revenues. See Senate-passed version for details.

The substitute passed by voice vote

Passed in the Senate 37 to 1 (details)

A supplemental multi-department budget for FY 2003-2004. The bill appropriates $287.4 million in gross funding, mostly federal and state Medicaid money. It contains federal and restricted fund appropriations for a variety of programs that will replace general fund dollars cut by Executive Order 2003-23. The executive order, this bill and Senate Bill 556 are part of a December 2003 agreement struck between Sen. Majority Leader Ken Sikkema and Gov. Granholm to close a $900 million gap between desired state spending and expected revenues. Part of that deal includes Senate Bill 852, which would increase the income rate from 3.9 percent to 4.0 percent between Jan. 1, 2004 and July 1, 2004. About half the deficit would be closed with spending cuts, including cuts in local revenue sharing and in grants to colleges and universities, and the balance with the increased income tax revenue, new revenue from a proposed tax amnesty and boosted tax collection enforcement, funding shifts, and other means. This bill also cuts $1.1 million from the judiciary and $1.2 million from the legislature. Much more information on Michigan’s budget is available at <a href="http://www.mackinac.org/4964">Hot Topics: Michigan’s Budget Challenge</a> at www.mackinac.org/4964.

Received in the House

Dec. 16, 2003

Amendment offered by Rep. Bruce Caswell (R-58)

To eliminate a provision giving community colleges an extra "incentive appropriation" if they restrain tuition hikes to less than the rate of inflation.

The amendment failed by voice vote

Amendment offered by Rep. Bruce Caswell (R-58)

To revise a provision giving community colleges an extra "incentive appropriation" if they restrain tuition hikes to less than the rate of inflation. The revised provision would give them the extra money if tuition increases for the 2003-2004 school year are kept under $300 per student.

The amendment failed by voice vote

Substitute offered by Rep. Marc Shulman (R-39)

To replace the previous version of the bill with one which makes an additional $35 million in spending cuts over and above the Senate version of the bill. Combined with the additional school aid spending cuts in the House version of Senate Bill 556, and $16.6 million in mass transit cuts proposed in a substitute to House Bill 5298, the House has offered a total of $77.1 million in additional cuts, which is the amount of revenue that would be generated by the six-month income tax rate increase which is part of the deficit agreement struck by Senate Majority Leader Ken Sikkema and Gov. Jennifer Granholm. Shortly after this vote the House defeated Senate Bill 852, which contains the income tax rate hike.

The substitute passed by voice vote

Amendment offered by Rep. Jerry Kooiman (R-75)

To appropriate more for before- or after-school programs that provide youth from low income families with “a safe, engaging environment to motivate and inspire learning outside the traditional classroom setting”.

The amendment failed by voice vote

Amendment offered by Rep. John Pastor (R-19)

To clarify a grant of snowmobile license money for crossing grade lands or bridges on a snowmobile trail near Cadillac.

The amendment failed by voice vote

Amendment offered by Rep. Mickey Mortimer (R-65)

To authorize state money to arrange bus transportation for Michigan military reservists who are scheduled to be shipped oversees, to allow them to travel from their departure sites back to the state for Christmas.

The amendment passed by voice vote

Amendment offered by Rep. John Pastor (R-19)

To clarify a grant of snowmobile license money for crossing grade lands or bridges on a snowmobile trail near Cadillac.

The amendment passed by voice vote

Passed in the House 59 to 46 (details)

A supplemental multi-department budget for FY 2003-2004. The bill contains federal and restricted fund appropriations for a variety of programs that will replace general fund dollars cut by Executive Order 2003-23. The executive order, this bill and Senate Bill 556 are part of a December 2003 agreement struck between Sen. Majority Leader Ken Sikkema and Gov. Granholm to close a $900 million gap between desired state spending and expected revenues. Part of that deal includes Senate Bill 852, which would increase the income rate from 3.9 percent to 4.0 percent between Jan. 1, 2004 and July 1, 2004. However, the House version of this bill contains an additional $38 million in cuts above those in the Senate-passed bill. Combined with the additional school aid spending cuts in the House version of Senate Bill 556, and $16.6 million in mass transit cuts proposed in a substitute to House Bill 5298, the House has offered a total of $77.1 million in additional cuts, which is the amount the higher tax rate would raise. Shortly after this vote the House defeated the income tax rate hike. Under the House package, slightly more than half the deficit would be closed with spending cuts, including cuts in local revenue sharing and in grants to colleges and universities, and the balance with new revenue from a proposed tax amnesty and boosted tax collection enforcement, funding shifts, and other means. This bill appropriates $282.6 million in gross funding, mostly federal and state Medicaid money. It also cuts $1.1 million from the judiciary and $1.2 million from the legislature. Much more information on Michigan’s budget is available at <a href="http://www.mackinac.org/4964">Hot Topics: Michigan’s Budget Challenge</a> at www.mackinac.org/4964.

Received in the Senate

Dec. 17, 2003

Failed in the Senate 3 to 35 (details)

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

Received in the House

Dec. 17, 2003

Received in the Senate

Dec. 18, 2003

Passed in the Senate 37 to 0 (details)

To adopt a compromise version of the bill reported by a House-Senate conference committee, which does not include the additional spending cuts added by the House. It does contain an additional $10 million in cuts to state department administration expenses, and transfers $2 million in unused prisoner adult education funds to the general fund or other uses. The bill also contains $660,000 for an Attorney General investigation of Intermediate School District (ISD) spending and contract abuses. This conference report was adopted after the House passed Senate Bill 852, which raises the income rate from 3.9 percent to 4.0 percent between Jan. 1, 2004 and July 1, 2004.

Received in the House

Dec. 18, 2003

Passed in the House 105 to 4 (details)

To adopt a compromise version of the bill reported by a House-Senate conference committee, which does not include the additional spending cuts added by the House. It does contain an additional $10 million in cuts to state department administration expenses, and transfers $2 million in unused prisoner adult education funds to the general fund or other uses. The bill also contains $660,000 for an Attorney General investigation of Intermediate School District (ISD) spending and contract abuses. (A number of bills have also been introduced to reform ISDs.) This conference report was adopted after the House passed Senate Bill 852, which raises the income rate from 3.9 percent to 4.0 percent between Jan. 1, 2004 and July 1, 2004.

Signed with line-item veto by Gov. Jennifer Granholm

Dec. 23, 2003

Including the veto of $660,000 for an Attorney General investigation of Intermediate School District (ISD) spending and contract abuses; a transfer of $100,000 from the State Aid to Libraries to the Historical Administration and Services; and $2,250,000 for snowmobile trails near Cadillac.

Received in the House

Jan. 14, 2004

Referred to the Committee on Appropriations