To give the Michigan higher education student loan authority the authority to transfer money to the Michigan merit award trust fund, which was created to hold revenue from the 1998 tobacco company lawsuit settlement. Unlike money controlled by the authority directly, there is no restriction on the legislature using money in the merit award fund (which is a “trust” fund in name only) for any other purpose. The bill is part of an agreement to avoid spending cuts in the current fiscal year budget by borrowing up to $500 million, plus another $100 million from the student loan authority, which is itself borrowed money.   Official Text and Analysis.

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

To replace the previous version of the bill with one that only authorizes transferring money from the authority to the merit award fund in Fiscal Year 2007.

To give the Michigan higher education student loan authority the authority to transfer money to the Michigan merit award trust fund. Unlike money controlled by the authority directly, there is no restriction on the legislature using money in the merit award fund (which is a “trust” fund in name only) for any other purpose. The bill is part of an agreement to avoid spending cuts in the current fiscal year budget by borrowing up to $410 million, plus another $80 to $90 million from the student loan authority, which is itself borrowed money.

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

To replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described.