To replace the previous version of the bill with one that contains a Republican plan to match current year spending with expected revenues, closing an approximately $722 million gap. This has most of the same cuts as
Senate Bill 220; the per-pupil school aid cut would be $36 (compared to $122, which is the amount expected if no other cuts are made or taxes raised.) The bill also removes $294.5 million that has been allocated but not yet spent from the “
21st Century Jobs Fund,” and removes smaller amounts from various other “restricted” funds, including $35 million from a state “convention facilities fund,” $70 million from a state underground fuel tank cleanup fund (target of a 2004 "
fund raid"), $20 million from a “Michigan Conservation Corps Endowment Fund,” $70 million from the “Merit Award Trust Fund” that funds non-need based college scholarships with tobacco lawsuit money, and others. The bill also repeats and adds to the accounting changes proposed by
Senate Bill 220, including reducing deposits into government employee pension and post-retirement health care funds to the legal minimum (which is significantly below the actuarially sound minimum). It contains additional cuts to higher education cuts, local bus subsidies, and revenue sharing to local governments.