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2007 Senate Bill 436: Balance 2006-2007 budget with cuts, accounting shifts, and debt

Public Act 17 of 2007

Introduced by Sen. Ron Jelinek R- on April 25, 2007
To provide a "template" or "place holder" for a potential supplemental multidepartment appropriation for Fiscal Year 2006-2007. This bill contains no appropriations, but may be amended at a later date to include some. This is related to closing a gap between spending that has already been appropriated and expected revenue for the year.   Official Text and Analysis.
Referred to the Senate Appropriations Committee on April 25, 2007
Substitute offered in the Senate on May 16, 2007
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.
The substitute passed by voice vote in the Senate on May 16, 2007
To adopt a Republican plan to match current year spending with expected revenues, closing an approximately $722 million gap. This has most of the same budget cuts and accounting changes as Senate Bill 220. It would remove $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. See the May 16 Senate substitute for more details.
Moved to reconsider by Sen. Alan L. Cropsey R- on May 16, 2007
To reconsider the vote by which the bill was passed.
The motion failed by voice vote in the Senate on May 16, 2007
Moved to reconsider by Sen. Alan L. Cropsey R- on May 16, 2007
To suspend the rules to permit reconsideration of the vote by which the bill was passed.
Withdrawn by Sen. Alan L. Cropsey R- on May 17, 2007
A motion to reconsider the vote by which the bill was passed.
Received in the House on May 17, 2007
Referred to the House Appropriations Committee on May 17, 2007
Substitute offered by Rep. George Cushingberry D- on May 25, 2007
To replace the previous version of the bill with one that embodies the May 25 agreement struck between the Governor, the House and the Senate, as described in the final House-passed and Senate-passed versions.
The substitute passed by voice vote in the House on May 25, 2007
Amendment offered by Rep. Steve Tobocman D- on May 25, 2007
To remove a "tie-bar" to House Bill 4500, which would increase the income tax from 3.9 percent to 4.6 percent. With the tie-bar the bill could not take place unless the tax hike also did.
The amendment passed by voice vote in the House on May 25, 2007
Received in the Senate on May 25, 2007
To partially close the gap between previously appropriated spending and expected revenue in the current fiscal year budget (which has just four months remaining) by adopting some relatively modest budget cuts (but none to schools), postponing various payments until the next fiscal year, contributing less-than-actuarially sound amounts to pension funds, “raiding” several “restricted” funds for $167.9 million (only $30 million of which is from “21st Century Jobs Fund”), and borrowing. The bill actually increases welfare, Medicaid and prison spending. Government restructuring or additional spending cuts will be avoided by borrowing between $100 million and $600 million (depending on further negotiations); see House Bill 4550, see House Bill 4551, House Resolution 123 and House Resolution 124.
Signed with line-item veto by Gov. Jennifer Granholm on June 6, 2007
Which was to not accept a $5 million cut in state lottery promotional spending.