Introduced by Rep. Shane Hernandez R-Port Huron on October 29, 2019
To revise a law that prohibits a state administrative board from shifting funds in an appropriation approved by the legislature for a specified purpose to something else, but allows an “inter-transfer of funds within the appropriation.” The bill would add that this exception applies “unless otherwise provided by law.” This relates to a dispute between Gov. Gretchen Whitmer and the Republican-controlled legislature over fund transfers in the 2019-20 state budget that GOP legislative leaders assert are excessive and improper. See House Bill 5175. Official Text and Analysis.
Referred to the House Government Operations Committee on October 29, 2019
Reported in the House on November 6, 2019
Without amendment and with the recommendation that the bill pass.
Substitute offered by Rep. Shane Hernandez R-Port Huron on December 4, 2019
A version of the bill that does not limit administrative board powers; see Dec. 4 House-passed bill description for details.
The substitute passed by voice vote in the House on December 4, 2019
To adopt a "stripped" version of the bill that does not limit fund-shifting by the state administrative board, in expectation of an compromise agreement between Democratic Gov. Gretchen Whitmer and the Republican-controlled legislature that would put limits on such transfers. This is part of deal on increasing spending in the 2019-20 budget by adding money for items that were subject to gubernatorial line-item vetoes; see Senate Bills 376 and 377.
To revise rules on the governor transferring funds appropriated by the legislature to a different purpose than the one originally specified. This is part of a compromise agreement between Democratic Gov. Gretchen Whitmer and the Republican-controlled legislature to increase spending that was earlier removed by the governor from the 2019-20 budget passed by the legislature, through the use of line item vetoes and fund shifts. This is a negotiated agreement that gives the legislature authority in this year's budget only to reverse some of those fund shifts.