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2016 Senate Bill 822: Give bailout to Detroit school district

Public Act 197 of 2016

Introduced by Sen. Goeff Hansen (R) on February 24, 2016
To essentially eliminate current caps on the amount the state can lend for “financial emergency” loans to public school districts that spend more than they take in. This is to accommodate Gov. Rick Snyder’s proposal to bail out the insolvent Detroit school district by dividing it into two entities, one to run the schools and the other to service the district’s debt (see Senate Bill 710 and House Bill 5384).   Official Text and Analysis.
Referred to the House Government Operations Committee on February 24, 2016
Passed 21 to 16 in the Senate on March 22, 2016.
    See Who Voted "Yes" and Who Voted "No".
To authorize an immediate $300 million loan to the Detroit school district to cover debt incurred through over-spending in successive budgets. Also, to greatly increase the current caps on the amount the state can lend for “financial emergency” loans to municipalities and public school districts that incur overspending deficits. The bill is considered a "down payment" on an expected $515 million bailout and another $202 million for "transition costs." See also Senate Bill 710.
Received in the House on March 23, 2016
Referred to the House Appropriations Committee on March 23, 2016
Reported in the House on May 3, 2016
With the recommendation that the substitute (H-2) be adopted and that the bill then pass.
Amendment offered by Rep. Brian Banks (D) on May 5, 2016
To authorize lending the Detroit school district $33 million to cover salaries in the event an expected bailout package does not go into effect before the district runs out of money.
The amendment failed by voice vote in the House on May 5, 2016
Passed 55 to 53 in the House on May 5, 2016.
    See Who Voted "Yes" and Who Voted "No".
To authorize an immediate $33 million loan to the Detroit school district to cover debt incurred through over-spending in successive budgets. Also, to greatly increase the current caps on the amount the state can lend for “financial emergency” loans to municipalities and public school districts that incur overspending deficits. The bill is considered a "down payment" on an expected $500 million bailout of the district.
Received in the House on June 2, 2016
Moved to reconsider by Rep. Aric Nesbitt (R) on June 2, 2016
To reconsider the vote by which the House passed the bill.
The motion passed by voice vote in the House on June 2, 2016
Substitute offered by Rep. Al Pscholka (R) on June 2, 2016
To adopt a version that delivers $150 million for Detroit school "transition costs," as agreed to by the House.
The substitute passed by voice vote in the House on June 2, 2016
Passed 56 to 52 in the House on June 2, 2016.
    See Who Voted "Yes" and Who Voted "No".
To give the Detroit school district $150 million for "transition costs" as it executes the new governance structure authorized by House Bill 5384, of which no more than $25 million can be spent on deferred maintenance.
Received in the Senate on June 8, 2016
Amendment offered by Sen. David Knezek (D) on June 8, 2016
To lend the Detroit school district another $300 million on top of the other money in the bailout package.
The amendment failed 14 to 23 in the Senate on June 8, 2016.
    See Who Voted "Yes" and Who Voted "No".
Signed by Gov. Rick Snyder on June 21, 2016

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