2002 House Bill 5883 ↩

Senate Roll Call 697: Passed

To withdraw $892 million over two years from the Budget Stabilization Fund (BSF, or “rainy day fund”), for purposes of closing a budget deficit. The bill is tie-barred to Senate Bill 117, which requires that bill to become law before this one can. Without the tie-bar, passage of this bill will mean postponement of the 23-year phase out of the Single Business Tax (SBT). Under current law, the annual one-tenth percent SBT reductions are postponed if the BSF falls below $250 million. This bill will leave $33 million in the BSF. SB 117 lowers the SBT cut threshold to less than this amount. The bill would also suspend annual $35 million BSF withdrawals to pay bonds on the "Build Michigan III" road construction program. It also would require the state to rank contractors bidding on construction projects on the basis of qualifications, and seek to “negotiate a satisfactory contract” first with the top ranked firm, then with the second, etc. “Satisfactory contract” is not defined. Under current law, contracts go to the lowest qualified bidder.