2002 House Bill 5883 ↩

Senate Roll Call 808: Passed

To withdraw $892 million over two years from the Budget Stabilization Fund (BSF, or "rainy day fund"), in order to close a budget deficit. This will leave $33 million in the BSF. Under current law, annual one-tenth percent rate cuts required under an ongoing phaseout of the Single Business Tax (SBT) are postponed if the BSF falls below $250 million. SB 117 would allow the SBT cuts to continue even if this bill becomes law by lowering the minimum BSF balance threshold which triggers an SBT phaseout halt. An earlier version of the bill was tie-barred to Senate Bill 117, which means that bill must become law before this one can. However, Gov. Engler has said he will veto SB 117, so passage of this bill after the tie-bar has been removed most likely means further SBT cuts will be postponed, notwithstanding a 'yes' vote on SB 117. 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.