2003 Senate Bill 575 / Public Act 168

Introduced in the Senate

June 10, 2003

Introduced by Sen. Bob Emerson (D-27)

To reduce by three percent the amount of the combined Constitutional and statutory state revenue payments paid to local and county governments in Fiscal Year 2003-2004, except for Detroit.

Referred to the Committee on Appropriations

June 19, 2003

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one which also cuts revenue sharing payments to Detroit.

The substitute passed by voice vote

Amendment offered by Sen. Michael Prusi (D-38)

To eliminate the proposed cut in revenue sharing to Detroit.

The amendment failed 15 to 22 (details)

Amendment offered by Sen. Michael Switalski (D-10)

To tie-bar the bill to House Bill 4658, which would allow Detroit to postpone for one year a one-tenth percent income tax cut scheduled for 2004, leaving the tax at 2.65 percent for residents and 1.325 percent for commuters.

The amendment failed 16 to 21 (details)

Passed in the Senate 27 to 10 (details)

To reduce by three percent the amount of the combined Constitutional and statutory state revenue payments paid to local and county governments in Fiscal Year 2003-2004, including Detroit.

Received in the House

June 19, 2003

Referred to the Committee on Appropriations

June 26, 2003

Substitute offered by Rep. Mike Pumford (R-100)

To replace the previous version of the bill with one which would cut the statutory revenue sharing to cities, villages and townships by 10.26 percent, and by three-percent to counties. See House-passed bill for more details.

The substitute passed by voice vote

Passed in the House 66 to 40 (details)

To cut the statutory revenue sharing to cities, villages and townships by 10.26 percent, and by three-percent to counties. Given the differing proportions of statutory and Constitutionally-mandated revenue sharing which comprise the payments made to particular local governments, this formula has the effect of reducing payments more to the large (and poorer) cities and less to small ones. For example, Detroit's reduction would be $15 million greater than under the governor's proposed across-the-board three-percent reduction from the combined Constitutional and statutory payments.

Received in the Senate

July 1, 2003

July 3, 2003

Failed in the Senate 8 to 29 (details)

To concur with a House-passed version of the bill. The vote sends the bill to a House-Senate conference committee to work out the differences.

July 15, 2003

Received

Received in the House

July 15, 2003

In the Senate

July 17, 2003

Passed in the Senate 30 to 2 (details)

The House-Senate conference report, which is essentially the bill as introduced. This would reduce by three percent the amount of the combined Constitutional and statutory state revenue payments paid to local and county governments in Fiscal Year 2003-2004, including Detroit. The actual cut will come from the statutory portion, as reducing the Constitutional portion would require a Constitutional amendment. But the size of the reduction is based on the combined total. Given the differing proportions of statutory and Constitutionally-mandated revenue sharing which comprise the payments made to particular local governments, this formula has the effect of reducing payments less to the large (and poorer) cities (including Detroit) and less to newer, faster growing communities.

In the House

July 17, 2003

Passed in the House 108 to 0 (details)

Signed by Gov. Jennifer Granholm

Aug. 11, 2003