2003 House Bill 4032 / Public Act 39

Introduced in the House

Jan. 28, 2003

Introduced by Rep. Marc Shulman (R-39)

To provide a “template” or “place holder” for a potential supplemental multi-department budget for FY 2002-2003. This bill contains no appropriations, but may be amended at a later date to include some, or to include budget cuts.

Referred to the Committee on Appropriations

April 2, 2003

Reported without amendment

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

April 3, 2003

Substitute offered

Containing spending revisions needed to balance current-year spending with lower-than-expected tax collections. As introduced, the bill was simply a "shell" with no specific provisions. See House-passed version for details.

The substitute passed by voice vote

Passed in the House 105 to 2 (details)

A supplemental budget bill with spending revisions needed to balance Fiscal Year 2002-2003 spending with lower-than-expected tax collections. The bill contains a number of spending cuts, and several revenue source transfers which shift program funding from the state General Fund (actual state tax revenues) to restricted funds (including tobacco settlement funds), or to (hoped for) federal money. On balance, the bill cuts $7.8 million in General Fund spending, and adds or transfers $41.8 million in spending authorizations from other sources. Among the cuts are $1.8 million from the legislature’s budget and $1.1 million from the judiciary. The House added $24 million from a restricted state trunkline Critical Bridge Fund to pay for local bridge projects. This transfer had been vetoed by Gov. John Engler, who recommended an $18 million transfer. Much more information on Michigan’s budget is available at <a href="http://www.mackinac.org/4964">Hot Topics: Michigan’s Budget Challenge</a> at www.mackinac.org/4964.

Received in the Senate

April 22, 2003

Referred to the Committee on Appropriations

May 1, 2003

Reported without amendment

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

May 6, 2003

Substitute offered

To replace the previous version of the bill with one which expresses differences between the Republican-majority in the Senate and Governor Jennifer Granholm regarding certain details of this budget. See Senate-passed version for details.

The substitute passed by voice vote

Amendment offered by Sen. Mark Schauer (D-19)

To strip out $2.2 million in assistance for Oakland County related to April ice storms.

The amendment failed 13 to 24 (details)

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

To not allow the Attorney General office to keep up to $800,000 it collects in prisoner reimbursement funds for other activities, but require that the money be turned over to the state general fund.

The amendment failed 16 to 22 (details)

Amendment offered by Sen. Martha G. Scott (D-2)

To add $1.5 million to pay for an August, 2003 Detroit referendum on whether the city will retain its current reform school board, or return to the elected school board system in place before a 1999 state takeover. The new referendum date is proposed by Senate Bill 157.

The amendment failed 10 to 25 (details)

Passed in the Senate 28 to 10 (details)

A supplemental multi-department budget for FY 2002-2003. The bill appropriates $330.9 million in gross funding, mostly federal money, but cuts current year general fund appropriations by $5.6 million, including $1.8 million in cuts the Legislature's budget, and $1.1 million from the judiciary. It adds $204.9 million for Medicaid; $23.3 million to the Department of Community Health for bioterrorism programs and $48 million for other homeland security grants; $14.1 million for election reform programs; $7.25 million to eradicate the Emerald Ash Borer in Southeast Michigan; $8.4 million for low-income home energy assistance, and $2.2 million in assistance for Oakland County related to April ice storms. Unspent departmental appropriations would be deposited in the Budget Stabilization ("Rainy Day”) fund, except the Attorney General office could keep up to $800,000 it collects in prisoner reimbursement funds for other activities. The bill also contains $1.5 million for the Department of Natural Resources to pay summer taxes on some 60,000 parcels containing one-million acres of state-owned land, which it has threatened not to pay this year; and orders the reinstatement of 34 road expansion projects that Gov. Jennifer Granholm had postponed as part of her “Fix it First” program, which places a higher priority on repairing existing roads.

Received in the House

May 14, 2003

Amendment offered by Rep. Gretchen Whitmer (D-69)

To strike out a provision in the Senate-passed version of the bill which penalizes the Department of Education if it does not include certain data in its June 2003 calculations on whether a school has met the federal adequate yearly progress (AYP) standard in compliance with the federal "No Child Left Behind Act" of 2001.

The amendment failed by voice vote

Amendment offered by Rep. Gretchen Whitmer (D-69)

To appropriate sufficient general fund dollars to make up a current-year School Aid Fund deficit caused by actual tax reciepts being less than previously appropriated grants to school districts. The amendment is in response to a May 13, 2003 revenue estimation which shows a current year school aid funding shortfall of some $91 million. It expresses a concensus betweeen the legislature and the governor that it is too late in the school year to cut funding to school districts. There is not a concensus regarding the source of the money needed to make up the shortfall.

The amendment passed 106 to 1 (details)

Failed in the House 46 to 62 (details)

To concur with a Senate-passed version of the bill. The vote sends the bill to a House-Senate conference committee to work out the differences. This vote also cancels the previously adopted Whitmer amendment regarding the a current-year school aid deficit, carrying the discussion on that issue into the conference report negotiations.

June 12, 2003

Received

Passed in the House 104 to 3 (details)

A House-Senate conference report for a Fiscal Year 2002-2003 supplemental budget. This final compromise version appropriates $357.3 million in gross funding, mostly federal money, but cuts current year general fund appropriations by $5.6 million. Its provisions generally follow those of the Senate version, with some additional spending. It adds $12 million in new debt to replace general fund dollars which previously had been committed the Northwest Midfield Terminal Project at Detroit Metro Airport. As in the Senate version, it requires the Department of Transportation to move forward with 34 road projects totaling $181 million previously included in the department’s “five year plan,” but eliminated by Gov. Granholm’s “Fix it First” program. The conference version also adds back $24 million in federal Critical Bridge Fund money proposed by the House to pay for local bridge projects. $2.5 million in additional federal money for election reforms was added, for a total of $16.7 million. See the Senate-passed version for other major provisions. Much more information on Michigan’s budget is available at <a href="http://www.mackinac.org/4964">Hot Topics: Michigan’s Budget Challenge</a> at www.mackinac.org/4964.

Received in the Senate

June 17, 2003

Passed in the Senate 38 to 0 (details)

Signed with line-item veto by Gov. Jennifer Granholm

July 7, 2003

In which she vetoed $2.2 million in assistance for Oakland County related to April ice storms, a provision allowing the Attorney General to keep up to $800,000 it collects in prisoner reimbursement funds for other activities, and a reinstatement of 34 road expansion projects that the governor had postponed as part of her “Fix it First” program, which places a higher priority on repairing existing roads. A $1.5 million appropriation for the Department of Natural Resources to pay summer taxes on some 60,000 parcels containing one-million acres of state-owned land is also vetoed here, but will be included in a different bill.

Received in the House

July 15, 2003

Referred to the Committee on Appropriations