Introduced
by
To channel the state income tax revenue that House Bill 5382 would earmark to cover the Detroit school district’s debt through a particular state fund created for the purpose. This is part of a House package consisting of House Bills 5382 to 5387.
Referred to the Committee on Appropriations
Reported without amendment
Without amendment and with the recommendation that the bill pass.
Amendment offered
by
To use revenue from the 1998 tobacco company lawsuit settlement to pay for the Detroit school district bailout.
The amendment passed by voice vote
Passed in the House 55 to 53 (details)
To earmark $72 million in annual tobacco lawsuit revenue to cover debt service on $500 million in Detroit school district debt, which was incurred by spending more than they took in for a number of years. The bill not give the Detroit district an extra $202 million for unspecified "transition costs," which was included in Senate-passed version (Senate Bill 822). See also House Bill 5384.
Referred to the Committee of the Whole
Motion to reconsider
by
The vote by which the House passed the bill.
The motion passed by voice vote
Substitute offered
by
To adopt a version that reflects the final bailout amounts and conditions agreed to by the House.
The substitute passed by voice vote
Passed in the House 57 to 51 (details)
To earmark $72 million annually in annual tobacco lawsuit revenue to cover debt service on $467 million in Detroit school district debt (on top of $50 million delivered earlier by House Bill 5296), plus $150 million for "transition costs" as the district executes the new governance structure authorized by House Bill 5384. The bill authorizes a total of $617 million in tobacco company revenue for the district, money which is currently used for Medicaid and other state spending.
Referred to the Committee of the Whole
Amendment offered
To add a promise that if tobacco lawsuit money isn't adequate to pay for the bailout, the legislature will appropriate extra money from the general fund rather than from the school aid fund (from which other school districts get money).
The amendment passed by voice vote
Passed in the Senate 20 to 17 (details)
To concur with the House-passed version of the bill, except for two changes. The Senate added language clarifying that none of the bailout money will come out of the state school aid fund (meaning from money available for other schools), and clarifying that state officials have the authority to close a failing charter school. The bill does not contain provisions previously passed by the Senate that would give a mayoral commission the power to ration charter schools in Detroit.
Passed in the House 57 to 52 (details)
To concur with the Senate-passed version of the bill, which clarified that none of the bailout money will come out of the state school aid fund (meaning from money available for other schools), and clarified that state officials have the authority to close a failing charter school.
