A bill to make, supplement, and adjust appropriations for various state departments and agencies for the fiscal year ending September 30, 2024; to provide for certain conditions on appropriations; and to provide for the expenditure of the appropriations.
Supplemental budget bill for FY '25. Typically, the Legislature passes adjustments to the budget that went into effect on October 1st of the previous year once revenue estimates are available in January.
Introduced
by
Referred to the Committee on Appropriations
Reported without amendment
Referred to the Committee of the Whole
1. Amend page 11, line 27, after “$” by inserting “0”.
Amendment concurred in by voice vote
1. Amend page 21, following line 7, by inserting:
“PART 1A
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2024-2025
Sec. 151. There is appropriated for various state departments and agencies to supplement appropriations for the fiscal year ending September 30, 2025, from the following funds:
Sec. 151. DEPARTMENT OF TREASURY
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION
$
0
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers
0
ADJUSTED GROSS APPROPRIATION
$
0
Federal revenues:
Total federal revenues
0
Special revenue funds:
Total local revenues
0
Total private revenues
0
Total other state restricted revenues
0
State general fund/general purpose
$
0
(2) REVENUE SHARING
City, village, and township revenue sharing
$
333,547,300
City, village, and township revenue sharing
(333,547,300)
County revenue sharing
291,111,400
County revenue sharing
(291,111,400)
GROSS APPROPRIATIONS
$
0
Appropriated from:
Sales tax
0
State general fund/general purpose
$
0”.
2. Amend page 21, following line 7, by inserting:
“PART 2A
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2024-2025
Sec. 1201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1a for the fiscal year ending September 30, 2025 is $0.00 and total state spending from state sources to be paid to local units of government is $0.00.
Sec. 1202. The appropriations made and expenditures authorized under this part and part 1a and the departments, commissions, boards, offices, and programs for which appropriations are made under this part and part 1a are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
TREASURY
Sec. 1301. (1) The funds appropriated in part 1 for city, village, and township revenue sharing are for grants to cities, villages, and townships and must be distributed as provided in this section.
(2) From the first $299,126,400.00 appropriated in part 1 for city, village, and township revenue sharing, each city, village, or township shall receive an amount equal to 100.0% of the revenue sharing payment for which the city, village, or township would have been eligible to receive under section 952 of article 5 of 2023 PA 119, rounded to the nearest dollar, regardless of whether any limitation or eligibility criteria under section 952 of article 5 of 2023 PA 119 was satisfied.
(3) The remaining amount appropriated in part 1 for city, village, and township revenue sharing after the distributions under subsection (2) must be distributed as follows:
(a) 1/3 shall be distributed as taxable value payments as provided under subsection (4).
(b) 1/3 must be distributed as unit type population payments as provided under subsection (5).
(c) 1/3 must be distributed as yield equalization payments as provided under subsection (6).
(4) A taxable value payment must be made to each city, village, and township, determined as follows:
(a) Determine the per capita taxable value for each city, village, and township by dividing the taxable value of that city, village, or township by the population of that city, village, or township.
(b) Determine the statewide per capita taxable value by dividing the total taxable value of all cities, villages, and townships by the total population of all cities, villages, and townships.
(c) Determine the per capita taxable value ratio for each city, village, and township by dividing the statewide per capita taxable value by the per capita taxable value for that city, village, or township.
(d) Determine the adjusted taxable value population for each city, village, and township by multiplying the per capita taxable value ratio as determined under subdivision (c) for that city, village, or township by the population of that city, village, or township.
(e) Determine the total statewide adjusted taxable value population, which is the sum of all adjusted taxable value population for all cities, villages, and townships.
(f) Determine the taxable value payment rate by dividing the amount to be distributed under this subsection by the total statewide adjusted taxable value population as determined under subdivision (e).
(g) Determine the taxable value payment for each city, village, and township by multiplying the result under subdivision (f) by the adjusted taxable value population for that city, village, or township.
(5) A unit type population payment must be made to each city, village, and township, determined as follows:
(a) Determine the unit type population weight factor for each city, village, and township as follows:
(i) For a township with a population of 5,000 or less, 1.0.
(ii) For a township with a population of more than 5,000 but less than 10,001, 1.2.
(iii) Except as otherwise provided in subparagraph (xix), for a township with a population of more than 10,000 but less than 20,001, 1.44.
(iv) For a township with a population of more than 20,000 but less than 40,001, 4.32.
(v) For a township with a population of more than 40,000 but less than 80,001, 5.18.
(vi) For a township with a population of more than 80,000, 6.22.
(vii) For a village with a population of 5,000 or less, 1.5.
(viii) For a village with a population of more than 5,000 but less than 10,001, 1.8.
(ix) For a village with a population of more than 10,000, 2.16.
(x) For a city with a population of 5,000 or less, 2.5.
(xi) For a city with a population of more than 5,000 but less than 10,001, 3.0.
(xii) For a city with a population of more than 10,000 but less than 20,001, 3.6.
(xiii) For a city with a population of more than 20,000 but less than 40,001, 4.32.
(xiv) For a city with a population of more than 40,000 but less than 80,001, 5.18.
(xv) For a city with a population of more than 80,000 but less than 160,001, 6.22.
(xvi) For a city with a population of more than 160,000 but less than 320,001, 7.46.
(xvii) For a city with a population of more than 320,000 but less than 640,001, 8.96.
(xviii) For a city with a population of more than 640,000, 10.75.
(xix) For a township that has a population of not less than 10,000 and provides documentation to the department of treasury that the township provides for or makes available all of the following, the unit type population weight factor for a city with the same population:
(A) Fire services.
(B) Police services on a 24-hour basis either through contracting for or directly employing personnel.
(C) Water services to 50% or more of its residents.
(D) Sewer services to 50% or more of its residents.
(b) Determine the adjusted unit type population for each city, village, and township by multiplying the unit type population weight factor for that city, village, or township as determined under subdivision (a) by the population of the city, village, or township.
(c) Determine the total statewide adjusted unit type population, which is the sum of the adjusted unit type population for all cities, villages, and townships.
(d) Determine the unit type population payment rate by dividing the amount to be distributed under this subsection by the total statewide adjusted unit type population as determined under subdivision (c).
(e) Determine the unit type population payment for each city, village, and township by multiplying the result under subdivision (d) by the adjusted unit type population for that city, village, or township.
(6) A yield equalization payment must be made to each city, village, and township in an amount that is sufficient to provide the guaranteed tax base for a local tax effort, but not to exceed 0.02. The payment must be determined as follows:
(a) The guaranteed tax base is the maximum combined state and local per capita taxable value that can be guaranteed in a state fiscal year to each city, village, and township for a local tax effort, not to exceed 0.02, if an amount equal to the amount described in subsection (3)(c) is distributed to cities, villages, and townships whose per capita taxable value is below the guaranteed tax base.
(b) The full yield equalization payment to each city, village, and township is the product of the amounts determined under subparagraphs (i) and (ii):
(i) An amount greater than zero that is equal to the difference between the guaranteed tax base determined in subdivision (a) and the per capita taxable value of the city, village, or township.
(ii) The local tax effort of the city, village, or township, not to exceed 0.02, multiplied by the population of that city, village, or township.
(7) For purposes of this section, any city, village, or township that completely merges with another city, village, or township must be treated as a single entity, so that when determining the eligible city, village, and township revenue sharing payment under section 952 of article 5 of 2023 PA 119 for the combined single entity, the city, village, and township revenue sharing amount that each of the merging local units of government was eligible to receive under section 952 of article 5 of 2023 PA 119 is summed.
Sec. 1302. (1) Cities, villages, and townships receiving a payment under section 1301(2) and counties receiving a payment under section 1303(2) shall receive 1/6 of their total payment on the last business day of October, December, February, April, June, and August. On the last business day of February 2025, cities, villages, and townships receiving a payment under section 1301(3) and counties receiving a payment under section 1303(3) shall receive 50% of the estimated payment to be received under section 1301(3) or 1303(3), as applicable. On the last business day of June 2025, cities, villages, and townships receiving a payment under section 1301(3) and counties receiving a payment under 1303(3) shall receive any remaining payment calculated under section 1301(3) or 1303(3), as applicable.
(2) Payments distributed under section 1301 or section 1303 may be withheld in accordance with sections 17a and 21 of the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.917a and 141.921.
(3) If a city, village, or township that receives a payment under section 1301 is determined to have a retirement pension benefit system in underfunded status under section 5 of the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2805, the city, village, or township must allocate to its pension unfunded liability an amount equal to 50% of the difference between its current year payment under section 1301 and the amount the city, village or township would have been eligible to receive under section 952 of article 5 of 2023 PA 119, rounded to the nearest dollar, regardless of whether any limitation or eligibility criteria under section 952 of article 5 of 2023 PA 119 was satisfied. A city, village, or township that has issued a municipal security under section 518 of the revised municipal finance act, 2001 PA 34, MCL 141.2518, is exempt from this requirement.
(4) If a county that receives a payment under section 1303 is determined to have a retirement pension benefit system in underfunded status under section 5 of the protecting local government retirement and benefits act, 2017 PA 202, MCL 38.2805, the county must allocate to its pension unfunded liability an amount equal to 50% of the difference between its current year payment under section 1303 and the amount the county would have been eligible to receive under section 955 of article 5 of 2023 PA 119, rounded to the nearest dollar, regardless of whether any limitation or eligibility criteria under section 955 of article 5 of 2023 PA 119 was satisfied. A county that has issued a municipal security under section 518 of the revised municipal finance act, 2001 PA 34, MCL 141.2518, is exempt from this requirement.
(5) If a city, village, township, or county adopts or has adopted a resolution declaring that city, village, township or county is a sanctuary community or that directs employees of that city, village, township or county not to cooperate with Federal immigration officials, then that city, village, township, or county is not eligible to receive any additional scheduled payments under subsection (1) for the remainder of the fiscal year for the amounts formulated under either section 1301 or section 1303.
Sec. 1303. (1) The funds appropriated in part 1 for county revenue sharing are for grants to counties and must be distributed as provided in this section.
(2) From the first $261,069,700.00 appropriated in part 1, each county shall receive an amount equal to 100.0% of the revenue sharing payment for which the county would have been eligible to receive under section 955 of article 5 of 2023 PA 119, rounded to the nearest dollar, regardless of whether any limitation or eligibility criteria under sections 952 and 955 of article 5 of 2023 PA 119 was satisfied.
(3) From the remaining amount appropriated in part 1 for county revenue sharing after the distributions under subsection (2), a taxable value payment must be made to each county, determined as follows:
(a) Determine the per capita taxable value for each county by dividing the taxable value of that county by the population of that county.
(b) Determine the statewide per capita taxable value by dividing the total taxable value of all counties by the total population of all counties.
(c) Determine the per capita taxable value ratio for each county by dividing the statewide per capita taxable value by the per capita taxable value for that county.
(d) Determine the adjusted taxable value population for each county by multiplying the per capita taxable value ratio as determined under subdivision (c) for that county by the population of that county.
(e) Determine the total statewide adjusted taxable value population, which is the sum of all adjusted taxable value population for all counties.
(f) Determine the taxable value payment rate by dividing the amount to be distributed under this subsection by the total statewide adjusted taxable value population as determined under subdivision (e).
(g) Determine the taxable value payment for each county by multiplying the result under subdivision (f) by the adjusted taxable value population for that county.
Sec. 1304. A term that is defined in the Glenn Steil state revenue sharing act, 1971 PA 140, MCL 141.901 to 141.921, has the same meaning when used in sections 950 to 956.
REPEALERS
Sec. 1352. Section 952 of article 5 of PA 121 of 2024 is repealed.
Sec. 1353. Section 954 of article 5 of PA 121 of 2024 is repealed.
Sec. 1354. Section 955 of article 5 of PA 121 of 2024 is repealed.
Sec. 1355. Section 957 of article 5 of PA 121 of 2024 is repealed.”
The amendment failed 17 to 19 (details)
“PART 1A
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2024-2025
Sec. 151. There is appropriated for various state departments and agencies and the legislative branch to supplement appropriations for the fiscal year ending September 30, 2025, from the following funds:
Sec. 151. DEPARTMENT OF TECHNOLOGY, MANAGEMENT, AND BUDGET
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION
$
0
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers
0
ADJUSTED GROSS APPROPRIATION
$
0
Federal revenues:
Total federal revenues
0
Special revenue funds:
Total local revenues
0
Total private revenues
0
Total other state restricted revenues
0
State general fund/general purpose
$
0
(2) CIVIL SERVICE COMMISSION
Executive direction
$
(9,815,300)
Executive direction
9,815,300
GROSS APPROPRIATIONS
$
0
Appropriated from:
State restricted funds 1%
0
State general fund/general purpose
$
0”.
4. Amend page 21, following line 7, by inserting:
“PART 2A
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2024-2025
Sec. 1201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1 for the fiscal year ending September 30, 2025 is $0 and total state spending from state sources to be paid to local units of government is $0.
Sec. 1202. From the funds appropriated in part 1, the Civil Service Commission shall require that state employees in the classified civil service perform their work in-person at least four days per week, unless their job duties specifically require work performed off-site.”
The amendment failed 17 to 19 (details)
1. Amend page 17, following line 12, by inserting:
“PART 1A
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2024-2025
Sec. 151. There is appropriated for various state departments and agencies to supplement appropriations for the fiscal year ending September 30, 2025, from the following funds:
Sec. 151. DEPARTMENT OF STATE
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION
$
150,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers
0
ADJUSTED GROSS APPROPRIATION
$
150,000
Federal revenues:
Total federal revenues
0
Special revenue funds:
Total local revenues
0
Total private revenues
0
Total other state restricted revenues
0
State general fund/general purpose
$
150,000
(2) ELECTION REGULATION
Election administration and services
150,000
GROSS APPROPRIATION
$
150,000
Appropriated from:
State general fund/general purpose
$
150,000”.
2. Amend page 21, following line 7, by inserting:
“PART 2A
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2024-2025
Sec. 1201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1a for the fiscal year ending September 30, 2025 is $150,000.00 and total state spending from state sources to be paid to local units of government is $150,000.00.
Sec. 1202. The appropriations made and expenditures authorized under this part and part 1a and the departments, commissions, boards, offices, and programs for which appropriations are made under this part and part 1a are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.”.
Sec. 1301. From the funds appropriated in part 1 for election administration and services, up to $150,000.00 may be used to reimburse local governments for costs associated with holding a special election in the 35th state senate district during the state fiscal year ending September 30, 2025.”.
The amendment failed 17 to 19 (details)
1. Amend page 17, following line 12, by inserting:
“PART 1A
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2024-2025
Sec. 151. There is appropriated for various state departments and agencies to supplement appropriations for the fiscal year ending September 30, 2025, from the following funds:
Sec. 151. DEPARTMENT OF NATURAL RESOURCES
(1) APPROPRIATION SUMMARY
Full-time equated unclassified positions
0.0
GROSS APPROPRIATION
$
0
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers
0
ADJUSTED GROSS APPROPRIATION
$
0
Federal revenues:
Total federal revenues
0
Special revenues funds:
Total local revenues
0
Total private revenues
0
Total other state restricted funds
0
State general fund/general purpose
$
0
(2) DEPARTMENTAL ADMINISTRATION AND SUPPORT
Unclassified salaries—FTEs
(6.0)
(964,400)
Unclassified salaries—FTEs
6.0
964,400
GROSS APPROPRIATION
$
0
Appropriated from:
Special revenues funds:
Total other state restricted revenues
0
State general fund/general purpose
$
0”.
2. Amend page 21, following line 7, by inserting:
“PART 2A
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2024-2025
Sec. 1201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1a for the fiscal year ending September 30, 2025 is $0.00 and total state spending from state sources to be paid to local units of government is $0.00.
Sec. 1202. The appropriations made and expenditures authorized under this part and part 1a and the departments, commissions, boards, offices, and programs for which appropriations are made under this part and part 1a are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 1301. The director of the department of natural resources shall not use funds appropriated in part 1 to approve the sale or lease of forested state land for solar projects without an affirmative resolution of support from all affected local units of government.”.
The amendment failed 16 to 20 (details)
1. Amend page 21, following line 7 by inserting:
“PART 2A
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2024-2025
Sec. 1202. (1) Funds remaining within work project account #20753 shall not be expended and shall remain within the work project until lapsed to the general fund.
(2) Any funds lapsed to the general fund as a result of any lapse described under subsection (1) shall be appropriated and distributed as follows:
(a) 64.2% to the county road commissions, distributed according to the formula established under section 12 of 1951 PA 51, MCL 247.662.
(b) 35.8% to cities and villages for road repairs and reconstructions, distributed according to the formula established under section 13 of 1951 PA 51, MCL 247.663.”.
The amendment failed 18 to 18 (details)
1. Amend page 21, following line 7 by inserting:
“PART 2A
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2024-2025
Sec. 1201. (1) $500,000,000.00 from the strategic outreach and attraction reserve fund shall become unassigned and lapse to the general fund on the effective date of this act.
(2) $500,000,000.00 from the state general fund shall be appropriated and distributed as follows:
(a) 64.2% to the county road commissions, distributed according to the formula established under section 12 of 1951 PA 51, MCL 247.662.
(b) 35.8% to cities and villages for road repairs and reconstructions, distributed according to the formula established under section 13 of 1951 PA 51, MCL 247.663.
REPEALERS
Sec. 1301. Section 351 of article 9 of PA 121 of 2024 is repealed.”
The amendment failed by voice vote
1. Amend page 21, following line 7, by inserting:
“PART 1A
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2024-2025
Sec. 151. There is appropriated for various state departments and agencies to supplement appropriations for the fiscal year ending September 30, 2025, from the following funds:
Sec. 151. DEPARTMENT OF TREASURY
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION
$
700,000,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers
0
ADJUSTED GROSS APPROPRIATION
$
700,000,000
Federal revenues:
Total federal revenues
0
Special revenue funds:
Total local revenues
0
Total private revenues
0
Total other state restricted revenues
0
State general fund/general purpose
$
700,000,000
(2) ONE-TIME APPROPRIATIONS
Income tax relief fund
700,000,000
GROSS APPROPRIATIONS
$
700,000,000
Appropriated from:
State general fund/general purpose
$
700,000,000”.
2. Amend page 21, following line 7, by inserting:
“Sec. 1201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1a for the fiscal year ending September 30, 2025 is $700,000,000.00 and total state spending from state sources to be paid to local units of government is $0.00.
Sec. 1202. The appropriations made and expenditures authorized under this part and part 1a and the departments, commissions, boards, offices, and programs for which appropriations are made under this part and part 1a are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 1501. (1) The income tax relief fund is created within the state treasury.
(2) From the funds appropriated in part 1a for the income tax relief, $700,000,000.00 shall be deposited into the income tax relief fund.
(3) Funds in the income tax relief fund must be used to offset any revenue losses incurred from a reduction in the state income tax to 4.05%.”.
The amendment failed by voice vote
1. Amend page 21, following line 7 by inserting:
“PART 2A
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2024-2025
Sec. 1301. (1) $500,000,000.00 from the strategic outreach and attraction reserve fund shall become unassigned and lapse to the general fund on the effective date of this act.
(2) $500,000,000.00 from the state general fund shall be appropriated to the department of transportation to repair and reconstruct state and local bridges that are classified as critical or failure rated bridges according to the department of transportation.
(3) Unexpended general fund/general purpose funds appropriated in this section are designated as a work project appropriation. Unencumbered or unallotted funds must not lapse at the end of the fiscal year and must be available for expenditures for projects under this section until the projects have been completed. The following is in compliance with section 451a of the management and budget act, 1984 PA 431, MCL 18.1451a:
(a) The purpose of the project is to support the repair and reconstruction of state and local bridges classified as critical or failed.
(b) The project will be accomplished by utilizing state employees, local road commissions, or contractors.
(c) The total estimated cost of the project is $500,000,000.00.
(d) The tentative completion date is September 30, 2029.
REPEALERS
Sec. 1351. Section 351 of article 9 of PA 121 of 2024 is repealed.”.
The amendment failed by voice vote
1. Amend page 17, following line 12, by inserting:
“PART 1A
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2024-2025
Sec. 151. There is appropriated for various state departments and agencies to supplement appropriations for the fiscal year ending September 30, 2025, from the following funds:
Sec. 151. DEPARTMENT OF CORRECTIONS
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION
$
6,000,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers
0
ADJUSTED GROSS APPROPRIATION
$
6,000,000
Federal revenues:
Total federal revenues
0
Special revenue funds:
Total local revenues
0
Total private revenues
0
Total other state restricted revenues
0
State general fund/general purpose
$
6,000,000
(2) CORRECTIONAL FACILITIES ADMINISTRATION
Local ambulatory services
6,000,000
GROSS APPROPRIATION
$
6,000,000
Appropriated from:
State general fund/general purpose
$
6,000,000”.
2. Amend page 21, following line 7, by inserting:
“PART 2A
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2024-2025
Sec. 1201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1a for the fiscal year ending September 30, 2025 is $6,000,000.00 and total state spending from state sources to be paid to local units of government is $0.
Sec. 1202. The appropriations made and expenditures authorized under this part and part 1a and the departments, commissions, boards, offices, and programs for which appropriations are made under this part and part 1a are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 1301. From the funds appropriated in part 1 for local ambulatory services, up to $6,000,000.00 may be used to reimburse local ambulatory service providers for any unpaid and outstanding costs provided to the department and not paid by the department’s contracted provider prior to fiscal year 2024-25.”.
The amendment failed by voice vote
1. Amend page 17, following line 12, by inserting:
“PART 1A
LINE-ITEM APPROPRIATIONS
FOR FISCAL YEAR 2024-2025
Sec. 151. There is appropriated for various state departments and agencies to supplement appropriations for the fiscal year ending September 30, 2025, from the following funds:
Sec. 151. DEPARTMENT OF TREASURY
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION
$
1,000,000,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental transfers
0
ADJUSTED GROSS APPROPRIATION
$
1,000,000,000
Federal revenues:
Total federal revenues
0
Special revenue funds:
Total local revenues
0
Total private revenues
0
Total other state restricted revenues
0
State general fund/general purpose
$
1,000,000,000
(2) TAX PROGRAMS
Families with young children tax credit
1,000,000,000
GROSS APPROPRIATION
$
1,000,000,000
Appropriated from:
State general fund/general purpose
$
1,000,000,000”.
2. Amend page 21, following line 7, by inserting:
“PART 2A
PROVISIONS CONCERNING APPROPRIATIONS
FOR FISCAL YEAR 2024-2025
Sec. 1201. Pursuant to section 30 of article IX of the state constitution of 1963, total state spending from state sources under part 1a for the fiscal year ending September 30, 2025 is $0.00 and total state spending from state sources to be paid to local units of government is $0.00.
Sec. 1202. The appropriations made and expenditures authorized under this part and part 1a and the departments, commissions, boards, offices, and programs for which appropriations are made under this part and part 1a are subject to the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 1301. (1) From funds appropriated in part 1a for families with young children tax credit, the department of treasury shall implement a tax credit or tax credit grant program as described under subsections (2) through (5)
(2) For tax years that begin on and after January 1, 2024, a qualified taxpayer may claim a credit against the tax imposed under part 1 of the income tax act, 1967 PA 281, MCL 206.1 to 206.847 equal to $5,500.00 for each qualified dependent of the qualified taxpayer for which an exemption was claimed under MCL 206.30(2)(b) for that same tax year.
(3) If the credit allowed under this section exceeds the tax liability of the qualified taxpayer for the tax year, that portion of the credit that exceeds the tax liability must be refunded.
(4) Subject to subsection (5), if an amendment to the income tax act, 1967 PA 281, MCL 206.1 to 206.847 that would effectuate the tax credit described under this section has not been enacted by the effective date of this act, the department of treasury may issue a payment or other direct relief of tax liability as described under subsections (2) and (3) as a grant payment to a qualified taxpayer using the appropriation for families with young children tax credit in part 1a.
(5) If an amendment to the income tax act, 1967 PA 281, MCL 206.1 to 206.847 that would effectuate the tax credit described under this section has been enacted by the effective date of this act, the appropriation in part 1a for families with young children tax credit must not be spent, and must lapse to the state general fund.
(6) Except as otherwise provided under this subsection, terms used in this section mean the same thing as those terms defined under part 1 of the income tax act, 1967 PA 281, MCL 206.1 to 206.847. As used in this section:
(a) “Qualified dependent” means a dependent who is 3 years of age or less on the last day of the tax year for which the credit is claimed.
(b) “Qualified taxpayer” means a taxpayer who is allowed to claim a credit under MCL 206.272 for a tax year on a return filed under this part for the same tax year.”.
The amendment failed by voice vote
Passed in the Senate 19 to 17 (details)
Referred to the Committee on Appropriations
Motion to discharge from committee
by
The motion did not prevail by voice vote
