2003 House Bill 4401 ↩

Senate Roll Call 263: The amendment was not adopted

To establish a new "school aid rainy day fund," as proposed by Gov. Jennifer Granholm, with $98 million of the money disbursed to states by the federal government under the 2003 tax cut bill. Money placed in the current general "rainy day fund" (Budget Stabilization Fund or BSF) may be used for school funding, but money in the "school aid rainy day fund" could not be used for non-education related purposes. A provision of the regular BSF requires that if its balance drops below $250 million, this stops the phase-out of the Single Business Tax (value added tax). Money placed in the "school aid rainy day fund" would not count toward this minimum tax-cut threshold level, which could postpone the resumption of the phase-out of the Single Business Tax.