BUDGET TARGET AGREEMENTS S.B. 562: FLOOR ANALYSIS
Senate Bill 562 (as reported without amendment) Sponsor: Senator John J. H. Schwarz, M.D. Committee: Appropriations
Senate Bill 562 proposes to make amendments to Public Act 431 of 1984, the Management and Budget Act. The bill attempts to implement a portion of the FY 1995-96 budget target agreements reached between the Department of Management and Budget and legislative leadership on May 17, 1995.
MCL 18.354
Senate Bill 562 proposes to make two changes in the Management and Budget Act. The first change would provide for additional FY 1995-96 General Fund/General Purpose (GF/GP) appropriations if the FY 1994-95 GF/GP budget closes the year with a surplus. The bill provides that the first $27.7 million of any FY 1994-95 GF/GP budget surplus would be available for appropriation to State universities, community colleges, and for special maintenance projects on State buildings. If the actual FY 1994-95 GF/GP year-end budget balance exceeds $27.7 million, any surplus above $27.7 million would be transferred to the Budget Stabilization Fund. The $27.7 million of surplus FY 1994-95 revenues available for appropriation under this bill would be distributed as follows:
State Universities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18.81 million
Community Colleges.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3.85 million
Special Maintenance State Buildings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5.00 million Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $27.66 million
The actual appropriations distributing these surplus funds would be made in the Higher Education, Community Colleges, and Capital Outlay appropriations bills. If FY 1994-95 closes the year with a deficit, or no surplus exists when the books are closed, the appropriations would not be made.
The second proposed change provided for in Senate Bill 562 states that when the FY 1995-96 GF/GP budget is closed, any year-end balance that exists would be transferred to the Budget Stabilization Fund.
Date Completed: 5-30-95 Fiscal Analyst: G. Olson
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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.