BSF WITHDRAWAL - S.B. 750: COMMITTEE SUMMARY
Senate Bill 750 (as introduced 10-18-01)
Sponsor: Senator Harry Gast
Committee: Appropriations
Date Completed: 10-23-01
CONTENT
The bill would amend the Management and Budget Act (Public Act 431 of 1984) to provide for withdrawals from the Counter-Cyclical Budget and Economic Stabilization Fund (BSF) for fiscal year (FY) 2000-01 and FY 2001-02. Specifically, the bill would amend subsection (11) of Section 353c of the Management and Budget Act to provide for an additional FY 2000-01 withdrawal and appropriation from the BSF to the State's General Fund. This additional withdrawal would be used to eliminate any FY 2000-01 General Fund/General Purpose (GF/GP) year-end budget deficit that might exist at bookclosing. This calculation would be made excluding any net FY 2000-01 GF/GP appropriation lapses. The State Budget Director must provide a report to the Legislature as to the amount withdrawn under this FY 2000-01 bookclosing adjustment.
The FY 2001-02 withdrawal from the BSF to the General Fund is provided for in subsection (13) of Section 353c. This subsection proposes for a $1,000 BSF transfer to the General Fund.
MCL 18.1353c
FISCAL IMPACT
Based on the October 22, 2001, Consensus Revenue Estimate, the amount of revenues moved from the BSF to the General Fund under subsection (11) would total $155.7 million. This would result in a total FY 2000-01 withdrawal and appropriation from the BSF to the General Fund of $232.7 million. This consists of the additional $155.7 million withdrawal and transfer provided under subsection (11) and the $77.0 million withdrawal and appropriation provided pursuant to Public Act 112 of 2000. Based on the enactment of Senate Bill 750, the Senate Fiscal Agency estimates that the BSF will have a balance of $1,040.6 million at the close of FY 2000-01.
- Fiscal Analyst: G. Olson
- S0102\s750sa
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.