REMONUMENTATION FUND TRANSFER

Senate Bill 959

Sponsor:  Sen. Michael Switalski

House Committee:  Appropriations

Senate Committee:  Appropriations

Complete to 2-21-06

A SUMMARY OF SENATE BILL 959 AS PASSED BY THE SENATE 2-15-06

The bill would amend the State Survey and Remonumentation Act to transfer $15 million of the unreserved balance in the Remonumentation Fund to the state General Fund for the fiscal year ending September 30, 2006 only.

The bill also specifies that:  "In addition to any other appropriation, for the 2005-2006 fiscal year only, it is the intent of the Legislature that this state appropriate an amount from the General Fund to the [Remonumentation] Fund equal to the difference between the amount deposited in the fund in that year and $10,134,000.00.  This [provision] only applies if the amount deposited into the fund is less than $10,134,000.00 for the fiscal year."

MCL 54.271

FISCAL IMPACT:

            The transfer of $15 million from the Remonumentation Fund unreserved fund balance will leave an estimated balance of $500,000 immediately after the transfer. The lack of fund balance will create a shortage of funding for the current year Remonumentation Grants. The current year appropriation is $14 million, which assumed the use of some of the fund balance. Current year grants to Michigan's 83 counties are expected to be $10.1 million, which could be paid from current year fee revenue and the remaining fund balance. However, the 20-year Remonumentation program is already estimated to be under-funded by approximately $52 million and behind schedule. This will transfer require an 18-month extension of the program itself and the associated fee revenue.

                                                                                           Legislative Analyst:   Chris Couch

                                                                                                  Fiscal Analyst:   Richard Child

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.