SB-0925, As Passed Senate, December 5, 2007
November 28, 2007, Introduced by Senator JELINEK and referred to the Committee on Appropriations.
A bill to amend 1984 PA 431, entitled
"The management and budget act,"
by amending section 395 (MCL 18.1395), as amended by 2007 PA 2.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 395. (1) Appropriation line items in a budget act
financed from federal, state restricted, local, or private funding
authorize spending only for the amount of the funds actually
received
earned up to the amount appropriated. When an
appropriation line item that is financed from federal, state
restricted,
local, or private funding sources is receiving earning
funds less than the appropriated amount, the department shall
reduce the overall level of expenditures from the appropriation
line item to reflect the estimated funding shortfall. In an
appropriation line item financed by multiple fund sources, any
state general fund/general purpose appropriation shall be used only
after the federal, state restricted, local, or private funds have
been expended.
(2) Except as otherwise provided in this section, spending of
state matching money in an appropriation shall be maintained in the
proportion appropriated. When federal money is earned in an amount
less than appropriated and the matching requirements have not been
reduced, spending of any state matching appropriation shall be
reduced accordingly.
(3) When federal matching formulas are adjusted to increase
the federal share of the costs of a program, spending of any state
matching appropriation shall be reduced accordingly. Within 15 days
after receipt of a notice of such a change, the state agency shall
notify the state budget director. The state budget director shall
within 15 days make a recommendation to the senate and house
appropriations committees and the fiscal agencies to adjust
existing appropriations to implement the change in the federal
matching rate.
(4) When federal matching formulas are adjusted to reduce the
federal share of the costs of a program, the affected state agency
shall notify the department. After receipt of the notice of such a
change the state budget director shall take appropriate corrective
action. For purposes of this subsection, a transfer to increase the
state matching appropriations shall not be permitted under section
393(1).