March 6, 2007, Introduced by Rep. Acciavatti and referred to the Committee on Appropriations.
A bill to amend 1984 PA 431, entitled
"The management and budget act,"
by amending sections 371, 372, 395, and 551 (MCL 18.1371, 18.1372,
18.1395, and 18.1551), sections 371 and 372 as amended by 1999 PA 8
and section 395 as amended by 1988 PA 504.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 371. (1) An employee of a state agency shall not make or
authorize an expenditure or incur an obligation that results in the
agency exceeding the gross appropriation level of an appropriation
line item made to that agency by the legislature. The chief
executive officer and the chief financial officer of a state agency
are
responsible for any action taken by a state agency which that
results in exceeding an appropriation. The chief executive officer
of a state agency shall report in writing a violation of this
subsection immediately to the director and the chairpersons and the
minority chairpersons of the senate and house appropriations
committees. ,
together with Within 5
business days, the director
shall provide a statement in writing of any action taken to remedy
the occurrence.
(2) The director shall impose corrective actions on state
agencies that violate subsection (1). The corrective actions shall
include, but are not limited to, all of the following:
(a) Revocation of the ability for state agency staff to
override system controls that prevent overspending for a minimum of
18 months.
(b) Imposition of monthly allotments for a minimum of 18
months.
(c) Revocation of hiring privileges without state budget
director's approval for a minimum of 18 months.
(d) Revocation of contract and purchasing activities without
state budget director's approval for a minimum of 18 months.
(3) (2)
Within 15 days after a bill
appropriating an amount is
enacted into law, the amount appropriated shall be divided into
allotments by department and by state agency based on periodic
requirements to represent a spending plan. The state budget
director
shall review the allotments. The director shall submit a
report
each quarter to the appropriations committees and the fiscal
agencies
that compares actual expenditures to the allotments per
appropriation
line item made for each department and each state
agency
for that quarter. Not later
than June 1 of each year, the
director shall submit to the chairpersons and minority chairpersons
of the appropriations committees and the fiscal agencies a report
that provides estimates as to which appropriation line items are
being spent at a rate that would exceed the level of the
appropriation for the fiscal year. This report shall include
recommendations as to actions that need to be taken to ensure that
actual expenditures do not exceed the appropriation at the close of
the fiscal year. When it appears that a spending plan, or sources
of financing related to a spending plan, do not provide the level
of program service assumed in the appropriation for the fiscal
year, the state budget director shall immediately notify the
chairpersons and minority chairpersons of the appropriations
committees, the chairpersons and minority chairpersons of the
appropriate appropriations subcommittees, and the fiscal agencies.
Sec. 372. (1) Allotments may be adjusted by the state budget
director as requested by a department, subject to the
considerations
in section 371(2) 371.
(2) A payment which would exceed an allotment balance may be
withheld by order of the state budget director. Payments shall not
exceed the total periodic allotments for the fiscal year.
(3) For open-end appropriations, a continuing allotment may be
approved by the state budget director or the state budget director
may require the state agency to submit requests for periodic
allotments.
(4) Allotments may be reduced or adjusted by the state budget
director as a result of implementing measures of administrative
efficiency, including the abolishment of positions by appointing
authorities. An action taken under this section shall be reported
to the appropriations committees and the fiscal agencies within 15
days after the action is taken.
(5) The state budget director may issue directives for the
allotment of appropriations.
Sec.
395. (1) Appropriations in a budget act from restricted
sources
of financing authorize spending only the amount of
financing
earned, up to the amount appropriated. 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 up to the amount appropriated. When an
appropriation line item that is financed from federal, state
restricted, local, or private funding sources is receiving 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 additional federal funds
available
under these conditions are appropriated for the program
intended.
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).
(5)
In an appropriation financed by multiple sources, any
state
general fund-general purpose appropriations shall be used
only
after the restricted funds available have been expended.
(6)
Transfers between operating funds for financing shall be
expended
in the proportion appropriated and unused funds at the end
of
the fiscal year shall lapse to the fund from which appropriated.
Sec. 551. (1) The governor shall inquire into the
administration of this act.
(2) The governor may remove or suspend any appointive public
officer or other state employee within the executive branch for
violations of this act.
(3) The governor may remove or suspend any elective public
officer for violation of this act which constitutes gross neglect
of duty, corrupt conduct in office, misfeasance, or malfeasance.
(4) This section does not apply to any public officer of the
legislature or judicial branch of government.
(5) The governor shall report the reasons for any removal or
suspension to the legislature.