TRANSFER FROM 21ST CENTURY JOBS

TRUST FUND TO GENERAL FUND

House Bill 4182 (Substitute H-1)

Sponsor:  Rep. Fred Durhal, Jr.

Committee:  Appropriations

Complete to 6-8-09

A REVISED SUMMARY OF HOUSE BILL 4182 AS REPORTED BY COMMITTEE 6-3-09

House Bill 4182 (H-1) would amend the Michigan Trust Fund Act to transfer $42.0 million from the 21st Century Jobs Fund to the state's General Fund for FY 2008-09.

The bill would also increase the specified amount of tobacco settlement revenue to be deposited into the 21st Century Jobs Fund in FY 2015-16 from $30.0 million to $72.0 million.  (FY 2015-16 is the final year for which the act specifies a deposit of tobacco settlement revenue into the fund.)

FISCAL IMPACT:

The bill would transfer funds available from the 21st Century Jobs Trust Fund as a result of previous budget actions taken in order to help balance the state's FY 2008-09 General Fund/General Purpose budget.

Those previous budget actions are as follows:

Remaining funds from 2008 PA 98 which allowed refinancing of Tobacco Settlement Finance Authority bonds ($50.0 million funding was transferred for Michigan Promotion Program; $10.0 million remains).	$10.0  million
FY 2008-09 21st Century Jobs Fund funding not yet appropriated (Statute requires $75.0 million annual deposit of tobacco settlement revenue until FY 2015).	10.0  million
FY 2008-09 vetoed MSF appropriation (2008 PA 261 Sec. 1027 for Lakeshore Advantage)	3.0  million
Executive Order 2009-22 (FY 2008-09 MSF 21st Century Jobs Fund appropriation)	9.05 million
Executive Order 2009-22 (prior-year work projects: Agriculture Development Fund and Michigan Forest Finance Authority Grant)	$9.95 million
TOTAL	$42.0 million

                                                                                      Fiscal Analysts: Viola Bay Wild and Kyle Jen

■ 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.