21ST CENTURY JOBS TRUST FUND H.B. 4182 (H-4):
COMMITTEE SUMMARY
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House Bill 4182 (Substitute H-4 as passed by the House)
Sponsor: Representative Fred Durhal, Jr.
House Committee: Appropriations
Senate Committee: Appropriations
Date Completed: 9-30-09
CONTENT
The bill would amend the Michigan Trust Fund Act to transfer $42.0 million from the 21st Century Jobs Trust Fund to the State General Fund in order to help balance the FY 2008-09 budget.
The bill also would increase the amount of tobacco settlement revenue that will be deposited into the 21st Century Jobs Trust Fund in FY 2015-16 from $30.0 to $72.0 million. Current language in the Michigan Trust Fund Act establishes FY 2015-16 as the final year for tobacco settlement revenue to be deposited annually into the 21st Century Jobs Trust Fund.
MCL 12.257 & 12.258
FISCAL IMPACT
The bill would transfer $42.0 million from the 21st Century Jobs Trust Fund into the General Fund in FY 2008-09. Various budgetary actions have occurred to make these funds available for transfer. These actions include the following:
1. Public Act 101 of 2008 amended the Michigan Tobacco Settlement Finance Authority Act to allow for the refinancing of the Tobacco Settlement Finance Authority bonds. This refinancing garnered $60.0 million of which $50.0 million was appropriated for the Michigan Promotion Program and business marketing, leaving a balance of $10.0 million.
2. As passed by the Legislature, the budget bill for the Michigan Strategic Fund (MSF), included an appropriation of $65.0 million in FY 2008-09 for the 21st Century Jobs Trust Fund. The Michigan Trust Fund Act requires $75.0 million to be deposited into the 21st Century Jobs Trust Fund each year through 2015. The difference between the allocation and the appropriation is $10.0 million which is available for transfer to the General Fund.
3. Section 1027 of Public Act 261 of 2008, requiring a set-aside for Lakeshore Advantage, was vetoed, reducing the FY 2008-09 appropriation from $65.0 million to $62.0 million. The $3.0 million remains available in the 21st Century Jobs Trust Fund.
4. Executive Order 2009-22 reduced the FY 2008-09 appropriation to the 21st Century Jobs Trust Fund by $9.05 million, from $62.0 million to $52.95 million.
5. Executive Order 2009-22 directed the lapse of two work project accounts from FY 2005-0621st Century Jobs Trust Fund appropriations. The Agriculture Development Fund work project contained a balance of $5.0 million and the grant to the Michigan Forest Finance Authority work project contained a balance of $4.95 million. The total amount of the lapse is $9.95 million.
The total of these five actions is $42.0 million that is available for deposit to the General Fund.
The increase of the deposit of tobacco settlement revenue into the 21s Century Jobs Trust Fund in FY 2015-16 would reduce the availability of tobacco settlement revenue to other funds by $42.0 million.
Fiscal Analysts: Elizabeth Pratt and Maria Tyszkiewicz
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. hb4182/0910