SB-0139, As Passed Senate, May 19, 2011

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 139

     A bill to amend 1984 PA 431, entitled

"The management and budget act,"

by amending sections 367b and 386 (MCL 18.1367b and 18.1386),

section 367b as amended by 2007 PA 183 and section 386 as amended

by 1999 PA 8.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 367b. (1) A revenue estimating conference shall be held

in the second week of January and in the last third week in May of

each year, and as otherwise provided in this act.

     (2) The principals of the conference shall be the state budget

director or the state treasurer, the director of the senate fiscal

agency, and the director of the house fiscal agency, or their

respective designees.

     (3) The conference shall establish an official economic

forecast of major variables of the national and state economies.

The conference shall also establish a forecast of anticipated state

revenues as the conference determines including the following:

     (a) State income tax collections.

     (b) State sales tax collections.

     (c) Single business tax collections.Corporate income tax

collections.

     (d) Michigan business tax collections.

     (e) Total general fund/general purpose revenues.

     (f) Lottery transfers to the school aid fund.

     (g) Total school aid fund revenues.

     (h) Annual percentage growth in the basic foundation allowance

provided for in the state school aid act of 1979, 1979 PA 94, MCL

388.1601 to 388.1772.

     (i) Compliance with the state revenue limit established by

section 26 of article IX of the state constitution of 1963.

     (j) Pay-ins or pay-outs required under the countercyclical

budget and economic stabilization fund.

     (4) The conference's official forecast of economic and revenue

variables shall be determined by consensus among the principals.

     (5) The forecasts required by this section shall be for the

fiscal year in which the conference is being held and the ensuing

fiscal year.next 2 ensuing fiscal years. The conference shall also

forecast general fund/general purpose revenue trend line

projections and school aid fund revenue trend line projections for

the next 2 ensuing fiscal years.

     (6) The May revenue estimating conference shall establish

expenditure forecasts for medicaid expenditures and for human

services caseloads and expenditures for the fiscal year in which

the conference is being held and the next 2 ensuing fiscal years.

(7) (6) The official conference forecast forecasts of revenues

and expenditures shall be based upon the assumption that the

current law and current administrative procedures will remain in

effect for the forecast period.

     Sec. 386. (1) The state budget director shall prepare monthly

financial reports.

     (2) Within 45 30 days after the end of each month, the state

budget director shall transmit copies of the monthly financial

report to all the appropriations committee members and the fiscal

agencies. The monthly financial report due by December 15 1 shall

be the first monthly financial report to include statements

concerning the fiscal year which began on October 1.

     (3) Each monthly financial report shall contain the following

information:

     (a) A statement of actual monthly and year-to-date revenue

collections for the general fund/general purpose revenues, school

aid fund revenues, and the tax collections dedicated to the

transportation funds; including a comparison with prior year

amounts, statutory estimates, and the most recent estimates from

the executive branch.

     (b) A statement of estimated year-end appropriations lapses

and overexpenditures for the state general fund by principal

department.

     (c) A statement projecting the ending state general fund and

state school aid fund balances for the fiscal year in progress.

     (d) A summary of current economic events relevant to the

Michigan economy, and a discussion of any economic forecast or

current knowledge of revenue collections or expenditure patterns

that is the basis for a change in any revenue estimate or

expenditure projection.

     (e) A statement of estimated and actual total state revenues

compared to the revenue limit provided for in section 26 of article

IX of the state constitution of 1963.

     (f) A statement of the estimated fiscal year-end balance of

state payments to units of local government pursuant to section 30

of article IX of the state constitution of 1963.

     (g) Any other information considered necessary by the state

budget director or jointly requested by the chairpersons of the

appropriations committees.

     (h) A statement of year-to-date balances for the following

funds:

     (i) The countercyclical budget and economic stabilization fund

or its successor.

     (ii) The renaissance fund or its successor.

(ii) (iii) The natural resources trust fund or its successor.