SB-0802, As Passed House, December 12, 2012

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 802

     A bill to amend 1984 PA 431, entitled

"The management and budget act,"

(MCL 18.1101 to 18.1594) by adding section 373.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 373. (1) Beginning fiscal year 2013-2014, each reporting

unit shall classify each line item in the enacted budget in 1 of

the following spending categories: core services, support services,

or work projects. Each reporting unit shall prepare a spending plan

for each line item in the most recently enacted budget.

     (2) A spending plan under this section shall do all of the

following:

     (a) Summarize the line items by appropriation unit.

     (b) Not exceed the gross appropriation for the line item in

the enacted budget. A spending plan may propose a lesser amount if

the federal or state revenues are anticipated to be less than the

amount appropriated.

     (c) Identify the budget requirements for each core service,

support service, and work project to, at a minimum, the following

expense categories:

     (i) State employee wages.

     (ii) State employee benefits including insurances, retirement,

and other postemployment benefits.

     (iii) Materials and equipment.

     (iv) Facilities, including rent, building occupancy charges,

and utilities.

     (v) Direct payments to clients.

     (vi) Medical payments on behalf of clients.

     (vii) Educational expenses on behalf of clients or students.

     (viii) Other contracts.

     (ix) All other costs.

     (d) Identify revenue sources and amounts for each

appropriation unit.

     (3) Each reporting unit shall submit its spending plan to the

state budget office each year within 60 days after enactment of the

budget. The state budget office shall define expense categories,

design a standardized spending plan reporting format, and make the

reporting form available for use by each reporting unit.

     (4) Within 30 days after the state budget office receives the

spending plans from the reporting units, the director of the state

budget office shall either review and approve each spending plan

or, if the director requests changes, return the spending plan to

the reporting unit with a description of requested changes. The

reporting unit shall resubmit a revised spending plan that

addresses the requested changes within 2 weeks. The state budget

director shall submit each approved spending plan to the

appropriate appropriations subcommittees and the senate and house

fiscal agencies in a spreadsheet-compatible format, and post it on

the department's public website.

     (5) For the fiscal year 2014-2015 and each subsequent fiscal

year, the legislature intends that the state budget director and

the senate and house appropriations committees work to identify

suitable adjustments to the annual state budget process to utilize

the information contained in the spending plans produced under this

section.

     (6) As used in this section:

     (a) "Appropriation unit" means a numbered section in a budget

bill that includes a related group of discrete line-item

appropriations representing the structure of an organization or its

major programs, the sum of which line-item appropriations equals

the total appropriation for the appropriation unit and the sum of

the appropriation unit total equals the total appropriation for the

organization.

     (b) "Core service" means an activity that provides measurable

value to beneficiaries such as citizens, businesses, and units of

local government.

     (c) "Reporting unit" means a state agency, excluding a public

body corporate and politic, to which an appropriation is made.

However, a public body corporate and politic shall post annually on

its website substantially the same spending and revenue data

described in subsection (2)(c) and (d).

     (d) "Schedule of programs" means a listing of the programs

within a budget that are funded from a specific line item.

     (e) "Support service" means an activity, such as information

technology, accounting, human resources, legal, and other support

functions that are required to support the ongoing delivery of core

services.

     (f) "Work project" means that term as defined in section 404

and that meets the criteria in section 451a(1).

     Enacting section 1. This amendatory act does not take effect

unless Senate Bill No. 21 of the 96th Legislature is enacted into

law.