SB-0139, As Passed Senate, February 22, 2011

SUBSTITUTE FOR

SENATE BILL NO. 139

A bill to amend 1984 PA 431, entitled

"The management and budget act,"

by amending sections 367b, 371, 384, 386, and 423 (MCL 18.1367b,

18.1371, 18.1384, 18.1386, and 18.1423), section 367b as amended by

2007 PA 183, section 371 as amended by 2007 PA 2, and sections 384

and 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.

correction expenditures.

(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, including pupil membership factor.

(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.

(k) Medicaid expenditures.

(l) Human service caseloads and expenditures.

(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 and, to the extent possible, the next 3 ensuing fiscal

~~year.~~years.

(6) The official conference forecast shall be based upon the

assumption that the current law and current administrative

procedures will remain in effect for the forecast period.

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 that results

in exceeding an appropriation. The chief executive officer of a

state agency shall report a violation of this subsection

immediately to the director and the chairpersons of the senate and

house appropriations committees, together with a statement of any

action taken to remedy the occurrence.

(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. Not later than June 1 of each

year, the director shall submit to the chairpersons of the

appropriations committees and the fiscal agencies a copy of the

spending plan for each state department and a report that provides

estimates as to which departments are spending 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. 384. (1) A state agency which applies for federal

financial assistance shall notify the department and the

chairpersons and minority vice-chairpersons of the appropriations

committees within 10 days after the application is sent. The

notification to apply for federal financial assistance shall be on

a form prescribed by, and contain information requested by, the

department. Within 10 days after the state agency receives notice

that its application for federal financial assistance is awarded,

rejected, revised, or deferred, the state agency shall provide

notice of the award, rejection, revision, or deferment of the

application to the department and to the chairpersons and minority

vice-chairpersons of the appropriations committees.

(2) Within 30 days after a state agency receives notice that a

federal grant has been awarded to the state for which organizations

or units of local government are eligible to apply, the state

agency administering the federal grant program shall report to the

legislature and the fiscal agencies the availability of the grant

funds and the proposed plan for allocating the grant funds to the

organizations or units of local government. A state agency shall

not commit any federal grant funds before this notification to the

legislature has occurred and a subsequent appropriation of the

funds is made by the legislature.

(3) Before December 1 and June 1 of each year, each principal

department shall report to the appropriations committees, the

fiscal agencies, and the department estimates on the extent to

which federal revenues appropriated have been realized and are

expected for the remainder of the fiscal year. The report shall

detail the estimate by program or grant, and catalog of federal

domestic assistance account.

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.

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.

Sec. 423. The director and the chairpersons and minority vice-

chairpersons of the appropriations committees may examine, or cause

to be examined, the books, accounts, documents, systems, and

financial affairs of each state agency for the purpose of