Senator Proos offered the following concurrent resolution:
Senate Concurrent Resolution No. 4.
A concurrent resolution to express support for the concept of preparing biennial state budgets.
Whereas, One of the key issues facing a legislature is how to organize most effectively the budget process. A whole series of elements go into deciding what is the best approach a state should use in addressing budgetary issues. A number of elements, including constitutional, statutory, and legislative rules, as well as standard operating procedures, go into structuring how the budgetary process is organized and implemented. One of the key components is the period of time for which the budget is effective--on an annual or a biennial cycle; and
Whereas, Individual states have utilized annual or biennial budgets at one time or another. The trend among state governments for the past two decades has been to abandon biennial budgeting for annual budgeting. Forty-four states practiced biennial budgeting in 1940, and about half as many do so currently. According to the National Conference of State Legislatures, there is little evidence that either annual or biennial state budgets hold clear advantages over the other. However, there is strong evidence that biennial budgeting is more conducive to program review and evaluation. In a state like Michigan, which has faced economic stress over the past decade and has faced difficult decisions over raising revenues, it is incumbent upon the Legislature to examine approaches like a biennial budget to get a better handle on reviewing and evaluating state programs; and
Whereas, Too much time is spent by the Michigan Legislature and the executive branch in dealing with annual budget battles not to consider a biennial budget approach. It is conducive to long-term planning, as well as allowing more time for program review and evaluation, and is less expensive and time-consuming than annual budgeting; and
Whereas, A two-year budgeting process would remove a great deal of the uncertainty now facing state-supported entities. As it is now, schools and local units of government face significant challenges to their own budgets and planning when the state's budget is completed late; and
Whereas, With more time for oversight under a biennial budget structure, particularly in the second year of the two-year cycle, the Legislature would be more vigilant in making sure programs operate as intended. This added attention to how public dollars are spent is clearly in order; and
Whereas, Biennial budgeting has been proposed and utilized to a limited extent in Michigan. In years past, the Legislature enacted biennial School Aid appropriation bills. Beginning with fiscal year 1994, Governor Engler proposed adoption of two-year appropriation bills for all state government to provide certainty and a planning base for those who receive state aid. More recently, Governor Snyder proposed a two-year budget for fiscal years 2012 and 2013. Although biennial appropriation bills were not passed by the Legislature in either case, these experiences may serve as a possible model and evidence of the Legislature's serious effort; now, therefore, be it
Resolved by the Senate (the House of Representatives concurring), That we express support for the concept of preparing biennial state budgets; and be it further
Resolved, That copies of this resolution be transmitted to the Speaker of the House of Representatives, the chair of the House Appropriations Committee, the Senate Majority Leader, the chair of the Senate Appropriations Committee, the Governor, and the State Budget Director.