EXECUTIVE ORDER

No. 1993-1

HEADLEE AMENDMENT BLUE RIBBON COMMISSION

WHEREAS, in 1978, Michigan voters adopted Article IX, Sec. 6 and Secs. 25-31, to the Constitution of the State of Michigan of 1963, known as the Headlee Amendment, in order to limit taxation, guarantee a fair share of state spending for local governments, prevent the transfer of unfunded obligations to local governments and to afford a variety of opportunities for voter approval of financial decisions; and

WHEREAS, in the decade and a half since the voters of Michigan adopted the Headlee Amendment significant questions and legal challenges have arisen with respect to its scope, mandates and implementation; and

WHEREAS, the time is right to assemble a group of Michigan citizens who have demonstrated particular knowledge and interest in the effective functioning of this Amendment for the purpose of conducting a scholarly review of issues and practices that have arisen since its enactment.

NOW, THEREFORE, I, John Engler, Governor of the State of Michigan, pursuant to the powers vested in me by the Constitution of the State of Michigan of 1963 and the laws of the State of Michigan, do hereby order the establishment of the Headlee Amendment Blue Ribbon Commission (the "Commission").

The Commission is charged with the following responsibilities:

1. Review statues enacted to implement Article IX, Sec. 6 and Secs. 25-31, of the Constitution of the State of Michigan of 1963, as adopted by the voters in 1978, and commonly known as the "Headlee Amendment," in order to identify items which the Commission believes to be in conflict with the requirements of the Amendment and propose legislative changes to the extent necessary.

2. Identify provisions of the Headlee Amendment for which implementing legislation has not yet been enacted and propose legislation to the extent necessary.

3. Review the repeated and particular concerns that have been raised with respect to assessments, equalization and millage rollbacks by class, the staterevenue limit, local bonding, non-property taxes, the local share of state revenues and the Amendment's enforcement provisions.

4. Review the effectiveness of the Headlee Amendment in preventing the transfer of unfunded obligations from state government to local units of government.

The Commission shall consist of twelve (12) persons, as follows:

(a) One member shall be appointed as the Chairperson;

(b) Four members shall be appointed from and represent the public;

(c) Four members shall be appointed from and represent education and local government; and

(d) Three members shall be appointed from and represent state government.

The members of the Commission shall be appointed by the Governor and shall serve at the pleasure of the Governor. The Governor shall appoint one member of the Commission as Chairperson and such member shall serve as Chairperson at the pleasure of the Governor. Appointees shall serve during the life of the Commission, which shall complete its work within six months of organization and issue a final report and recommendations no later than three months thereafter.

The Commission shall be staffed by existing resources in the Department of Treasury and will receive no additional state resources.

All state departments and agencies shall cooperate with the Commission in the performance of its responsibilities. The Commission may request, and state agencies and departments shall provide, such policy and technical information as is required by the Commission in the discharge of its responsibilities.

The provisions of this Executive Order shall become effective upon filing.

Given under my hand and the Great Seal of the State of Michigan this ________ day of February, in the Year of our Lord, One Thousand Nine Hundred Ninety-Three, and of the Commonwealth, One Hundred Fifty-Seven.

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GOVERNOR

BY THE GOVERNOR:

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SECRETARY OF STATE