MICHIGAN TRUST FUND ACT H.B. 4884 (S-1): FLOOR ANALYSIS
House Bill 4884 (Substitute S-1 as reported)
Sponsor: Representative Shanelle Jackson
House Committee: Appropriations
Senate Committee: Appropriations
CONTENT
The Michigan Trust Fund Act provides for the establishment of the 21st Century Jobs Fund. The 21st Century Jobs Fund was established to receive the $400.0 million of net proceeds from the sale of future tobacco settlement revenue. This $400.0 million was used for economic development programs across the State. House Bill 4884 (S-1) would clarify that the $415.0 million of additional borrowing against future tobacco settlement revenue authorized in Public Act 18 of 2007 would not be credited to the 21st Century Jobs Fund. Pursuant to Public Act 18 of 2007, this $415.0 million of additional borrowing against future tobacco settlement revenue will be deposited into the School Aid Fund ($207.8 million) and the General Fund ($207.2 million).
The bill also contains the authorization to transfer and appropriate $50.0 million from the 21st Century Jobs Fund to the General Fund. This transfer was part of the comprehensive agreement to eliminate the FY 2006-07 budget deficit.
MCL 12.257
FISCAL IMPACT
House Bill 4884 (S-1) would implement two of the procedures to be used to eliminate the FY 2006-07 budget deficit. These are the securitization of $415.0 million of future tobacco settlement payments and the transfer of $50.0 million from the 21st Century Jobs Fund to the General Fund.
Date Completed: 6-21-07 Fiscal Analyst: Gary S. OlsonAnalysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. hb4884/0708