SB-0184, As Passed House, March 8, 2007
February 7, 2007, Introduced by Senators JELINEK, CROPSEY, HARDIMAN and GARCIA and referred to the Committee on Appropriations.
A bill to amend 1984 PA 431, entitled
"The management and budget act,"
by amending sections 371 and 395 (MCL 18.1371 and 18.1395), section
371 as amended by 1999 PA 8 and section 395 as amended by 1988 PA
504.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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 which that
results in exceeding an appropriation. The chief executive officer
Senate Bill No. 184 as amended March 8, 2007
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. The director shall submit a
report
each quarter to the appropriations committees and the fiscal
agencies
that compares actual expenditures to the allotments per
appropriation
line item made for each department and each state
agency
for that quarter. Not later
than June 1 of each year, the
director shall submit to the chairpersons of the appropriations
committees and the fiscal agencies 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.
395. (1) Appropriations in a budget act from restricted
sources
of financing authorize spending only the amount of
financing
earned, up to the amount appropriated. Appropriation line
items in a budget act financed from federal, state restricted,
local, or private funding authorize spending only for the amount of
the funds actually received up to the amount appropriated. When an
appropriation line item that is financed from federal, state
restricted, local, or private funding sources is receiving funds
less than the appropriated amount, the department shall reduce the
overall level of expenditures from the appropriation line item to
reflect the estimated funding shortfall. In an appropriation line
item financed by multiple fund sources, any state general
fund/general purpose appropriation shall be used only after the
federal, state restricted, local, or private funds have been
expended.
(2) Except as otherwise provided in this section, spending of
state matching money in an appropriation shall be maintained in the
proportion appropriated. When federal money is earned in an amount
less than appropriated and the matching requirements have not been
reduced, spending of any state matching appropriation shall be
reduced accordingly.
(3) When federal matching formulas are adjusted to increase
the federal share of the costs of a program, spending of any state
matching appropriation shall be reduced accordingly. Within 15 days
after receipt of a notice of such a change, the state agency shall
notify
the state budget director. The additional federal funds
available
under these conditions are appropriated for the program
Senate Bill 184 as amended February 13, 2007
intended.
The state budget director
shall <<WITHIN 15 DAYS>> make a
recommendation to the senate and house appropriations committees
and the fiscal agencies to adjust existing appropriations to
implement the change in the federal matching rate.
(4) When federal matching formulas are adjusted to reduce the
federal share of the costs of a program, the affected state agency
shall notify the department. After receipt of the notice of such a
change the state budget director shall take appropriate corrective
action. For purposes of this subsection, a transfer to increase the
state matching appropriations shall not be permitted under section
393(1).
(5)
In an appropriation financed by multiple sources, any
state
general fund-general purpose appropriations shall be used
only
after the restricted funds available have been expended.
(6)
Transfers between operating funds for financing shall be
expended
in the proportion appropriated and unused funds at the end
of
the fiscal year shall lapse to the fund from which appropriated.