FY 2010-11 CAPITAL OUTLAY APPROPRIATION S.B. 140 (S-1): FLOOR SUMMARY
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Senate Bill 140 (Substitute S-1 as reported) (as enrolled)
Sponsor: Senator Darwin L. Booher
Committee: Appropriations

CONTENT
The bill includes the FY 2010-11 appropriation for the Michigan Natural Resources Trust Fund (MNRTF). Article IX, Section 35 of the Michigan Constitution of 1963 established the Michigan Natural Resources Trust Fund. The Trust Fund consists of all bonuses, rentals, delayed rentals, and royalties collected or reserved by the State under provisions of leases for the extraction of nonrenewable resources from State-owned land, except such revenue accruing under leases of State-owned land acquired with money from State or Federal Game and Fish Protection Funds or revenue accruing from land purchased with such revenue.


Until the corpus of the MNRTF reaches $500.0 million, annual expenditures consist of MNRTF interest and earnings and 33?% of MNRTF revenue received by the State during the previous fiscal year. Current projections estimate that the MNRTF will reach $500.0 million in 2011, which will limit future expenditures from the MNTRF to annual interest earnings. Revenue from leases in FY 2009-10 and the use of the stabilization reserve resulted in a substantial increase in funds available for projects in FY 2010-11. The table below lists MNRTF appropriations in previous years.


MICHIGAN NATURAL RESOUCES TRUST FUND APPROPRIATIONS (in millions)
FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10
$32. 2 $39. 4 $36. 1 $34. 5 $48. 5 $35. 7

Sec. 301. Provides criteria for agreements with local units of government for administration of MNRTF grants.


Sec. 302. Provides for work project status of grants. At completion or after three fiscal years, unspent balances lapse to the MNRTF.


Enacting Sec. 1. Repeals Section 876 of Public Act 191 of 2010 (FY 2010-11 General Government appropriation). The boilerplate provided for the Use and Finance Statement process for self-funded projects at community colleges and universities.

FISCAL IMPACT
The bill would appropriate $102.1 million in State Restricted constitutionally dedicated MNRTF revenue for 117 projects pursuant to the December 1, 2010, recommendations of the MNRTF Board of Trustees. Matching revenue of $37.5 million would bring the total expenditures for the projects to $139.6 million. A list of projects including project description, location, and cost is attached.


Date Completed: 2-17-11 Fiscal Analyst: Bill Bowerman

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb140/1112