February 15, 2011, Introduced by Senator KAHN and referred to the Committee on Appropriations.
A bill to amend 1984 PA 431, entitled
"The management and budget act,"
by amending sections 367b, 371, 384, 386, and 423 (MCL 18.1367b,
18.1371, 18.1384, 18.1386, and 18.1423), section 367b as amended by
2007 PA 183, section 371 as amended by 2007 PA 2, and sections 384
and 386 as amended by 1999 PA 8.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 367b. (1) A revenue estimating conference shall be held
in
the second week of January and in the last third week
in May of
each year, and as otherwise provided in this act.
(2) The principals of the conference shall be the state budget
director or the state treasurer, the director of the senate fiscal
agency, and the director of the house fiscal agency, or their
respective designees.
(3) The conference shall establish an official economic
forecast of major variables of the national and state economies.
The conference shall also establish a forecast of anticipated state
revenues as the conference determines including the following:
(a) State income tax collections.
(b) State sales tax collections.
(c)
Single business tax collections.Prison
population and
correction expenditures.
(d) Michigan business tax collections.
(e) Total general fund/general purpose revenues.
(f) Lottery transfers to the school aid fund.
(g) Total school aid fund revenues.
(h) Annual percentage growth in the basic foundation allowance
provided for in the state school aid act of 1979, 1979 PA 94, MCL
388.1601 to 388.1772, including membership factor.
(i) Compliance with the state revenue limit established by
section 26 of article IX of the state constitution of 1963.
(j) Pay-ins or pay-outs required under the countercyclical
budget and economic stabilization fund.
(k) Medicaid expenditures.
(l) Human service caseloads and expenditures.
(4) The conference's official forecast of economic and revenue
variables shall be determined by consensus among the principals.
(5) The forecasts required by this section shall be for the
fiscal year in which the conference is being held and the ensuing
fiscal year and, to the extent possible, the next 3 ensuing fiscal
year.years.
(6) The official conference forecast shall be based upon the
assumption that the current law and current administrative
procedures will remain in effect for the forecast period.
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 that results
in exceeding an appropriation. The chief executive officer 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. Not later than June 1 of each
year, the director shall submit to the chairpersons of the
appropriations committees and the fiscal agencies a copy of the
spending plan and 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. 384. (1) A state agency which applies for federal
financial assistance shall notify the department and the
chairpersons of the appropriations committees within 10 days after
the application is sent. The notification to apply for federal
financial assistance shall be on a form prescribed by, and contain
information requested by, the department. Within 10 days after the
state agency receives notice that its application for federal
financial assistance is awarded, rejected, revised, or deferred,
the state agency shall provide notice of the award, rejection,
revision, or deferment of the application to the department and to
the chairpersons of the appropriations committees.
(2) Within 30 days after a state agency receives notice that a
federal grant has been awarded to the state for which organizations
or units of local government are eligible to apply, the state
agency administering the federal grant program shall report to the
legislature and the fiscal agencies the availability of the grant
funds and the proposed plan for allocating the grant funds to the
organizations or units of local government. A state agency shall
not commit any federal grant funds before this notification to the
legislature has occurred and a subsequent appropriation of the
funds is made by the legislature.
(3) Before December 1 and June 1 of each year, each principal
department shall report to the appropriations committees, the
fiscal agencies, and the department estimates on the extent to
which federal revenues appropriated have been realized and are
expected for the remainder of the fiscal year. The report shall
detail the estimate by program or grant, and catalog of federal
domestic assistance account.
Sec. 386. (1) The state budget director shall prepare monthly
financial reports.
(2)
Within 45 30 days after the end of each month, the state
budget director shall transmit copies of the monthly financial
report to all the appropriations committee members and the fiscal
agencies.
The monthly financial report due by December 15 1 shall
be the first monthly financial report to include statements
concerning the fiscal year which began on October 1.
(3) Each monthly financial report shall contain the following
information:
(a) A statement of actual monthly and year-to-date revenue
collections for the general fund/general purpose revenues, school
aid fund revenues, and the tax collections dedicated to the
transportation funds; including a comparison with prior year
amounts, statutory estimates, and the most recent estimates from
the executive branch.
(b) A statement of estimated year-end appropriations lapses
and overexpenditures for the state general fund by principal
department.
(c) A statement projecting the ending state general fund and
state school aid fund balances for the fiscal year in progress.
(d) A summary of current economic events relevant to the
Michigan economy, and a discussion of any economic forecast or
current knowledge of revenue collections or expenditure patterns
that is the basis for a change in any revenue estimate or
expenditure projection.
(e) A statement of estimated and actual total state revenues
compared to the revenue limit provided for in section 26 of article
IX of the state constitution of 1963.
(f) A statement of the estimated fiscal year-end balance of
state payments to units of local government pursuant to section 30
of article IX of the state constitution of 1963.
(g) Any other information considered necessary by the state
budget director or jointly requested by the chairpersons of the
appropriations committees.
(h) A statement of year-to-date balances for the following
funds:
(i) The countercyclical budget and economic stabilization fund
or its successor.
(ii) The renaissance fund or its successor.
(ii) (iii) The
natural resources trust fund or its successor.
Sec. 423. The director and the chairpersons of the
appropriations committees may examine, or cause to be examined, the
books, accounts, documents, systems, and financial affairs of each
state agency for the purpose of determining compliance with
directives.