HOUSE BILL No. 5903

 

November 6, 2014, Introduced by Rep. McMillin and referred to the Committee on Appropriations.

 

     A bill to make, supplement, and adjust appropriations for

 

various state departments and agencies for the fiscal year ending

 

September 30, 2015; to provide for the expenditure of the

 

appropriations; and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

PART 1

 

LINE-ITEM APPROPRIATIONS

 

     Sec. 101. There is appropriated for the various state

 

departments and agencies to supplement appropriations for the

 

fiscal year ending September 30, 2015, from the following funds:

 

APPROPRIATION SUMMARY

 

Full-time equated exempted positions................ 0.0

 

Full-time equated classified positions.............. 0.0


 

GROSS APPROPRIATION.................................... $              0

 

   Interdepartmental grant revenues:

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................                 0

 

ADJUSTED GROSS APPROPRIATION........................... $              0

 

   Federal revenues:

 

Total federal revenues.................................                 0

 

   Special revenue funds:

 

Total local revenues...................................                 0

 

Total private revenues.................................                 0

 

Total other state restricted revenues..................                 0

 

State general fund/general purpose..................... $              0

 

 

 

   Sec. 102.  DEPARTMENT OF TREASURY

 

   (1) APPROPRIATION SUMMARY

 

Full-time equated classified positions.............. 0.0

 

GROSS APPROPRIATION.................................... $              0

 

   Interdepartmental grant revenues:

 

Total interdepartmental grants and intradepartmental

 

   transfers............................................                 0

 

ADJUSTED GROSS APPROPRIATION........................... $              0

 

   Federal revenues:

 

Total federal revenues.................................                 0

 

   Special revenue funds:

 

Total local revenues...................................                 0

 

Total private revenues.................................                 0

 

Total other state restricted revenues..................                 0


 

State general fund/general purpose..................... $              0

 

   (2) REVENUE SHARING

 

County incentive program............................... $    (42,240,000)

 

County incentive program...............................        42,240,000

 

City, village, and township revenue sharing............      (243,040,000)

 

City, village, and township revenue sharing............       243,040,000

 

GROSS APPROPRIATION.................................... $              0

 

   Appropriated from:

 

   Special revenue funds:

 

Sales tax..............................................                 0

 

State general fund/general purpose..................... $              0

 

   (3) ONE-TIME BASIS ONLY APPROPRIATIONS

 

City, village, and township revenue sharing............ $     (5,800,000)

 

City, village, and township revenue sharing............         5,800,000

 

GROSS APPROPRIATION.................................... $              0

 

   Appropriated from:

 

   Special revenue funds:

 

Sales tax..............................................                 0

 

State general fund/general purpose..................... $              0

 

 

 

 

 

PART 2

 

PROVISIONS CONCERNING APPROPRIATIONS

 

GENERAL SECTIONS

 

     Sec. 201. In accordance with the provisions of section 30 of

 

article IX of the state constitution of 1963, total state spending

 

from state resources in this appropriation act for the fiscal year


 

ending September 30, 2015 is $0 and state appropriations paid to

 

local units of government are $0.

 

     Sec. 202. The appropriations made and expenditures authorized

 

under this act and the departments, commissions, boards, offices,

 

and programs for which appropriations are made under this act are

 

subject to the management and budget act, 1984 PA 431, MCL 18.1101

 

to 18.1594.

 

 

 

DEPARTMENT OF TREASURY

 

     Sec. 301. (1) The funds appropriated in part 1 for city,

 

village, and township revenue sharing are for grants to cities,

 

villages, and townships such that, subject to fulfilling the

 

requirements under subsection (3), each city, village, or township

 

that received a payment under section 950(2) of 2009 PA 128 greater

 

than $4,500.00 is eligible to receive a payment equal to 78.51044%

 

of its total payment received under section 950(2) of 2009 PA 128

 

or for each city, village, or township with a population in excess

 

of 7,500, notwithstanding whether it received a payment greater

 

than $4,500.00 under section 950(2) of 2009 PA 128, a payment equal

 

to the population of the city, village, or township multiplied by

 

$2.64659, whichever is greater, rounded to the nearest dollar.

 

Payments under this section to cities, villages, or townships that

 

did not receive a payment under section 950(2) of 2009 PA 128

 

greater than $4,500.00 are 1-time payments for which eligibility is

 

based on a presumed level of local services provided. For purposes

 

of this subsection, any city, village, or township that completely

 

merges with another city, village, or township will be treated as a


 

single entity, such that when determining the payment received

 

under section 950(2) of 2009 PA 128 for the combined single entity,

 

the amount each of the merging local units received under section

 

950(2) of 2009 PA 128 is summed. For purposes of this subsection,

 

population is determined in the same manner as under section 3 of

 

the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL

 

141.903. In addition, any city or village that according to the

 

2010 federal decennial census is determined to have population in

 

more than 1 county shall be treated as a single entity when

 

determining the payment received under section 950(2) of 2009 PA

 

128.

 

     (2) The funds appropriated in part 1 for the county incentive

 

program are to be used for grants to counties such that each county

 

is eligible to receive an amount equal to the amount by which the

 

balance in its revenue sharing reserve fund under section 44a of

 

the general property tax act, 1893 PA 206, MCL 211.44a, for the

 

county's most recent fiscal year that ends prior to the January 1

 

of the state's fiscal year is less than the amount calculated under

 

section 44a(13) of the general property tax act, 1893 PA 206, MCL

 

211.44a, for the county fiscal year that begins in the state's

 

fiscal year. The amount calculated under this subsection shall be

 

adjusted as necessary to reflect partial county fiscal years and

 

prorated based on the total amount appropriated for distribution to

 

all eligible counties. Except as otherwise provided under this

 

subsection, payments under this subsection will be distributed to

 

an eligible county subject to the county's fulfilling the

 

requirements under subsection (3).


 

     (3) For purposes of accountability and transparency, each

 

eligible city, village, township, or county shall certify by

 

December 1, or the first day of a payment month, that it has

 

produced a citizen's guide of its most recent local finances,

 

including a recognition of its unfunded liabilities; a performance

 

dashboard; a debt service report containing a detailed listing of

 

its debt service requirements, including, at a minimum, the

 

issuance date, issuance amount, type of debt instrument, a listing

 

of all revenues pledged to finance debt service by debt instrument,

 

and a listing of the annual payment amounts; and a projected budget

 

report, including, at a minimum, the current fiscal year and a

 

projection for the immediately following fiscal year. The projected

 

budget report shall include revenues and expenditures and an

 

explanation of the assumptions used for the projections. The

 

citizen's guide, performance dashboard, debt service report, and

 

projected budget report shall be made available for public viewing

 

in the city, village, township, or county clerk's office or posted

 

on a publicly accessible Internet site. Each city, village,

 

township, and county applying for a payment under this subsection

 

shall submit a copy of the citizen's guide, a copy of the

 

performance dashboard, a copy of the debt service report, and a

 

copy of the projected budget report to the department of treasury.

 

The department of treasury shall develop detailed guidance for a

 

city, village, township, or county to follow to meet the

 

requirements of this subsection. The detailed guidance shall be

 

posted on the department of treasury website and distributed to

 

cities, villages, townships, and counties by October 1.


 

     (4) City, village, and township revenue sharing payments and

 

county incentive program payments are subject to the following

 

conditions:

 

     (a) The city, village, township, or county shall certify to

 

the department that it has met the required criteria for subsection

 

(3) and submitted the required citizen's guide, performance

 

dashboard, debt service report, and projected budget report as

 

required by subsection (3). A department of treasury review of the

 

citizen's guide, dashboard, or reports is not required in order for

 

a city, village, township, or county to receive a payment under

 

subsection (1) or (2). The department shall develop a certification

 

process and method for cities, villages, townships, and counties to

 

follow.

 

     (b) Subject to subdivisions (c), (d), and (e), if a city,

 

village, township, or county meets the requirements of subsection

 

(3), the city, village, township, or county shall receive its full

 

potential payment under this section.

 

     (c) Cities, villages, and townships eligible to receive a

 

payment under subsection (1) shall receive 1/6 of their eligible

 

payment on the last business day of October, December, February,

 

April, June, and August. After the specified due date for

 

subsection (3), payments shall be made to a city, village, or

 

township only if that city, village, or township has complied with

 

subdivision (a).

 

     (d) After the specified due date for subsection (3), payments

 

shall be made to a county only if that county has complied with

 

subdivision (a).


 

     (e) If a county does not provide the required certification or

 

fails to submit the required citizen's guide, performance

 

dashboard, debt service report, and projected budget report by the

 

first day of a payment month, the county shall forfeit the payment

 

in that payment month.

 

     (f) Any city, village, township, or county that falsifies

 

certification documents shall forfeit any future city, village, and

 

township revenue sharing payments or county incentive program

 

payments and shall repay to this state all payments it has received

 

under this section.

 

     (g) City, village, and township revenue sharing payments and

 

county incentive program payments under this section shall be

 

distributed on the last business day of October, December,

 

February, April, June, and August.

 

     (h) Payments distributed under this section may be withheld

 

pursuant to sections 17a and 21 of the Glenn Steil state revenue

 

sharing act of 1971, 1971 PA 140, MCL 141.917a and 141.921.

 

     (5) The unexpended funds appropriated in part 1 for city,

 

village, and township revenue sharing and the county incentive

 

program shall be available for expenditure under the program for

 

financially distressed cities, villages, or townships after the

 

approval of transfers by the legislature pursuant to section 393(2)

 

of the management and budget act, 1984 PA 431, MCL 18.1393.

 

     (6) If a city, village, township, or county fails to report to

 

the state police as required under sections 2 and 3 of the uniform

 

forfeiture reporting act, then the department of treasury shall

 

reduce the amount described in this section for that city, village,


 

township, or county by 1/12 for each month that the city, village,

 

township, or county fails to report as provided in this subsection.

 

 

 

REPEALER

 

     Sec. 401. Section 952 of article VIII of 2014 PA 252 is

 

repealed.

 

     Enacting section 1. This act does not take effect unless House

 

Bill No. 5250 of the 97th Legislature is enacted into law.