2007 Senate Bill 772 / Public Act 91

Authorize FY 2007-2008 “continuation budget” as contingency

Introduced in the Senate

Sept. 12, 2007

Introduced by Sen. Ron Jelinek (R-21)

To authorize a “continuation” or interim budget for the fiscal year beginning Oct. 1, 2007, equivalent to 25 percent of the current year appropriations for all state departments. The measure was introduced as a contingency in the event that no agreement is in place by that day to close a gap of approximately $1.7 billion between desired spending and expected revenues in the current and upcoming fiscal years. The bill would also appropriate $164.5 million for FY 2006-2007 appropriations to colleges and universities, the disbursement of which was pushed into the following fiscal year as part of the <a href="http://www.michiganvotes.org/2007-SB-436">deal</a> to borrow and postpone disbursements to avoid spending cuts in the Fiscal Year 2006-2007 budget. When the bill was introduced no progress had been made in negotiations between the Democratic House, Republican Senate and Democratic Governor to close the gap between desired spending and expected revenue.

Referred to the Committee on Appropriations

Sept. 17, 2007

Substitute offered

To replace the previous version of the bill with one that only extends spending for one month.

The substitute passed by voice vote

Passed in the Senate 20 to 17 (details)

To authorize a one-month “continuation” or interim budget for the fiscal year beginning Oct. 1, 2007, equivalent to 1/12th of the current year appropriations for all state departments. The measure was introduced as a contingency in the event that no agreement is in place by that day to close a gap of approximately $1.7 billion between desired spending and expected revenues in the current and upcoming fiscal years. In addition to the amount they would get in October under current law the bill also authorizes $164.5 million from FY 2006-2007 appropriations to colleges and universities, the disbursement of which was pushed into the following fiscal year as part of the deal to borrow and postpone disbursements to avoid spending cuts in the Fiscal Year 2006-2007 budget. When the bill was introduced no progress had been made in negotiations between the Democratic House, Republican Senate and Democratic Governor to close the gap between desired spending and expected revenue.

Received in the House

Sept. 17, 2007

Referred to the Committee on Appropriations

Sept. 26, 2007

Motion by Rep. Kevin Elsenheimer (R-105)

That the Committee on Appropriations be discharged from further consideration of Senate Bill No. 772. The motion sets up the "continuation budget" for immediate passage should the sides come to an agreement in the last few days before the end of the fiscal year and a state shutdown if no budget is in place for the next fiscal year.

The motion passed 108 to 1 (details)

Sept. 30, 2007

Substitute offered by Rep. Steve Tobocman (D-12)

To replace the previous version of the bill with one that "tie bars" the bill to Houses Bills <a href="http://www.michiganvotes.org/2007-HB-5194">5194</a> and <a href="http://www.michiganvotes.org/2007-HB-5198">5198</a>, tax hikes that total $1.5 billion.

The substitute passed by voice vote

Passed in the House 107 to 0 (details)

To authorize a one-month “continuation” or interim budget for the fiscal year beginning Oct. 1, 2007, equivalent to 1/12th of the current year appropriations for all state departments. Passage of the bill occurred as part of an 11th hour deal to avoid reducing state spending in the 2007-2008 Fiscal Year by imposing $1.5 billion in tax increases, including an income tax hike (<a href="http://www.michiganvotes.org/RollCall.aspx?ID=237062">House Bill 5194</a>) and a new 6 percent tax on many personal and business services (<a href="http://www.michiganvotes.org/RollCall.aspx?ID=237048">House Bill 5198</a>).

Received in the Senate

Sept. 30, 2007

To concur with the House-passed version of the bill, which tie-bars it to a state income tax hike (<a href="http://www.michiganvotes.org/RollCall.aspx?ID=237024">House Bill 5194</a>) and a new 6 percent tax on many personal and business services (<a href="http://www.michiganvotes.org/RollCall.aspx?ID=237025">House Bill 5198</a>), part of an 11th hour deal to avoid spending cuts in the Fiscal Year 2007-2008 budget.

Passed in the Senate 34 to 3 (details)

Signed by Gov. Jennifer Granholm

Oct. 1, 2007