January 14, 2010, Introduced by Rep. Dillon and referred to the Committee on Appropriations.
A joint resolution proposing an amendment to the state
constitution of 1963, by amending section 31 of article IV,
sections 11, 14, 24, 26, 27, 28, 35, 35a, and 40 of article IX, and
section 5 of article XI, to provide for a two-year fiscal period
for the state budget.
Resolved by the Senate and House of Representatives of the
state of Michigan, That the following amendment to the state
constitution of 1963, to provide for a two-year fiscal period for
the state budget, is proposed, agreed to, and submitted to the
people of the state:
ARTICLE IV
Sec. 31. The general appropriation bills for the succeeding
fiscal period covering items set forth in the budget shall be
passed or rejected in either house of the legislature before that
house passes any appropriation bill for items not in the budget
except bills supplementing appropriations for the current fiscal
year's
period's operation. Any bill requiring an appropriation to
carry out its purpose shall be considered an appropriation bill.
One of the general appropriation bills as passed by the legislature
shall contain an itemized statement of estimated revenue by major
source in each operating fund for the ensuing fiscal period, the
total of which shall not be less than the total of all
appropriations made from each fund in the general appropriation
bills as passed. For the fiscal period beginning October 1, 2011
and for every fiscal period thereafter, the fiscal period shall be
a period of two years as provided by law.
ARTICLE IX
Sec. 11. There shall be established a state school aid fund
which shall be used exclusively for aid to school districts, higher
education, and school employees' retirement systems, as provided by
law. Sixty percent of all taxes imposed at a rate of 4% on
retailers on taxable sales at retail of tangible personal property,
100% of the proceeds of the sales and use taxes imposed at the
additional rate of 2% provided for in section 8 of this article,
and other tax revenues provided by law, shall be dedicated to this
fund. Payments from this fund shall be made in full on a scheduled
basis, as provided by law. Beginning in the 1995-96 state fiscal
year
and each year during a state fiscal year period after
1995-96,
the state shall guarantee that the total state and local per pupil
revenue for school operating purposes for each local school
district shall not be less than the 1994-95 total state and local
per pupil revenue for school operating purposes for that local
school district, as adjusted for consolidations, annexations, or
other boundary changes. However, this guarantee does not apply in a
year in which the local school district levies a millage rate for
school district operating purposes less than it levied in 1994.
Sec. 14. To meet obligations incurred pursuant to
appropriations
for any fiscal year, period,
the legislature may by
law authorize the state to issue its full faith and credit notes in
which case it shall pledge undedicated revenues to be received
within
the same fiscal year period
for the repayment thereof. Such
indebtedness
in any fiscal year period shall not exceed 15 percent
of undedicated revenues received by the state during the preceding
fiscal
year period and such debts shall be repaid at the time the
revenues so pledged are received, but not later than the end of the
same
fiscal year.period.
Sec. 24. The accrued financial benefits of each pension plan
and retirement system of the state and its political subdivisions
shall be a contractual obligation thereof which shall not be
diminished or impaired thereby.
Financial benefits arising on account of service rendered in
each
fiscal year period shall be funded during that year period and
such funding shall not be used for financing unfunded accrued
liabilities.
Sec. 26. There is hereby established a limit on the total
amount of taxes which may be imposed by the legislature in any
fiscal
year in a fiscal period on the
taxpayers of this state. This
limit shall not be changed without approval of the majority of the
qualified electors voting thereon, as provided for in Article 12 of
the Constitution. Effective with fiscal year 1979-1980, and for
each
fiscal year in a fiscal
period thereafter, the legislature
shall not impose taxes of any kind which, together with all other
revenues of the state, federal aid excluded, exceed the revenue
limit established in this section. The revenue limit shall be equal
to the product of the ratio of Total State Revenues in fiscal year
1978-79 divided by the Personal Income of Michigan in calendar year
1977 multiplied by the Personal Income of Michigan in either the
prior calendar year or the average of Personal Income of Michigan
in the previous three calendar years, whichever is greater.
For
any fiscal year in a
fiscal period in the event that Total
State Revenues exceed the revenue limit established in this section
by 1% or more, the excess revenues shall be refunded pro rata based
on the liability reported on the Michigan income tax and single
business tax (or its successor tax or taxes) annual returns filed
following
the close of such fiscal year period. If the excess is
less than 1%, this excess may be transferred to the State Budget
Stabilization Fund.
The revenue limitation established in this section shall not
apply to taxes imposed for the payment of principal and interest on
bonds, approved by the voters and authorized under Section 15 of
this Article, and loans to school districts authorized under
Section 16 of this Article.
If responsibility for funding a program or programs is
transferred from one level of government to another, as a
consequence of constitutional amendment, the state revenue and
spending limits may be adjusted to accommodate such change,
provided that the total revenue authorized for collection by both
state and local governments does not exceed that amount which would
have been authorized without such change.
Sec. 27. The revenue limit of Section 26 of this Article may
be exceeded only if all of the following conditions are met: (1)
The governor requests the legislature to declare an emergency; (2)
the request is specific as to the nature of the emergency, the
dollar amount of the emergency, and the method by which the
emergency will be funded; and (3) the legislature thereafter
declares an emergency in accordance with the specific of the
governor's request by a two-thirds vote of the members elected to
and serving in each house. The emergency must be declared in
accordance with this section prior to incurring any of the expenses
which constitute the emergency request. The revenue limit may be
exceeded
only during the fiscal year period
for which the emergency
is declared. In no event shall any part of the amount representing
a refund under Section 26 of this Article be the subject of an
emergency request.
Sec. 28. No expenses of state government shall be incurred in
any
fiscal year in a fiscal
period which exceed the sum of the
revenue limit established in Sections 26 and 27 of this Article
plus federal aid and any surplus from a previous fiscal
year.period.
Sec. 35. There is hereby established the Michigan natural
resources trust fund. The trust fund shall consist 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 lands, except such revenues
accruing under leases of state owned lands acquired with money from
state or federal game and fish protection funds or revenues
accruing from lands purchased with such revenues. The trust fund
may receive appropriations, money, or other things of value. The
assets of the trust fund shall be invested as provided by law.
Until the trust fund reaches an accumulated principal of
$500,000,000.00, $10,000,000.00 of the revenues from bonuses,
rentals, delayed rentals, and royalties described in this section
otherwise dedicated to the trust fund that are received by the
state
each state fiscal year in
a fiscal period shall be deposited
into the Michigan state parks endowment fund. However, until the
trust fund reaches an accumulated principal of $500,000,000.00, in
any
state fiscal year, period,
not more than 50 percent of the
total revenues from bonuses, rentals, delayed rentals, and
royalties described in this section otherwise dedicated to the
trust
fund that are received by the state each state fiscal year
period shall be deposited into the Michigan state parks endowment
fund.
The
amount accumulated in the trust fund in any state fiscal
year in a fiscal period shall not exceed $500,000,000.00, exclusive
of interest and earnings and amounts authorized for expenditure
pursuant to this section. When the accumulated principal of the
trust fund reaches $500,000,000.00, all revenue from bonuses,
rentals, delayed rentals, and royalties described in this section
that would be received by the trust fund but for this limitation
shall be deposited into the Michigan state parks endowment fund
until the Michigan state parks endowment fund reaches an
accumulated principal of $800,000,000.00. When the Michigan state
parks endowment fund reaches an accumulated principal of
$800,000,000.00, all revenues from bonuses, rentals, delayed
rentals, and royalties described in this section shall be
distributed as provided by law.
The interest and earnings of the trust fund shall be expended
for the acquisition of land or rights in land for recreational uses
or protection of the land because of its environmental importance
or its scenic beauty, for the development of public recreation
facilities, and for the administration of the trust fund, which may
include payments in lieu of taxes on state owned land purchased
through the trust fund. The trust fund may provide grants to units
of local government or public authorities which shall be used for
the purposes of this section. The legislature shall provide that a
portion of the cost of a project funded by such grants be provided
by the local unit of government or public authority.
Until the trust fund reaches an accumulated principal of
$500,000,000.00, the legislature may provide, in addition to the
expenditure of interest and earnings authorized by this section,
that a portion, not to exceed 33-1/3 percent, of the revenues from
bonuses, rentals, delayed rentals, and royalties described in this
section
received by the trust fund during each state fiscal year
period
may be expended during subsequent state
fiscal years periods
for the purposes of this section.
Not less than 25 percent of the total amounts made available
for
expenditure from the trust fund from any state fiscal year
period shall be expended for acquisition of land and rights in land
and not more than 25 percent of the total amounts made available
for
expenditure from the trust fund from any state fiscal year
period shall be expended for development of public recreation
facilities.
The legislature shall provide by law for the establishment of
a trust fund board within the department of natural resources. The
trust fund board shall recommend the projects to be funded. The
board shall submit its recommendations to the governor who shall
submit the board's recommendations to the legislature in an
appropriations bill.
The legislature shall provide by law for the implementation of
this section.
Sec. 35a. There is hereby established the Michigan state parks
endowment fund. The endowment fund shall consist of revenues as
provided in section 35 of this article, and as provided by law. The
endowment fund may also receive private contributions of money or
other things of value. All money in the Genevieve Gillette state
parks endowment fund shall be transferred to the endowment fund.
The assets of the endowment fund shall be invested as provided by
law.
The accumulated principal of the endowment fund shall not
exceed $800,000,000.00, which amount shall be annually adjusted
pursuant to the rate of inflation beginning when the endowment fund
reaches $800,000,000.00. This annually adjusted figure is the
accumulated principal limit of the endowment fund.
Money available for expenditure from the endowment fund as
provided in this section shall be expended for operations,
maintenance, and capital improvements at Michigan state parks and
for the acquisition of land or rights in land for Michigan state
parks.
Money in the endowment fund shall be expended as follows:
(1) Until the endowment fund reaches an accumulated principal
of
$800,000,000.00, each state fiscal year period the legislature
may appropriate not more than 50 percent of the money received
under section 35 of this article plus interest and earnings and any
private contributions or other revenue to the endowment fund.
(2) Once the accumulated principal in the endowment fund
reaches $800,000,000.00, only the interest and earnings of the
endowment fund in excess of the amount necessary to maintain the
endowment fund's accumulated principal limit may be made available
for expenditure.
Unexpended appropriations of the endowment fund from any state
fiscal
year period as authorized by this section may be carried
forward or may be appropriated as determined by the legislature for
purposes of this section.
The legislature shall provide by law for implementation of
this section.
Sec. 40. The Michigan conservation and recreation legacy fund
is established. The state treasurer shall direct the investment of
the legacy fund. The state treasurer shall establish within the
legacy fund restricted accounts as authorized by this section and
may establish additional subaccounts as authorized by law. The
state treasurer may receive gifts, grants, bequests, or assets from
any source for deposit into a particular account or subaccount. The
assets of the legacy fund shall be invested as provided by law.
Interest and earnings accruing from each account or subaccount
shall be credited to that account or subaccount.
The forest recreation account is established as an account
within the legacy fund. The forest recreation account shall consist
of revenue derived from concessions, leases, contracts, and fees
from recreational activities on state forestlands and other
revenues as authorized by law. Money in the forest recreation
account shall be expended only for the following:
(a) The development, improvement, operation, promotion, and
maintenance of forest recreation activities.
(b) Grants to state colleges and universities to implement
programs funded by the forest recreation account.
(c) The administration of the forest recreation account.
The game and fish protection account is established as an
account within the legacy fund. The game and fish protection
account shall consist of revenue derived from hunting and fishing
licenses, passbooks, permits, fees, concessions, leases, contracts,
and activities; damages paid for the illegal taking of game and
fish; revenue derived from fees, licenses, and permits related to
game, game areas, and game fish; and other revenues as authorized
by law. Money in the game and fish protection account shall be
expended only for the following:
(a) The development, improvement, operation, promotion, and
maintenance of wildlife and fisheries programs and facilities.
(b) The acquisition of land and rights in land that support
wildlife and fisheries programs.
(c) Research to support wildlife and fisheries programs.
(d) The enforcement and administration of the wildlife and
fisheries laws of the state, including the necessary equipment and
apparatus incident to the operation and enforcement of wildlife and
fisheries laws.
(e) The protection, propagation, distribution, and control of
wildlife and fish.
(f) Grants to state colleges and universities to implement
programs funded by the game and fish protection account.
(g) The administration of the game and fish protection
account, which may include payments in lieu of taxes on state owned
land that has been or will be purchased through the game and fish
protection fund or account.
The off-road vehicle account is established as an account
within the legacy fund. The off-road vehicle account shall consist
of revenue derived from fees imposed upon the use or registration
of off-road vehicles and other revenues as authorized by law. Money
in the off-road vehicle account shall be expended only for the
following:
(a) Signage for and the improvement, maintenance, and
construction of off-road vehicle trails, routes, or areas.
(b) The administration and enforcement of state regulations
related to off-road vehicles.
(c) The leasing of land for use by off-road vehicles.
(d) The acquisition of easements, permits, or other agreements
for the use of land for off-road vehicle trails, routes, or areas.
(e) The restoration of any of the natural resources of the
state on public land that are damaged due to off-road vehicle use.
(f) Safety education programs related to the operation of off-
road vehicles.
(g) Other uses as provided by law as long as the uses are
consistent with the development, improvement, operation, promotion,
and maintenance of the state’s off-road vehicle programs.
(h) Grants to state colleges and universities to implement
programs funded by the off-road vehicle account.
(i) The administration of the off-road vehicle account.
The recreation improvement account is established as an
account within the legacy fund. The recreation improvement account
shall consist of all tax revenue derived from the sale of two
percent of the gasoline sold in this state for consumption in
internal combustion engines and other revenues as authorized by
law. Money in the recreation improvement account shall be
distributed as follows:
(a) Eighty percent of the money shall be annually transferred
to the waterways account to be used for the purposes of that
account.
(b) Fourteen percent of the money shall be annually
transferred to the snowmobile account to be used for the purposes
of that account.
(c) The remainder of the money that is not transferred under
this section shall be used, upon appropriation, for recreation
projects, including grants to state colleges and universities to
implement recreation projects, and for the administration of the
recreation improvement account. Of the amount that is credited to
recreational
projects in a fiscal year, period,
not less than
twenty-five percent of any funds designated for projects intended
for off-road vehicles shall be expended on projects to repair
damages as a result of pollution, impairment, or destruction of
air, water, or other natural resources, or the public trust, in
air, water, or other natural resources, as a result of the use of
off-road vehicles.
The snowmobile account is established as an account within the
legacy fund. The snowmobile account shall consist of revenue
derived from fees imposed for the registration or use of
snowmobiles; revenue derived from the use of snowmobile trails;
transfers from the recreation improvement account; and other
revenues as authorized by law. Money in the snowmobile account
shall be expended only for the following:
(a) Planning, construction, maintenance, and acquisition of
trails and areas for the use of snowmobiles.
(b) Providing access to trails and areas for the use of
snowmobiles.
(c) Providing basic snowmobile facilities.
(d) The administration and enforcement of state regulations
related to snowmobiles.
(e) Safety education programs related to the operation of
snowmobiles.
(f) Other uses as provided by law as long as the uses are
consistent with the development, improvement, operation, promotion,
and maintenance of the state’s snowmobile programs.
(g) Grants to state colleges and universities to implement
programs funded by the snowmobile account.
(h) The administration of the snowmobile account, which may
include payments in lieu of taxes on state owned land that has been
or will be purchased through the recreational snowmobile trail
improvement fund or snowmobile account.
The state park improvement account is established as an
account within the legacy fund. The state park improvement account
shall consist of revenue derived from concessions, leases,
contracts, fees, and permits for activities in state parks and
recreation areas; damages paid to the state for illegal activities
in state parks and recreation areas; and other revenues as
authorized by law. Money in the state park improvement account
shall be expended only for the following:
(a) The development, improvement, operation, promotion, and
maintenance of state parks and recreation areas.
(b) Grants to state colleges and universities to implement
programs funded by the state park improvement account.
(c) The administration of the state park improvement account.
The waterways account is established as an account within the
legacy fund. The waterways account shall consist of revenue derived
from watercraft registration fees assessed on the ownership or
operation of watercraft in the state; revenue derived from fees
charged for the moorage of watercraft at state-operated mooring
facilities; revenue derived from fees charged for the use of state-
operated public access sites; transfers from the recreation
improvement account; all tax revenue derived from the sale of
diesel fuel in this state that is used to generate power for the
operation or propulsion of vessels on the waterways of the state;
and other revenues as authorized by law. Money in the waterways
account shall be expended only for the following:
(a) The construction, operation, and maintenance of
recreational boating facilities that provide public access to
waterways or moorage of watercraft.
(b) The acquisition of property for the purpose of paragraph
(a).
(c) Grants to local units of government and state colleges and
universities for the provision of public access or moorage of
watercraft and law enforcement or boating education to recreational
watercraft operators.
(d) The acquisition and development of harbors and public
access sites.
(e) The enforcement of laws related to the operation of
watercraft and education related to the operation of watercraft.
Not less than forty-nine percent of revenues from watercraft
registration fees received by the waterways account shall be used
for the purposes of this subdivision.
(f) The administration of programs funded by the waterways
account.
(g) Other uses as provided by law as long as the uses are
consistent with the development, improvement, operation, promotion,
and maintenance of the state’s waterways programs.
(h) The administration of the waterways account, which may
include payments in lieu of taxes on state owned land that has been
or will be purchased through the Michigan state waterways fund or
waterways account.
The legislature shall provide by law for the implementation of
this section.
ARTICLE XI
Sec. 5. The classified state civil service shall consist of
all positions in the state service except those filled by popular
election, heads of principal departments, members of boards and
commissions, the principal executive officer of boards and
commissions heading principal departments, employees of courts of
record, employees of the legislature, employees of the state
institutions of higher education, all persons in the armed forces
of the state, eight exempt positions in the office of the governor,
and within each principal department, when requested by the
department head, two other exempt positions, one of which shall be
policy-making. The civil service commission may exempt three
additional positions of a policy-making nature within each
principal department.
The civil service commission shall be non-salaried and shall
consist of four persons, not more than two of whom shall be members
of the same political party, appointed by the governor for terms of
eight years, no two of which shall expire in the same year.
The administration of the commission's powers shall be vested
in a state personnel director who shall be a member of the
classified service and who shall be responsible to and selected by
the commission after open competitive examination.
The commission shall classify all positions in the classified
service according to their respective duties and responsibilities,
fix rates of compensation for all classes of positions, approve or
disapprove disbursements for all personal services, determine by
competitive examination and performance exclusively on the basis of
merit, efficiency and fitness the qualifications of all candidates
for positions in the classified service, make rules and regulations
covering all personnel transactions, and regulate all conditions of
employment in the classified service.
State Police Troopers and Sergeants shall, through their
elected representative designated by 50% of such troopers and
sergeants, have the right to bargain collectively with their
employer concerning conditions of their employment, compensation,
hours, working conditions, retirement, pensions, and other aspects
of employment except promotions which will be determined by
competitive examination and performance on the basis of merit,
efficiency and fitness; and they shall have the right 30 days after
commencement of such bargaining to submit any unresolved disputes
to binding arbitration for the resolution thereof the same as now
provided by law for Public Police and Fire Departments.
No person shall be appointed to or promoted in the classified
service who has not been certified by the commission as qualified
for such appointment or promotion. No appointments, promotions,
demotions or removals in the classified service shall be made for
religious, racial or partisan considerations.
Increases in rates of compensation authorized by the
commission
may be effective only at the start of a fiscal year in a
fiscal period and shall require prior notice to the governor, who
shall
transmit such increases to the legislature. as part of his
budget.
The legislature may, by a majority
vote of the members
elected to and serving in each house, waive the notice and permit
increases in rates of compensation to be effective at a time other
than
the start of a fiscal year
in a fiscal period. Within 60
calendar days following such transmission, the legislature may, by
a two-thirds vote of the members elected to and serving in each
house, reject or reduce increases in rates of compensation
authorized by the commission. Any reduction ordered by the
legislature shall apply uniformly to all classes of employees
affected by the increases and shall not adjust pay differentials
already established by the civil service commission. The
legislature may not reduce rates of compensation below those in
effect at the time of the transmission of increases authorized by
the commission.
The appointing authorities may create or abolish positions for
reasons of administrative efficiency without the approval of the
commission. Positions shall not be created nor abolished except for
reasons of administrative efficiency. Any employee considering
himself aggrieved by the abolition or creation of a position shall
have a right of appeal to the commission through established
grievance procedures.
The civil service commission shall recommend to the governor
and to the legislature rates of compensation for all appointed
positions within the executive department not a part of the
classified service.
To enable the commission to exercise its powers, the
legislature shall appropriate to the commission for the ensuing
fiscal
year period a sum not less than one percent of the aggregate
payroll
of the classified service for the preceding fiscal year,
period, as certified by the commission. Within six months after the
conclusion
of each fiscal year period
the commission shall return
to the state treasury all moneys unexpended for that fiscal
year.period.
The commission shall furnish reports of expenditures, at least
annually, to the governor and the legislature and shall be subject
to annual audit as provided by law.
No payment for personal services shall be made or authorized
until the provisions of this constitution pertaining to civil
service have been complied with in every particular. Violation of
any of the provisions hereof may be restrained or observance
compelled by injunctive or mandamus proceedings brought by any
citizen of the state.
Resolved further, That the foregoing amendment shall be
submitted to the people of the state at the next general election
in the manner provided by law.