SB-0802, As Passed Senate, December 13, 2012




























     A bill to amend 1984 PA 431, entitled


"The management and budget act,"


(MCL 18.1101 to 18.1594) by adding section 373.




     Sec. 373. (1) Beginning fiscal year 2013-2014, each reporting


unit shall classify each line item in the enacted budget in 1 of


the following spending categories: core services, support services,


or work projects. Each reporting unit shall prepare a spending plan


for each line item in the most recently enacted budget.


     (2) A spending plan under this section shall do all of the




     (a) Summarize the line items by appropriation unit.


     (b) Not exceed the gross appropriation for the line item in


the enacted budget. A spending plan may propose a lesser amount if


the federal or state revenues are anticipated to be less than the


amount appropriated.


     (c) Identify the budget requirements for each core service,


support service, and work project to, at a minimum, the following


expense categories:


     (i) State employee wages.


     (ii) State employee benefits including insurances, retirement,


and other postemployment benefits.


     (iii) Materials and equipment.


     (iv) Facilities, including rent, building occupancy charges,


and utilities.


     (v) Direct payments to clients.


     (vi) Medical payments on behalf of clients.


     (vii) Educational expenses on behalf of clients or students.


     (viii) Other contracts.


     (ix) All other costs.


     (d) Identify revenue sources and amounts for each


appropriation unit.


     (3) Each reporting unit shall submit its spending plan to the


state budget office each year within 60 days after enactment of the


budget. The state budget office shall define expense categories,


design a standardized spending plan reporting format, and make the


reporting form available for use by each reporting unit.


     (4) Within 30 days after the state budget office receives the


spending plans from the reporting units, the director of the state


budget office shall either review and approve each spending plan


or, if the director requests changes, return the spending plan to


the reporting unit with a description of requested changes. The


reporting unit shall resubmit a revised spending plan that


addresses the requested changes within 2 weeks. The state budget


director shall submit each approved spending plan to the


appropriate appropriations subcommittees and the senate and house


fiscal agencies in a spreadsheet-compatible format, and post it on


the department's public website.


     (5) For the fiscal year 2014-2015 and each subsequent fiscal


year, the legislature intends that the state budget director and


the senate and house appropriations committees work to identify


suitable adjustments to the annual state budget process to utilize


the information contained in the spending plans produced under this




     (6) As used in this section:


     (a) "Appropriation unit" means a numbered section in a budget


bill that includes a related group of discrete line-item


appropriations representing the structure of an organization or its


major programs, the sum of which line-item appropriations equals


the total appropriation for the appropriation unit and the sum of


the appropriation unit total equals the total appropriation for the




     (b) "Core service" means an activity that provides measurable


value to beneficiaries such as citizens, businesses, and units of


local government.


     (c) "Reporting unit" means a state agency, excluding a public


body corporate and politic, to which an appropriation is made.


However, a public body corporate and politic shall post annually on


its website substantially the same spending and revenue data


described in subsection (2)(c) and (d).


     (d) "Schedule of programs" means a listing of the programs


within a budget that are funded from a specific line item.


     (e) "Support service" means an activity, such as information


technology, accounting, human resources, legal, and other support


functions that are required to support the ongoing delivery of core




     (f) "Work project" means that term as defined in section 404


and that meets the criteria in section 451a(1).


     Enacting section 1. This amendatory act does not take effect


unless Senate Bill No. 21 of the 96th Legislature is enacted into