SB-0802, As Passed House, December 12, 2012

 

 

 

 

 

 

 

 

 

 

 

HOUSE SUBSTITUTE FOR

 

SENATE BILL NO. 802

 

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1984 PA 431, entitled

 

"The management and budget act,"

 

(MCL 18.1101 to 18.1594) by adding section 373.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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

 

following:

 

     (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

 

section.

 

     (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

 

organization.

 

     (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

 

services.

 

     (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

 

law.