SB-0802, As Passed Senate, May 3, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

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 salaries and fringe benefits.

 

     (ii) Products and services provided by others.

 

     (iii) Direct payments to clients.

 

     (iv) Medical payments on behalf of clients.

 

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

 

     (vi) 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 design a standardized

 

spending plan reporting format and make the reporting form

 

available for use by each reporting unit.

 

     (4) Within 30 days after receiving the spending plans from the

 

reporting units, the director of the state budget office shall

 

review and approve each spending plan or, if changes are requested,

 

return the spending plan to the reporting unit. 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, the legislature intends

 

that appropriations and the executive budget will group line-item

 

appropriations into only 3 appropriation units: core services,

 

support services, and work projects. Each reporting unit shall

 

prepare a spending plan for each line-item category within each

 

appropriation unit.

 

     (6) For the fiscal year 2015-2016 and each subsequent fiscal

 

year, the legislature intends that appropriations and the executive

 

budget will include a schedule of programs for each line item. The

 

schedule of programs shall include suggested spending amounts for

 

each program listed.

 

     (7) 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 to which an

 

appropriation is made.

 

     (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.