SB-0802, As Passed Senate, May 3, 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 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




     (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




     (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