BUDGET PROCESS MODIFICATIONS                                                                S.B. 1051:

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

Senate Bill 1051 (as reported without amendment)

Sponsor:  Senator Dave Hildenbrand

Committee:  Government Operations

CONTENT

The bill would amend the Management and Budget Act to do the following:

-- Require the Governor's proposed budget to be for the upcoming and following fiscal years.

-- Require the Governor to present a strategic plan each fiscal year starting with the upcoming fiscal year and covering the next five fiscal years.

-- Require the Director of the Department of Technology, Management, and Budget (DTMB), within nine months after the end of the fiscal year to publish on the internet a financial report, and prescribe the information that would have to be contained in the report.

MCL 18.1363 et al.                                                           Legislative Analyst:  Jeff Mann

FISCAL IMPACT

The bill would have minimal operational and fiscal implications for the State Budget Office, and no fiscal impact on local units of government. The bill would formalize in statute a process that the Department of Technology, Management, and Budget (DTMB) has been using for its budget presentations since fiscal year 2011-12. According to the DTMB, the provisions related to strategic plans and a popular financial report would require the compilation and publication of information already available and would not result in additional costs.

It is important to note that pursuant to an Attorney General's letter opinion issued on February 9, 2011, the Governor is allowed to propose a two-year budget and the Legislature can enact a two-year budget but the second year would be only an expression of an "intent to appropriate", not binding or legally enforceable.

Date Completed:  9-5-18                                                    Fiscal Analyst:  Bill Bowerman

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.