SB-1051, As Passed Senate, September 5, 2018
June 6, 2018, Introduced by Senator HILDENBRAND and referred to the Committee on Government Operations.
A bill to amend 1984 PA 431, entitled
"The management and budget act,"
by amending sections 363, 367, and 447 (MCL 18.1363, 18.1367, and
18.1447), section 363 as amended by 1999 PA 8, section 367 as
amended by 2016 PA 221, and section 447 as added by 2012 PA 535,
and by adding section 495.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 363. (1) Within 30 days after the legislature convenes in
regular session, except in a year in which a newly elected governor
is inaugurated into office when 60 days shall be allowed, the
governor shall transmit to each member of the legislature and the
fiscal agencies the budget in detail as provided in this act,
accompanied by such explanations and recommendations relative
thereto
to the budget as the governor considers necessary. At the
time the budget is transmitted to the legislature, the director
shall transmit line-item appropriation detail to the fiscal
agencies using a computer software application that is compatible
with the budget tracking computer systems used by the respective
fiscal agencies.
(2) The budget transmitted by the governor to the legislature
shall be for the upcoming fiscal year and the following fiscal
year. At a minimum, the budgets shall consist of all of the
following:
(a) Estimates of anticipated revenues by state funds.
(b) Line-item details of proposed expenditures unrolled to
show specific spending categories.
(c) Estimates of the year-end unrestricted fund balances for
state funds.
(d) Any additional budget detail required by this act.
(3) Each fiscal year, by the deadline established in
subsection (1) for the governor to submit a budget to the
legislature, the governor shall also present a strategic plan for
the state.
(4) The strategic plan shall be published on the state's
website.
(5) The strategic plan shall start with the upcoming fiscal
year and shall cover the next 5 fiscal years. The strategic plan
can be a revised version of a previous strategic plan or a new
strategic plan.
(6) The strategic plan shall include the mission, vision,
goals, strategies, and performance measures for each state
department, including measures of the department's inputs, outputs,
and output measures. The department's balanced scorecard can serve
as the department's output measures.
(7) At the governor's discretion, the strategic plan may
include inputs, outputs, and output measures for state agencies,
bureaus, and divisions within a state department.
Sec. 367. (1) Concurrent with transmitting the state budget to
the legislature, the governor shall submit to the legislature and
the fiscal agencies for the upcoming fiscal year and the following
fiscal year executive budget bills containing itemized statements
of estimated state spending to be paid to local units of
government; annual required employer contributions toward total
unfunded retiree health care and pension legacy costs as determined
by the state's consulting actuary for each department and the
legislative branch and the judicial branch; individual line item
amounts, including the number of FTE positions to be funded by each
individual line item amount, for the proposed expenditures; and any
necessary bills for additional revenue to provide financing for the
proposed expenditures.
(2) One executive budget bill and 1 enacted budget bill shall
contain all of the following:
(a) The estimated revenue for each state operating fund in
sufficient detail to provide for comparison with actual revenue.
(b) Summary totals for each state operating fund to reflect
that recommended expenditures for each fund are within proposed and
estimated resources.
(c) A statement of estimated state spending to be paid to
units of local government, total state spending from state sources
of financing, and the state-local proportion derived from that
data.
Sec. 447. (1) Each fiscal year, by the deadline established in
section 363 for the governor to submit a budget to the legislature,
each
department shall have a strategic mission, vision, goals, plan
for its operations, and a balanced scorecard in place. The
scorecard shall include at least 1 existing metric or establish at
least 1 new metric for each 1-time or ongoing enhancement budget
recommendation. Each metric shall be in 1 of the following
categories:
(a) Customer service.
(b) Financial.
(c) Internal business process.
(d) Learning and growth.
(2) As used in this section:
(a) "Balanced scorecard" means a management tool that allows
managers to lead through monitoring the performance of an
organization on the few but vital set of activities and measures
that drive enterprise success. It focuses not just on financial
dimensions but also other vital areas such as employees, customers,
processes, and any other area crucial to the success of the
organization.
(b) "Customer service metric" means a standard that measures
the value received from the citizen perspective and the scale and
quality of the service.
(c) "Financial metric" means a standard for quantifying the
amount that the strategy, implementation, and execution of an
enhancement budget recommendation is contributing to the bottom
line.
(d) "Internal business process metric" means a standard that
measures how well business processes are structured or organized to
meet citizen service expectations.
(e) "Learning and growth metric" means a standard that
measures how well the people, technology, and climate support the
strategy of the enhancement.
Sec. 495. (1) Within 9 months after the end of the fiscal
year, the director shall publish on the internet a popular
financial report that shall strive to communicate the state's
current financial situation in an easy-to-understand report.
(2) At a minimum, the report will contain information on the
most recent 5 years of data for each of the following:
(a) Total state revenues and expenditures.
(b) Total general fund/general purpose revenues and
expenditures.
(c) Total school aid fund revenues and expenditures.
(d) The unrestricted fund balance for the general fund and
school aid fund.
(e) Total outstanding state debt by major type.
(f) Total unfunded pension and other postemployment benefit
obligations for each of the following retirement systems:
(i) The state employees' retirement act, 1943 PA 240, MCL 38.1
to 38.69.
(ii) The public school employees retirement act of 1979, 1980
PA 300, MCL 38.1301 to 38.1437.
(iii) The judges retirement act of 1992, 1992 PA 234, MCL
38.2101 to 38.2670.
(iv) The state police retirement act of 1986, 1986 PA 182, MCL
38.1601 to 38.1648.
(v) The Michigan legislative retirement system act, 1957 PA
261, MCL 38.1001 to 38.1080.
(g) Total revenues by major source, including taxes and
federal grants.
(h) Total expenditures by major spending category.
(i) The number of state employees by department.
(j) Basic economic information for this state, including per-
capita income, nonfarm payroll employment, and the unemployment
rate.