Michigan House Bill HB5006

Michigan 2023-2024 Regular Session

• Introduced: 9/14/23
• Refer: 9/14/23
• Report Pass: 9/19/23
• Engrossed: 9/19/23
• Refer: 9/20/23
• Report Pass: 9/26/23
• Enrolled: 9/27/23
• Chaptered: 10/3/23
• Passed: 10/3/23

Caption

State management: funds; funding related to the 21st century jobs trust fund; modify. Amends sec. 7 of 2000 PA 489 (MCL 12.257).

Impact

By modifying the funding structure of the 21st Century Jobs Trust Fund, HB5006 is expected to enhance the financial resources available for job creation programs. As a result, it may facilitate investments that could ultimately lead to improved employment opportunities and economic growth within the state. Furthermore, the law reinforces the notion of a countercyclical budget strategy by requiring an additional $17.5 million to be allocated to the budget stabilization fund, which could help buffer the state against economic downturns.

Summary

House Bill 5006 seeks to amend provisions relating to the 21st Century Jobs Trust Fund within the state of Michigan. The bill primarily focuses on the investment and allocation of certain funds received from tobacco settlement revenues. Specifically, it mandates that an annual sum of $75 million from these revenues be deposited into the Jobs Trust Fund which is established in the Department of Treasury. This funding is aimed at promoting job growth and economic development initiatives in Michigan.

Sentiment

The general sentiment surrounding HB5006 appears to be supportive among lawmakers focusing on economic development, as they recognize the potential for increased funding to stimulate job growth. However, there may be underlying concerns regarding the reliance on tobacco settlement revenues for such funding, reflecting a broader debate on health implications related to tobacco use. The bill was passed with a narrow margin, suggesting that while it has support, there is also significant dissent among stakeholders.

Contention

Notable points of contention included discussions around the sustainability of funding from tobacco settlements and the ethical implications of using such revenues for economic initiatives. Some legislators raised concerns about whether diverting these funds to the jobs trust fund aligns with public health objectives, particularly given the state's ongoing efforts to reduce tobacco use. These discussions highlight the need for a balanced approach that considers both economic benefits and the health of the population.