Michigan House Bill HB5681

Michigan 2023-2024 Regular Session

• Introduced: 4/25/24
• Refer: 4/25/24

Caption

State finance: budgets; procedures related to transfers of appropriations and work projects; modify. Amends secs. 393 & 451a of 1984 PA 431 (MCL 18.1393 & 18.1451a). TIE BAR WITH: HB 5679'24, HB 5680'24

Impact

The proposed amendments aim to facilitate quicker responses to changing financial circumstances by authorizing the budget director to make adjustments, provided that these do not expand or reduce departmental programs, which require additional legislative oversight. This could potentially enhance fiscal efficiency by allowing the director to act on pressing budgetary needs without delaying processes through lengthy approvals from both legislative chambers.

Summary

House Bill 5681 seeks to amend the 1984 Public Act 431, specifically sections 393 and 451a, which govern the management and budget processes in the state of Michigan. This bill introduces provisions that streamline the approval process for administrative transfers of appropriations within state departments. One of the primary objectives is to provide the state budget director with more flexibility in managing funds, allowing for adjustments in response to price variations, federal financing, or the settlement of court judgments without the need for immediate legislative approval under certain conditions.

Contention

Notably, the bill establishes that administrative transfers should be reported to the appropriations committees, with a stipulation that neither committee can disapprove these transfers within a 30-day notification window. This aspect has raised concerns regarding the potential lack of oversight and control by the legislature over significant budget adjustments. Critics fear that this may lead to a centralization of financial power with the executive branch, which could undermine checks and balances inherent in Michigan's legislative process.