HB 6075

HOUSE BILL NO. 6075
A bill to amend 1984 PA 431, entitled
"The management and budget act,"
by amending section 367b (MCL 18.1367b), as amended by
2020 PA 157.
the people of the state of michigan enact:
Sec. 367b. (1) A revenue estimating
conference shall must
be held in the second week of January and in the third week in May of
each year, and as otherwise provided in this act.
(2) The principals
of the conference are the state budget director or the state treasurer, the
director of the senate fiscal agency, and the director of the house fiscal
agency, or their respective designees.
(3) The conference
shall establish an official economic forecast of major variables of the
national and state economies. The conference shall also establish a forecast of
anticipated state revenues as the conference determines including the
following:
(a) State income
tax collections.
(b) State sales tax
collections.
(c) Corporate
income tax collections.
(d) Michigan
business tax collections.
(e) Total general
fund/general purpose revenues.
(f) Lottery
transfers to the school aid fund.
(g) Total school
aid fund revenues.
(h) Annual
percentage growth in the target foundation allowance provided for in the state
school aid act of 1979, 1979 PA 94, MCL 388.1601 to 388.1897l. 388.1896. In establishing this forecast in January
and May of 2020, the conference shall take into account the change in
terminology from "basic foundation allowance" to "target
foundation allowance" that occurred in the amendments made to section 20
of the state school aid act of 1979, 1979 PA 94, MCL 388.1620, for the
2019-2020 fiscal year.
(i) Compliance with
the state revenue limit established by section 26 of article IX of the state
constitution of 1963.
(j) Pay-ins or
maximum allowable pay-outs under the countercyclical budget and economic
stabilization fund.
(4) In addition to the annual percentage growth in the target foundation
allowance determined under subsection (3)(h), the conference shall determine an
adequate foundation allowance, an adequate foundation allowance projection, and
a forecast for public school students with additional needs as follows:
(a) The adequate foundation allowance is equal to the sum of $9,590.00 and
the product of $9,590.00 and the percentage change to the Detroit Consumer Price
Index between 2018 and the most recent year the index is available, provided
that it is not greater than the most recent fiscal year.
(b) The adequate foundation allowance projection must be calculated
using the formula described in subdivision (a) for the fiscal year in which the
conference is held and the next 2 ensuing fiscal years. For this calculation,
the revenue estimating conference may use the Detroit Consumer Price Index as
reported by the revenue estimating conference.
(c) The forecast for students with additional needs, including the
number of economically disadvantaged pupils, English learners or bilingual
education students, students with disabilities, and children participating in
great start readiness programs, must be made for the fiscal year in which the
conference is held and the next 2 ensuing fiscal years.
(5) (4) The
conference shall determine its official forecast of economic and revenue
variables by consensus among the principals.
(6) (5) The
conference shall make forecasts under this section for the fiscal year in which
the conference is being held and the next 2 ensuing fiscal years. The
conference shall also forecast general fund/general purpose revenue trend line
projections and school aid fund revenue trend line projections for the next 2
ensuing fiscal years.
(7) (6) The
May revenue estimating conference shall establish expenditure forecasts for
Medicaid expenditures and for human services caseloads and expenditures for the
fiscal year in which the conference is being held and the next 2 ensuing fiscal
years.
(8) (7) The
conference shall make official conference forecasts of revenues and
expenditures based upon on the assumption that the current law and current
administrative procedures will remain in effect for the forecast period.
(9) As used in this section:
(a) "Detroit Consumer Price Index" means the Consumer Price Index
for all urban consumers in the Detroit-Warren-Dearborn area as reported by the
United States Bureau of Labor Statistics.
(b) "Great start readiness program" means a program described
in section 32d of the state school aid act of 1979, 1979 PA 94, MCL 388.1632d.