The House of Representatives today passed HB 4526, the omnibus budget for all general fund departments except education (which is funded in a seperate bill that funds the School Aid fund). The budget passed with a 62-48 party line vote.
There was significant debate on the bill, with Republicans saying that this budget is as a whole is a necessary reset and is structurally balanced, and that this is needed because old way simply wasn't working. They said that this budget spends money carefully, and the new strings attached to revenue sharing will ensure that local governments will have fiscal discipline and will ensure stability for job creators to create more jobs. Democrats rebutted by saying that the budget has cuts that are too deep and that there is no shared sacrifice in cutting seniors, locals, etc in order to give business big tax breaks. They said that the revenue sharing cuts are devastating to communities.
The budget funds all state departmetns. It retains the provisions regarding revenue sharing, with cuts of $100 million and creation of new conditions to receive the remaining dollars. The budget also retains the Business Attraction and Economic Gardening Fund (replacement dollars for the Brownfield, Historic, and MEGA credits) at $25 million. The League thanks Rep. Sharon Tyler (R-Niles) for sponsoring and passing a League-requested amendment to require at least 85% of that fund for former Brownfield and Historic projects. Finally, the deep cuts to fire protection grants, transportation funding, and transit were included in the bill. See past Legislative Link articles for more details on each of these.
The next step will either be for the budget to be sent to conference committee and be finalized, or will be for the Senate and House versions (which are very different) to be reconciled and the appropriate bill or bills to receive a final vote in both chambers. That is expected to happen before the end of the month.
The League has recommended significant changes in the new revenue sharing plan and in the Brownfield/Historic funding. We have also objected to the fire protection grant, transportation, and transit cuts. And we have opposed the elimination of the Complete Streets language. We are involved with each of these issues, and will keep you up-to-date as the discussions continue and final decisions are made.
Andy Schor is the Assistant Director of State Affairs for the Michigan Municipal League. Contact him at (517) 908-0300 or by email at aschor@mml.org.
fcc27ea8-e518-4a59-83c3-8de29ecd4b44|0|.0
