Updates About Appropriations

The Senate’s plan to finish the year with a strong focus on their economic development package was thrown off course last week when Republicans in the House Appropriations Committee disapproved nearly $645 million in previously appropriated work project funding ($351.5 million General Fund). Work projects are requests by the State Budget Office to carry forward funding from the previous fiscal year and allow those dollars to be utilized for the original purpose over a 48-month period. In previous years, work project appropriations generally continued until completion or lapse of funds. This year, however, the House Appropriations Committee unexpectedly disapproved of a number of work projects, allowing the funds to lapse back into the state’s General Fund. The unprecedented move was almost entirely along party lines, with just one committee Republican, Representative Ron Robinson (R-Utica), joining Democrats in voting no. The resulting vote was 16-9 in favor of the decision.

The Senate responded by holding a two-hour committee hearing in the Senate Appropriations Committee, where testimony was heard by affected recipients. Following the hearing, the Senate introduced a substitute into House Bill 4576, adding a $633 million supplemental spending bill that would restore much of the work project funding. The bill passed 23-15, with five Republican Senators joining the Democrats in voting in favor of the supplemental. The five Republicans include Jon Bumstead (North Muskegon), John Damoose (Harbor Springs), Mark Huizenga (Walker), Ed McBroom (Waucedah Township), and Michael Webber (Rochester Hills).

HB 4576 is now available to be voted on by members of the House. If the House does decide to place the bill on its agenda, it will not be until January at the earliest, when the legislature reconvenes for session in the new year.

The Michigan Senate voted unanimously, 35-0, to pass earmark transparency bills SB 596 and HB 4420. The House and Senate equivalent bills would require all legislative earmarks to be submitted at least 45 days prior to being voted on. Earmarks are requested by legislators and are directed to an organization through grant funding in the state budget for a specific project.

House Speaker Matt Hall (R-Richland Township) previously led the charge to set the period at 60 days after the Senate had passed the bill with a 10-day period prior to voting. In addition to the 45-day compromise, SB 596 also specifies that any earmark proposal done in the first year of a two year legislative session can be funded in both fiscal years. Earmarks proposed in the second year would still only apply to the final fiscal year of the budget cycle.

Both bills passed the House with a 101-0 vote before being presented to the governor. On November 18th, both bills were signed by Governor Whitmer with immediate effect.

In response to the initial pause, Democrats in the state House announced a five-bill package to give benefits to Michiganders receiving SNAP. Key bills in the package include HB 5193 (Myers Phillips, D-Detroit) which would create emergency funding to backfill SNAP benefits for two months, HB 5194 (Edwards, D-Eastpointe) allocating $12.5 million to support food pantry programs, and HB 5195 (Coffia, D-Traverse City) to provide $12.5 million to the Food Bank Council of Michigan.

The Michigan Senate also took action by passing $71 million in supplemental funding to backfill some of the cost for SNAP benefits. Specifically, the appropriation allocates $50 million for emergency food assistance, $10 million for the agricultural surplus system, $10 million for food bank grants, and $1 million to expand the Double Up Food Bucks program.

In an all-hands-on-deck approach, Governor Whitmer also announced that the state will be giving $4.5 million to the Food Bank Council of Michigan. This funding will go toward providing food delivery to residents in all 83 counties who have been impacted by the SNAP benefits pause.