Updates About Legislation

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 recently approved SB 723 with bipartisan support. If successful, this bill would increase the total tax capture cap from $1.6 billion to $3.5 billion, set new limits on individual projects, and update eligibility criteria under the Brownfield Redevelopment Financing Act. It also adds new transparency requirements, including enhanced reporting and a searchable database of approved projects, and directs a portion of additional tax capture toward housing, child care, small business, and placemaking programs. The legislation passed 20–13 and has been transmitted to the House for consideration.

The Senate also passed two related bills aimed at strengthening long-term economic planning in the state. SB 213 and SB 214 would create a Strategic Advisory Board within the Michigan Strategic Fund. The board will take on the task of developing a 10-year statewide economic development plan. Once completed, the plan would be updated annually by the Michigan Economic Development Corporation (MEDC). Both bills similarly passed the Senate 20–13 vote before being received by the House.

Separate legislation to revive a modified version of the Good Jobs for Michigan program has also been proposed by Sen. Sam Singh (D-East Lansing). SB 472 and SB 473 were reported unanimously by the Senate Regulatory Affairs Committee and would restart the incentive program, which expired in 2019, with updated requirements related to job creation and wage standards. The bills include additional eligibility and compliance provisions and are intended to help the state’s economic development strategy. Discussion between the House and the Senate on the bills are expected to continue into 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.