Title 18, DEPARTMENT OF MANAGEMENT AND BUDGET

Sec. 350. (1) If state government assumes the financing and administration of a function, after December 22, 1978, which was previously performed by a unit of local government, the state payments for the function shall be counted as state spending paid to units of local governmen…

Sec. 350a. As used in sections 26 to 28 of article IX of the state constitution of 1963: (a) "Personal income of Michigan" for a calendar year means total annual personal income as officially reported by the United States department of commerce, bureau of economic analysis, or it…

Sec. 350b. (1) Effective with the 1979-80 state fiscal year, and for each state fiscal year thereafter, the legislature shall not impose taxes of any kind which would result in total state revenues exceeding the revenue limit established in subsection (2). (2) The revenue limit s…

Sec. 350c. (1) Expenditures of state government which exceed the sum of the following amounts shall not be incurred in any fiscal year: (i) The revenue limit established in section 350b. (ii) A surplus from a previous year. (iii) Federal aid. (iv) Taxes imposed for the payment of…

Sec. 350d. (1) The procedures enumerated in this section shall be followed when revenues are required to be refunded pursuant to section 26 of article IX of the state constitution of 1963. (2) For any fiscal year in which total state revenues exceed the revenue limit as provided …

Sec. 350e. The department shall annually prepare a report which summarizes in detail the state's compliance with the revenue limit established in section 350b. The report shall be submitted to the auditor general for review and comment not later than May 31 of each year, and shal…

Sec. 351. (1) A countercyclical budget and economic stabilization fund is created to assist in stabilizing revenue and employment during periods of economic recession and high unemployment. (2) As used in this section and sections 352 to 359, "fund" means the countercyclical budg…

Sec. 352. (1) When the annual growth rate is more than 2%, the percentage excess over 2% shall be multiplied by the total state general fund-general purpose revenue for the fiscal year ending in the current calendar year to determine the amount to be transferred to the fund from …

Sec. 354. (1) The executive budget for each fiscal year shall contain an estimate of the required transfer into the fund or the amount of funds recommended to be appropriated out of the fund required under section 352. The executive budget for each fiscal year shall not contain a…

Sec. 355. (1) The transfer into or out of the fund as provided in section 352 for each fiscal year beginning after September 30, 1978, may be adjusted in light of revision in the annual growth rate for the calendar year upon which that transfer was made. If an adjustment is made,…

Sec. 356. The balance in the fund shall not exceed 15% of the combined level of general fund-general purpose and school aid fund revenues. If the balance in the fund at the end of a fiscal year exceeds 15% of the actual state general fund-general purpose and school aid fund reven…

Sec. 357. In each fiscal year in which a transfer to the fund takes place, if the state general fund-general purpose revenue falls short of the level upon which a balanced state general fund budget was adopted for that year and the shortfall cannot be attributed to a statutory ch…

Sec. 358. (1) Except as otherwise provided in this section, the legislature may make an emergency appropriation from the fund subject to all of the following conditions: (a) The maximum appropriation from the fund for budget stabilization as provided in section 352(2) has already…

Sec. 359. Amounts in the fund may be combined by the state treasurer with other amounts in the state treasury for purposes of cash management. The earnings from investment of the fund shall accrue to the fund. The fund shall be accounted for separately from other funds of the sta…

Sec. 360. (1) The Michigan infrastructure fund is created within the state treasury. (2) The state treasurer may receive money or other assets from any source for deposit into the Michigan infrastructure fund. The state treasurer shall direct the investment of the Michigan infras…

Sec. 360a. Money in the Michigan infrastructure fund shall be expended only as provided in an appropriation act.

Sec. 361. The tax credit, deduction, and exemption report as provided by 1979 PA 72, MCL 21.271 to 21.296, shall be submitted with the annual budget message by the governor to the legislature pursuant to 1979 PA 72, MCL 21.271 to 21.296.

Sec. 363. (1) Within 30 days after the legislature convenes in regular session, except in a year in which a newly elected governor is inaugurated into office when 60 days shall be allowed, the governor shall transmit to each member of the legislature and the fiscal agencies the b…

Sec. 364. (1) Except as otherwise provided in this section, a state department or agency shall not expend money that was appropriated as a legislatively directed spending item. A legislator must submit a request for a legislatively directed spending item in accordance with this s…

Sec. 364a. (1) The public disclosure form for a legislatively directed spending item required under section 364 must be submitted in the following form to be considered: Legislatively Directed Spending Item Information 1. Sponsoring legislator's full name: 2. Cosponsoring legisla…

Sec. 365. Beginning July 1, 2021, the legislature shall pass and present general appropriation bills for the upcoming fiscal year to the governor on or before July 1.

Sec. 366. Each state agency is subject to this act and shall be financed and maintained by specific appropriations by the legislature from the operating funds of the state, as such funds may be dedicated by law, pursuant to the submission of the state budget.

Sec. 367. (1) Concurrent with transmitting the state budget to the legislature, the governor shall submit to the legislature and the fiscal agencies for the upcoming fiscal year and the following fiscal year executive budget bills containing itemized statements of estimated state…

Sec. 367a. As used in this section and sections 367b to 367f: (a) "Conference" means the revenue estimating conference established by this act. (b) "Principal" means a person designated in section 367b to be a principal of the conference.

Sec. 367b. (1) A revenue estimating conference shall 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 …

Sec. 367c. The conference may request and shall receive from all public officers, departments, agencies, and authorities of the state the assistance and data needed to enable it to fulfill its duties.

Sec. 367d. (1) The procedures of the conference shall be decided by the principals, except that any final action establishing an official forecast shall be taken only with the unanimous decision of all of the principals, and a conference shall complete its work within a period of…

Sec. 367e. The conference shall publish the economic and revenue forecasts established by the conference.

Sec. 367f. Upon the written request of a principal, a conference shall be convened by the chairperson.

Sec. 368. The state budget director shall monitor passage of budget bills and assist the governor in the explanation to the legislature of recommendations contained in the state budget proposal. As it may be necessary, the state budget director shall prepare revisions to recommen…

Sec. 369. A distinct item or items vetoed by the governor that are not subsequently overridden by the legislature shall not be funded from any other source without a new specific appropriation.

Sec. 371. (1) An employee of a state agency shall not make or authorize an expenditure or incur an obligation that results in the agency exceeding the gross appropriation level of an appropriation line item made to that agency by the legislature. The chief executive officer and t…

Sec. 372. (1) Allotments may be adjusted by the state budget director as requested by a department, subject to the considerations in section 371(2). (2) A payment which would exceed an allotment balance may be withheld by order of the state budget director. Payments shall not exc…

Sec. 373. (1) Beginning fiscal year 2013-2014, each reporting unit shall classify each line item in the enacted budget in 1 of the following spending categories: core services, support services, or work projects. Each reporting unit shall prepare a spending plan for each line ite…

Sec. 381. A state agency shall not establish a new program or expand a current program, from any source of funds, above the level approved in the enacted budget. Proposals for new or expanded programs shall be documented as required and submitted by a state agency to the state bu…

Sec. 384. (1) A state agency which applies for federal financial assistance shall notify the department within 10 days after the application is sent. The notification to apply for federal financial assistance shall be on a form prescribed by, and contain information requested by,…

Sec. 385. By October 1, 2022, the department shall assume responsibility for the procurement, development, and maintenance of all information technology services of the department of health and human services. The department of health and human services shall start phasing and tr…

Sec. 386. (1) The state budget director shall prepare monthly financial reports. (2) Within 30 days after the end of each month, the state budget director shall transmit copies of the monthly financial report to all the appropriations committee members and the fiscal agencies. Th…

Sec. 388. State spending to units of local government shall be continually monitored and projected by the state budget director. If projections indicate that state spending to units of local government will not meet the proportion required by law, the state budget director shall …

Sec. 389. (1) The department or the department of treasury may withhold all or part of any payment that a municipality is entitled to receive under a budget act to the extent the withholdings are a component part of a plan, developed and implemented under the revised municipal fi…

Sec. 391. (1) When it appears to the governor, based upon written information received by the governor from the budget director and the department of treasury, that actual revenues for a fiscal period will fall below the revenue estimates on which appropriations for that period w…

Sec. 392. This act shall not be construed to prohibit the legislature from reducing line item appropriations in budget acts in subsequent legislation.

Sec. 393. (1) Administrative transfers of appropriations within any department to adjust for current cost and price variations from the enacted budget items, or to adjust amounts between federal sources of financing for a specific appropriation line item, or to adjust amounts bet…

Sec. 395. (1) Appropriation line items in a budget act financed from federal, state restricted, local, or private funding authorize spending only for the amount of the funds actually earned up to the amount appropriated. When an appropriation line item that is financed from feder…

Sec. 396. (1) From the appropriations contained in a budget act, a state agency shall pay or record expenditures for the following: (a) Court judgments, including court approved consent judgments; all settlements, awards, and claims. (b) Writeoffs of accounts receivable recorded …

Sec. 401. For purposes of this article, the words and phrases defined in sections 402 to 404 have the meanings ascribed to them in those sections.