Budget & Taxes (Appropriations)

This bill repeals Michigan's 1993 State Education Tax Act, which previously imposed a tax on property owners to fund public schools. The legislation is contingent upon the simultaneous passage of a companion bill (HB 5880) that mandates the state to use general funds to fully replace any revenue lost from eliminating the tax. If enacted, the change would remove the specific tax requirement while ensuring that school funding levels remain unchanged through state appropriation. The law is scheduled to take effect 90 days after it is signed into law.

HB 5487 adjusts funding for the Michigan Technological University's H-STEM Engineering and Health Technology Complex (Phase I). It decreases the state's capital outlay appropriation by $1.5 million, reducing the total project cost to $51.59 million (state share: $29.70 million; university share: $21.89 million; minimal state general fund: $200). The bill directly affects Michigan Technological University and the state budget by modifying existing construction funding authorized in prior legislation. It specifies how the adjusted funds must be spent for this specific campus complex project.

SB 487 restricts the State Administrative Board's authority over state budget funds by prohibiting transfers to the general fund or for purposes not specified by the legislature. It allows the board to move funds within a single department's budget only after notifying legislative appropriations committees and waiting for a set period without committee approval. The bill also explicitly blocks the board from transferring funds from designated programs, such as the strategic outreach reserve fund and critical industry programs. These changes aim to strengthen legislative oversight of state spending while maintaining the board's general supervisory role.