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Michigan's State Budget
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What role does the Legislature play in the budget process?
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Answer:
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State Budget Director on behalf of the Governor presents the budget and accompanying explanations, recommendations, and legislation to the Legislature. This generally takes place in early February during a joint session of the House and Senate Appropriations Committees.
By custom, all the appropriation bills are introduced in both houses and are divided between the houses for consideration. The bills usually receive more detailed hearings in the house of origin. Generally, each appropriations committee chair or the ranking member of the Governor's party introduces all the appropriation bills. Traditionally, only half of the bills are considered in each house initially. Currently, the practice is to alternate the house of origin each year. This practice allows both appropriations committees to work simultaneously on the appropriations bills.
The Appropriations Committees assign the budgets to specific subcommittees. These subcommittees then conduct a series of hearings. The State Budget Office presents an overview of the Governor's proposed budget, followed by briefings from House Fiscal Agency and Senate Fiscal Agency staff. The subcommittees also hold public hearings. Finally, the subcommittee composes recommendations to report to the full Appropriations Committee.
During full House and Senate Committee meetings, state department directors and their staff are expected to provide explanations when their agency's appropriations are considered. A legislative fiscal analyst assigned to that bill is also present. This analyst may prepare a report or series of reports on the bill. The chair of the related subcommittee opens the meeting and asks the legislative analyst to summarize the bill. The committee members are then free to ask questions regarding the bill. The appropriations committee may amend the bill or adopt a substitute version. Following approval, the bill is reported to the floor.
Prior to floor consideration, the Democratic and Republican members will discuss the bill during a caucus meeting. In addition to developing a party position, the caucus provides individual legislators with an opportunity to become better informed regarding policy issues incorporated in the budget.
The legislative procedure for consideration of the appropriation bills is basically the same as for other bills except that appropriation measures receive priority on the legislative calendars. In many instances, members who are going to offer amendments will propose the changes to the appropriations committees before floor debate. Floor consideration varies considerably depending on the particular subject matter, issues, and other factors. There may be minimal debate or it may take a whole day or more for a given bill. Fiscal analysts prepare floor sheets summarizing the appropriation bill, the difference in funding from the prior year, the Governor's recommendation, or the house's recommendation, new, expanded or eliminated programs, and total FTEs (full-time equated positions) authorized.
A conference committee resolves differences between the two houses. The committee consists of six members, three members from the Senate and three members from the House. Traditionally, when differences on any of the appropriation bills necessitate a conference committee, the conferees are usually members of their respective house's appropriations subcommittees. Rule 7 of the Joint Rules of the Senate and the House of Representatives provides:
The conference committee shall not consider any matters other than matters of difference between the two Houses. When the agreement arrived at by the conferees is such that it affects other parts of the bill, the conferees may recommend amendments to conform with the agreement. The conferees may also recommend corrections to any errors in the bill or title.
Conference committees are expected to ensure that the final level of appropriations in the conference reports is equal to the appropriation targets established by legislative leadership. This process helps ensure that the enacted appropriations bills do not exceed the consensus estimate of available revenues.
If the conference committee report is approved by both houses, the bill is enrolled and printed (final copy of a bill in the form as passed by both houses) and presented to the Governor. If the conference committee does not reach a compromise and submits a report that the committee cannot reach an agreement, or if the Legislature does not accept the conference report, a second conference committee may be appointed.
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