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Michigan's State Budget
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Once a budget is approved, can it be revised?
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Answer:
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According to the Michigan Constitution, no appropriation is a mandate to spend. The Governor, by Executive Order and with the approval of the appropriations committees, can reduce expenditures whenever it appears that actual revenues for a fiscal period will fall below the revenue estimates on which the appropriations for that period are based. By statute, any recommendation for the reduction of expenditures must be approved or disapproved by both of the Appropriations Committees within ten days after the recommendation is made. A reduction cannot be made without approval from both committees; not later than thirty days after a proposed order is disapproved, the Governor may submit alternative recommendations for expenditure reductions to the committees for their approval or disapproval.
Since 1970, the Governor has issued twenty-seven Executive Orders to reduce expenditures, but on eleven occasions the Executive Orders did not receive approval of the Appropriations Committees. Subsequently, the governor issued other Executive Orders that were approved. The Governor may not reduce expenditures of the legislative or judicial branches or expenditures from funds constitutionally dedicated for specific purposes.
Each department prepares the allotment of appropriations and may request revisions, legislative or administrative transfers, or supplemental appropriations. The State Budget Office must approve revisions to allotments. Transfer of funds other than administrative transfers within a department must be submitted by State Budget Office to the House and Senate Appropriations Committees. Expenditure increases for a new program or for the expansion of an existing program cannot be made until the availability of money has been determined and the program has been approved and appropriated by the Legislature. The Legislature and Governor act on supplemental appropriation bills in a manner similar to original appropriations.
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