REDIRECTION OF CERTAIN DRIVERS' LICENSEE
FEE REVENUE FROM TEDF TO STATE GENERAL FUND
House Bills 5072 and 5073
Sponsor: Rep. Lee Gonzales
Committee: Appropriations
Complete to 8-28-08
A SUMMARY OF HOUSE BILLS 5072 AND 5073 AS INTRODUCED 6-10-09
House Bill 5072 would amend Section 11 of 1987 PA 231 (MCL 247.911), an act which created and governs theTransportation Economic Development Fund (TEDF). The TEDF is a state-restricted transportation fund created to help fund highway, road, and street improvements related to either a specific type of economic activity or a specific type of road system. The bill would reduce the amount allocated to the Targeted Industries program ("Category A") for the 2008-09 fiscal year by $12.0 million to reflect in statute the reductions effected through Executive Order 2009-22.
House Bill 5073 would amend Section 819 (MCL 257.819) of the Michigan Vehicle Code (1949 PA 300) to redirect to the state General Fund a portion of drivers' license fee revenue currently dedicated to the TEDF. The total amount to be redirected as shown in the bill is $18 million. This amount represents $12 million related to TEDF reductions made in Executive Order 2009-22. Public Act 346 of 2008 had previously redirected $6 million in driver's license fees from the TEDF to the state General Fund in FY 2008-09. The bill simply reflects the total of $18 million to be redirected to the General Fund in FY 2008-09 ($6 million plus $12 million).
The previous $6.0 million amount for FY 2008-09 represented the amount that the TEDF was reduced for FY 2006-07 through Executive Order 2007-3. In effect, budgetary spending authority was reduced by $6 million in FY 2006-07, but the actual shift of those funds to the state General Fund was not completed until FY 2008-09.
FISCAL IMPACT:
The bills would redirect $12.0 million from the TEDF to the state General Fund (not counting the $6 million that had already been redirected through Public Act 346 of 2008) There would be no impact on total state revenue, simply a shift between a state-restricted fund and the state General Fund.
Transportation Economic Development Fund
Recent Legislative Actions Regarding Driver's License Fee Fund Source
Fiscal Year/ Action |
Appropriation Bill |
Amendment toMichigan Vehicle Code to Transfer to GF/GP |
Amendment to TEDF Act (1987 PA 231) |
FY 2006-07 Reduces Category "A" by $6 million |
Executive Order 2007-3 |
Never enacted – transfer in FY 2008-09 instead. (See below) |
Public Act 168 of 2007 (Senate Bill 794) |
FY 2007-08 Reduces Category "A" by $13 million total |
FY 2007-08 appropriation adjusted to decrease spending authority for Category "A" by $6.5 million, and increase Categories "C" and "D" by $3.25 million each. Done by transfer |
Public Act 346 of 2008 (House Bill 4847)
|
Bill to direct entire reduction from Category "A" Public Act 364 of 2008 (Senate Bill 1485)
|
FY 2008-09 Redirects $6 million to GF/GP |
Not adjusted in original enacted budget because Category "A" was already reduced in FY 2006-07. |
Public Act 346 of 2008 (House Bill 4847) |
No bill needed. |
FY 2008-09 Reduces Category "A" by $12 million |
Executive Order 2009-22 |
|
House Bill 5072 |
FY 2008-09 Redirects $12 million to GF/GP |
House Bill 5073 The bill indicates that $18 million from driver's license fee revenue will be deposited to the state General Fund for FY 2008-09. This is the total of the $12 million related to EO 2009-22, and the $6 million already enacted in 2008 PA 346. This will not result in an additional $6 million beyond what had previously been enacted. |
Fiscal Analyst: William E. Hamilton
■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.