FY 2016-17 MNRTF APPROPRIATION                                                          S.B. 76 (H-3):

                                                                               SUMMARY OF HOUSE-PASSED BILL

                                                                                                                            

 

 

 

 

 

 

 

Senate Bill 76 (Substitute H-3 as passed by the House)

Sponsor:  Senator Darwin L. Booher

Senate Committee:  Appropriations

House Committee:  Appropriations

 

Date Completed:  6-19-17

 

CONTENT

 

Michigan Natural Resources Trust Fund.  On December 7, 2016, the Michigan Natural Resources Trust Fund (MNRTF) Board adopted FY 2016-17 recommendations for acquisition and development projects pursuant to Article IX, Section 35 of the Michigan Constitution and the Natural Resources and Environmental Protection Act.  The recommendations include a $47.6 million appropriation from the MNRTF for 27 acquisition projects ($27.7 million) and 87 development projects ($19.9 million).  Matching funds of $40.1 million result in total project costs of $87.7 million.  An appropriation bill is necessary to authorize the spending recommended by the MNRTF Board. Senate Bill 76 (H-3) would appropriate funds for the Board's FY 2016-17 recommendations. The attached information provides details on projects recommended, including a description of the project, location, and cost.

 

It should be noted that the House-passed version of the bill does not contain an additional 43 projects totaling $7.7 million that were added by the Joint Capital Outlay subcommittee and subsequently passed by the Senate.

 

The MNRTF was capitalized through deposits of bonuses, rentals, delayed rentals, and royalties collected or reserved by the State under provisions of leases for the extraction of nonrenewable resources from State-owned land, except such revenue accruing under leases of State-owned land acquired with money from the State or Federal Game and Fish Protection Fund.  Pursuant to the Michigan Constitution, annual expenditures consisted of MNRTF interest and earnings, and 33% of MNRTF revenue received by the State during the previous fiscal year, until the corpus of the MNRTF reached $500.0 million.  The MNRTF reached $500.0 million in 2011, thereby limiting subsequent annual expenditures to interest and investment earnings, and funding carried forward from previous years.  

 

The Michigan Constitution provides that not less than 25% of the total amounts made available for expenditure from the Trust Fund from any State fiscal year must be spent for acquisition of land and rights in land and not more than 25% of the total amounts made available for expenditure from the Trust Fund from any State fiscal year must be spent for development of public recreation facilities.

 

 

Boilerplate

 

Sec. 301.  Provides criteria for agreements with local units of government for administration of MNRTF grants.

 

Sec. 302.  Provides for work project status of grants.  Requires funds to be carried forward consistent with Section 248 of the Management and Budget Act.

 


Sec. 303.  Authorizes lapse of funds remaining from Trust Fund projects that have been completed or terminated pursuant to provisions of the Management and Budget Act.

 

FISCAL IMPACT

 

The bill would appropriate $47,610,900 from the MNRTF for 27 acquisition projects and 87 development projects.  Matching funds of $40,136,700 for local projects result in total project costs of $87,747,600.

 

FY 2015-16 Michigan Natural Resources Trust Fund (MNRTF)

Projects

Number of Projects

Trust Fund

Match

Total Cost

Acquisition Projects

 

 

 

 

State owned

6

$7,770,000

$0

$7,770,000

Local Government

21

19,900,800

7,843,100

27,743,900

Subtotal Acquisition Projects

27

$27,670,800

$7,843,100

$35,513,900

 

 

 

 

 

Development Projects

 

 

 

 

State owned

8

$1,986,300

$5,242,100

$7,228,400

Local Government

79

17,953,800

27,051,500

45,005,300

Subtotal Development Projects

87

$19,940,100

$32,293,600

$52,233,700

 

 

 

 

 

TOTAL

114

$47,610,900

$40,136,700

$87,747,600

 

                                                                                        Fiscal Analyst:  Josh Sefton

 

 

 

 

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.