This week, Representative Ben Frederick (R-Owosso) introduced a resolution requiring the Michigan Legislature to present a balanced budget to the governor by July 1 each year.  The resolution has received bipartisan support, as members of both political parties signed as co-sponsors of the legislation.

His proposal would amend the Michigan Constitution to establish the deadline and create penalties for lawmakers if they fail to meet that date.  If the budget is not completed by the deadline, legislators would forfeit their daily salaries until the governor receives the budget. 

Those speaking in support of the legislation believe the consequence of not getting paid will entice lawmakers to get the budget completed and will help ensure state government doesn’t shut down due to the lack of a fiscal year budget.  Additionally, the bill sponsor drew on his experiences working in local government, “I remember what it was like trying to come up with a city budget when we were guessing about how much state funding we were going to receive,” Frederick said. “By committing to a July 1 deadline for the budget, we can make permanent a best practice while giving the entities that rely on funding from the state certainty in their fiscal planning.”  Currently, in order for state government to continue to run, the upcoming fiscal year budget must be signed by the governor prior to the new fiscal year beginning, which is October 1 every year.  Since Governor Rick Snyder took office, he has worked with the legislature to complete the state budgets in the summer.

If the resolution is approved by two-thirds of both the House and Senate, the measure would be placed on the ballot before Michigan voters.  The proposal was referred to the House Appropriations Committee for consideration.

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