Sec. 395.
(1) Appropriation line items in a budget act financed from federal, state restricted, local, or private funding authorize spending only for the amount of the funds actually earned up to the amount appropriated. When an appropriation line item that is financed from federal, state restricted, local, or private funding sources is earning funds less than the appropriated amount, the department shall reduce the overall level of expenditures from the appropriation line item to reflect the estimated funding shortfall. In an appropriation line item financed by multiple fund sources, any state general fund/general purpose appropriation shall be used only after the federal, state restricted, local, or private funds have been expended.
(2) Except as otherwise provided in this section, spending of state matching money in an appropriation shall be maintained in the proportion appropriated. When federal money is earned in an amount less than appropriated and the matching requirements have not been reduced, spending of any state matching appropriation shall be reduced accordingly.
(3) When federal matching formulas are adjusted to increase the federal share of the costs of a program, spending of any state matching appropriation shall be reduced accordingly. Within 15 days after receipt of a notice of such a change, the state agency shall notify the state budget director. The state budget director shall within 15 days make a recommendation to the senate and house appropriations committees and the fiscal agencies to adjust existing appropriations to implement the change in the federal matching rate.
(4) When federal matching formulas are adjusted to reduce the federal share of the costs of a program, the affected state agency shall notify the department. After receipt of the notice of such a change the state budget director shall take appropriate corrective action. For purposes of this subsection, a transfer to increase the state matching appropriations shall not be permitted under section 393(1).
History: 1984, Act 431, Eff. Mar. 29, 1985 ;-- Am. 1988, Act 504, Imd. Eff. Dec. 29, 1988 ;-- Am. 2007, Act 2, Imd. Eff. Mar. 19, 2007 ;-- Am. 2007, Act 169, Imd. Eff. Dec. 21, 2007 Popular Name: Act 431Popular Name: DMB
Structure Michigan Compiled Laws
Chapter 18 - Department of Management and Budget
Act 431 of 1984 - The Management and Budget Act (18.1101 - 18.1594)
Article 3 - (18.1301...18.1397)
Section 18.1301 - Meanings of Words and Phrases.
Section 18.1302 - Definitions; A.
Section 18.1303 - Definitions; D to P.
Section 18.1304 - Definitions; S.
Section 18.1305 - Definitions; T, U.
Section 18.1331 - Information; Assistance.
Section 18.1341 - Executive State Budget; Evaluations; Review.
Section 18.1342 - Economic Analysis, Revenue Estimating, and Monitoring Activity.
Section 18.1343 - Statistical Studies; Population Estimates and Projections.
Section 18.1345 - State Mandated Programs; Costs; Recommendations.
Section 18.1347 - Hearings; Attendance.
Section 18.1350 - State Spending Paid to Units of Local Government; Refunds or Other Repayments.
Section 18.1350a - Additional Definitions.
Section 18.1350b - Prohibited Taxes; Revenue Limit; Report.
Section 18.1350d - Revenues Required to Be Refunded; Procedures.
Section 18.1352 - Transfer of Funds Based on Annual Growth Rate; Formula.
Section 18.1353 - Repealed. 2018, Act 613, Eff. Mar. 29, 2019.
Section 18.1353a, 18.1353b - Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
Section 18.1353c - Repealed. 2007, Act 145, Imd. Eff. Dec. 1, 2007.
Section 18.1353d - Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
Section 18.1353e, 18.1353f - Repealed. 2007, Act 145, Imd. Eff. Dec. 1, 2007.
Section 18.1354a - Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
Section 18.1356 - Balance in Fund; Rebate of Excess.
Section 18.1357 - Shortfall in State General Fund - General Purpose Revenue.
Section 18.1358 - Emergency Appropriation From Fund; Conditions; Additional Transfer.
Section 18.1360a - Expenditure of Money; Limitation.
Section 18.1361 - Submission of Tax Credit, Deduction, and Expenditure Report.
Section 18.1362, 18.1362a - Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
Section 18.1365 - Appropriation Bills; Passed and Presented on or Before July 1.
Section 18.1366 - Financing and Maintenance of State Agency Subject to Act.
Section 18.1367a - “Conference” and “Principal” Defined.
Section 18.1367b - Revenue Estimating Conference; Principals; Forecasts.
Section 18.1367c - Requests by Conference for Assistance and Data.
Section 18.1367d - Conference Procedures.
Section 18.1367e - Publication of Economic and Revenue Forecasts.
Section 18.1367f - Convening Conference Upon Request of Principal.
Section 18.1367g - Repealed. 1991, Act 72, Imd. Eff. July 11, 1991.
Section 18.1369 - Item or Items Vetoed by Governor; Funding From Other Source.
Section 18.1381 - New or Expanded Programs.
Section 18.1382 - Repealed. 1999, Act 8, Imd. Eff. Mar. 22, 1999.
Section 18.1386 - Monthly Financial Reports; Preparation; Transmittal; Contents.
Section 18.1389 - Withholding of Payment to Municipality; Purpose; Report; “Municipality” Defined.
Section 18.1392 - Reduction of Line Item Appropriations in Subsequent Legislation.
Section 18.1397 - Repealed. 2018, Act 613, Eff. Mar. 29, 2019.