State management: funds; money in the disaster and emergency contingency fund; modify the required minimum and maximum amount of. Amends sec. 18 of 1976 PA 390 (MCL 30.418).
Summary
House Bill 4505 amends Michigan’s Emergency Management Act to change the required balance of the state’s disaster and emergency contingency fund. The bill raises the fund’s ceiling from $10 million to $15 million and increases the floor from $2.5 million to $7.5 million, while continuing to require the Legislature to appropriate enough money each year to keep the fund within those limits. It also preserves the rule that unused and unencumbered money in the fund does not lapse to the general fund at the end of the fiscal year, but instead carries forward for future use.
The bill leaves in place the existing framework for how the fund may be used. The director of the state emergency management office may spend money, with appropriation, for overtime, travel, and subsistence costs for state employees responding to disasters or emergencies, and may also use the fund for other mitigation or response needs with the governor’s concurrence. The bill also continues the authority to deposit federal reimbursements or other reimbursements back into the fund, and to use the fund for Michigan’s matching share of federal disaster grants when a presidential disaster declaration is in effect and the governor authorizes the expenditure. The state treasurer would still manage investments for the fund and credit earnings back to it.
Impact
HB4505 would directly amend section 18 of the Emergency Management Act, changing the statutory minimum and maximum balance requirements for the disaster and emergency contingency fund. In practical terms, it would require the state to maintain a larger reserve for emergency response and disaster mitigation, increasing the amount of money available for rapid deployment during emergencies and increasing the baseline appropriation obligation for the Legislature. The bill does not alter who administers the fund or the categories of eligible expenditures, but it does affect state budgeting and the amount of public money reserved for emergency operations.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or partisan division in the available materials. Based on the bill text and caption, the measure appears to be a technical fiscal adjustment intended to strengthen the state’s emergency reserve rather than a controversial policy change. The overall tone of the proposal is administrative and preparedness-focused.
Contention
The main point of potential contention is fiscal: the bill would require a higher minimum balance in the contingency fund, which could mean more money set aside and less immediately available for other state priorities. Supporters would likely view the change as prudent disaster preparedness and a way to ensure adequate response capacity, while critics might question whether the higher floor and ceiling are necessary or whether the state should keep more flexibility in general fund spending. No specific objections, amendments, or opposing arguments are documented in the materials provided.
State management: funds; cap and distribution of funds in the disaster and contingency fund; modify, and create new fund. Amends title & secs. 18 & 19 of 1976 PA 390 (MCL 30.418 & 30.419) & adds sec. 18a.
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