Michigan House Bill HB5295

Michigan 2025-2026 Regular Session

• Introduced: 11/13/25
• Refer: 11/13/25

Caption

Appropriations: grants and transfers; state administrative board limitations; modify. Amends sec. 3 of 1921 PA 2 (MCL 17.3). TIE BAR WITH: HB 5294'25

Summary

House Bill 5295 would amend the State Administrative Board Act to change how the Michigan State Administrative Board may move money between appropriations. The bill preserves the board’s general supervisory role over state departments and institutions, but it tightens limits on when appropriated funds can be transferred, inter-transferred, or used for purposes other than those designated by the Legislature. It also clarifies that the board cannot move money into the general fund or use funds for unauthorized purposes, and it keeps the existing rule that the board cannot provide unappropriated funds to state entities. A major change in the bill is a new process for inter-transfers within a department or institution when the transfer could otherwise be handled under the management and budget act. In those cases, the state budget director must first seek approval or provide notice to the House and Senate appropriations committees, and the board may proceed only if both committees do not approve the request within a specified time period. The bill also expressly prohibits transfers or inter-transfers involving the Strategic Outreach and Attraction Reserve Fund, the Critical Industry Program, and the Michigan Strategic Site Readiness Program. The bill is tie-barred to HB 5294, meaning it would not take effect unless that companion bill is enacted.

Impact

The bill would amend MCL 17.3, the statute governing the State Administrative Board, by narrowing and formalizing the board’s authority over appropriations transfers. It would add legislative oversight requirements for certain inter-transfers and create explicit statutory protections for several economic development-related funds and programs, limiting executive branch flexibility in reallocating those monies. It would also define “session day” for purposes of the new approval timeline.

Sentiment

No committee transcript or recorded vote information was provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text, the measure appears to reflect a generally cautious approach to executive branch spending authority, with an emphasis on legislative control and procedural checks rather than expansion of administrative discretion.

Contention

The main point of contention is likely to be the balance of power between the Legislature and the executive branch over budget transfers. Supporters would likely favor the added oversight, transparency, and protection of designated funds, while critics may argue that the bill reduces administrative flexibility and could slow routine budget management. The specific carve-outs for the Strategic Outreach and Attraction Reserve Fund, the Critical Industry Program, and the Michigan Strategic Site Readiness Program suggest these economic development funds are especially sensitive and may be a focal point for debate.