Michigan House Bill HB5389

Michigan 2025-2026 Regular Session

• Introduced: 12/17/25
• Refer: 12/17/25

Caption

State finance: budgets; certain work project appropriations; modify legislative disapproval process of. Amends sec. 451a of 1984 PA 431 (MCL 18.1451a).

Impact

The proposed changes would modify how the state manages and tracks work project appropriations. By instituting a 48-month limit for these appropriations, HB5389 seeks to enhance fiscal accountability and encourage timely project completion. This could lead to more efficient utilization of state resources and reduce the likelihood of funds being tied up indefinitely in uncompleted projects. The bill requires that a completion date and cost be defined for every work project, thus aiming to streamline processes within state budget management.

Summary

House Bill 5389 aims to amend Michigan's Management and Budget Act, specifically addressing work project appropriations. The bill establishes that such appropriations will remain available until the completion of the work or for a period of 48 months following the last day of the fiscal year when the appropriation was issued. If the project's work is not completed within this timeframe, the unspent funds will lapse back into the state fund from which they were appropriated. This provision is designed to ensure that funds are effectively utilized and not left in limbo indefinitely.

Contention

One notable aspect of contention surrounding HB5389 may arise from the legislative disapproval process for directives that lapse existing work project accounts. The bill empowers the director to issue such directives but allows for both chambers of the legislature to disapprove these directives within a specified timeframe. Potential debates may focus on the balance of authority between the executive branch and the legislative body, as well as concerns from various stakeholders about how these changes may affect ongoing or future work projects. Overall, this amendment could evoke differing viewpoints regarding state oversight and management practices.