(Source: MIRS.news, Published 08/21/23) Approximately 65% of the $1.3 billion in what the Citizens Research Council (CRC) recognized as sponsored special projects in the Fiscal Year 2024 omnibus budget bill were "eleventh-hour earmarks" appearing only in the final version, the non-profit research association reported.
Previous MIRS research found $3.7 billion in new projects added in conference, and $2.06 billion in "pork" projects.
The CRC examined General Fund-financed earmarks in the omnibus budget bill for local governments, higher education institutions, nonprofits and private businesses, adding a disclaimer that they did not capture "under the radar" earmarks.
The CRC's Aug. 18 report concluded that $881 million of earmarks were added to the final HB 4437 during the conference committee.
Of those last minute earmarks CRC included, $760.58 million were in the Department of Labor and Economic Opportunity (LEO) budget, with $74.7 million in the Department of Transportation (MDOT) budget, $22 million in the General Government budget and $11.79 million in the Department of Environment, Great Lakes, and Energy (EGLE) budget.
There were none in the Department of Education, Department of Health and Human Services (DHHS) or State Police budgets.
The CRC wrote the "significant majority" of last-minute additions could be an indication of the need for more "front end transparency."
Without a public hearing on budget additions in advance of their inclusion, there is "virtually no real vetting," the CRC wrote, "meaning there's no 'good budgeting' evaluation of how the public need being addressed in these proposals stacks up against other public needs."
The new transparency language included in key budgets with high concentrations of last-minute earmarks is a start, the CRC said, by setting up a process for state departments to publish information on projects they administer, including names and locations of recipients, descriptions of public purpose, status of funds and identity of the project sponsor.
"In the big picture, having this language is an improvement over not having this language. Earmarks are not a new thing, and the state has never published a report in the past that clearly identified recipients and sponsors of earmarked funds,” the CRC wrote.
However, despite also adding clawback provisions, the CRC wrote that transparency is happening at the very “back end” of the process, with reports not published until Sept. 30, 2024.
"What would truly improve the process is more 'front-end transparency,'" the CRC report read.
Rep. Donni Steele (R-Lake Orion), a House Appropriations Committee member, said "this new report from the Citizens Research Council is just another reminder of how shady and irresponsible the new budget is.
"We can and must do better for the people of Michigan," Steele said. “We should be prioritizing long-term solutions to fix our roads and bridges, strengthen public safety, achieve excellent schools, reduce debt and cut taxes.”
