Michigan House approves earmark reforms
A resolution aimed at reforming the state budget process passed through the Michigan House on Wednesday.
Sponsored by state Rep. Ann Bollin, R-Brighton Township, the new chair of the House Appropriations Committee, House Resolution 14 lays out new rules she says will “ensure transparency, accountability, and public benefit in all legislatively directed spending initiatives,” otherwise known as earmarks.
“Taxpayers deserve to know exactly where their money is going, why it’s being spent, and how it benefits the public,” said Bollin. “Under our new process, every dollar in these initiatives will be properly vetted and held to the highest standards of transparency.”
According to a release from Bollin’s office, the new rules include:
— A prohibition on earmarks for for-profit businesses. Projects will be limited to public bodies and eligible nonprofits.
— Greater accountability for sponsors. Each funding request must include detailed information, including the sponsor and co-sponsors, the intended recipient’s name and location, the requested amount, the project’s purpose, an explanation of public benefit, project timeline, and other key details of the project.
— Stricter nonprofit eligibility. Organizations must be established in Michigan for at least 36 months and maintain a physical office in the state for at least 12 months.
— Conflict-of-interest protections. Sponsors must certify they have no conflicts of interest with the recipient. Family members and staff of the sponsor should not serve on the nonprofit’s board or be employed by the organization.
— Transparency reforms. Funding requests must be submitted to the House Business Office at least 14 days before consideration and made publicly available online by May 1 for 2025 and April 1 in future years.
Earmarks have long been a part of the budget process, regardless of which party has controlled the Legislature and governor’s mansion.
They have been a key target of Republican lawmakers since revelations last year about misspending of a $20 million grant provided through the Michigan Economic Development Corp. to Fay Beydoun to operate a business accelerator organization. Beydoun, who had previously served on the MEDC board after being appointed by Democratic Gov. Gretchen Whitmer, obtained the grant through an earmark and was later accused of misusing the funds on personal luxuries, including a $4,500 coffee maker, and an $11,000 first-class international plane ticket.
The changes follow Republicans regaining control of the state House as a result of the November election, ending the two-year Democratic trifecta of controlling both legislative chambers, as well as the governor’s office.
“Politically connected individuals cannot be allowed to treat the state budget as a personal slush fund,” Bollin said. “The people of Michigan deserve better, and we’re here to deliver.”
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