Starting next year, legislators will follow a new process for submitting Legislatively Directed Spending Items (LDSI) for inclusion in the state budget. LDSIs are commonly known as earmarks and are spending items within the state budget that direct state money to specific local projects or organizations.
Key Points:
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- The legislature must post all LSDI requests online at least 45 days prior to a final vote.
- The information posted must contain specific details, including the sponsoring legislator’s name, the intended grant recipient, the amount requested, the public purpose, and more.
- Additional information is required if the recipient is a nonprofit.
- For-profit businesses are banned from receiving funds, and non-profits must have an established presence in Michigan to be eligible.
These reforms were a part of the overall budget negotiations this year. The final versions of the package were negotiated between the House and Senate. Specifically, the House wanted LSDIs to be posted 90 days prior, while the Senate’s plan included a 10-day provision.
