'(2) To reimburse the Michigan veterans' trust fund for the bonds, notes, and other evidences of indebtedness transferred pursuant to this section, to provide for the administration of this act, to furnish college tuition grants for children of disabled or deceased veterans, there is hereby appropriated from the feneral fund:

'(a) For the fiscal year beginning October 1, 1976, a sum of $3,100,000.00; and for each fiscal year thereafter, a sum to be determined by the appropriations committees of the senate and house, based on the interest as determined by the department of treasury which would have been earned from investment of the trust fund principal amount of $50,000,000.00; less interest earned by investment of the principal amount repaid. The annual rate of interest is to be determined by the department of treasury and forwarded in writing on August 1 of each year to the department of management and budget and the appropriations committees of the house and senate.'

'Although the Michigan Legislature may at times place authorization provisions and appropriation provisions in the same bill, we believe that any provision that does not take initial effect during the ensuing fiscal year is intended to function only as an authorization--an intention to appropriate. The dynamics of the budget change from year to year on the basis of the revenues derived and the expenditures required by the people of Michigan. Responsible fiscal policy consequently also requires a yearly reassessment of revenues, spending goals and priorities.

'The Michigan Constitution of 1963 brought to this state new measures designed to require an annual review of the budget and to provide for annual fiscal accountability in both the legislative and executive branches. See, Const 1963, art 4, Sec. 31 and art 5, Sec. 18 and the 'Convention Comment' accompanying each section. To construe 1970 PA 100, Sec. 16a(5) as urged by appellee would violate the spirit if not the letter of these constitutional provisions. The Legislature would be, in effect, appropriating in advance of its ability to accurately forecast available revenues and would thereby be unable to match revenue with appropriations as required by Const 1963, art 4, Sec. 31. In addition, such prospective appropriations would force the Governor to approve or veto the expenditure far in advance of his ability to assess the fiscal needs of the state. See generally, Const 1963, art 5, Secs. 18 and 19. We do not believe that the Legislature intended either of these results.' (Footnote omitted. Emphasis added.)

'Irrespective of the fact that Sec. 101 was violative of art 4, Sec. 31 in that it was passed before certain general appropriation bills, Sec. 101 could only serve as an appropriation for one fiscal year under the rationale of Board of Education of Oakland Schools v Superintendent of Public Instruction, 392 Mich 613, 620; 221 NW2d 345 (1974).

'In Oakland, dealing with a statute which purported to be an appropriation bill, but which did not take effect during the ensuing fiscal year, we held that 'any provision that does not take initial effect during the ensuing fiscal year is intended to function only as an authorization--an intention to appropriate.'

'The Court felt that such construction avoided conflict with art 4, Sec. 31, for if such a provision were to be effective as an appropriation, the Legislature would be unable to match revenues with appropriations as is required under the Constitution.

'Section 101(4) presents a very similar situation. That section reads as follows:

'(4) An amount equal to the amounts designated under subsection (2) each year is appropriated from the general fund of the state to the state campaign fund. The amounts appropriated under this section shall not revert to the general fund but shall remain available to the state campaign fund for distribution without fiscal year limitation except that any amounts remaining in the state campaign fund on December 31 immediately following a gubernatorial general election shall revert to the general fund.'

'This provision is a continuing appropriation, i.e. an appropriation that does take effect in the ensuing fiscal year, but which by its terms continues to appropriate beyond that fiscal period.

'After the ensuing fiscal year, in which revenues can be matched with the appropriation, the conflict with art 4, Sec. 31 created by such a statute is identical with that created by the type of provision found in Oakland; in both situations, the budgetary procedure required by the constitutional provision becomes impossible.

'Therefore, under the rationale of Oakland, there can be an appropriation to the state campaign fund, only for the ensuing fiscal year but not thereafter, appropriations necessarily being made on a year-to-year basis.' (Footnotes omitted.)