Summary: House Passed ALL GENERAL GOVERNMENT DEPARTMENTS FY 2004-05 House Bill 5517 |
Analyst: Robin Risko
|
FY 2003-04 YTD (as of 2/12/04) |
Executive |
House Passed |
Senate |
|
|
|
Enacted |
|||||
|
IDG/IDT |
$569,647,200 |
$501,329,600 |
$550,214,600 |
||
|
Federal |
61,469,300 |
51,522,900 |
50,531,800 |
||
|
Local |
2,610,800 |
2,664,300 |
2,664,300 |
||
|
Private |
550,100 |
550,100 |
550,100 |
||
|
Restricted |
1,781,662,800 |
1,625,114,600 |
1,621,781,800 |
||
|
GF/GP |
338,486,932 |
350,844,600 |
345,257,200 |
||
|
Gross |
$2,754,427,132 |
$2,532,026,100 |
$2,570,999,800 |
||
|
FTEs |
6,963.9 |
6,981.9 |
6,987.9 |
Overview of All General Government Departments
The Executive recommendation totals $2.5 billion Gross and $350.8 million GF/GP.
The Executive budget is $222.4 million, or 8.1%, under current-year Gross and $12.4 million, or 3.7%, over current-year GF/GP.
The House Passed Substitute totals $2.6 billion Gross and $345.3 million GF/GP.
The House Passed budget is $183.4 million, or 6.7%, under current-year Gross and $6.8 million, or 2.0%, over current-year GF/GP.
The House Passed budget is $39.0 million, or 1.5%, over the Executive recommended Gross and $5.6 million, or 1.6%, under the Executive recommended GF/GP.
Summary of Major Budget Issues
Can be found throughout the document, listed by department.
Summary: House Passed ATTORNEY GENERAL FY 2004-05 House Bill 5517 |
Analyst: Robin Risko
|
FY 2003-04 YTD (as of 2/12/04) |
Executive |
House Passed |
Senate |
Enacted |
Difference: House Passed from FY 2003-04 YTD
|
||
|
Amount |
% |
||||||
|
IDG/IDT |
$10,810,600 |
$11,244,300 |
$12,545,500 |
$1,734,900 |
16.0 |
||
|
Federal |
8,999,800 |
9,292,400 |
8,301,300 |
(698,500) |
(7.8) |
||
|
Local |
0 |
0 |
0 |
0 |
0.0 |
||
|
Private |
0 |
0 |
0 |
0 |
0.0 |
||
|
Restricted |
10,670,100 |
11,070,000 |
10,485,000 |
(185,100) |
(1.7) |
||
|
GF/GP |
30,259,900 |
30,708,400 |
31,898,400 |
1,638,500 |
5.4 |
||
|
Gross |
$60,740,400 |
$62,315,100 |
$63,230,200 |
$2,489,800 |
4.1 |
||
|
FTEs |
568.0 |
562.0 |
564.0 |
(4.0) |
(0.7) |
||
Overview
The Attorney General’s powers are prescribed in the State Constitution, in statute, and in court decisions. Serving as legal counsel for state departments, agencies, boards, commissions, and their officers, the Attorney General defends the state in court, and brings actions and intervenes in cases on the state’s behalf. In addition to defending state agencies, the Attorney General represents legislators and judges who may be sued while acting in their official capacities. The Attorney General issues opinions on questions of law submitted by members of the Legislature and others, serves as chief law enforcement officer of the state, and has supervisory powers over all local prosecuting attorneys.
The Department of Attorney General is organized into five bureaus: Child & Family Services, Criminal Justice, Economic Development & Oversight, Consumer Protection, and Governmental Affairs. In general, each bureau represents certain state agencies, boards, and commissions, and practices in specialized legal areas. Also, the Department includes the Prosecuting Attorneys Coordinating Council, an autonomous entity which provides services to Michigan’s prosecutors, their assistants, and other office staff.
Unlike other state agencies, the Department of Attorney General does not operate or initiate programs, and thus the basic mission and goals of the Department do not change from one year to the next. The mission is to protect the common legal rights of citizens, defend the Constitution and the laws of the state, and represent the legal interests of government. The Department’s goals are to make the state a safe place for its citizens, offer justice to the victims of crime, defend common natural resources and monetary assets of the state, and deliver excellent legal services at a minimum cost to tax payers.
Major Budget Changes from FY 2003-04 YTD Appropriations: |
FY 2003-04 YTD (as of 2/12/04) |
House Passed Change |
|
|
1. Employee-Related Economic Increases House: Includes additional funding to cover increased staff salary, insurance, and retirement costs. Executive: $3,828,100 Gross; $1,702,400 GF/GP |
Gross IDG Federal Restricted GF/GP |
N/A |
$4,871,400 712,300 556,200 642,400 $2,960,500 |
|
2. Employee-Related Savings House: Reduces funding to partially offset the cost of employee-related economic increases. Savings are to be achieved by reducing outside contracts, promoting voluntary work schedule adjustments, and continuing a portion of the temporary wage and benefit concessions. Executive: ($1,776,300) Gross; ($776,800) GF/GP |
Gross IDG Federal Restricted GF/GP |
N/A |
($1,751,300) (341,900) (256,200) (308,300) ($844,900) |
|
3. Other Economic Adjustments House: Reduces funding for rent by $324,200, building occupancy charges by $127,000, and workers’ compensation premiums by $2,000. Executive: ($453,200) Gross; ($453,200) GF/GP |
Gross GF/GP |
N/A |
($453,200) ($453,200) |
|
4. Health Professionals House: Includes additional funding to cover the cost of services provided by the Attorney General to the Department of Community Health, Bureau of Health Services. There has been an increase in licensing activities and regulation of health care providers. Executive: $0 |
Gross IDG |
$1,170,400 1,170,400 |
$460,900 460,900 |
|
5. Office of Financial and Insurance Services House: Includes additional funding to cover the cost of services provided by the Attorney General to DLEG, Office of Financial and Insurance Services. There has been a significant increase in the workload due to health care receiverships and liquidations. Executive: $0 |
Gross IDG |
$122,800 122,800 |
$903,600 903,600 |
|
6. Food Stamp Revenue House: Reflects a reduction in the amount of federal funding received from the US Department of Agriculture for support of food stamp fraud cases. Federal revenue has been lower than appropriated amounts. Executive: $0 |
Gross Federal |
$978,200 978,200 |
($633,800) (663,800) |
|
7. Byrne Grant House: Reflects the elimination of federal Byrne Grant funding that was once available to support the Attorney General Operations line item. This funding has been discontinued. Executive: $0 |
Gross Federal |
$364,700 364,700 |
($364,700) (364,700) |
|
8. Real Estate Enforcement House: Includes additional FTE position authorization and the associated funding in order to support expenses incurred by the Attorney General for services provided to DLEG. More specifically, this funding will support costs of prosecutions resulting from unlicensed real estate activities. Executive: $0 |
FTE Gross Restricted |
N/A |
2.0 $200,000 200,000 |
|
9. Prisoner Reimbursement House: Reflects a reduction in the amount of prisoner reimbursement revenue appropriated in order to more accurately reflect the amount of revenue the Attorney General expects to collect. There is an overstatement of revenue collections in the FY 2004 budget. Executive: $0 |
Gross Restricted |
$1,101,700 1,101,700 |
($719,200) (719,200) |
|
Major Boilerplate Changes from FY 2003-04: |
|
Sec. 301. Contingency Funds – NEW Appropriates federal, state restricted, local, and private contingency funding that can be expended only upon legislative transfer to a specific line item. Executive and House include the new language. |
|
Sec. 307. Unobligated Antitrust Enforcement Revenue –MODIFIED Current-year Sec. 306. authorizes unobligated antitrust enforcement revenue, up to $250,000, to be carried forward. Executive retains current law. House authorizes, in addition to the antitrust enforcement revenues, securities fraud, consumer protection, and class action enforcement revenues, and attorney fees recovered by the Department, up to $1,000,000, to be carried forward. |
|
Sec. 309. Prisoner Reimbursement Revenue– MODIFIED Current-year Sec. 308. authorizes the Department to spend up to $301,700 of prisoner reimbursement revenue on activities related to the State Correctional Facilities Reimbursement Act and authorizes the Department to spend up to $800,000 of prisoner reimbursement revenue, if the Department collects in excess of $1,131,000, on defense of litigation against the state, its departments, or employees in civil actions filed by prisoners. Executive increases spending authorization from $301,700 to $400,000, increases the amount the Department is to collect from $1,131,000 to $1,231,000, and adds that with the approval of the State Budget Director, up to $800,000 of unexpended funds may be carried forward for expenditure in the following year. House increases spending authorization from $301,700 to $400,000, retains the amount the Department is to collect at $1,131,000, and authorizes the excess collected, up to $1,000,000, to be carried forward. |
|
Sec. 311. Information Technology Appropriation –NEW House includes new language which appropriates $700,000 to the Department for information technology services and projects expenditures. |
|
|
|
Summary: House Passed CIVIL RIGHTS FY 2004-05 House Bill 5517 |
Analyst: Robin Risko
|
FY 2003-04 YTD (as of 2/12/04) |
Executive |
House Passed |
Senate |
Enacted |
Difference: House Passed from FY 2003-04 YTD
|
||
|
Amount |
% |
||||||
|
IDG/IDT |
$0 |
$0 |
$0 |
$0 |
0.0 |
||
|
Federal |
934,000 |
934,000 |
934,000 |
0 |
0.0 |
||
|
Local |
0 |
0 |
0 |
0 |
0.0 |
||
|
Private |
0 |
0 |
0 |
0 |
0.0 |
||
|
Restricted |
0 |
0 |
0 |
0 |
0.0 |
||
|
GF/GP |
11,720,158 |
11,857,200 |
11,857,200 |
137,042 |
1.2 |
||
|
Gross |
$12,654,158 |
$12,791,200 |
$12,791,200 |
$137,042 |
1.1 |
||
|
FTEs |
142.0 |
141.0 |
141.0 |
(1.0) |
(0.7) |
||
Overview
The Michigan Civil Rights Commission was established in 1963 pursuant to Article I, Section 2 of the State Constitution to carry out the guarantees against discrimination. In Article V, Section 29, the Commission is charged with investigating alleged discrimination against any person because of religion, race, color, or national origin and is directed to "secure the equal protection of such civil rights without such discrimination." Public Acts 453 and 220 of 1976, the Elliot-Larsen Civil Rights Act and the Handicappers’ Civil Rights Act, respectively, and subsequent amendments have added sex, age, marital status, height, weight, arrest record, and physical and mental disabilities to the original four protected categories.
The Michigan Department of Civil Rights was established in 1965 to serve as the administrative arm charged with implementing the policies of the Commission. The Department works to prevent discrimination through educational programs that promote voluntary compliance with civil rights laws; investigates and resolves discrimination complaints in the areas of employment, public accommodations and service, education, housing, and law enforcement; and disseminates information that explains the rights and responsibilities of Michigan citizens as provided by law. Also, the Department provides information and services to businesses on diversity initiatives, equal employment laws, contract compliance, coordination of certification programs for enterprises owned by persons with disabilities, and joint venture/strategic alliance matchmaking. A discrimination complaint may be filed at any of the Department's offices if the alleged discrimination has occurred within the past 180 days.
Major Budget Changes from FY 2003-04 YTD Appropriations: |
FY 2003-04 YTD (as of 2/12/04) |
House Passed Change |
|
|
1. Employee-Related Economic Increases House: Includes additional funding to cover increased staff salary, insurance, and retirement costs. Executive: $870,900 GF/GP
|
Gross GF/GP |
N/A |
$870,900 $870,900 |
|
2. Employee-Related Savings House: Reduces funding to partially offset the cost of employee-related economic increases. Savings are to be achieved by reducing outside contracts, promoting voluntary work schedule adjustments, and continuing a portion of the temporary wage and benefit concessions. Executive: ($346,900) GF/GP |
Gross GF/GP |
N/A |
($346,900) ($346,900) |
|
3. Other Economic Adjustments House: Reduces funding for rent and building occupancy charges by $374,700 and worker’s compensation premiums by $1,000. Executive: ($375,700) GF/GP |
Gross GF/GP |
N/A |
($375,700) ($375,700) |
|
4. Human Resources Optimization Project House: Reduces FTE position authorization and funding by $49,100 as a result of consolidated human resources functions. The Department of Civil Service will create a new Human Resources Call Center, which will be the central information source for employees who have human resources questions or who need personnel transactions processed, and the Department of Civil Rights will pay them for the services they provide, $29,500. Executive: (1.0) FTE; ($19,600) GF/GP |
FTEs Gross GF/GP |
0.0 $0 $0 |
(1.0) ($19,600) ($19,600) |
|
Major Boilerplate Changes from FY 2003-04: |
|
Sec. 401. Contingency Funds – NEW Appropriates federal contingency funding that can be expended only upon legislative transfer to a specific line item. Executive and House include the new language. |
|
Summary: House Passed CIVIL SERVICE FY 2004-05 House Bill 5517 |
Analyst: Robin Risko
|
FY 2003-04 YTD (as of 2/12/04) |
Executive |
House Passed |
Senate |
Enacted |
Difference: House Passed from FY 2003-04 YTD
|
||
|
Amount |
% |
||||||
|
IDG/IDT |
$2,300,000 |
$2,300,000 |
$5,370,900 |
$3,070,900 |
133.5 |
||
|
Federal |
4,779,100 |
4,779,100 |
4,779,100 |
0 |
0.0 |
||
|
Local |
1,700,000 |
1,700,000 |
1,700,000 |
0 |
0.0 |
||
|
Private |
150,000 |
150,000 |
150,000 |
0 |
0.0 |
||
|
Restricted |
14,872,200 |
18,545,500 |
15,474,600 |
602,400 |
4.1 |
||
|
GF/GP |
7,832,537 |
7,788,300 |
7,788,300 |
(44,237) |
(0.6) |
||
|
Gross |
$31,633,837 |
$35,262,900 |
$35,262,900 |
$3,629,063 |
11.5 |
||
|
FTEs |
211.5 |
240.5 |
240.5 |
29.0 |
13.7 |
||
Overview
The Department of Civil Service is responsible for implementing policies established by the Civil Service Commission. The Department administers a statewide merit system that provides classified job opportunities within state government. This system includes classification of positions, administration of competitive examinations for all classified positions, setting of pay scales, development of rules governing personnel transactions and conditions of employment, administration of employee benefits, and administration of the Civil Service Commission’s Employment Relations Policy. In addition, the Department maintains ongoing statewide recruitment.
Major Budget Changes from FY 2003-04 YTD Appropriations: |
FY 2003-04 YTD (as of 2/12/04) |
House Passed Change |
|
|
1. Human Resources Optimization Project House: Includes an additional 30.0 FTE positions and $3.0 million for the creation of a new Human Resources Call Center, which will be the central information source for employees who have human resources questions or who need personnel transactions processed. Also, a portion of the funding will be used for increased information technology costs associated with the consolidation of human resources functions. The House increases IDG funding and reduces state restricted funding by a like amount in order to more accurately reflect the payment structure for HR services. Executive: 30.0 FTEs; $3,070,900 Restricted |
FTEs Gross IDG |
0.0 $0 0 |
30.0 $3,070,900 3,070,900 |
|
2. Employee-Related Economic Increases House: Includes additional funding to cover increased staff salary, insurance, and retirement costs Executive: $1,949,800 Gross; $821,900 GF/GP |
Gross Restricted GF/GP |
N/A |
$1,949,800 1,127,900 $821,900 |
|
3. Employee-Related Savings House: Reduces funding to partially offset the cost of employee-related economic increases. Savings are to be achieved by reducing outside contracts, promoting voluntary work schedule adjustments, and continuing a portion of the temporary wage and benefit concessions. Executive: ($588,600) Gross; ($203,800) GF/GP |
Gross Restricted GF/GP |
N/A |
($588,600) (384,800) ($203,800)
|
|
4. Other Economic Adjustments House: Reduces funding for building occupancy charges by $60,000 and workers’ compensation premiums by $2,000. Executive: ($62,000) Gross; ($21,700) GF/GP |
Gross Restricted GF/GP |
N/A |
($62,000) (40,300) ($21,700) |
|
5. Administrative Efficiencies House: Reflects a savings as a result of reduced spending for contractual services, reduced in-state travel and conference attendance, and delayed improvements to the Human Resources Management Network. Executive: ($600,000) GF/GP |
Gross GF/GP |
N/A |
($600,000) ($600,000) |
|
6. Human Resources Optimization Project House: Reduces FTE position authorization and funding by $49,100 as a result of consolidated human resources functions. The Department of Civil Service will create a new Human Resources Call Center, which will be the central information source for employees who have human resources questions or who need personnel transactions processed. Executive: (1.0) FTE; ($49,100) Gross; ($17,200) GF/GP |
FTEs Gross Restricted GF/GP |
0.0 $0 0 $0 |
(1.0) ($49,100) (31,900) ($17,200) |
|
Major Boilerplate Changes from FY 2003-04: |
|
Sec. 501. Contingency Funds – NEW Appropriates federal, state restricted, local, and private contingency funding that can be expended only upon legislative transfer to a specific line item. Executive and House include the new language. |
|
Summary: House Passed EXECUTIVE FY 2004-05 House Bill 5517 |
Analyst: Robin Risko
|
FY 2003-04 YTD (as of 2/12/04) |
Executive |
House Passed |
Senate |
Difference: House Passed from FY 2003-04 YTD
|
|||
|
Enacted |
Amount |
% |
|||||
|
IDG/IDT |
$0 |
$0 |
$0 |
$0 |
0.0 |
||
|
Federal |
0 |
0 |
0 |
0 |
0.0 |
||
|
Local |
0 |
0 |
0 |
0 |
0.0 |
||
|
Private |
0 |
0 |
0 |
0 |
0.0 |
||
|
Restricted |
0 |
0 |
0 |
0 |
0.0 |
||
|
GF/GP |
4,859,500 |
4,859,500 |
4,859,500 |
0 |
0.0 |
||
|
Gross |
$4,859,500 |
$4,859,500 |
$4,859,500 |
$0 |
0.0 |
||
|
FTEs |
84.2 |
84.2 |
84.2 |
0.0 |
0.0 |
||
Overview
The budget for the Executive Office provides funding for the Governor, the Lieutenant Governor, and their staffs. The Governor is elected by the people to a four-year term, is the Chief Executive Officer of the state, the Commander-In-Chief of the state’s military establishment, and the Chairperson of the State Administrative Board. Major constitutionally-specified responsibilities include organization and supervision of the Executive branch and annual preparation and submission of the Executive budget. The Lieutenant Governor is nominated at party convention, is elected with the Governor to a four-year term, performs gubernatorial functions in the Governor’s absence, and serves as President of the Michigan Senate.
Divisions within the Governor’s Office include: Legal, Operations, Community-Based Initiatives, Appointments, Constituent Services, Policy, Communications, Legislative Affairs, Scheduling, Special Projects, and the Governor’s Washington D.C. Office, Southeastern Michigan Office, and Upper Peninsula Office.
**There were no changes to current-year appropriations recommended by either the Executive or the House.
|
Summary: House Passed INFORMATION TECHNOLOGY FY 2004-05 House Bill 5517 |
Analyst: Robin Risko
|
FY 2003-04 YTD (as of 2/12/04) |
Executive |
House Passed |
Senate |
Difference: House Passed from FY 2003-04 YTD
|
|||
|
Enacted |
Amount |
% |
|||||
|
IDG/IDT |
$360,239,300 |
$366,235,800 |
$355,248,700 |
($4,990,600) |
(1.4) |
||
|
Federal |
0 |
0 |
0 |
0 |
0.0 |
||
|
Local |
0 |
0 |
0 |
0 |
0.0 |
||
|
Private |
0 |
0 |
0 |
0 |
0.0 |
||
|
Restricted |
0 |
0 |
0 |
0 |
0.0 |
||
|
GF/GP |
0 |
0 |
0 |
0 |
0.0 |
||
|
Gross |
$360,239,300 |
$366,235,800 |
$355,248,700 |
($4,990,600) |
(1.4) |
||
|
FTEs |
1,755.4 |
1,762.4 |
1,762.4 |
7.0 |
0.4 |
||
Overview
The Department of Information Technology was created pursuant to Executive Order 2001-3 for the purposes of improving the delivery of services to citizens by utilizing advancements in technology, improving the management of state information and technology resources, and assuring the reliability, security, and confidentiality of state data and computer facilities. The Department acts as a general contractor between the state’s information technology users and private sector providers of information technology products and services.
“Information Technology Services” is defined to mean services involving all aspects of managing and processing information including, but not limited to, all of the following: application development and maintenance; desktop computer support and management; mainframe computer support and management; server support and management; local area network support and management; information technology contract, project, and procurement management; information technology planning and budget management; telecommunication services, security, infrastructure, and support; and software and software licensing.
The Department utilizes existing technology funding and state employees from within the other 19 executive branch departments and agencies to support the long-term technology needs of the state, and to find solutions and identify more effective ways to achieve missions. Each state department and agency requests spending authority to fund information technology-related activities and pays for technology services rendered by the Department of Information Technology through an interdepartmental grant. The administration of fund sources remains with each agency. Funding is organized into the following broad theme areas which are based on agency missions: Enterprisewide Services, Health and Human Services, Education Services, Public Protection, Resources Services, Transportation Services, and General Services.
Major Budget Changes from FY 2003-04 YTD Appropriations: |
FY 2003-04 YTD (as of 2/12/04) |
House Passed Change |
|
|
1. Employee-Related Economic Increases House: Includes additional funding to cover increased staff salary, insurance, and retirement costs. Executive: $14,830,600 IDG |
Gross IDG |
$360,239,300 360,239,300 |
$14,830,600 14,830,600 |
|
2. Employee-Related Savings House: Reduces funding to partially offset the cost of employee-related economic increases. Savings are to be achieved by reducing outside contracts, promoting voluntary work schedule adjustments, and continuing a portion of the temporary wage and benefit concessions. Executive: ($4,472,200) IDG |
Gross IDG |
$360,239,300 360,239,300 |
($4,472,200) (4,472,200) |
|
3. Executive Order 2003-23 Adjustments House: Makes adjustments to the DIT budget, which were made in other state department budgets as a result of Executive Order 2003-23, in order to accurately reflect statewide appropriations for information technology services and projects. Executive: ($13,888,400) IDG |
Gross IDG |
$360,239,300 360,239,300 |
($13,888,400) (13,888,400) |
|
4. FY 2004 Adjustments House: Makes adjustments to the DIT budget which were made in various other state department budgets as a result of supplemental appropriations. Also, makes adjustments to reflect actual enacted appropriations for information technology services and projects in the other state department budgets. Executive: $11,243,100 IDG |
Gross IDG |
$360,239,300 360,239,300 |
$11,243,100 11,243,100 |
|
5. Reduced Funding for CSES House: Reflects the reduction in funding for the Child Support Enforcement System (CSES) in the Family Independence Agency budget based on projected spending levels. The CSES project has been certified and fully implemented. Funding will continue to be available for ongoing operation and maintenance costs. Executive: ($12,000,000) IDG |
Gross IDG |
N/A |
($12,000,000) (12,000,000) |
|
6. Baseline Reductions House: Reflects a savings of $4.3 million as a result of reductions in platform and telecommunication rates, data line charges, data center operations, agency and maintenance services, contractual and consulting services, staff, CSS&M, and equipment purchases. Executive: ($4,331,600) IDG |
Gross IDG |
$360,239,300 360,239,300 |
($4,331,600) (4,331,600) |
|
7. Unemployment Call Center House: Reflects the transfer of the Department of Labor and Economic Growth’s contract with IBM to the Department of Information Technology. Contract funding supports the Unemployment Call Center and the computer system which houses all of the state’s unemployment data. Executive: $9,115,200 IDG |
Gross IDG |
N/A |
$9,115,200 9,115,200 |
|
8. Adjustments for Corrections House: Reflects adjustments made in the Department of Corrections budget for the conversion of the entire Department from the Correction Management Information System to the Offender Management Network Information System. Executive: $2,220,000 IDG |
Gross IDG |
N/A |
$2,220,000 2,220,000 |
|
9. Adjustments for State Police House: Reflects adjustments made in the Department of State Police budget for the transfer of the Commercial Vehicle Information System Network project, fleet funding, and information technology-related personnel costs from the State Police to DIT. Executive: $2,430,000 IDG |
Gross IDG |
N/A |
$2,430,000 2,430,000 |
|
10. Human Resources Optimization House: Includes additional FTE position authorization and funding for operation and maintenance of the new Human Resources Call Center being implemented in the Department of Civil Service budget. Funding will cover costs of annual fees for software, staff, server hosting, maintenance and support, and the toll free service. Executive: 4.0 FTEs; $1,070,900 IDG |
Gross IDG |
$0 0 |
$1,070,900 1,070,900 |
|
11. 3% Reduction House: Reduces funding authorization for each line item in the DIT budget by 3%. Executive: $0 |
Gross IDG |
$360,239,300 360,239,300 |
($10,987,100) (10,987,100) |
Major Boilerplate Changes from FY 2003-04: |
|
Sec. 571. Contingency Funds –NEW Appropriates IDG funding that can be expended only upon legislative transfer to a specific line item. Executive authorizes appropriation of $40.0 million. House authorizes appropriation of $10.0 million. |
|
Sec. 573. Sale of Paid Advertising– MODIFIED Current-year Sec. 572 authorizes the Department to sell and accept paid advertising; requires revenue received to be used for operating costs and future technology enhancements; limits the amount of revenue that can be received from the sale of paid advertising to $250,000; authorizes the receipt of gifts, donations, contributions, bequests, and grants; authorizes unexpended funding to be carried forward; requires the Department to develop a search function of all state departments that is easily accessible to visitors; requires a privacy policy to be adopted; and requires a report on the amount of gifts, donations, contributions, bequests, and grants received, expenditures made, total revenue received from the sale of paid advertising, and total number of advertising transactions. Executive deletes the $250,000 limit, deletes the requirement that funding received over $250,000 be deposited into the general fund, deletes the requirement that the Department develop a search function, deletes the requirement that a privacy policy be adopted, and deletes the reporting requirement. House deletes the requirement that the Department develop a search function and deletes the requirement that a privacy policy be adopted. |
|
Sec. 577. Michigan Public Safety Communications System– RETAINED Current-year language requires the appropriation for the Michigan Public Safety Communications System to be expended upon approval by the State Budget Director of an expenditure plan, requires the Department to assess reasonable access and maintenance fees to all subscribers of the system, requires revenue received to be deposited into the general fund, and requires a report on the amount of revenue collected and deposited. Executive deletes the requirement that revenue received be deposited into the general fund, instead requiring it to be expended for support and maintenance of the system, and requires the report to indicate the amount of revenue expended for support and maintenance. House retains current law. |
|
Sec. 578. Report on Appropriations and Expenditures – RETAINED Requires the Department to submit a report on the total amount of funding appropriated for information technology services and projects, by funding source, for all state departments and requires a listing of expenditures made from amounts received. Executive deletes language. House retains current law. |
|
Sec. 579. Report on Life-Cycle of Hardware and Software – RETAINED Requires the Department to submit a report which analyzes and makes recommendations on the life-cycle of information technology hardware and software. Executive deletes language. House retains current law. |
|
Summary: House Passed LEGISLATURE FY 2004-05 House Bill 5517 |
Analyst: Robin Risko
|
FY 2003-04 YTD (as of 2/12/04) |
Executive |
House Passed |
Senate |
Difference: House Passed from FY 2003-04 YTD
|
|||
|
Enacted |
Amount |
% |
|||||
|
IDG/IDT |
$1,662,900 |
$1,801,500 |
$1,801,500 |
$138,600 |
8.3 |
||
|
Federal |
0 |
0 |
0 |
0 |
0.0 |
||
|
Local |
0 |
0 |
0 |
0 |
0.0 |
||
|
Private |
400,000 |
400,000 |
400,000 |
0 |
0.0 |
||
|
Restricted |
2,495,100 |
2,356,500 |
2,356,500 |
(138,600) |
(5.6) |
||
|
GF/GP |
114,072,800 |
114,072,800 |
114,122,800 |
50,000 |
0.0 |
||
|
Gross |
$118,630,800 |
$118,630,800 |
$118,680,800 |
$50,000 |
$0 |
||
|
FTEs |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
Overview
The budget for the Legislature provides funding for the Legislative branch of state government, to include the Legislative Council and agencies it governs, the Office of the Auditor General, the Legislative Retirement System, and Property Management. The Legislature enacts the laws of Michigan, levies taxes, appropriates funding from revenues collected for the support of public institutions and the administration of the affairs of state government, initiates and considers amendments to the State and U.S. Constitutions, and exercises legislative oversight over the Executive branch of government. The Legislative Council provides a wide variety of essential services to members and staff of the Legislature and is responsible for maintaining bill drafting, research, and other services. Carpenters, painters, maintenance mechanics, and electricians provide maintenance, operation, and repair of the Capitol Building, House of Representatives Office Building, and Farnum Building.
The Office of the Auditor General is responsible for conducting financial and performance audits of state government operations. The resulting audit reports provide a continuing flow of information to assist the Legislature in its oversight of state government, provide citizens with a measure of accountability, and assist state departments and agencies in improving financial management.
The Michigan Legislative Retirement System provides retirement allowances, survivors’ allowances, and other benefits for members of the Legislature and their spouses, dependents, survivors, and beneficiaries. The system is funded through state appropriations, member contributions, certain court filing fees, and investment income.
|
Major Budget Changes from FY 2003-04 YTD Appropriations: |
FY 2003-04 YTD (as of 2/12/04) |
House Passed Change |
|
|
1. Legislative Auditor General – Fund Source Shift House: Increases IDG funding and reduces state restricted funding by the same amount in order to more accurately reflect where audit charges occur. Executive: $138,600 IDG; ($138,600) Restricted |
Gross IDG Restricted GF/GP |
$14,301,500 1,662,900 1,385,300 $11,253,300 |
$0 138,600 (138,600) $0 |
|
2. Legislative Auditor General – Funding Increase House: Includes additional funding for the Auditor General budget. Executive: $0 |
Gross IDG Restricted GF/GP |
$14,301,500 1,662,900 1,385,300 $11,253,300 |
$50,000 0 0 $50,000 |
|
Major Boilerplate Changes from FY 2003-04: |
|
Sec. 606. Property Management –MODIFIED Designates the appropriations for property management as work project appropriations. House modifies the language to include work project account information that is required pursuant to the Management and Budget Act. |
|
Sec. 606a. Automated Data Processing –NEW House includes new language which designates automated data processing appropriations as work project appropriations. |
|
Sec. 610. Contingency Funds – NEW Appropriates state restricted contingency funds to the Auditor General that can be expended only upon legislative transfer to a specific line item. Executive and House include new language. |
|
|
|
Summary: House Passed MANAGEMENT AND BUDGET FY 2004-05 House Bill 5517 |
Analyst: Robin Risko
|
FY 2003-04 YTD (as of 2/12/04) |
Executive |
House Passed |
Senate |
Difference: House Passed from FY 2003-04 YTD
|
|||
|
Enacted |
Amount |
% |
|||||
|
IDG/IDT |
$162,216,800 |
$86,575,200 |
$142,075,200 |
($20,141,600) |
(12.4) |
||
|
Federal |
740,800 |
444,600 |
444,600 |
(296,200) |
(40.0) |
||
|
Local |
0 |
0 |
0 |
0 |
0.0 |
||
|
Private |
0 |
0 |
0 |
0 |
0.0 |
||
|
Restricted |
31,201,300 |
33,206,100 |
33,206,100 |
2,004,800 |
6.4 |
||
|
GF/GP |
35,828,900 |
37,111,600 |
37,111,600 |
1,282,700 |
3.6 |
||
|
Gross |
$229,987,800 |
$157,337,500 |
$212,837,500 |
($17,150,300) |
(7.5) |
||
|
FTEs |
722.0 |
729.0 |
729.0 |
7.0 |
1.0 |
||
Overview
The Department of Management and Budget (DMB) has legal authority under the Management and Budget Act, 1984 PA 431, and is the central management element of the Executive branch of state government. The Department is an interdepartmental service and management agency responsible for all of the following: ensuring proper financial record keeping for state agencies, managing capital outlay projects, managing property for the state (i.e., managing state leases, selling surplus property), executing cost-effective purchasing programs, managing the state’s retirement systems, supervising the state motor vehicle fleet, administering travel policies, and providing office support services to state agencies. In addition, the Office of the State Budget is housed within DMB and prepares, presents, and executes the state budget on behalf of the Governor.
The Department has several autonomous units, including the following: Office of the State Employer, which is primarily responsible for central labor relations as the employer of the state classified work force; Office of the Children’s Ombudsman, which investigates the actions, decisions, policies, and protocols of the Family Independence Agency and child placing agencies as they relate to children in Michigan’s child welfare system; and Office of Regulatory Reform, which is responsible for reviewing proposed rules, coordinating the processing of rules by state agencies, and working with agencies to streamline the rule-making process and improve public access.
|
Major Budget Changes from FY 2003-04 YTD Appropriations: |
FY 2003-04 YTD (as of 2/12/04) |
House Passed Change |
|
|
1. Motor Vehicle Fleet House: Retains line item appropriation for the state’s Motor Vehicle Fleet program and reduces it by $3.0 million. Executive: Eliminates the line item and returns funding to a non-appropriated internal service fund. ($58,500,000) IDG |
Gross IDG |
$58,500,000 58,500,000 |
($3,000,000) (3,000,000) |
|
2. Restructuring of Rent Payments House: Reflects a savings of $18.1 million due to the renegotiation of long-term leases for buildings the Department manages. Rent payments the Department makes for affected leased facilities for FY 2005 will be reduced as a result of financial restructuring. Executive: ($18,100,000) IDG |
Gross IDG |
$92,242,500 $92,242,500 |
($18,100,000) (18,100,000) |
|
3. Employee-Related Economic Increases House: Includes additional funding to cover increased staff salary, insurance, and retirement costs. Executive: $7,438,900 Gross; $3,041,800 GF/GP |
Gross IDG Restricted GF/GP |
N/A |
$7,438,900 2,564,000 1,833,100 $3,041,800 |
|
4. Employee-Related Savings House: Reduces funding to partially offset the cost of employee-related economic increases. Savings are to be achieved by reducing outside contracts, promoting voluntary work schedule adjustments, and continuing a portion of the temporary wage and benefit concessions. Executive: ($2,261,200) Gross; ($852,200) GF/GP |
Gross IDG Restricted GF/GP |
N/A |
($2,261,200) (763,600) (645,400) ($852,200) |
|
5. Internal Audit Partnership with Treasury House: Reflects the transfer of 4.0 FTE positions and funding from the Department of Treasury to DMB to support administrative costs associated with DMB providing internal audit services to the Department of Treasury. Executive: 4.0 FTE; $425,000 GF/GP |
FTE Gross GF/GP |
0.0 $0 $0 |
4.0 $425,000 $425,000 |
|
6. Retirement System Vision ORS Project House: Includes additional funding to cover information technology cost increases associated with the Vision ORS system. Funding will support costs for maintenance, software and licenses for additional servers, network storage space, professional services to perform anticipated major annual software upgrades, and application support tools for the application support team. Executive: $553,000 Restricted |
Gross Restricted |
N/A |
$553,000 553,000 |
|
7. Reduced Funding for MAIN Support House: Reflects a savings due to reducing state and contractor staff costs, scaling back on system development initiatives, and reducing operating costs as a result of archiving MAIN data in a way that allows the system to run faster and store less data. Executive: ($477,000) GF/GP |
Gross GF/GP |
N/A |
($477,000) ($477,000) |
|
8. Building Operation Service Reductions House: Reflects a savings of $81,000 due to elimination of uniform rental and laundry services, a savings of $53,000 due to conversion of Grand Tower operating contract staff to state staff, a savings of $47,000 due to warehouse lease cancellation and a move to state space, and a savings of $30,000 due to elimination of contract reporting requirements. Executive: (2.0) FTE; ($211,000) IDG |
FTE Gross IDG |
230.0 $92,242,500 $92,242,500 |
(2.0) ($211,000) (211,000) |
|
9. Human Resources Optimization House: Reduces FTE position authorization and funding by $49,100 as a result of consolidated human resources functions. The Department of Civil Service will create a new Human Resources Call Center, which will be the central information source for employees who have human resources questions or who need personnel transactions processed, and the Department of Management and Budget will pay them for the services they provide, $29,500. Executive: (1.0) FTE; ($19,600) Gross; ($4,000) GF/GP |
FTE Gross IDG Restricted GF/GP |
0.0 $0 0 0 $0 |
(1.0) ($19,600) (7,600) (8,000) ($4,000)
|
|
Major Boilerplate Changes from FY 2003-04: |
|
DEPARTMENT OF MANAGEMENT AND BUDGET Sec. 701. Contingency Funds –NEW Appropriates federal, state restricted, and local contingency funding that can be expended only upon legislative transfer to a specific line item. Executive and House include the new language. |
|
Sec. 713. Revisions to Computer Contracts– RETAINED Requires DMB to report on any revisions to current computer contracts exceeding $500,000 at least 14 days prior to finalization of the revisions. Executive deletes the language. House retains current law. |
|
Sec. 715. Motor Vehicle Fleet – MODIFIED Current law section 719 requires the appropriation for motor vehicle fleet to be used for administration and the acquisition, lease, operation, maintenance, repair, replacement, and disposal of state motor vehicles; specifies that the appropriation is to be funded by revenue from rates charged to state departments and agencies for utilizing vehicle travel services provided by DMB; expresses intent of the Legislature that DMB have the authority to determine the appropriateness of vehicle assignment, to include, year, make, model, size, and price of vehicle; gives DMB the authority to assign motor vehicles, either permanently or temporarily, to state agencies and to institutions of higher education; expresses intent of the Legislature that DMB complete a project plan which results in the reduction of expenditures related to vehicle travel services, to include a reduction in the number of state vehicles; and requires a quarterly report on the status of the project plan. Executive deletes the language. House modifies current law to include authorization for excess revenue from the Motor Transport Fund to be carried forward and to express that it is the Legislature’s intent that the Department determine the feasibility of using driver record information upon issuing state cars to state employees in order to ensure responsibility and safety. |
|
Sec. 716. Purchasing from Michigan-Based Firms– NEW Houseincludes new language which requires DMB to adopt policies and procedures necessary in order to provide a purchasing preference for products manufactured or services offered by Michigan-based firms. |
|
Sec. 717. Purchasing Decisions in the Best Interests of the State –NEW Houseincludes new language which establishes guidelines for DMB to follow when determining whether the purchase, contracting for, providing of supplies, materials, services, insurance, utilities, third party financing, equipment, printing, and other items needed by state departments is in the best interests of the state. |
|
Sec. 718. Vendor Disclosure (Information to Collect) –NEW Houseincludes new language which lists types of information DMB is authorized to collect from vendors in order to ensure compliance with procurement of goods and services from Michigan-based providers. |
|
Sec. 719. Vendor Disclosure (Call Centers) –NEW Houseincludes new language which authorizes DMB to require that any vendor or subcontractor who provides call or contact center services to the state disclose the location from which the call or contact center services are being provided to the inbound caller. |
|
GENERAL SECTIONS OF BOILERPLATE Sec. 205. Hiring Freeze – RETAINED Imposes a hiring freeze on the state classified civil service, permits exceptions by the Attorney General and Secretary of State for their respective departments and by the State Budget Director for all other Executive branch departments, and requires a report on the number of exceptions granted, to include justification for the exceptions. Executive deletes the language. House retains current law. |
|
Sec. 207. Privatization – RETAINED Requires departments to submit a complete project plan 60 days prior to beginning any effort to privatize and requires an evaluation of the privatization initiative within 30 months. Executive deletes the language. House retains current law. |
|
Sec. 209. Information Technology Appropriations as Work Projects–NEW Designates appropriations for information technology as work project accounts and authorizes carryforward of available balances. Executive includes new language. House does not include the language. |
|
Sec. 210. Deprived and Depressed Communities –RETAINED Requires the directors of departments to take all reasonable steps to ensure businesses in deprived and depressed communities compete for and perform contracts. Executive deletes the language. House retains current law. |
|
Sec. 212. Receipt and Retention of Reports –RETAINED Authorizes departments to receive, and requires them to retain, copies of all reports required in the bill, and requires departments to follow federal and state guidelines for short-term and long-term retention of records. Executive deletes the language. House retains current law. |
|
Sec. 215. Disciplinary Action Against Employees –RETAINED Prohibits departments from taking disciplinary action against employees for communicating with legislators or their staff. Executive deletes the language. House retains current law. |
|
Summary: House Passed STATE FY 2004-05 House Bill 5517 |
Analyst: Robin Risko
|
FY 2003-04 YTD (as of 2/12/04) |
Executive |
House Passed |
Senate |
Difference: House Passed from FY 2003-04 YTD
|
|||
|
Enacted |
Amount |
% |
|||||
|
IDG/IDT |
$20,000,000 |
$20,000,000 |
$20,000,000 |
$0 |
0.0 |
||
|
Federal |
1,319,500 |
1,391,000 |
1,391,000 |
71,500 |
5.4 |
||
|
Local |
0 |
0 |
0 |
0 |
0.0 |
||
|
Private |
100 |
100 |
100 |
0 |
0.0 |
||
|
Restricted |
143,070,200 |
151,553,500 |
151,553,500 |
8,483,300 |
5.9 |
||
|
GF/GP |
16,698,451 |
15,321,400 |
15,321,400 |
(1,377,051) |
(8.2) |
||
|
Gross |
$181,088,251 |
$188,266,000 |
$188,266,000 |
$7,177,749 |
4.0 |
||
|
FTEs |
1,856.8 |
1,859.8 |
1,859.8 |
3.0 |
0.2 |
||
Overview
The Department of State administers programs in four major areas: motor vehicle transactions, which includes titling and registration of automobiles, watercraft, and recreational vehicles; traffic safety, which includes testing drivers for ability and the suspension of license privileges when laws are broken or incompetence is judged; consumer protection, which includes inspection and licensing of automotive repair facilities; and regulation and administration of the state's electoral process, which entails training local election officials and monitoring campaign finance.
|
Major Budget Changes from FY 2003-04 YTD Appropriations: |
FY 2003-04 YTD (as of 2/12/04) |
House Passed Change |
||
|
1. Employee-Related Economic Increases House: Includes additional funding to cover increased staff salary, insurance, and retirement costs. Executive: $11,765,900 Gross; $669,900 GF/GP |
Gross Federal Restricted GF/GP |
N/A |
$11,765,900 109,400 10,986,600 $669,900 |
|
|
2. Employee-Related Savings House: Reduces funding to partially offset the cost of employee-related economic increases. Savings are to be achieved by reducing outside contracts, promoting voluntary work schedule adjustments, and continuing a portion of the temporary wage and benefit concessions. Executive: ($3,735,300) Gross; ($209,300) GF/GP |
Gross Federal Restricted GF/GP |
N/A |
($3,735,300) (37,900) (3,488,100) ($209,300)
|
|
|
3. Other Economic Adjustments House: Reduces funding for building occupancy charges by $973,700 Gross and workers’ compensation premiums by $22,000 Gross. Executive: ($995,700) Gross; ($263,300) GF/GP |
Gross Restricted GF/GP |
N/A |
($995,700) (732,400) ($263,300) |
|
|
4. Qualified Voter File House: Includes additional funding for continued maintenance and improvement of the server processes, a group of programs utilized by all 1,498 city, county, and township clerks to administer elections. Executive: $395,300 GF/GP |
Gross GF/GP |
$1,334,300 $1,334,300 |
$395,300 $395,300 |
|
|
5. Transfer of Driver Education Program House: Reflects the transfer of FTE positions and funding to cover administrative costs for the Driver Education program, which is being transferred from the Department of Education to the Department of State. Major responsibilities will include approval of driver education courses and approval of driver education instructors in both school district and proprietary driver training programs. Executive: 2.0 FTE; $528,000 Restricted |
FTE Gross Restricted |
0.0 $0 0 |
2.0 $528,000 528,000 |
|
|
6. Notary Public Act House: Includes an additional 1.0 FTE position and $300,000 for implementation of Public Act 238 of 2003, which rewrites the Michigan Notary Public Act. The legislation takes affect on April 1 and streamlines the application process, authorizing the Department to conduct background checks to ensure suitable candidates. An additional $100,000 is included for educating and training county clerks on the new process. Executive: 1.0 FTE; $400,000 Restricted |
FTE Gross Restricted |
0.0 $0 0 |
1.0 $400,000 400,000 |
|
|
7. DIT Base Reduction House: Reflects a savings due to reductions in data center platform and telecommunication rates, contractual services, consulting charges, and hardware costs. Executive: ($936,800) GF/GP |
Gross Restricted GF/GP |
$24,189,247 19,291,300 $4,897,947 |
($936,800) 0 ($936,800) |
|
|
Major Boilerplate Changes from FY 2003-04: |
|
|||
|
Sec. 801. Contingency Funds – NEW Appropriates federal, state restricted, local, and private contingency funding that can be expended only upon legislative transfer to a specific line item. Executive and House include the new language. |
|
|||
|
Sec. 814. Organ Donor Program –RETAINED Requires organ donor program funding to be used for the production of an organ donation informational pamphlet to be distributed with driver licenses and personal identification cards and to pay for return postage costs. The pamphlet is required to include a return reply postage paid form addressed to the Gift of Life Donor Program organization. Executive deletes the language. House retains current law. |
|
|||
|
Sec. 815. Notification of Closing/Consolidating Branch Offices– RETAINED Requires the Department to consult with the House and Senate General Government Subcommittee members on the projected closing or consolidation of any Secretary of State branch offices. Executive deletes the language. House retains current law. |
|
|||
|
Sec. 817. Unlicensed Dealer Fines– RETAINED Authorizes funding collected by the Department from unlicensed dealer fines to be used to offset administrative expenses and requires funding to be transferred via the legislative transfer process in order to be available for expenditure. Executive deletes the language. House retains current law. |
|
|||
|
Sec. 818. Motorcycle Safety Education Program – RETAINED Requires funding appropriated for the Motorcycle Safety Education Grants and Administration program to be used for operation of the program, requires funding for the program to be derived from original and renewal motorcycle license endorsements, annual registration fees, and operator driving test fees, authorizes funding for grants to help subsidize safety training courses for individuals interested in operating motorcycles, and authorizes funding to be used for costs associated with administration of the program. Executive deletes the language. House retains current law. |
|
|||
|
Summary: House Passed TREASURY FY 2004-05 House Bill 5517 |
Analyst: Robin Risko
|
FY 2003-04 YTD (as of 2/12/04) |
Executive |
House Passed |
Senate |
Difference: House Passed from FY 2003-04 YTD
|
|||
|
Enacted |
Amount |
% |
|||||
|
IDG/IDT |
$12,417,600 |
$13,172,800 |
$13,172,800 |
$755,200 |
6.1 |
||
|
Federal |
44,696,100 |
34,681,800 |
34,681,800 |
(10,014,300) |
(22.4) |
||
|
Local |
910,800 |
964,300 |
964,300 |
53,500 |
5.9 |
||
|
Private |
0 |
0 |
0 |
0 |
0.0 |
||
|
Restricted |
1,579,353,900 |
1,408,383,000 |
1,408,706,100 |
(170,647,800) |
(10.8) |
||
|
GF/GP |
117,214,686 |
129,125,400 |
122,298,000 |
5,083,314 |
4.3 |
||
|
Gross |
$1,775,093,086 |
$1,586,327,300 |
$1,579,823,000 |
($174,770,086) |
(10.0) |
||
|
FTEs |
1624.0 |
1603.0 |
1,607.0 |
(17.0) |
(1.1) |
||
Overview
The Department of Treasury is the chief fiscal agency of the state and is the primary source of advice to the Governor on tax and fiscal policy issues. The Department’s mission is to collect state taxes, to invest, control, and disburse state monies, and to protect the state’s credit rating and that of its cities. In addition, the Department manages one of the nation’s largest pension funds, administers revenue sharing, and administers the student financial aid programs. Also, the Department investigates fraudulent financial activity, provides recommendations and assistance on all property tax-related issues, trains and gives advice concerning accounting, auditing, budgeting, and financial management to local units of government, advises issuers of municipal obligations, and lends funds to local units of government in fiscal distress through the Emergency Loan Board.
Major Budget Changes from FY 2003-04 YTD Appropriations: |
FY 2003-04 YTD (as of 2/12/04) |
House Passed Change |
|
|
TREASURY OPERATIONS 1. Employee-Related Economic Increases House: Includes additional funding to cover increased staff salary, insurance, and retirement costs. (Includes increases for Bureau of State Lottery and Michigan Gaming Control Board staff.) Executive: $14,971,900 Gross; $2,157,500 GF/GP |
Gross IDG Federal Local RestrictedGF/GP |
N/A |
$14,971,900 967,900 1,053,100 80,800 10,712,600 $2,157,50 |
|
2. Employee-Related Savings House: Reduces funding to partially offset the cost of employee-related economic increases. Savings are to be achieved by reducing outside contracts, promoting voluntary work schedule adjustments, and continuing a portion of the temporary wage and benefit concessions. (Includes savings for Bureau of State Lottery and Michigan Gaming Control Board staff.) Executive: ($4,649,700) Gross; ($684,200) GF/GP |
Gross IDG Federal Local RestrictedGF/GP |
N/A |
($4,649,700) (295,500) (268,600) (27,300) (3,374,100) ($684,200)
|
|
3. Other Economic Adjustments House: Reduces funding for building occupancy charges by $1.7 million Gross and workers’ compensation premiums by $17,000 Gross. (Includes reductions for Bureau of State Lottery and Michigan Gaming Control Board.) Executive: ($1,714,300) Gross; ($826,400) GF/GP |
Gross RestrictedGF/GP |
N/A |
($1,714,300) (887,900) ($826,400
|
|
4. Human Resources Optimization Project House: Reduces FTE position authorization and funding by $147,200 as a result of consolidated human resources functions. The Department of Civil Service will create a new Human Resources Call Center, which will be the central information source for employees who have human resources questions or who need personnel transactions processed, and the Department of Treasury will pay them for the services they provide, $88,600. (Includes savings for Bureau of State Lottery and Michigan Gaming Control Board.) Executive: (3.0) FTE; ($58,600) Gross; ($26,300) GF/GP |
FTE Gross RestrictedGF/GP |
0.0 $0 0 $0 |
(3.0) ($58,600) (32,300) ($26,300)
|
|
5. Transfer of MEAP/Merit Award Board House: Reflects the transfer of FTE positions and $27.3 million appropriated for Michigan Educational Assessment Program administration and the Michigan Merit Award Board from the Department of Treasury to the Department of Education, pursuant to Executive Order 2003-20. Retains6.0 FTE positions and $1.6 million that is associated with the Michigan Merit Award program. Executive: ($27,346,900) Gross |
FTE Gross Federal Restricted |
24.0 $28,927,300 10,798,800 18,128,500 |
(18.0) ($27,346,900) (10,798,800) (16,548,100) |
|
6. Revenue Recovery Initiatives House: Reflects an overall reduction in GF/GP funding that originally included in 2003 PA 237 for enhanced revenue recovery initiatives. Specifically, funding was included for industrial facility and tax increment finance audits; for the statewide cash basis audit process, managed desk audits, out-of-state vendor audits, and for standardized audit schedules and statistical sampling; for sales, use, and withholding tax reconciliation; and for levy process enhancement, field staff enforcement of collections, IRS data sharing to increase delinquent tax revenue collections, and enforcement of 2003 PA 23, which holds corporate officers of Limited Liability Corporations liable for unpaid taxes. Executive: ($1,000,000) GF/GP |
Gross Restricted GF/GP |
N/A |
($550,000) 450,000 ($1,000,000) |
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7. Reduced Funding for Travel House: Eliminates GF/GP funding for departmentwide travel. Executive: $0 |
Gross Restricted GF/GP |
$1,415,900 1,088,500 $327,400 |
($327,400) 0 ($327,400) |
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8. Audits of Detroit Water and Sewerage Department House: Includes additional funding for the Department to conduct a financial audit and a performance audit of the Detroit Water and Sewerage Department. Executive: $0 |
Gross GF/GP |
$0 $0 |
$500,000 $500,000 |
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9. Additional Auditors for MGCB House: Includes additional FTE position authorization and funding for the Michigan Gaming Control Board to hire auditors. According to a recent report by the Auditor General, the Board needs more staff in order to conduct audits of the casinos on a more regular basis. Executive: $0 |
FTE Gross Restricted |
102.0 $16,516,600 16,516,600 |
4.0 $323,100 323,100 |
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REVENUE SHARING 10. Revenue Sharing House: Concurs with Executive recommendation on dollar amounts appropriated for revenue sharing. Executive: Reduces funding for revenue sharing payments by $200.4 million. Statutory revenue sharing payments to counties will be suspended. By permanently shifting the county property tax levy forward from December to July, the initial collections will be placed into an interest earning reserve fund for each county. In lieu of six, bi-monthly statutory revenue sharing payments, each county will be authorized to withdraw an amount equal to its FY 2004 annual revenue sharing payment, adjusted for inflation. Statutory revenue sharing payments will be resumed when a county’s reserve fund falls below the amount necessary to fund the annual payment. This is not anticipated to occur before FY 2009. Also, payments-in-lieu-of-taxes received by cities, villages, and townships for land owned by the Department of Natural Resources will be shifted from the DNR to statutory revenue sharing. These payments will be made first before the remainder of the statutory revenue sharing appropriation is distributed. Executive: ($200,424,200) Restricted |
Gross Restricted |
$1,335,824,200 1,335,824,200 |
($200,424,200) (200,424,200) |
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DEBT SERVICE 11. Debt Service House: Includes an additional $22.2 million Gross and $12.2 million GF/GP for required debt service payments on the Quality of Life bond. This increase reflects a fund source shift of $10.9 million from GF/GP to state restricted Cleanup and Redevelopment Funds. Includes an additional $3.1 million Gross and GF/GP for required debt service payments on the Clean Michigan Initiative bond. Reduces funding by $100,000 Gross and GF/GP for payments on the Water Pollution Control bond. Executive: $25,164,000 Gross; $26,042,000 GF/GP |
Gross Restricted GF/GP |
$56,286,400 878,000 $55,408,400 |
$25,1654,000 10,009,300 $15,154,700 |
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GRANTS 12. Grants House: Includes an additional $5.5 million Gross for Convention Facility Development Distribution based on revenue collections; an additional $2.5 million Gross for Commercial Mobile Radio Service Payments for local 911 telephone emergency programs in local communities; an additional $1.2 million GF/GP for the Senior Citizen Cooperative Housing Tax Exemption Program; an additional $328,000 GF/GP for Renaissance Zone Reimbursement payments to be made to libraries for lost property tax revenue associated with renaissance zones; reduces $3.2 million GF/GP from the Qualified Agricultural Loan payment program based on a federal grant pay down provision included in the loan agreements; eliminates $42,700 GF/GP for reimbursement payments which were made to the City of Benton Harbor for lost property tax revenue associated with an enterprise zone, as the ten-year commitment has been completed; and maintains current-year funding levels for Grants to Counties in Lieu of Taxes, Health and Safety Fund Grants, and Special Grants to Cities. Also, House eliminates funding for grants to reimburse local units of government for conducting personal property tax assessments of businesses. Executive: $6,285,300 Gross; 8,000,000 restricted; ($1,714,700) GF/GP
|
Gross Restricted GF/GP |
$128,935,000 98,000,000 $30,935,000 |
($714,700) 8,000,000 ($8,714,700) |
Major Boilerplate Changes from FY 2003-04: |
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Sec. 901. Contingency Funds –NEW Appropriates federal, state restricted, local, and private contingency funding that can be expended only upon legislative transfer to a specific line item. Executive and House include the new language. |
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Sec. 902(3). Defaulted Student Loan Collections– DELETED Requires the Department to explore the feasibility of donated services in lieu of repayment when they are unable to collect defaulted student loans and to report on the implementation status of this section. Executive and House delete the language. |
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Sec. 907. Assessor Certification and Training Fees– MODIFIED Current-year Sec. 906 authorizes the Department to use the Assessor Certification and Training Fund to operate the Property Assessor Certification and Training program, assesses fees to be paid by participants, which are to cover expenses incurred in offering programs, and requires fees collected to be credited to the Assessor Certification and Training Fund. Executive andHouse increase examination fees from $25 to $50, initial certification fees from $35 to $50, annual renewal fees from $50 to $75 for levels 1 and 2 and from $95 to $125 for levels 3 and 4. |
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Sec. 913. Loans to Local Units of Government –DELETED Authorizes the State Treasurer to make loans to local units of government from the state's Common Cash Fund to implement local government infrastructure and private facility projects and specifies the terms of these loans. Executive and House delete the language. |
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Sec. 921. Appropriation of Tobacco Revenue – DELETED Appropriates all revenues collected pursuant to the Tobacco Products Tax Act to the Health and Safety Fund for distribution. Executiveand House deletes the language. |
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Sec. 924. Audit and Collection Procedures – RETAINED Requires the Department to publish the handbook required, pursuant to 1941 PA 122, Section 205.4(3), which informs taxpayers and tax preparers of audit and collection procedures and authorizes the Department to publish the handbook on the Internet. Executive deletes the language. House retains current law. |
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Sec. 926. Audits of Detroit Water and Sewerage Department –NEW Houseincludes new language which requires the Department of Treasury to conduct a financial audit, a performance audit, and an independent efficiency evaluation of the Detroit Water and Sewerage Department. |
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Sec. 951. Revenue Sharing Payment Condition –RETAINED Requires county treasurers to comply with section 151 of the School Aid Act in order to receive statutory revenue sharing payments and prohibits the Department from withholding revenue sharing payments to counties if local units of government fail to provide county treasurers with the information needed to comply with section 151. Executive deletes the language. House retains current law. |
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Sec. 952. Restoration of Revenue Sharing– NEW Requires appropriations for special grants to cities to be used to restore revenue sharing reductions contained in Executive Order 2003-23 to cities which had an emergency financial manager appointed to them. Executive and House include the new language. |
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Sec. 961. Lottery Promotional Efforts –RETAINED Prohibits funding from being used for promotional efforts directed towards individuals less than 18 years of age. Executivedeletes the language. House retains current law. |
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Sec. 962. Sports Figures in Lottery Advertising –RETAINED Prohibits funding from being used for associating professional or amateur athletes with the lottery or its products. Executive deletes the language. House retains current law. |
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Sec. 971. Revenue Sharing– DELETED Executive includes new language which authorizes counties to withdraw from restricted reserve funds an amount equal to their FY 2004 revenue sharing payment adjusted for inflation until there is no funding left in the restricted reserve fund, requires the rate of inflation to be the same as that specified in the General Property Tax Act, and requires the Department to annually certify to the State Budget Director the amount each county is authorized to withdraw. House does not include the new language. |