FY 2004-05 FAMILY INDEPENDENCE AGENCY BUDGET H.B. 5516 (S-1): COMMITTEE SUMMARY






House Bill 5516 (S-1 as reported)
Committee: Appropriations

FY 2003-04 Year-to-Date Gross Appropriation $3,953,401,300
Changes from FY 2003-04 Year-to-Date:
  1. Caseloads. The Senate recommends caseload and cost per case adjustments: Family Independence Program - 4,435 cases; Food Assistance Program - 99,900 cases (includes waiver for 75,000 cases); Day Care Services - 1,014 cases, 1,500 fewer cases than the Executive proposal; State Disability Assistance - 361 cases; State Supplementation for SSI - 5,900 cases; Adoption Subsidies - 446 cases; and Foster Care - 368 cases 340,350,800
2. Child Support Services. The Senate concurs with the Executive proposal of paternity testing on babies born out-of-wedlock to avoid Federal penalties. 4,530,700
3. Initiatives. The Senate recommends the following: Homeless prevention - $100,000; MiCAFE - $50,000; Earned Income Tax Credit Education - $1,000,000; Fatherhood - $200,000; Marriage - $250,000; and Abstinence Youth Education - $75,000.   1,675,000
4. Medical History Determination. The Senate includes the Executive's increased cost for Social Security disability applicants' medical histories. 1,600,000
5. Information Technology. The Senate includes the Executive's reductions: realignment of desk-top services, lower data center rate, and $12 million in the Child Support Enforcement System. Also includes a 7% reduction of $9,155,800 in Department's DIT services. (21,747,000)
6. Juvenile Justice Services. The Senate concurs in Executive's 20% contracts reduction and $1,115,200 savings for Sequoyah closure; adds $2,961,300 savings for excess property sale. (4,736,500)
7. Foster Care. The Senate concurs with the Executive to eliminate the Wayne County foster care permanency initiative. The Senate recognizes Adoption Subsidies savings of $11.3 million, adds a 4% increase of $5,968,000 for Foster Care and Adoption child placing and residential treatment facilities, $1 million for a Specialized Foster Care rate increase effective April 1, and $2,884,300 for a 4% foster care parents rate increase. (3,998,000)
8. Cash Assistance. The Senate proposes in the following TANF program adjustments: reduce Kinship Care from $2.7 million to $400,100; eliminate funds from demonstration projects, includes a Before-and After-School Competitive Program; increase the Clothing Allowance from $40 per school age child to $50 for children 4 to 18 years of age. Other adjustments: $459,700 LIHEAP grant increase, and $10 million TANF Day Care fraud savings. (4,240,600)
9. Budgetary Savings. The Senate concurs in the Executive's proposal for a 7% increase for employee-related economics, but due to pressures of reduced State revenue the recommendation reduces the increase by 5% for savings. (25,007,300)
10. Economic Adjustments. The Senate includes the Executive's 7% economic increase. 63,529,300
11. Other Changes. The Senate concurs with replacing penalty revenues with $14,063,400 GF, a Food Assistance Reinvestment Program reduction, and a net increase from the transfer of E.O. 2003-18. Three new positions for fraud detection and a 1% CSS&M reduction are included. 1,365,700
12. Comparison to Governor's Recommendation. The Senate bill is $29,676,000 Gross, $9,840,300 GF/GP under the Governor.
Total Changes $353,322,100
  FY 2004-05 Senate Appropriation Subcommittee Gross Appropriation $4,306,723,400
FY 2004-05 FAMILY INDEPENDENCE AGENCY BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2003-04 Year to Date:
  1. Hiring Freeze. The Leadership agreement language is included in the bill. (Sec. 205)
2. Contingency Funds. This language is not included in the bill. (Sec. 206)
3. Billboard Advertising. New: The language is taken from the FY 2003-04 Senate Appropriations Subcommittee substitute bill. (Sec. 275)
4. Fraud Detection. The language is revised to include 3 Inspector General positions: 1 less FTE included than in the House bill, and subsection (2) includes a private agency contract for fraud detection activities. (Sec. 303)
5. School-based Intervention Project. This language is not included in the bill. (Sec. 304)
6. Community Services Block Grant. The language is revised to include $1,000,000 in increased TANF funds for tax credit and marriage and fatherhood programs; $350,000 more than in the House bill. (Sec. 414)
7. Fatherhood Initiative. This language includes a $100,000 point of difference in the bill. (Sec. 416)
8. Marriage Initiative. This language includes a $150,000 point of difference in the bill. (Sec. 417)
9. Individual Development Accounts. The $200,000 is not included in the language. (Sec. 418)
10. Private Agencies Self-Training. This language is not included in the bill. (Sec. 421)
11. Welfare-to-Work. This language is not included in the bill. (Sec. 422)
12. Food for Elderly. New: This language requires the money to be used as State matching funds and a Center for Civil Justice contract. (Sec. 423)
13. Foster Care Goals. The MCI FTE position is not included in the bill. (Sec. 501)
14. Multi-purpose Collaborative Bodies. The expansion of funds for substantiated child abuse and neglect cases is not included in the language. (Sec. 517)
15. Standard for Prompt Payments. The language is revised to include subsection (2) for the exploration of automated systems with the intent to improve speed and accuracy in payments to nonprofit child placing facilities. (Sec. 533)
16. Foster Care Administrative Rate Increase. The language is revised to include $400 in points of difference for the 4% administrative and the specialized services rate increases for private foster care and adoption agency placements and adds $2.9 million for a 4% rate increase for Foster Care parents. (Sec. 545)
17. Task Force on Disproportionate Cultural Representation Study. New: The language requires the study of the representation of children of color in the State's child welfare and juvenile justice systems and includes a reporting requirement. (Sec. 548)
18. Earned Income Tax Credit Plan. The language is not included in the bill. (Sec. 666)
19. Child Care Rate Structure. The language is revised to include an implementation plan for a phase in of a new day care rate structure and a reporting requirement. (Sec. 675)
20. Report on Juvenile Offenders. The language is not included in the bill. (Sec. 717)
21. Family Resource Centers. The language is revised to include center implementation guidelines and a requirement to notify the legislature prior to opening centers. (Sec. 751)
22. Lead Safe Verification. The language is revised to include facility inspection and verification that lead hazard is identified and remediated. (Sec. 1003)
Date Completed: 05-24-04 Fiscal Analyst: Constance Cole Bill Analysis @ http://www.senate.michigan.gov/sfa May 26, 2004 This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hifia_cs.doc