Coordinator: Al Valenzio

Phone: 373-8080

Date:March 17, 2006

Summary of FY 2005-06 Supplemental Items

SB 242 (H-4) As Passed the House

FY 2005-06	Executive (Letters of10/28/05,11/10/05, 2/9/, &2/23/06)		Senate Passed (SB 242, S-2)		House Passed
Dept./Budget	GF/GP	Gross	GF/GP	Gross	GF/GP	Gross
Agriculture	$0	$1,349,000	$0	$0	$525,000	$1,874,000
Attorney General	0	1,027,700	0	0	0	1,027,700
Capital Outlay	0	47,309,500	0	0	100	47,309,600
Civil Rights	0	516,400	0	0	0	516,400
DCH	(2,353,200)	70,323,400	0	0	(2,353,200)	70,323,400
Corrections	0	0	100	100	100	100
Education	0	3,286,000	0	0	0	3,286,000
DEQ	0	1,477,800	0	0	100	1,577,900
HAL	631,800	631,800	0	0	631,800	631,800
DHS	34,950,600	5,496,400	0	400	34,950,600	5,496,800
DIT	0	17,512,300	0	0	0	17,512,300
Judiciary	0	150,000	0	0	0	150,000
DLEG	0	33,282,500	0	0	100	33,282,600
Legislature	500,000	500,000	708,000	708,000	858,000	858,000
DMB	0	2,966,700	0	0	50,000	3,016,700
DMVA	0	5,025,600	0	0	0	2,475,600
DNR	0	6,598,000	0	500,000	350,000	7,448,000
State Police	0	7,565,100	0	0	518,000	8,083,100
MDOT	0	27,590,100	0	0	0	3,040,200
Treasury	(550,000)	(550,000)	0	7,000,000	(13,698,886)	(6,698,886)
TOTALS	$33,179,200	$232,058,300	$708,000	$8,308,400	$21,831,714	$201,211,314

Bullet Point Summary

SB 242 FY 2006 Supplemental

§ Gross funding of $201.2 million with $72.9 million federal, $103.7 million other state restricted funds and $21.8 million from the General Fund

§ $37.3 million state restricted funds for Natural resources Trust Fund recreation development and acquisition projects

§ $32.6 million federal for a new automated unemployment claims system

§ Increase Child Protective Services staff by 51 positions

§ A DHS General Fund increase of $33.5 million to replace federal funds

§ $36.2 million federal for Medicaid match for Medicare Part D correction

§ $21.8 million Gross for the DCH Quality Assurance Assessment Program (QAAP)

§ $4.4 million federal for the Medicaid Adult Benefits Waiver

§ $3 million Title XIX funds forMichigan universities

§ $17.5 million Gross for DIT state agency cost adjustments

§ $2 million federal for military base security enhancements

§ Replace $6.6 million of General Fund monies with new federal day care funds

§ $3.3 million restricted for State Parks operations and maintenance

§ $3.1 million restricted to State Police for criminal background checks

§ $3.3 million federal to the DOE for hurricane displaced students

§ $2.9 million federal for marine safety grants

§ $2.7 million General Fund for Treasury to do utility assessments

§ $3 million federal for Safe Routes to Schools program

§ $5 million restricted for grants and loans from the Agriculture Development Fund

§ Language is included to transfer the 2006 year-end GF balance to the BSF

Budgetary Issues FY 2005-06:		Executive	Senate	House
DEPARTMENT OF AGRICULTURE
1. Americorps Federal grant allows department to hire 18 full-time AmeriCorps workers to work in communities on groundwater stewardship efforts.	Gross Federal	$250,000 250,000	$0 0	$250,000 250,000
2. Mad Cow Disease Inspections/Testing FDA grant for Ruminant Feed Ban Support Project for protection of livestock from BSE (Mad Cow Disease).	Gross Federal	$250,000 250,000	$0 0	$250,000 250,000
3. Laboratory Testing, Heavy Metals FDA grant to enhance state heavy metal and selected poison detection efforts.	Gross Federal	$293,000 293,000	$0 0	$293,000 293,000
4. Migrant Labor Housing Provides federal grant to enable department to provide grants to farmers for construction of 40 new migrant labor housing units.	Gross Federal	$145,000 145,000	$0 0	$145,000 145,000
5. Food Safety and Quality Assurance Provides federal revenue from Center for Disease Control to manage threats to state food supply. Also appropriates additional revenue from civil penalties for Food and Dairy division operations.	Gross Federal Restricted	$175,000 150,000 25,000	$0 0	$175,000 150,000 25,000
6. Greenhouse/Nursery Emergency Response Provides federal Homeland Security grant to provide education program to nurseries, greenhouses, and sod farms with the goal of improving security of agricultural chemicals inWayneCounty.	Gross Federal	$11,000 11,000	$0 0	$11,000 11,000
7. Food Safety and Quality Assurance This shifts funding in Laboratory Services from GF/GP to Weights and Measures Regulation Fees that in turn allows the Food Safety and Quality Assurance program to receive additional GF/GP support.	Gross Restricted GF/GP	$225,000 225,000 $0	$0 0 $0	$450,000 225,000 $225,000
8. Fruit and Vegetable Inspections Provide additional funds to enhance inspections.	Gross GF/GP	$0 $0	$0 $0	$300,000 $300,000
DEPARTMENT OF ATTORNEY GENERAL
1. Medicaid Fraud Control Authorizes the Department to receive additional federal grant funding from the U.S. Department of Health and Human Services for Medicaid fraud control activities.	Gross Federal	$510,700 510,700	$0 0	$510,700 510,700
2. Child Support Enforcement Authorizes the Department to receive additional federal Title IV-D grant funding through an interagency agreement with the Department of Human Services for child support enforcement activities.	Gross Federal	$450,000 450,000	$0 0	$450,000 450,000
3. Domestic Violence Prosecution Authorizes the Department to receive a federal grant award for a domestic violence prosecution program. The Department will assist local prosecutors with misdemeanor and felony domestic violence/homicide prevention cases to promote safety, justice, and stability for domestic violence victims and their children, to hold batterers accountable for the violence, and to stop and prevent future violence.	Gross Federal	$67,000 67,000	$0 0	$67,000 67,000
CAPITAL OUTLAY
1. Michigan Natural Resources Trust Fund Projects Provides appropriation of MNRTF monies for 22 land acquisition and 30 development projects consistent with MNRTF Board recommendations. The 22 grants for land acquisitions range from $45,700 to $5,000,000 with 10 being for state projects and 12 for local. Of the 30 grants for development, 4 are for state projects and 26 for locals with the range being $48,800 to $500,000. All local projects will be matched. (Please see Attachment A for list of projects)	Gross Restricted	$37,339,500 37,339,500	$0 0	$37,339,500 37,339,500
2. Natural Resources, State Boating Access Sites Provides U. S. Coast Guard funds for dredging and paving projects.	Gross Federal	$1,470,000 1,470,000	$0 0	$1,470,000 1,470,000
3. Schoolcraft College Project Construction Authorization This State Building Authority project was authorized for planning under PA 10 of 2005 as the Technical Services Facility Project. Planning documents have been approved by both the DMB and JCOS. The authorized project cost is $12,700,000 ($5,019,900 state/$7,680,100 college). It entails the construction of a new 48,500 sq. ft. building that will contain 17 classrooms, 4 labs and associated preparation and storage rooms.	Gross GF/GP	$0 $0	$0 $0	$100 $100
4. Infrastructure Improvements, State Projects Lump-sum contingency account for emergency repairs, preventive maintenance, and utility upgrades at state harbors and docks. Funds will also support engineering work.	Gross Restricted	$2,500,000 2,500,000	$0 0	$2,500,000 2,500,000
5. Infrastructure Improvements, local Projects Same as item 4, but for locally owned harbors and docks.	Gross Restricted	$1,500,000 1,500,000	$0 0	$1,500,000 1,500,000
6. Boating Program, Land Acquisition Provides a lump-sum contingency account to purchase lands as they become available to provide greater boating opportunities.	Gross Restricted	$1,000,000 1,000,000	$0 0	$1,000,000 1,000,000
7. Deer Range Habitat Acquisition Provides a lump-sum contingency account to purchase winter deeryard lands as they become available to provide greater deer hunting opportunities. The Deer Range Improvement Fund is the financing source.	Gross Restricted	$3,500,000 3,500,000	$0 0	$3,500,000 3,500,000
DEPARTMENT OF CIVIL RIGHTS
1. Receipt of Federal Funds Authorizes the Department to receive additional federal grant funding made available from the Equal Employment Opportunity Commission ($374,800) and the United States Department of Housing and Urban Development ($141,600).	Gross Federal	$516,400 516,400	$0 0	$516,400 516,400
DEPARTMENT OF COMMUNITY HEALTH
1. Quality Assurance Assessment Program (QAAP) Revenue Increase Increases restricted QAAP revenue authorization due to a recalculation of the FY 2006 base ($6.4 million) and a technical correction to the FY 2006 budget development ($3.0 million) in the Long-Term Care Services appropriation line. Matching federal Medicaid authorization is requested in the amount of $12.4 million.	Gross Federal Restricted	$21,836,500 12,357,300 9,479,200	$0 0 0	$21,836,500 12,357,300 9,479,200
2. Health Plan Services Line Technical Correction Corrects a fund sourcing error made during the FY 2006 budget development. Federal authorization is replaced with a like amount of QAAP restricted revenue.	Gross Federal Restricted	$0 (11,000,000) 11,000,000	$0 0 0	$0 (11,000,000) 11,000,000
3. GF/GP Transfer to the Department of Human Services Reduces the Health Plan Services line by $2.3 million GF/GP. The original DHS budget included an IDG to draw upon DCH funding to implement projects to reduce Medicaid eligibility error rates and to implement a new asset test for caretaker relatives. This action would transfer these funds directly within the DHS budget for FY 2006.	Gross GF/GP	($2,353,200) ($2,353,200)	$0 0	($2,353,200) ($2,353,200)
4. Medicare Part D Correction Transfers $27.8 million GF/GP from the Federal Medicare Pharmaceutical Program (FMPP) line to the Pharmacy Services lines, requiring an additional $36.2 million federal Title XIX match authorization due to the transfer. During the FY 2005-06 DCH budget development the number of Medicaid eligibles that were determined to fall under the Medicare Part D program was over estimated. Therefore the FMPP line was over funded and the Pharmacy Services line was under funded. This action would properly align expected revenue with expenditures.	Gross Federal	$36,217,600 36,217,600	$0 0	$36,217,600 36,217,600
5. Medicaid Adult Benefits Waiver Authorization to support the projected expenditures for the adult benefits waiver program. The program's current funding level is $95.7 million Gross ($17.5 million GF/GP) and provides health care coverage for caretaker relatives and other non-disabled adults who qualify for Medicaid.	Gross Federal	$4,394,700 4,394,700	$0 0	$4,394,700 4,394,700
6. Title XIX Funds forMichiganUniversities and Colleges Increases federal Title XIX (Medicaid) contractual funding toMichigan universities and colleges, primarilyMichiganStateUniversity and theUniversity ofMichigan, for Medicaid program evaluation and outreach efforts to improve health care access. The projected FY 2005-06 contracts total approximately $12.2 million federal with the universities and colleges providing the match.	Gross Federal	$3,000,000 3,000,000	$0 0	$3,000,000 3,000,000
7. Women, Infants, and Children Food and Nutrition Programs WIC Administration and Special Projects line item is increased by $609,000 Gross including $58,000 private revenues to support the Farmers' Market Nutrition Program, Project FRESH, for WIC participants, and $551,000 additional federal grant funds for administration, breastfeeding peer counseling, nutrition services, information systems upgrade and nutrition surveillance. The WIC Local Agreements and Food Costs line item is increased by $1,450,000 reflecting an increase in federal funding for food and local administration, based on projected expenditures and federal grant funds available.	Gross Federal Private	$2,059,000 2,001,000 58,000	$0 0	$2,059,000 2,001,000 58,000
8. Pandemic Influenza Preparedness New federal grant for state and local response planning, exercises, and preparation in anticipation of a possible pandemic flu event. This is the state's initial allocation. The remaining 71% of the federal appropriation will be allocated to states later this year. The funds will be awarded as a component of the federal Public Health Preparedness and Response for Bioterrorism grant.	Gross Federal	$2,951,800 2,951,800	$0 0	$2,951,800 2,951,800
9. AIDS Drug Assistance Program Recognizes private funds over the original budget from pharmaceutical manufacturers for rebates on AIDS and HIV medications used in the AIDS Drug Assistance Program (ADAP).	Gross Private	$1,000,000 1,000,000	$0 0	$1,000,000 1,000,000
10. Children with Serious Emotional Disturbances Funding implements a federally approved waiver that expands Medicaid coverage to 43 children with serious emotional disturbances and/or chronically mentally ill. The children's mental health services are to be provided in the community rather than an institutional setting. Five CMHSPs will provide the GF/GP match for the Medicaid funds.	Gross Federal	$570,000 570,000	$0 0	$570,000 570,000
11. Newborn Screening Laboratory Services Recognizes newborn screening test fee revenue available from current fees needed for laboratory services line item expenditures. Expenditures of newborn screening test fees for related services in other line items are below the authorization levels.	Gross Restricted	$300,000 300,000	$0 0	$300,000 300,000
12. Healthy Homes for Children with Asthmatic Symptoms Recognizes a new 3-year federal HUD Healthy Homes Demonstration grant, to install products and reduce hazards in the home environment of children with asthmatic symptoms in low-income families inInghamCounty. This demonstration program will be run through the lead abatement program which may already be working with many of the eligible families.	Gross Federal	$300,000 300,000	$0 0	$300,000 300,000
13. Epidemiology Projects Recognizes continuation grant funding from the March of Dimes for a project to increase consumption of folic acid supplements to reduce birth defects, and a grant balance from the Saginaw Bay Watershed Initiative Network to complete a project related to toxicity of fish and wildlife caught and consumed locally.	Gross Private	$47,000 47,000	$0 0	$47,000 47,000
DEPARTMENT OF CORRECTIONS
1. Baldwin Prison Associated boilerplate directs department to first utilize beds at the Youth Correctional Facility rather than expand any other existing prison.	Gross GF/GP	$0 $0	$100 $100	$100 $100
2. Prisoner Reintegration Program Transfers $4.0 million GF/GP authorization from the $17.8 million Supplementary Operational Expenditures line item to the $12.9 million Prisoner Reintegration Programs line. In Supplementary Operational Expenditures, the $4.0 million constitutes that line's funding for "jail capacity grants," to help counties with problems of jail crowding. Transfer to the Prisoner Reintegration Programs line would support expansion of community pilot sites under the Michigan Community Re-Entry Initiative (MPRI). Associated boilerplate would repeal language that specifies the various uses of the Supplementary Operational Expenditures line, and enact language to provide for designation and approval of work projects from prisoner reintegration funds, thus enabling funding to be carried forward and expended in succeeding fiscal years. Housesubstitute does not include this.	Gross	$0	$0	$0
DEPARTMENT OF EDUCATION
1. Receipt of Federal Funds This appropriates FederalEmergency Impact Aid for Displaced Students grants. The grants would reimburse the State for the administrative and education costs for students who were displaced by Hurricanes Katrina and Rita during FY 2005-06. The Federal grants will reimburse both public and non-public schools at a rate of $6,000 per student or $7,500 per student with disabilities. According to the Department of Education,Michigan schools initially have reported enrolling a total of almost 750 such students. The funds must be spent byJune 30, 2006.	Gross Federal	$3,286,000 3,286,000	$0 0	$3,286,000 3,286,000
DEPARTMENT OF ENVIRONMENTAL QUALITY
1. Nonstormwater Program Appropriation is related to boilerplate that prohibits DEQ from implementing standards that are more stringent than federal standards.	Gross GF/GP	$0 $0	$0 0	$100 $100
2. Multi-State Hazardous Waste Tracking Tool Federal grant funds would be used to establish a data base and exchange program to share hazardous waste manifest information with other states.	Gross Federal	$741,200 741,200	$0 0	$741,200 741,200
3. Multi-State Homeland Security System A homeland security grant would allow states to share environmental, health and safety information with federal agencies in the event of a security threat.	Gross Federal	$691,600 691,600	$0 0	$691,600 691,600
4. Office of TheGreat Lakes Second year of a two-year grant to study and make recommendations for the treatment and control of releases of ballast water from ships operating on theGreat Lakes.	Gross Federal Restricted	$45,000 22,500 22,500	$0 0 0	$45,000 22,500 22,500
5. Site Assessment, Little Black Creek Represents the state's match to federal funding for a study of the Little Black Creek watershed.	Gross Restricted	$0 0	$0 0	$100,000 100,000
DEPARTMENT OF HISTORY, ARTS, AND LIBRARIES
1. Arts Grants Partial restoration of discretionary grant funding reduction. House substitute directs all additional funds for Arts Grants.	Gross GF/GP	$315,900 $315,900	$0 $0	$631,800 $631,800
2. State Aid to Libraries Partial restoration of per capita funding reduction.	Gross GF/GP	$315,900 $315,900	$0 0	$0 0
DEPARTMENT OF HUMAN SERVICES
1. Field Staff, Salaries and Wages Increased appropriation for local office staff to cover the cost of a special project to reduce Medicaid error rates. The project would operate in the State's most populous counties and would cover 70% of the current Medicaid caseload. The goal would be to identify and correct agency errors in Medicaid eligibility determinations. The DHS estimates the project will save the State $23.3 million ($10.2 million in GF/GP costs). In addition, the proposal replaces the IDG funding included in the FY 2006 budget related to the implementation of a Medicaid caretaker relative asset test with a direct GF/GP appropriation. The asset test funding would be used to finance the additional ongoing eligibility determination work that would be necessary on new applications as well as the costs of making a one-time determination for existing cases. The new asset test for caretaker relatives is expected to save $10.9 million ($4.7 million GF/GP). The State Budget Office is now recommending that GF/GP revenue be directly appropriated in the Department of Human Services budget rather than funding these costs as originally proposed using an interdepartmental grant from the Department of Community Health.	FTE Gross IDG Federal GF/GP	32.0 $1,402,000 (910,400) 700,900 $1,611,500	0.0 $0 0 0 $0	32.0 $1,402,000 (910,400) 700,900 $1,611,500
2. Payroll Taxes and Fringe Benefits Covers non-salary payroll costs related to a Medicaid error rate reduction project and replaces an existing IDG appropriation to finance the implementation of a caretaker relative asset test with a direct GF/GP appropriation. Additional information on these two projects is included in item 1.	Gross IDG Federal GF/GP	$602,800 (391,400) 301,400 $692,800	$0 0 0 $0	$602,800 (391,400) 301,400 $692,800
3. Fund Shift in FamilyIndependence Program Replaces $20.0 million of TANF appropriations with GF/GP for the FIP program. New GF/GP would help the State overcome an anticipated TANF shortfall for FY 2006.	Gross Federal GF/GP	$0 (20,000,000) $20,000,000	$0 0 $0	$0 (20,000,000) $20,000,000
4. Fund Shift: Replace SSBG with GF/GP Replaces $15.3 million in federal appropriations from the Title XX Social Services Block Grant with GF/GP for the FIP program. Budget action would help offset an expected shortfall in SSBG revenue relative to claimable expenditures. SSBG revenue primarily supports local office social services staff costs.	Gross Federal GF/GP	$0 (15,300,000) $15,300,000	$0 0 $0	$0 (15,300,000) $15,300,000
5. Federal Day Care Adjustments Replaces $6.6 million in GF/GP funding with new federal day care funding that will be available toMichigan as a result of recently enacted federal budget reconciliation legislation. Also, includes increase of $1.9 million in federal appropriations to cover federal funds earmarked for consultation services provided through DCH.	Gross Federal GF/GP	$1,937,000 8,537,000 ($6,600,000)	$0 0 $0	$1,937,000 8,537,000 ($6,600,000)
6. Local Office Staffing – Child Protective Services Workers Increases funding for Child Protective Services workers by $614,300. New funding will support 50% of the costs of 51 additional Child Protective Services workers, a 7% increase over existing staff levels in this area. Remaining costs will be met through future transfers from existing appropriations.	FTE Gross Federal GF/GP	51.2 $614,300 114,300 $500,000	0.0 $0 0 $0	51.2 $614,300 114,300 $500,000
7. Child Support Enforcement - Bench Warrant Revenue Increases authorization to allow the department to receive and expend new court-collected fee revenue. 2004 PA 205 revised the fees collected by courts related to child custody, parenting time and support cases. From each fee paid under the act, $10 is deposited into a state Child Support Bench Warrant Enforcement Fund. Proceeds are used to support contracts with local law enforcement agencies engaged in enforcing child support bench warrants.	Gross Restricted	$600,000 600,000	$0 0	$600,000 600,000
8. Children's Trust Fund (CTF) Adjustments Increases authority by $210,100 for CTF grants and by $87,600 for CTF administration. New funding reflects an increase in the federal grant award for the program. A portion of the administrative cost increase reflects unanticipated spending to cover one-time leave payouts due to the retirement of the CTF program director.	Gross Federal Restricted	$297,700 271,900 25,800	$0 0 0	$297,700 271,900 25,800
9. Outstationed Eligibility Workers Includes transfers of appropriations between line items to recognize funding for outstationed eligibility workers. The Executive Budget recommendation for FY 2006 rolled up funding for these workers into the Local Office – Field Staff, Salaries and Wages line item. However, some of these costs should have been allocated to separate line items for CSS&M, Travel and Payroll Taxes and Fringe Benefits. Proposed adjustments are summarized below: Adjustment Field Staff, Salaries and Wages (2,737,900) CSS&M 511,500 Travel 83,300 Payroll Taxes and Fringe Benefits 2,142,600	Gross	$0	$0	$0
10. Travel Covers travel-related costs incurred within a Medicaid error rate reduction project and replaces an existing IDG appropriation to finance the implementation of a caretaker relative asset test with a direct GF/GP appropriation. Additional information on these two projects is included in item 1.	Gross IDG Federal GF/GP	$22,200 (14,400) 11,100 $25,500	$0 0 0 $0	$22,200 (14,400) 11,100 $25,500
11. Local Office Staff and Operations – Contractual Services, Supplies and Materials Covers CSS&M costs related to a Medicaid error rate reduction project and replaces an existing IDG appropriation to finance the implementation of a caretaker relative asset test with a direct GF/GP appropriation. Additional information on these two projects is included in item 1.	Gross IDG Federal GF/GP	$20,400 (13,200) 10,200 $23,400	$0 0 0 $0	$20,400 (13,200) 10,200 $23,400
12. Barry County Domestic Violence Services Appropriation is related to boilerplate which allocates federal funds toBarryCounty to support domestic violence programming.	Gross Federal	$0 0	$100 100	$100 100
13. Pilot Indigent Burial Program Appropriation is related to boilerplate allowing the DHS to establish a pilot program for indigent burials.	Gross Federal	$0 0	$100 100	$100 100
14. Out-of-State Child Placement Appropriation is related to revised boilerplate which limits the placement of foster children in out-of-state facilities.	Gross Federal	$0 0	$100 100	$100 100
15. Child Support Incentive Payments Appropriation is related to revised boilerplate providing guidelines for the use of federal child support incentive payment funding.	Gross Federal	$0 0	$100 100	$100 100
16. Information Technology Funding shift from federal to GF/GP.	Gross Federal GF/GP	$0 (3,397,400) $3,397,400	$0 0 $0	$0 (3,397,400) $3,397,400
DEPARTMENT OF INFORMATION TECHNOLOGY
1. FY 2006 Base Adjustments Aligns FY 2006 spending authorization in the Department of Information Technology with appropriations in various enacted agency budgets. Also, aligns spending authorization with information technology-related supplementals recommended for the Departments of Management and Budget and State Police.	Gross IDG	$17,512,300 17,512,300	$0 0	$17,512,300 17,512,300
JUDICIARY
1. Court of Appeals Funding Recognizes additional revenue anticipated from Court of Appeals filing and motion fees. Funding would help the Court to continue its efforts to reduce delays.	Gross Restricted	$150,000 150,000	$0 0	$150,000 150,000
DEPARTMENT OF LABOR AND ECONOMIC GROWTH
1. Public Service Commission, Create Task Force Appropriation related to boilerplate that creates a public/private task force to study the creation of a coordinated state telephone assistance program.	Gross GF/GP	$0 $0	$0 $0	$100 $100
2. Public Service Commission, Private Wastewater Regulation Public utility assessments totaling $122,500 provide funding for these new laws, which include hiring an additional 2.0 FTEs for the Public Service Commission. In addition, $10,000 of private funds is requested to draw down Federal funds to support the Midwest Combined Heat & Power regional technical assistance project.	FTE Gross Private Restricted	2.0 $132,500 10,000 122,500	0.0 $0 0 0	2.0 $132,500 10,000 122,500
3. OFIS, Pay Day Lending Funding from new fees on payday lending establishments is requested to hire 4.0 FTEs for the Office of Financial and Insurance Services (OFIS), and development a statewide database to ensure compliance with provisions of the law.	FTE Gross Restricted	4.0 $550,000 550,000	0.0 $0 0	4.0 $550,000 550,000
4. Reed Act Funding, IT System Funding from existing Federal Social Security Administration Reed Act funds is requested to partially fund a $65.0 million Internet-Based unemployment claim system to replace the current antiquated system. The current system requires over $10.0 million per year to maintain system reliability.	Gross Federal	$32,600,000 32,600,000	$0 0	$32,600,000 32,600,000
LEGISLATURE
1. Legislative Council, Special Study Authorizes the Council to hire a private firm to evaluate the management, efficiency, and effectiveness of the state's prison system.	Gross GF/GP	$0 $0	$500,000 $500,000	$500,000 $500,000
2. Legislative Council, Redistricting Project Provides funding for the Legislative Council to contract for the establishment of a database for the redistricting project.	Gross GF/GP	$500,000 $500,000	$208,000 $208,000	$208,000 $208,000
3. National Association Dues	Gross GF/GP	$0 $0	$0 $0	$150,000 $150,000
DEPARTMENT OF MANAGEMENT & BUDGET
1. Vision ORS Operational Costs Provides funding to cover ongoing operational costs of the Vision ORS project as components of the system are transitioned from the development phase into production. The Vision ORS project is designed to replace outdated technology and manual systems in order to provide more timely and accurate services to retirees.	Gross Restricted	$2,000,000 2,000,000	$0 0	$2,000,000 2,000,000
2. Michigan State Fair - Operations Provides funding needed to support ongoing operational costs of the State Fair.	Gross Restricted	$587,400 587,400	$0 0	$587,400 587,400
3. Michigan State Fair - Depreciation and Compensated Absences Adjusts for fixed asset depreciation ($332,000) and compensated absences ($35,000) as a result of a change in requirements for budgeting and accounting. Prior to being a Type I agency within DMB, the State Fair was an office within the Department of Agriculture. The recording of depreciation on fixed assets and the cost of compensated absences against the appropriation each year is now required by generally accepted accounting principles for proprietary funds.	Gross Restricted	$367,000 367,000	$0 0	$367,000 367,000
4. Michigan State Fair - Unclassified Positions Provides funding to cover the cost of an increase in the Fair manager's salary. The Michigan Exposition and Fairgrounds Authority is responsible for setting the manager's salary, pursuant to PA 468 of 2004, and granted an increase effectiveSeptember 19, 2005.	Gross Restricted	$12,300 12,300	$0 0	$12,300 12,300
5. Grant Provides grant funding for the Italian American Cultural Center of Macomb County.	Gross GF/GP	$0 $0	$0 $0	$50,000 $50,000
DEPARTMENT OF MILITARY & VETERANS AFFAIRS
1. Military Training Sites and Support Facilities Provides available federal revenue for security guards to guard the airstrips at theBattle Creek and Selfridge Air National Guard bases.	Gross Federal	$4,600,000 4,600,000	$0 0	$2,050,000 2,050,000
2. Grand Rapids/Jacobetti Veterans Homes Provides state restricted authorization for additional programming for veterans at the Grand Rapids and D.J. Jacobetti veterans' homes. The Military Family Relief Act, PA 363 of 2004, requires that twenty percent of the Military Family Relief Fund collected be appropriated to the post and posthumous fund of theMichigan veterans' homes.	Gross Restricted	$219,000 219,000	$0 0	$219,000 219,000
3. Starbase Program Provides available federal revenue for the Parametric Technology Corp. contract to provide curriculum and training for the Starbase program.	Gross Federal	$206,600 206,600	$0 0	$206,600 206,600
DEPARTMENT OF NATURAL RESOURCES
1. Water Withdrawal Assessment Tool Tie-bars the appropriation for the $500,000 water withdrawal assessment tool to passage of Senate Bills 850 and 851 (water withdrawal regulatory bills currently in the Senate creating the groundwater conservation advisory council).	Gross Restricted	$0 0	$500,000 500,000	$500,000 500,000
2. State Parks Camping fee revenue would be available for park operations and maintenance. These fee increases were approved by the Natural Resources Commission in 2005.	Gross Restricted	$3,325,000 3,325,000	$0 0	$3,325,000 3,325,000
3. Law Enforcement, Equipment Federal US Coast Guard grant funds are provided for inland lakes andGreat Lakes enforcement program equipment (in-car computers and boats).	Gross Federal	$1,470,000 1,470,000	$0 0	$1,470,000 1,470,000
4. Marine Safety Grants to Locals Federal US Coast Guard grant funding is available for county sheriffs. Funds are available for lake safety and watercraft enforcement activities on inland lakes.	Gross Federal	$1,470,000 1,470,000	$0 0	$1,470,000 1,470,000
5. Education and Outreach Outreach programs would be offered to encourage youth to hunt and fish.	Gross Restricted	$250,000 250,000	$0 0	$250,000 250,000
6. Repair ofStateShootingRanges ThePontiac Lake and Ortonville shooting ranges would be enhanced and repaired.	Gross Restricted	$83,000 83,000	$0 0	$83,000 83,000
7. Payments in Lieu of Taxes House substitute fully funds the FY 2006 payments.	Gross GF/GP	$0 $0	$0 $0	$350,000 $350,000
DEPARTMENT OF STATE POLICE
1. Criminal Justice Information Center Provides state restricted authorization to support and increase the number of criminal background checks and fingerprints required from employees of school districts and child care organizations per PA 130 of 2005 and PA 133 of 2005. The additional revenue will be used to upgrade the Automated Fingerprint Identification System (AFIS) to handle increased workloads. Also provides state restricted authorization for a new online purchasing system that allows individuals involved in automobile crashes or insurance companies to purchase crash reports via the internet. Housesubstitute includes additional funding for locating sex offenders who are in violation of the registration act.	Gross Restricted GF/GP	$3,080,000 3,080,000 $0	$0 0 $0	$3,580,000 3,080,000 $500,000
2. DNA Analysis and Lab Operations Provides federal grant revenue to cover overtime costs to reduce DNA casework backlog and state restricted authorization to recover personnel overtime costs for bomb squad services incurred while assisting the Bureau of Alcohol, Tobacco and Firearms (ATF) in joint law enforcement operations in the state.	Gross Federal Restricted	$1,110,900 1,050,900 60,000	$0 0 0	$1,110,900 1,050,900 60,000
3. Auto Theft Prevention Grants to Locals Provides available Auto Theft Prevention Fund resources for the distribution of grants to local law enforcement officers, prosecutors, and support personnel approved by the Auto Theft Prevention Authority board of directors in November 2005.	Gross Restricted	$2,150,400 2,150,400	$0 0	$2,150,400 2,150,400
4. Public Safety Communications System Provides authorization to allow the department to receive local subscriber fees for the Michigan Public Safety Communication System (MPSCS). Pursuant to boilerplate Section 577(3) of PA 146 of 2005, local subscriber fees are to be expended on support and maintenance of the MPSCS. A corresponding adjustment to the interdepartmental grant from the Department of State Police within the Department of Information Technology is also included.	Gross Local	$1,000,000 1,000,000	$0 0	$1,000,000 1,000,000
5. Michigan Amber Alert Plan Provides anticipated private donations for administering and to provide training for the Michigan Amber Alert Plan.	Gross Private	$31,800 31,800	$0 0	$31,800 31,800
6. Youth Leadership Academy Provides anticipated private donations to support the Michigan Youth Leadership Academy (MYLA), which is a one week in-residence program at theMichiganStatePoliceTrainingAcademy for at-risk youths between the ages of 14 and 16.	Gross Private	$32,000 32,000	$0 0	$32,000 32,000
7. Highway Safety Public Information Provides federal grant revenue for the distribution of public information materials regarding highway safety. The grant start date wasOctober 1, 2005 and is expected to be ongoing, with renewal each fiscal year.	Gross Federal	$160,000 160,000	$0 0	$160,000 160,000
8. Grant for Warning Siren Provides grant funding to replace an early warning siren system.	Gross GF/GP	$0 $0	$0 $0	$18,000 18,000




DEPARTMENT OF TRANSPORTATION
1. Economic Development and Enhancement (Business Support) This line supports the department's Office of Economic Development and Enhancement, which administers the Transportation Economic Development and Enhancement programs. The Governor's original FY 2005-06 budget proposal had included $181,800 in additional State Trunkline Fund (STF) support to offset federal funds which had formerly supported part of program administration costs. The enacted budget did not include the proposed increase. The Governor's supplemental request would use Michigan Transportation Fund (MTF) revenue, transferred from the Planning services/Local studies line, to provide the increase. Of the $181,800 requested, $174,700 would be appropriated for salaries and fringe benefits, $1,800 for travel, and $5,300 for other operational expenses.	Gross Restricted	$181,800 181,800	$0 0	$0 0
2. Information Technology The enacted budget was $2.0 million less than the Governor's original recommendation for this line. The proposed supplemental would provide STF funding from the State trunkline federal aid and road and bridge construction line.	Gross Restricted	$2,000,000 2,000,000	$0 0	$0 0
3. Specialized Planning Services and Local Studies Proposed supplemental would fund the $181,800 increase to Economic Development and Enhancement line (as shown above) by moving MTF revenue from this line, and would fund $200,000 increase to Passenger Transportation Services line (as shown below) by moving Comprehensive Transportation Fund (CTF) revenue from in this line.	Gross Restricted	($381,800) (381,800)	$0 0	$0 0
4. State Trunkline Federal Aid and Road and Bridge Construction In signing Enrolled Senate Bill 281, the Governor vetoed 20 boilerplate appropriations for specific state trunkline road projects. The proposed supplemental would restore all but $2.0 million of the spending authority which was lost as a result of the vetoes; $2.0 million (STF) is used to fund the increase to Information Technology shown above.	Gross Federal Restricted	$20,862,500 10,016,000 10,846,500	$0 0 0	$0 0 0
5. County Road Commissions The proposed supplemental would restore spending authority which was lost as a result of the Governor's veto of Section 624 from the enrolled bill. Section 624 directed the department to address structural problems on the M-25 bridge inHumeTownship.	Gross Restricted	$200,000 200,000	$0 0	$0 0
6. Transportation Economic Development Fund – Target Industries/Economic Redevelopment The Transportation Economic Development Fund was created in 1987 by 1987 PA 231 (MCL 247.901) to assist funding highway, road, and street improvements in direct support of economic growth. Funds are distributed to five category programs based on statutory formula. Funding provided in the enacted budget was less than the amount authorized under PA 231. The proposed supplemental would reflect the statutory distribution.	Gross Restricted	$1,037,400 $1,037,400	$0 0	$0 0
7. Public Transportation and Freight Services – Passenger Transportation Services The enacted budget was $895,000, and 8.0 FTE positions, less than the original Executive recommendation for this line. The proposed supplemental would provide $200,000 in additional CTF funding (from Specialized Planning Services and Local Studies, shown above), and $695,000 in federal revenue from Service Initiatives line (as shown below).	FTEs Gross Federal Restricted	8.0 $895,000 695,000 200,000	0.0 $0 0 0	0.0 $0 0 0
8. Rail Passenger Service/Passenger Rail Service In the prior fiscal year, the state had contracted with AMTRAK to provide rail passenger service betweenPort Huron andChicago, and betweenGrand Rapids andChicago, for a cost of $7.1 million. The enacted budget included $7.2 million in state-restricted (CTF) funding for this line. However associated boilerplate section 711 limited the amount of state operating subsidy for rail service to $6.1 million. The budget act authorized an additional $1.0 million only if AMTRAK relocated certain maintenance facilities toMichigan. The Governor's proposed supplemental would repeal the language of Section 711, and would replace it with new boilerplate limiting the state operating subsidy to $7.1 million. The proposed supplemental would also change the name of the line item from "Rail passenger service" to "Passenger rail service."	Gross	$0	$0	$0
9. Freight Preservation and Development The proposed supplemental would restore spending authority lost as a result of the Governor's veto of sections 728 and 738 from the enrolled bill. Section 728 was a project earmark related to the Lakestate Railroad; Section 738 earmarked funds for a rail project on state-owned rail line betweenOwosso and Chesaning.	Gross Restricted	$450,000 450,000	$0 0	$0 0
10. Service Initiatives Proposed supplemental would transfer spending authority from this line to Passenger Transportation Services line, as shown above.	Gross Federal	($695,000) (695,000)	$0 0	$0 0
11. Safe Routes to School Program Transfers $3.0 million (federal) from the State trunkline federal aid and road and bridge construction line to support a new federally-mandated program Safe routes to schools., established in SAFETEA-LU — the reauthorization of the federal-aid highway program. Federal share of program costs is 100% — no state or local match required. Under federal guidelines, funds may be used for planning, design and construction of projects to improve the ability of students to walk or bike to school, e.g., traffic calming, sidewalk improvements. Funds may also be used for public awareness campaigns to encourage biking and walking to school. Local, regional, and non-profit agencies, in addition to the state, may be eligible for grants. Includes funding for FTE position of program coordinator.	FTEs Gross Federal	1.0 $3,040,200 3,040,200	0.0 $0 0	1.0 $3,040,200 3,040,200
DEPARTMENT OF TREASURY
1. Tobacco Securitization Economic Development This is for a private drug research institute that has received a specific federal appropriation prior to 2005 for the creation of a good manufacturing facility.	Gross Restricted	$0 0	$1,000,000 1,000,000	$1,000,000 1,000,000
2. Agricultural Development Fund Provides specialty crop grants and loans pursuant to statute.	Gross Restricted	$0 0	$5,000,000 5,000,000	$5,000,000 5,000,000
3. Life Science Technology This is appropriated from the 21^st Century Jobs Fund pursuant to statute and will be used to implement a program for early drug discoveries by the Core Technology Alliance.	Gross Restricted	$0 0	$0 $0	$1,000,000 1,000,000
4. Huron-Clinton Metroparks Authority House recommends funding to restore inventory reimbursement payments.	Gross GF/GP	$0 $0	$0 $0	$558,000 $558,000
5. Telephone/Telegraph Assessments Funds a new program of annual assessment of telephone and telegraph companies' real property. PA 610 of 2002 requires these properties to be taxed based on individual value beginning this year. $2 million of this appropriation would fund the estimated cost of inspecting, appraising, and assessing over 1,000 land parcels. In FY 2005, the revenue generated by taxing these companies' real property was $97 million. In FY 2006 under the new valuation method, the revenue is estimated to be $81 million. These revenues are deposited into the general fund.	FTEs Gross GF/GP	15.0 $2,700,000 2,700,000	0.0 $0 0	15.0 $2,700,000 2,700,000
6. SBA Rent Adjustments Reduces funding for rent obligations for previously constructed capital outlay projects. Recent refunding of the State Building Authority's portfolio has helped lower rent obligations. The rent payments for state agencies are reduced by $16 million. The Department of Corrections' rent is lowered by $1.1 million. Rent payments for Universities are lowered by $2 million.	Gross GF/GP	($4,100,000) ($4,100,000)	$0 $0	($19,100,000) ($19,100,000)
7. Agricultural Loan Program Appropriates additional GF/GP funding to pay for the Qualified Agricultural Loan Program's scheduled payment requirements. Established by PA 16 of 2002 in response to the 2001 drought, the program pays the interest on zero-interest agricultural loans to affected farmers and is projected to end in 2007.	Gross GF/GP	$750,000 $750,000	$0 $0	$750,000 $750,000
8. 401(k) Expert Assistance Appropriates funds to oversee the implementation of a 401 (k) plan for small businesses. This is a one-time appropriation to fund the start up costs of this new program.	Gross GF/GP	$100,000 $100,000	$0 $0	$0 $0
9. Special Census Revenue Sharing Housesubstitute provides additional funding for special censuses completed forGrandBlancTownship,SaugatuckTownship, andRockford.	Gross GF/GP	$0 $0	$0 $0	$393,114 $393,114
10. Economic Development Housesubstitute provides job training grants to M-TEC centers for retraining workers who become unemployed because of the permanent closure of a business.	Gross GF/GP	$0 $0	$0 $0	$1,000,000 $1,000,000

Budgetary Issues FY 2005-06:

Executive

Senate

House

DEPARTMENT OF AGRICULTURE

1. Americorps

Federal grant allows department to hire 18 full-time AmeriCorps workers to work in communities on groundwater stewardship efforts.

Gross

Federal

$250,000

250,000

$250,000

250,000

2. Mad Cow Disease Inspections/Testing

FDA grant for Ruminant Feed Ban Support Project for protection of livestock from BSE (Mad Cow Disease).

Gross

Federal

$250,000

250,000

$250,000

250,000

3. Laboratory Testing, Heavy Metals

FDA grant to enhance state heavy metal and selected poison detection efforts.

Gross

Federal

$293,000

293,000

$293,000

293,000

4. Migrant Labor Housing

Provides federal grant to enable department to provide grants to farmers for construction of 40 new migrant labor housing units.

Gross

Federal

$145,000

145,000

$145,000

145,000

5. Food Safety and Quality Assurance

Provides federal revenue from Center for Disease Control to manage threats to state food supply. Also appropriates additional revenue from civil penalties for Food and Dairy division operations.

Gross

Federal

Restricted

$175,000

150,000

25,000

$175,000

150,000

25,000

6. Greenhouse/Nursery Emergency Response

Provides federal Homeland Security grant to provide education program to nurseries, greenhouses, and sod farms with the goal of improving security of agricultural chemicals inWayneCounty.

Gross

Federal

$11,000

11,000

$11,000

11,000

7. Food Safety and Quality Assurance

This shifts funding in Laboratory Services from GF/GP to Weights and Measures Regulation Fees that in turn allows the Food Safety and Quality Assurance program to receive additional GF/GP support.

Gross

Restricted

GF/GP

$225,000

225,000

$450,000

225,000

$225,000

8. Fruit and Vegetable Inspections

Provide additional funds to enhance inspections.

Gross

GF/GP

$300,000

$300,000

DEPARTMENT OF ATTORNEY GENERAL

1. Medicaid Fraud Control

Authorizes the Department to receive additional federal grant funding from the U.S. Department of Health and Human Services for Medicaid fraud control activities.

Gross

Federal

$510,700

510,700

$510,700

510,700

2. Child Support Enforcement

Authorizes the Department to receive additional federal Title IV-D grant funding through an interagency agreement with the Department of Human Services for child support enforcement activities.

Gross

Federal

$450,000

450,000

$450,000

450,000

3. Domestic Violence Prosecution

Authorizes the Department to receive a federal grant award for a domestic violence prosecution program. The Department will assist local prosecutors with misdemeanor and felony domestic violence/homicide prevention cases to promote safety, justice, and stability for domestic violence victims and their children, to hold batterers accountable for the violence, and to stop and prevent future violence.

Gross

Federal

$67,000

67,000

$67,000

67,000

CAPITAL OUTLAY

1. Michigan Natural Resources Trust Fund Projects

Provides appropriation of MNRTF monies for 22 land acquisition and 30 development projects consistent with MNRTF Board recommendations. The 22 grants for land acquisitions range from $45,700 to $5,000,000 with 10 being for state projects and 12 for local. Of the 30 grants for development, 4 are for state projects and 26 for locals with the range being $48,800 to $500,000. All local projects will be matched. (Please see Attachment A for list of projects)

Gross

Restricted

$37,339,500

37,339,500

$37,339,500

37,339,500

2. Natural Resources, State Boating Access Sites

Provides U. S. Coast Guard funds for dredging and paving projects.

Gross

Federal

$1,470,000

1,470,000

$1,470,000

1,470,000

3. Schoolcraft College Project Construction Authorization

This State Building Authority project was authorized for planning under PA 10 of 2005 as the Technical Services Facility Project. Planning documents have been approved by both the DMB and JCOS. The authorized project cost is $12,700,000 ($5,019,900 state/$7,680,100 college). It entails the construction of a new 48,500 sq. ft. building that will contain 17 classrooms, 4 labs and associated preparation and storage rooms.

Gross

GF/GP

$100

$100

4. Infrastructure Improvements, State Projects

Lump-sum contingency account for emergency repairs, preventive maintenance, and utility upgrades at state harbors and docks. Funds will also support engineering work.

Gross

Restricted

$2,500,000

2,500,000

$2,500,000

2,500,000

5. Infrastructure Improvements, local Projects

Same as item 4, but for locally owned harbors and docks.

Gross

Restricted

$1,500,000

1,500,000

$1,500,000

1,500,000

6. Boating Program, Land Acquisition

Provides a lump-sum contingency account to purchase lands as they become available to provide greater boating opportunities.

Gross

Restricted

$1,000,000

1,000,000

$1,000,000

1,000,000

7. Deer Range Habitat Acquisition

Provides a lump-sum contingency account to purchase winter deeryard lands as they become available to provide greater deer hunting opportunities. The Deer Range Improvement Fund is the financing source.

Gross

Restricted

$3,500,000

3,500,000

$3,500,000

3,500,000

DEPARTMENT OF CIVIL RIGHTS

1. Receipt of Federal Funds

Authorizes the Department to receive additional federal grant funding made available from the Equal Employment Opportunity Commission ($374,800) and the United States Department of Housing and Urban Development ($141,600).

Gross

Federal

$516,400

516,400

$516,400

516,400

DEPARTMENT OF COMMUNITY HEALTH

1. Quality Assurance Assessment Program (QAAP) Revenue Increase

Increases restricted QAAP revenue authorization due to a recalculation of the FY 2006 base ($6.4 million) and a technical correction to the FY 2006 budget development ($3.0 million) in the Long-Term Care Services appropriation line. Matching federal Medicaid authorization is requested in the amount of $12.4 million.

Gross

Federal

Restricted

$21,836,500

12,357,300

9,479,200

$21,836,500

12,357,300

9,479,200

2. Health Plan Services Line Technical Correction

Corrects a fund sourcing error made during the FY 2006 budget development. Federal authorization is replaced with a like amount of QAAP restricted revenue.

Gross

Federal

Restricted

(11,000,000)

11,000,000

(11,000,000)

11,000,000

3. GF/GP Transfer to the Department of Human Services

Reduces the Health Plan Services line by $2.3 million GF/GP. The original DHS budget included an IDG to draw upon DCH funding to implement projects to reduce Medicaid eligibility error rates and to implement a new asset test for caretaker relatives. This action would transfer these funds directly within the DHS budget for FY 2006.

Gross

GF/GP

($2,353,200)

($2,353,200)

($2,353,200)

($2,353,200)

4. Medicare Part D Correction

Transfers $27.8 million GF/GP from the Federal Medicare Pharmaceutical Program (FMPP) line to the Pharmacy Services lines, requiring an additional $36.2 million federal Title XIX match authorization due to the transfer. During the FY 2005-06 DCH budget development the number of Medicaid eligibles that were determined to fall under the Medicare Part D program was over estimated. Therefore the FMPP line was over funded and the Pharmacy Services line was under funded. This action would properly align expected revenue with expenditures.

Gross

Federal

$36,217,600

36,217,600

$36,217,600

36,217,600

5. Medicaid Adult Benefits Waiver

Authorization to support the projected expenditures for the adult benefits waiver program. The program's current funding level is $95.7 million Gross ($17.5 million GF/GP) and provides health care coverage for caretaker relatives and other non-disabled adults who qualify for Medicaid.

Gross

Federal

$4,394,700

4,394,700

$4,394,700

4,394,700

6. Title XIX Funds forMichiganUniversities and Colleges

Increases federal Title XIX (Medicaid) contractual funding toMichigan universities and colleges, primarilyMichiganStateUniversity and theUniversity ofMichigan, for Medicaid program evaluation and outreach efforts to improve health care access. The projected FY 2005-06 contracts total approximately $12.2 million federal with the universities and colleges providing the match.

Gross

Federal

$3,000,000

3,000,000

$3,000,000

3,000,000

7. Women, Infants, and Children Food and Nutrition Programs

WIC Administration and Special Projects line item is increased by $609,000 Gross including $58,000 private revenues to support the Farmers' Market Nutrition Program, Project FRESH, for WIC participants, and $551,000 additional federal grant funds for administration, breastfeeding peer counseling, nutrition services, information systems upgrade and nutrition surveillance. The WIC Local Agreements and Food Costs line item is increased by $1,450,000 reflecting an increase in federal funding for food and local administration, based on projected expenditures and federal grant funds available.

Gross

Federal

Private

$2,059,000

2,001,000

58,000

$2,059,000

2,001,000

58,000

8. Pandemic Influenza Preparedness

New federal grant for state and local response planning, exercises, and preparation in anticipation of a possible pandemic flu event. This is the state's initial allocation. The remaining 71% of the federal appropriation will be allocated to states later this year. The funds will be awarded as a component of the federal Public Health Preparedness and Response for Bioterrorism grant.

Gross

Federal

$2,951,800

2,951,800

$2,951,800

2,951,800

9. AIDS Drug Assistance Program

Recognizes private funds over the original budget from pharmaceutical manufacturers for rebates on AIDS and HIV medications used in the AIDS Drug Assistance Program (ADAP).

Gross

Private

$1,000,000

1,000,000

$1,000,000

1,000,000

10. Children with Serious Emotional Disturbances

Funding implements a federally approved waiver that expands Medicaid coverage to 43 children with serious emotional disturbances and/or chronically mentally ill. The children's mental health services are to be provided in the community rather than an institutional setting. Five CMHSPs will provide the GF/GP match for the Medicaid funds.

Gross

Federal

$570,000

570,000

$570,000

570,000

11. Newborn Screening Laboratory Services

Recognizes newborn screening test fee revenue available from current fees needed for laboratory services line item expenditures. Expenditures of newborn screening test fees for related services in other line items are below the authorization levels.

Gross

Restricted

$300,000

300,000

$300,000

300,000

12. Healthy Homes for Children with Asthmatic Symptoms

Recognizes a new 3-year federal HUD Healthy Homes Demonstration grant, to install products and reduce hazards in the home environment of children with asthmatic symptoms in low-income families inInghamCounty. This demonstration program will be run through the lead abatement program which may already be working with many of the eligible families.

Gross

Federal

$300,000

300,000

$300,000

300,000

13. Epidemiology Projects

Recognizes continuation grant funding from the March of Dimes for a project to increase consumption of folic acid supplements to reduce birth defects, and a grant balance from the Saginaw Bay Watershed Initiative Network to complete a project related to toxicity of fish and wildlife caught and consumed locally.

Gross

Private

$47,000

47,000

$47,000

47,000

DEPARTMENT OF CORRECTIONS

1. Baldwin Prison

Associated boilerplate directs department to first utilize beds at the Youth Correctional Facility rather than expand any other existing prison.

Gross

GF/GP

$100

$100

$100

$100

2. Prisoner Reintegration Program

Transfers $4.0 million GF/GP authorization from the $17.8 million Supplementary Operational Expenditures line item to the $12.9 million Prisoner Reintegration Programs line. In Supplementary Operational Expenditures, the $4.0 million constitutes that line's funding for "jail capacity grants," to help counties with problems of jail crowding. Transfer to the Prisoner Reintegration Programs line would support expansion of community pilot sites under the Michigan Community Re-Entry Initiative (MPRI).

Associated boilerplate would repeal language that specifies the various uses of the Supplementary Operational Expenditures line, and enact language to provide for designation and approval of work projects from prisoner reintegration funds, thus enabling funding to be carried forward and expended in succeeding fiscal years.

Housesubstitute does not include this.

Gross

DEPARTMENT OF EDUCATION

1. Receipt of Federal Funds

This appropriates FederalEmergency Impact Aid for Displaced Students grants. The grants would reimburse the State for the administrative and education costs for students who were displaced by Hurricanes Katrina and Rita during FY 2005-06. The Federal grants will reimburse both public and non-public schools at a rate of $6,000 per student or $7,500 per student with disabilities. According to the Department of Education,Michigan schools initially have reported enrolling a total of almost 750 such students. The funds must be spent byJune 30, 2006.

Gross

Federal

$3,286,000

3,286,000

$3,286,000

3,286,000

DEPARTMENT OF ENVIRONMENTAL QUALITY

1. Nonstormwater Program

Appropriation is related to boilerplate that prohibits DEQ from implementing standards that are more stringent than federal standards.

Gross

GF/GP

$100

$100

2. Multi-State Hazardous Waste Tracking Tool

Federal grant funds would be used to establish a data base and exchange program to share hazardous waste manifest information with other states.

Gross

Federal

$741,200

741,200

$741,200

741,200

3. Multi-State Homeland Security System

A homeland security grant would allow states to share environmental, health and safety information with federal agencies in the event of a security threat.

Gross

Federal

$691,600

691,600

$691,600

691,600

4. Office of TheGreat Lakes

Second year of a two-year grant to study and make recommendations for the treatment and control of releases of ballast water from ships operating on theGreat Lakes.

Gross

Federal

Restricted

$45,000

22,500

$45,000

22,500

5. Site Assessment, Little Black Creek

Represents the state's match to federal funding for a study of the Little Black Creek watershed.

Gross

Restricted

$100,000

100,000

DEPARTMENT OF HISTORY, ARTS, AND LIBRARIES

1. Arts Grants

Partial restoration of discretionary grant funding reduction.

House substitute directs all additional funds for Arts Grants.

Gross

GF/GP

$315,900

$315,900

$631,800

$631,800

2. State Aid to Libraries

Partial restoration of per capita funding reduction.

Gross

GF/GP

$315,900

$315,900

DEPARTMENT OF HUMAN SERVICES

1. Field Staff, Salaries and Wages

Increased appropriation for local office staff to cover the cost of a special project to reduce Medicaid error rates. The project would operate in the State's most populous counties and would cover 70% of the current Medicaid caseload. The goal would be to identify and correct agency errors in Medicaid eligibility determinations. The DHS estimates the project will save the State $23.3 million ($10.2 million in GF/GP costs).

In addition, the proposal replaces the IDG funding included in the FY 2006 budget related to the implementation of a Medicaid caretaker relative asset test with a direct GF/GP appropriation. The asset test funding would be used to finance the additional ongoing eligibility determination work that would be necessary on new applications as well as the costs of making a one-time determination for existing cases. The new asset test for caretaker relatives is expected to save $10.9 million ($4.7 million GF/GP).

The State Budget Office is now recommending that GF/GP revenue be directly appropriated in the Department of Human Services budget rather than funding these costs as originally proposed using an interdepartmental grant from the Department of Community Health.

FTE

Gross

IDG

Federal

GF/GP

32.0

$1,402,000

(910,400)

700,900

$1,611,500

0.0

32.0

$1,402,000

(910,400)

700,900

$1,611,500

2. Payroll Taxes and Fringe Benefits

Covers non-salary payroll costs related to a Medicaid error rate reduction project and replaces an existing IDG appropriation to finance the implementation of a caretaker relative asset test with a direct GF/GP appropriation. Additional information on these two projects is included in item 1.

Gross

IDG

Federal

GF/GP

$602,800

(391,400)

301,400

$692,800

$602,800

(391,400)

301,400

$692,800

3. Fund Shift in FamilyIndependence Program

Replaces $20.0 million of TANF appropriations with GF/GP for the FIP program. New GF/GP would help the State overcome an anticipated TANF shortfall for FY 2006.

Gross

Federal

GF/GP

(20,000,000)

$20,000,000

(20,000,000)

$20,000,000

4. Fund Shift: Replace SSBG with GF/GP

Replaces $15.3 million in federal appropriations from the Title XX Social Services Block Grant with GF/GP for the FIP program. Budget action would help offset an expected shortfall in SSBG revenue relative to claimable expenditures. SSBG revenue primarily supports local office social services staff costs.

Gross

Federal

GF/GP

(15,300,000)

$15,300,000

(15,300,000)

$15,300,000

5. Federal Day Care Adjustments

Replaces $6.6 million in GF/GP funding with new federal day care funding that will be available toMichigan as a result of recently enacted federal budget reconciliation legislation. Also, includes increase of $1.9 million in federal appropriations to cover federal funds earmarked for consultation services provided through DCH.

Gross

Federal

GF/GP

$1,937,000

8,537,000

($6,600,000)

$1,937,000

8,537,000

($6,600,000)

6. Local Office Staffing – Child Protective Services Workers

Increases funding for Child Protective Services workers by $614,300. New funding will support 50% of the costs of 51 additional Child Protective Services workers, a 7% increase over existing staff levels in this area. Remaining costs will be met through future transfers from existing appropriations.

FTE

Gross

Federal

GF/GP

51.2

$614,300

114,300

$500,000

0.0

51.2

$614,300

114,300

$500,000

7. Child Support Enforcement - Bench Warrant Revenue

Increases authorization to allow the department to receive and expend new court-collected fee revenue. 2004 PA 205 revised the fees collected by courts related to child custody, parenting time and support cases. From each fee paid under the act, $10 is deposited into a state Child Support Bench Warrant Enforcement Fund. Proceeds are used to support contracts with local law enforcement agencies engaged in enforcing child support bench warrants.

Gross

Restricted

$600,000

600,000

$600,000

600,000

8. Children's Trust Fund (CTF) Adjustments

Increases authority by $210,100 for CTF grants and by $87,600 for CTF administration. New funding reflects an increase in the federal grant award for the program. A portion of the administrative cost increase reflects unanticipated spending to cover one-time leave payouts due to the retirement of the CTF program director.

Gross

Federal

Restricted

$297,700

271,900

25,800

$297,700

271,900

25,800

9. Outstationed Eligibility Workers

Includes transfers of appropriations between line items to recognize funding for outstationed eligibility workers. The Executive Budget recommendation for FY 2006 rolled up funding for these workers into the Local Office – Field Staff, Salaries and Wages line item. However, some of these costs should have been allocated to separate line items for CSS&M, Travel and Payroll Taxes and Fringe Benefits. Proposed adjustments are summarized below:

Adjustment

Field Staff, Salaries and Wages (2,737,900)

CSS&M 511,500

Travel 83,300

Payroll Taxes and Fringe Benefits 2,142,600

Gross

10. Travel

Covers travel-related costs incurred within a Medicaid error rate reduction project and replaces an existing IDG appropriation to finance the implementation of a caretaker relative asset test with a direct GF/GP appropriation. Additional information on these two projects is included in item 1.

Gross

IDG

Federal

GF/GP

$22,200

(14,400)

11,100

$25,500

$22,200

(14,400)

11,100

$25,500

11. Local Office Staff and Operations – Contractual Services, Supplies and Materials

Covers CSS&M costs related to a Medicaid error rate reduction project and replaces an existing IDG appropriation to finance the implementation of a caretaker relative asset test with a direct GF/GP appropriation. Additional information on these two projects is included in item 1.

Gross

IDG

Federal

GF/GP

$20,400

(13,200)

10,200

$23,400

$20,400

(13,200)

10,200

$23,400

12. Barry County Domestic Violence Services

Appropriation is related to boilerplate which allocates federal funds toBarryCounty to support domestic violence programming.

Gross

Federal

$0

0 $100

100 $100

100

13. Pilot Indigent Burial Program

Appropriation is related to boilerplate allowing the DHS to establish a pilot program for indigent burials.

Gross

Federal

$0

0 $100

100 $100

100

14. Out-of-State Child Placement

Appropriation is related to revised boilerplate which limits the placement of foster children in out-of-state facilities.

Gross

Federal

$0

0 $100

100 $100

100

15. Child Support Incentive Payments

Appropriation is related to revised boilerplate providing guidelines for the use of federal child support incentive payment funding.

Gross

Federal

$0

0 $100

100 $100

100

16. Information Technology

Funding shift from federal to GF/GP.

Gross

Federal

GF/GP

(3,397,400)

$3,397,400

(3,397,400)

$3,397,400

DEPARTMENT OF INFORMATION TECHNOLOGY

1. FY 2006 Base Adjustments

Aligns FY 2006 spending authorization in the Department of Information Technology with appropriations in various enacted agency budgets. Also, aligns spending authorization with information technology-related supplementals recommended for the Departments of Management and Budget and State Police.

Gross

IDG

$17,512,300

17,512,300

$0

0 $17,512,300

17,512,300

JUDICIARY

1. Court of Appeals Funding

Recognizes additional revenue anticipated from Court of Appeals filing and motion fees. Funding would help the Court to continue its efforts to reduce delays.

Gross

Restricted

$150,000

150,000

$0

0 $150,000

150,000

DEPARTMENT OF LABOR AND ECONOMIC GROWTH

1. Public Service Commission, Create Task Force

Appropriation related to boilerplate that creates a public/private task force to study the creation of a coordinated state telephone assistance program.

Gross

GF/GP

$0

$100

$100

2. Public Service Commission, Private Wastewater Regulation

Public utility assessments totaling $122,500 provide funding for these new laws, which include hiring an additional 2.0 FTEs for the Public Service Commission. In addition, $10,000 of private funds is requested to draw down Federal funds to support the Midwest Combined Heat & Power regional technical assistance project.

FTE

Gross

Private

Restricted

2.0 $132,500

10,000

122,500

0.0 $0

0

2.0 $132,500

10,000

122,500

3. OFIS, Pay Day Lending

Funding from new fees on payday lending establishments is requested to hire 4.0 FTEs for the Office of Financial and Insurance Services (OFIS), and development a statewide database to ensure compliance with provisions of the law.

FTE

Gross

Restricted

4.0 $550,000

550,000

0.0 $0

0

4.0 $550,000

550,000

4. Reed Act Funding, IT System

Funding from existing Federal Social Security Administration Reed Act funds is requested to partially fund a $65.0 million Internet-Based unemployment claim system to replace the current antiquated system. The current system requires over $10.0 million per year to maintain system reliability.

Gross

Federal

$32,600,000

32,600,000

$0

0 $32,600,000

32,600,000

LEGISLATURE

1. Legislative Council, Special Study

Authorizes the Council to hire a private firm to evaluate the management, efficiency, and effectiveness of the state's prison system.

Gross

GF/GP

$0

$500,000

$500,000

$500,000

$500,000

2. Legislative Council, Redistricting Project

Provides funding for the Legislative Council to contract for the establishment of a database for the redistricting project.

Gross

GF/GP

$500,000

$500,000

$208,000

$208,000

$208,000

$208,000

3. National Association Dues

Gross

GF/GP

$0

$150,000

DEPARTMENT OF MANAGEMENT & BUDGET

1. Vision ORS Operational Costs

Provides funding to cover ongoing operational costs of the Vision ORS project as components of the system are transitioned from the development phase into production. The Vision ORS project is designed to replace outdated technology and manual systems in order to provide more timely and accurate services to retirees.

Gross

Restricted

$2,000,000

2,000,000

$2,000,000

2,000,000

2. Michigan State Fair - Operations

Provides funding needed to support ongoing operational costs of the State Fair.

Gross

Restricted

$587,400

587,400

$0

0

$587,400

587,400

3. Michigan State Fair - Depreciation and Compensated Absences

Adjusts for fixed asset depreciation ($332,000) and compensated absences ($35,000) as a result of a change in requirements for budgeting and accounting. Prior to being a Type I agency within DMB, the State Fair was an office within the Department of Agriculture. The recording of depreciation on fixed assets and the cost of compensated absences against the appropriation each year is now required by generally accepted accounting principles for proprietary funds.

Gross

Restricted

$367,000

367,000

$0

0

$367,000

367,000

4. Michigan State Fair - Unclassified Positions

Provides funding to cover the cost of an increase in the Fair manager's salary. The Michigan Exposition and Fairgrounds Authority is responsible for setting the manager's salary, pursuant to PA 468 of 2004, and granted an increase effectiveSeptember 19, 2005.

Gross

Restricted

$12,300

12,300

$0

0

$12,300

12,300

5. Grant

Provides grant funding for the Italian American Cultural Center of Macomb County.

Gross

GF/GP

$0

$50,000

DEPARTMENT OF MILITARY & VETERANS AFFAIRS

1. Military Training Sites and Support Facilities

Provides available federal revenue for security guards to guard the airstrips at theBattle Creek and Selfridge Air National Guard bases.

Gross

Federal

$4,600,000

4,600,000

$2,050,000

2,050,000

2. Grand Rapids/Jacobetti Veterans Homes

Provides state restricted authorization for additional programming for veterans at the Grand Rapids and D.J. Jacobetti veterans' homes. The Military Family Relief Act, PA 363 of 2004, requires that twenty percent of the Military Family Relief Fund collected be appropriated to the post and posthumous fund of theMichigan veterans' homes.

Gross

Restricted

$219,000

219,000

$0

0 $219,000

219,000

3. Starbase Program

Provides available federal revenue for the Parametric Technology Corp. contract to provide curriculum and training for the Starbase program.

Gross

Federal

$206,600

206,600

$0

0 $206,600

206,600

DEPARTMENT OF NATURAL RESOURCES

1. Water Withdrawal Assessment Tool

Tie-bars the appropriation for the $500,000 water withdrawal assessment tool to passage of Senate Bills 850 and 851 (water withdrawal regulatory bills currently in the Senate creating the groundwater conservation advisory council).

Gross

Restricted

$500,000

500,000

$500,000

500,000

2. State Parks

Camping fee revenue would be available for park operations and maintenance. These fee increases were approved by the Natural Resources Commission in 2005.

Gross

Restricted

$3,325,000

3,325,000

$3,325,000

3,325,000

3. Law Enforcement, Equipment

Federal US Coast Guard grant funds are provided for inland lakes andGreat Lakes enforcement program equipment (in-car computers and boats).

Gross

Federal

$1,470,000

1,470,000

$0

0 $1,470,000

1,470,000

4. Marine Safety Grants to Locals

Federal US Coast Guard grant funding is available for county sheriffs. Funds are available for lake safety and watercraft enforcement activities on inland lakes.

Gross

Federal

$1,470,000

1,470,000

$0

0 $1,470,000

1,470,000

5. Education and Outreach

Outreach programs would be offered to encourage youth to hunt and fish.

Gross

Restricted

$250,000

250,000

$0

0

$250,000

250,000

6. Repair ofStateShootingRanges

ThePontiac Lake and Ortonville shooting ranges would be enhanced and repaired.

Gross

Restricted

$83,000

83,000

$0

0

$83,000

83,000

7. Payments in Lieu of Taxes

House substitute fully funds the FY 2006 payments.

Gross

GF/GP

$350,000

$350,000

DEPARTMENT OF STATE POLICE

1. Criminal Justice Information Center

Provides state restricted authorization to support and increase the number of criminal background checks and fingerprints required from employees of school districts and child care organizations per PA 130 of 2005 and PA 133 of 2005. The additional revenue will be used to upgrade the Automated Fingerprint Identification System (AFIS) to handle increased workloads. Also provides state restricted authorization for a new online purchasing system that allows individuals involved in automobile crashes or insurance companies to purchase crash reports via the internet.

Housesubstitute includes additional funding for locating sex offenders who are in violation of the registration act.

Gross

Restricted

GF/GP

$3,080,000

3,080,000

$0

0

$3,580,000

3,080,000

$500,000

2. DNA Analysis and Lab Operations

Provides federal grant revenue to cover overtime costs to reduce DNA casework backlog and state restricted authorization to recover personnel overtime costs for bomb squad services incurred while assisting the Bureau of Alcohol, Tobacco and Firearms (ATF) in joint law enforcement operations in the state.

Gross

Federal

Restricted

$1,110,900

1,050,900

60,000

$0

0 $1,110,900

1,050,900

60,000

3. Auto Theft Prevention Grants to Locals

Provides available Auto Theft Prevention Fund resources for the distribution of grants to local law enforcement officers, prosecutors, and support personnel approved by the Auto Theft Prevention Authority board of directors in November 2005.

Gross

Restricted

$2,150,400

2,150,400

$0

0

$2,150,400

2,150,400

4. Public Safety Communications System

Provides authorization to allow the department to receive local subscriber fees for the Michigan Public Safety Communication System (MPSCS). Pursuant to boilerplate Section 577(3) of PA 146 of 2005, local subscriber fees are to be expended on support and maintenance of the MPSCS. A corresponding adjustment to the interdepartmental grant from the Department of State Police within the Department of Information Technology is also included.

Gross

Local

$1,000,000

1,000,000

$0

0

$1,000,000

1,000,000

5. Michigan Amber Alert Plan

Provides anticipated private donations for administering and to provide training for the Michigan Amber Alert Plan.

Gross

Private

$31,800

31,800

$0

0 $31,800

31,800

6. Youth Leadership Academy

Provides anticipated private donations to support the Michigan Youth Leadership Academy (MYLA), which is a one week in-residence program at theMichiganStatePoliceTrainingAcademy for at-risk youths between the ages of 14 and 16.

Gross

Private

$32,000

32,000

$0

0 $32,000

32,000

7. Highway Safety Public Information

Provides federal grant revenue for the distribution of public information materials regarding highway safety. The grant start date wasOctober 1, 2005 and is expected to be ongoing, with renewal each fiscal year.

Gross

Federal

$160,000

160,000

$0

0 $160,000

160,000

8. Grant for Warning Siren

Provides grant funding to replace an early warning siren system.

Gross

GF/GP

$18,000

18,000

DEPARTMENT OF TRANSPORTATION

1. Economic Development and Enhancement (Business Support)

This line supports the department's Office of Economic Development and Enhancement, which administers the Transportation Economic Development and Enhancement programs. The Governor's original FY 2005-06 budget proposal had included $181,800 in additional State Trunkline Fund (STF) support to offset federal funds which had formerly supported part of program administration costs.

The enacted budget did not include the proposed increase. The Governor's supplemental request would use Michigan Transportation Fund (MTF) revenue, transferred from the Planning services/Local studies line, to provide the increase. Of the $181,800 requested, $174,700 would be appropriated for salaries and fringe benefits, $1,800 for travel, and $5,300 for other operational expenses.

Gross

Restricted

$181,800

181,800

2. Information Technology

The enacted budget was $2.0 million less than the Governor's original recommendation for this line. The proposed supplemental would provide STF funding from the State trunkline federal aid and road and bridge construction line.

Gross

Restricted

$2,000,000

2,000,000

3. Specialized Planning Services and Local Studies

Proposed supplemental would fund the $181,800 increase to Economic Development and Enhancement line (as shown above) by moving MTF revenue from this line, and would fund $200,000 increase to Passenger Transportation Services line (as shown below) by moving Comprehensive Transportation Fund (CTF) revenue from in this line.

Gross

Restricted

($381,800)

(381,800)

4. State Trunkline Federal Aid and Road and Bridge Construction

In signing Enrolled Senate Bill 281, the Governor vetoed 20 boilerplate appropriations for specific state trunkline road projects. The proposed supplemental would restore all but $2.0 million of the spending authority which was lost as a result of the vetoes; $2.0 million (STF) is used to fund the increase to Information Technology shown above.

Gross

Federal

Restricted

$20,862,500

10,016,000

10,846,500

5. County Road Commissions

The proposed supplemental would restore spending authority which was lost as a result of the Governor's veto of Section 624 from the enrolled bill. Section 624 directed the department to address structural problems on the M-25 bridge inHumeTownship.

Gross

Restricted

$200,000

200,000

6. Transportation Economic Development Fund – Target Industries/Economic Redevelopment

The Transportation Economic Development Fund was created in 1987 by 1987 PA 231 (MCL 247.901) to assist funding highway, road, and street improvements in direct support of economic growth. Funds are distributed to five category programs based on statutory formula. Funding provided in the enacted budget was less than the amount authorized under PA 231. The proposed supplemental would reflect the statutory distribution.

Gross

Restricted

$1,037,400

$1,037,400

7. Public Transportation and Freight Services – Passenger Transportation Services

The enacted budget was $895,000, and 8.0 FTE positions, less than the original Executive recommendation for this line. The proposed supplemental would provide $200,000 in additional CTF funding (from Specialized Planning Services and Local Studies, shown above), and $695,000 in federal revenue from Service Initiatives line (as shown below).

FTEs

Gross

Federal

Restricted

8.0

$895,000

695,000

200,000

0.0

8. Rail Passenger Service/Passenger Rail Service

In the prior fiscal year, the state had contracted with AMTRAK to provide rail passenger service betweenPort Huron andChicago, and betweenGrand Rapids andChicago, for a cost of $7.1 million. The enacted budget included $7.2 million in state-restricted (CTF) funding for this line. However associated boilerplate section 711 limited the amount of state operating subsidy for rail service to $6.1 million. The budget act authorized an additional $1.0 million only if AMTRAK relocated certain maintenance facilities toMichigan.

The Governor's proposed supplemental would repeal the language of Section 711, and would replace it with new boilerplate limiting the state operating subsidy to $7.1 million. The proposed supplemental would also change the name of the line item from "Rail passenger service" to "Passenger rail service."

Gross

9. Freight Preservation and Development

The proposed supplemental would restore spending authority lost as a result of the Governor's veto of sections 728 and 738 from the enrolled bill. Section 728 was a project earmark related to the Lakestate Railroad; Section 738 earmarked funds for a rail project on state-owned rail line betweenOwosso and Chesaning.

Gross

Restricted

$450,000

450,000

10. Service Initiatives

Proposed supplemental would transfer spending authority from this line to Passenger Transportation Services line, as shown above.

Gross

Federal

($695,000)

(695,000)

11. Safe Routes to School Program

Transfers $3.0 million (federal) from the State trunkline federal aid and road and bridge construction line to support a new federally-mandated program Safe routes to schools., established in SAFETEA-LU — the reauthorization of the federal-aid highway program. Federal share of program costs is 100% — no state or local match required.

Under federal guidelines, funds may be used for planning, design and construction of projects to improve the ability of students to walk or bike to school, e.g., traffic calming, sidewalk improvements. Funds may also be used for public awareness campaigns to encourage biking and walking to school. Local, regional, and non-profit agencies, in addition to the state, may be eligible for grants. Includes funding for FTE position of program coordinator.

FTEs

Gross

Federal

1.0

$3,040,200

3,040,200

0.0

1.0

$3,040,200

3,040,200

DEPARTMENT OF TREASURY

1. Tobacco Securitization Economic Development

This is for a private drug research institute that has received a specific federal appropriation prior to 2005 for the creation of a good manufacturing facility.

Gross

Restricted

$1,000,000

1,000,000

$1,000,000

1,000,000

2. Agricultural Development Fund

Provides specialty crop grants and loans pursuant to statute.

Gross

Restricted

$5,000,000

5,000,000

$5,000,000

5,000,000

3. Life Science Technology

This is appropriated from the 21^st Century Jobs Fund pursuant to statute and will be used to implement a program for early drug discoveries by the Core Technology Alliance.

Gross

Restricted

$1,000,000

1,000,000

4. Huron-Clinton Metroparks Authority

House recommends funding to restore inventory reimbursement payments.

Gross

GF/GP

$558,000

$558,000

5. Telephone/Telegraph Assessments

Funds a new program of annual assessment of telephone and telegraph companies' real property. PA 610 of 2002 requires these properties to be taxed based on individual value beginning this year. $2 million of this appropriation would fund the estimated cost of inspecting, appraising, and assessing over 1,000 land parcels. In FY 2005, the revenue generated by taxing these companies' real property was $97 million. In FY 2006 under the new valuation method, the revenue is estimated to be $81 million. These revenues are deposited into the general fund.

FTEs

Gross

GF/GP

15.0

$2,700,000

2,700,000

0.0

15.0

$2,700,000

2,700,000

6. SBA Rent Adjustments

Reduces funding for rent obligations for previously constructed capital outlay projects. Recent refunding of the State Building Authority's portfolio has helped lower rent obligations. The rent payments for state agencies are reduced by $16 million. The Department of Corrections' rent is lowered by $1.1 million. Rent payments for Universities are lowered by $2 million.

Gross

GF/GP

($4,100,000)

($4,100,000)

($19,100,000)

($19,100,000)

7. Agricultural Loan Program

Appropriates additional GF/GP funding to pay for the Qualified Agricultural Loan Program's scheduled payment requirements. Established by PA 16 of 2002 in response to the 2001 drought, the program pays the interest on zero-interest agricultural loans to affected farmers and is projected to end in 2007.

Gross

GF/GP

$750,000

$750,000

$750,000

$750,000

8. 401(k) Expert Assistance

Appropriates funds to oversee the implementation of a 401 (k) plan for small businesses. This is a one-time appropriation to fund the start up costs of this new program.

Gross

GF/GP

$100,000

$100,000

9. Special Census Revenue Sharing

Housesubstitute provides additional funding for special censuses completed forGrandBlancTownship,SaugatuckTownship, andRockford.

Gross

GF/GP

$393,114

$393,114

10. Economic Development

Housesubstitute provides job training grants to M-TEC centers for retraining workers who become unemployed because of the permanent closure of a business.

Gross

GF/GP

$1,000,000

$1,000,000

Boilerplate Issues FY 2005-06:	Executive	Senate	House
GENERAL SECTIONS
1. Sec. 204. Transfer to the BSF The entire unreserved General Fund balance as ofSeptember 30, 2006 is transferred to the Budget Stabilization Fund.	Included	Not Included	Included
DEPARTMENT OF ATTORNEY GENERAL
1. Sec. 221. Litigation Expense Reimbursements Appropriates up to $500,000 from litigation expense reimbursements for payment of court judgments or settlements, attorney fees, and litigation expenses, not including staff salaries and support costs, assessed against the Governor or Attorney General when they are the named party in litigation against the state; authorizes reimbursements for payment of state costs incurred for DNA testing activities; and authorizes up to $500,000 of unexpended revenues to be carried forward.	Included	Not Included	Included
CAPITAL OUTLAY
1. Sec. 225. Natural Resources Trust Fund Requires local units to enter into agreements with DNR about their respective grants and provides other general provisions.	Included	Not Included	Included
2. Sec. 226. Military and Veterans Affairs, Receipt of Federal Funds Allows department to receive and expend certain federal funds up to $1.5 million.	Included	Not Included	Included, modified
3. Sec. 227. Transfer From the Harbor Development Fund Authorizes the transfer of the balance of the Harbor Development Fund to the Waterways Fund.	Included	Not Included	Included
DEPARTMENT OF COMMUNITY HEALTH
1. Sec. 231. Medicare Part D Complaints Directs department to keep a record of all constituent complaints regarding this new federal program.	Not Included	Included	Included
2. Sec. 232. Out-of-Wedlock Pregnancies Directs department to report public expenditures for pregnancy prevention services and out-of-wedlock pregnancies. Establishes reporting criteria.	Not Included	Not Included	Included
DEPARTMENT OF CORRECTIONS
1. Sec. 241. Baldwin Prison Directs department to first utilize beds at the Youth Correctional Facility rather than expand any other existing prison.	Not Included	Included	Included, modified
2. Sec. 242. Prisoner Reintegration Programs Repeal language that specifies the various uses of the Supplementary Operational Expenditures line, and enact language to provide for designation and approval of work projects from prisoner reintegration funds, thus enabling funding to be carried forward and expended in succeeding fiscal years.	Included	Not Included	Not Included
DEPARTMENT OF EDUCATION
1. Sec. 243. Displaced Students Part 1 funds are to be used to reimburse the state and nonpublic schools for the cost of educating students displaced by recent hurricanes.	Not Included	Not Included	Included
DEPARTMENT OF ENVIRONMENTAL QUALITY
1. Sec. 245. Nonstormwater Program Prohibits DEQ from implementing standards more stringent than federal standards.	Not Included	Not Included	Included
2. Sec. 246. Work Project Appropriations Creates a work project account for the appropriation for the Hazardous Waste Manifest and Homeland Security information systems.	Included	Not Included	Included
3. Sec. 247. Community Pollution Prevention Fund Transfers $3.0 million to the Waste Reduction Fee Revenue Fund, and $7.0 million to the Environmental Protection Fund. These funds would be available for appropriation in FY 2006-07.	Included	Not Included	Included
4. Sec. 248. Cleanup and Redevelopment Trust Fund Transfers $12.0 million from the fund balance to the Environmental Protection Fund. These funds would be available for appropriation in FY 2006-07.	Included	Not Included	Included
4. Sec. 249. Site Assessment, Little Black Creek Establishes part 1 appropriation as a work project account so that the funds do not lapse at the end of the fiscal year.	Not Included	Not Included	Included
5. Sec. 250. Chappel Dam Repair Study Directs the department to determine the cost of repairing the Chappel dam onWigginsLake.	Not Included	Not Included	Included
DEPARTMENT OF HUMAN SERVICES
1. Sec. 251.BarryCounty Domestic Violence Allocates $75,000 in federal Temporary Assistance for Needy Families funding toBarryCounty to support domestic violence programming.	Not Included	Included	Included
2. Sec. 252. Pilot Indigent Burial Program Allows the DHS to conduct a pilot indigent burial program in selected counties. The indigent burial program provides state support to cover funeral and burial expenses for deceased low-income individuals. The pilot program would not be subject to the payment caps currently contained in Section 613 of the FY 2006 DHS budget act. These caps provide maximum payments to funeral directors ($579), cemeteries/crematoriums ($192), and vault providers ($138).	Not Included	Included	Included
3. Sec. 253. Out-of-State Child Placement Replaces current boilerplate language which limits state-funded placements of children in out-of-state facilities. Section 513 of the FY 2006 DHS budget act establishes four conditions which must be met for a child to be placed out-of-state. One of those conditions is that no available appropriateMichigan placement is available within 100 miles of the child's home, while an out-of-state placement does exist within 100 miles of the child's home. The replacement language revises the condition to require that no appropriate placement be available anywhere withinMichigan.	Not Included	Included	Included
4. Sec. 254. Child Support Incentive Payments Revises current boilerplate language in Section 901 of the FY 2006 DHS budget act which provides guidelines for the use of federal child support incentive funds. The new language reinserts a provision from the FY 2005 budget that counties receive an allocation from federal incentive payments no less than the total amount paid for FY 2001.	Not Included	Included	Included
DEPARTMENT OF LABOR AND ECONOMIC GROWTH
1. Sec. 275. Creation of a Task Force Creates a public/private task force to study the creation of a coordinated state telephone assistance program.	Not Included	Not Included	Included
2. Sec. 276. Work Project Appropriations Language is added regarding the implementation of the $65.0 million Internet-Based claim system. The tentative completion date specified in boilerplate isSeptember 30, 2011. The funds appropriated in Part 1 are to be treated as a work project so that any unencumbered or unallotted funds are carried forward into the next fiscal year.	Included	Not Included	Included
LEGISLATURE
1. Sec. 301. Legislative Council, Special Study Authorizes the Council to hire a private firm to evaluate the management, efficiency, and effectiveness of the state's prison system.	Not Included	Included	Included
2. Sec. 302. Work Project Appropriations The funds appropriated in Part 1 are to be treated as a work project so that any unencumbered or unallotted funds are carried forward into the next fiscal year.	Included	Not Included	Included
DEPARTMENT OF MANAGEMENT & BUDGET
1. Sec. 351. State Motor Fleet, Gasoline Chargeback Authorizes DMB to charge state agencies for fuel costs above a base amount due to gasoline prices that have risen above levels that were assumed when motor vehicle rates were established.	Included	Not Included	Included
DEPARTMENT OF NATURAL RESOURCES
1. Sec. 401. Water Withdrawal Assessment Tool Tie-bars the appropriation for the $500,000 water withdrawal assessment tool to passage of Senate Bills 850 and 851 (water withdrawal regulatory bills currently in the Senate creating the groundwater conservation advisory council).	Not Included	Included	Included
DEPARTMENT OF STATE POLICE
1. Sec. 451. Sex Offender Registration Housesubstitute includes additional funding for locating sex offenders who are in violation of the registration act.	Not Included	Not Included	Included
DEPARTMENT OF TRANSPORTATION
1. Sec. 711. Passenger Rail Service The repeal of the enacted boilerplate and enactment of this section serves to remove conditions placed on Amtrak regarding the relocation of maintenance facilities toMichigan.	Included	Not Included	Not Included
DEPARTMENT OF TREASURY
1. Sec. 502. Tobacco Securitization Economic Development This is for a private drug research institute that has received a specific federal appropriation prior to 2005 for the creation of a good manufacturing facility.	Not Included	Included	Included
2. Sec. 503. Agricultural Development Fund Directs specialty crop loans and grants to be made pursuant to statute and that Part 1 funds are to be combined with funds appropriated under PA 270 of 1984. Specialty crop means any agricultural crop except for wheat, feed grains, oilseeds, rice, peanuts, and tobacco.	Not Included	Included	Included, modified
3. Sec. 504. Huron-Clinton Metroparks Authority Funds in Part 1are to restore inventory reimbursement payments.	Not Included	Not Included	Included
4. Sec. 505. Life Science Technology This is appropriated from the 21^st Century Jobs Fund pursuant to statute and will be used to implement a program for early drug discoveries by the Core Technology Alliance.	Not Included	Not Included	Included
5. Sec. 506. Economic Development Provides job training grants to M-TEC centers for retraining workers who become unemployed because of the permanent closure of a business.	Not Included	Not Included	Included
REPEALERS
1. Sections 513 and 901 of PA 147 of 2005 (Human Services)	Not Included	Included	Included
2. Section 308 of PA 146 of 2005 (Attorney General)	Included	Not Included	Included
3. Section 1015 of PA 154 of 2005 (Corrections)	Included	Not Included	Not Included
4. Section 711 of PA 158 of 2005 (Transportation)	Included	Not Included	Not Included

Attachment A, page 1
MICHIGAN NATURAL RESOURCES TRUST FUND PROJECT RECOMMENDATIONS FY 2005-06
RECREATIONAL ACQUISITIONS (By Priority)
			Total	MNRTF	Local
Owner	Project	Location	Cost	Share	Share	Acres
DNR	Arcadia/Green Point Dunes, conservation easement	Manistee & Benzie counties	$2,675,000	$2,675,000	$0	1,850
DNR	Lee Grande Ranch conservation easement	Cheboygan County	2,750,000	2,750,000	0	2,560
Keweenaw County	GratiotRiverPark acquisition in fee simple	Keweenaw County	3,410,000	1,957,500	1,452,500	100
DNR	Russell Lake winter habitat acquisition in fee simple	Roscommon County	1,820,000	1,820,000	0	1,339
DNR	Kamehameha development rights purchase, phase IV	Nine U.P. counties	5,000,000	5,000,000	0	248,000
DNR	Flowing Well conservation easement	Kalkaska County	3,500,000	3,500,000	0	1,720
DNR	Wildlife Area consolidation lump sum	Statewide	1,250,000	1,250,000	0	Unknown
Oakland Township	Stony Creek Corridor Park acquisition	Oakland County	1,396,400	893,700	502,700	60.6
DNR	Bear River Parcel conservation easement	Charlevoix County	280,000	280,000	0	225
Calumet Township	Swedetown Recreation Area, fee simple	Houghton County	140,300	105,200	35,100	280
DNR	Winter deer habitat initiative in fee simple	Northern Lower & U.P.	1,350,000	1,350,000	0	Unknown
DNR	State trailways initiative, acquire 200 miles of rail corridor	Statewide	1,900,000	1,900,000	0	Railways
Oakland County	Highland Oaks County Park	Oakland County	3,600,000	1,440,000	2,160,000	260
Kent County	Coldwater/Thornapple River, fee simple acqui.	KentCounty	1,300,000	962,000	338,000	89
City of Clare	Pere Marquette trail extension, fee simple	Clare County	153,700	99,100	54,600	1.4
Waterford Township	ElizabethLakeWoodsPark expansion, fee simple acquisition	OaklandCounty	116,000	87,000	29,000	25
St. Charles Village	St. Charles Park land acquisition, fee simple	Saginaw County	91,334	45,700	45,634	8.6
Bear Creek Township	WalloonLake access, fee simple acquisition	EmmetCounty	2,691,100	2,018,400	672,700	3.5
City of Novi	Wood Lake/Orchard Hills West, fee simple	Oakland County	1,128,450	846,400	282,050	51
DNR	Lighthouse west property conservation easement	Leelanau County	330,000	330,000	0	42
City ofWayland	Rabbit River recreation project, fee simple	Allegan County	175,676	130,000	45,676	26.2
Antrim County	Grass River Natural Area addition, fee simple	Antrim County	66,667	50,000	16,667	9.3
DNR	Reserve for higher than anticipated appraisals	NA	23,000	23,000	0	NA
HFA/ADV2/17/06		Total Acquisitions	$35,147,627	$29,513,000	$5,634,627

Attachment A, page 2
MICHIGAN NATURAL RESOURCES TRUST FUND PROJECT RECOMMENDATIONS FY 2005-06
RECREATIONAL DEVELOPMENT PROJECTS (By Priority)
			Total	MNRTF	Local
Owner	Project	Location	Cost	Share	Share
City of St. Ignace	Huron Boardwalk	Mackinac County	$227,500	$137,500	$90,000
City of Gladstone	10th Street Pier	Delta County	581,000	155,000	426,000
City of Belding	Silk City Nature Trail	Ionia County	260,000	166,400	93,600
City of Scottville	Riverside Park boat launch site improvements	Mason County	117,569	82,300	35,269
City of Alpena	North Riverfront Park Heritage improvements	Alpena County	397,260	214,500	182,760
Ada Township	Roselle Park Trail improvements	Kent County	227,750	122,200	155,550
City of Manistique	Central Park improvements	Schoolcraft County	573,000	424,000	149,000
Iron County	Pentoga Park campground improvements	Iron County	180,000	90,000	90,000
Allegan County	New Richmond Bridge Park development	Allegan County	517,276	382,800	134,476
DNR	State Park camper cabins	Various counties	375,600	375,600	0
City of Caspian	Fishing Quarry Park development	Iron County	66,000	48,800	17,200
City of Iron River	Apple Blossom Trail River Walkway	Iron County	161,700	86,700	75,000
Almira Township	Ransom Lake Natural Area	Benzie County	110,000	81,400	28,600
Midland County	Sanford Lake Park improvements	Midland County	1,000,000	444,000	556,000
City of Fremont	Fremont Town & Country Path	Newaygo County	342,600	130,600	212,000
City of Lansing	Lansing River Trail south extension	Ingham County	1,325,912	426,500	899,412
City of Whitehall	Goodrich Park renovations	Muskegon County	164,000	90,500	73,500
Jackson County	Falling Waters Trail project	Jackson County	1,500,000	500,000	1,000,000
DNR	Campground access improvements	Presque Isle & Otsego counties	500,000	500,000	0
Eaton County	Fox Memorial Park	Eaton County	402,700	298,000	104,700
Village of Empire	Lake Michigan Beach Park improvements	LeelanauCounty	481,900	356,600	125,300
City of Ypsilanti	Riverside Park capital improvement project	Washtenaw County	116,000	80,300	35,700
City of Traverse City	Boardman Lake Trail West	Grand Traverse County	980,000	500,000	480,000
City of Kentwood	Kenneth Stanaback Park development	Kent County	198,800	99,400	99,400
City of Beaverton	Beaverton Fishing Pier	Gladwin County	79,760	59,000	20,760
City of Detroit	Butzel Playfield development	Wayne County	675,000	500,000	175,000
Cannon Township	CannonTownship non-motorized trail	Kent County	1,000,000	500,000	500,000
Mackinac Island State Park Comm.	Old Mack. Point Light Station improvements	Cheboygan County	252,000	189,000	63,000
City of Scottville	Riverside Park campground redevelopment	Mason County	379,109	284,400	94,709
DNR	Tricentennial State Park & Harbor	Wayne County	750,000	500,000	250,000
HFA/ADV2/17/06		Total Development Projects	$13,942,436	$7,825,500	$6,166,936