Coordinator: Al Valenzio

Phone: 373-8080

Date: March 24, 2005

Summary of FY 2004-05 Supplemental Items

HB 4308 (S-1) Senate Substitute

	Executive Recommendations		Senate
DEPARTMENT/BUDGET	GF/GP	GROSS	GF/GP	GROSS
Agriculture	$0	$1,640,510	$0	$1,640,500
Attorney General	735,000	828,000	0	93,000
Capital Outlay	100	333,501,800	100	333,501,800
Civil Rights	0	313,700	0	313,700
Community Health	39,814,900	245,398,600	39,814,900	245,398,600
Corrections	(271,000)	1,729,000	(271,000)	1,729,000
Education	0	2,781,200	0	2,781,200
Environmental Quality	0	52,657,000	0	52,657,000
History, Arts, & Libraries	0	2,664,600	0	2,664,600
Human Services	0	9,000,000	0	9,000,000
Information Technology	0	1,304,100	0	1,304,100
Judiciary	(546,000)	0	(546,000)	0
Labor & Economic Growth	250,000	13,057,100	250,000	13,057,100
Management & Budget	0	201,500	735,000	936,500
Military & Vet's Affairs	0	3,115,000	0	3,115,000
Natural Resources	0	3,594,000	0	3,594,000
State	0	11,150,000	0	11,150,000
State Police	0	4,838,100	0	4,838,100
Transportation	0	(4,869,000)	0	(4,869,000)
Treasury	0	1,687,500	0	1,687,500
TOTAL	$39,983,000	$684,592,710	$39,983,000	$684,592,700

2004-05 Budgetary Issues:	Executive	Senate
Sec. 102. AGRICULTURE 1. Food Safety and Quality Assurance Recognizes federal grant to improve food emergency response readiness in the City ofDetroit. The department will conduct a community-based pilot project to develop consistent emergency response materials for both regulators and the food industry for use in community-wide emergencies.	Gross Federal	$55,000 55,000	$55,000 55,000
2. Agriculture Pollution Prevention Recognizes additional funding for program to protect surface and groundwater from pesticide-fertilizer contamination and to create buffer strips alongMichigan waterways.	Gross Restr.	$310,000 310,000	$310,000 310,000
3 Groundwater and Freshwater Protection Recognizes federal grant to allow the department to hire 20 full-time AmeriCorps members to work in communities on groundwater stewardship efforts.	Gross Federal	$250,000 250,000	$250,000 250,000
4. Environmental Stewardship Recognizes additional $37,000 provided from the Department of Environmental Quality for Department of Agriculture Right-to Farm activities in the Michigan Agriculture Environmental Assurance Program (MAEAP). The program works with produces to develop and promote cost-effective pollution prevention practices. Also recognizes a 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 IDG Federal	$48,010 37,000 11,010	$48,000 37,000 11,000
5. Information Technology Services and Projects Would substitute $692,500 GF/GP with State Services Fee Fund revenue.	Gross Restr. GF/GP	$0 692,500 ($692,500)	$0 692,500 ($692,500)
6. Building & Track Improvement – County and State Fairs Would remove $692,500 State Services Fee Fund revenue from this line and substitute with a like amount from the Agriculture Equine Industry Development Fund.	Gross Restr.	$0 0	$0 0
7. Restricted Fund to Replace EO GF/GP Reduction Would appropriate licensing and inspection fees to offset $150,000 of GF/GP reduction proposed in the Executive Order.	Gross Restr.	$150,000 150,000	$150,000 150,000
8. Restricted Fund to Replace EO GF/GP Reduction Would appropriate Gasoline Inspection and Testing Fund revenue to offset $135,000 GF/GP reduction proposed in the Executive Order.	Gross Restr.	$135,000 135,000	$135,000 135,000
Sec. 103. ATTORNEY GENERAL 1. Litigation Payment Appropriates additional funds for the Attorney General to pay settlement costs to the Kikham Hanley PC Client Trust litigation.	Gross GF/GP	$735,000 $735,000	$0 $0
2. Prosecuting Attorney's Coordinating Council Includes authorization for the agency to receive additional federal Byrne grant funding.	Gross Federal	$93,000 93,000	$93,000 93,000
Sec. 104. CAPITAL OUTLAY 1. AGRICULTURE Farmland and Open Space Development Acquisition Funds are used to purchase development rights of unique and critical farmland pursuant to statute.	Gross Federal Restr.	$7,500,000 2,500,000 5,000,000	$7,500,000 2,500,000 5,000,000
2. MANAGEMENT AND BUDGET Major Special Maintenance, Remodeling and Additions Lump sum account to finance regular and emergency repairs and remodeling of most State owned facilities.	Gross IDG Restr.	$4,800,000 2,000,000 2,800,000	$4,800,000 2,000,000 2,800,000
3. MILITARY AND VETERANS AFFAIRS a. Construction Authorizations · CampGrayling, new company headquarters building, $18,500,000 (100% Federal) · North Lansing (Baker-Olin) complex renovations for administrative and maintenance staffs, $25,000,000 (98% Federal/2%State) · CampGrayling, new machine gun range, $2,000,000 (100% federal). · Grand Rapids Veterans Home, life-safety renovations, $1,134,000 (65% Federal/35%State) · Jacobetti Veterans Home, life-safety renovations, $1,232,500 (65% Federal/35%State)	Gross Federal Restr.	$47,866,500 46,538,200 1,328,300	$47,866,500 46,538,200 1,328,300
b. Army Aviation Support Facility This provides final phase funding for construction of a new 110,500 sq. ft. helicopter support/maintenance/storage facility at Grand Ledge. More than 98% of the cost will be funded by federal monies. The Department anticipates receiving up to 22 additional Blackhawk helicopters requiring a new support facility.	Gross Federal	$9,200,000 9,200,000	$9,200,000 9,200,000
c. Remodeling, Additions, and Special Maintenance Lump sum account to finance regular and emergency repairs to departmental facilities.	Gross Federal	$5,592,000 5,592,000	$5,592,000 5,592,000
d. Land Acquisitions and Appraisals Lump sum contingency account to allow department to conduct appraisals and to purchase property as it becomes available.	Gross Restr.	$100,000 100,000	$100,000 100,000
4. NATURAL RESOURCES a. Boating Program, State Boating Facilities Field Initiatives This provides a lump sum account to support small to medium sized projects at state-owned boating access sites and harbors and docks. Anticipated projects include: · Cheboygan Forks, new boating access site, $410,000 · Fairhaven, access site renovations, $500,000 · Jasper Dairy Road, access site renovations, $300,000 · Bergland-Ontonagon, access site renovations, $200,000 · SaginawRiver, access site ramp and dredging, $100,000 · Lump sum contingency account, $490,000.	Gross Restr.	$2,000,000 2,000,000	$2,000,000 2,000,000
b. Boating Program,Local Harbors & Docks St. ClairMarina Rehabilitation, Grant-In-Aid Provides for federal matching funds to rehabilitate and upgrade this 40-year old marina. Apparently, the docking structure is rotting and needs to be replaced and the facility is notADA compliant.	Gross Federal	$3,000,000 3,000,000	$3,000,000 3,000,000
c. Charlevoix Marina Expansion, Grant-In-Aid Provide equally matching state funds for the expansion of this great lakes marina and replacing the existing seawall and dock. Project also entails construction of a new restroom/shower building and for utility upgrades.	Gross Restr.	$1,000,000 1,000,000	$1,000,000 1,000,000
d. Naubinway Marina Rehabilitation, Grant-In-Aid Provide equally matching state funds for the replacement of docks and pilings, a new ice suppression system, and harbor dredging.	Gross Restr.	$300,000 300,000	$300,000 300,000
e. Boating Program, Local Boating Access Sites KollenPark Boating Access Site, Grant-In-Aid Provide equally matching state funds for the relocation of this BAS.	Gross Restr.	$650,000 650,000	$650,000 650,000
f. Boating Program, State Boating Access Sites Crystal Lake Boating Access Site Continuing appropriation to construct a new boating access site on this lake inBenzieCounty. The total project cost is now estimated at $1.4 million.	Gross Restr.	$200,000 200,000	$200,000 200,000
g. Boating Program,StateHarbors & Docks Infrastructure Improvements & Engineering Studies Lump sum account for infrastructure improvements and engineering studies. These monies are used for preventive and special maintenance, electrical/utility upgrades, and engineering work at state-owned harbors and docks along the great lakes.	Gross Restr.	$1,750,000 1,750,000	$1,750,000 1,750,000
h. Boating Program,LocalHarbors & Docks Infrastructure Improvements & Engineering Studies Lump sum account for grants-in-aid to local units for infrastructure improvements and engineering studies. These monies are used for preventive and special maintenance, electrical/utility upgrades, and engineering work at locally owned harbors and docks along the great lakes.	Gross Restr.	$1,100,000 1,100,000	$1,100,000 1,100,000
i. State Parks Repair and Maintenance Lump sum account tofinance regular and emergency repairs at 95 State owned parks.	Gross Restr.	$1,000,000 1,000,000	$1,000,000 1,000,000
j. Forest Roads, Bridges, and Facilities Lump sum account tofinance regular and emergency repairs on State forest lands.	Gross Restr.	$900,000 900,000	$900,000 900,000
k. Natural Resources Trust Fund Projects Provides funding for 15 state/local acquisition projects and 26 state/local development projects for recreational purposes.	Gross Restr.	$32,184,000 32,184,000	$32,184,000 32,184,000
l. State Game and Wildlife Area Maintenance Funds for maintaining wildlife habitat at State game areas.	Gross Federal	$550,000 550,000	$550,000 550,000
5. DEPARTMENT OF TRANSPORTATION a. New Houghton Maintenance Garage Authorize the construction of a new 22,000 sq. ft. facility to house MDOT employees and equipment. HoughtonCounty is no longer maintaining the state trunkline in that county.	Gross Restr.	$2,230,000 2,230,000	$2,230,000 2,230,000
b. Airport Safety and Protection Plan These funds support security/general improvement projects at more than 100 local and State airports.	Gross Federal Local Restr.	$202,046,200 160,000,000 22,790,000 19,256,200	$202,046,200 160,000,000 22,790,000 19,256,200
c. New Equipment Storage Buildings Allows for the construction of various sized buildings as follows: · Brighton cold storage building, $350,000 · Atlanta cold storage building, $300,000 · L’Anse bulk material facility, $200,000 · Detroit electronic equipment maintenance facility, $100,000 · Bay County pole building, $56,000	Gross Restr.	$1,006,000 1,006,000	$1,006,000 1,006,000
d. SaltStorageBuildings, Contract Agencies Authorization to continue constructing salt and sand/salt mixture storage buildings, and brine run-off control systems for county and municipal maintenance garages across the state. The MDOT finances a portion of these costs depending on how much of the state trunkline the county or city maintains.	Gross Restr.	$1,900,000 1,900,000	$1,900,000 1,900,000
e. Salt Storage Buildings, Various State Owned Garages Authorization to continue constructing salt and sand/salt mixture storage buildings, and brine run-off control systems for MDOT maintenance garages across the state.	Gross Restr.	$1,100,000 1,100,000	$1,100,000 1,100,000
f. Mio Maintenance Garage Renovation/Expansion Authorize the construction of a building addition and renovation of the existing maintenance facility.	Gross Restr.	$1,471,000 1,471,000	$1,471,000 1,471,000
g. Atlanta Maintenance Garage Renovation/Expansion, Phase II Final phase funding for expanding the Atlanta Maintenance Garage due to the re-location of the Alpena and Hillman crews, equipment, supplies, and materials.	Gross Restr.	$1,826,000 1,826,000	$1,826,000 1,826,000
h. Aeronautics Facility Security Authorizes renovations/repairs for the facility apron, roof, parking lot, and security improvements.	Gross Restr.	$400,000 400,000	$400,000 400,000
i. Detroit Maintenance Garage, Phase II These funds will be used for completing site development of the new Detroit Maintenance Garage that was originally authorized for construction in FY 2001. The total project cost will now be $4,030,000.	Gross Restr.	$530,000 530,000	$530,000 530,000
6. STATE BUILDING AUTHORITY FINANCED CONSTRUCTION PROJECTS This provides cost and construction authorizations for the Glen Oaks CC Science Building renovation project. This is a $3.2 million project with the financing split evenly between the State and College. The College received a planning authorization for this project under PA 193 of 2003. Both the DMB and JCOS have reviewed and approved the planning documents for this project.	Gross GF/GP	$100 $100	$100 $100
Sec. 105. CIVIL RIGHTS 1. Additional Federal Funds Authorizes the Department to receive additional federal grant funding made available from the United States Department of Housing and Urban Development ($190,000) and the Equal Employment Opportunity Commission ($123,700).	Gross Federal	$313,700 313,700	$313,700 313,700
Sec. 106. COMMUNITY HEALTH 1. Provider Tax on Specialty Prepaid Health Plans Increases funds for Medicaid Mental Health and Substance Abuse Services by $25.5 million to reflect a capitation rate increase and offset Executive Order reductions. Anticipating a 6% provider tax on specialty prepaid health plans, effectiveAugust 1, 2005, $14.4 million would be realized in state restricted revenue. Provider tax revenue totaling $8.4 million would be utilized to draw down $11.1 million in federal Medicaid revenue. The remaining $6.0 million in tax revenue would replace Executive Order reductions for mental health and substance abuse services.	Gross Federal Restr.	$25,490,000 11,052,800 14,437,200	$25,490,000 11,052,800 14,437,200
2. Hospital Quality Assurance Assessment Expansion Provides $82.0 million gross ($36.2 million Restricted) for FY 2004 payments to hospitals for the Quality Assurance Assessment Program (QAAP). Although this same authorization request was approved by the Legislature in August of 2004, PA 309 of 2004, the hospitals could not be paid because the State Plan amendment for this expansion did not have federal approval by the close of FY 2004. This supplemental request increases the hospital quality assurance assessment program to the 6% maximum allowable amount of $259.5 million in FY 2004.	Gross Federal Restr.	$82,000,000 45,829,800 $36,170,200	$82,000,000 45,829,800 $36,170,200
3. Children's Special Health Care Services & Medicaid Base Adjustments Provides an additional $19.3 million Gross ($11.1 million GF/GP) for the Children's Special Health Care Services Medical Care and Treatment line along with $66.3 million ($28.7 million GF/GP) for Medicaid appropriation lines within the Medical Services unit. These authorization increases reflect continued Medicaid caseload growth above the appropriated level. There are further adjustments between the top ten Medicaid appropriation lines to align funding with anticipated spending.	Gross Federal GF/GP	$85,631,400 45,816,500 $39,814,900	$85,631,400 45,816,500 $39,814,900
4. Additional State Restricted and Local Revenue An additional $25.9 million of restricted authorization is requested for the expenditure of Medicaid Benefits Trust Fund revenue within the Medical Services unit. By increasing the monthly payment agreement amount for families receiving services within the Children's Special Health Care Services program, $450,000 of restricted revenue would become available. This payment agreement change would affect eligible families with incomes over 250% of the federal poverty level. Local revenues have been identified to fund school and community-based adolescent health clinics (teen health centers) in the amount of $3,665,000. Finally, $3.0 million of restricted revenue authorization is requested to expend proceeds from an antitrust case settlement with the Bristol-Myers Squibb Company.	Gross Local Restr.	$33,015,000 3,665,000 29,350,000	$33,015,000 3,665,000 29,350,000
5. University Disproportionate Share Payments Increases federal, local & private funding authorization within the Special Adjustor Payments appropriation line to provide Medicaid disproportionate share (DSH) payments to theUniversity ofDetroit Dental Clinic and the Wayne State University Psychiatric Residency programs. These federal funds will offset GF/GP currently found in the higher education budget which historically has supported dental and mental health care services to low-income populations.	Gross Federal Local Private	$17,903,200 10,152,900 4,279,300 3,471,000	$17,903,200 10,152,900 4,279,300 3,471,000
6. Medicaid Modernization Act (MMA) - Education & Outreach Grant Adds $722,000 of federal Medicaid Modernization Act funding to the Medical Services Administration appropriation line providing education and outreach for intended beneficiaries of the new Medicare Part D drug benefit program which starts onJanuary 1, 2006. Moneys are available to states with pharmaceutical assistance programs, such asMichigan's Elder Prescription Insurance Coverage (EPIC) program.	Gross Federal	$722,000 722,000	$722,000 722,000
7. Replacement of GF/GP Replaces a proposed Executive Order (EO) GF/GP reduction of $137,000 for Departmental Administration and Management line item with available Health Professional Regulation Fund revenues. Replaces proposed EO GF/GP reduction of $500,000 for Immunization Local Agreements line item for vaccine costs with available state restricted interest income from the Pharmaceutical Products Fund, a fund related to the 1999 sale of the Michigan Biologic Products Institute, now known as Bioport.	Gross Restr.	$637,000 637,000	$637,000 637,000
8. CMH Non-Medicaid Services. Redirects $1.4 million GF/GP from CMH Non-Medicaid Services to CMHSP, Purchase of State Services Contracts since CMHSPs are not projected to spend mental health risk pool dollars set aside in FY 2004-05.	Gross GF/GP	$0 $0	$0 $0
Sec. 107. CORRECTIONS 1. New Federal Rape Elimination Grant Appropriates monies received from a Department of Justice discretionary grant program developed under the Prison Rape Elimination Act of 2003; funding is offered to prevent, investigate, and prosecute incidents of prison rape. Grant to be used to design, develop, and provide training for custody, investigative, and health care staff, and to provide technical assistance to law enforcement and prosecutors.	Gross Federal	$1,000,000 1,000,000	$1,000,000 1,000,000
2. Restricted Funds to Replace EO GF/GP Reduction Provides authority to spend additional funds assumed through increased collections of parole and probation oversight fees. Offsets complementary GF/GP reduction done by Executive Order.	Gross Restr.	$1,000,000 1,000,000	$1,000,000 1,000,000
3. Corrections Centers Assumes partial-year savings through closure of corrections center inBentonHarbor. Associated boilerplate language would forbid expenditure of funds on that center's lease afterJune 1, 2005.	Gross GF/GP	($271,000) ($271,000)	($271,000) ($271,000)
Sec. 108. EDUCATION 1. Michigan After-School Partnership Appropriates $75,000 in private funds from the Mott Foundation and $33,000 from the Robert Wood Johnson foundation to the Early Childhood Education and Family Services unit. The funds would support a full-time coordinator, required travel, and miscellaneous support costs of administering the Michigan After-School Partnership.	Gross Private	$108,000 108,000	$108,000 108,000
2. New Federal Migrant Education Program Appropriates funds to the School Improvement Services unit to administer the Migrant Education Program Consortium Grant Program. This program would coordinate efforts between states to provide professional development to teachers of migrant children, especially in the subject of mathematics.	Gross Federal	$20,000 20,000	$20,000 20,000
3 New Federal Safe and Drug-Free School Program Appropriates funds to the Grants Administration and School Support Services unit to administer a federal grant to enhance the ability to collect, analyze, and use data to improve the quality of drug and violence prevention programs. The grant would provide funding for the Center for Educational Performance and Information (CEPI) to oversee the development and implementation of an integrated data support system.	FTE Gross Federal	1.5 $717,200 717,200	1.5 $717,200 717,200
4. Federal Community Services Grant Appropriates funds to administer a grant awarded from the Title IV Safe andDrug-FreeSchools and Community Program. These formula grants go to local education agencies to provide programs under which expelled or suspended students are required to perform community service.	Gross Federal	$1,750,000 1,750,000	$1,750,000 1,750,000
5. Early Childhood Education Office Replaces General Funds reduced by Executive Order with restricted revenues from teacher certification fees.	Gross Restr.	$165,000 165,000	$165,000 165,000
6. Office of School Finance and School Replaces General Funds reduced by Executive Order with federal funds. The federal funds would be used to support the Department's federal liaison within the office.	Gross Federal	$21,000 21,000	$21,000 21,000
Sec. 109. ENVIRONMENTAL QUALITY 1. Office of theGreat Lakes Federal grant funds would be authorized for the aquatic nuisance species management plan.	Gross Restr.	$20,000 20,000	$20,000 20,000
2. Executive Direction Federal grant funds would support the Co-chair of the technical resources group for the National Environmental Information Exchange Network (NEIEN). Matching funds are included in the FY 2004-05 appropriation.	Gross Federal	$85,000 85,000	$85,000 85,000
3. Department Support Services Air Emission Fee revenue would replace General Fund appropriations reduced in the Executive Order.	Gross Restr.	$200,000 200,000	$200,000 200,000
4. Air Quality Programs Oil and Gas Regulatory Fund revenue would replace General Fund appropriations reduced in the Executive Order.	Gross Restr.	$100,000 100,000	$100,000 100,000
5. Environmental Science and Services Intradepartmental charges would replace General Fund appropriations reduced in the Executive Order.	Gross IDT	$684,000 684,000	$684,000 684,000
6. Pollution Prevention and Technical Assistance Programs Federal grant funding for pollution prevention and technical assistance programs would be authorized.	Gross Federal	$200,000 200,000	$200,000 200,000
7. Geological and Land Management Land and Water Permit Fee revenue would replace General Fund appropriations reduced in the Executive Order.	Gross Restr.	$100,000 100,000	$100,000 100,000
8. Field Permitting and Project Assistance Appropriates EPA grant support for clean water program enforcement programs.	Gross Federal	$61,500 61,500	$61,500 61,500
9. Environmental Cleanup and Redevelopment These funds will be used to promote redevelopment and cleanup contaminated sites/facilities that pose an imminent/substantial threat to public health and safety.	Gross Restr.	$37,618,000 37,618,000	$37,618,000 37,618,000
10. State Site Cleanup Funds would be provided to cover the cleanup costs for state owned contaminated sites. The Brownfield Redevelopment Board makes the final determination of which sites would be addressed through this appropriation. Total cleanup costs could exceed $8.7 million.	Gross Restr.	$5,000,000 5,000,000	$5,000,000 5,000,000
11. Waste and Hazardous Materials Hazardous Materials Transportation Fund (50,000) and Environmental Pollution Prevention Fund (200,000) revenue would replace General Fund appropriations reduced in the Executive Order.	Gross Restr.	$250,000 250,000	$250,000 250,000
12. NPDES Nonstormwater Program Federal funds would be used to make needed improvements to the permit application and approval process. Matching funds are available from the existing FY 2004-05 appropriation.	Gross Federal	$400,000 400,000	$400,000 400,000
13. Environmental Health Program Swimming pool and campground inspection fee revenue, $721,000, would replace GF/GP funds reduced in FY 2004-05. Septage waste contingency funds, $35,000, would be used to provide continuing education courses for campground operators.	Gross Restr.	$756,000 756,000	$756,000 756,000
14. Criminal Investigations Oil and Gas Regulatory Fund revenue (186,800) and Scrap Tire Regulatory Fund revenue (201,800) would replace General Fund appropriations reduced in the Executive Order.	Gross Restr.	$388,600 388,600	$388,600 388,600
15. Criminal Investigations Federal Homeland Security grant funds would be appropriated for hazardous material handling workshops and to conduct water and wastewater system training exercises to evaluate existing emergency response plans.	Gross Federal	$288,000 288,000	$288,000 288,000
16. Coastal Management Grants Authorizes the expenditure of Federal grant funds to administer the Coastal Zone Management grant program.	Gross Federal	$200,000 200,000	$200,000 200,000
17. Great Lakes Research and Protection Grants Restores funding for the Wetlands Inventory Program, vetoed in the FY 2004-05 appropriation act (2004 PA350). The inventory is to be completed by December 2006.	Gross Restr.	$30,000 30,000	$30,000 30,000
18. Scrap Tire Grants This increase would allow the DEQ to award grants to all eligible applicants for scrap tire cleanup sites. Sufficient funds exist to support this request.	Gross Restr.	$1,750,000 1,750,000	$1,750,000 1,750,000
19. Voluntary Stormwater Permit Grants Reauthorizes Clean Michigan Initiative funding for local storm water runoff management projects.	Gross Restr.	$2,426,300 2,426,300	$2,426,300 2,426,300
20. Volunteer River, Stream, and Creek Cleanup Appropriates Specialty License Plate revenue to develop water quality standards for nutrients. Work would be done by researchers atMichiganStateUniversity.	Gross Restr.	$175,000 175,000	$175,000 175,000
21. Waterfront Redevelopment Program Reauthorizes Clean Michigan Initiative funding for the Lansing Riverwalk project.	Gross Restr.	$1,924,600 1,924,600	$1,924,600 1,924,600
Sec. 110. HISTORY, ARTS, AND LIBRARIES 1. Library of Michigan This increase in Federal grant support would be used to provide grants toMichigan libraries through a competitive grant program. AlsoFederal Library Services and Technology Act revenue would replace General Fund appropriations reduced in the Executive Order.	Gross Federal	$2,431,000 2,431,000	$2,431,000 2,431,000
2. Mackinac Island State Park Mackinac IslandState Park has been awarded a grant to create a new military medicine exhibit in the 1828FortMackinacPostHospital.	Gross Federal	$133,000 133,000	$133,000 133,000
3. Arts and Cultural Grants This allows the Department to provide $50,000 grants from the National Endowment for the Arts to theMichiganStateUniversityMuseum and to another organization for similar purposes.	Gross Federal	$100,000 100,000	$100,000 100,000
Sec. 111. HUMAN SERVICES 1. Child Care Fund The appropriation provides additional federal TANF funding for the Child Care Fund to replace GF/GP appropriation reductions done by Executive Order. The Child Care Fund program provides 50% state reimbursement to counties for eligible expenses related to the placement of abused/neglected youth and delinquent youth. TANF funds can be used to support in-home care placements for these youth.	Gross Federal	$5,300,000 5,300,000	$5,300,000 5,300,000
2. Child Support Automation An additional $2.0 million in Child Support incentive funds are added to the budget to replace GF/GP reductions done by Executive Order. The line supports information technology expenditures related to child support enforcement systems.	Gross Federal	$2,000,000 2,000,000	$2,000,000 2,000,000
3. Homeless Shelter Contracts Federal Temporary Assistance for Needy Families (TANF) funding is appropriated to replace the GF/GP reductions done by Executive Order. The line supports contract payments to the Salvation Army to provide emergency shelter to homeless individuals.	Gross Federal	$1,700,000 1,700,000	$1,700,000 1,700,000
Sec. 112. INFORMATION TECHNOLOGY 1. Public Protection Reflects an appropriation to the Department of State Police for reimbursement of project expenditures associated with the Michigan Public Safety Communications System, which is managed by the Department of Information Technology. The funding is available as a result of the Department of State Police's ability to sell excess property located at Michigan Public Safety Communications System tower sites, pursuant to 1997 PA 174 section 4.	Gross IDG	$741,500 741,500	$741,500 741,500
2. LEIN System Fees Reflects an appropriation to the Department of State Police to be used to cover increased operating costs for the Law Enforcement Information Network (LEIN). Operating costs have increased as a result of federal security and technical requirements for access to national crime information. The funding is available as a result of a new fee schedule that was approved in April 2004 by the Criminal Justice Information Systems Policy Council.	Gross IDG	$562,600 562,600	$562,600 562,600
Sec. 113. JUDICIARY 1. Restricted Funds to Replace GF/GP Appropriations Replaces GF/GP funding for court equity reimbursements with revenue from the Court Equity Fund. The Court Equity Fund receives statutory allocations from the justice system fund, the civil filing fee fund, the court fee fund, and the state court fund.	Gross Restr. GF/GP	$0 500,000 ($500,000)	$0 500,000 ($500,000)
2. Restricted Funds to Replace GF/GP Appropriations Replaces GF/GP funding for drug courts with revenue from the Drug Court Fund. The Drug Court Fund is funded by the Justice System Fund, which receives revenue from civil infraction assessments and statutory state costs in misdemeanor and felony cases.	Gross Restr. GF/GP	$0 46,000 ($46,000)	$0 46,000 ($46,000)
Sec. 114. LABOR AND ECONOMIC GROWTH 1. Restricted Funds to Replace EO GF/GP Reduction This supplemental appropriates available state restricted revenue to replace Executive Order general fund/general purpose reductions in the Tax Tribunal Operations and Code Enforcement and Fire Safety lines.	Gross Restr.	$402,000 402,000	$402,000 402,000
2. Low-income/Energy Efficiency Fund Sufficient fund balance exists to provide an additional round of grants in FY 2005 to meet increased demand for energy assistance from low-income residents.	Gross Restr.	$10,000,000 10,000,000	$10,000,000 10,000,000
3. Motor Carrier Fund A protracted law suit over a change in assessing the $10 per vehicle registration fee for out-of-state trucks was settled in favor of the plaintiffs, Yellow Transportation, Inc. and Schneider National Carriers, Inc. As a result, the Department is ordered by the Michigan Court of Claims to refund the excess fees paid plus interest.	Gross Restr.	$2,300,000 2,300,000	$2,300,000 2,300,000
4. Michigan Community Services Commission Subgrantees Provides grants of from $20,000 to $50,000 to support local volunteer resource centers that recruit and place volunteers and serve as community volunteer clearinghouses. Applicant local agency partners must match the grants on a dollar for dollar basis.	Gross GF/GP	$250,000 $250,000	$250,000 $250,000
5. Employment Training Services Utilizes additional available Federal funds forAmerica's Career Resource Network (ACRN) to provide career planning for high school students.	Gross Federal	$105,100 105,100	$105,100 105,100
Sec. 115. MANAGEMENT AND BUDGET 1. Building Operation Services Additional funding to cover an increase in rent payments for the One Division building in Grand Rapids, which is a private facility leased by DMB for use by multiple state agencies. Two floors of the building are being renovated to meet the needs of the federal Bankruptcy Court, which will be moving into the building in the summer. Instead of paying the renovation costs up front, they will be incorporated into the annul rent payment for the building and will be funded entirely with private funds.	Gross IDG	$201,500 201,500	$201,500 201,500
2. Litigation Payment Appropriates additional funds for the Attorney General to pay settlement costs to the Kikham Hanley PC Client Trust litigation.	Gross GF/GP	$0 $0	$735,000 $735,000
Sec. 116. MILITARY AND VETERANS AFFAIRS 1. Military Training Sites Provides federal revenues for maintenance, security contracts, communications costs, and personnel costs for federally funded state employees at military training sites and support facilities.	Gross Federal	$2,000,000 2,000,000	$2,000,000 2,000,000
2. Homeland Security Provides additional homeland security grants from the Michigan State Police for planning, training and responding to terrorist threats and incidents.	Gross IDG	$600,000 600,000	$600,000 600,000
3. Military Family Relief Fund Provides authorization for financial assistance to families of soldiers contending with financial difficulties due to active duty or line-of-duty related injuries. The Military Family Relief Fund Act, P.A. 363 of 2004, allows citizens to voluntarily contribute money to the fund through a state income tax check-off box and corporations have also been encouraged to donate money to the fund. This supplemental will allow the department to receive these donations and begin providing grants.	Gross Restr.	$500,000 500,000	$500,000 500,000
4. State Active Duty Provides authorization for reimbursement from the Mackinac Bridge Authority for National Guard troops who provide security for the Labor Day Mackinac Bridge Walk.	Gross Restr.	$15,000 15,000	$15,000 15,000
Sec. 117. NATURAL RESOURCES 1. Wildlife Management Federal Pittman-Robertson Grant funds would be used to purchase lands in 4 wildlife management areas. Matching funds would be provided by the Nature Conservancy and the Southwest Michigan Land Conservancy. Title to these lands would be held by these organizations.	Gross Federal	$2,514,000 2,514,000	$2,514,000 2,514,000
2. Fish Production Federal funds would be used for fish rearing and planning activities at the Department's 6 fish hatcheries, and to renovate the interpretive center Oden Fish Hatchery.	Gross Federal	$300,000 300,000	$300,000 300,000
3. Forest Management Planning Forest Development Funds would be appropriated for forest certification activities in DNR Forestry programs, and to coordinate the statewide forest habitat program.	FTE Gross Restr.	5.0 $590,000 590,000	5.0 $590,000 590,000
4. Recreational Boating Waterways Fund revenue would be appropriated to prepare the recently constructed Cedar River Harbor (near Menominee) for the planned 2005 spring opening.	Gross Restr.	130,000 130,000	130,000 130,000
5. Wildlife Management Forest Development Funds would be appropriated for forest certification activities in DNR Forestry programs, and to coordinate the statewide forest habitat program.	FTE Gross Restr.	1.0 $60,000 60,000	1.0 $60,000 60,000
Sec. 118. SECRETARY OF STATE 1. Central Records Includes authorization for the Department to receive additionalgrant monies made available from the United States Department of Transportation-National Highway Traffic Safety Administration. The grant funding is to be used to improve licensing standards and the state's ability to accept, correct, move, and withdraw conviction data electronically from the courts.	Gross Federal	$850,000 850,000	$850,000 850,000
2. Restricted Transportation Funds to Replace GF/GP Appropriations Appropriates Transportation Administration Collection Fund (TACF) revenue to restore Executive Order GF reductions. Legislation is necessary to redirect collection fee revenue from the Michigan Transportation Fund to the TACF.	Gross Restr.	$10,000,000 10,000,000	$10,000,000 10,000,000
3. Help America Vote Act Includes authorization for the Department to receive additional federal Help America Vote Act funding to be used to make barrier-free changes at election site locations.	Gross Federal	$300,000 300,000	$300,000 300,000
Sec. 119. STATE POLICE 1. Auto Theft Prevention Program Provides available Auto Theft Prevention Fund revenue as approved by the Auto Theft Prevention Authority board of directors for distribution of grants to local police agencies.	Gross Restr.	$1,165,000 1,165,000	$1,165,000 1,165,000
2. Highway Safety Information Provides federal Department of Transportation grant revenue for warehousing and distributing highway safety related public information materials. This grant is anticipated to be ongoing and renewed each fiscal year.	Gross Federal	$200,000 200,000	$200,000 200,000
3. Homeland Security Grant Provides additional federal Department of Homeland Security grant monies to interface differing criminal justice information computer systems into one network to access local and state records management systems. The State Police, Department of State,Oakland andKentCounty police agencies, the State Court Administrator, the Department of Corrections, and the Lansing Police Department will participate in this interface plan.	Gross Federal	$980,000 980,000	$980,000 980,000
4. Convicted Sex Offender Fees Provides appropriation from the Sex Offenders Registration Fund, a new state restricted revenue source from fees paid by convicted sex offenders under P.A. 237 of 2004, the Sex Offenders Registration Act. Under the Act, registered sex offenders are required to pay a $35 registration fee, of which the State Police will retain $25 and local law enforcement agencies will retain $10. Funding will be used for training, maintenance, and automation of a computerized database containing information about sex offenders registered in this state.	Gross Restr.	$500,000 500,000	$500,000 500,000
5. Restricted Funds to Replace EO GF/GP Reduction Replaces a $612,000 GF/GP reduction with available restricted fund sources for the DNA Analysis Program ($225,000) and the At-Post Troopers line item ($387,000).	Gross Restr.	$612,000 612,000	$612,000 612,000
6. Special Technology Grant Appropriates private donations from the SBC Foundation for a one-time special technology grant for the expansion and enhancement of the Amber Alert Network. This grant will purchase Emergency Alert System boxes and phone lines to allowMichigan broadcasting stations to receive the Amber Alerts. An Amber Alert website will be developed and training for broadcasters, law enforcement personnel, and citizens will also be paid from this grant.	Gross Private	$77,000 77,000	$77,000 77,000
7. Public Safety Communications System Reimbursement Appropriates revenue from the sale of excess property under Section 4 of P.A. 174 of 1997, which authorizes the Department of State Police to sell excess property at Michigan Public Safety Communications System tower sites. The Department of Information Technology manages the public safety communication system and a corresponding supplemental for the Department of Information Technology's administration unit is also requested.	Gross Restr.	$741,500 741,500	$741,500 741,500
8. LEIN System Fees Appropriates local Law Enforcement Information Network (LEIN) funding authorization in order to expend anticipated revenue due to a new fee schedule for local police and non-profit agencies that was approved in April 2004 by the Criminal Justice Information Systems Policy Council. The revenue will be used to cover increased LEIN operating costs resulting in federal security and technical requirements for access to national crime information.	Gross Local	$562,600 562,600	$562,600 562,600
Sec. 120. TRANSPORTATION Administrative Reductions and Efficiencies The Executive proposes reductions totaling $4.9 million from several FY 2004-05 administrative line items. The reductions would be made from the following fund sources: State Trunkline Fund (STF), $4.0 million; Michigan Transportation Fund (MTF), $202,500; and State Aeronautics Fund, $50,000. The $3.9 million of the STF reductions reflects the STF share of a proposed redirection of MTF revenue to the Department of State Transportation Administration Collection Fund. Detail of the proposed reductions is shown below.
1. Executive Direction – Office of Commission Audits The Office of Commission Audits is the internal audit function of the State Transportation Commission. Reductions taken primarily from salaries and wages, STF funding.	Gross Restr.	($167,900) (167,900)	($167,900) (167,900)
2. Finance, Contracts, and Support Services Reductions taken from Financial Operations, and Technical and Support Services lines, STF funding.	Gross Restr.	($452,900) (452,900)	($452,900) (452,900)
3. Transportation Planning Reductions taken from salaries and wages, Statewide Planning Services lines, MTF funding.	Gross Restr.	($202,500) (202,500)	($202,500) (202,500)
4. Design and Engineering Services Reductions taken from salaries and wages in Engineering Services line, $2.7 million; and Program Services line, $1.3 million, STF funding.	Gross Restr.	($3,955,700) (3,995,700)	($3,955,700) (3,995,700)
5. Aeronautics Services Reductions taken from Aviation Services lines, State Aeronautics Fund.	Gross Restr.	($50,000) (50,000)	($50,000) (50,000)
Sec. 121. TREASURY 1. Restricted Funds to Replace EO GF/GP Reduction A shift to restricted funds is proposed to offset GF/GP appropriation reductions included in the proposed Executive Order. The appropriation is financed with increased state restricted revenues from Municipal Finance Fees.	Gross Restr.	$143,200 143,200	$143,200 143,200
2. School Bond Loan Program Reform Appropriates available school bond fees revenue to reform the School Bond Loan Fund (SBLF) program to create a revolving loan fund. This restructuring will eliminate the school aid budget's debt service payments for school construction in FY 2005 and FY 2006. The Michigan Municipal Bond Authority will sell revenue bonds secured by SBLF's current loan portfolio to fund the revolving loan fund. The Department of Treasury will implement a web-based application process for districts to apply on-line and improve its loan program by updating loan evaluation methodologies. This reform will not impact existing bonds or loans.	Gross Restr.	$1,000,000 1,000,000	$1,000,000 1,000,000
3. Restricted Funds to Replace EO GF/GP Reduction Shifts the funding of the HR optimization program line item of the Banking and Management Services from GF/GP to the Delinquent Property Tax Collection Revenue funds. This shift replaces GF/GP appropriation reductions included in the proposed Executive Order.	Gross Restr.	$44,300 44,300	$44,300 44,300
4. Unclaimed Property Appropriates escheats revenue for implementation of an unclaimed property enforcement audit program. Pursuant to P.A. 29 of 1995, businesses are required to report and transfer unclaimed property to the state. Program would begin in March and include increased audit applications to businesses to increase compliance. The Department of Treasury anticipates the program would generate an estimated $2.5 million in the current year and $10.0 million in FY 2005-06.	Gross Restr.	$500,000 500,000	$500,000 500,000

2004-05 Budgetary Issues:

Executive

Senate

Sec. 102. AGRICULTURE

1. Food Safety and Quality Assurance

Recognizes federal grant to improve food emergency response readiness in the City ofDetroit. The department will conduct a community-based pilot project to develop consistent emergency response materials for both regulators and the food industry for use in community-wide emergencies.

Gross

Federal

$55,000

55,000

$55,000

55,000

2. Agriculture Pollution Prevention

Recognizes additional funding for program to protect surface and groundwater from pesticide-fertilizer contamination and to create buffer strips alongMichigan waterways.

Gross

Restr.

$310,000

310,000

$310,000

310,000

3 Groundwater and Freshwater Protection

Recognizes federal grant to allow the department to hire 20 full-time AmeriCorps members to work in communities on groundwater stewardship efforts.

Gross

Federal

$250,000

250,000

$250,000

250,000

4. Environmental Stewardship

Recognizes additional $37,000 provided from the Department of Environmental Quality for Department of Agriculture Right-to Farm activities in the Michigan Agriculture Environmental Assurance Program (MAEAP). The program works with produces to develop and promote cost-effective pollution prevention practices. Also recognizes a 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

IDG

Federal

$48,010

37,000

11,010

$48,000

37,000

11,000

5. Information Technology Services and Projects

Would substitute $692,500 GF/GP with State Services Fee Fund revenue.

Gross

Restr.

GF/GP

692,500

($692,500)

692,500

($692,500)

6. Building & Track Improvement – County and State Fairs

Would remove $692,500 State Services Fee Fund revenue from this line and substitute with a like amount from the Agriculture Equine Industry Development Fund.

Gross

Restr.

7. Restricted Fund to Replace EO GF/GP Reduction

Would appropriate licensing and inspection fees to offset $150,000 of GF/GP reduction proposed in the Executive Order.

Gross

Restr.

$150,000

150,000

$150,000

150,000

8. Restricted Fund to Replace EO GF/GP Reduction

Would appropriate Gasoline Inspection and Testing Fund revenue to offset $135,000 GF/GP reduction proposed in the Executive Order.

Gross

Restr.

$135,000

135,000

$135,000

135,000

Sec. 103. ATTORNEY GENERAL

1. Litigation Payment

Appropriates additional funds for the Attorney General to pay settlement costs to the Kikham Hanley PC Client Trust litigation.

Gross

GF/GP

$735,000

$735,000

2. Prosecuting Attorney's Coordinating Council

Includes authorization for the agency to receive additional federal Byrne grant funding.

Gross

Federal

$93,000

93,000

$93,000

93,000

Sec. 104. CAPITAL OUTLAY

1. AGRICULTURE

Farmland and Open Space Development Acquisition

Funds are used to purchase development rights of unique and critical farmland pursuant to statute.

Gross

Federal

Restr.

$7,500,000

2,500,000

5,000,000

$7,500,000

2,500,000

5,000,000

2. MANAGEMENT AND BUDGET

Major Special Maintenance, Remodeling and Additions

Lump sum account to finance regular and emergency repairs and remodeling of most State owned facilities.

Gross

IDG

Restr.

$4,800,000

2,000,000

2,800,000

$4,800,000

2,000,000

2,800,000

3. MILITARY AND VETERANS AFFAIRS

a. Construction Authorizations

· CampGrayling, new company headquarters building, $18,500,000 (100% Federal)

· North Lansing (Baker-Olin) complex renovations for administrative and maintenance staffs, $25,000,000 (98% Federal/2%State)

· CampGrayling, new machine gun range, $2,000,000 (100% federal).

· Grand Rapids Veterans Home, life-safety renovations, $1,134,000 (65% Federal/35%State)

· Jacobetti Veterans Home, life-safety renovations, $1,232,500 (65% Federal/35%State)

Gross

Federal

Restr.

$47,866,500

46,538,200

1,328,300

$47,866,500

46,538,200

1,328,300

b. Army Aviation Support Facility

This provides final phase funding for construction of a new 110,500 sq. ft. helicopter support/maintenance/storage facility at Grand Ledge. More than 98% of the cost will be funded by federal monies. The Department anticipates receiving up to 22 additional Blackhawk helicopters requiring a new support facility.

Gross

Federal

$9,200,000

9,200,000

$9,200,000

9,200,000

c. Remodeling, Additions, and Special Maintenance

Lump sum account to finance regular and emergency repairs to departmental facilities.

Gross

Federal

$5,592,000

5,592,000

$5,592,000

5,592,000

d. Land Acquisitions and Appraisals

Lump sum contingency account to allow department to conduct appraisals and to purchase property as it becomes available.

Gross

Restr.

$100,000

100,000

$100,000

100,000

4. NATURAL RESOURCES

a. Boating Program, State Boating Facilities

Field Initiatives

This provides a lump sum account to support small to medium sized projects at state-owned boating access sites and harbors and docks. Anticipated projects include:

· Cheboygan Forks, new boating access site, $410,000

· Fairhaven, access site renovations, $500,000

· Jasper Dairy Road, access site renovations, $300,000

· Bergland-Ontonagon, access site renovations, $200,000

· SaginawRiver, access site ramp and dredging, $100,000

· Lump sum contingency account, $490,000.

Gross

Restr.

$2,000,000

2,000,000

$2,000,000

2,000,000

b. Boating Program,Local Harbors & Docks

St. ClairMarina Rehabilitation, Grant-In-Aid

Provides for federal matching funds to rehabilitate and upgrade this 40-year old marina. Apparently, the docking structure is rotting and needs to be replaced and the facility is notADA compliant.

Gross

Federal

$3,000,000

3,000,000

$3,000,000

3,000,000

c. Charlevoix Marina Expansion, Grant-In-Aid

Provide equally matching state funds for the expansion of this great lakes marina and replacing the existing seawall and dock. Project also entails construction of a new restroom/shower building and for utility upgrades.

Gross

Restr.

$1,000,000

1,000,000

$1,000,000

1,000,000

d. Naubinway Marina Rehabilitation, Grant-In-Aid

Provide equally matching state funds for the replacement of docks and pilings, a new ice suppression system, and harbor dredging.

Gross

Restr.

$300,000

300,000

$300,000

300,000

e. Boating Program, Local Boating Access Sites

KollenPark Boating Access Site, Grant-In-Aid

Provide equally matching state funds for the relocation of this BAS.

Gross

Restr.

$650,000

650,000

$650,000

650,000

f. Boating Program, State Boating Access Sites

Crystal Lake Boating Access Site

Continuing appropriation to construct a new boating access site on this lake inBenzieCounty. The total project cost is now estimated at $1.4 million.

Gross

Restr.

$200,000

200,000

$200,000

200,000

g. Boating Program,StateHarbors & Docks

Infrastructure Improvements & Engineering Studies

Lump sum account for infrastructure improvements and engineering studies. These monies are used for preventive and special maintenance, electrical/utility upgrades, and engineering work at state-owned harbors and docks along the great lakes.

Gross

Restr.

$1,750,000

1,750,000

$1,750,000

1,750,000

h. Boating Program,LocalHarbors & Docks

Infrastructure Improvements & Engineering Studies

Lump sum account for grants-in-aid to local units for infrastructure improvements and engineering studies. These monies are used for preventive and special maintenance, electrical/utility upgrades, and engineering work at locally owned harbors and docks along the great lakes.

Gross

Restr.

$1,100,000

1,100,000

$1,100,000

1,100,000

i. State Parks Repair and Maintenance

Lump sum account tofinance regular and emergency repairs at 95 State owned parks.

Gross

Restr.

$1,000,000

1,000,000

$1,000,000

1,000,000

j. Forest Roads, Bridges, and Facilities

Lump sum account tofinance regular and emergency repairs on State forest lands.

Gross

Restr.

$900,000

900,000

$900,000

900,000

k. Natural Resources Trust Fund Projects

Provides funding for 15 state/local acquisition projects and 26 state/local development projects for recreational purposes.

Gross

Restr.

$32,184,000

32,184,000

$32,184,000

32,184,000

l. State Game and Wildlife Area Maintenance

Funds for maintaining wildlife habitat at State game areas.

Gross

Federal

$550,000

550,000

$550,000

550,000

5. DEPARTMENT OF TRANSPORTATION

a. New Houghton Maintenance Garage

Authorize the construction of a new 22,000 sq. ft. facility to house MDOT employees and equipment. HoughtonCounty is no longer maintaining the state trunkline in that county.

Gross

Restr.

$2,230,000

2,230,000

$2,230,000

2,230,000

b. Airport Safety and Protection Plan

These funds support security/general improvement projects at more than 100 local and State airports.

Gross

Federal

Local

Restr.

$202,046,200

160,000,000

22,790,000

19,256,200

$202,046,200

160,000,000

22,790,000

19,256,200

c. New Equipment Storage Buildings

Allows for the construction of various sized buildings as follows:

· Brighton cold storage building, $350,000

· Atlanta cold storage building, $300,000

· L’Anse bulk material facility, $200,000

· Detroit electronic equipment maintenance facility, $100,000

· Bay County pole building, $56,000

Gross

Restr.

$1,006,000

1,006,000

$1,006,000

1,006,000

d. SaltStorageBuildings, Contract Agencies

Authorization to continue constructing salt and sand/salt mixture storage buildings, and brine run-off control systems for county and municipal maintenance garages across the state. The MDOT finances a portion of these costs depending on how much of the state trunkline the county or city maintains.

Gross

Restr.

$1,900,000

1,900,000

$1,900,000

1,900,000

e. Salt Storage Buildings, Various State Owned Garages

Authorization to continue constructing salt and sand/salt mixture storage buildings, and brine run-off control systems for MDOT maintenance garages across the state.

Gross

Restr.

$1,100,000

1,100,000

$1,100,000

1,100,000

f. Mio Maintenance Garage Renovation/Expansion

Authorize the construction of a building addition and renovation of the existing maintenance facility.

Gross

Restr.

$1,471,000

1,471,000

$1,471,000

1,471,000

g. Atlanta Maintenance Garage Renovation/Expansion, Phase II

Final phase funding for expanding the Atlanta Maintenance Garage due to the re-location of the Alpena and Hillman crews, equipment, supplies, and materials.

Gross

Restr.

$1,826,000

1,826,000

$1,826,000

1,826,000

h. Aeronautics Facility Security

Authorizes renovations/repairs for the facility apron, roof, parking lot, and security improvements.

Gross

Restr.

$400,000

400,000

$400,000

400,000

i. Detroit Maintenance Garage, Phase II

These funds will be used for completing site development of the new Detroit Maintenance Garage that was originally authorized for construction in FY 2001. The total project cost will now be $4,030,000.

Gross

Restr.

$530,000

530,000

$530,000

530,000

6. STATE BUILDING AUTHORITY FINANCED CONSTRUCTION PROJECTS

This provides cost and construction authorizations for the Glen Oaks CC Science Building renovation project. This is a $3.2 million project with the financing split evenly between the State and College. The College received a planning authorization for this project under PA 193 of 2003. Both the DMB and JCOS have reviewed and approved the planning documents for this project.

Gross

GF/GP

$100

$100

$100

$100

Sec. 105. CIVIL RIGHTS

1. Additional Federal Funds

Authorizes the Department to receive additional federal grant funding made available from the United States Department of Housing and Urban Development ($190,000) and the Equal Employment Opportunity Commission ($123,700).

Gross

Federal

$313,700

313,700

$313,700

313,700

Sec. 106. COMMUNITY HEALTH

1. Provider Tax on Specialty Prepaid Health Plans

Increases funds for Medicaid Mental Health and Substance Abuse Services by $25.5 million to reflect a capitation rate increase and offset Executive Order reductions. Anticipating a 6% provider tax on specialty prepaid health plans, effectiveAugust 1, 2005, $14.4 million would be realized in state restricted revenue. Provider tax revenue totaling $8.4 million would be utilized to draw down $11.1 million in federal Medicaid revenue. The remaining $6.0 million in tax revenue would replace Executive Order reductions for mental health and substance abuse services.

Gross

Federal

Restr.

$25,490,000

11,052,800

14,437,200

$25,490,000

11,052,800

14,437,200

2. Hospital Quality Assurance Assessment Expansion

Provides $82.0 million gross ($36.2 million Restricted) for FY 2004 payments to hospitals for the Quality Assurance Assessment Program (QAAP). Although this same authorization request was approved by the Legislature in August of 2004, PA 309 of 2004, the hospitals could not be paid because the State Plan amendment for this expansion did not have federal approval by the close of FY 2004. This supplemental request increases the hospital quality assurance assessment program to the 6% maximum allowable amount of $259.5 million in FY 2004.

Gross

Federal

Restr.

$82,000,000

45,829,800

$36,170,200

$82,000,000

45,829,800

$36,170,200

3. Children's Special Health Care Services & Medicaid Base Adjustments

Provides an additional $19.3 million Gross ($11.1 million GF/GP) for the Children's Special Health Care Services Medical Care and Treatment line along with $66.3 million ($28.7 million GF/GP) for Medicaid appropriation lines within the Medical Services unit. These authorization increases reflect continued Medicaid caseload growth above the appropriated level. There are further adjustments between the top ten Medicaid appropriation lines to align funding with anticipated spending.

Gross

Federal

GF/GP

$85,631,400

45,816,500

$39,814,900

$85,631,400

45,816,500

$39,814,900

4. Additional State Restricted and Local Revenue

An additional $25.9 million of restricted authorization is requested for the expenditure of Medicaid Benefits Trust Fund revenue within the Medical Services unit. By increasing the monthly payment agreement amount for families receiving services within the Children's Special Health Care Services program, $450,000 of restricted revenue would become available. This payment agreement change would affect eligible families with incomes over 250% of the federal poverty level. Local revenues have been identified to fund school and community-based adolescent health clinics (teen health centers) in the amount of $3,665,000. Finally, $3.0 million of restricted revenue authorization is requested to expend proceeds from an antitrust case settlement with the Bristol-Myers Squibb Company.

Gross

Local

Restr.

$33,015,000

3,665,000

29,350,000

$33,015,000

3,665,000

29,350,000

5. University Disproportionate Share Payments

Increases federal, local & private funding authorization within the Special Adjustor Payments appropriation line to provide Medicaid disproportionate share (DSH) payments to theUniversity ofDetroit Dental Clinic and the Wayne State University Psychiatric Residency programs. These federal funds will offset GF/GP currently found in the higher education budget which historically has supported dental and mental health care services to low-income populations.

Gross

Federal

Local

Private

$17,903,200

10,152,900

4,279,300

3,471,000

$17,903,200

10,152,900

4,279,300

3,471,000

6. Medicaid Modernization Act (MMA) - Education & Outreach Grant

Adds $722,000 of federal Medicaid Modernization Act funding to the Medical Services Administration appropriation line providing education and outreach for intended beneficiaries of the new Medicare Part D drug benefit program which starts onJanuary 1, 2006. Moneys are available to states with pharmaceutical assistance programs, such asMichigan's Elder Prescription Insurance Coverage (EPIC) program.

Gross

Federal

$722,000

722,000

$722,000

722,000

7. Replacement of GF/GP

Replaces a proposed Executive Order (EO) GF/GP reduction of $137,000 for Departmental Administration and Management line item with available Health Professional Regulation Fund revenues. Replaces proposed EO GF/GP reduction of $500,000 for Immunization Local Agreements line item for vaccine costs with available state restricted interest income from the Pharmaceutical Products Fund, a fund related to the 1999 sale of the Michigan Biologic Products Institute, now known as Bioport.

Gross

Restr.

$637,000

637,000

$637,000

637,000

8. CMH Non-Medicaid Services.

Redirects $1.4 million GF/GP from CMH Non-Medicaid Services to CMHSP, Purchase of State Services Contracts since CMHSPs are not projected to spend mental health risk pool dollars set aside in FY 2004-05.

Gross

GF/GP

Sec. 107. CORRECTIONS

1. New Federal Rape Elimination Grant

Appropriates monies received from a Department of Justice discretionary grant program developed under the Prison Rape Elimination Act of 2003; funding is offered to prevent, investigate, and prosecute incidents of prison rape. Grant to be used to design, develop, and provide training for custody, investigative, and health care staff, and to provide technical assistance to law enforcement and prosecutors.

Gross

Federal

$1,000,000

1,000,000

$1,000,000

1,000,000

2. Restricted Funds to Replace EO GF/GP Reduction

Provides authority to spend additional funds assumed through increased collections of parole and probation oversight fees. Offsets complementary GF/GP reduction done by Executive Order.

Gross

Restr.

$1,000,000

1,000,000

$1,000,000

1,000,000

3. Corrections Centers

Assumes partial-year savings through closure of corrections center inBentonHarbor. Associated boilerplate language would forbid expenditure of funds on that center's lease afterJune 1, 2005.

Gross

GF/GP

($271,000)

($271,000)

($271,000)

($271,000)

Sec. 108. EDUCATION

1. Michigan After-School Partnership

Appropriates $75,000 in private funds from the Mott Foundation and $33,000 from the Robert Wood Johnson foundation to the Early Childhood Education and Family Services unit. The funds would support a full-time coordinator, required travel, and miscellaneous support costs of administering the Michigan After-School Partnership.

Gross

Private

$108,000

108,000

$108,000

108,000

2. New Federal Migrant Education Program

Appropriates funds to the School Improvement Services unit to administer the Migrant Education Program Consortium Grant Program. This program would coordinate efforts between states to provide professional development to teachers of migrant children, especially in the subject of mathematics.

Gross

Federal

$20,000

20,000

$20,000

20,000

3 New Federal Safe and Drug-Free School Program

Appropriates funds to the Grants Administration and School Support Services unit to administer a federal grant to enhance the ability to collect, analyze, and use data to improve the quality of drug and violence prevention programs. The grant would provide funding for the Center for Educational Performance and Information (CEPI) to oversee the development and implementation of an integrated data support system.

FTE

Gross

Federal

1.5

$717,200

717,200

1.5

$717,200

717,200

4. Federal Community Services Grant

Appropriates funds to administer a grant awarded from the Title IV Safe andDrug-FreeSchools and Community Program. These formula grants go to local education agencies to provide programs under which expelled or suspended students are required to perform community service.

Gross

Federal

$1,750,000

1,750,000

$1,750,000

1,750,000

5. Early Childhood Education Office

Replaces General Funds reduced by Executive Order with restricted revenues from teacher certification fees.

Gross

Restr.

$165,000

165,000

$165,000

165,000

6. Office of School Finance and School

Replaces General Funds reduced by Executive Order with federal funds. The federal funds would be used to support the Department's federal liaison within the office.

Gross

Federal

$21,000

21,000

$21,000

21,000

Sec. 109. ENVIRONMENTAL QUALITY

1. Office of theGreat Lakes

Federal grant funds would be authorized for the aquatic nuisance species management plan.

Gross

Restr.

$20,000

20,000

$20,000

20,000

2. Executive Direction

Federal grant funds would support the Co-chair of the technical resources group for the National Environmental Information Exchange Network (NEIEN). Matching funds are included in the FY 2004-05 appropriation.

Gross

Federal

$85,000

85,000

$85,000

85,000

3. Department Support Services

Air Emission Fee revenue would replace General Fund appropriations reduced in the Executive Order.

Gross

Restr.

$200,000

200,000

$200,000

200,000

4. Air Quality Programs

Oil and Gas Regulatory Fund revenue would replace General Fund appropriations reduced in the Executive Order.

Gross

Restr.

$100,000

100,000

$100,000

100,000

5. Environmental Science and Services

Intradepartmental charges would replace General Fund appropriations reduced in the Executive Order.

Gross

IDT

$684,000

684,000

$684,000

684,000

6. Pollution Prevention and Technical Assistance Programs

Federal grant funding for pollution prevention and technical assistance programs would be authorized.

Gross

Federal

$200,000

200,000

$200,000

200,000

7. Geological and Land Management

Land and Water Permit Fee revenue would replace General Fund appropriations reduced in the Executive Order.

Gross

Restr.

$100,000

100,000

$100,000

100,000

8. Field Permitting and Project Assistance

Appropriates EPA grant support for clean water program enforcement programs.

Gross

Federal

$61,500

61,500

$61,500

61,500

9. Environmental Cleanup and Redevelopment

These funds will be used to promote redevelopment and cleanup contaminated sites/facilities that pose an imminent/substantial threat to public health and safety.

Gross

Restr.

$37,618,000

37,618,000

$37,618,000

37,618,000

10. State Site Cleanup

Funds would be provided to cover the cleanup costs for state owned contaminated sites. The Brownfield Redevelopment Board makes the final determination of which sites would be addressed through this appropriation. Total cleanup costs could exceed $8.7 million.

Gross

Restr.

$5,000,000

5,000,000

$5,000,000

5,000,000

11. Waste and Hazardous Materials

Hazardous Materials Transportation Fund (50,000) and Environmental Pollution Prevention Fund (200,000) revenue would replace General Fund appropriations reduced in the Executive Order.

Gross

Restr.

$250,000

250,000

$250,000

250,000

12. NPDES Nonstormwater Program

Federal funds would be used to make needed improvements to the permit application and approval process. Matching funds are available from the existing FY 2004-05 appropriation.

Gross

Federal

$400,000

400,000

$400,000

400,000

13. Environmental Health Program

Swimming pool and campground inspection fee revenue, $721,000, would replace GF/GP funds reduced in FY 2004-05. Septage waste contingency funds, $35,000, would be used to provide continuing education courses for campground operators.

Gross

Restr.

$756,000

756,000

$756,000

756,000

14. Criminal Investigations

Oil and Gas Regulatory Fund revenue (186,800) and Scrap Tire Regulatory Fund revenue (201,800) would replace General Fund appropriations reduced in the Executive Order.

Gross

Restr.

$388,600

388,600

$388,600

388,600

15. Criminal Investigations

Federal Homeland Security grant funds would be appropriated for hazardous material handling workshops and to conduct water and wastewater system training exercises to evaluate existing emergency response plans.

Gross

Federal

$288,000

288,000

$288,000

288,000

16. Coastal Management Grants

Authorizes the expenditure of Federal grant funds to administer the Coastal Zone Management grant program.

Gross

Federal

$200,000

200,000

$200,000

200,000

17. Great Lakes Research and Protection Grants

Restores funding for the Wetlands Inventory Program, vetoed in the FY 2004-05 appropriation act (2004 PA350). The inventory is to be completed by December 2006.

Gross

Restr.

$30,000

30,000

$30,000

30,000

18. Scrap Tire Grants

This increase would allow the DEQ to award grants to all eligible applicants for scrap tire cleanup sites. Sufficient funds exist to support this request.

Gross

Restr.

$1,750,000

1,750,000

$1,750,000

1,750,000

19. Voluntary Stormwater Permit Grants

Reauthorizes Clean Michigan Initiative funding for local storm water runoff management projects.

Gross

Restr.

$2,426,300

2,426,300

$2,426,300

2,426,300

20. Volunteer River, Stream, and Creek Cleanup

Appropriates Specialty License Plate revenue to develop water quality standards for nutrients. Work would be done by researchers atMichiganStateUniversity.

Gross

Restr.

$175,000

175,000

$175,000

175,000

21. Waterfront Redevelopment Program

Reauthorizes Clean Michigan Initiative funding for the Lansing Riverwalk project.

Gross

Restr.

$1,924,600

1,924,600

$1,924,600

1,924,600

Sec. 110. HISTORY, ARTS, AND LIBRARIES

1. Library of Michigan

This increase in Federal grant support would be used to provide grants toMichigan libraries through a competitive grant program. AlsoFederal Library Services and Technology Act revenue would replace General Fund appropriations reduced in the Executive Order.

Gross

Federal

$2,431,000

2,431,000

$2,431,000

2,431,000

2. Mackinac Island State Park

Mackinac IslandState Park has been awarded a grant to create a new military medicine exhibit in the 1828FortMackinacPostHospital.

Gross

Federal

$133,000

133,000

$133,000

133,000

3. Arts and Cultural Grants

This allows the Department to provide $50,000 grants from the National Endowment for the Arts to theMichiganStateUniversityMuseum and to another organization for similar purposes.

Gross

Federal

$100,000

100,000

$100,000

100,000

Sec. 111. HUMAN SERVICES

1. Child Care Fund

The appropriation provides additional federal TANF funding for the Child Care Fund to replace GF/GP appropriation reductions done by Executive Order. The Child Care Fund program provides 50% state reimbursement to counties for eligible expenses related to the placement of abused/neglected youth and delinquent youth. TANF funds can be used to support in-home care placements for these youth.

Gross

Federal

$5,300,000

5,300,000

$5,300,000

5,300,000

2. Child Support Automation

An additional $2.0 million in Child Support incentive funds are added to the budget to replace GF/GP reductions done by Executive Order. The line supports information technology expenditures related to child support enforcement systems.

Gross

Federal

$2,000,000

2,000,000

$2,000,000

2,000,000

3. Homeless Shelter Contracts

Federal Temporary Assistance for Needy Families (TANF) funding is appropriated to replace the GF/GP reductions done by Executive Order. The line supports contract payments to the Salvation Army to provide emergency shelter to homeless individuals.

Gross

Federal

$1,700,000

1,700,000

$1,700,000

1,700,000

Sec. 112. INFORMATION TECHNOLOGY

1. Public Protection

Reflects an appropriation to the Department of State Police for reimbursement of project expenditures associated with the Michigan Public Safety Communications System, which is managed by the Department of Information Technology. The funding is available as a result of the Department of State Police's ability to sell excess property located at Michigan Public Safety Communications System tower sites, pursuant to 1997 PA 174 section 4.

Gross

IDG

$741,500

741,500

$741,500

741,500

2. LEIN System Fees

Reflects an appropriation to the Department of State Police to be used to cover increased operating costs for the Law Enforcement Information Network (LEIN). Operating costs have increased as a result of federal security and technical requirements for access to national crime information. The funding is available as a result of a new fee schedule that was approved in April 2004 by the Criminal Justice Information Systems Policy Council.

Gross

IDG

$562,600

562,600

$562,600

562,600

Sec. 113. JUDICIARY

1. Restricted Funds to Replace GF/GP Appropriations

Replaces GF/GP funding for court equity reimbursements with revenue from the Court Equity Fund. The Court Equity Fund receives statutory allocations from the justice system fund, the civil filing fee fund, the court fee fund, and the state court fund.

Gross

Restr.

GF/GP

500,000

($500,000)

500,000

($500,000)

2. Restricted Funds to Replace GF/GP Appropriations

Replaces GF/GP funding for drug courts with revenue from the Drug Court Fund. The Drug Court Fund is funded by the Justice System Fund, which receives revenue from civil infraction assessments and statutory state costs in misdemeanor and felony cases.

Gross

Restr.

GF/GP

46,000

($46,000)

46,000

($46,000)

Sec. 114. LABOR AND ECONOMIC GROWTH

1. Restricted Funds to Replace EO GF/GP Reduction

This supplemental appropriates available state restricted revenue to replace Executive Order general fund/general purpose reductions in the Tax Tribunal Operations and Code Enforcement and Fire Safety lines.

Gross

Restr.

$402,000

402,000

$402,000

402,000

2. Low-income/Energy Efficiency Fund

Sufficient fund balance exists to provide an additional round of grants in FY 2005 to meet increased demand for energy assistance from low-income residents.

Gross

Restr.

$10,000,000

10,000,000

$10,000,000

10,000,000

3. Motor Carrier Fund

A protracted law suit over a change in assessing the $10 per vehicle registration fee for out-of-state trucks was settled in favor of the plaintiffs, Yellow Transportation, Inc. and Schneider National Carriers, Inc. As a result, the Department is ordered by the Michigan Court of Claims to refund the excess fees paid plus interest.

Gross

Restr.

$2,300,000

2,300,000

$2,300,000

2,300,000

4. Michigan Community Services Commission Subgrantees

Provides grants of from $20,000 to $50,000 to support local volunteer resource centers that recruit and place volunteers and serve as community volunteer clearinghouses. Applicant local agency partners must match the grants on a dollar for dollar basis.

Gross

GF/GP

$250,000

$250,000

$250,000

$250,000

5. Employment Training Services

Utilizes additional available Federal funds forAmerica's Career Resource Network (ACRN) to provide career planning for high school students.

Gross

Federal

$105,100

105,100

$105,100

105,100

Sec. 115. MANAGEMENT AND BUDGET

1. Building Operation Services

Additional funding to cover an increase in rent payments for the One Division building in Grand Rapids, which is a private facility leased by DMB for use by multiple state agencies. Two floors of the building are being renovated to meet the needs of the federal Bankruptcy Court, which will be moving into the building in the summer. Instead of paying the renovation costs up front, they will be incorporated into the annul rent payment for the building and will be funded entirely with private funds.

Gross

IDG

$201,500

201,500

$201,500

201,500

2. Litigation Payment

Appropriates additional funds for the Attorney General to pay settlement costs to the Kikham Hanley PC Client Trust litigation.

Gross

GF/GP

$735,000

$735,000

Sec. 116. MILITARY AND VETERANS AFFAIRS

1. Military Training Sites

Provides federal revenues for maintenance, security contracts, communications costs, and personnel costs for federally funded state employees at military training sites and support facilities.

Gross

Federal

$2,000,000

2,000,000

$2,000,000

2,000,000

2. Homeland Security

Provides additional homeland security grants from the Michigan State Police for planning, training and responding to terrorist threats and incidents.

Gross

IDG

$600,000

600,000

$600,000

600,000

3. Military Family Relief Fund

Provides authorization for financial assistance to families of soldiers contending with financial difficulties due to active duty or line-of-duty related injuries. The Military Family Relief Fund Act, P.A. 363 of 2004, allows citizens to voluntarily contribute money to the fund through a state income tax check-off box and corporations have also been encouraged to donate money to the fund. This supplemental will allow the department to receive these donations and begin providing grants.

Gross

Restr.

$500,000

500,000

$500,000

500,000

4. State Active Duty

Provides authorization for reimbursement from the Mackinac Bridge Authority for National Guard troops who provide security for the Labor Day Mackinac Bridge Walk.

Gross

Restr.

$15,000

15,000

$15,000

15,000

Sec. 117. NATURAL RESOURCES

1. Wildlife Management

Federal Pittman-Robertson Grant funds would be used to purchase lands in 4 wildlife management areas. Matching funds would be provided by the Nature Conservancy and the Southwest Michigan Land Conservancy. Title to these lands would be held by these organizations.

Gross

Federal

$2,514,000

2,514,000

$2,514,000

2,514,000

2. Fish Production

Federal funds would be used for fish rearing and planning activities at the Department's 6 fish hatcheries, and to renovate the interpretive center Oden Fish Hatchery.

Gross

Federal

$300,000

300,000

$300,000

300,000

3. Forest Management Planning

Forest Development Funds would be appropriated for forest certification activities in DNR Forestry programs, and to coordinate the statewide forest habitat program.

FTE

Gross

Restr.

5.0

$590,000

590,000

5.0

$590,000

590,000

4. Recreational Boating

Waterways Fund revenue would be appropriated to prepare the recently constructed Cedar River Harbor (near Menominee) for the planned 2005 spring opening.

Gross

Restr.

130,000

130,000

130,000

130,000

5. Wildlife Management

Forest Development Funds would be appropriated for forest certification activities in DNR Forestry programs, and to coordinate the statewide forest habitat program.

FTE

Gross

Restr.

1.0

$60,000

60,000

1.0

$60,000

60,000

Sec. 118. SECRETARY OF STATE

1. Central Records

Includes authorization for the Department to receive additionalgrant monies made available from the United States Department of Transportation-National Highway Traffic Safety Administration. The grant funding is to be used to improve licensing standards and the state's ability to accept, correct, move, and withdraw conviction data electronically from the courts.

Gross

Federal

$850,000

850,000

$850,000

850,000

2. Restricted Transportation Funds to Replace GF/GP Appropriations

Appropriates Transportation Administration Collection Fund (TACF) revenue to restore Executive Order GF reductions. Legislation is necessary to redirect collection fee revenue from the Michigan Transportation Fund to the TACF.

Gross

Restr.

$10,000,000

10,000,000

$10,000,000

10,000,000

3. Help America Vote Act

Includes authorization for the Department to receive additional federal Help America Vote Act funding to be used to make barrier-free changes at election site locations.

Gross

Federal

$300,000

300,000

$300,000

300,000

Sec. 119. STATE POLICE

1. Auto Theft Prevention Program

Provides available Auto Theft Prevention Fund revenue as approved by the Auto Theft Prevention Authority board of directors for distribution of grants to local police agencies.

Gross

Restr.

$1,165,000

1,165,000

$1,165,000

1,165,000

2. Highway Safety Information

Provides federal Department of Transportation grant revenue for warehousing and distributing highway safety related public information materials. This grant is anticipated to be ongoing and renewed each fiscal year.

Gross

Federal

$200,000

200,000

$200,000

200,000

3. Homeland Security Grant

Provides additional federal Department of Homeland Security grant monies to interface differing criminal justice information computer systems into one network to access local and state records management systems. The State Police, Department of State,Oakland andKentCounty police agencies, the State Court Administrator, the Department of Corrections, and the Lansing Police Department will participate in this interface plan.

Gross

Federal

$980,000

980,000

$980,000

980,000

4. Convicted Sex Offender Fees

Provides appropriation from the Sex Offenders Registration Fund, a new state restricted revenue source from fees paid by convicted sex offenders under P.A. 237 of 2004, the Sex Offenders Registration Act. Under the Act, registered sex offenders are required to pay a $35 registration fee, of which the State Police will retain $25 and local law enforcement agencies will retain $10. Funding will be used for training, maintenance, and automation of a computerized database containing information about sex offenders registered in this state.

Gross

Restr.

$500,000

500,000

$500,000

500,000

5. Restricted Funds to Replace EO GF/GP Reduction

Replaces a $612,000 GF/GP reduction with available restricted fund sources for the DNA Analysis Program ($225,000) and the At-Post Troopers line item ($387,000).

Gross

Restr.

$612,000

612,000

$612,000

612,000

6. Special Technology Grant

Appropriates private donations from the SBC Foundation for a one-time special technology grant for the expansion and enhancement of the Amber Alert Network. This grant will purchase Emergency Alert System boxes and phone lines to allowMichigan broadcasting stations to receive the Amber Alerts. An Amber Alert website will be developed and training for broadcasters, law enforcement personnel, and citizens will also be paid from this grant.

Gross

Private

$77,000

77,000

$77,000

77,000

7. Public Safety Communications System Reimbursement

Appropriates revenue from the sale of excess property under Section 4 of P.A. 174 of 1997, which authorizes the Department of State Police to sell excess property at Michigan Public Safety Communications System tower sites. The Department of Information Technology manages the public safety communication system and a corresponding supplemental for the Department of Information Technology's administration unit is also requested.

Gross

Restr.

$741,500

741,500

$741,500

741,500

8. LEIN System Fees

Appropriates local Law Enforcement Information Network (LEIN) funding authorization in order to expend anticipated revenue due to a new fee schedule for local police and non-profit agencies that was approved in April 2004 by the Criminal Justice Information Systems Policy Council. The revenue will be used to cover increased LEIN operating costs resulting in federal security and technical requirements for access to national crime information.

Gross

Local

$562,600

562,600

$562,600

562,600

Sec. 120. TRANSPORTATION

Administrative Reductions and Efficiencies

The Executive proposes reductions totaling $4.9 million from several FY 2004-05 administrative line items. The reductions would be made from the following fund sources: State Trunkline Fund (STF), $4.0 million; Michigan Transportation Fund (MTF), $202,500; and State Aeronautics Fund, $50,000. The $3.9 million of the STF reductions reflects the STF share of a proposed redirection of MTF revenue to the Department of State Transportation Administration Collection Fund. Detail of the proposed reductions is shown below.

1. Executive Direction – Office of Commission Audits

The Office of Commission Audits is the internal audit function of the State Transportation Commission. Reductions taken primarily from salaries and wages, STF funding.

Gross

Restr.

($167,900)

(167,900)

($167,900)

(167,900)

2. Finance, Contracts, and Support Services

Reductions taken from Financial Operations, and Technical and Support Services lines, STF funding.

Gross

Restr.

($452,900)

(452,900)

($452,900)

(452,900)

3. Transportation Planning

Reductions taken from salaries and wages, Statewide Planning Services lines, MTF funding.

Gross

Restr.

($202,500)

(202,500)

($202,500)

(202,500)

4. Design and Engineering Services

Reductions taken from salaries and wages in Engineering Services line, $2.7 million; and Program Services line, $1.3 million, STF funding.

Gross

Restr.

($3,955,700)

(3,995,700)

($3,955,700)

(3,995,700)

5. Aeronautics Services

Reductions taken from Aviation Services lines, State Aeronautics Fund.

Gross

Restr.

($50,000)

(50,000)

($50,000)

(50,000)

Sec. 121. TREASURY

1. Restricted Funds to Replace EO GF/GP Reduction

A shift to restricted funds is proposed to offset GF/GP appropriation reductions included in the proposed Executive Order. The appropriation is financed with increased state restricted revenues from Municipal Finance Fees.

Gross

Restr.

$143,200

143,200

$143,200

143,200

2. School Bond Loan Program Reform

Appropriates available school bond fees revenue to reform the School Bond Loan Fund (SBLF) program to create a revolving loan fund. This restructuring will eliminate the school aid budget's debt service payments for school construction in FY 2005 and FY 2006. The Michigan Municipal Bond Authority will sell revenue bonds secured by SBLF's current loan portfolio to fund the revolving loan fund. The Department of Treasury will implement a web-based application process for districts to apply on-line and improve its loan program by updating loan evaluation methodologies. This reform will not impact existing bonds or loans.

Gross

Restr.

$1,000,000

1,000,000

$1,000,000

1,000,000

3. Restricted Funds to Replace EO GF/GP Reduction

Shifts the funding of the HR optimization program line item of the Banking and Management Services from GF/GP to the Delinquent Property Tax Collection Revenue funds. This shift replaces GF/GP appropriation reductions included in the proposed Executive Order.

Gross

Restr.

$44,300

44,300

$44,300

44,300

4. Unclaimed Property

Appropriates escheats revenue for implementation of an unclaimed property enforcement audit program. Pursuant to P.A. 29 of 1995, businesses are required to report and transfer unclaimed property to the state. Program would begin in March and include increased audit applications to businesses to increase compliance. The Department of Treasury anticipates the program would generate an estimated $2.5 million in the current year and $10.0 million in FY 2005-06.

Gross

Restr.

$500,000

500,000

$500,000

500,000

FY 2004-05 Boilerplate Issues:	Executive	Senate
GENERAL SECTIONS
Sec. 201. Standard Reporting Reports total state spending in this act and amounts considered payments to local units.	Included	Included
Sec. 202. Appropriations Subject to the Management and Budget Act Subjects appropriations to the Management and Budget Act, 1984 PA 431.	Included	Included
CAPITAL OUTLAY
Sec. 401. State Spending to Local Units Standard language on reporting a projected shortfall of state spending to local units.	Included	Included
Sec. 402. Definitions Definitions as used in this act.	Included	Included
Sec. 403. BuyMichigan Provides thatMichigan made goods and services are to be purchased if quality and price are equal.	Not Included	Included
Sec. 404. Internet Reporting Requires the departments to use the internet for fulfilling reporting requirements in this act and authorizes transmission of reports via e-mail.	Included	Included
Sec. 410. Agriculture Stipulates that appropriations for the Farmland and Open Space Preservation Program are to be used for purchasing development rights and grants as awarded by the Agriculture Preservation Fund Board.	Included
Sec. 415. Corrections Stipulates that maximum-security prisons constructed since 1986 have operational watchtowers.	Not Included	Included
Sec. 416. Corrections Stipulates that a new correctional facility site shall only be established by the Legislature.	Not Included	Included
Sec. 420. Capital Outlay Processes, Procedures, and Reports Refers to capital outlay project requirements under 1984 PA 431.	Included	Included
Sec. 421. Capital Outlay Processes, Procedures, and Reports Requires operating costs to be included with submitted planning documents.	Included	Included
Sec. 422. Capital Outlay Processes, Procedures, and Reports Outlines certain administrative procedures required for a project authorized for a community college or university.	Included	Included
Sec. 423. Capital Outlay Processes, Procedures, and Reports Requires DMB to provide various detailed reports to the JCOS and fiscal agencies with regard to status of each planning or construction project financed with State Building Authority (SBA) funds.	Included	Included
Sec. 424. Capital Outlay Processes, Procedures, and Reports Requires Director of DMB to notify JCOS before certain capital outlay expenditures occur.	Included	Included
Sec. 425. Capital Outlay Processes, Procedures, and Reports Provides that purpose, scope, and cost of a project not to be altered to meet match requirements.	Included	Included
Sec. 426. Capital Outlay Processes, Procedures, and Reports Requires DMB to develop a detailed comparative cost analysis on any project, including a lease that costs more than $1.0 million, as requested.	Not Included	Included
Sec. 427. Capital Outlay Processes, Procedures, and Reports Requires DMB to submit five-year capital outlay planning documents and project priority requests to the JCOS and fiscal agencies upon release of the Executive budget recommendation.	Included	Included
Sec. 430. Use and Finance Statements Sets minimum cost limit requiring JCOS approval of construction projects at community colleges, universities, and state agencies where no state monies are involved. Senate amendment imposes penalties for institutions violating certain JCOS policies.	Included	Included - Modified
Sec. 435. Lump Sums and Special Maintenance Allows DMB director to allocate funds from lump sum special maintenance appropriations; requires annual report.	Included	Included
Sec. 436. Lump Sums and Special Maintenance State agencies will provide notification to the JCOS regarding building demolitions. If the JCOS does not object within 30 days of notice, authorization is deemed granted. Senate amendment Provides that the 30 day notice does not apply when the Legislature is not in session for 15 days or more.	Included	Included - Modified
Sec. 437. Lump Sums and Special Maintenance Stipulates that state agencies may not spend more than $600,000 from operating accounts for special maintenance, remodeling, or additions unless authorized by law.	Included	Included - Modified
Sec. 440. Colleges and Universities Details certain administrative criteria for community colleges to meet; limits state funds for a project to 50% of the total cost for a community college project.	Included	Included
Sec. 441. Colleges and Universities Stipulates that if matching funds received are less than appropriated, state funds are to be reduced proportionally.	Included	Included
Sec. 442. Colleges and Universities Permits DMB director to require community colleges and universities to document matching funds and governing board approval.	Included	Included
Sec. 450. Department of Management and Budget Requires semi-annual report on all non-state owned leased space.	Included	Included
Sec. 455. Department of Military and Veterans Affairs Projects authorized in Part 1 are contingent upon receipt of federal and state restricted funds to finance the projects.	Included	Included
Sec. 456. Department of Military and Veterans Affairs Cancels a project authorized under PA 193 of 2003.	Included	Included
Sec. 460. Department of Natural Resources Provides for the general distribution and purpose of appropriated funds.	Included	Included
Sec. 461. Department of Natural Resources Requires annual status report of all DNR capital outlay projects.	Included	Included
Sec. 462. Department of Natural Resources Allows the DNR to transfer $1 million from the Harbor Development Fund to the Waterways Fund.	Included	Included
Sec. 463. Department of Natural Resources Requires local units to enter into agreements with the DNR in order to receive monies from the Natural Resources Trust Fund.	Included	Included
Sec. 464. Department of Natural Resources Natural Resources Trust Fund appropriations will not lapse back at the close of the current year and are available for expenditure for 3 years.	Included	Included
Sec. 470. Department of Transportation (MDOT) - Airport Projects Establishes general criteria, matching rates, limits on state funds; and, prohibits expansion ofWillowRunAirport runways.	Included	Included
Sec. 471. Department of Transportation Requires annual status report of MDOT capital outlay projects.	Included	Included
Sec. 472. Department of Transportation Ensures that funds appropriated for airport projects will be available for three years.	Included	Included
Sec. 480. Miscellaneous Directs that revenues from licenses issued under the antenna site management project be deposited in the antenna site management revolving fund.	Included	Included
Sec. 481. Miscellaneous Provides annual authorization to allow for expenditures from the (revolving) economic development fund for site preparation. These are state-owned sites that are surplus and being prepared for sale.	Included	Included
Sec. 482. Status of Triangle Property Lease Prohibits expenditure of any funds for a building, lease, or another development project on the so-called Triangle property located in the City ofLansing without Legislative authorization.	Not Included	Included
CORRECTIONS
Sec. 501. Suspends Lease Payments for theBentonHarbor CorrectionsCenter Prohibits expenditure of funds for lease payments afterJune 1, 2005.	Included	Included
ENVIRONMENTAL QUALITY
Sec. 601. Work Project Designation Specifies that any remaining unexpended funds at the end of the fiscal year from the Intradepartmental Transfers Revenues, Laboratory Services appropriation shall carryforward into FY 2005-06.	Included	Included
Sec. 602. Environmental Cleanup and Redevelopment Specifies sites for expenditure of cleanup and redevelopment funds.	Included	Included
Sec. 603. Environmental Cleanup and Redevelopment Designates these appropriations as work project accounts to ensure that funds willcarryforward into FY 2005-06.	Included	Included
HIGHER EDUCATION
Sec. 701. Restoration of Funding Reductions Operational funds for community colleges and universities cut by Executive Order will be restored if the May consensus revenue estimate is higher than the January estimate or, if not from the year-end General Fund balance. Combined, the restoration shall not exceed $30 million.	Included	Included
LABOR AND ECONOMIC GROWTH
Sec. 801. Technology Tri-Corridor: Life Sciences Initiative Authorizes an additional $5 million of funding from the original Life Sciences Initiative appropriation for business commercialization research opportunities in the state.		Included
REPEALERS
Sec. 1601.Sections 315 and 401 of 2004 PA 352 (Higher Education) and 510 (DLEG) are Repealed.	Included	Included
Sec. 315. Repeals language designating Dental Clinics Grant forUniversity ofDetroit Mercy.
Sec. 401. Repeals language earmarking funds fromWayneState's operations appropriation for Joseph F. Young, Sr. Psychiatric Research and Training Program.
Sec. 510. Appropriations for the Life Sciences Initiative, Department of Labor and Economic Growth
Tie Bar Enacting Section 1. This bill can not be enacted into law unless Senate Bill 235 is enacted into law.	Not Included	Included