Summary: HB 5796, Article 1; House Passed

AGRICULTURE

FY 2006-07

FY 2006-07

FY 2006-07

FY 2006-07

Difference:  House Sub.

from FY 2005-06 YTD

FY 2005-06 YTD

6/02/2006 *

Executive

House

Passed

Senate

Passed**

Enacted

Amount

%

IDG/IDT

10,368,200

10,382,700

10,382,700

10,382,700

14,500

.1

Federal

33,680,700

22,757,000

22,757,000

23,700,000

(10,923,700)

(32.4)

Local

0

0

0

0

0

0

Private

138,700

183,800

183,800

183,800

45,100

32.5

Restricted

49,977,100

48,399,000

48,549,000

48,449,000

571,900

1.2

GF/GP

28,887,700

30,062,500

32,821,500

30,438,300

3,933,900

13.6

Gross

121,052,400

111,785,000

114,694,000

113,153,800

(6,358,300)

(5.3)

FTEs

697.0

696.0

706.0

696.0

9.0

1.3

1.     Management Services (Executive)

Reduces GF/GP support by $72,400 to reflect transfer of certain human resource functions (and 1.0 FTE position) to HR Service Center as part of the HR Optimization Project.  Makes additional $100,000 GF/GP baseline reduction in “Human Resources and Finance & Administrative Services Divisions."  Provides $102,000 ($87,300 GF/GP) increase for economics.  House concurs with Executive.

FTEs

Gross

Restricted

GF/GP

35.5

$2,718,100

386,600

$2,331,500

(1.0)

($70,400)

14,700

($85,100)

2.     Statistical Reporting Service (Executive)

Reduces GF/GP support from current-year baseline by $35,000, includes $15,400 GF/GP economic increases.  House adds $50,000 from AEIDF for Equine survey.

Gross

Restricted

GF/GP

$345,600

0

$345,600

($30,400)

50,000

($19,600)

3.     Food Safety and Quality Assurance (Food and Dairy)

Reduces funding from licensing and inspection fees by $500,000 to more closely align with actual revenue expectations; replaces with $500,000 GF/GP.  Provides additional $465,200 GF/GP to fund economic increases.  House adds $1.0 million GF/GP and 10 FTE positions; unrolls Consumer and Industry education fund line (below).

FTEs

Gross

Federal

Restricted

GF/GP

107.0

$11,455,300

378,500

3,258,600

$7,818,200

10.0

$601,800

(140,400)

(773,000)

$1,515,200

4.     Consumer and Industry Food Safety Education

House adds new line item to recognize program which had been rolled up in to Food Safety and Quality Assurance.

Gross

Restricted

GF/GP

$0

0

$0

$250,000

250,000

$0

5.     Animal Heath & Welfare (Animal Industry)

Recognizes $57,600 additional federal Department of Agriculture revenue for emerging diseases and emergency management programs.  Eliminates Pseudorabies and swine brucellosis fund as fund source ($15,600 reduction from current year).  House adds $250,000 GF/GP.

FTEs

Gross

Federal

Restricted

GF/GP

22.5

$2,316,100

386,200

174,000

$1,755,900

0.0

$362,300

70,800

(10,800)

$302,300

6.     Bovine Tuberculosis (Animal Industry)

Reduces federal revenue in budget to more closely align with anticipated grant revenue.  Economic increases of $103,200 funded from GF/GP ($46,700) and state-restricted AEIDF ($43,300) revenue.  House adds $100,000 GF/GP.

FTEs

Gross

Federal

Restricted

GF/GP

26.5

$5,707,800

933,600

2,297,600

$2,476,600

0.0

($30,400)

(220,400)

43,300

$146,700

7      Pesticide and PlantPest Mgt. (Pesticide & PlantPest Mgt.)

Includes economic increases of $460,700 (Gross).  House adds $300,000 GF/GP more than Executive to support fruit and vegetable inspection program.

FTEs

Gross

Federal

Restricted

Private

GF/GP

119.8

$12,965,300

3,613,100

4,503,400

138,700

$4,710,100

0.0

$460,700

131,500

163,900

5,100

$160,200

8.     Emerald Ash Borer Program (Pesticide & PlantPest Mgt.)

Reflects continuing reduction in federal support for this program first included in FY 2002-03 budget.  House concurs with Executive.

FTEs

Gross

Federal

112.0

$23,660,600

23,660,600

(0.0)

($9,878,600)

(9,878,600)

9.    Michigan State University (Pesticide & Plant Pest Mgt.)

Eliminates line item for research and education on environmental protection plans for pesticide use.  Department indicates that federal grant is no longer available.  House concurs with Executive.

Gross

Federal

$210,000

210,000

($210,000)

(210,000)

10.   Environmental Stewardship(Environmental Stewardship)

Adds $350,000 GF/GP support for Conservation Reserve Enhancement Program (CREP), a program to address environmental issues of soil erosion, water quality, and wildlife habitat in ruralMichigan.  This replaces DEQ work project funds which expired.  Additional $103,200 GF/GP to fund economics.  House concurs with Executive.

FTEs

Gross

IDG

Federal

Restricted

GF/GP

32.7

$2,713,100

253,600

229,300

80,200

$2,150,000

0.0

$442,200

8,500

(3,600)

2,700

$434,600

11.   Migrant Housing (Environmental Stewardship)

Recognizes new federal revenue for migrant labor housing program (added to current year budget in SB 242).

Gross

Federal

GF/GP

$145,100

145,000

$100

$5,000

5,000

$0

12.   Local Conservation Districts (Environmental Stewardship)

Provides GF/GP support for the state's 80 local conservation districts.  House recommends $1.6 million which equates to $20,000 per district, ($19,200 in the current year).  Executive had recommended $18,200 – a 5% reduction from current year.

Gross

GF/GP

$1,516,800

$1,516,800

$83,200

$83,200

13.   Laboratory Services (Laboratory)

Transfers $133,400 in Refined Petroleum Fund revenue, and 2.0 FTE positions, from Consumer protection program line for motor fuel quality testing program.  Includes $64,800 in economic increases.  House concurs with Executive.

FTEs

Gross

IDG

Federal

Restricted

GF/GP

60.5

$5,908,300

183,100

904,400

2,116,000

$2,704,800

2.0

($211,400)

6,000

(531,200)

(8,600)

$322,400

14.   Consumer Protection Program (Laboratory)

Reflects transfer of $133,400 in Refined Petroleum Fund revenue, and 2.0 FTE positions from Laboratory services.  House concurs with Executive.

FTEs

Gross

Restricted

69.5

$4,883,800

4,883,800

(2.0)

$64,800

$64,800

15.   Diesel Fuel Quality Inspection Program (Laboratory)

House adds $100 GF/GP placeholder.

Gross

GF/GP

$0

$0

$100

$100

16.   Agriculture Development

Includes $40,000 in private revenue to replace GF/GP.  The department will request assistance from commodity commissions to help fund department activities in support of those commissions.  House adds $500,000 GF/GP.

FTEs

Gross

Private

Federal

Restricted

GF/GP

5.0

$868,800

0

199,000

450,700

$219,100

0.0

$533,000

40,000

7,500

3,800

$481,700

17.   Export Market Development

Executive recommends $50,000 – same as current year.  House adds $450,000 GF/GP.

Gross

GF/GP

$50,000

$0

$450,000

$450,000

18.   Horse Industry Programs

Includes $13.8 million from AEIDF for various line items within the Fairs and expositions appropriations unit, including $12.2 million for various horse programs, purses, and awards.  Aside from the proposed roll-up of Quarterhorse programs line into Licensed tracks – light horse racing, funding for specific line items unchanged from current year.  Appropriation unit includes $963,200 for Building and Track Improvements – County and State Fairs, and $700,000 Distribution of outstanding winning tickets line, both unchanged from current year.  House concurs with Executive.

Gross

Restricted

$13,844,800

13,844,800

$0

0

19.   Office of Racing Commissioner

Budget reflects transfer of $240,000 State Services Fee revenue from Department of Treasury to reflect transfer of pari-mutual race track audit function.  No new FTE positions added; the department indicates that this audit function is performed by contract auditors.  Balance of increase reflects economic adjustments.  House adds $100,000 from AEIDF to extend number of racing days.

Gross

Restricted

$3,296,400

3,296,400

$447,700

447,700

20.   Economics

Funds $2.5 million (net) for economic increases, including salaries and wages, insurance, retirement contributions, and building occupancy.  Negotiated salary and wage increases represent 3.5% of base salary and wages.  Increases are reflected in various department operating lines, including $68,200 for Information technology.

Gross

IDG

Federal

Private

Restricted

GF/GP

N/A

N/A

N/A

N/A

N/A

N/A

$2,545,200

14,500

411,300

5,100

951,900

$1,162,400

Sec. 302.    Inspection Fee Revenue --MODIFIES

Modifies subsection (2) as follows:

The department shall notify the senate and house of representatives appropriations subcommittees on agriculture and the senate and house fiscal agencies 30 days prior to proposing changes in fees authorized under this section or under section 5 of the market conditions act 1915 PA 91, MCL 285.35.

Sec. 305.    Equine Industry Report –NEW

Provides for survey of equine industry inMichigan.

Sec. 501.    Fruit and Vegetable Inspection Program –NEW

Establishes $1.0 million as base level of support for fruit and vegetable inspection program within PPPM, of which not less than $600,000 from GF/GP.

Sec. 706.    Agriculture Development and Export Market Development Report –NEW

Provides for new report, dueApril 1, 2007.

Sec. 707.    Agriculture Development Fund –NEW

Directs department to give due consideration to diversity ofMichigan agriculture in awarding grants.

Sec. 708.    Agriculture Development Fund Spending Authority –NEW

Provides spending authority for the department to receive and expend funds.

Sec. 709.    Grape and Wine Council Report –NEW

Provides reporting requirement for council activities, dueApril 1, 2007.

Sec. 710.    Select Michigan/Cherry Marketing –NEW

Sets floor funding of $250,000 for Select Michigan program within Agriculture Development.  Adds intent language regarding use of funds for cherry marketing.

Sec. 902.    Office of Racing Commission Racing Days –NEW

Indicates that $100,000 additional funding to be used to increase number of racing days to not less than the 2005 racing  calendar

Summary: HB 5796, Article 2;House Passed

COMMUNITY COLLEGES

FY 2006-07

FY 2006-07

Difference:  House

from FY 2005-06 YTD

FY 2005-06 YTD

Executive

Senate

House

   Subcommittee

Enacted

Amount

%

IDG/IDT

$0

$0

0

0

$0

--

Federal

0

0

0

0

0

--

Local

0

0

0

0

0

--

Private

0

0

0

0

0

--

Restricted

0

0

43,900,000

0

0

--

GF/GP

$281,552,400

287,129,400

243,229,400

288,780,700

$7,228,300

2.6

Gross

$281,552,400

$287,129,400

$287,129,400

$288,780,700

$7,228,300

2.6

FTEs

0.0

0.0

0.0

0.0

0.0

--

Major Budget Changes from FY 2005-06 YTD Appropriations

FY 2005-06 YTD

House Change

1.     Operations Funding

Includes $6,677,000 additional GF/GP funding which represents a 2.4% overall increase to appropriations for college operations compared to FY 2005-06.  Funding increasesWayneCountyCommunity College's appropriation by $225,000 restoring ½ of their FY 2003-04 reduction that was distributed to 3 other colleges.  An operations increase of $6,277,000 is distributed using the recommendation of the Performance Indicator Task Force.  The House increased the FY 2005-06 appropriations for two colleges, the operations increase reflects this additional funding for FY 2006-07 as well.

Gross

Restricted

GF/GP

$275,329,700

0

275,329,700

$6,677,000

0

$6,677,000

2.     Renaissance Zone Tax Reimbursement

Increases funds for statutorily-required reimbursement to colleges with renaissance zones in their districts by 10.3% to reflect expected increases in taxable value in those zones.

Gross

GF/GP

$2,900,000

$2,900,000

$300,000

$300,000

3.     Economic Development Grants

Includes additional appropriation for economic development            grants to be awarded to community colleges.

Gross

GF/GP

$0

$0

$251,100

$251,100

4.    Accelerated Licensing and Certification Program Grants

Appropriates funding to help fund the development and enhancement of accelerated licensing and certification programs.

Gross

GF/GP

$0

$0

$100

$100

5.     Nursing Program Expansion Grants

Includes funding to help foster the expansion of nursing education programs.

Gross

GF/GP

$0

$0

$100

$100

Sec. 208.    Entrepreneurship Curriculum – REVISED

Current-year language directs the Department of Labor and Economic Growth to work with community colleges to develop an accelerated entrepreneurship curriculum, including an associate degree, and requires an annual report.  Executive deletes the report requirement.  House and Senate require the report to be generated by February 1.

Sec. 220.    ITEM Funding– REVISED

House and Senate restore language deleted by the Executive that states legislative intent for restoration of Infrastructure, Technology, Equipment, and Maintenance (ITEM) funds and development of proposals and financing alternatives for special maintenance projects.  House and Senate delete language referring to special maintenance projects.

Sec. 237.    Payments in Lieu of Taxes Workgroup– DELETED

House, Senate, and Executive remove language that states legislative intent that a workgroup be formed to evaluate the possibility of making payments in lieu of taxes to colleges whose districts contain government-owned land.

Sec. 238.    Optional Retirement Plan– DELETED

House, Senate, and Executive remove language that states legislative intent that a workgroup be formed to evaluate the impact of expanding eligibility for the Optional Retirement Plan to include part-time faculty; requires report.

Sec. 242.    Payment in Lieu of Taxes – NEW

Houseand Senate include new language stating legislative intent that discussion regarding payments in lieu of taxes concerning community colleges be continued.        

Sec. 250.    Construction Contracts – NEW

House includes new language that prohibits community colleges from entering into construction contracts that discriminate based on specified criteria, including membership or nonmembership in any labor organization.

Sec. 304.    Gast-Mathieu Formula– REVISED

House includes new language recommending that the funding formula developed by the Performance Indicators Task Force be used for future funding distribution.  House and Senate require the data collected for the Gast-Mathieu formula continue to be collected and maintained. Executive deletes language concerning the Gast-Mathieu formula.

Sec. 305.    Implementation of the Performance Indicators Task Force Recommendations– NEW

House includes language stating legislative intent that the performance measures in the Performance Indicators Task Force Proposal and Recommendations Report be reviewed and more fully implemented in the future.

FY 2005-06 Supplemental

Houseincludes a $400,000 Gross and GF/GP increase in funding for the FY 2005-06 operations line item for two community colleges.  Bay de Noc Community College and Mid Michigan Community College were each appropriated an additional $200,000 for operations.

Summary: HB 5796, Article 3; House Passed

COMMUNITY HEALTH

FY 2006-07

FY 2006-07

FY 2006-07

FY 2006-07

FY 2006-07

Difference: House

from FY 2005-06 YTD

FY 2005-06 YTD

Executive

Senate

House

Enacted

Amount

%

IDG/IDT

$34,090,000

$37,286,100

$37,286,100

$37,286,100

3,196,100

9.4

Federal

5,533,597,400

6,103,178,000

6,088,988,300

5,823,755,500

290,158,100

5.2

Local

231,524,400

241,177,400

241,177,400

241,177,400

9,653,000

4.2

Private

59,073,800

61,326,900

61,326,900

63,826,900

4,753,100

8.0

Restricted

1,516,009,000

1,817,312,800

1,817,312,800

1,812,976,900

296,967,900

19.6

GF/GP

2,951,899,400

3,001,975,800

2,947,975,800

2,927,994,000

(23,905,400)

(0.8)

Gross

$10,326,194,000

$11,262,257,000

$11,194,067,300

$10,907,016,800

$580,822,800

5.6

FTEs

4,674.6

4,671.1

4,694.1

4,658.1

(16.5)

(0.4)

1.     Economic Adjustments

Includes $29.8 million gross ($13.4 million GF/GP) to fund 3.5% salary and wage increases for non-bargaining and unionized employees, and economic adjustments for defined benefit and contribution retirement, insurance, building occupancy, food, worker's compensation, and fuel and utility costs for FY 2006-07.

House proposal would lower the Executive recommended worker's compensation adjustment by $1.0 million gross (all GF/GP).

Gross

IDG

Federal

Restricted

Local

Private

GF/GP

N/A

N/A

N/A

N/A

N/A

N/A

N/A

$29,775,500

2,754,300

4,626,700

1,772,700

7,226,800

5,700

$13,389,300

2.     Actuarially Sound Capitation Rates

Increases capitation payment rates for Health Plan Services by 5.0% and Medicaid Mental Health and Substance Abuse Services by 2.0% ($88.0 million gross, $38.4 million GF/GP) to ensure rates are actuarially sound in FY 2006-07. $100 point of difference has been established for the Executive technical correction.

Gross

Federal

Restricted

Local

GF/GP

$3,546,870,800

2,013,657,500

395,317,800

29,737,100

$1,108,158,400

$87,951,700

49,587,100

0

0

$38,364,600

3.     Community Mental Health Direct Care Worker Increase

Adds $10.4 million gross ($4.5 million GF/GP) to finance a 2% wage increase for direct care workers in community mental health settings. (Sec. 405)

Gross

Federal

GF/GP

N/A

N/A

N/A

$10,400,000

5,863,500

$4,536,500

4.    Detroit-Wayne County CMHSP

Does not include Senate proposed Detroit-Wayne County CMHSP non-Medicaid funding reduction of $15.0 million contingent upon the CMHSP becoming an authority byOctober 1, 2006. Does not include House Appropriations Committee's proposal (Sec. 459) that would have lowered funding by $50.0 million if the CMHSP does not become an authority bySeptember 1, 2006.

Gross

GF/GP

$312,598,300

$312,598,300

$0

$0

5.    Salvation Army Harbor Light Program

Adds $400,000 gross (all GF/GP) for the Salvation Army Harbor Light Program.

Gross

Federal

GF/GP

$3,580,400

2,685,300

$895,100

$400,000

0

$400,000

6.     Children's Waiver Home Care Program

Reduces funding for Children's Waiver Home Care Program by $2.0 million gross ($872,400 GF/GP) to reflect current caseload.

Gross

Federal

GF/GP

$19,549,800

11,063,200

$8,486,600

($2,000,000)

(1,127,600)

($872,400)

7.     Cost Allocation Work Group

Allocates $100,000 for the Cost Allocation Work Group which has been charged with the responsibility of developing and implementing uniform standards and reporting of administrative costs by PIHPs, CMHSPs, and contracted providers.

Gross

GF/GP

$0

$0

$100,000

$100,000

8.     Multicultural Services

Adds $200,000 to the Multicultural Services line item for the Jewish Federation of Metropolitan Detroit. (Sec. 475)

Gross

GF/GP

$4,963,800

$4,963,800

$200,000

$200,000

9.     Public Health Funding Increases

Does not include Senate proposed GF/GP spending of $100,000 to establish a Methamphetamine Cleanup Fund, $100,000 to establish 211 Human Services Information Line, $100,000 for Parkinson's Disease programming, $100,000 for Huntington's Disease programming, $75,000 to establish Medication Management Pilot, $50,000 for Arthritis, and $25,000 for a Diabetes Management Pilot Project. Includes $100 GF/GP placeholder to establish a Methamphetamine Cleanup Fund. 

Gross

GF/GP

$0

$0

$100

$100

10.   Move Surgeon General Funding to Infant Mortality

Eliminates the Surgeon General position and transfers the related funding of $240,000 GF/GP to infant mortality projects.

Gross

GF/GP

$0

$0

$0

$0

11.   Vital Records

Increases Vital Records funding by $300,000 to support the vital records program including expenses related to revised official document printing standards required for homeland security purposes.

Gross

IDG-FIA

Federal

Restricted

GF/GP

$7,458,800

710,500

2,017,900

4,730,400

$0

$300,000

0

0

0

$300,000

12.   AIDS Drug Assistance Program

Adds $2.5 million of private funds revenue to the AIDS Drug Assistance Program for anticipated increase in total rebates from pharmaceutical manufacturers on AIDS and HIV medications.

Gross

Federal

Private

Restricted

GF/GP

$31,502,000

23,756,600

3,250,500

4,494,900

$0

$2,500,000

0

2,500,000

0

$0

13.   Ages 0-3 Early Childhood Secondary Prevention

Shifts all DCH funding for this program to the Department of Human Services budget to consolidate funding.

Gross

GF/GP

$524,000

$524,000

($524,000)

($524,000)

14.   Healthy Michigan Fund Adjustments

Reallocates HealthyMichigan Funds.  Increases are made for Nurse Family Partnership, diabetes and kidney program, lead poisoning prevention and WIC smoking reduction.  Funding reductions are made to projects for health disparities, infant mortality, and physical fitness.  Federal increase reflects Medicaid match on the Nurse Family Partnership funding.

Gross

Federal

Restricted

GF/GP

$43,512,700

0

43,512,700

$0

$1,138,300

1,100,000

38,300

$0

15.   Safe Delivery of Newborns Website

Adds funds for creation of a website regarding the Safe Delivery of Newborns Act (Sec. 1114).

Gross

GF/GP

$0

$0

$30,000

$30,000

16.   Ultrasound Equipment Fund

Appropriates $100,000 for Ultrasound Equipment Fund grants under Sec. 9141 of the Public Health Code (Sec. 1115).

Gross

GF/GP

$0

$0

$100,000

$100,000

17.   Anti-Drug Abuse andDrug Treatment Court Grants

Appropriates $1,235,100 GF/GP to support drug treatment court and other current program grants, replacing a portion of reduced federal funds.

Gross

Federal

GF/GP

$26,470,300

26,470,300

$0

($8,565,100)

(9,800,200)

$1,235,100

18. Michigan First Healthcare Plan

Adds $100 placeholder for anticipated federal funding that will be used to match existingMichigan funds to create the Michigan First Healthcare Plan, a plan to extend basic, low-cost health insurance coverage to 550,000 uninsuredMichigan residents.  State matching funds would be met by funds already spent inMichigan on health care for the uninsured.  This plan will require a waiver from the federal government and if approved is anticipated to beginApril 1, 2007.  (Sections 1501, 1502 & 1503)

Gross

Federal

GF/GP

$0

0

$0

$100

100

$0

19.   Medicaid Home Help Worker Minimum Wage Increase

Adds $15.9 million gross ($6.95 million GF/GP) to increase the minimum hourly wage for Medicaid home help workers, but retains the current wage amount for services provided by relatives. (Sec. 1691)

Gross

Federal

GF/GP

$186,060,500

105,291,600

$80,768,900

$15,945,300

8,990,000

$6,955,300

20.   Asset Lookback and Audit Savings

Reduces funding by $14.0 million gross ($7.0 million GF/GP) representing additional savings from Medicaid asset lookback and audit activity related to changes in the Federal Deficit Reduction Act.  Savings of $7.0 million GF/GP are reduced by $2.0 million GF/GP for additional staffing costs in both the Department of Human Services budget and the Medical Services Administration unit.

Gross

Federal

GF/GP

N/A

N/A

N/A

($14,047,700)

(8,047,700)

($6,000,000)

21.   Recovery of Pharmaceutical Overpayments

Recognizes savings of $22.9 million gross ($10.0 million GF/GP) from Medicaid pharmaceutical overpayment recoveries as identified in a recent report from the State Auditor General.

Gross

Federal

GF/GP

N/A

N/A

N/A

($22,924,900)

(12,924,900)

($10,000,000)

22.   Durable Medical Equipment

Institute a preferred provider list for durable medical equipment and recognize savings of $7.0 million gross ($3.1 million GF/GP). (Sec. 1735)

Gross

Federal

GF/GP

($1,926,300)

(1,090,100)

($836,200)

($7,000,000)

(3,946,600)

($3,053,400)

23.   Federal Changes in Asset Test for Medicaid Eligibility

Includes savings of $11.5 million gross ($5.0 million GF/GP) due to tightening of the asset transfer rules for long term care eligibility.  The federal Deficit Reduction Act included several provisions to reduce Medicaid costs at both the state and federal levels. (Sec. 1759)

Gross

Federal

GF/GP

N/A

N/A

N/A

($11,462,400)

(6,462,400)

($5,000,000)

24.   Copayments and Premiums Expansion

Recognizes savings of $5.9 million gross ($2.6 million GF/GP) through the increased use of copayments and premiums due to the expansion of cost-sharing in the federal Deficit Reduction Act.  (Sec. 1631 & Sec. 1737)

Gross

Federal

GF/GP

N/A

N/A

N/A

($5,900,000)

(3,326,400)

($2,573,600)

25.   Medicare Part D "Clawback"

Reduces estimated cost for Medicare part D eligible coverage based on updated expenditure data.

Gross

GF/GP

$174,855,500

$174,855,500

($15,096,000)

($15,096,000)

26.   Health Information Technology Initiative

Authorizes $9.5 million to finance health care information technology initiatives. (Sec. 1760 & Sec. 1763)

Gross

Federal

GF/GP

$0

0

$0

$9,500,000

2,250,000

$7,250,000

27.   Personal Care Supplement Increase

Increases the Medicaid personal care supplement paid to adult foster care facilities and homes for the aged by $10 per month. (Sec. 1746)

Gross

Federal

GF/GP

$23,344,800

13,210,800

$10,134,000

$852,000

480,400

$371,600

28.   Medicaid Optional Eligibility Changes

Eliminates optional Medicaid eligibility for 19-20 year olds, except former foster care cases, and parents/caretaker relatives. (Sec. 1646)

Gross

Federal

GF/GP

($131,730,200)

(74,269,500)

($57,460,700)

($131,730,200)

(74,269,500)

($57,460,700)

29.  Medicaid Physician Payment Rates

Provides for a 4% increase in Medicaid physician payment rates. (Sec. 1636)

Gross

Federal

GF/GP

$779,943,500

441,370,100

$338,573,400

$33,247,100

18,744,700

$14,502,400

30.   Specialized Case Management Program

Recognizes savings from implementation of a specialized case management program targeting the highest cost Medicaid patients. (Sec. 1756)

Gross

Federal

GF/GP

N/A

N/A

N/A

($5,000,000)

(2,819,000)

($2,181,000)

31.   Graduate Medical Education

Rejects the carve-in of graduate medical education (GME) payments to the Medicaid HMOs and partially restores prior reductions in GME.

Gross

Federal

GF/GP

$168,954,800

95,611,500

$73,343,300

$6,800,000

3,833,800

$2,966,200

32.   Non-Emergency Medical Transportation

Includes savings from implementation of a brokerage contract for Medicaid non-emergency medical transportation services. (Sec.1634)

Gross

Federal

GF/GP

$9,973,600

5,644,100

$4,329,500

($2,200,000)

(1,100,000)

($1,100,000)

33.   MIChild Premiums

Increases the monthly premium for the MIChild program from $5 to $10. (Sec. 1673)

Gross

Federal

GF/GP

($1,300,000)

(903,100)

($396,900)

($1,300,000)

(903,100)

($396,900)

34.   Pharmacy Quality Improvement Program

Increases the savings associated with the Pharmacy Quality Improvement Program by $3.0 million annually.

Gross

Federal

GF/GP

($9,214,500)

(5,214,500)

($4,000,000)

($3,000,000)

(1,691,400)

($1,308,600)

35.   Out-state Hospital/Pharmacy Dispensing Fee Increase

Contingency language in Sec.1765 authorizes $8.3 million for out-state hospitals if the federal approval of the $5.0 million DSH pool described in Sec. 1717 does not occur.  If the $5.0 million DSH pool is approved by the federal government, the $8.3 million shall be used to increase the Medicaid pharmacy dispensing fee by $0.62.

Gross

Federal

GF/GP

N/A

N/A

N/A

$8,311,800

4,686,200

$3,625,600

Sec. 423.  Funding for Substance Abuse Programs and Services  –MODIFIED

Specifies that the Department establish a workgroup to examine and review the source and expenditure of funds for substance abuse programs and services.  Also, requires the workgroup to develop and recommend cost-effective measures for the expenditure of funds and delivery of substance abuse programs and services. 

Sec. 450.  Audit and Reporting Requirements for CMHSPs –REPLACED

Mandates that the Department implement the recommendations of the workgroup on streamlining the audit and reporting requirements for CMHSPs or specialty prepaid health plans byOctober 1, 2006.

Sec. 460.  Uniform Standards for Reporting of Administrative Costs by CMHSPs –REPLACED

Requires the Department to fully implement the uniform definitions, standards, and reporting of administrative costs by prepaid inpatient health plans (PIHPs), CMHSPs, and contracted organized provider systems that receive payment or reimbursements from PIHPs and CMHSPs bySeptember 30, 2007.

Sec. 468.  Incorporation of Coordinating Agencies into CMH Authorities –NEW

Requires the Department to recommend changes in its criteria for the incorporation of a city, county, or regional substance abuse coordinating agency into a local community mental health authority.

Sec. 469. Funding Distribution Model for Coordinating Agencies– NEW

Directs the Department to implement a funding distribution model for coordinating agencies based on findings by the former substance abuse block grant workgroup no later thanOctober 31, 2006.

Sec. 470. Integration of Mental Health and Substance Abuse Services– NEW

Specifies that the Department establish written expectations, such as coordination and consolidation of administrative functions, for CMHSPs, PIHPs, coordinating agencies, and counties on the integration of mental health and substance abuse services.

Sec. 471. Administrative Costs for Coordinating Agencies– NEW

Limits administrative costs for coordinating agencies and the Salvation Army Harbor Light Program to a percentage of their total expenditures in FY 2004-05 or 9%, whichever is less.

Sec. 472. Retention of GF/GP by CMHSPs– NEW

Specifies that any GF/GP funds lapsed by CMHSPs are retained in the Community Health budget to improve mental health and substance abuse services. 

Sec. 474. Guardianship for Recipients– NEW

Requires the Department to ensure that each contract with a CMHSP or PIHP requires the CMHSP or PIHP to provide each recipient and his/her family with information regarding the different types of guardianship.

Sec. 804.  Hepatitis C Cooperative Program with Department of Corrections – NEW

Directs the Department to cooperate with Department of Corrections on data and information sharing regarding prisoners being released and Hepatitis C, related to implementation of theMichigan prisoner reentry initiative.  Requires a report byApril 1, 2007.

Sec. 1113.  Out-of-Wedlock Pregnancies – NEW

Establishes that funded family planning and pregnancy prevention providers shall discourage sexual activity outside of marriage, and report certain data and expenditures to the Department for an annual report.

Sec. 1152.  Lead Screening for Medicaid Children at WIC Sites – NEW

Establishes that all Medicaid children participating in the special supplemental food program for women, infants, and children receive lead screening testing.

Sec. 1301.  Crime Victim Assistance Services Grant Program– NEW

Establishes criteria for private nonprofit 501(c) (3) organizations for receipt of crime victim assistance services grants, exempting faith-based organizations and groups that provide medical care.  Directs the Department regarding types of victims for which services may be supported by the grant funds.

Sec. 1684.  Home and Community-Based Services (HCBS) Administrative Expenses – MODIFIED

Continues the FY 2005-06 requirement that the payment rate allocated for administrative expenses for HCBS waiver program be reduced by $2.00 per person per day, and that savings realized by this action be reallocated to increase enrollment in waiver program.  Requires report on the number of nursing home patients discharged who are subsequently enrolled in HCBS waiver program, and associated cost savings.

Sec. 1700.  Actuarially Sound Capitation Rates – DELETED

Requires Department to consult with Michigan Association of Health Plans and develop a plan to assure that Medicaid payment rates to HMOs in FY 2005-06 meet federal requirements for actuarially sound rates; plan shall be submitted by May 30, 2006.

Sec. 1738.  Medicaid Disproportionate Share (DSH) Cap Increase – NEW

Requires the Department to explore ways of increasing the federal cap for DSH payments.  If successful in raising the cap, the Department should consider additional DSH funding for county health plans and funding for trauma centers.

Sec. 1741.  Nursing Home Interim Payments – NEW

Requires the Department to continue to provide nursing homes the opportunity to receive interim payments upon their request and that that these payments are as similar to expected cost-settled payments as possible.

Sec. 1748.  Medicaid Long-Term Care Medication Management Pilot Project – NEW

Requires the Department to develop a Medicaid long-term care medication management pilot project for Medicaid patients in nursing home settings.

Sec. 1751.  Establishment of DRGs Based on Fee-For-Service and Health Plan Costs – NEW

Requires the Department to provide a report byApril 1, 2007, on establishing Medicaid diagnosis related group rates based on fee-for-service and health plan costs.

Sec. 1752.  Sharing of Third Party Liability Information With Health Plans – NEW

Requires the Department to provide Medicaid health plans with any information that may assist the health plan in determining whether another party may be responsible for the payment of health care benefits.

Sec. 1757.  Medicaid Applicants Illegally Residing In theUnited States– NEW

Requires the Department to direct the Department of Human Services (DHS) to require Medicaid applicants to prove that they are residing legally in theUnited States and if they are not, DHS shall bring the matter to the attention of the appropriate law enforcement agency.

Sec. 1758.  Illegal Immigrants Who Qualify for Medicaid – NEW

Requires the Department to provide a report byApril 1, 2007, on the number of illegal immigrants who qualify for Medicaid and the annual amount of expenditures on this population.

Sec. 1761.  Hospital QAAP Distribution of Payments Exceeding Upper Payment Limit– NEW

Requires the Department to distribute Medicaid access to care initiative payments (MACI) that exceed hospitals upper payment limits, to hospitals that meet certain conditions, most likely rural hospitals.

Sec. 1763.  Electronic Exchange of Health Information Pilot Project– NEW

Requires the Department to participate in a pilot project inSoutheast Michigan related to the electronic exchange of health information.

Sec. 1764.  Annual Certification of Actuarial Soundness of Medicaid Health Plan Rates– NEW

Requires the Department to annually certify that rates paid to Medicaid health plans are actuarially sound and to notify the House of Representatives, the Senate, and the fiscal agencies immediately upon rate certification and approval.

Summary: HB 5796, Article 4; House Passed

DEPARTMENT OF CORRECTIONS

FY 2006-07

FY 2006-07

FY 2006-07

FY 2006-07

FY 2006-07

House Change

from FY 2005-06 YTD

FY 2005-06 YTD

Executive

Senate

House

Enacted

Amount

%

IDG/IDT

$1,043,800

$1,238,400

$1,238,400

$1,238,400

$194,600

18.6

Federal

11,410,200

11,431,500

11,431,500

11,431,500

21,300

0.2

Local

411,700

420,900

420,900

420,900

9,200

2.2

Private

0

0

0

0

0

0.0

Restricted

66,590,000

68,775,700

68,775,700

68,775,700

2,185,700

3.3

GF/GP

1,780,650,700

1,865,555,000

1,865,555,000

1,835,555,000

54,904,300

3.1

Gross

$1,860,106,400

$1,947,421,500

$1,947,421,500

$1,917,421,500

$57,315,100

3.1

FTEs

17,525.2

17,828.5

17,828.5

17,828.5

303.3

1.7

Avg. Pop.

50,945

51,490

51,490

51,490

545

1.1

PRISON AND CAMP OPERATIONS

1.     Camp Brighton Closure, Other Bed Count Changes

Executive:  assumes closure of Camp Brighton, the state's only prison camp for women, and conversion of the Huron Valley technical rule violator center to a women's camp.  Overall, the budget recognizes 545 beds more than in the current year, and funds those beds utilizing funding from the Inmate Housing Fund line item (which includes funding for Camp Brighton), St. Louis Correctional Facility, and consent decree funding for the acute care units at Huron Valley.  Additional FTEs recognize the Huron Valley employees who moved from Community Health to Corrections upon MDOC takeover of facility operations.  Senate and House concurred.

Beds

FTEs

Gross

GF/GP

50,945

N/A

N/A

N/A

545

456.8

$0

$0

2.     Academic/Vocational Programs

House:  program reduction due to budgetary priorities and critical auditor general report.  (Note:  while current-year line item is $33.9 million, Executive and Senate funding for FY 2006-07 is $36.9 million due to economics and bed-related transfers from elsewhere in the budget.)

Gross

GF/GP

$33,860,700

$33,860,700

($8,672,600)

($8,672,600)

3.     Former Youth Correctional Facility

House:  inserted placeholder for former Michigan Youth Correctional Facility near Baldwin in Lake County.

Gross

GF/GP

$0

$0

$100

$100

4.     Corrections Security Inspectors

Executive:  standardizes numbers of inspectors across the department, generally allocating one inspector per facility, for savings of $1.5 million and 17.0 FTEs. Inspector responsibilities include checking for compliance with staffing and security protocols, conducting employee and prisoner investigations and disciplinary conferences, and handling union-management issues.  Senate and House concurred.

FTEs

Gross

GF/GP

N/A

N/A

N/A

(17.0)

($1,500,000)

($1,500,000)

5.     Equipment and Special Maintenance

Executive:  provides additional $425,500 to upgrade electronic security equipment at various facilities, and incorporates a one-time fund shift of $2.0 million to capital outlay, to enable special maintenance projects to be funded through that budget.  Senate:  concurred.  House:  further reduced by $54,000, leaving the $425,500 requested for electronic security upgrades.

Gross

GF/GP

$2,054,000

$2,054,000

($1,574,500)

($1,574,500)

6.     High-security Pay Adjustments

Executive:  recognizes savings through elimination of high-security pay for correctional transportation officers ($207,000) and corrections officers at Riverside ($98,200), where security levels were recently reduced.  Senate and House concurred.

Gross

GF/GP

N/A

N/A

($305,200)

($305,200)

PRISONER HEALTH AND MENTAL HEALTH CARE

7.     Hadix Consent Decree – Medical Services

Executive: to comply with new Hadix consent decree requirements, adds funding for six physicians to increase physician coverage at acute and ambulatory units at the Jackson Complex.  Physician services are provided through contract with Correctional Medical Services, Inc.  Senate and House  concurred.

FTEs

Gross

GF/GP

138.0

$9,997,700

$9,997,700

0.0

$1,018,800

$1,018,800

8.     DOJ Consent Decree – MDCH Mental Health ServicesExecutive:  funds an additional MDCH outpatient treatment team to provide mental health services at Thumb Correctional Facility, which has absorbed 320 youthful offenders following closure of the Michigan Youth Correctional Facility in Baldwin.  Senate and House concurred.

Gross

GF/GP

N/A

N/A

 $471,700

 $471,700

9.     Clinical Treatment Team, Thumb Correctional Facility

Executive:  adds clinical staffing for Thumb Correctional Facility to accommodate increased programming and treatment needs following transfer of 320 youthful offenders from the now-closed Michigan Youth Correctional Facility in Baldwin. Increase would support assaultive offender programming, sex offender programming, and additional testing and screening needs.  Senate and House concurred.

FTEs

Gross

GF/GP

N/A

N/A

N/A

 4.0

$329,000

$329,000

10.   Case Review Nurse Practitioners

Executive:  increases funding for nurse consultants.  Funding would support additional review of prisoner medical cases and enable Hadix-related case review standards to be met statewide.  Senate and House concurred.

FTEs

Gross

GF/GP

N/A

N/A

N/A

5.0

$457,300

$457,300

FIELD OPERATIONS AND COMMUNITY PROGRAMS

11.   Global Positioning System (GPS) Tether

Executive:  $1.7 million GF/GP for phased-in implementation of GPS electronic monitoring for selected offenders in a yet-to-be-determined area of the state; expected to be used primarily for prisoners being paroled from burglary offenses, although it might be used for some sex offenders.  Senate and House concurred.

FTEs

Gross

GF/GP

N/A

N/A

N/A

10.0

$1,670,500

$1,670,500

12.   Parole and Probation Special Operations ("Joshua

       Project")

House funds expansion of program, currently limited to one precinct, that funds law enforcement escorts for parole and probation agents making after-hours checks of supervised offenders in Detroit.

Gross

GF/GP

$500,000

$500,000

$1,300,000

$1,300,000

13.   Field Operations Reorganization

Executive: the proposed budget incorporates an additional $2.7 million net GF/GP savings to be achieved through ongoing reorganization of field operations.  Reorganization commenced in FY 2005-06 with reductions to central office staff for savings of $1.1 million.  The FY 2006-07 proposal includes savings from reorganization of regional field offices.  Elimination of 79.5 regional office administrative and management positions is expected to generate savings of $6.3 million; these savings, however, would be offset by $3.6 million to fund 46.3 additional field officer FTEs.  Net reductions would be 33.2 FTEs and $2.7 million.  Senate and House concurred.

FTEs

Gross

Restricted

GF/GP

1,976.4

$138,549,100

16,338,500

$122,210,600

(33.2)

($2,731,000)

0

($2,731,000)

14.   Community Re-entry Centers

Executive: creates new line item of Community Re-entry Centers to reflect changes in community programs that are occurring under truth-in-sentencing and the Michigan Prisoner Re-Entry Initiative.  Utilizes existing funding and FTE authorization for line items for Corrections Centers and the Technical Rule Violator Program, and eliminates those lines.  Funds Community Re-entry Centers at $14.3 million ($14.0 million GF/GP) and 48.0 FTEs.  Eliminates $271,600 of the $372,300 in restricted revenues associated with corrections centers, and all but one of the 69.3 FTEs associated with the technical rule violator program.  Senate and House concurred.

FTEs

Gross

Restricted

GF/GP

N/A

N/A

N/A

N/A

(68.3)

($271,600)

($271,600)

$0

MISCELLANEOUS ADJUSTMENTS

15.   New Officer Training and State Police Billings

Executive:  increases funding for new officer training by $7.8 million, for a total of $11.8 million (all GF/GP), to fund an estimated 650 new corrections officers to fill current and anticipated vacancies.  The Executive also recommends an additional $1.0 million GF/GP for the costs of the use of the state police training facility. Senate and House concurred.

Gross

GF/GP

N/A

N/A

$8,824,400

$8,824,400

16.   Supplementary Operational Expenditures

This line item, new to the current year, supports costs of FY 2005-06 1.5% wage and salary increases, costs of contractual obligations to pay dry cleaning allowances to corrections officers, and various grant programs that the Executive recommended to assist counties with jail crowding problems.  Executive:  eliminated $4.0 million, to recognize that jail capacity grant programs would not go forward absent changes in sentencing guidelines; distributed the $13.8 million remainder to support costs of FY 2005-06 contractual salary increases and pre-existing costs of dry cleaning allowances.  Senate concurred with Executive.  House eliminated all funding associated with this line.

Gross

GF/GP

$17,840,700

$17,840,700

 ($17,840,700)

($17,840,700)

17.   Miscellaneous Savings and Efficiencies

House  incorporated additional savings to be achieved through:

1) eliminating captain positions on night shifts ($2.8 million); 2) increased use of videoconferencing technology ($3.0 million); 3) utilization of automated technology to minimize costs of employee absences and overtime ($1.5 million); and 4) recognition of vacancy savings in amount of FY 2004-05 GF/GP lapse. ($1.2 million).

Gross

GF/GP

N/A

N/A

($8,457,900)

($8,457,900)

18.   Public Works Revenues

Executive:  anticipates additional $216,000 in restricted revenues through recently-implemented 50% increase in public works user fees (from $10 to $15 per worker per day); used to offset GF/GP funding.  Increased use of public works crews on MDOT projects to provide additional $2.0 million in restricted revenues to offset GF/GP.  Senate and House concurred.

Gross

Restricted

GF/GP

N/A

N/A

N/A

$0

2,216,000

($2,216,000)

19.   Outpatient Substance Abuse Treatment

Executive:  increases funding for substance abuse testing and treatment to accommodate costs anticipated under new outpatient treatment service contracts, which are to be re-bid during FY 2005-06.  Senate and House concurred.

Gross

Federal

GF/GP

$18,220,900

1,822,800

$16,398,100

$496,000

0

$496,000

20.   Jail Services Unit

Executive:  restores funding for the jail services unit, which the current-year budget assumed would be transferred to the Department of Labor and Economic Growth.  The unit reviews jail plans and inspects jails for compliance with statutory and promulgated jail standards, and has remained with the Department of Corrections.  Senate and House concurred.

FTEs

Gross

IDG/IDT

GF/GP

0.0

$0

0

$0

4.0

$612,000

165,000

$447,000

21.   Human Resources Adjustments

Executive:  incorporates $248,400 reduction in human resources service center user charges, $29,600 reduction due to DCH human resources savings being passed on through the associated consent decree line, and an additional reduction of $506,800 and 7.0 FTEs.  Senate and House concurred.

FTEs

Gross

GF/GP

N/A

N/A

N/A

(7.0)

($784,400)

($784,400)

22.   Information Technology

Executive:  includes $1,098,700 for new servers for the Offender Management Network Information (OMNI) system, the Department's centralized system of offender data.  Also includes $660,000 for a time computation module to complete the migration from CMIS (Correctional Management Information System, the old mainframe-based offender information system) to OMNI.  Senate and House concurred.

Gross

Restricted

GF/GP

$14,076,000

534,700

$13,541,300

$1,758,700

0

$1,758,700

23.   Economic Adjustments

Executive:  includes economic adjustments totaling $84.0 million ($82.3 million GF/GP), of which $651,900 ($633,600 GF/GP) is for DIT. Total economic adjustments are as follows: 

•  Salaries and wages:  $36,328,100 Gross, $35,547,700 GF/GP

•  Insurances:  $13,633,100 Gross, $13,341,400 GF/GP

•  Retirement:  $32,057,900 Gross, $31,370,600 GF/GP

•  Workers' compensation:  ($1,105,000) decrease Gross & GF/GP

•  Building occupancy charges: $100 Gross and GF/GP

•  Food:  $954,700 Gross and GF/GP

•  Fuel and utilities:  $2,157,500 Gross and GF/GP

Senate and House concurred.

Gross

IDG/IDT

Federal

Local

Restricted

GF/GP

N/A

N/A

N/A

N/A

N/A

N/A

$84,026,400

29,600

21,300

9,200

1,699,300

$82,267,000

Sec. 206.  Disciplinary Action –RETAINED

House and Senate retain prohibition, deleted by Executive, against taking disciplinary action against an employee for communicating with the legislature.

Sec. 213.  Contingency Fund Appropriations –EXCLUDED

House and Senate exclude Executive-proposed language providing for appropriation of "contingency funds," which are otherwise-unappropriated non-GF/GP sources of revenue that may become available during the year.

Sec. 401.  Prison Population Projections –RETAINED

House and Senate retain current February 1 deadline for report on prison population projections;  Executive proposed change from February 1 to February 15.

Sec. 411.  Recidivism Report– RETAINED

House and Senate retain requirement, deleted by Executive, for recidivism report to include information on historical recidivism rates and cross-state comparisons.

Sec. 504.  Mental Health and Substance Abuse Services –RETAINED

House retains requirement, deleted by Executive and Senate, for Department to cooperate with Department of Community Health in providing information and developing a report on prisoners receiving substance abuse and mental health services.

Sec. 606.  Parole and Probation Agent Workload Study– REVISED

House updates language pertaining to now-completed parole and probation agent workload study.  House requires response to study, Senate retained existing language, Executive deleted.

Sec. 608.  Parole and Probation Special Operations– RETAINED

House and Senate retain language, eliminated by Executive, that expresses legislative intent for Department to cooperate with attorney general and local law enforcement agencies in assigning field agents for parole/probation special operations (under which agents, escorted by law enforcement, make unscheduled after-hours checks to verify offenders' whereabouts and activities in selected precincts of Detroit).

Sec. 608.  GPS Tether– NEW

House and Senate add requirement for report on new global positioning system (GPS) tether program.

Sec.909.  Hepatitis C and Coordination with MDCH -NEW

House and Senate add requirement for MDOC to work with MDCH on process of data and information sharing regarding hepatitis C and prisoners being released from prison.

Sec. 1001.  Smoking Areas –REVISED

House and Senate revise requirement for smoking areas, which was deleted by Executive,  to exempt areas that house prisoners with special medical needs.

Sec. 1009.  Academic/Vocational Report– REVISED

House and Senate retain language, eliminated by Executive, on various reporting requirements pertaining to prisoner academic and vocational programs.  House and Senate also add requirement for response to August 2005 auditor general report on MDOC education programs.

Sec. 1010.  GED and Recidivism Report– RETAINED

House and Senate retain language, eliminated by Executive, that requires report on offender educational history, GED completion rates, and impact of GED completion on offender recidivism.

Sec. 1011.  GED Certification Report– RETAINED

House and Senate retain requirement, eliminated by Executive, for a plan to increase certification rates among prisoners enrolled in general educational development (GED) programs at correctional facilities.  Associated report must include details on Department plans to improve certification rates, along with information on recent certification rates and comparisons to other states.

Sec. 1012.  Youth Correctional Facility –NEW

House and Senate add prohibition against opening or reopening beds without first utilizing existing vacant beds at the former Michigan Youth Correctional Facility.  Unlike Senate, House's version applies the provision to all unopened beds, not only those not otherwise provided for in the budget.

Sec. 1013.  Prison Store Surcharges -NEW

House adds requirement for Department to impose a 35% surcharge on certain items purchased by prisoners in state facilities; surcharge to be separate from and in addition to any other mark-ups imposed by the Department.  Revenue to be deposited in state trooper recruit school fund.  Senate included similar language.

Summary: HB 5796, Article 5; House Passed

DEPARTMENT OF EDUCATION

FY 2006-07

FY 2006-07

FY 2006-07

FY 2006-07

FY 2006-07

Difference:  House

from FY 2005-06 YTD

FY 2005-06 YTD

Executive

Senate

House

Enacted

Amount

%

IDG/IDT

0

0

0

0

0

0%

Federal

70,519,400

67,570,600

67,570,600

67,570,600

(2,948,800)

-4.2%

Local

5,444,000

5,985,600

5,985,600

5,985,600

541,600

9.9%

Private

1,898,600

2,914,400

2,914,400

2,914,400

1,015,800

53.5%

Restricted

23,513,200

7,227,000

7,388,900

7,327,000

(16,186,200)

-68.8%

GF/GP

16,100,400

6,667,500

6,580,700

8,667,500

(7,432,900)

-46.2%

Gross

117,475,600

90,365,100

90,440,200

92,465,100

(25,010,500)

-21.3%

FTEs

423.5

435.5

435.5

434.5

11

2.6%

1.     MEAP Testing Contract

Exec Rec transfers the MEAP contract for student testing to the School Aid Fund in School Aid Act.  Senate and House concur.

Gross

Federal

Restricted

$24,784,500

8,425,200

16,359,300

($24,784,000)

(8,425,200)

 (16,359,300)

2.     School Breakfast Program

Exec Rec transfers the School Breakfast Program and related boilerplate to the School Aid Act.  Senate and House concur.

Gross

GF/GP

$9,625,000

$9,625,000

($9,625,000)

($9,625,000)

3.     Federal and Private Grants

Exec Rec authorizes the expenditure of up to $2.0 million in additional Federal funds and up to $1.0 million in additional private funds in the event that the Department receives new grants mid-year.  Senate and House concur.

Gross

Federal

Private

$3,000,000

2,000,000

1,000,000

$3,000,000

2,000,000

1,000,000

4.     Additional Federal Revenue

Exec Rec recognizes an increase in available Federal funds for 21^st Century Grants ($66,300), for Pre-school Programs ($201,700), in Reading First Grants for the Educator on Loan Program ($400,000) and for Educational Assessment and Accountability ($1,694,400).  Senate and House concur.

Gross

Federal

N/A

N/A

$2,362,400

2,362,400

5.     Web-based Practice Assessments

House adds $1.5 million for a web-based practice assessment and classroom remediation program.

Gross

GF/GP

$0

$0

$1,500,000

$1,500,000

6.    Michigan School for the Deaf and Blind

Exec Rec adds eight additional staff to the school for an anticipated increase in enrollment of over 20%.  Senate and House concur.

FTEs

Gross

Federal

Local

Private

Restricted

95.0

$10,641,600

5,120,800

5,291,400

14,800

214,600

8.0

$560,000

154,700

405,300

0

0

7.     Middle School Math Administration

House adds $250,000 for administration of middle school math programs in the School Aid Act.

Gross

GF/GP

$0

$0

$250,000

$250,000

8.     Subject Area Content Expectations and Guidelines

House adds $250,000 for the development, approval, and implementation of the new subject area content expectations and guidelines.

Gross

GF/GP

$0

$0

$250,000

$250,000

9.     School Improvement Operations

House adds $100,000 for additional support of new content area expectations and graduation requirements.

Gross

Federal

Private

Restricted

GF/GP

$16,011,300

14,335,700

1,082,100

518,900

$74,600

$100,000

0

0

0

$100,000

10.   Best Practices

Housereduces the appropriation to the State Board of Education for the national best practices from $350,000 to $200,000.

Gross

GF/GP

$350,000

$350,000

($150,000)

($150,000)

11.   Middle School Math Project

Exec Rec eliminates funding and related boilerplate which provides twogrants of $50,000 each for Wayne State University andMichiganVirtualHigh School for providing professional development or enhanced curricula in middle school mathematics.  Senate maintains current appropriation. House concurs with the Exec Rec.

Gross

Restricted

GF/GP

$100,000

100,000

$0

($100,000)

(100,000)

$0

12.   National Board Certification

House adds a new line to fund grants to pay half of the application fees for teachers who apply for national board certification.

Gross

Restricted

GF/GP

$0

0

$0

$100,000

100,000

$0

13.   Education Commission of the States

House adds $50,000 to payMichigan's dues for the Education Commission of the States.

Gross

GF/GP

$0

$0

$50,000

$50,000

13.   Economics

Exec Rec provides for economic increases in salaries and wages, insurances, retirement, and worker's compensation and recognizes savings in building occupancy costs.  Senate and House concur.

Gross

Federal

Local

Private

Restricted

GF/GP

N/A

N/A

N/A

N/A

N/A

N/A

$1,287,500

943,000

111,300

15,800

70,100

$147,300

Major Boilerplate Changes from FY 2005-06

Sec. 215.  Departmental Employee Contact with Legislature – RETAINED

Prohibits disciplinary action against a department employee for communicating with a Legislator or his or her staff. Exec Rec deletes.  Senate and House retain.

Sec. 218.  Contingency Funds –NOT INCLUDED

Appropriates up to $5.0 million in Federal contingency funds, up to $700,000 in State restricted contingency funds, up to $250,000 in private contingency funds, and $3.0 million in local contingency funds.  Exec Rec adds new section.  Senate and House do not include this section.

Sec. 218.  Automated External Defibrillators –NEW

Encourages department to promote benefits of automated external defibrillators (AEDs) and to work with districts who receive grants for AED purchases to secure a bulk-purchase discount.  Senate adds new section.  House concurs.

Sec. 219.  K-16 Coalition Ballot Initiative –NEW

Requires a report from the department regarding proposed budget cuts of 7.93% GF/GP if the initiative passes.  Senate adds new section.  House concurs.

Sec. 220.  Timely Data –NEW

Requires the department to provide data requested by legislature, staff, and fiscal agencies in a timely manner.  House adds new section.

Sec. 220.  Standardized Crisis Management Systen for Schools –NEW

Requires DOE, in collaboration with the Michigan Commission on Law Enforcement Standards (MCOLES) to contract for a statewide standardized crisis management system for emergencies at public schools.

Sec. 303.  Best Practices Study – REVISED

Earmarks $350,000 to State Board of Education to study and advise the Legislature and Governor on local, state, and national education best practices.  Exec Rec deletes.  Senate retains with an earmark of only $100.  House retains with earmark of $200,000 and revises to emphasize middle school math and allow study of best practices for financial turnaround methods.

Sec. 303. Michigan History Day – NOT INCLUDED

Provides $25,000 grant to Michigan Historical Society for Michigan History Day.  Senate adds new section.  House does not include.

Sec. 503.  Teacher Preparation Programs – DELETED

Provides $75,000 forCentralMichiganUniversity'sAlternative Route to Certification Program.  Exec Rec deletes.  Senate retains with $125,000 for CMU's program and $125,000 forWayneStateUniversity's Limited License to Instruct program.  House deletes.

Sec. 504.  National Board Certification – NEW

Provides up to ½ the application fee for teachers who apply for National Board Certification.  House adds new section.

Sec. 602.  Middle School Math Administration – NEW

Provides funding for administration of middle school math programs funded in the School Aid Act. House adds new section.

Sec. 603.  Subject Area Content Expectations and Guidelines – NEW

Provides funding for development, approval and implementation of the new subject area content expectations and guidelines, requires that the science content expectations include critical evaluation of scientific theories, and that social studies content expectations not discourage or prohibit the use of the word "American" when referring to a citizen of theUnited States.  House adds new section.

Sec. 604.  Web-based Practice Assessments – NEW

Provides funding and contract requirements for a web-based practice assessment and classroom remediation program for middle school students with priority on math assessments.  House adds new section.

Sec. 901.  Federal and Private Grants – NEW

Requires the Department to notify House and Senate Appropriation Subcommittee Chairs within 10 days of the receipt of a grant appropriated in the new federal and private grants line item.  Exec Rec adds new section.  Senate and House concur.

Sec. 902.  International Baccalaureate – NOT INCLUDED

Provides $50,000 in grants for the establishment of international baccalaureate programs.  Senate adds new section.  House does not include.

Summary: HB 5796, Article 6; House Passed

ENVIRONMENTAL QUALITY

FY 2006-07

FY 2006-07

Difference:  House

from FY 2005-06 YTD

FY 2005-06 YTD

Executive

House

Senate

Enacted

Amount

%

IDG/IDT

$18,031,100

$18,233,600

$18,233,600

$18,233,600

$202,500

1.1

Federal

144,062,700

140,338,500

140,338,500

140,338,500

(3,724,200)

(2.6)

Local

0

0

0

0

0

0

Private

450,000

450,000

450,000

450,000

0

0

Restricted

260,842,600

217,878,000

218,913,000

180,212,000

(41,929,600)

(16.1)

GF/GP

31,809,600

33,328,400

34,028,400

32,894,400

2,218,800

7.0

Gross

$455,196,000

$410,228,500

$411,963,500

$372,128,500

($43,232,500)

(9.5)

FTEs

1,573.2

1,567.7

1,570.7

1,567.7

(5.5)

(0.3)

1.     Underground Storage Tank Cleanup

Removes one-time Refined Petroleum Fund revenue for storage tank cleanup (Initial program support @ $45.0 million), and reduced level of funding to reflect expected annual revenue.  Funds appropriated in FY 2005-06 reimbursed owner/operators for cleanup costs.

Gross

Restricted

$102,000,000

102,000,000

($81,900,000)

(81,900,000)

2.     Strategic Water Quality Initiatives Grants

New line item providing for grants to communities to prepare applications for loans for the construction of waste water infrastructure and nonpoint source control projects.

Gross

Restricted

$0

0

$40,000,000

40,000,000

3.     Contaminated Site Investigation/Cleanup Program

The funding sources for this program are adjusted.  The Cleanup Redevelopment Fund no longer can support the expenses of the cleanup program.  Support now includes $2.0 million GF/GP, and $1.0 million Environmental Protection Fund. 

This recommendation assumes $12.0 million will be appropriated to the Cleanup Redevelopment Fund from the Cleanup Redevelopment Trust Fund in FY 2005-06 and assumes approval of the FY 2005-06 supplemental transferring $7.0 million from the Community Pollution Prevention Fund to the Environmental Protection Fund.

Gross

Private

Restricted

GF/GP

$21,702,200

150,000

21,552,200

$0

$0

0

(2,000,000)

$2,000,000

4.     Drinking Water Grants

Reduces Federal support to reflect expected grant level.  The General Fund is reduced to reflect matching requirements.

Gross

Federal

Restricted

GF/GP

$113,053,500

85,000,000

21,200,000

$6,853,500

($6,073,600)

(5,000,000)

0

($1,073,600)

5.     Wastewater Treatment System Plan Review

Eliminates 4 engineer positions that review plans and issue permits for new wastewater treatment systems.

FTEs

Gross

Federal

Restricted

GF/GP

98.1

$15,281,200

3,916,400

8,077,700

$3,287,100

(4.0)

($367,500)

0

0

($367,500)

6.     Clean Michigan Initiative Administrative Support

The 3% CMI bond set-aside for program administration has been nearly spent. The contaminated Site Investigation program is reduced to reflect this situation.  Department-wide support from the CMI Administration subfund in FY 2006-07 is $1,295,600.

Gross

Private

Restricted

$21,702,200

150,000

21,552,200

($1,900,000)

0

(1,900,000)

7.     Land and Water Management Permit Fees

Support is shifted between restricted fund sources (from permit fees to the Environmental Protection Fund: $1,613,800). Insufficient revenue exists to cover division regulatory programs.  This recommendation is has been made possible through passage of a FY 2005-06 supplemental transferring $7.0 million from the community pollution prevention fund to the Environmental Protection Fund.

Gross

IDG

Federal

Restricted

GF/GP

$12,750,200

908,100

3,292,300

3,286,000

$5,263,800

$0

0

0

0

$0

8.     Manufactured Housing Fees

Eliminates deduct for Manufactured Housing Fees. Legislation to increase these fees has not been enacted. Funding for this program is not available from the Department of Labor and Economic Growth.

Gross

Federal

Restricted

GF/GP

$16,052,700

9,620,200

4,649,300

$1,783,200

($633,300)

0

(633,300)

$0

9.     Contaminated Sediments: City ofSt. Clair Shores Lange/Revere Canals

Funding is provided to support local cleanup efforts inAnchorBay.

Gross

Restricted

$0

0

$500,000

500,000

10.   Water Supply Wells: City ofSt. Louis

Funding is provided toward the development cost of new water supply wells for the City ofSt. Louis.

Gross

GF/GP

$0

$0

$300,000

$300,000

11.   Real Time Water Quality Monitoring

Funding for the pilot water quality monitoring project in theLake St. Clair watershed is retained: $250,000

Gross

Restricted

$250,000

250,000

$0

0

12.  Muskegon County Wetlands Restoration

Funding is provided toward the establishment of a wetland on Little Black Creek.

Gross

GF/GP

$0

$0

$200,000

$200,000

13.   Office of Environmental Ombudsman

An interdepartmental grant to the Legislative Council would establish a new office responsible for resolving conflicts arising from environmental regulations or enforcement actions.

FTEs

Gross

GF/GP

0.0

$0

$0

3.0

$200,000

$200,000

14.   Community Outreach Pilot Program

A new line item is included to develop an outreach program to increase awareness of environmental issues that may impact communities.

Gross

Restricted

$0

0

$150,000

150,000

15.   Economic Adjustments

Provides support for the negotiated civil service 3.5% wage increase, retirement plan contributions, and employer share of health insurance premiums.

Gross

IDG

Federal

Restricted

GF/GP

N/A

N/A

$5,777,800

175,300

1,275,800

3,227,900

$1,098,800

Major Boilerplate Changes from FY 2005-06

Sec. 222.  Permit Program Benchmark Studies– NEW

Establishes a stakeholder panel to study permit process comparing DEQ permit programs to permit programs of otherGreat Lakes states.

Sec. 226.  Cost Allocation Plan for Administration (Restricted Funds)– NEW

Requires the department to develop a cost allocation plan for the use of restricted funds in its administrative units.  This plan may be phased in over 3 fiscal years.

Sec. 227.  Oil or Alternative Fuels Refinery Permits– NEW

Expedites permit processing related to a proposed refinery or petroleum or alternative fuels.

Sec. 228.  Penalty Revenue from Fines or Fees– NEW

Deposits revenue collected by the department from assessed penalties into the General Fund.

Sec. 229.  NPDES Rules Enforcement: Agricultural Groundwater Discharge– NEW

Prohibits the enforcement of discharge limitations on farms not found to have discharges toMichigan waters.

Sec. 504.  Community Outreach Pilot Program– NEW

Provides funding for a portable community outreach module for enhanced community awareness of environmental issues that may impact their community.

Sec. 602.  Beach Grooming Legislation– NEW

Appropriations for the Land and Water Management Division contingent upon passage of legislation regulating beach grooming and maintenance.

Sec. 702.  Underground Storage Tank Cleanup Site List– DELETED

Provides a list of cleanup sites, and prohibits the department from spending $42.0 million for cleanup efforts until the program is authorized in statute.

Sec. 703.  Underground Storage Tank: Initial Cleanup– DELETED

States that the $45.0 million appropriation is to be used to support the Advisory Council recommendations for owner/operator reimbursements.

Sec. 704.  Peer Reviewed Risk Assessment– REVISED

Requires a status report listing efforts made by the department to comply with section requirements:Jan. 1, '06

Sec. 903.  Groundwater Use Rule Promulgation– DELETED

Directs Department to not promulgate rules regarding groundwater use or withdrawal unless it implements provisions of 2003 Parts 148 and 177.

Sec. 1001.  Solid Waste Disposal Facility Inspections – DELETED

Requires periodic inspections ofMichigan disposal sites receiving out-of-state solid waste.

Summary: HB 5796, Article 7; House Passed

ALL GENERAL GOVERNMENT DEPARTMENTS

FY 2006-07

FY 2006-07

Difference:  House

from FY 2005-06 YTD

FY 2005-06 YTD*

Executive**

House*

Senate

Enacted

Amount

%

Gross

$3,419,774,000

$3,007,324,600

$2,941,233,400

($478,540,600)

(14.0)

IDG/IDT

604,409,300

589,646,200

585,266,100

(19,143,200)

(3.2)

Federal

102,542,900

103,227,200

55,540,200

(47,002,700)

(45.8)

Local

2,725,400

2,766,200

2,766,200

40,800

1.5

Private

1,250,100

1,250,100

550,100

(700,000)

(56.0)

Restricted

2,092,741,500

1,649,653,800

1,665,891,800

(426,849,700)

(20.4)

GF/GP

$616,104,800

$660,781,100

$631,219,000

$15,114,200

2.5

FTEs

7,314.4

7,287.4

7,135.4

(179.0)

(2.4)

Summary: HB 5796, Article 7; House Passed

ATTORNEY GENERAL

FY 2006-07

Difference:  House

from FY 2005-06 YTD

FY 2005-06 YTD

Executive

House

Senate

FY 2006-07

Enacted

Amount

%

Gross

$65,748,100

$68,306,300

$68,306,300

$2,558,200

3.9

IDG/IDT

13,408,400

13,914,300

13,914,300

505,900

3.8

Federal

9,827,100

10,236,500

10,236,500

409,400

4.2

Local

0

0

0

0

0.0

Private

0

0

0

0

0.0

Restricted

11,011,400

11,259,500

11,259,500

248,100

2.3

GF/GP

$31,501,200

$32,896,000

$32,896,000

$1,394,800

4.4

FTEs

566.0

563.0

563.0

(3.0)

(0.5)

1.   Fund Source Adjustments

Eliminates Real Estate Enforcement Fund revenue based on a lack of need for service in that area ($226,000); eliminates Corporate and Security Fees revenue due to charges for services provided being funded from an IDG from DLEG ($140,300); and reduces IDG funding from MDOT State Trunkline Fund by $300,000 in order to align the authorization with what the Department expects to receive for services provided.

Gross

IDG

Restricted

GF/GP

($666,300)

(300,000)

(366,300)

$0

($666,300)

(300,000)

(366,300)

$0

2.   Program Reductions

Reduces GF/GP funding and offsets the reduction with increased IDG funding from DHS and state restricted funding from the Liquor Purchase Revolving Fund and the Oil and Gas Privilege Fee fund.

Gross

IDG

Restricted

GF/GP

$0

140,000

60,000

($200,000)

$0

140,000

60,000

($200,000)

3.   Economic Adjustments

Includes additional funding for salary and wage, insurance, and retirement costs, and reduces funding for building occupancy charges.

Gross

IDG

Federal

Restricted

GF/GP

$3,224,500

665,900

409,400

554,400

$1,594,800

$3,224,500

665,900

409,400

554,400

$1,594,800

Major Boilerplate Changes from FY 2005-06

Sec. 309.  Carry Forward of Prisoner Reimbursement Revenue –MODIFIED  

Houseincludes language which authorizes unexpended prisoner reimbursement revenue, up to $500,000, to be carried forward.

Summary: HB 5796, Article 7; House Passed

CIVIL RIGHTS

FY 2006-07

Difference:  House

from FY 2005-06 YTD

FY 2005-06 YTD

Executive

House

Senate

FY 2006-07

Enacted

Amount

%

Gross

$13,674,900

$14,020,200

$14,020,200

$345,300

2.5

IDG/IDT

0

0

0

0

0.0

Federal

1,566,200

1,566,200

1,566,200

0

0.0

Local

0

0

0

0

0.0

Private

0

0

0

0

0.0

Restricted

0

0

0

0

0.0

GF/GP

$12,108,700

$12,454,000

$12,454,000

$345,300

2.9

FTEs

141.0

141.0

141.0

0.0

0.0

1.    Economic Adjustments

Includes additional funding for salary and wage, insurance, retirement, and workers' compensation premium costs.

Gross

GF/GP

$366,300

$366,300

$366,300

$366,300

2.    Human Resources Optimization Project

Reduces funding in order to more accurately reflect the Department's portion of Human Resources Optimization user charges.

Gross

GF/GP

($21,000)

($21,000)

($21,000)

($21,000)

Major Boilerplate Changes from FY 2005-06

None

Summary: HB 5796, Article 7; House Passed

CIVIL SERVICE

FY 2006-07

Difference:  House

from FY 2005-06 YTD

FY 2005-06 YTD

Executive

House

Senate

FY 2006-07

Enacted

Amount

%

Gross

$35,941,600

$36,547,100

$36,547,100

$605,500

1.7

IDG/IDT

5,670,900

5,788,100

5,788,100

117,200

2.1

Federal

4,779,100

4,779,100

4,779,100

0

0.0

Local

1,700,000

1,700,000

1,700,000

0

0.0

Private

150,000

150,000

150,000

0

0.0

Restricted

16,539,200

17,157,500

17,157,500

618,300

3.7

GF/GP

$7,102,400

$6,972,400

$6,972,400

($130,000)

(1.8)

FTEs

240.5

240.5

240.5

0.0

0.0

1.    Program Reductions

Reduces GF/GP funding by $355,100.  Savings are anticipated to be generated through CSS&M cost reductions and other administrative efficiencies.

Gross

GF/GP

($355,100)

($355,100)

($355,100)

($355,100)

2.    Economic Adjustments

Includes additional funding for salary and wage, insurance, and retirement costs, and reduces funding for workers' compensation premium costs and building occupancy charges.

Gross

IDG

Restricted

GF/GP

$976,600

117,200

628,300

$231,100

$976,600

117,200

628,300

$231,100

3.    Human Resources Optimization Project

Reduces funding in order to more accurately reflect the Department's portion of Human Resources Optimization user charges.

Gross

Restricted

GF/GP

($16,000)

(10,000)

($6,000)

($16,000)

(10,000)

($6,000)

Major Boilerplate Changes from FY 2005-06

None

Summary: HB 5796, Article 7; House Passed

EXECUTIVE OFFICE

FY 2006-07

Difference:  House

from FY 2005-06 YTD

FY 2005-06 YTD

Executive

House

Senate

FY 2006-07

Enacted

Amount

%

Gross

$5,375,500

$5,375,500

$5,375,500

$0

0.0

IDG/IDT

0

0

0

0

0.0

Federal

0

0

0

0

0.0

Local

0

0

0

0

0.0

Private

0

0

0

0

0.0

Restricted

0

0

0

0

0.0

GF/GP

$5,375,500

$5,375,500

$5,375,500

$0

0.0

FTEs

84.2

84.2

84.2

0.0

0.0

Major Budget Changes from FY 2005-06 YTD Appropriations

Exec Change

House Change

No changes to current-year appropriations.

Major Boilerplate Changes from FY 2005-06

There is no boilerplate for the Executive Office.

Summary: HB 5796, Article 7; House Passed

INFORMATION TECHNOLOGY

FY 2006-07

Difference:  House

from FY 2005-06 YTD

FY 2005-06 YTD

Executive

House

Senate

FY 2006-07

Enacted

Amount

%

Gross

$384,706,700

$378,422,000

$378,422,000

($6,284,700)

(1.6)

IDG/IDT

384,706,700

378,422,000

378,422,000

(6,284,700)

(1.6)

Federal

0

0

0

0

0.0

Local

0

0

0

0

0.0

Private

0

0

0

0

0.0

Restricted

0

0

0

0

0.0

GF/GP

$0

$0

$0

$0

0.0

FTEs

1,766.4

1,781.4

1,781.4

15.0

0.8

1.    Economic Adjustments

Includes additional funding for salary and wage, insurance, retirement, and rent costs and for building occupancy charges.

Gross

IDG

GF/GP

$7,176,600

7,176,600

$0

$7,176,600

7,176,600

$0

2.     Program Enhancements

Makes the following adjustments to reflect appropriations for program enhancements made in other state department budgets:

·       Additional $5.5 million for the Integrated Service Delivery Project in the Department of Human Services

·       Additional $1.1 million for the Business Application Modernization Project in the Department of State

·       Additional $1.0 million for the Michigan Public Safety Communications System in the Department of State Police

·       Additional $399,900 for the Social Security Administration Electronic Death Registry System in the Department of Community Health

·       Additional $370,000 for implementation of the Social Security Privacy Act in the Department of Management and Budget.

Gross

IDG

GF/GP

$8,369,300

8,369,300

$0

$8,369,300

8,369,300

$0

3.     Base Adjustments

Makes the following adjustments in order to more accurately reflect what has been appropriated for information technology services and projects in other state department budgets:  (includes adjustments made in 2006 PA 153 – supplemental SB 242)

·       Additional $17.0 million in order to align the Department of Information Technology's IDGs with enacted information technology line item appropriations in other state department budgets

·       Additional $3.2 million for the Department of Management and Budget for on-going maintenance costs of the state's retirement system

·       Additional $1.8 million for the Department of Corrections for conversion of modules, server replacements, and desktop maintenance

·       Remove one-time appropriation of $17.8 million for the Child Support Arrearage Program in the Department of Human Services

·       Remove $3.9 million from the Department of Human Services as a result of contract and other information technology-related savings

·       Remove $1.1 million from the Department of State Police due to expiration of the Commercial Vehicle Information Systems Network grant

·       Remove one-time appropriation of $1.0 million for the e-Procurement Project in the Department of Management and Budget.

Gross

IDG

GF/GP

($1,863,000)

(1,863,000)

$0

($1,863,000)

(1,863,000)

$0

Sec. 581.  Information Technology Assets – NEW

Houseincludes new language which requires DIT to conduct a study of the state's information technology assets, to determine any benefits and economies that can be achieved, and to summarize the top ten initiatives that would provide the most benefit to the state and the cost of implementing those initiatives.

Summary: HB 5796, Article 7; House Passed

LEGISLATURE

FY 2006-07

Difference:  House

from FY 2005-06 YTD

FY 2005-06 YTD

Executive

House

Senate

FY 2006-07

Enacted

Amount

%

Gross

$130,439,900

$129,731,900

$113,754,400

($16,685,500)

(12.8)

IDG/IDT

2,301,500

2,301,500

0

(2,301,500)

(100.0)

Federal

0

0

0

0

0.0

Local

0

0

0

0

0.0

Private

400,000

400,000

400,000

0

0.0

Restricted

2,356,500

2,356,500

1,109,800

(1,246,700)

(52.9)

GF/GP

$125,381,900

$124,673,900

$112,244,600

($13,137,300)

(10.5)

FTEs

0.0

0.0

0.0

0.0

0.0

No changes to current-year appropriations for House, Senate, Legislative Council, Legislative Retirement, or Property Management line items.

Funding for the Office of the Auditor General is transferred out of the Legislature budget and into its own section of the bill.  (Please see the following page for more details on the Office of the Auditor General.)

Major Boilerplate Changes from FY 2005-06

None

Summary: HB 5796, Article 7; House Passed

OFFICE OF THE AUDITOR GENERAL

FY 2006-07

Difference:  House

from FY 2005-06 YTD

FY 2005-06 YTD

Executive

House

Senate

FY 2006-07

Enacted

Amount

%

Gross

$0

$0

$17,477,500

$17,477,500

100.0

IDG/IDT

0

0

1,801,500

1,801,500

100.0

Federal

0

0

0

0

0.0

Local

0

0

0

0

0.0

Private

0

0

0

0

0.0

Restricted

0

0

1,539,900

1,539,900

100.0

GF/GP

$0

$0

$14,136,100

$14,136,100

100.0

FTEs

0.0

0.0

0.0

0.0

0.0

Difference:  House

from FY 2005-06 YTD

FY 2005-06 YTD

House

Amount

%

Gross

$15,477,500

$17,477,500

$2,000,000

12.9

IDG/IDT

1,801,500

1,801,500

0

0.0

Restricted

1,246,700

1,539,900

293,200

23.5

GF/GP

$12,429,300

$14,136,100

$1,706,800

13.7

1.    Additional Auditor Positions

Includes funding for an additional 15.0 auditor positions.

Gross

GF/GP

$0

$0

$915,000

$915,000

2.    Economic Adjustments

Includes additional funding for salary and wage, insurance, and retirement costs.

Gross

GF/GP

$0

$0

$580,000

$580,000

3.    Information Technology

Includes additional funding for information technology system equipment needs.

Gross

GF/GP

$0

$0

$505,000

$505,000

4.    Fund Source Adjustments

Reduces GF/GP funding and offsets the reduction with increased state restricted funding in order to more accurately reflect where audit charges occur.

Gross

Restricted

GF/GP

$0

0

$0

$0

293,200

($293,200)

Major Boilerplate Changes from FY 2005-06

None

Summary: HB 5796, Article 7; House Passed

MANAGEMENT AND BUDGET

FY 2006-07

Difference:  House

from FY 2005-06 YTD

FY 2005-06 YTD

Executive*

House

Senate

FY 2006-07

Enacted

Amount

%

Gross

$234,880,800

$496,142,000

$496,642,000

$261,761,200

111.4

IDG/IDT

153,786,800

155,293,500

155,293,500

1,506,700

1.0

Federal

0

0

0

0

0.0

Local

0

0

0

0

0.0

Private

0

0

0

0

0.0

Restricted

45,876,100

52,438,900

67,438,900

21,562,800

47.0

GF/GP

$35,217,900

$288,409,600

$273,909,600

$238,691,700

677.8

FTEs

751.0

759.0

759.0

8.0

1.1

1.    Acquisition Services

Includes additional funding as an incentive for the Department to continue properly managing acquisition services.

Gross

GF/GP

$0

$0

$500,000

$500,000

2.    Transfer of State Building Authority Rent

Reflects the transfer of State Building Authority Rent Payments from the Department of Treasury to the Department of Management and Budget.

Gross

Restricted

GF/GP

$272,797,100

16,795,000

$256,002,100

$272,797,100

16,795,000

$256,002,100

3.    Office of Retirement Services

Includes $3.2 million for on-going maintenance costs of the state's retirement system, $370,000 for implementation of the Social Security Privacy Act, and 13.0 FTE positions and $350,000 for customer call center improvements.

FTEs

Gross

Restricted

GF/GP

13.0

$3,920,000

3,920,000

$0

13.0

$3,920,000

3,920,000

$0

4.    Michigan State Fair Operations

Adjusts the base appropriation in order to reflect actual ongoing operational expenses of the State Fair.

Gross

Restricted

GF/GP

$587,400

587,400

$0

$587,400

587,400

$0

5.    Program Reductions

Reduces GF/GP funding by $758,200.  Savings are anticipated to be generated through staffing reductions, fund source shifts, real estate optimization, and changes to the ID Mail Delivery Program.

FTEs

Gross

IDG

Restricted

GF/GP

(6.0)

($492,000)

293,200

(27,000)

($758,200)

(6.0)

($492,000)

293,200

(27,000)

($758,200)

6.    Building Occupancy Adjustments

Includes an additional $814,600 for increased utility costs and $121,700 for rent adjustments for leased facilities.  Reduces the budget by $577,500 due to closing the Baker-Olin building.

Gross

IDG

GF/GP

$358,800

358,800

$0

$358,800

358,800

$0

7.    e-Procurement Project

Eliminates the one-time appropriation of $1.0 million for the e-Procurement project.  The project has been completed and provides an online, statewide, "one-stop shop" marketplace for purchasers.  The state is able to gather purchasing information for reporting purposes, collect and review government spending patterns to leverage better pricing, increase vendor competition in the bidding process, and consolidate workloads.

Gross

IDG

GF/GP

($1,000,000)

(1,000,000)

$0

($1,000,000)

(1,000,000)

$0

8.     Retirement Disaster Recovery Plan

Eliminates the one-time appropriation of $500,000 for the Retirement Business Continuity/Disaster Recovery Plan.  The project has been completed and provides the Office of Retirement Services with a plan to maintain core functional activities in the event of a disaster.  The call center will function within 48 hours of a disaster and pension payments will be made to members within one week of a disaster.

Gross

Restricted

GF/GP

($500,000)

(500,000)

$0

($500,000)

(500,000)

$0

9.    Economic Adjustments

Includes additional funding for salary and wage, insurance, retirement, and rent costs.  Reduces funding for workers' compensation premium costs and building occupancy charges.

Gross

IDG

Restricted

GF/GP

$3,193,100

990,200

1,011,800

$1,191,100

$3,193,100

990,200

1,011,800

$1,191,100

10.   Human Resources Optimization Project

Increases funding in order to more accurately reflect the Department's portion of Human Resources Optimization user charges.