March 2, 2005, Introduced by Senators CLARKE and EMERSON and referred to the Committee on Appropriations.
EXECUTIVE BUDGET BILL
A bill to make appropriations for the department of history,
arts, and libraries for the fiscal year ending September 30, 2006;
to provide for the expenditure of those appropriations; to provide
for the disposition of fees and other income received by the state
agencies; to create funds; to provide for the disbursement of
certain grants; to provide for reports; to prescribe powers and
duties of certain state departments and certain state and local
agencies and officers; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. Subject to the conditions set forth in this bill, the
amounts listed in this part are appropriated for the department of
history, arts, and libraries for the fiscal year ending September
30, 2006, from the funds indicated in this part. The following is
a summary of the appropriations in this part:
DEPARTMENT OF HISTORY, ARTS, AND LIBRARIES
APPROPRIATION SUMMARY:
Full-time equated unclassified positions.......... 6.0
Full-time equated classified positions.......... 232.0
GROSS APPROPRIATION.................................... $ 56,178,900
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 149,700
ADJUSTED GROSS APPROPRIATION........................... $ 56,029,200
Federal revenues:
Total federal revenues................................. 8,218,300
Special revenue funds:
Total local revenues................................... 0
Total private revenues................................. 577,400
Total other state restricted revenues.................. 4,082,700
State general fund/general purpose..................... $ 43,150,800
Sec. 102. DEPARTMENT OPERATIONS
Full-time equated unclassified positions.......... 6.0
Full-time equated classified positions............. 30.0
Unclassified salaries--6.0 FTE positions............... $ 222,300
Management services--29.0 FTE positions................ 2,020,700
Building occupancy charges and rent.................... 2,927,000
Worker's compensation.................................. 16,000
Film office--1.0 FTE position.......................... 131,900
Human resources optimization user charges.............. 29,500
GROSS APPROPRIATION.................................... $ 5,347,400
Appropriated from:
Special revenue funds:
State general fund/general purpose..................... $ 5,347,400
Sec. 103. INFORMATION TECHNOLOGY
Information technology services and projects........... $ 955,400
GROSS APPROPRIATION.................................... $ 955,400
Appropriated from:
Interdepartmental grant revenues:
IDG-MDOT, comprehensive transportation fund............ 200
IDG-MDOT, state aeronautics fund....................... 100
IDG-MDOT, state trunkline fund......................... 3,500
Special revenue funds:
Game and fish protection fund.......................... 100
Mackinac Island state park fund........................ 45,100
Special revenue, internal service and pension trust.... 3,100
State lottery fund..................................... 900
State general fund/general purpose..................... $ 902,400
Sec. 104. MICHIGAN COUNCIL FOR ARTS AND CULTURAL AFFAIRS
Full-time equated classified positions............ 9.0
Administration--9.0 FTE positions...................... $ 701,000
Arts and cultural grants............................... 11,328,400
GROSS APPROPRIATION.................................... $ 12,029,400
Appropriated from:
Federal revenues:
NFAH-NEA, promotion of the arts, partnership agreements 700,000
Special revenue funds:
State general fund/general purpose..................... $ 11,329,400
Sec. 105. MACKINAC ISLAND STATE PARK COMMISSION
Full-time equated classified positions........... 39.0
Mackinac Island park operation--24.3 FTE positions..... $ 1,446,000
Historical facilities system--14.7 FTE positions....... 1,692,900
GROSS APPROPRIATION.................................... $ 3,138,900
Appropriated from:
Special revenue funds:
Mackinac Island state park operation fees.............. 1,649,100
Mackinac Island state park fund........................ 1,489,800
State general fund/general purpose..................... $ 0
Sec. 106. MICHIGAN HISTORICAL PROGRAM
Full-time equated classified positions........... 83.0
Federal programs--12.0 FTE positions................... $ 1,960,900
Heritage publications.................................. 700,000
Historical administration and services--71.0 FTE
positions............................................ 5,089,300
Private grants and gifts............................... 502,400
Thunder Bay national marine sanctuary and underwater
preserve............................................. 196,100
GROSS APPROPRIATION.................................... $ 8,448,700
Appropriated from:
Interdepartmental grant revenues:
IDG-MDOT, comprehensive transportation fund............ 6,100
IDG-MDOT, state aeronautics fund....................... 3,700
IDG-MDOT, state trunkline fund......................... 136,100
Federal revenues:
DOI-NPS, historic preservation grants-in-aid........... 1,395,700
Federal funds.......................................... 565,200
Special revenue funds:
Private - grants and gifts............................. 400,000
Private - Mann house trust fund........................ 102,400
Game and fish protection fund.......................... 3,900
Heritage publication fund.............................. 700,000
Marine safety fund..................................... 500
Special revenue, internal service and pension trust.... 76,200
State lottery fund..................................... 26,200
Waterways fund......................................... 900
State general fund/general purpose..................... $ 5,031,800
Sec. 107. LIBRARY OF MICHIGAN
Full-time equated classified positions........... 71.0
Collected gifts and fees............................... 161,900
Library of Michigan operations--71.0 FTE positions..... 6,362,900
Library services and technology act.................... 5,557,400
Grant to Detroit public library........................ 300,000
State aid to libraries................................. 13,327,100
Subregional state aid.................................. 505,000
Wayne County library for the blind and physically
handicapped.......................................... 44,800
GROSS APPROPRIATION.................................... $ 26,259,100
Appropriated from:
Federal revenues:
Library services and technology act.................... 5,557,400
Special revenue funds:
Private - gifts and bequests revenues.................. 75,000
User fees.............................................. 86,900
State general fund/general purpose..................... $ 20,539,800
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 201. Pursuant to section 30 of article IX of the state
constitution of 1963, total state spending from state resources
under part 1 for fiscal year 2005-2006 is $47,233,500.00 and state
spending from state resources to be paid to local units of
government for fiscal year 2005-2006 is $17,863,400.00. The
itemized statement below identifies appropriations from which
spending to units of local government will occur:
DEPARTMENT OF HISTORY, ARTS, AND LIBRARIES
Arts and cultural grants.................................. $ 3,686,500
Grant to Detroit public library........................... 300,000
State aid to libraries.................................... 13,327,100
Subregional state aid..................................... 505,000
Wayne County library for the blind and physically
handicapped........................................... 44,800
Total department of history, arts, and libraries.......... $ 17,863,400
Sec. 202. The appropriations authorized under this bill are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this appropriation bill:
(a) "Department" means the department of history, arts, and
libraries.
(b) "Director" means the director of the department of history,
arts, and libraries.
(c) "DOI-NPS" means the United States department of interior,
national park service.
(d) "Fiscal agencies" means the house fiscal agency and the
senate fiscal agency.
(e) "FTE" means full-time equated.
(f) "IDG" means interdepartmental grant.
(g) "MCACA" means the Michigan council for arts and cultural
affairs.
(h) "MDOT" means the Michigan department of transportation.
(i) "NEA" means the national endowment for the arts.
(j) "NFAH" means the national foundation of the arts and the
humanities.
(k) "Subcommittees" means all members of the appropriate
subcommittees of the house and senate appropriations committees.
Sec. 204. The department of civil service shall bill
departments and agencies at the end of the first fiscal quarter for
the 1% charge authorized by section 5 of article XI of the state
constitution of 1963. Payments shall be made for the total amount
of the billing by the end of the second fiscal quarter.
Sec. 205. (1) A hiring freeze is imposed on the state
classified civil service. State departments and agencies are
prohibited from hiring any new full-time state classified civil
service employees and prohibited from filling any vacant state
classified civil service positions. This hiring freeze does not
apply to internal transfers of classified employees from 1 position
to another within a department.
(2) The state budget director may grant exceptions to this
hiring freeze when the state budget director believes that the
hiring freeze will result in rendering a state department or agency
unable to deliver basic services, cause a loss of revenue to the
state, result in the inability of the state to receive federal
funds, or necessitate additional expenditures that exceed any
savings from maintaining a vacancy. The state budget director
shall report quarterly to the chairpersons of the senate and house
of representatives standing committees on appropriations the number
of exceptions to the hiring freeze approved during the previous
quarter and the reasons to justify the exception.
Sec. 206. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $2,000,000.00 for
federal contingency funds. These funds are not available for
expenditure until they have been transferred to another line item
in this bill under section 393(2) of the department of management
and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $1,000,000.00 for state
restricted contingency funds. These funds are not available for
expenditure until they have been transferred to another line item
in this bill under section 393(2) of the department of management
and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $100,000.00 for local
contingency funds. These funds are not available for expenditure
until they have been transferred to another line item in this bill
under section 393(2) of the department of management and budget
act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $750,000.00 for private
contingency funds. These funds are not available for expenditure
until they have been transferred to another line item in this bill
under section 393(2) of the department of management and budget
act, 1984 PA 431, MCL 18.1393.
Sec. 208. Unless otherwise specified, the department shall use
the Internet to fulfill the reporting requirements of this bill.
This requirement may include transmission of reports via electronic
mail to the recipients identified for each reporting requirement,
or it may include placement of reports on an Internet or Intranet
site.
Sec. 209. Funds appropriated in part 1 shall not be used for
the purchase of foreign goods or services, or both, if
competitively priced and of comparable quality American goods or
services, or both, are available. Preference should be given to
goods or services, or both, manufactured or provided by Michigan
businesses if they are competitively priced and of comparable
quality.
Sec. 210. The director shall take all reasonable steps to
ensure businesses in deprived and depressed communities compete for
and perform contracts to provide services or supplies, or both.
The director shall strongly encourage firms with which the
department contracts to subcontract with certified businesses in
depressed and deprived communities for services, supplies, or both.
Sec. 213. From the funds appropriated in part 1 for information
technology, departments and agencies shall pay user fees to the
department of information technology for technology-related
services and projects. Such user fees shall be subject to
provisions of an interagency agreement between the departments and
agencies and the department of information technology.
Sec. 214. Amounts appropriated in part 1 for information
technology may be designated as work projects and carried forward
to support technology projects under the direction of the
department of information technology. Funds designated in this
manner are not available for expenditure until approved as work
projects under section 451a of the management and budget act, 1984
PA 431, MCL 18.1451a.
Sec. 215. (1) The department may provide and enter into
agreements to provide general services, training, meetings,
information, special equipment, software, and facility use, and
technical consulting services to other principal executive
departments, state agencies, local units of government, the
judicial branch of government, other organizations, and patrons of
department facilities. Fees for services shall be reasonably
related to the cost of providing the services and shall be used to
offset the costs of the services. The department may receive and
expend funds in addition to those authorized in part 1 for the
following:
(a) Supplying census-related information and technical services,
publications, statistical studies, population projections and
estimates, and other demographic products.
(b) Microfilming and other document and data imaging services,
media, storage, and copies.
(c) Patron copier and document reproduction services and copies.
(d) Conferences, training classes, exhibits, programs and
workshops conducted as part of the department's mission.
(e) Use of specialized equipment, facilities, and software that
permit distance learning and meetings, and group decision making.
(f) Special services including the rental of department exhibits
and collections.
(2) The funds received under this section may be deposited and
expended from the history, arts, and libraries fund specified in
section 216.
Sec. 216. A fund known as the history, arts, and libraries fund
is created in the department. The fund may be used to receive and
expend funds in addition to those authorized in part 1. The fund
balance may be carried forward for expenditure in subsequent fiscal
years.
Sec. 217. (1) Due to the current budgetary problems in this
state, out-of-state travel for the fiscal year ending September 30,
2006 shall be limited to situations in which 1 or more of the
following conditions apply:
(a) The travel is required by legal mandate or court order or
for law enforcement purposes.
(b) The travel is necessary to protect the health or safety of
Michigan citizens or visitors or to assist other states in similar
circumstances.
(c) The travel is necessary to produce budgetary savings or to
increase state revenues, including protecting existing federal
funds or securing additional federal funds.
(d) The travel is necessary to comply with federal requirements.
(e) The travel is necessary to secure specialized training for
staff that is not available within this state.
(f) The travel is financed entirely by federal or nonstate
funds.
(2) If out-of-state travel is necessary but does not meet 1 or
more of the conditions in subsection (1), the state budget director
may grant an exception to allow the travel. Any exceptions granted
by the state budget director shall be reported on a monthly basis
to the senate and house of representatives standing committees on
appropriations.
(3) Not later than January 1 of each year, each department shall
prepare a travel report listing all travel by classified and
unclassified employees outside this state in the immediately
preceding fiscal year that was funded in whole or in part with
funds appropriated in the department's budget. The report shall be
submitted to the chairs and members of the senate and house of
representatives standing committees on appropriations, the fiscal
agencies, and the state budget director. The report shall include
the following information:
(a) The name of each person receiving reimbursement for travel
outside this state or whose travel costs were paid by this state.
(b) The destination of each travel occurrence.
(c) The dates of each travel occurrence.
(d) A brief statement of the reason for each travel occurrence.
(e) The transportation and related costs of each travel
occurrence, including the proportion funded with state general
fund/general purpose revenues, the proportion funded with state
restricted revenues, the proportion funded with federal revenues,
and the proportion funded with other revenues.
(f) A total of all out-of-state travel funded for the
immediately preceding fiscal year.
MICHIGAN COUNCIL FOR ARTS AND CULTURAL AFFAIRS
Sec. 401. (1) The MCACA in the department shall administer the
arts and cultural grants appropriated in part 1.
(2) The MCACA shall render fair and independent decisions
concerning arts and cultural grant requests and shall do all of the
following:
(a) Use published criteria to evaluate program quality.
(b) Seek to award grants on an equitable geographic basis to the
extent possible given the quality of grant applications received.
(c) Give priority to projects that serve multiple counties or
that leverage significant additional public and private investment.
(3) The MCACA shall not award grants for projects or activities
that include displays of human wastes on religious symbols,
displays of sex acts, and depictions of flag desecration.
(4) The MCACA shall provide for fair, equitable, and efficient
distribution of funds granted through the regional regranting
program. The MCACA shall provide for an annual assessment of grant
management and distribution of mini-grant awards by designated
regional regranting agencies and review the methodology employed.
(5) The MCACA shall continue and expand its efforts to encourage
and support nonprofit arts and cultural organizations to transition
from solely volunteer-based organizations to professionally
directed operations. Criteria for support include the requirement
of collaboration between these organizations and other community
organizations.
Sec. 402. The MCACA may award grants to counties, cities,
villages, townships, community foundations and organizations in the
following categories:
(1) Anchor organization program for organizations that serve
regional and statewide audiences. Anchor organizations shall
demonstrate a commitment to education, to mentoring smaller
organizations, and to reaching underserved audiences.
(2) Arts projects program.
(3) Arts and learning program.
(4) Artists in residence for education program.
(5) Arts organization development program.
(6) Capital improvement program.
(7) Local arts agencies services program.
(8) Regional regranting program.
(9) Partnership program.
(10) Discretionary grants program.
(11) Rural arts and cultural program.
(12) Cultural projects program.
(13) Historical projects program.
Sec. 403. (1) From the state funds appropriated in part 1 for
arts and cultural grants, no one organization may receive more than
17% of this funding. It is the intent of the legislature that this
percentage be reduced to 16% in fiscal year 2007, and 15% in fiscal
year 2008.
(2) The MCACA shall make every effort to provide total grant
awards in the anchor organization program at a level not to exceed
70% of the total amount appropriated for arts and cultural grants.
(3) As documented in the audit report that is submitted as part
of the grant application process, the total of all grants awarded
to any organization receiving grants within the anchor organization
program may not exceed 15% of their "total unrestricted revenues,
gains, and other support," as defined by the financial accounting
standards board in the accounting standards for not-for-profit
organizations.
(4) Before any amount appropriated for arts and cultural grants
in part 1 may be expended for a grant to an eligible recipient, the
department shall execute a grant agreement with the recipient. The
grant agreement shall identify the projects funded and specify the
category in section 403 under which the grant is awarded.
Sec 404. Grant applicants must meet and adhere to the following
requirements:
(1) Each applicant shall pay a nonrefundable application fee of
$300 or 3% of the desired grant amount, whichever is less. The
department may use the application fee to offset its direct and
indirect costs.
(2) An applicant for a grant under the anchor organization
program shall submit with the application the applicant’s most
recent annual audit report which states their "total unrestricted
revenues, gains, and other support," as defined by the financial
accounting standards board in the accounting standards for not-for-
profit organizations. The audit report must cover an audit period
that ends within 18 months of the date of the application.
(3) Each applicant shall identify proposed matching funds from
local and/or private sources on a dollar-for-dollar basis. The
dollar-for-dollar match may include the reasonable value of
services, materials, and equipment as allowed under the federal
internal revenue code for charitable contributions.
Sec. 405. (1) Each grant recipient shall provide the MCACA with
the following:
(a) The MCACA shall receive proof of the entire amount of the
matching funds, services, materials, or equipment by the end of the
award period.
(b) Within 30 days following the end of the grant period, a
final report that includes the following:
(i) Project revenues and expenditures including grant matching
fund amounts.
(ii) Number of patrons attracted or benefiting during the grant
period.
(iii) A narrative summary of each project and its outcome.
(c) By April 7 of the grant year, each recipient of a grant
greater than $100,000 shall submit an interim report that includes
the items identified in subdivision (b).
Sec. 406. The department shall make the following reports:
(1) An electronic report identifying the website location that
contains a list of all grant recipients, sorted by county. This
report shall be provided to each legislator within 1 business day
of the announcement of annual awards by the MCACA.
(2) An electronic report to the appropriations subcommittees,
the state budget office, and the fiscal agencies, within 30 days
after the MCACA announces the annual grant awards, that includes:
(a) A listing of each applicant.
(b) The county of residence of the applicant.
(c) The amount requested.
(d) The amount awarded.
(e) The grant category under which an applicant applied.
(f) A summary of projects funded for each recipient.
(g) The expected number of patrons for an applicant during the
grant period.
(h) The amount of matching funds proposed by each applicant.
(i) A listing containing the information in subparagraph (1) and
(a) to (f) for any regranted funds in the preceding fiscal year.
(3) An annual report to the appropriations subcommittees, the
state budget office, and the fiscal agencies is due when materials
are first distributed by the MCACA seeking grant applications for
the subsequent fiscal year. The report shall contain the
following:
(a) The MCACA guidelines for awarding grants.
(b) A summary of any changes in the program guidelines from the
previous fiscal year.
MICHIGAN HISTORICAL PROGRAM
Sec. 501. The federal funds appropriated in part 1 for the
historic site preservation grants are for work projects and shall
not lapse at the end of the fiscal year but shall continue to be
available for expenditure until the projects for which the funds
were reserved have been completed or are terminated. The purpose
of these work projects is the identification, designation, and
preservation of historic resources. The method used will be to
solicit applications, score applications based upon established
criteria, and award subgrants on a competitive basis to eligible
recipients. The department shall execute a grant agreement with
each recipient. The total cost is $1,348,000.00 and the tentative
completion date is September 30, 2007.
Sec. 502. Funds collected by the department under sections 3,
6, 7, and 7a of 1913 PA 271, MCL 399.3, 399.6, 399.7, and 399.7a,
are appropriated to the department for the purposes for which they
were received and may be carried forward for expenditure in
subsequent fiscal years.
Sec. 503. For the purposes of administering the museum store as
provided in section 7a of 1913 PA 271, MCL 399.7a, the department
is exempt from section 261 of the management and budget act, 1984
PA 431, MCL 18.1261.
Sec. 505. From the funds appropriated in part 1 for historical
administration and services, $49,700.00 shall be allocated to
support the operations of the Michigan freedom trail commission as
specified in section 4 of the Michigan freedom trail commission
act, 1998 PA 409, MCL 399.84. These funds shall be used to
reimburse commission members, to pay for necessary contractual
services of the commission, and to hire not more than 1.0 FTE
position in the department's Michigan historical center to support
commission operations.
Sec. 506. Proceeds in excess of costs incurred in the conduct
of auctions, sales, or transfers of artifacts no longer considered
suitable for the collections of the state historical museum are
appropriated to the department and may be expended upon receipt for
additional material for the collection.
LIBRARY OF MICHIGAN
Sec. 601. In order to receive subregional state aid as
appropriated in part 1 to the library of Michigan, a subregional
library's fiscal agency must agree to maintain local funding
support at the same level in the current fiscal year as in the
fiscal agency's preceding fiscal year. If a reduction in
expenditures equally affects all agencies in a local unit of
government that is the subregional library's fiscal agency, that
reduction shall not be interpreted as a reduction in local support
and shall not disqualify a subregional library from receiving state
aid under part 1. If a reduction in income affects a library
cooperative or district library that is a subregional library's
fiscal agency or a reduction in expenditures for the subregional
library's fiscal agency, a reduction in expenditures for the
subregional library shall not be interpreted as a reduction in
local support and shall not disqualify a subregional library from
receiving state aid under part 1.
Sec. 602. The funds appropriated in part 1 for a subregional
library shall not be released until a budget for that subregional
library has been approved by the department for expenditures for
library services directly serving the blind and persons with
disabilities. Subregional state aid shall be used only for
providing services to the blind and to persons with disabilities.
Sec. 603. Of the funds appropriated in part 1 for the operation
of the library of Michigan, a portion may be used for statewide
database access such as making computerized databases, searches of
those databases, and the products of those searches available
through the libraries of Michigan. Only those libraries that
qualify under the federal library services and technology act,
subtitle B of title II of the museum and library services act,
title II of the arts, humanities, and cultural affairs act of 1976,
Public Law 94-462, 110 Stat. 3009-295, are eligible to participate
in these activities.