ALL GENERAL GOVERNMENT

FY 2007-08

Summary: SB 229 H-1

Analysts: Al Valenzio, Mark Wolf, and Kim O'Berry

	FY 2006-07	FY 2007-08	FY 2007-08	FY 2007-08	*Difference:* *House from FY 2006-07 Enacted*
	Enacted	Executive	Senate	House	*Amount*	%
Gross	$2,993,657,000	$3,172,936,600	$3,061,156,300	$3,170,398,600	176,741,600	5.9
IDG/IDT	588,846,200	631,919,000	619,593,900	622,411,800	33,565,600	5.4
Federal	103,227,200	108,144,700	110,410,100	109,242,700	6,015,500	5.5
Local	2,766,200	2,800,700	2,800,700	2,800,700	34,500	1.2
Private	1,250,100	1,262,900	1,262,900	1,262,900	12,800	1.0
Restricted	1,658,253,000	1,747,799,800	1,678,870,200	1,747,396,800	89,143,800	5.4
GF/GP	$639,314,300	$681,009,500	$648,218,500	$687,283,700	$47,969,400	7.5
FTEs	7,290.4	7,280.9	7,280.9	7,300.3	9.9	0.1

The totals above include theMichigan Strategic Fund budget which was not included in the FY 2007 General Government Act and which is not included in the Senate version of the General Government bill.

Departments and agencies included under this budget bill are the Executive Office, the Legislature, and the departments of Attorney General, Civil Rights, Information Technology, Management and Budget (including Civil Service), State, and Treasury (including Lottery, the Gaming Control Board, and the Michigan Strategic Fund). The Department of Treasury budget also includes revenue sharing payments to local units of government.

The House budget is $176.7 million Gross, or 5.9%, and $48.0 million GF/GP, or 7.5%, over FY 2007 enacted appropriated levels. 84% of the increase in the Gross Appropriation ($163.5 million) is attributable to three areas: (1) additional revenue sharing funds for collaborative efforts ($54.3 million); (2) increased general obligation debt service ($19.8 million); (3) funding from the 21^st Century Fund ($75 million).

ATTORNEY GENERAL

Summary: SB 229 H-1

FY 2007-08

Analyst: Mark Wolf

	FY 2006-07	FY 2007-08	FY 2007-08	FY 2007-08	*Difference:* *House from FY 2006-07 Enacted*
	Enacted	Executive	Senate	House	*Amount*	%
Gross	$68,532,300	$76,232,400	$68,910,800	$73,630,800	*$5,098,500*	*7.4*
IDG/IDT	13,914,300	25,839,900	14,364,500	21,780,300	7,866,000	56.5
Federal	10,236,500	7,913,900	10,179,300	7,816,000	(2,420,500)	(23.6)
Local	0	0	0	0	0	0.0
Private	0	0	0	0	0	0.0
Restricted	11,485,500	9,613,100	12,173,500	11,169,000	(316,500)	(2.8)
GF/GP	$32,896,000	$32,865,500	$32,193,500	$32,865,500	($30,500)	(0.1
FTEs	565.0	562.0	562.0	562.0	(3.0)	(0.5)

Overview

The Attorney General serves as legal counsel for state departments, agencies, boards, commissions, and their officers; brings actions and intervenes in cases on the state’s behalf; and represents legislators and judges who may be sued while acting in their official capacities. The Attorney General issues opinions on questions of law submitted by members of the Legislature and others; serves as chief law enforcement officer of the state; and has supervisory powers over all local prosecuting attorneys. The Department’s mission is to protect the common legal rights of citizens; defend the Constitution and the laws of the state; and represent the legal interests of government. The Department’s goals are to make the state a safe place for its citizens; offer justice to the victims of crime; defend common natural resources and monetary assets of the state; and deliver excellent legal services at a minimum cost to taxpayers.

Major Budget Changes From FY 2006-07 Enacted Appropriations	Executive Change	Senate Change	House Change
*1. Fund Source Adjustments* Adjusts IDG, federal, and state restricted fund sources in order to more accurately reflect how legal services provided by the Department of Attorney General are paid for.	Gross IDG Federal Restricted GF/GP	$4,052,900 7,098,400 (2,443,400) (602,100) $0	$0 0 0 0 $0	$4,052,900 7,098,400 (2,443,400) (602,100) $0
*2. Administrative Reductions* Reduces amount of funding available for administrative expenses by $1.3 million. Savings are anticipated to be generated through administrative efficiencies.	Gross GF/GP	($1,303,100) ($1,303,100)	($1,303,100) ($1,303,100)	($1,303,100) ($1,303,100)
*3. Eliminate Byrne Grant Funding (PACC)* Reflects elimination of Byrne grant funding that has been made available to the department from the federal government.	FTEs Gross Federal GF/GP	(3.0) ($225,000) (225,000) $0	(3.0) ($225,000) (225,000) $0	(3.0) ($225,000) (225,000) $0
*4. Eliminate Funding for Early Retirement Sick Leave Payouts* Eliminates $71,300 associated with early retirement sick leave payouts. Employees who retired under the Early Out in 2002 received sick leave payouts over a 5-year period of time. FY 2007 was the last year of the payments.	Gross GF/GP	($71,300) ($71,300)	($71,300) ($71,300)	($71,300) ($71,300)
*5. Real Estate Fraud Investigations* The Senate includes additional funding for real estate fraud investigations.	Gross GF/GP	$0 $0	$322,300 $322,300	$0 $0
*6. Economic Adjustments* Includes additional funding for salaries and wages, insurances, retirement, worker's compensation, and building occupancy charges. The Senate includes addition funding for economic adjustments, but to a lesser extent due to not included the fund source adjustments.	Gross IDG Federal Restricted GF/GP	$2,645,000 767,600 247,900 285,600 $1,343,900	$2,327,600 450,200 167,800 365,700 $1,343,900	$2,645,000 767,600 247,900 285,600 $1,343,900
*7. Budgetary Savings* The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department.	Gross GF/GP	$0 $0	($672,000) ($672,000)	$0 $0

Major Budget Changes From FY 2006-07 Enacted Appropriations

Executive Change

Senate

Change

House

Change

1. Fund Source Adjustments

Adjusts IDG, federal, and state restricted fund sources in order to more accurately reflect how legal services provided by the Department of Attorney General are paid for.

Gross

IDG

Federal

Restricted

GF/GP

$4,052,900

7,098,400

(2,443,400)

(602,100)

$4,052,900

7,098,400

(2,443,400)

(602,100)

2. Administrative Reductions

Reduces amount of funding available for administrative expenses by $1.3 million. Savings are anticipated to be generated through administrative efficiencies.

Gross

GF/GP

($1,303,100)

($1,303,100)

($1,303,100)

($1,303,100)

($1,303,100)

($1,303,100)

3. Eliminate Byrne Grant Funding (PACC)

Reflects elimination of Byrne grant funding that has been made available to the department from the federal government.

FTEs

Gross

Federal

GF/GP

(3.0)

($225,000)

(225,000)

(3.0)

($225,000)

(225,000)

(3.0)

($225,000)

(225,000)

4. Eliminate Funding for Early Retirement Sick Leave Payouts

Eliminates $71,300 associated with early retirement sick leave payouts. Employees who retired under the Early Out in 2002 received sick leave payouts over a 5-year period of time. FY 2007 was the last year of the payments.

Gross

GF/GP

($71,300)

($71,300)

($71,300)

($71,300)

($71,300)

($71,300)

5. Real Estate Fraud Investigations

The Senate includes additional funding for real estate fraud investigations.

Gross

GF/GP

$322,300

$322,300

6. Economic Adjustments

Includes additional funding for salaries and wages, insurances, retirement, worker's compensation, and building occupancy charges. The Senate includes addition funding for economic adjustments, but to a lesser extent due to not included the fund source adjustments.

Gross

IDG

Federal

Restricted

GF/GP

$2,645,000

767,600

247,900

285,600

$1,343,900

$2,327,600

450,200

167,800

365,700

$1,343,900

$2,645,000

767,600

247,900

285,600

$1,343,900

7. Budgetary Savings

The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department.

Gross

GF/GP

($672,000)

($672,000)

Major Boilerplate Changes From FY 2006-07

Sec. 301. Contingency Funding – NEW

Executive and House Committee include language which appropriates federal, state restricted, local, and private contingency funding that can be expended only upon legislative transfer to a specific line item.

Sec. 307. Antitrust Revenue – DELETED

The Senate added language that was previously vetoed by the Governor in the FY 2007 Act that appropriates up to $250,000 of the revenue received by the department for antitrust, securities fraud, consumer protection, class action enforcement, or attorneys fees recovered by the department to litigate such cases. The Executive and House Committee did not include this language.

Sec. 310. Proceeds Received by the Attorney General – NEW

Executive and House Committee include language which require all money or other proceeds received by the Department of Attorney General for debts due or penalties forfeited to the people of this state, or deriving from settlement of any lawsuit against a private individual or business or any other private organization, to be deposited to the state Treasury into a restricted fund to be used as provided by law; requires a quarterly report on case names, case file numbers, court docket numbers, and presiding courts for every matter the Department of Attorney General settles in the preceding fiscal quarter. The Senate does not include this language.

Sec. 310. Child Support Enforcement Funding – DELETED

Executive and House Committee do not include language which requires the Department of Human Services to maintain a cooperative agreement with the Department of Attorney General for federal Title IV-D funding to be used to support child support enforcement activities and authorizes access for the Attorney General to information used to locate parents who fail to pay court ordered support. The Senate retains this section.

Sec. 310a. Prohibit the Attorney General’s Image or Likeness on Advertising – NEW

The House Committee adds a section prohibiting the department from using the proceeds of a settlement on advertising and public service messages using a reference to, or the image or voice of, the attorney general. The Executive and Senate do not include this section.

Sec. 311. Prohibitions on Expenditure of Funding – NEW

Executive and House Committee include language which prohibits the Department of Attorney General from receiving and expending funds, in addition to those appropriated, for legal services provided to other state departments except for expert witnesses, court costs, or other non-salary litigation expenses associated with pending legal actions. The Senate does not include this section.

Sec. 311. Medicaid Fraud Awards - DELETED

The Senate added a section allowing funds received by the department for violations of the Medicaid False Claim Act to be appropriated to the department. The Executive and House Committee do not include this section.

CIVIL RIGHTS

Summary: SB 229 H-1

FY 2007-08

Analyst: Kim O'Berry

	FY 2006-07	FY 2007-08	FY 2007-08	FY 2007-08	*Difference:* *House from FY 2006-07 Enacted*
	Enacted	Executive	Senate	House	*Amount*	%
Gross	$14,020,200	$14,490,700	$13,759,400	$14,942,000	*$921,800*	*6.6*
IDG/IDT	0	0	0	0	0	0.0
Federal	1,566,200	2,054,100	2,054,100	2,054,100	487,900	31.2
Local	0	0	0	0	0	0.0
Private	0	0	0	0	0	0.0
Restricted	0	0	0	0	0	0.0
GF/GP	$12,454,000	$12,436,600	$11,705,300	$12,887,900	$433,900	3.5

FTEs	141.0	141.0	141.0	141.0	0.0	0.0

Overview

The Michigan Civil Rights Commission is charged with investigating alleged discrimination against any person because of religion, race, color, or national origin and is directed to “secure the equal protection of such civil rights without such discrimination.” The Michigan Department of Civil Rights serves as the administrative arm charged with implementing policies of the Commission. The Department provides educational programs that promote voluntary compliance with civil rights laws, investigates and resolves discrimination complaints, disseminates information that explains the rights and responsibilities of Michigan citizens as provided by law, and provides information and services to businesses on diversity initiatives, equal employment law, procurement opportunities, feasibility studies, and joint venture/strategic alliance matchmaking.

Major Budget Changes From FY 2006-07 Enacted Appropriations	Executive Change	Senate Change	House Change
*1. Increased Federal Funding* Includes authorization for the Department to receive additional federal grant funding made available from the United States Department of Housing and Urban Development ($200,000) and the Equal Employment Opportunity Commission ($200,000). As a result of the additional federal grant funding, GF/GP is reduced by a like amount.	Gross Federal GF/GP	$0 400,000 ($400,000)	$0 400,000 ($400,000)	$400,000 400,000 $0
*2. Administrative Reductions* Reduces amount of funding available for administrative expenses by $51,300. Savings are anticipated to be generated through administrative efficiencies.	Gross GF/GP	($51,300) ($51,300)	($51,300) ($51,300)	$0 $0
*3. Economic Adjustments* Includes additional funding for salaries and wages, insurances, retirement, and worker's compensation; reduces funding for building occupancy charges.	Gross Federal GF/GP	$605,500 87,900 $517,600	$605,500 87,900 $517,600	$605,500 87,900 $517,600
*4. GF/GP Reduction* The Senate reduces the Civil Rights Operations line by ($442,000) and Information Technology Services and Projects line by ($30,500). The Executive and House Committee do not make this recommendation.	Gross GF/GP	$0 $0	($472,500) ($472,500)	$0 $0
*5. Budgetary Savings* The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department. The Executive and House Committee do not make this recommendation.	Gross GF/GP	$0 $0	($258,800) ($258,000)	$0 $0

Major Budget Changes From FY 2006-07 Enacted Appropriations

Executive Change

Senate

Change

House

Change

1. Increased Federal Funding

Includes authorization for the Department to receive additional federal grant funding made available from the United States Department of Housing and Urban Development ($200,000) and the Equal Employment Opportunity Commission ($200,000). As a result of the additional federal grant funding, GF/GP is reduced by a like amount.

Gross

Federal

GF/GP

400,000

($400,000)

400,000

($400,000)

$400,000

400,000

2. Administrative Reductions

Reduces amount of funding available for administrative expenses by $51,300. Savings are anticipated to be generated through administrative efficiencies.

Gross

GF/GP

($51,300)

($51,300)

($51,300)

($51,300)

3. Economic Adjustments

Includes additional funding for salaries and wages, insurances, retirement, and worker's compensation; reduces funding for building occupancy charges.

Gross

Federal

GF/GP

$605,500

87,900

$517,600

$605,500

87,900

$517,600

$605,500

87,900

$517,600

4. GF/GP Reduction

The Senate reduces the Civil Rights Operations line by ($442,000) and Information Technology Services and Projects line by ($30,500). The Executive and House Committee do not make this recommendation.

Gross

GF/GP

($472,500)

($472,500)

5. Budgetary Savings

The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department. The Executive and House Committee do not make this recommendation.

Gross

GF/GP

($258,800)

($258,000)

Major Boilerplate Changes From FY 2006-07
*Sec. 401. Contingency Funding* – NEW Executive and House Committee include language which appropriates $2.0 million for federal contingency funding that can be expended only upon legislative transfer to a specific line item. The Senate does not include this language.
*Sec. 404. Use of Appropriated Funds to Provide Legal Services* – NOT INCLUDED Executive and House Committee do not include language which states funds appropriated in part 1 shall not be used to hire a person to provide legal services that are the responsibility of the attorney general. Senate includes the new language.

Major Boilerplate Changes From FY 2006-07

Sec. 401. Contingency Funding – NEW

Executive and House Committee include language which appropriates $2.0 million for federal contingency funding that can be expended only upon legislative transfer to a specific line item. The Senate does not include this language.

Sec. 404. Use of Appropriated Funds to Provide Legal Services – NOT INCLUDED

Executive and House Committee do not include language which states funds appropriated in part 1 shall not be used to hire a person to provide legal services that are the responsibility of the attorney general. Senate includes the new language.

INFORMATION TECHNOLOGY

Summary: SB 229 H-1

FY 2007-08

Analyst: Mark Wolf

	FY 2006-07	FY 2007-08	FY 2007-08	FY 2007-08	*Difference:* *House from FY 2006-07 Enacted*
	Enacted	Executive	Senate	House	*Amount*	%
Gross	$378,222,000	$409,955,600	$409,110,400	$402,759,900	*$24,537,900*	*6.5*
IDG/IDT	378,222,000	409,955,600	409,110,400	402,759,900	24,537,900	6.5
Federal	0	0	0	0	0	0.0
Local	0	0	0	0	0	0.0
Private	0	0	0	0	0	0.0
Restricted	0	0	0	0	0	0.0
GF/GP	$0	$0	0	$0	$0	0.0
FTEs	1,782.4	1,780.4	1,780.4	1,780.4	(2.0)	(0.1)

Overview

The Department of Information Technology (DIT) acts as a general contractor between the state’s information technology users and private sector providers of information technology (IT) products and services. The Department’s services include application development and maintenance; desktop, mainframe, server, and local area network computer support and management; contract, project, and procurement planning; telecommunication services; security; and software and software licensing. The Department utilizes existing technology funding and state employees from within the other 19 executive branch departments and agencies. Each state department and agency requests spending authority to fund IT-related activities and pays for technology services rendered by DIT through an interdepartmental grant. Administration of fund sources remains with each state department/agency.

Major Budget Changes From FY 2006-07 Enacted Appropriations	Executive Change	Senate Change	House Change
*1. Economic Adjustments* Includes additional funding for salaries and wages, insurances, retirement, worker's compensation, and building occupancy charges.	Gross IDG GF/GP	$6,342,100 6,342,100 $0	$6,342,100 6,342,100 $0	$6,342,100 6,342,100 $0
*2. Program Enhancements* Makes the following adjustments to reflect appropriations for program enhancements made in other state department budgets: $712,000 and 1.0 FTE position to the Department of Management and Budget for security and disaster recovery efforts, to implement electronic deposit of retirement payments from public schools, and to expand customer contact and quality management software; $560,300 to the Department of Human Services for Children's Welfare system improvements and the Daycare Case Review project; $500,000 to the Department of Environmental Quality for the Information Lifecycle Management System; $400,000 to the Department of Transportation for replacement of the PowerBuilder development program; and $176,000 to the Department of Education for additional security controls as a result of audit findings.	FTEs Gross IDG GF/GP	1.0 $2,348,300 2,348,300 $0	1.0 $2,348,300 2,348,300 $0	1.0 $2,348,300 2,348,300 $0
*3. Base Adjustments and Administrative Reductions* Makes the following adjustments to more accurately reflect what has been appropriated for information technology services and projects in other state department budgets: · Adds $17.0 million to the Department of Human Services to reflect transfer of the Juvenile Justice Information System, reflect transfer of 2.0 system security FTE positions, reflect fund source shift from federal funds to GF/GP for elimination of child support incentives, for on-going development of the Integrated Service Delivery Project, and to properly align federal authorization for Child Support Automation. · Adds $7.0 million to the Department of State Police to assist with the projected shortfall in the IT line item, reflect increase in local subscriber fees for the Michigan Public Safety Communication System, and reflect transfer of IT costs currently being paid outside of the IDG. · Adds $1.3 million to the Department of Community Health to reflect the transfer of building lease costs and contractual savings to the IT line item, restore unrealized savings for price reductions, and reflect additional federal grant funding for the WIC pilot program. · Adds $1.2 million to the Department of Corrections for desktop maintenance and one-time computer costs, upgrading telecommunications infrastructure, and upgrading current stand-alone timekeeping system. · Adds $500,000 to the Department of State to reflect transfer of equipment and maintenance for the Uniform Commercial Code program to the IT line item. · Adds $140,000 to the Department of History, Arts, and Libraries to cover web portal expenses. · Removes $1.0 million from the Department of Labor and Economic Growth to reflect a portion of the savings taken as a part of their administrative reduction plan. · Removes $580,000 in one-time funding from the Department of Management and Budget for system changes to the retirement systems and $150,000 to reflect savings that are expected to be achieved in MAIN through vacancy management and administrative efficiencies. · Removes $500,000 in one-time funding from the Department of Corrections for migration to the OMNI system and $300,000 in one-time funding for OMNI server replacement. · Removes $443,700 from the Department of Information Technology to reflect their portion of savings taken as part of the 5% administrative reduction plan. · Removes $145,000 from the Department of Treasury to reflect transfer of 1.0 FTE position out of the Department of Information Technology to the Tax Processing unit in Treasury and reduction of available funding from the Land Reutilization Fund. · Removes $50,000 from the Department of Transportation to properly reflect anticipated revenues. · Reduces the funding for the Department of Natural Resources by $4,500 to reflect the loss of funding from the Michigan Civilian Conservation Corps Endowment Fund, which was transferred to the General Fund.	FTEs Gross IDG GF/GP	(3.0) $24,805,400 24,805,400 $0	(3.0) $24,809,900 24,809,900 $0	(3.0) $24,805,400 24,805,400 $0
This reduction was included as part of the Executive Revision dated 6/25/2007. The Senate does not include this reduction, the House Committee does.
The Senate included additional IT reductions for Civil Rights ($30,500), Civil Service ($9,500), DMB (597,100), and Treasury ($212,000). I The House Committee does not include the Executive's administrative reductions for the General Government agencies of Civil Rights ($1,300), Lottery ($51,700), DMB ($165,700), Civil Service ($12,500), MCGB ($2,300), and Treasury ($40,200). The House Committee also includes reductions for DLEG ($100,000); Education ($101,300); and DHS ($7,373,200).	Gross IDG GF/GP	$0 0 $0	($849,700) (849,700) $0	($7,300,800) (7,300,800) $0
*4. Eliminate Early Retirement Sick Leave Payouts* Eliminates $281,200 associated with early retirement sick leave payouts. Employees who retired under the Early Out in 2002 received sick leave payouts over a 5-year period of time. FY 2007 was the last year of payments.	Gross IDG GF/GP	($281,200) (281,200) $0	($281,200) (281,200) $0	($281,200) (281,200) $0
*5. Human Resources Optimization Project* Reduces funding by $1.5 million in order to more accurately reflect the Department's portion of Human Resources Optimization user charges paid to the Department of Civil Service.	Gross IDG GF/GP	($1,481,000) (1,481,000) $0	($1,481,000) (1,481,000) $0	($1,481,000) (1,481,000) $0

Major Budget Changes From FY 2006-07 Enacted Appropriations

Executive Change

Senate

Change

House

Change

1. Economic Adjustments

Includes additional funding for salaries and wages, insurances, retirement, worker's compensation, and building occupancy charges.

Gross

IDG

GF/GP

$6,342,100

6,342,100

$6,342,100

6,342,100

$6,342,100

6,342,100

2. Program Enhancements

Makes the following adjustments to reflect appropriations for program enhancements made in other state department budgets: $712,000 and 1.0 FTE position to the Department of Management and Budget for security and disaster recovery efforts, to implement electronic deposit of retirement payments from public schools, and to expand customer contact and quality management software; $560,300 to the Department of Human Services for Children's Welfare system improvements and the Daycare Case Review project; $500,000 to the Department of Environmental Quality for the Information Lifecycle Management System; $400,000 to the Department of Transportation for replacement of the PowerBuilder development program; and $176,000 to the Department of Education for additional security controls as a result of audit findings.

FTEs

Gross

IDG

GF/GP

1.0

$2,348,300

2,348,300

1.0

$2,348,300

2,348,300

1.0

$2,348,300

2,348,300

3. Base Adjustments and Administrative Reductions

Makes the following adjustments to more accurately reflect what has been appropriated for information technology services and projects in other state department budgets:

· Adds $17.0 million to the Department of Human Services to reflect transfer of the Juvenile Justice Information System, reflect transfer of 2.0 system security FTE positions, reflect fund source shift from federal funds to GF/GP for elimination of child support incentives, for on-going development of the Integrated Service Delivery Project, and to properly align federal authorization for Child Support Automation.

· Adds $7.0 million to the Department of State Police to assist with the projected shortfall in the IT line item, reflect increase in local subscriber fees for the Michigan Public Safety Communication System, and reflect transfer of IT costs currently being paid outside of the IDG.

· Adds $1.3 million to the Department of Community Health to reflect the transfer of building lease costs and contractual savings to the IT line item, restore unrealized savings for price reductions, and reflect additional federal grant funding for the WIC pilot program.

· Adds $1.2 million to the Department of Corrections for desktop maintenance and one-time computer costs, upgrading telecommunications infrastructure, and upgrading current stand-alone timekeeping system.

· Adds $500,000 to the Department of State to reflect transfer of equipment and maintenance for the Uniform Commercial Code program to the IT line item.

· Adds $140,000 to the Department of History, Arts, and Libraries to cover web portal expenses.

· Removes $1.0 million from the Department of Labor and Economic Growth to reflect a portion of the savings taken as a part of their administrative reduction plan.

· Removes $580,000 in one-time funding from the Department of Management and Budget for system changes to the retirement systems and $150,000 to reflect savings that are expected to be achieved in MAIN through vacancy management and administrative efficiencies.

· Removes $500,000 in one-time funding from the Department of Corrections for migration to the OMNI system and $300,000 in one-time funding for OMNI server replacement.

· Removes $443,700 from the Department of Information Technology to reflect their portion of savings taken as part of the 5% administrative reduction plan.

· Removes $145,000 from the Department of Treasury to reflect transfer of 1.0 FTE position out of the Department of Information Technology to the Tax Processing unit in Treasury and reduction of available funding from the Land Reutilization Fund.

· Removes $50,000 from the Department of Transportation to properly reflect anticipated revenues.

· Reduces the funding for the Department of Natural Resources by $4,500 to reflect the loss of funding from the Michigan Civilian Conservation Corps Endowment Fund, which was transferred to the General Fund.

FTEs

Gross

IDG

GF/GP

(3.0)

$24,805,400

24,805,400

(3.0)

$24,809,900

24,809,900

(3.0)

$24,805,400

24,805,400

This reduction was included as part of the Executive Revision dated 6/25/2007. The Senate does not include this reduction, the House Committee does.

The Senate included additional IT reductions for Civil Rights ($30,500), Civil Service ($9,500), DMB (597,100), and Treasury ($212,000). I

The House Committee does not include the Executive's administrative reductions for the General Government agencies of Civil Rights ($1,300), Lottery ($51,700), DMB ($165,700), Civil Service ($12,500), MCGB ($2,300), and Treasury ($40,200).

The House Committee also includes reductions for DLEG ($100,000); Education ($101,300); and DHS ($7,373,200).

Gross

IDG

GF/GP

($849,700)

(849,700)

($7,300,800)

(7,300,800)

4. Eliminate Early Retirement Sick Leave Payouts

Eliminates $281,200 associated with early retirement sick leave payouts. Employees who retired under the Early Out in 2002 received sick leave payouts over a 5-year period of time. FY 2007 was the last year of payments.

Gross

IDG

GF/GP

($281,200)

(281,200)

($281,200)

(281,200)

($281,200)

(281,200)

5. Human Resources Optimization Project

Reduces funding by $1.5 million in order to more accurately reflect the Department's portion of Human Resources Optimization user charges paid to the Department of Civil Service.

Gross

IDG

GF/GP

($1,481,000)

(1,481,000)

($1,481,000)

(1,481,000)

($1,481,000)

(1,481,000)

Major Boilerplate Changes From FY 2006-07
*Sec. 573.* *Sale* *of Paid Advertising –* REVISED The House Committee and Senate include language placing a $250,000 limit on Department collections for the sale of paid advertising and add carryforward authorization for revenues collected. Executive deletes $250,000 limit. The Executive and House Committee permitting the Department to accept gifts, bequests, donations, grants, and other contributions to support the cost of the state website or services. The Senate does not include this language. The Executive added language authorizing the carryforward of funds received under this section. The House Committee and Senate do not include this language.
*Sec. 574. Report on Expenditures Made for Provision of Services –* RETAINED The House Committee and Senate include language which requires a report on expenditures made for providing information and technical services, publications, maps, and other products. Executive does not include reporting requirement language.
*Sec. 578. Report on Amounts Appropriated by Fund Source –* RETAINED The House Committee and Senate include language that requires a report on the amounts appropriated by fund source for each department and a listing of expenditures made from those appropriations. Executive deletes this language.
*Sec. 579. Report on Life-Cycle of IT Hardware and Software –* RETAINED The House Committee and Senate include language that requires a report on the life-cycle of information technology-related hardware and software. The Executive deletes this language.
*Sec. 581. Report on Technology Assets of the State –* REVISED The Executive and House Committee do not include requirement to report on state's technology assets and initiatives that the state could benefit from. The Executive and House Committee retain language requiring the Department to assess the state's information technology assets. The Senate deletes this section.
*Sec. 584. Report on Information and Referral Services –* DELETED The Executive and House Committee delete the requirement that the department report on all information and referral services that exist for certain state departments that would result from 211 service. The Senate retains the reporting requirement, and expands the report to include all state departments.
*Sec. 585. Report on Child Support Enforcement System –* RETAINED The House Committee and Senate include a requirement for a report on amount expended for Child Support Enforcement System, revisions made to spending plans, and amount of penalties paid to federal government. Executive does not include language.
*Sec. 586. Adjustment of Appropriation Line Items –* NEW The Executive and House Committee include language which authorizes adjustment of appropriation line items in the DIT budget when corresponding adjustments are made in the other state department budgets. The Senate deletes this section.

Major Boilerplate Changes From FY 2006-07

Sec. 573. Sale of Paid Advertising – REVISED

The House Committee and Senate include language placing a $250,000 limit on Department collections for the sale of paid advertising and add carryforward authorization for revenues collected. Executive deletes $250,000 limit.

The Executive and House Committee permitting the Department to accept gifts, bequests, donations, grants, and other contributions to support the cost of the state website or services. The Senate does not include this language.

The Executive added language authorizing the carryforward of funds received under this section. The House Committee and Senate do not include this language.

Sec. 574. Report on Expenditures Made for Provision of Services – RETAINED

The House Committee and Senate include language which requires a report on expenditures made for providing information and technical services, publications, maps, and other products. Executive does not include reporting requirement language.

Sec. 578. Report on Amounts Appropriated by Fund Source – RETAINED

The House Committee and Senate include language that requires a report on the amounts appropriated by fund source for each department and a listing of expenditures made from those appropriations. Executive deletes this language.

Sec. 579. Report on Life-Cycle of IT Hardware and Software – RETAINED

The House Committee and Senate include language that requires a report on the life-cycle of information technology-related hardware and software. The Executive deletes this language.

Sec. 581. Report on Technology Assets of the State – REVISED

The Executive and House Committee do not include requirement to report on state's technology assets and initiatives that the state could benefit from. The Executive and House Committee retain language requiring the Department to assess the state's information technology assets. The Senate deletes this section.

Sec. 584. Report on Information and Referral Services – DELETED

The Executive and House Committee delete the requirement that the department report on all information and referral services that exist for certain state departments that would result from 211 service. The Senate retains the reporting requirement, and expands the report to include all state departments.

Sec. 585. Report on Child Support Enforcement System – RETAINED

The House Committee and Senate include a requirement for a report on amount expended for Child Support Enforcement System, revisions made to spending plans, and amount of penalties paid to federal government. Executive does not include language.

Sec. 586. Adjustment of Appropriation Line Items – NEW

The Executive and House Committee include language which authorizes adjustment of appropriation line items in the DIT budget when corresponding adjustments are made in the other state department budgets. The Senate deletes this section.

Major Budget Changes From FY 2006-07 Enacted Appropriations	Executive Change	Senate Change	House Change
*1. Legislative Corrections Ombudsman* House recommendation provides funding from an IDG from the Department of Corrections.	Gross IDG GF/GP	$0 0 $0	$0 0 $0	$1,250,000 1,250,000 $0
*2. Sentencing Guidelines Commission* House recommendation provides funding from an IDG from the Department of Corrections.	Gross IDG GF/GP	$0 0 $0	$0 0 $0	$500,000 500,000 $0
*3. Economic Adjustments* Includes additional funding for salaries and wages, insurances, retirement, worker's compensation, and Anderson Building rent.	Gross GF/GP	$0 $0	$0 $0	$1,657,900 $1,657,900
*4. Budgetary Savings* The Senate includes an unspecified budgetary savings reduction. The Executive and House do not make this recommendation.	Gross GF/GP	$0 $0	($4,000,000) ($4,000,000)	$0 $0

Major Budget Changes From FY 2006-07 Enacted Appropriations	Executive Change	Senate Change	House Change
*1. Economic Adjustments* Includes additional funding for salaries and wages, insurances, retirement, worker's compensation, and building rent.	Gross GF/GP	$0 $0	$452,000 $452,000	$452,200 $452,200
*2. Budgetary Savings* The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department. The Executive and House do not make this recommendation.	Gross GF/GP	$0 $0	($162,600) ($162,600)	$0 $0
*2. Legislative Retirement System Audit* The House Committee adds a $100 placeholder using restricted funds to fund an audit or the Legislative Retirement System.	Gross Restricted	$0 0	$0 0	$100 100

MANAGEMENT AND BUDGET

Summary: SB 229 H-1

FY 2007-08

Analyst: Kim O'Berry

	FY 2006-07	FY 2007-08	FY 2007-08	FY 2007-08	*Difference:* *House from FY 2006-07 Enacted*
	Enacted	Executive	Senate	House	*Amount*	%
Gross	$512,689,100	$511,806,400	$509,257,300	$513,963,200	*$1,274,100*	*0.2*
IDG/IDT	161,081,600	162,686,100	162,686,100	162,687,700	1,606,100	1.0
Federal	4,779,100	4,779,100	4,779,100	5,623,600	844,500	17.7
Local	1,700,000	1,700,000	1,700,000	1,700,000	0	0.0
Private	150,000	150,000	150,000	150,000	0	0.0
Restricted	69,596,400	67,824,000	67,824,000	67,847,000	(1,749,400)	(2.5)
GF/GP	$275,382,000	$274,667,200	$272,118,100	$275,954,900	$572,900	0.2

FTEs	995.5	995.0	995.0	1,009.4	13.9	1.4

All numbers have been adjusted to reflect the transfer of the Department of Civil Service to the Department of Management and Budget as a result of Executive Order 2007-30.

Overview

The Department of Management and Budget (DMB) is the interdepartmental service and management agency responsible for ensuring proper financial record keeping for state agencies; managing capital outlay projects, state property, state purchasing programs, and the state’s retirement systems; supervising the state motor vehicle fleet, and providing office support services to state agencies. The Office of the State Budget, housed within DMB, prepares, presents, and executes the state budget on behalf of the Governor. The Department has several autonomous units, including Office of the State Employer, Office of the Children’s Ombudsman, Office of Regulatory Reform, Michigan State Fair, and State Building Authority.

Major Budget Changes From FY 2006-07 Enacted Appropriations	Executive Change	Senate Change	House Change
DEPARTMENT OF MANAGEMENT AND BUDGET *1. Office of Retirement Services – IT Adjustments* Includes additional funding for the following program enhancements: $300,000 to provide the system the ability to add a new spouse for an existing retiree as a pension beneficiary; $150,000 to hire a full-time security officer for retirement-related information technology systems; $150,000 to implement the electronic deposit of retirement payments to the state from public schools; and $412,000 for software to record customer contacts and improve quality.	Gross Restricted GF/GP	$1,012,000 1,012,000 $0	$1,012,000 1,012,000 $0	$1,012,000 1,012,000 $0
2. Eliminate One-Time Appropriations Eliminates one-time appropriation of $370,000 as a result of completion of the Social Security Number Privacy project and $210,000 used to purchase inter-active voice equipment at the customer call center.	Gross Restricted GF/GP	($580,000) (580,000) $0	($580,000) (580,000) $0	($580,000) (580,000) $0
3. *State* *Building* *Authority Rent* Reflects adjustments made for projected rent payments, consistent with anticipated rent payments for previously constructed projects.	Gross Restricted GF/GP	($4,575,000) (3,575,000) ($1,000,000)	($4,575,000) (3,575,000) ($1,000,000)	($4,575,000) (3,575,000) ($1,000,000)
*4. Building Occupancy Adjustments* Includes an additional $335,300 to cover costs of increased rent payments for leased facilities and $71,300 to cover operational costs of new Joint Operations Center (building in downtown Lansing).	Gross IDG GF/GP	$406,600 406,600 $0	$406,600 406,600 $0	$406,600 406,600 $0
*5. Professional Development Funds* Includes additional funding to cover costs of agreements reached and approved by the Civil Service Commission on professional development funds. These appropriations are funded through charges to other state departments based on their proportionate share of employees in each of the groups.	Gross IDG GF/GP	$154,000 154,000 $0	$154,000 154,000 $0	$154,000 154,000 $0
*6. Administrative Reductions* Reduces amount of funding available for administrative expenses by $952,200. Savings are anticipated to be generated through staffing reductions, fund source shifts, real estate optimization, changes to building security, and changes to the ID Mail Delivery Program.	FTEs Gross IDG Restricted GF/GP	(4.5) ($952,200) (439,900) (12,500) ($499,800)	(4.5) ($952,200) (439,900) (12,500) ($499,800)	0.0 $0 0 0 $0
*7. Economic Adjustments* Includes additional funding for salaries and wages, insurances, retirement, and worker's compensation; reduces funding for building occupancy charges.	Gross IDG Restricted GF/GP	$3,381,900 1,187,100 703,300 $1,239,100	$3,381,900 1,187,100 703,300 $1,239,100	$3,381,900 1,187,100 703,300 $1,239,100
*8. Department of Human Services – Internal Audit* Reflects transfer of Internal Audit line item from Department of Human Services to Department of Management and Budget as a result of Executive Order 2007-31.	FTEs Gross Federal GF/GP	0.0 $0 0 $0	0.0 $0 0 $0	11.9 $1,400,000 844,500 $555,500
*9. GF/GP Reduction* The Senate includes a reduction in the following lines: Executive Operations ($41,900); Administrative Services ($51,800); Budget and Financial Management ($835,100); Office of the State Employer ($35,900); Business Support Services ($167,700); and the Information Technology line by ($9,500). The Executive and House do not make this recommendation.	Gross GF/GP	$0 $0	($1,141,900) ($1,141,900)	$0 $0
*10. Budgetary Savings* The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department. The Executive and House do not make this recommendation.	Gross GF/GP	$0 $0	($620,500) ($620,500)	$0 $0
CIVIL SERVICE *11. Administrative Reductions* Reduces amount of funding available for administrative expenses by $361,100. Savings are anticipated to be generated through administrative efficiencies.	Gross Restricted GF/GP	($361,100) (10,500) ($350,600)	($361,100) (10,500) ($350,600)	$0 0 $0
*12. Economic Adjustments* Includes additional funding for salaries and wages, insurances, and retirement; reduces funding for worker's compensation and building occupancy charges.	Gross IDG Restricted GF/GP	$818,300 87,800 539,500 $191,000	$818,300 87,800 539,500 $191,000	$818,300 87,800 539,500 $191,000
*13. GF/GP Reduction* The Senate reduces the Civil Service Operations line by ($94,100) and the Information Technology line by ($9,500). The Executive and House do not make this recommendation.	Gross GF/GP	$0 $0	($103,600) ($103,600)	$0 $0
*14. Budgetary Savings* The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department. The Executive and House do not make this recommendation.	Gross GF/GP	$0 $0	($95,500) ($95,500)	$0 $0

Major Budget Changes From FY 2006-07 Enacted Appropriations

Executive Change

Senate

Change

House

Change

DEPARTMENT OF MANAGEMENT AND BUDGET

1. Office of Retirement Services – IT Adjustments

Includes additional funding for the following program enhancements: $300,000 to provide the system the ability to add a new spouse for an existing retiree as a pension beneficiary; $150,000 to hire a full-time security officer for retirement-related information technology systems; $150,000 to implement the electronic deposit of retirement payments to the state from public schools; and $412,000 for software to record customer contacts and improve quality.

Gross

Restricted

GF/GP

$1,012,000

1,012,000

$1,012,000

1,012,000

$1,012,000

1,012,000

2. Eliminate One-Time Appropriations

Eliminates one-time appropriation of $370,000 as a result of completion of the Social Security Number Privacy project and $210,000 used to purchase inter-active voice equipment at the customer call center.

Gross

Restricted

GF/GP

($580,000)

(580,000)

($580,000)

(580,000)

($580,000)

(580,000)

3. State Building Authority Rent

Reflects adjustments made for projected rent payments, consistent with anticipated rent payments for previously constructed projects.

Gross

Restricted

GF/GP

($4,575,000)

(3,575,000)

($1,000,000)

($4,575,000)

(3,575,000)

($1,000,000)

($4,575,000)

(3,575,000)

($1,000,000)

4. Building Occupancy Adjustments

Includes an additional $335,300 to cover costs of increased rent payments for leased facilities and $71,300 to cover operational costs of new Joint Operations Center (building in downtown Lansing).

Gross

IDG

GF/GP

$406,600

406,600

$406,600

406,600

$406,600

406,600

5. Professional Development Funds

Includes additional funding to cover costs of agreements reached and approved by the Civil Service Commission on professional development funds. These appropriations are funded through charges to other state departments based on their proportionate share of employees in each of the groups.

Gross

IDG

GF/GP

$154,000

154,000

$154,000

154,000

$154,000

154,000

6. Administrative Reductions

Reduces amount of funding available for administrative expenses by $952,200. Savings are anticipated to be generated through staffing reductions, fund source shifts, real estate optimization, changes to building security, and changes to the ID Mail Delivery Program.

FTEs

Gross

IDG

Restricted

GF/GP

(4.5)

($952,200)

(439,900)

(12,500)

($499,800)

(4.5)

($952,200)

(439,900)

(12,500)

($499,800)

0.0

7. Economic Adjustments

Includes additional funding for salaries and wages, insurances, retirement, and worker's compensation; reduces funding for building occupancy charges.

Gross

IDG

Restricted

GF/GP

$3,381,900

1,187,100

703,300

$1,239,100

$3,381,900

1,187,100

703,300

$1,239,100

$3,381,900

1,187,100

703,300

$1,239,100

8. Department of Human Services – Internal Audit

Reflects transfer of Internal Audit line item from Department of Human Services to Department of Management and Budget as a result of Executive Order 2007-31.

FTEs

Gross

Federal

GF/GP

0.0

11.9

$1,400,000

844,500

$555,500

9. GF/GP Reduction

The Senate includes a reduction in the following lines: Executive Operations ($41,900); Administrative Services ($51,800); Budget and Financial Management ($835,100); Office of the State Employer ($35,900); Business Support Services ($167,700); and the Information Technology line by ($9,500). The Executive and House do not make this recommendation.

Gross

GF/GP

($1,141,900)

($1,141,900)

10. Budgetary Savings

The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department. The Executive and House do not make this recommendation.

Gross

GF/GP

($620,500)

($620,500)

CIVIL SERVICE

11. Administrative Reductions

Reduces amount of funding available for administrative expenses by $361,100. Savings are anticipated to be generated through administrative efficiencies.

Gross

Restricted

GF/GP

($361,100)

(10,500)

($350,600)

($361,100)

(10,500)

($350,600)

12. Economic Adjustments

Includes additional funding for salaries and wages, insurances, and retirement; reduces funding for worker's compensation and building occupancy charges.

Gross

IDG

Restricted

GF/GP

$818,300

87,800

539,500

$191,000

$818,300

87,800

539,500

$191,000

$818,300

87,800

539,500

$191,000

13. GF/GP Reduction

The Senate reduces the Civil Service Operations line by ($94,100) and the Information Technology line by ($9,500). The Executive and House do not make this recommendation.

Gross

GF/GP

($103,600)

($103,600)

14. Budgetary Savings

The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department. The Executive and House do not make this recommendation.

Gross

GF/GP

($95,500)

($95,500)

Major Boilerplate Changes From FY 2006-07
GENERAL SECTIONS OF BOILERPLATE *Sec. 205. Hiring Freeze –* RETAINED Executive and House Committee retain current year language by requiring the creation of a position or filling of any vacant position by any method necessary to provide for the basic daily living requirements of residents of the state institution or facility. Senate modifies current year language.
*Sec. 209. Purchase of Foreign Goods –* MODIFIED House Committee and Senate modifies current year language by including that preference should be given to goods and services, or both, that are manufactured or provided by Michigan businesses owned and operated by veterans, if they are competitively priced and of comparable quality. Executive retains current year language.
*Sec. 212. Retention of Reports –* RETAINED House Committee and Senate include current year language which requires departments to receive and retain copies of all reports funded from appropriations in the bill. Executive does not include the language.
*Sec. 215. Communications with Legislators –* RETAINED House Committee and Senate include current year language which prohibits departments from taking disciplinary action against employees for communicating with Legislators or their staff. Executive does not include the language.
*Sec. 217. General Fund Restrictions –* RETAINED House Committee and Senate include current year language which prohibits expenditure of general fund appropriations when federal funding is available. Executive does not include the language.
*Sec. 220. Contributions to Political Organizations –* DELETED Executive and House Committee delete language that prohibits funding from being used to establish, operate, or administer a payroll deduction plan that enables classified state employees to make contributions to either a political organization or committee. Senate includes current year language.
Sec. 218. Information Technology Appropriations as Work Projects – NOT INCLUDED House Committee and Senate do not include language that designates appropriations for information technology as work project accounts and authorizes available balances to be carried forward. Executive includes new language.
*Sec. 221. Reporting Requirement on Specific Policy Change –* NOT INCLUDED Executive and House Committee do not include new language requiring departments to report no later than April 1, 2008 on each specific policy change made to implement enacted legislation. Senate includes the language.
*Sec. 222. Budgetary Savings Appropriation Authorization –* NOT INCLUDED Executive and House Committee do not include new language that requires appropriation authorization adjustments due to negative appropriations for budgetary savings shall be made only after the approval of transfers by the legislature. Senate includes new language.
DEPARTMENT OF MANAGEMENT AND BUDGET *Sec. 701. Contingency Funding* – NEW Executive and House Committee include language which appropriates federal, state restricted, and local contingency funding that can be expended only upon legislative transfer to a specific line item. Senate does not include language.
*Sec. 710. Revisions to Computer Contracts* – RETAINED House Committee and Senate include current year language which requires DMB to report on any revisions that increase or decrease current computer contracts by more than $500,000 at least 14 days prior to finalization of revisions. Executive does not include the language.
*Sec. 715.(3) Motor Vehicle Fleet Assignment* – DELETED Executive and House Committee delete language that expresses legislative intent that DMB have the authority to determine appropriateness of vehicle assignment. Senate includes current year language.
*Sec. 715.(4) Motor Vehicle Fleet Plan* – RETAINED House Committee and Senate include current year language that requires DMB to maintain a plan regarding the state's motor vehicle fleet and lists specific information that is to be included in the plan. Executive does not include the language.
*Sec. 716. Purchasing From Michigan-Based Firms –* RETAINED House Committee and Senate include current year language that requires DMB to adopt policies and procedures necessary to provide a purchasing preference for products manufactured or services offered by Michigan-based firms. Executive does not include the language.
*Sec. 717. Purchasing Decisions –* RETAINED House Committee and Senate include current year language that establishes guidelines for DMB to follow when determining whether a purchase, contract, or provision of supplies, materials, services, insurance, utilities, third party financing, equipment, printing, and other items needed by state departments is in the best interests of the state. Executive does not include the language.
*Sec. 718. Vendor Disclosure Information to Collect –* RETAINED House Committee and Senate include language that lists information DMB is authorized to collect from vendors in an effort to ensure compliance with procurement of goods and services from Michigan-based providers. Executive does not include the language.
*Sec. 719. Vendor Disclosure Call Centers –* RETAINED House Committee and Senate include language that authorizes DMB to require any vendor or subcontractor, who provides call or contact center services to the state, to disclose the location from which the call or contact center services are being provided, to the inbound caller. Executive does not include current year language.
*Sec. 723. State Property* – RETAINED House Committee and Senate include current year language which requires DMB to make available to the public on the Internet a listing of all parcels of real estate that are available for purchase from the state. Executive does not include the language.
*Sec. 724.* Appropriations for Retirement System Changes – NEW Executive, House Committee and Senate include new language which authorizes appropriations for implementing changes made to the Public School Employees Retirement Act which allows a retiree to add a new spouse as their pension beneficiary when their previous spouse dies or if the retiree was not married at the time of retirement; designates the appropriations as work project appropriations.
*Sec. 724a. Existing* *2-1-1* *Capacities –* NOT INCLUDED Executive and House Committee do not include new language which requires DMB to assist DIT in determining how existing 2-1-1 capacities will be utilized by each department with community resource information and referral service. Senate includes new language.
*Sec. 724b. Restriction on Fund Use for Hiring (DMB) –* NOT INCLUDED Executive and House Committee do not include new language which restricts the use of funds to be used by a principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general. Senate includes new language.
*Sec. 724b. Appraisal and Market Analysis –* NEW House Committee includes new language which requires DMB conduct an independent appraisal and market analysis of the Calumet State Police Post for the purpose of potential acquisition of the property by the state. Executive and Senate do not include language.
*Sec. 729. Restriction on Fund Use for Hiring (SBA) –* NOT INCLUDED Executive and House Committee do not include new language which restricts the use of funds to be used by a principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general. Senate includes new language.
CIVIL SERVICE *Sec. 741. Contingency Funding* – NEW Executive and House Committee include language which appropriates federal, state restricted, local, and private contingency funding that can be expended only upon legislative transfer to a specific line item. Senate does not include the language.
*Sec. 505. Hiring of Individual to Provide Legal Services –* NOT INCLUDED Executive and House Committee do not include new language which prohibits the use of appropriated funds to be used by a principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general. Senate includes new language.

Major Boilerplate Changes From FY 2006-07

GENERAL SECTIONS OF BOILERPLATE

Sec. 205. Hiring Freeze – RETAINED

Executive and House Committee retain current year language by requiring the creation of a position or filling of any vacant position by any method necessary to provide for the basic daily living requirements of residents of the state institution or facility. Senate modifies current year language.

Sec. 209. Purchase of Foreign Goods – MODIFIED

House Committee and Senate modifies current year language by including that preference should be given to goods and services, or both, that are manufactured or provided by Michigan businesses owned and operated by veterans, if they are competitively priced and of comparable quality. Executive retains current year language.

Sec. 212. Retention of Reports – RETAINED

House Committee and Senate include current year language which requires departments to receive and retain copies of all reports funded from appropriations in the bill. Executive does not include the language.

Sec. 215. Communications with Legislators – RETAINED

House Committee and Senate include current year language which prohibits departments from taking disciplinary action against employees for communicating with Legislators or their staff. Executive does not include the language.

Sec. 217. General Fund Restrictions – RETAINED

House Committee and Senate include current year language which prohibits expenditure of general fund appropriations when federal funding is available. Executive does not include the language.

Sec. 220. Contributions to Political Organizations – DELETED

Executive and House Committee delete language that prohibits funding from being used to establish, operate, or administer a payroll deduction plan that enables classified state employees to make contributions to either a political organization or committee. Senate includes current year language.

Sec. 218. Information Technology Appropriations as Work Projects – NOT INCLUDED

House Committee and Senate do not include language that designates appropriations for information technology as work project accounts and authorizes available balances to be carried forward. Executive includes new language.

Sec. 221. Reporting Requirement on Specific Policy Change – NOT INCLUDED

Executive and House Committee do not include new language requiring departments to report no later than April 1, 2008 on each specific policy change made to implement enacted legislation. Senate includes the language.

Sec. 222. Budgetary Savings Appropriation Authorization – NOT INCLUDED

Executive and House Committee do not include new language that requires appropriation authorization adjustments due to negative appropriations for budgetary savings shall be made only after the approval of transfers by the legislature. Senate includes new language.

DEPARTMENT OF MANAGEMENT AND BUDGET

Sec. 701. Contingency Funding – NEW

Executive and House Committee include language which appropriates federal, state restricted, and local contingency funding that can be expended only upon legislative transfer to a specific line item. Senate does not include language.

Sec. 710. Revisions to Computer Contracts – RETAINED

House Committee and Senate include current year language which requires DMB to report on any revisions that increase or decrease current computer contracts by more than $500,000 at least 14 days prior to finalization of revisions. Executive does not include the language.

Sec. 715.(3) Motor Vehicle Fleet Assignment – DELETED

Executive and House Committee delete language that expresses legislative intent that DMB have the authority to determine appropriateness of vehicle assignment. Senate includes current year language.

Sec. 715.(4) Motor Vehicle Fleet Plan – RETAINED

House Committee and Senate include current year language that requires DMB to maintain a plan regarding the state's motor vehicle fleet and lists specific information that is to be included in the plan. Executive does not include the language.

Sec. 716. Purchasing From Michigan-Based Firms – RETAINED

House Committee and Senate include current year language that requires DMB to adopt policies and procedures necessary to provide a purchasing preference for products manufactured or services offered by Michigan-based firms. Executive does not include the language.

Sec. 717. Purchasing Decisions – RETAINED

House Committee and Senate include current year language that establishes guidelines for DMB to follow when determining whether a purchase, contract, or provision of supplies, materials, services, insurance, utilities, third party financing, equipment, printing, and other items needed by state departments is in the best interests of the state. Executive does not include the language.

Sec. 718. Vendor Disclosure Information to Collect – RETAINED

House Committee and Senate include language that lists information DMB is authorized to collect from vendors in an effort to ensure compliance with procurement of goods and services from Michigan-based providers. Executive does not include the language.

Sec. 719. Vendor Disclosure Call Centers – RETAINED

House Committee and Senate include language that authorizes DMB to require any vendor or subcontractor, who provides call or contact center services to the state, to disclose the location from which the call or contact center services are being provided, to the inbound caller. Executive does not include current year language.

Sec. 723. State Property – RETAINED

House Committee and Senate include current year language which requires DMB to make available to the public on the Internet a listing of all parcels of real estate that are available for purchase from the state. Executive does not include the language.

Sec. 724. Appropriations for Retirement System Changes – NEW

Executive, House Committee and Senate include new language which authorizes appropriations for implementing changes made to the Public School Employees Retirement Act which allows a retiree to add a new spouse as their pension beneficiary when their previous spouse dies or if the retiree was not married at the time of retirement; designates the appropriations as work project appropriations.

Sec. 724a. Existing 2-1-1 Capacities – NOT INCLUDED

Executive and House Committee do not include new language which requires DMB to assist DIT in determining how existing 2-1-1 capacities will be utilized by each department with community resource information and referral service. Senate includes new language.

Sec. 724b. Restriction on Fund Use for Hiring (DMB) – NOT INCLUDED

Executive and House Committee do not include new language which restricts the use of funds to be used by a principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general. Senate includes new language.

Sec. 724b. Appraisal and Market Analysis – NEW

House Committee includes new language which requires DMB conduct an independent appraisal and market analysis of the Calumet State Police Post for the purpose of potential acquisition of the property by the state. Executive and Senate do not include language.

Sec. 729. Restriction on Fund Use for Hiring (SBA) – NOT INCLUDED

CIVIL SERVICE

Sec. 741. Contingency Funding – NEW

Sec. 505. Hiring of Individual to Provide Legal Services – NOT INCLUDED

Executive and House Committee do not include new language which prohibits the use of appropriated funds to be used by a principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general. Senate includes new language.

STATE

Summary: SB 229 H-1

FY 2007-08

Analyst: Mark Wolf

	FY 2006-07	FY 2007-08	FY 2007-08	FY 2007-08	*Difference:* *House from FY 2006-07 Enacted*
	Enacted	Executive	Senate	House	*Amount*	%
Gross	$204,793,500	$208,221,200	$204,529,300	$208,221,200	$3,427,700	1.7
IDG/IDT	20,000,000	20,000,000	20,000,000	20,000,000	0	0.0
Federal	3,052,100	1,991,200	1,561,200	1,911,200	(1,140,900)	(37.4)
Local	0	0	0	0	0	0.0
Private	100	100	100	100	0	0.0
Restricted	162,608,600	156,972,900	156,972,900	156,972,900	(5,635,700)	(3.5)
GF/GP	$19,132,700	$29,337,000	$25,995,100	$29,337,000	$10,204,300	53.3

FTEs	1,859.8	1,859.8	1,859.8	1,859.8	0.0	0.0

Overview

The Department of State administers programs in eight areas: Driver Licensing and Vehicle Registration, which includes titling and registering vehicles; Elections and Campaign Finance Administration, which includes training local election officials and monitoring campaign finance; Regulatory and Consumer Protection, which includes inspecting and licensing automotive repair facilities; Traffic Safety which includes driver testing; Office of the Great Seal; Assigned Claims Facility; Uniform Commercial Code; and Executive Direction and Central Support.

Major Budget Changes From FY 2006-07 Enacted Appropriations	Executive Change	Senate Change	House Change
*1. Transportation Administration Collection Fund* Reduces state restricted funding authorized in the TACF and includes additional GF/GP to cover the anticipated shortfall in collection of TACF revenue.	Gross Restricted GF/GP	$0 (6,000,000) $6,000,000	$0 (6,000,000) $6,000,000	$0 (6,000,000) $6,000,000
*2. Branch Operations* In addition to the baseline funding adjustments, the House reorganizes the branch operations line into its own appropriation unit with separate lines for branch office services administration ($9.4 million); the mobile branch office ($9,100); branch office renovations ($271,200); and listing all 153 branches currently open ($62,893,500).	Gross Restricted GF/GP	$0 0 $0	$0 0 $0	$0 0 $0
*3. Increased Funding for Fees to Local Units* Includes additional funding to reimburse counties for their costs associated with training deputy registrars and processing voter registration applications.	Gross GF/GP	$40,000 $40,000	$40,000 $40,000	$40,000 $40,000
*4. Fund Source Adjustments* Adjusts the following state restricted fund sources in order to more accurately reflect the amount of revenues actually collected: Auto Repair Facilities Fees, Vehicle Theft Prevention Fees, Parking Ticket Court Fines, Mobile Home Commission Fees, and Child Support Clearance Fees.	Gross Restricted GF/GP	($950,000) (950,000) $0	($950,000) (950,000) $0	($950,000) (950,000) $0
*5. Administrative Reductions* Reduces amount of funding available for administrative expenses by $2.6 million. Savings are anticipated to be generated through administrative efficiencies.	Gross Federal Restricted GF/GP	($2,583,000) (1,489,600) (134,500) ($958,900)	($2,583,000) (1,489,600) (134,500) ($958,900)	($2,583,000) (1,489,600) (134,500) ($958,900)
*6. GF/GP Reductions* The Senate provides for further GF/GP reductions for Executive Direction Operations ($15,800); Department Services Operations ($93,600); Regulatory Services Operations ($74,100); Branch Operations ($385,600); Central Operations ($183,200); and Worker’s Compensation ($5,600)	Gross GF/GP	$0 $0	($757,900) ($757,900)	$0 $0
*7. Budgetary Savings* The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department.	Gross GF/GP	$0 $0	($2,584,000) ($2,584,000)	$0 $0
*8. Help* *America* *Vote Act* The Executive (revised August 16, 2007) and the House Committee include $350,000 in federal funds to implement the federal Help America Vote Act.	Gross Federal	$350,000 350,000	$0 $0	$350,000 350,000
*9. Economic Adjustments* Includes additional funding for salaries and wages, insurances, retirement, and building occupancy charges; reduces funding for worker's compensation.	Gross Federal Restricted GF/GP	$6,615,400 101,200 1,346,300 $5,167,900	$6,615,400 101,200 1,346,300 $5,167,900	$6,615,400 101,200 1,346,300 $5,167,900

Major Budget Changes From FY 2006-07 Enacted Appropriations

Executive Change

Senate

Change

House

Change

1. Transportation Administration Collection Fund

Reduces state restricted funding authorized in the TACF and includes additional GF/GP to cover the anticipated shortfall in collection of TACF revenue.

Gross

Restricted

GF/GP

(6,000,000)

$6,000,000

(6,000,000)

$6,000,000

(6,000,000)

$6,000,000

2. Branch Operations

In addition to the baseline funding adjustments, the House reorganizes the branch operations line into its own appropriation unit with separate lines for branch office services administration ($9.4 million); the mobile branch office ($9,100); branch office renovations ($271,200); and listing all 153 branches currently open ($62,893,500).

Gross

Restricted

GF/GP

3. Increased Funding for Fees to Local Units

Includes additional funding to reimburse counties for their costs associated with training deputy registrars and processing voter registration applications.

Gross

GF/GP

$40,000

$40,000

$40,000

$40,000

$40,000

$40,000

4. Fund Source Adjustments

Adjusts the following state restricted fund sources in order to more accurately reflect the amount of revenues actually collected: Auto Repair Facilities Fees, Vehicle Theft Prevention Fees, Parking Ticket Court Fines, Mobile Home Commission Fees, and Child Support Clearance Fees.

Gross

Restricted

GF/GP

($950,000)

(950,000)

($950,000)

(950,000)

($950,000)

(950,000)

5. Administrative Reductions

Reduces amount of funding available for administrative expenses by $2.6 million. Savings are anticipated to be generated through administrative efficiencies.

Gross

Federal

Restricted

GF/GP

($2,583,000)

(1,489,600)

(134,500)

($958,900)

($2,583,000)

(1,489,600)

(134,500)

($958,900)

($2,583,000)

(1,489,600)

(134,500)

($958,900)

6. GF/GP Reductions

The Senate provides for further GF/GP reductions for Executive Direction Operations ($15,800); Department Services Operations ($93,600); Regulatory Services Operations ($74,100); Branch Operations ($385,600); Central Operations ($183,200); and Worker’s Compensation ($5,600)

Gross

GF/GP

($757,900)

($757,900)

7. Budgetary Savings

The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department.

Gross

GF/GP

($2,584,000)

($2,584,000)

8. Help America Vote Act

The Executive (revised August 16, 2007) and the House Committee include $350,000 in federal funds to implement the federal Help America Vote Act.

Gross

Federal

$350,000

350,000

$350,000

350,000

9. Economic Adjustments

Includes additional funding for salaries and wages, insurances, retirement, and building occupancy charges; reduces funding for worker's compensation.

Gross

Federal

Restricted

GF/GP

$6,615,400

101,200

1,346,300

$5,167,900

$6,615,400

101,200

1,346,300

$5,167,900

$6,615,400

101,200

1,346,300

$5,167,900

Major Boilerplate Changes From FY 2006-07
*Sec. 801. Contingency Funding* – NEW The Executive and House Committee include language which appropriates federal, state restricted, local, and private contingency funding that can be expended only upon legislative transfer to a specific line item. The Senate does not include this section.
*Sec. 815. Branch Office Closings or Consolidations* – RETAINED The House Committee and Senate include language which requires a 60 day notice of branch office closings, consolidations, or relocations to be given to the appropriations committees and to legislators who represent the affected areas. Executive does not include language.
*Sec. 815a. Report on Branch Office Transactions* – RETAINED The House Committee and Senate include language which requires the Department to report on the number of branch office transactions completed online. Executive deletes this section.
*Sec. 818.* *Motorcycle Safety Education Program* – RETAINED The House Committee and Senate include language which requires funds appropriated for Motorcycle Safety Education Grants and Administration to be used for program operation; requires funding to be derived from license endorsements and registration and testing fees; authorizes funds for grants to help subsidize safety training courses for individuals interested in operating motorcycles; and authorizes funds to be used for administrative costs. The Executive deletes this section.
*Sec. 819. Business Application Modernization Project* – RETAINED The House Committee and Senate includes language which requires funds appropriated for the Business Application Modernization project to be used for development, implementation, and maintenance of the business application modernization project; designates unexpended funds as a work project account and authorizes unexpended funding to be carried forward. The Executive deletes this section.
*Sec. 820.* *Restriction on Fund Use for Hiring –* NOT INCLUDED Senate includes new language which restricts the use of funds to be used by a principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general. Executive andHouse Committee do not include language.
*Sec. 821. Keweenaw* *County* *Branch* *Office –* DELETED The Executive, Senate, and House Committee do not include language which requires the Department to complete cost/benefit analysis on feasibility of locating Keweenaw County Secretary of State branch office with Keweenaw County Department of Human Services office and specifies information that is to be provided.
*Sec. 821.* Branch Office Staffing Levels – NEW The House Committee adds a section that provides that the 933.9 FTE positions authorized for branch office services administration may be allocated at the discretion of the Secretary of State among the department’s statewide branch offices and the central office of the Bureau of Branch Office Services based on staffing requirements. The Executive and Senate do not include this language.
*Sec. 824.* *Buena Vista* *Township* *Branch Office –* NEW The House Committee and Senate add a section that requires the department to maintain a full service branch office in the Buena Vista Township. The Executive does not include this section.
*Sec. 825.* *Milan* *Branch Office –* NEW The House Committee and Senate add a section that requires the department to maintain a full service branch office in the City of Milan. The Executive does not include this section.
*Sec. 826. Branch Office Locations –* NEW The House Committee adds a section that requires the department to the same number of branch offices in each municipality that existed on August 1, 2007. The Senate includes similar language requiring a branch office for each location that existed on August 1, 2007. The Executive does not include any language.
*Sec. 827. Branch Office Lapses –* NEW The House Committee adds a section that provides that the unexpended and unencumbered balance for each individual branch office appropriation shall lapse at the close of the year shall lapse to the fund from which it was appropriated. The Executive and Senate do not include this section.
*Sec. 828. Branch Office Locations in Urban Areas –* NEW The House Committee adds a section that provides guidelines to the department in locating branch offices, encouraging offices to be located in downtown areas, town centers, central business districts, and brownfield sites rather than greenfields and open space sites. The Executive and Senate do not include this section.

Major Boilerplate Changes From FY 2006-07

Sec. 801. Contingency Funding – NEW

The Executive and House Committee include language which appropriates federal, state restricted, local, and private contingency funding that can be expended only upon legislative transfer to a specific line item. The Senate does not include this section.

Sec. 815. Branch Office Closings or Consolidations – RETAINED

The House Committee and Senate include language which requires a 60 day notice of branch office closings, consolidations, or relocations to be given to the appropriations committees and to legislators who represent the affected areas. Executive does not include language.

Sec. 815a. Report on Branch Office Transactions – RETAINED

The House Committee and Senate include language which requires the Department to report on the number of branch office transactions completed online. Executive deletes this section.

Sec. 818. Motorcycle Safety Education Program – RETAINED

The House Committee and Senate include language which requires funds appropriated for Motorcycle Safety Education Grants and Administration to be used for program operation; requires funding to be derived from license endorsements and registration and testing fees; authorizes funds for grants to help subsidize safety training courses for individuals interested in operating motorcycles; and authorizes funds to be used for administrative costs. The Executive deletes this section.

Sec. 819. Business Application Modernization Project – RETAINED

The House Committee and Senate includes language which requires funds appropriated for the Business Application Modernization project to be used for development, implementation, and maintenance of the business application modernization project; designates unexpended funds as a work project account and authorizes unexpended funding to be carried forward. The Executive deletes this section.

Sec. 820. Restriction on Fund Use for Hiring – NOT INCLUDED

Senate includes new language which restricts the use of funds to be used by a principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general. Executive andHouse Committee do not include language.

Sec. 821. Keweenaw County Branch Office – DELETED

The Executive, Senate, and House Committee do not include language which requires the Department to complete cost/benefit analysis on feasibility of locating Keweenaw County Secretary of State branch office with Keweenaw County Department of Human Services office and specifies information that is to be provided.

Sec. 821. Branch Office Staffing Levels – NEW

The House Committee adds a section that provides that the 933.9 FTE positions authorized for branch office services administration may be allocated at the discretion of the Secretary of State among the department’s statewide branch offices and the central office of the Bureau of Branch Office Services based on staffing requirements. The Executive and Senate do not include this language.

Sec. 824. Buena Vista Township Branch Office – NEW

The House Committee and Senate add a section that requires the department to maintain a full service branch office in the Buena Vista Township. The Executive does not include this section.

Sec. 825. Milan Branch Office – NEW

The House Committee and Senate add a section that requires the department to maintain a full service branch office in the City of Milan. The Executive does not include this section.

Sec. 826. Branch Office Locations – NEW

The House Committee adds a section that requires the department to the same number of branch offices in each municipality that existed on August 1, 2007. The Senate includes similar language requiring a branch office for each location that existed on August 1, 2007. The Executive does not include any language.

Sec. 827. Branch Office Lapses – NEW

The House Committee adds a section that provides that the unexpended and unencumbered balance for each individual branch office appropriation shall lapse at the close of the year shall lapse to the fund from which it was appropriated. The Executive and Senate do not include this section.

Sec. 828. Branch Office Locations in Urban Areas – NEW

The House Committee adds a section that provides guidelines to the department in locating branch offices, encouraging offices to be located in downtown areas, town centers, central business districts, and brownfield sites rather than greenfields and open space sites. The Executive and Senate do not include this section.

TREASURY

Summary: SB 229 H-1

FY 2007-08

Analyst: Mark Wolf

	FY 2006-07	FY 2007-08	FY 2007-08	FY 2007-08	FY 2007-08	*Difference: House* *From FY 2006-07 Enacted*
	Enacted	Executive	Senate	House	Enacted	*Amount*	%
IDG/IDT	$13,826,800	$11,631,400	$11,631,400	$11,632,400		($2,194,400)	(15.9)
Federal	83,593,300	91,836,400	91,836,400	91,837,800		8,244,500	9.9
Local	1,066,200	1,100,700	1,100,700	1,100,700		34,500	3.2
Private	700,000	712,800	712,800	712,800		12,800	1.8
Restricted	1,411,912,800	1,510,740,100	1,439,250,100	1,508,758,200		96,845,400	6.9
GF/GP	165,867,000	198,120,600	176,538,800	200,480,500		34,613,500	20.9
Gross	$1,676,966,100	$1,814,142,000	$1,721,070,200	$1,814,522,400		$137,556,300	*8.2*
FTEs	1,858.5	1,858.5	1,858.5	1863.5		5.0	0.3

Note: FY 2006-07 figures include the results of supplementals and Executive Order (EO) actions through January 31, 2007, and also include the Michigan Strategic Fund, which was a separate article in the FY 2007 appropriations act (2006 PA 345, Article 13). The Senate places the MSF into its own separate bill (SB 239), although the Senate figures above include both Treasury and the MSF.

Overview

The Department of Treasury is the chief fiscal agency of the state and the primary source of advice to the Governor on tax and fiscal policy issues. The Department’s mission is to collect state taxes, to invest, control, and disburse state monies, and to protect the state’s credit rating and that of its cities. The Department manages one of the nation’s largest pension funds, administers revenue sharing, and administers the student financial aid programs. It also investigates fraudulent financial activity, provides assistance on all property tax-related issues, advises issuers of municipal obligations. The Bureau of State Lottery and the Michigan Gaming Control Board are autonomous agencies housed within the Department of Treasury. The Michigan Strategic Fund is an autonomous agency transferred from the Department of Labor and Economic Growth with the enactment of 2005 PA 225. The fund and programs of the MSF are administered by the Michigan Economic Development Corporation (MEDC). The MEDC also administers the 21^st Century Jobs Fund, which is intended to diversify Michigan's economy in four competitive edge technologies: alternative energy, life sciences, advanced manufacturing, and homeland security.

Major Budget Changes From FY 2006-07 YTD Appropriations	Executive Change	Senate Change	House Change
TREASURY OPERATIONS 1. Treasury Operations TheHouse Committee recommendation for Department of Treasury operations (excluding revenue sharing, debt service, and the MSF) is $353.9.0 million Gross: $11.6 million – IDG/IDT; $36.4 million – Federal; $1.1 million – Local; $241.5 million – Restricted; and $55.8 million GF/GP.	FTEs Gross IDG Federal Local Restricted GF/GP	0.0 $12,853,400 (2,196,800) 499,400 34,500 16,725,100 ($2,208,800)	0.0 ($38,759,500) (2,196,800) 499,400 34,500 (32,570,400) ($4,491,700)	5.0 ($34,876,800) (2.195.800) 500,800 34,500 ($32,474,900) (741,400)
*2. Administrative Reductions* The Executive recommended a number of administrative reductions totaling $1.6 million Gross for the revenue enhancement program ($1.2 million, $500,000 of which is consistent with the program's 3-year funding plan); mail operations ($100,000); collections ($100,000); merit award administration ($100,000); lottery information technology ($37,000); casino gaming information technology ($2,300); and Treasury information technology ($40,200). The Senate concurs with this change. The House Committee does not include these reductions.	FTEs Gross IDG Federal Restricted GF/GP	0.0 ($1,579,500) (1,000) (1,400) (166,300) (1,410,800)	0.0 ($1,579,500) (1,000) (1,400) (166,300) (1,410,800)	0.0 $0 0 0 0 0 $0
*3. Local Gov’t Programs GF/GP Reduction* In addition to other baseline adjustments, the Senate reduces funding for supervision of property tax ($314,000) and local finance ($63,800). The Executive and House Committee do not include these reductions.	FTEs Gross GF/GP	0.0 $0 $0	0.0 ($377,800) ($377,800)	0.0 $0 $0
*4. Tax and Economic Policy GF/GP Reduction* In addition to other baseline adjustments, the Senate reduces funding for the tax and economic policy line by $66,900). The Executive and House Committee do not include these reductions.	FTEs Gross GF/GP	0.0 $0 $0	0.0 ($66,900) ($66,900)	0.0 $0 $0
*5. Banking and Management GF/GP Reduction* In addition to other baseline adjustments, the Senate reduces funding for program management ($26,200), HR and purchasing ($118,000), and receipts processing ($23,800). The Executive and House Committee do not include these reductions.	FTEs Gross GF/GP	0.0 $0 $0	0.0 ($168,000) ($168,000)	0.0 $0 $0
*6. Financial Programs GF/GP Reduction* In addition to other baseline adjustments, the Senate reduces funding for common cash and debt management ($13,800) and student financial assistance programs ($73,500). The Executive and House Committee do not include these reductions.	FTEs Gross GF/GP	0.0 $0 $0	0.0 ($87,300) ($87,300)	0.0 $0 $0
*7. Information Technology GF/GP Reduction* In addition to other baseline adjustments, the Senate reduces funding for information technology by $212,000. The Executive and House Committee do not include these reductions.	FTEs Gross GF/GP	0.0 $0 $0	0.0 ($212,000) ($212,000)	0.0 $0 $0
*8. Senior Citizen Co-op Housing Tax Exemption* The Senate reduces funding for the senior citizen cooperative housing tax exemption payments to local units by $877,100 GF/GP. The Executive and House maintain FY 2007 enacted funding levels. The Executive and House Committee do not include these reductions.	Gross GF/GP	$0 $0	($877,100) ($877,100)	$0 $0
*9. Convention Facility Development Fund* The Senate and House Committee reduce funding by $35.0 million to reflect the FY 2007 budget balancing agreement to use $35 million in convention facility funds collected in FY 2007 that would otherwise be distributed to counties in FY 2008.	Gross Restricted	$0 0	($35,000,000) (35,000,000)	($35,000,000) (35,000,000)
*10.* *Tuscola* *County* *– Convention Facility Reimbursement* The House Committee adds $56,600 for a grant to Tuscola County equal to one-half the amount it would have received in FY 2008 in convention facility funds were it not for the FY 2007 budget balancing agreement. The Senate does not provide a line item, but provides a boilerplate appropriation for the full amount.	Gross GF/GP	$0 $0	$0 $0	$56,600 $56,600
*11. Local Public Safety Grants* The Executive creates a new grant program for local law enforcement and fire protection services using increased liquor license fees. The Senate does not include this program. The House Committee includes a $100 placeholder.	Gross Restricted	$14,381,000 14,381,000	$0 0	$100 100
*12. Qualified Agricultural Loan Payments* The House Committee adds a $100 (GF/GP) placeholder for the qualified agricultural loan program whereby the department subsidies zero-interest loans to farmers suffering significant crop damage. Current loans are to be repaid by October 1, 2007. The Executive and Senate do not include this section.	Gross GF/GP	$0 $0	$0 $0	$100 $100
*12. Economic Adjustments* Funds 4.0% contractual pay increases, 7.2% increase in employee benefits, and increases in retirement and self-insured worker's compensation, and reflects decrease in rent and building occupancy costs.	Gross IDG Federal Local Restricted GF/GP	$7,116,300 380,200 500,800 34,500 5,245,100 $955,700	$7,116,300 380,200 500,800 34,500 5,245,100 $955,700	$7,116,300 380,200 500,800 34,500 5,245,100 $955,700
*13. Budgetary Savings* The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department.	Gross GF/GP	$0 $0	($477,900) ($477,900)	$0 $0
REVENUE SHARING *14. Constitutional Revenue Sharing* The Executive and Senate increase constitutional revenue sharing by $19.5 million over actual FY 2007 payments. (From the enacted appropriation of $698.9 million, this is a reduction of $13.5 million.) The amount is derived from projections of FY 2007 payments and FY 2008 revenue from the January 2007 Revenue Estimating Conference.	Gross Restricted	$19,490,237 19,490,237	$19,490,237 19,490,237	$0 0
*15. Statutory Revenue Sharing* The Executive and Senate decrease statutory revenue sharing by $4.0 million from actual FY 2007 payments. (From the enacted appropriation of $407.5 million, this is a reduction of $6.6 million.) The amount is derived from projection of FY 2007 payments and FY 2008 revenue from the January 2007 Revenue Estimating Conference.	Gross Restricted	($4,030,578) (4,030,578)	($4,030,578) (4,030,578)	$0 0
*16. Revenue Sharing* The House Committee combines constitutional and statutory revenue sharing into one line item. The appropriation is an increase of $35.5 million over actual FY 2007 payments, but is even with the FY 2007 enacted appropriation.	Gross Restricted	$0 0	$0 0	$35,517,659 35,517,659
*16. Special Census Revenue Sharing* The Executive and Senate eliminate funding for special census revenue sharing payments. (This funding was eliminated in FY 2007 by EO 2007-3). The House retains this funding.	Gross GF/GP	($892,400) ($892,400)	($892,400) ($892,400)	$0 $0
*17. Local Government Collaborative Efforts* The Executive provide grants to cities, villages, and townships that share services, merge, or consolidate activities with other governmental entities. The House Committee doubles the amount recommended by the Executive. The Senate does not include this funding.	Gross Restricted	$27,160,000 27,160,000	$0 0	$54,320,000 54,320,000
*18.* *County* *Revenue Sharing* *Payments* The Executive, Senate, and House Committee provide revenue sharing funding to Tuscola County, the first county to exhaust its Revenue Sharing Reserve Fund.	Gross GF/GP	$113,600 $113,600	$113,600 $113,600	$113,600 $113,600
DEBT SERVICE *19. Debt Service* The Executive, Senate, and House Committee add $13.1 million for Clean Michigan Initiative debt service; add $1.6 million for Quality of Life bonds debt service; add $5.2 million for Great Lakes Water Quality bond debt service; and reduce Water Pollution Control bond debt service by $71,800.	Gross Restricted GF/GP	$19,828,200 0 $19,828,200	$19,828,200 0 $19,828,200	$19,828,200 0 $19,828,200
Michigan Strategic Fund (MSF) *20.* *Michigan* *Strategic Fund* The House Committee recommendation for the MSF $178.7 million – Gross; $80,000 – IDG; $55.4 million – Federal; $712,800 – Private; $75.0 million – Restricted; and $47.4 million – GF/GP.	FTEs Gross IDG Federal Private Restricted GF/GP	0.0 $98,171,100 1,400 7,743,700 12,800 75,000,200 $15,413,000	0.0 $83,872,200 1,400 7,743,700 12,800 80,000,200 ($3,885,900)	0.0 $98,171,300 1,400 7,743,700 12,800 75,000,200 $15,413,100
*21. 21^st Century Jobs Fund* Uses $75.0 million in remaining tobacco settlement revenue to continue 21^st Century Jobs Fund programs to diversify Michigan's economy.	Gross Restricted	$75,000,000 75,000,000	$75,000,000 75,000,000	$75,000,000 75,000,000
*20.* *Michigan* *Promotion Program* The Executive and House Committee add $10.0 million to expand advertising of Michigan as a tourist destination, and promote Michigan as a business location. The Senate adds $1 million and alters funding sources.	Gross Restricted GF/GP	$10,000,000 0 $10,000,000	$1,000,000 3,621,500 ($2,621,500)	$10,000,000 0 $10,000,000
*21. Community Development Block Grants* Recognizes $8.0 million in additional federal funds.	Gross Federal	$8,000,000 8,000,000	$8,000,000 8,000,000	$8,000,000 8,000,000
*22. Alternative Energy Initiative* Creates competitive grant program for gas stations adding ethanol pumps. The Senate leaves a $100 placeholder.	Gross GF/GP	$7,000,000 $7,000,000	$100 $100	$7,000,000 $7,000,000
*23. Economic Development Job Training Grants* Reduces funding for economic development job training grants.	Gross GF/GP	($1,600,500) ($1,600,500)	($1,600,500) ($1,600,500)	($1,600,500) ($1,600,500)
*24. Small Business Innovation Research (SBIR) and Small Business Technical Transfer (STTR)* The Senate adds a new line item for the SBIR/STTR matching grant program to spur R&D among small businesses.	Gross Restricted	$0 0	$1,378,500 1,378,500	$0 0
*25. Tool and Die Aeronautics Certification Grants* The Senate adds a new line item for tool and die aeronautics certification grants to reimburse companies for eligible costs incurred in achieving aeronautics manufacturing certification.	Gross GF/GP	$0 0	$500,000 $500,000	$0 0
*26. Entrepreneurial Training and Mentoring* The Senate adds a $100 place holder for the entrepreneurial training and mentoring program between the MSF, Michigan Works!, and the Department of Labor and Economic growth for students in secondary and post-secondary education. The House Committee concurs with this change.	Gross GF/GP	$0 0	$100 $100	$100 100
*27. Business Incubator Program* The House Committee adds a $100 placeholder to fund a business incubator program to provide grants and loans to competitive edge technology businesses located in economically depressed areas.	Gross Restricted	$0 0	$0 0	$100 100
*28. Budgetary Savings* The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department.	Gross GF/GP	$0 0	($177,500) ($177,500)	$0 0
*29. MSF Economics* Funds 4.0% contractual pay increases, 7.2% increase in employee benefits, and decreases in retirement and self-insured worker's compensation.	Gross IDG Federal Private Restricted GF/GP	$413,000 1,400 43,700 12,800 200 $354,900	$413,000 1,400 43,700 12,800 200 $354,900	$413,000 1,400 43,700 12,800 200 $354,900

Major Budget Changes From FY 2006-07 YTD Appropriations

Executive Change

Senate

Change

House

Change

TREASURY OPERATIONS

1. Treasury Operations

TheHouse Committee recommendation for Department of Treasury operations (excluding revenue sharing, debt service, and the MSF) is $353.9.0 million Gross: $11.6 million – IDG/IDT; $36.4 million – Federal; $1.1 million – Local; $241.5 million – Restricted; and $55.8 million GF/GP.

FTEs

Gross

IDG

Federal

Local

Restricted

GF/GP

0.0

$12,853,400

(2,196,800)

499,400

34,500

16,725,100

($2,208,800)

0.0

($38,759,500)

(2,196,800)

499,400

34,500

(32,570,400)

($4,491,700)

5.0

($34,876,800)

(2.195.800)

500,800

34,500

($32,474,900)

(741,400)

2. Administrative Reductions

The Executive recommended a number of administrative reductions totaling $1.6 million Gross for the revenue enhancement program ($1.2 million, $500,000 of which is consistent with the program's 3-year funding plan); mail operations ($100,000); collections ($100,000); merit award administration ($100,000); lottery information technology ($37,000); casino gaming information technology ($2,300); and Treasury information technology ($40,200). The Senate concurs with this change. The House Committee does not include these reductions.

FTEs

Gross

IDG

Federal

Restricted

GF/GP

0.0

($1,579,500)

(1,000)

(1,400)

(166,300)

(1,410,800)

0.0

($1,579,500)

(1,000)

(1,400)

(166,300)

(1,410,800)

0.0

3. Local Gov’t Programs GF/GP Reduction

In addition to other baseline adjustments, the Senate reduces funding for supervision of property tax ($314,000) and local finance ($63,800). The Executive and House Committee do not include these reductions.

FTEs

Gross

GF/GP

0.0

($377,800)

($377,800)

0.0

4. Tax and Economic Policy GF/GP Reduction

In addition to other baseline adjustments, the Senate reduces funding for the tax and economic policy line by $66,900). The Executive and House Committee do not include these reductions.

FTEs

Gross

GF/GP

0.0

($66,900)

($66,900)

0.0

5. Banking and Management GF/GP Reduction

In addition to other baseline adjustments, the Senate reduces funding for program management ($26,200), HR and purchasing ($118,000), and receipts processing ($23,800). The Executive and House Committee do not include these reductions.

FTEs

Gross

GF/GP

0.0

($168,000)

($168,000)

0.0

6. Financial Programs GF/GP Reduction

In addition to other baseline adjustments, the Senate reduces funding for common cash and debt management ($13,800) and student financial assistance programs ($73,500). The Executive and House Committee do not include these reductions.

FTEs

Gross

GF/GP

0.0

($87,300)

($87,300)

0.0

7. Information Technology GF/GP Reduction

In addition to other baseline adjustments, the Senate reduces funding for information technology by $212,000. The Executive and House Committee do not include these reductions.

FTEs

Gross

GF/GP

0.0

($212,000)

($212,000)

0.0

8. Senior Citizen Co-op Housing Tax Exemption

The Senate reduces funding for the senior citizen cooperative housing tax exemption payments to local units by $877,100 GF/GP. The Executive and House maintain FY 2007 enacted funding levels. The Executive and House Committee do not include these reductions.

Gross

GF/GP

($877,100)

($877,100)

9. Convention Facility Development Fund

The Senate and House Committee reduce funding by $35.0 million to reflect the FY 2007 budget balancing agreement to use $35 million in convention facility funds collected in FY 2007 that would otherwise be distributed to counties in FY 2008.

Gross

Restricted

($35,000,000)

(35,000,000)

($35,000,000)

(35,000,000)

10. Tuscola County – Convention Facility Reimbursement

The House Committee adds $56,600 for a grant to Tuscola County equal to one-half the amount it would have received in FY 2008 in convention facility funds were it not for the FY 2007 budget balancing agreement. The Senate does not provide a line item, but provides a boilerplate appropriation for the full amount.

Gross

GF/GP

$56,600

$56,600

11. Local Public Safety Grants

The Executive creates a new grant program for local law enforcement and fire protection services using increased liquor license fees. The Senate does not include this program. The House Committee includes a $100 placeholder.

Gross

Restricted

$14,381,000

14,381,000

$100

100

12. Qualified Agricultural Loan Payments

The House Committee adds a $100 (GF/GP) placeholder for the qualified agricultural loan program whereby the department subsidies zero-interest loans to farmers suffering significant crop damage. Current loans are to be repaid by October 1, 2007. The Executive and Senate do not include this section.

Gross

GF/GP

$100

$100

12. Economic Adjustments

Funds 4.0% contractual pay increases, 7.2% increase in employee benefits, and increases in retirement and self-insured worker's compensation, and reflects decrease in rent and building occupancy costs.

Gross

IDG

Federal

Local

Restricted

GF/GP

$7,116,300

380,200

500,800

34,500

5,245,100

$955,700

$7,116,300

380,200

500,800

34,500

5,245,100

$955,700

$7,116,300

380,200

500,800

34,500

5,245,100

$955,700

13. Budgetary Savings

The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department.

Gross

GF/GP

($477,900)

($477,900)

REVENUE SHARING

14. Constitutional Revenue Sharing

The Executive and Senate increase constitutional revenue sharing by $19.5 million over actual FY 2007 payments. (From the enacted appropriation of $698.9 million, this is a reduction of $13.5 million.) The amount is derived from projections of FY 2007 payments and FY 2008 revenue from the January 2007 Revenue Estimating Conference.

Gross

Restricted

$19,490,237

19,490,237

$19,490,237

19,490,237

15. Statutory Revenue Sharing

The Executive and Senate decrease statutory revenue sharing by $4.0 million from actual FY 2007 payments. (From the enacted appropriation of $407.5 million, this is a reduction of $6.6 million.) The amount is derived from projection of FY 2007 payments and FY 2008 revenue from the January 2007 Revenue Estimating Conference.

Gross

Restricted

($4,030,578)

(4,030,578)

($4,030,578)

(4,030,578)

16. Revenue Sharing

The House Committee combines constitutional and statutory revenue sharing into one line item. The appropriation is an increase of $35.5 million over actual FY 2007 payments, but is even with the FY 2007 enacted appropriation.

Gross

Restricted

$35,517,659

35,517,659

16. Special Census Revenue Sharing

The Executive and Senate eliminate funding for special census revenue sharing payments. (This funding was eliminated in FY 2007 by EO 2007-3). The House retains this funding.

Gross

GF/GP

($892,400)

($892,400)

($892,400)

($892,400)

17. Local Government Collaborative Efforts

The Executive provide grants to cities, villages, and townships that share services, merge, or consolidate activities with other governmental entities. The House Committee doubles the amount recommended by the Executive. The Senate does not include this funding.

Gross

Restricted

$27,160,000

27,160,000

$54,320,000

54,320,000

18. County Revenue Sharing Payments

The Executive, Senate, and House Committee provide revenue sharing funding to Tuscola County, the first county to exhaust its Revenue Sharing Reserve Fund.

Gross

GF/GP

$113,600

$113,600

$113,600

$113,600

$113,600

$113,600

DEBT SERVICE

19. Debt Service

The Executive, Senate, and House Committee add $13.1 million for Clean Michigan Initiative debt service; add $1.6 million for Quality of Life bonds debt service; add $5.2 million for Great Lakes Water Quality bond debt service; and reduce Water Pollution Control bond debt service by $71,800.

Gross

Restricted

GF/GP

$19,828,200

$19,828,200

$19,828,200

$19,828,200

$19,828,200

$19,828,200

Michigan Strategic Fund (MSF)

20. Michigan Strategic Fund

The House Committee recommendation for the MSF $178.7 million – Gross; $80,000 – IDG; $55.4 million – Federal; $712,800 – Private; $75.0 million – Restricted; and $47.4 million – GF/GP.

FTEs

Gross

IDG

Federal

Private

Restricted

GF/GP

0.0

$98,171,100

1,400

7,743,700

12,800

75,000,200

$15,413,000

0.0

$83,872,200

1,400

7,743,700

12,800

80,000,200

($3,885,900)

0.0

$98,171,300

1,400

7,743,700

12,800

75,000,200

$15,413,100

21. 21^st Century Jobs Fund

Uses $75.0 million in remaining tobacco settlement revenue to continue 21^st Century Jobs Fund programs to diversify Michigan's economy.

Gross

Restricted

$75,000,000

75,000,000

$75,000,000

75,000,000

$75,000,000

75,000,000

20. Michigan Promotion Program

The Executive and House Committee add $10.0 million to expand advertising of Michigan as a tourist destination, and promote Michigan as a business location. The Senate adds $1 million and alters funding sources.

Gross

Restricted

GF/GP

$10,000,000

$10,000,000

$1,000,000

3,621,500

($2,621,500)

$10,000,000

$10,000,000

21. Community Development Block Grants

Recognizes $8.0 million in additional federal funds.

Gross

Federal

$8,000,000

8,000,000

$8,000,000

8,000,000

$8,000,000

8,000,000

22. Alternative Energy Initiative

Creates competitive grant program for gas stations adding ethanol pumps. The Senate leaves a $100 placeholder.

Gross

GF/GP

$7,000,000

$7,000,000

$100

$100

$7,000,000

$7,000,000

23. Economic Development Job Training Grants

Reduces funding for economic development job training grants.

Gross

GF/GP

($1,600,500)

($1,600,500)

($1,600,500)

($1,600,500)

($1,600,500)

($1,600,500)

24. Small Business Innovation Research (SBIR) and Small Business Technical Transfer (STTR)

The Senate adds a new line item for the SBIR/STTR matching grant program to spur R&D among small businesses.

Gross

Restricted

$1,378,500

1,378,500

25. Tool and Die Aeronautics Certification Grants

The Senate adds a new line item for tool and die aeronautics certification grants to reimburse companies for eligible costs incurred in achieving aeronautics manufacturing certification.

Gross

GF/GP

$500,000

$500,000

26. Entrepreneurial Training and Mentoring

The Senate adds a $100 place holder for the entrepreneurial training and mentoring program between the MSF, Michigan Works!, and the Department of Labor and Economic growth for students in secondary and post-secondary education. The House Committee concurs with this change.

Gross

GF/GP

$100

$100

$100

100

27. Business Incubator Program

The House Committee adds a $100 placeholder to fund a business incubator program to provide grants and loans to competitive edge technology businesses located in economically depressed areas.

Gross

Restricted

$100

100

28. Budgetary Savings

The Senate includes a new appropriation unit for budgetary savings to be taken at the discretion of the department.

Gross

GF/GP

($177,500)

($177,500)

29. MSF Economics

Funds 4.0% contractual pay increases, 7.2% increase in employee benefits, and decreases in retirement and self-insured worker's compensation.

Gross

IDG

Federal

Private

Restricted

GF/GP

$413,000

1,400

43,700

12,800

200

$354,900

$413,000

1,400

43,700

12,800

200

$354,900

$413,000

1,400

43,700

12,800

200

$354,900

Major Boilerplate Changes From FY 2006-07
DEPARTMENT OF TREASURY *Sec. 901. Contingency Funds –* NEW The Executive and House Committee appropriate up to $1.0 million for federal contingency funds, up to $10.0 million for state restricted contingency funds, up to $200,000 for local contingency funds, and $40,000 for federal contingency funds. The Senate does not include this section.
*Sec. 941. Standardized Audit Schedules –* DELETED The Executive and House Committee delete a provision that appropriates up to $570,000 from standardized audit schedules recovered delinquent tax collection revenue for the support of standardized audit schedule project expenses related to business tax audits concerning sales tax, use tax, withholding, single business tax, and motor fuel tax obligations. The Senate retains this section.
*Sec. 941. Local Public Safety Grants –* NEW The Executive and House Committee add language providing that the local public safety grants are to be distributed to cities, village, and townships for local law enforcement and fire protection services with funding based on Department of Corrections prisoner intake data on the number of prisoners residing in a local unit to prior incarceration. The minimum grant award must be $100,000, with funding contingent on an increase in liquor license fees.
*Sec. 943. Social Security Numbers –* RETAINED The House Committee and Senate retain a provision that prohibits the department from including complete social security numbers in Form 1099-G mailings. The Executive deletes this section.
*Sec. 945. Review of Local Assessment Practices –* RETAINED The House Committee and Senate retain a provision that permits the Department to review local unit assessment administration, practices, procedures, and records (known as the 14-point review) in at least one assessment jurisdiction per county. The Executive deletes this section.
*Sec. 946. State Tax Commission –* RETAINED The House Committee and Senate retain a provision that permits State Tax Commission and staff of Assessment and Certification Division to meet with statewide assessment organizations on a quarterly basis to coordinate assessment and training activities; permits recertification and training activities to be conducted at regional locations that maximize participation by local officials. The Executive deletes this provision.
*Sec. 948.* Electronic Filing – RETAIN The House Committee and Senate retain a provision that requires a report to the Legislature on the number of tax returns filed electronically. The Executive deletes this section.
*Sec. 949. Income Tax Check-Offs Initiative* – DELETED The Executive, Senate, and House Committee delete a provision that requires the department to develop a plan for individual income tax form check-offs to be implemented in tax year 2006.
*Sec. 949.* *Restriction on Fund Use for Hiring –* NOT INCLUDED Senate includes new language which restricts the use of funds to be used by a principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general. Executive and House Committee do not include language.
**Sec. 949b. Tobacco Stamp Technology RFP –NEW The House Committee adds language requiring the department to issue a competitive bid for new tobacco stamp technology and permits tobacco wholesalers to claim a deduction for costs related to the new technology in their monthly reimbursement under the Tobacco Products Tax Act. The Executive and Senate** do not include this language.
**Sec. 950. Revenue Sharing –REVISED TheHouse Committeemodifies language concerning the distribution of revenue sharing funds to specify from the total amount appropriated in part 1, there is a appropriated the amount required for constitutional revenue sharing under Section 10, Article IX of the State Constitution. The remaining balance is to be distributed in accordance with the Glenn Steil State Revenue Sharing Act. The Executive and Senate** retain the existing language.
*Sec. 956.* Special Census Revenue Sharing Payments - RETAINED The House Committee retains a provision requiring that special census revenue sharing payments be distributed to eligible local units under the Glenn Steil State Revenue Sharing Act. The Executive deletes this section and the line item appropriation. The Senate retains this section, but does not provide for a line item appropriation in part 1.
**Sec. 957. (1) & (2) Local Government Collaborative Efforts– NEW The Executive andHouse Committeeadd a provision that requires that payments to local units for collaborative efforts shall be distributed to units that achieve greater efficiencies in delivering public services using the formulas provided in the Glenn Steil State Revenue Sharing Act; up to $250,000 of the appropriation shall be expended for community partnerships grants awarded through the Centers for Regional Excellence; unexpended and unencumbered funds remaining at the end of FY 2007-08 lapse to the General Fund. The Senate** does not include this section.
**Sec. 957. (3) Local Government Collaborative Efforts– NEW T TheHouse Committeeadds a provision that allocates $100,000 each toMichiganStateUniversity andWayneStateUniversity to create city-university partnerships. The Senate** does not include this subsection.
Lottery **Sec. 962. Use of Athletes in Advertising –DELETED The Executive, Senate, and House Committee** delete a provision that prohibits the Bureau of State Lottery from associating professional or amateur sports figures (except for NASCAR drivers) with the lottery or its products; requires report to the Legislature on cost of obtaining use of NASCAR drivers, administrative costs, and net School Aid Fund revenue.
*Sec. 963.* *DHS* *Bridge* **Card Use Notification –RETAINED TheHouse Committee and Senate retain a provision that requires Bureau of State Lottery to notify retailers that DHS bridge cards cannot be used to purchase lottery tickets. The Executive** deletes this provision.
*Sec. 964.* *Restriction on Fund Use for Hiring –* NOT INCLUDED Senate includes new language which restricts the use of funds to be used by a principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general. Executive andHouse Committee do not include language.
Casino Gaming *Sec. 975.* *Restriction on Fund Use for Hiring –* NOT INCLUDED Senate includes new language which restricts the use of funds to be used by a principal executive department, state agency, or authority to hire a person to provide legal services that are the responsibility of the attorney general. Executive andHouse Committee do not include language.
MICHIGAN STRATEGIC FUND *Sec. 1001. Contingency Funds –* NEW The Executive and House Committee add a provision that appropriates up to $10.0 million for federal contingency funds, up to $1.0 million for state restricted funds, and $0.7 million for private funds. Senate does not include section.
*Sec. 1002. Economic Development Job Training (EDJT) Grants* The Executive andHouse Committeeearmark $4.5 million for community colleges rather than the 75% earmark in current law. The Executive renames the grants as the “Upper Hand Training Grants”; the House Committee and Senate retain the current name.
**Sec. 1015. Legislative Approval of MEDC Executive Members –DELETED The Executive andHouse Committeedelete a provision stating it is the intent of the Legislature that members of the MEDC Executive Committee be subject to the advice and consent of the Senate. The Senate** retains this provision.
**Sec. 1016. Audit of Jobs Created –RETAINED AND MODIFIED The House Committee retains a provision that requires the MEDC to develop and implement procedures to audit the number of jobs claims to be created by MEDC grant recipients. TheHouse Committee deletes a requirement that the MEDC work with the Office of the Auditor General in auditing job claims. The Executive deletes this section. The Senate** retains this section.
**Sec. 1017. Report on MEDC Employee Salaries –RETAINED TheHouse Committeeand Senate retain a provision that requires the MEDC to report to the legislature and state budget office the name, job title, and job description of employees with a salary of at least $80,000. The Executive** deletes this section.
**Sec. 1018. Tourism Advertising Return on Investment– RETAINED TheHouse Committeeretains a provision that requires the MEDC to contract with a state research university inMichigan to conduct a scientific study on the return on investment of state tourism advertising expenditures. The Executive and Senate** delete this section
*Sec. 1019.* *Michigan* **Economic Growth Authority MEGA Tax Credits for Leased Employees– DELETED The Executive andHouse Committeedelete a provision that requires that firms otherwise eligible for MEGA tax credits to qualify if employees hired for new jobs created are leased from a professional employer organization (PEO). The Senate** retains this section.
*Sec. 1021.* *Michigan* **Promotion Program –NEW The Executive andHouse Committeeadd language specifying that $10 million of the funds for theMichigan promotion program shall be used to accelerate to promote the state's tourism industry and business marketing activities. The Senate** does not include this language (see below).
*Sec. 1021.* *Michigan* **Promotion Program Local Tourism Efforts –DELETED The Senate adds language that allocates $1 million for theMichigan promotion program to the used to accelerate efforts to promote the state's tourism industry in coordination with local tourism efforts. The Executive** andHouse Committee do not include this language.
**Sec. 1022. Business Incubator Program –NEW TheHouse Committee adds a provision concerning the line item appropriation in part 1 for the business incubator program. The program provide grants and loans designed to foster the creation of new jobs in competitive edge technologies, with preference given to grantees located in economically depressed areas. The Executive and Senate** do not include this section or the line item.
**Sec. 1022. Small Business Innovation Research/Small Business Technology Transfer Research -DELETED The Senate includes language that provides funds for the SBIR/STTR matching grant programs from awards from the competitive edge technology grant and loan program that are not accepted by awardees. The Executive** andHouse Committee do not include this language.
*Sec. 1023.* *Watervliet* *Township* **Ethanol Plant –NEW** TheHouse Committeeincludes language allocating a $100 placeholder from the appropriation in part 1 for the alternative energy initiative to the Berrien County Brownfield Redevelopment Authority for a brownfield redevelopment project inWatervliet Township to construct an ethanol plant.
**Sec. 1023. Jobs Report –DELETED The Senate added a section requiring the MEDC to only report the actual direct number of jobs projected top be created as a result of any financial or tax incentive package that is offered to a business and to include salaries and employer sponsored benefits in its publications for marketing and public information purposes. The Executive** andHouse Committee do not include this section.
**Sec. 1024. 21^st Century Allocation for Drug Makers –DELETED The Senate added a section allocates $1.5 million from the 21^st century programs for a private research institute that has received a federal appropriation prior to 2005 for the creation of a manufacturing facility to produce drugs approved for use in clinical trials. The Executive** andHouse Committeedo not include this section.
*Sec. 1024.* *McBain* *Township* **Infrastructure Improvements –NEW** TheHouse Committeeincludes language allocating a $100 placeholder from the appropriation in part 1 for the alternative energy initiative to theMissaukeeCounty,McBainTownship for infrastructure improvements.
**Sec. 1025. 21^st Century Allocation for Biofuels –DELETED The Senate added a section that allocates $2 million from the 21^st century program to support a biofuels facility that produces biodiesel fuel and fosters the development of new biomass technologies and a biomass research institute. The Executive** andHouse Committee do not include this language.
**Sec. 1026. Tool and Die Aeronautics Certification Grants –DELETED The Senate added a section that specifies that the appropriation in part 1 for tool and die aeronautics certification grants is available to eligible businesses seeking certification in aeronautics manufacturing, and is limited to $25,000 per grantee. The Executive** andHouse Committee do not include this section.
**Sec. 1027. Entrepreneurial Training and Mentoring Program -INCLUDED The Senate andHouse Committeeadd a section specifying that the MSF shall partner with Michigan Works! agencies and the Department of Labor and Economic Growth to implement a training and mentoring program for students enrolled in secondary and post-secondary educational programs. The Executive** does not include this section.
*Sec. 1028. Tax Incentives forMichigan* Workers –DELETED The Senate include statements of legislative intent that tax and other economic development incentives be awarded to businesses that hire only Michigan workers and that for businesses that hire Michigan and non-Michigan workers, the incentives be awarded on a sliding scale. The Executive** andHouse Committeedo not include this section.
**Sec. 1028. Intermodal Transportation Centers –NEW** TheHouse Committeeincludes language allocating a $100 placeholder from the appropriation in part 1 for Intermodal Transportation Centers for a competitive grant and loan program for new hubs and improvements to existing hubs.
*Sec. 1029.* Jobs for *Michigan* **Investment Fund Allocation –DELETED The Senate adds a section that states that the appropriation in part 1 from the jobs forMichigan investment fund – returns shall be expended only for the SBIR/STTR matching grant program and theMichigan promotion program. The 21^st Century Trust Fund shall be expended only for 21^st Century programs. The Executive** and House Committee do not include this language.

Major Boilerplate Changes From FY 2006-07

DEPARTMENT OF TREASURY

Sec. 901. Contingency Funds – NEW

The Executive and House Committee appropriate up to $1.0 million for federal contingency funds, up to $10.0 million for state restricted contingency funds, up to $200,000 for local contingency funds, and $40,000 for federal contingency funds. The Senate does not include this section.

Sec. 941. Standardized Audit Schedules – DELETED

The Executive and House Committee delete a provision that appropriates up to $570,000 from standardized audit schedules recovered delinquent tax collection revenue for the support of standardized audit schedule project expenses related to business tax audits concerning sales tax, use tax, withholding, single business tax, and motor fuel tax obligations. The Senate retains this section.

Sec. 941. Local Public Safety Grants – NEW

The Executive and House Committee add language providing that the local public safety grants are to be distributed to cities, village, and townships for local law enforcement and fire protection services with funding based on Department of Corrections prisoner intake data on the number of prisoners residing in a local unit to prior incarceration. The minimum grant award must be $100,000, with funding contingent on an increase in liquor license fees.

Sec. 943. Social Security Numbers – RETAINED

The House Committee and Senate retain a provision that prohibits the department from including complete social security numbers in Form 1099-G mailings. The Executive deletes this section.

Sec. 945. Review of Local Assessment Practices – RETAINED

The House Committee and Senate retain a provision that permits the Department to review local unit assessment administration, practices, procedures, and records (known as the 14-point review) in at least one assessment jurisdiction per county. The Executive deletes this section.

Sec. 946. State Tax Commission – RETAINED

The House Committee and Senate retain a provision that permits State Tax Commission and staff of Assessment and Certification Division to meet with statewide assessment organizations on a quarterly basis to coordinate assessment and training activities; permits recertification and training activities to be conducted at regional locations that maximize participation by local officials. The Executive deletes this provision.

Sec. 948. Electronic Filing – RETAIN

The House Committee and Senate retain a provision that requires a report to the Legislature on the number of tax returns filed electronically. The Executive deletes this section.

Sec. 949. Income Tax Check-Offs Initiative – DELETED

The Executive, Senate, and House Committee delete a provision that requires the department to develop a plan for individual income tax form check-offs to be implemented in tax year 2006.

Sec. 949. Restriction on Fund Use for Hiring – NOT INCLUDED

Sec. 949b. Tobacco Stamp Technology RFP –NEW

The House Committee adds language requiring the department to issue a competitive bid for new tobacco stamp technology and permits tobacco wholesalers to claim a deduction for costs related to the new technology in their monthly reimbursement under the Tobacco Products Tax Act. The Executive and Senate do not include this language.

Sec. 950. Revenue Sharing –REVISED

TheHouse Committeemodifies language concerning the distribution of revenue sharing funds to specify from the total amount appropriated in part 1, there is a appropriated the amount required for constitutional revenue sharing under Section 10, Article IX of the State Constitution. The remaining balance is to be distributed in accordance with the Glenn Steil State Revenue Sharing Act. The Executive and Senate retain the existing language.

Sec. 956. Special Census Revenue Sharing Payments - RETAINED

The House Committee retains a provision requiring that special census revenue sharing payments be distributed to eligible local units under the Glenn Steil State Revenue Sharing Act. The Executive deletes this section and the line item appropriation. The Senate retains this section, but does not provide for a line item appropriation in part 1.

Sec. 957. (1) & (2) Local Government Collaborative Efforts– NEW

The Executive andHouse Committeeadd a provision that requires that payments to local units for collaborative efforts shall be distributed to units that achieve greater efficiencies in delivering public services using the formulas provided in the Glenn Steil State Revenue Sharing Act; up to $250,000 of the appropriation shall be expended for community partnerships grants awarded through the Centers for Regional Excellence; unexpended and unencumbered funds remaining at the end of FY 2007-08 lapse to the General Fund. The Senate does not include this section.

Sec. 957. (3) Local Government Collaborative Efforts– NEW

T TheHouse Committeeadds a provision that allocates $100,000 each toMichiganStateUniversity andWayneStateUniversity to create city-university partnerships. The Senate does not include this subsection.

Lottery

Sec. 962. Use of Athletes in Advertising –DELETED

The Executive, Senate, and House Committee delete a provision that prohibits the Bureau of State Lottery from associating professional or amateur sports figures (except for NASCAR drivers) with the lottery or its products; requires report to the Legislature on cost of obtaining use of NASCAR drivers, administrative costs, and net School Aid Fund revenue.

Sec. 963. DHS Bridge Card Use Notification –RETAINED

TheHouse Committee and Senate retain a provision that requires Bureau of State Lottery to notify retailers that DHS bridge cards cannot be used to purchase lottery tickets. The Executive deletes this provision.

Sec. 964. Restriction on Fund Use for Hiring – NOT INCLUDED

Casino Gaming

Sec. 975. Restriction on Fund Use for Hiring – NOT INCLUDED

MICHIGAN STRATEGIC FUND

Sec. 1001. Contingency Funds – NEW

The Executive and House Committee add a provision that appropriates up to $10.0 million for federal contingency funds, up to $1.0 million for state restricted funds, and $0.7 million for private funds. Senate does not include section.

Sec. 1002. Economic Development Job Training (EDJT) Grants

The Executive andHouse Committeeearmark $4.5 million for community colleges rather than the 75% earmark in current law. The Executive renames the grants as the “Upper Hand Training Grants”; the House Committee and Senate retain the current name.

Sec. 1015. Legislative Approval of MEDC Executive Members –DELETED

The Executive andHouse Committeedelete a provision stating it is the intent of the Legislature that members of the MEDC Executive Committee be subject to the advice and consent of the Senate. The Senate retains this provision.

Sec. 1016. Audit of Jobs Created –RETAINED AND MODIFIED

The House Committee retains a provision that requires the MEDC to develop and implement procedures to audit the number of jobs claims to be created by MEDC grant recipients. TheHouse Committee deletes a requirement that the MEDC work with the Office of the Auditor General in auditing job claims. The Executive deletes this section. The Senate retains this section.

Sec. 1017. Report on MEDC Employee Salaries –RETAINED

TheHouse Committeeand Senate retain a provision that requires the MEDC to report to the legislature and state budget office the name, job title, and job description of employees with a salary of at least $80,000. The Executive deletes this section.

Sec. 1018. Tourism Advertising Return on Investment– RETAINED

TheHouse Committeeretains a provision that requires the MEDC to contract with a state research university inMichigan to conduct a scientific study on the return on investment of state tourism advertising expenditures. The Executive and Senate delete this section

Sec. 1019. Michigan Economic Growth Authority MEGA Tax Credits for Leased Employees– DELETED

The Executive andHouse Committeedelete a provision that requires that firms otherwise eligible for MEGA tax credits to qualify if employees hired for new jobs created are leased from a professional employer organization (PEO). The Senate retains this section.

Sec. 1021. Michigan Promotion Program –NEW

The Executive andHouse Committeeadd language specifying that $10 million of the funds for theMichigan promotion program shall be used to accelerate to promote the state's tourism industry and business marketing activities. The Senate does not include this language (see below).

Sec. 1021. Michigan Promotion Program Local Tourism Efforts –DELETED

The Senate adds language that allocates $1 million for theMichigan promotion program to the used to accelerate efforts to promote the state's tourism industry in coordination with local tourism efforts. The Executive andHouse Committee do not include this language.

Sec. 1022. Business Incubator Program –NEW

TheHouse Committee adds a provision concerning the line item appropriation in part 1 for the business incubator program. The program provide grants and loans designed to foster the creation of new jobs in competitive edge technologies, with preference given to grantees located in economically depressed areas. The Executive and Senate do not include this section or the line item.

Sec. 1022. Small Business Innovation Research/Small Business Technology Transfer Research -DELETED

The Senate includes language that provides funds for the SBIR/STTR matching grant programs from awards from the competitive edge technology grant and loan program that are not accepted by awardees. The Executive andHouse Committee do not include this language.

Sec. 1023. Watervliet Township Ethanol Plant –NEW

TheHouse Committeeincludes language allocating a $100 placeholder from the appropriation in part 1 for the alternative energy initiative to the Berrien County Brownfield Redevelopment Authority for a brownfield redevelopment project inWatervliet Township to construct an ethanol plant.

Sec. 1023. Jobs Report –DELETED

The Senate added a section requiring the MEDC to only report the actual direct number of jobs projected top be created as a result of any financial or tax incentive package that is offered to a business and to include salaries and employer sponsored benefits in its publications for marketing and public information purposes. The Executive andHouse Committee do not include this section.

Sec. 1024. 21^st Century Allocation for Drug Makers –DELETED

The Senate added a section allocates $1.5 million from the 21^st century programs for a private research institute that has received a federal appropriation prior to 2005 for the creation of a manufacturing facility to produce drugs approved for use in clinical trials. The Executive andHouse Committeedo not include this section.

Sec. 1024. McBain Township Infrastructure Improvements –NEW

TheHouse Committeeincludes language allocating a $100 placeholder from the appropriation in part 1 for the alternative energy initiative to theMissaukeeCounty,McBainTownship for infrastructure improvements.

Sec. 1025. 21^st Century Allocation for Biofuels –DELETED

The Senate added a section that allocates $2 million from the 21^st century program to support a biofuels facility that produces biodiesel fuel and fosters the development of new biomass technologies and a biomass research institute. The Executive andHouse Committee do not include this language.

Sec. 1026. Tool and Die Aeronautics Certification Grants –DELETED

The Senate added a section that specifies that the appropriation in part 1 for tool and die aeronautics certification grants is available to eligible businesses seeking certification in aeronautics manufacturing, and is limited to $25,000 per grantee. The Executive andHouse Committee do not include this section.

Sec. 1027. Entrepreneurial Training and Mentoring Program -INCLUDED

The Senate andHouse Committeeadd a section specifying that the MSF shall partner with Michigan Works! agencies and the Department of Labor and Economic Growth to implement a training and mentoring program for students enrolled in secondary and post-secondary educational programs. The Executive does not include this section.

Sec. 1028. Tax Incentives forMichigan Workers –DELETED

The Senate include statements of legislative intent that tax and other economic development incentives be awarded to businesses that hire only Michigan workers and that for businesses that hire Michigan and non-Michigan workers, the incentives be awarded on a sliding scale. The Executive andHouse Committeedo not include this section.

Sec. 1028. Intermodal Transportation Centers –NEW

TheHouse Committeeincludes language allocating a $100 placeholder from the appropriation in part 1 for Intermodal Transportation Centers for a competitive grant and loan program for new hubs and improvements to existing hubs.

Sec. 1029. Jobs for Michigan Investment Fund Allocation –DELETED

The Senate adds a section that states that the appropriation in part 1 from the jobs forMichigan investment fund – returns shall be expended only for the SBIR/STTR matching grant program and theMichigan promotion program. The 21^st Century Trust Fund shall be expended only for 21^st Century programs. The Executive and House Committee do not include this language.