FY 2006-07 SUPPLEMENTAL APPROPRIATIONS H.B. 4493 (S-1, Draft 2): COMMITTEE SUMMARY


House Bill 4493 (Substitute S-1, Draft 2)
Sponsor: Representative George Cushingberry
House Committee: Appropriations
Senate Committee: Appropriations


Date Completed: 6-20-07

CONTENT

House Bill 4493 (S-1) provides for supplemental appropriations for FY 2006-07. The bill contains positive General Fund/General Purpose (GF/GP) supplemental appropriations to address projected funding shortfalls in the Departments of Community Health, Corrections, and Human Services. The bill provides for the appropriation of numerous Federal, State Restricted, and local and private funding sources that have become available since the beginning of the fiscal year. The final major component of the bill is the appropriation of a variety of Federal and State Restricted funding sources for Capital Outlay projects across the State. Gross appropriations in the bill total $533.3 million and GF/GP appropriations total $73.9 million. Following is a brief summary of the major appropriations contained in House Bill 4493 (S-1). Table 1 provides a department-by-department summary of the line-item appropriations contained in the bill. Table 2 provides a summary of the boilerplate language contained in the bill.

Capital Outlay: The bill includes the initial fiscal year funding for numerous State Restricted and Federal fund appropriations for Capital Outlay projects across the State. Most of these appropriations have been pending since the Governor vetoed the FY 2006-07 Capital Outlay appropriation bill approved by the Legislature in December 2006. These Capital Outlay projects total $96.4 million funded with $12.5 million of Federal funds and $81.9 million of State Restricted funds. The bill includes Department of Agriculture funding for the purchase of farmland and open space development rights; special maintenance funding for State buildings in the Department of Management and Budget; special maintenance funding in the Department of Military and Veterans Affairs; airport improvement and special maintenance projects in the Department of Transportation (2007 PA 3 included a majority of the FY 2006-07 airport funding); and State park and forest road improvement funding, wildlife habitat funding, waterways boating access projects and access improvements, and Natural Resources Trust Fund projects in the Department of Natural Resources.

Community Health: The bill includes $142.7 million of GF/GP funding to close projected funding shortfalls in the budget. These funding shortfalls include caseload adjustments and adjustments related to the overappropriation of Federal and State Restricted funds. The bill also includes $3.8 million of GF/GP funding to provide for the salary increases for mental health direct care workers. Increased GF/GP funding of $7.7 million is included for the home and community-based waiver program designed for in-home services to people at risk for nursing home placement. This $7.7 million GF/GP funding increase is offset by an identical reduction in nursing home funding. The final GF/GP funding item in Community Health is a restoration of the reductions in funding for nursing homes and hospitals included in Public Act 17 of 2007. This item results in a $6.5 million GF/GP funding increase.

Corrections: The bill includes $42.4 million of GF/GP funding to address projected funding shortfalls in the operations of the State's prisons and the health care costs for inmates.

Higher Education: The bill includes a $90.0 million GF/GP fund source shift in financial aid programs. This fund source shift replaces GF/GP funding with Merit Award Trust Fund revenue. The additional Merit Award Trust Fund revenue is a result of a transfer of $90.0 million of surplus revenue in the Higher Education Student Loan Authority.

Human Services: The bill includes $33.5 million of GF/GP funding to close projected funding shortfalls in the budget. These funding shortfalls include caseload adjustments and other adjustments related to fund source issues.

Management and Budget: The bill includes a $15.2 million GF/GP funding increase for debt service payments on State Building Authority bonds. This GF/GP funding increase is used to offset $15.2 million of debt service payments that were made to reimburse the Federal government for funds owed by the State as a result of a transfer of funds from the health advance funding account in the State Employees Retirement System. This transfer was a component of Executive Order 2007-3.

State Police: The bill includes the appropriation of $4.0 million of State Restricted funding for the Auto Theft Prevention Program. This funding restores a reduction included in Executive Order 2007-3.

Treasury: The bill includes a $70.0 million GF/GP fund source shift in debt service payments on General Obligation bonds supporting environmental cleanup programs. The fund source shift replaces GF/GP funding with Environmental Protection Fund revenue. The additional Environmental Protection Fund revenue is a result of a transfer of $70.0 million of surplus revenue in the Refined Petroleum Fund.

FISCAL IMPACT
House Bill 4493 (S-1) provides for supplemental appropriations for FY 2006-07. Gross appropriations in the bill total $533.3 million and GF/GP appropriations total $73.9 million.

Fiscal Analyst: Gary S. Olson
Table 1
 House Bill 4493: FY 2006-07 Supplemental Appropriations
Line-Item Appropriation Summary (thousands of dollars)

House-Passed Bill Senate Substitute
Department/Program Gross GF/GP Gross GF/GP
Capital Outlay      
Military Affairs Maintenance Projects $6,763. 0 $0. 0 $6,763. 0 $0. 0
North Lansing Complex Renovations 300. 0 0. 0 300. 0 0. 0
Agriculture (Farmland and Open Space Development Acquisition) 0. 0 0. 0 3,750. 0 0. 0
Management and Budget Special Maintenance Projects 0. 0 0. 0 2,000. 0 0. 0
Natural Resources (State Park Maintenance) 0. 0 0. 0 2,000. 0 0. 0
Natural Resources (Forest Roads, Bridges and Facilities) 0. 0 0. 0 1,400. 0 0. 0
Natural Resources (Wildlife Wetlands Acquisitions) 0. 0 0. 0 2,000. 0 0. 0
Natural Resources (Waterways Projects) 0. 0 0. 0 14,870. 0 0. 0
Natural Resources ( Trust Fund Projects) 0. 0 0. 0 36,148. 1 0. 0
Transportation (Departmental Maintenance Projects) 0. 0 0. 0 22,050. 3 0. 0
Transportation (Airport Safety, Protection and Improvements) 0. 0 0. 0 5,143. 4 0. 0
Wayne County Community College (SBA Planning Authorization) 0. 1 0. 1 0. 0 0. 0
Ferris State University (SBA Planning Authorization) 0. 1 0. 1 0. 0 0. 0
Subtotal Capital Outlay $7,063. 2 $0. 2 $96,424. 8 $0. 0
       
  Civil Rights      
Operations 276. 0 0. 0 276. 0 0. 0
Subtotal Civil Rights $276. 0 $0. 0 $276. 0 $0. 0
       
  Community Health      
Middle School Health Program 700. 0 0. 0 700. 0 0. 0
Vital Records System Enhancements 2,500. 0 0. 0 2,500. 0 0. 0
Credentialing Database for Health Care Providers 3,100. 0 0. 0 3,100. 0 0. 0
Women, Infants and Children Nutrition Program 3,313. 0 0. 0 10,713. 0 0. 0
Crime Victims Rights Revenue to State Police 1,033. 2 0. 0 1,033. 2 0. 0
Hospital QAAP Adjustment 23,400. 0 0. 0 23,400. 0 0. 0
Community Mental Health Wage Pass-Through Funding 0. 0 0. 0 7,300. 0 3,806. 7
Medicaid Funding Shortfalls 0. 0 0. 0 243,177. 7 132,403. 8
Hospital & Nursing Home QAAP Restoration (Restores Cuts in PA 17 of 2007) 7,404. 1 3,229. 7 14,808. 4 6,459. 4
Morris Hood Diabetes Outreach Program (Restoration) 100. 0 100. 0 0. 0 0. 0
Home and Community-Based Waiver Expansion 0. 0 0. 0 17,644. 3 7,689. 4
Nursing Home Funding Adjustment 0. 0 0. 0 (17,644.3) (7,689.4)
Subtotal Community Health $41,550. 3 $3,329. 7 $306,732. 3 $142,669. 9
  Corrections      
Hospital and Specialty Care Services 23,276. 9 23,276. 9 24,376. 9 24,376. 9
Operational Funding Shortfalls 0. 0 0. 0 18,884. 1 18,014. 1
Subtotal Corrections $23,276. 9 $23,276. 9 $43,261. 0 $42,391. 0
       
  Education      
Commodity Distribution Fee Revenue 227. 0 0. 0 227. 0 0. 0
Subtotal Education $227. 0 $0. 0 $227. 0 $0. 0
       
  Environmental Quality      
Air Quality Programs 575. 0 0. 0 575. 0 0. 0
Green Chemistry Initiative 1,000. 0 0. 0 1,000. 0 0. 0
Office of Great Lakes 45. 0 0. 0 45. 0 0. 0
Brownfield Grants and Loan Program 10,000. 0 0. 0 10,000. 0 0. 0
Information Tech. Fund Source Shift 0. 0 0. 0 0. 0 0. 0
Subtotal Environmental Quality $11,620. 0 $0. 0 $11,620. 0 $0. 0
       
  Higher Education      
Financial Aid Fund Source Shift 0. 0 0. 0 0. 0 (90,000.0)
Subtotal Higher Education $0. 0 $0. 0 $0. 0 $(90,000.0)
       
  Human Services      
Departmental Single Audit Costs 950. 0 0. 0 950. 0 0. 0
Nutrition Education 1,914. 0 0. 0 1,914. 0 0. 0
Strong Families/Safe Children Caseworkers 3,212. 8 0. 0 3,212. 8 0. 0
Child Support Enforcement System 2,182. 1 0. 0 2,182. 1 0. 0
Emergency Funding for Hurricane Katrina 500. 0 0. 0 500. 0 0. 0
Day Care Services Adjustment (1,700.0) 0. 0 (1,700.0) 0. 0
Child and Family Services Adjustment 0. 0 0. 0 (10,200.0) 3,900. 0
Child Care Fund Adjustment 0. 0 0. 0 5,000. 0 9,700. 0
Public Assistance Caseload Adjustment 0. 0 0. 0 12,523. 4 19,923. 4
Subtotal Human Services $7,058. 9 $0. 0 $14,382. 3 $33,523. 4
       
  Information Technology      
Public Protection Funding 5,046. 2 0. 0 5,546. 2 0. 0
Subtotal Information Technology $5,046. 2 $0. 0 $5,546. 2 $0. 0
       
  Judiciary      
Judicial Information Systems 1,500. 0 0. 0 1,500. 0 0. 0
Direct Trial Automation Support 890. 0 0. 0 890. 0 0. 0
Drunk Driving Case Flow Program 700. 0 0. 0 700. 0 0. 0
Subtotal Judiciary $3,090. 0 $0. 0 $3,090. 0 $0. 0
       
  Labor and Economic Growth      
Public Service Commission (Cable Television Regulation) 600. 0 0. 0 600. 0 0. 0
Financial Services Oversight 873. 7 0. 0 873. 7 0. 0
Job Training Funding 0. 0 0. 0 10,000. 0 0. 0
Subtotal Labor and Economic Growth $1,473. 7 $0. 0 $11,473. 7 $0. 0
       
  Management and Budget      
State Building Authority Rent 0. 0 0. 0 15,200. 0 15,200. 0
Subtotal Management and Budget $0. 0 $0. 0 $15,200. 0 $15,200. 0
       
  Michigan Strategic Fund Agency      
Community Development Block Grants 8,000. 0 0. 0 8,000. 0 0. 0
Subtotal Michigan Strategic Fund $8,000. 0 $0. 0 $8,000. 0 $0. 0
       
  Military and Veterans Affairs      
Michigan Regional Training Institute 0. 0 0. 0 450. 0 100. 0
Grand Rapids Veterans Home 2,533. 9 0. 0 2,533. 9 0. 0
D.J. Jacobetti Veterans Home 180. 0 0. 0 180. 0 0. 0
Starbase Grant 707. 0 0. 0 707. 0 0. 0
Subtotal Military and Veterans Affairs $3,420. 9 $0. 0 $3,870. 9 $100. 0
       
  Natural Resources      
Wildlife Management (Deer Habitat) 300. 0 0. 0 300. 0 0. 0
Forest Fire Protection 278. 0 0. 0 278. 0 0. 0
Forest Recreation and Trails 250. 0 0. 0 250. 0 0. 0
Minerals Management 225. 0 0. 0 225. 0 0. 0
General Law Enforcement 50. 0 0. 0 50. 0 0. 0
Off-Road Vehicle Trail Improvement Grants 55. 0 0. 0 55. 0 0. 0
Subtotal Natural Resources $1,158. 0 $0. 0 $1,158. 0 $0. 0
       
  State      
Motorcycle Safety Education Grants 80. 0 0. 0 80. 0 0. 0
Driver Education Training Workshops 60. 0 0. 0 60. 0 0. 0
Subtotal State $140. 0 $0. 0 $140. 0 $0. 0
       
  State Police      
Auto Theft Prevention Grants (E.O 2007-3 Restoration) 4,000. 0 0. 0 4,000. 0 0. 0
Deficit Elimination Funding Proposal 5,421. 5 0. 0 5,421. 5 0. 0
Reimbursed Services (National Governor's Conference Security Costs) 0. 0 0. 0 700. 0 0. 0
Information Technology (Local
Fees for Communications System)		 0. 0 0. 0 500. 0 0. 0
Subtotal State Police $9,421. 5 $0. 0 $10,621. 5 $0. 0
       
  Transportation      
Interdepartmental Grant to State Police 1,298. 4 0. 0 1,298. 4 0. 0
Subtotal Transportation $1,298. 4 $0. 0 $1,298. 4 $0. 0
       
  Treasury      
Debt Service Fund Source Shift from GF/GP to Environmental Fund 0. 0 0. 0 0. 0 (70,000.0)
Subtotal Treasury $0. 0 $0. 0 $0. 0 $(70,000.0)
       
  Appropriations Total for H.B. 4493 $124,121. 0 $26,606. 8 $533,322. 1 $73,884. 3
Table 2
 House Bill 4493
FY 2006-07 Supplemental Appropriations
Boilerplate Summary


Department/Issue		 House-Passed Bill Senate Substitute
  General language on payments to local government included in the bill. Sec. 201 Sec. 201
   
General language that subjects the appropriations in the bill to the Management and Budget Act. Sec. 202 Sec. 202
   
  Capital Outlay. Requires notification when spending to local units of government is below the amount reported in the bill. Not Included Sec. 210
   
  Capital Outlay. Defines capital outlay terms in the bill. Not Included Sec. 211
   
  Capital Outlay. Requires the funds appropriated be used for the purchase of American-made goods and services, if competitively priced and of competitive quality. Not Included Sec. 212
   
  Capital Outlay. Requires that reports to the Legislature be submitted electronically. Not Included Sec. 213
   
  Capital Outlay. Language dealing with the appropriation to be used in the Department of Agriculture for the purchase of farmland development rights. Not Included Sec. 215
   
  Capital Outlay. Requires that maximum security prisons shall have staffed watchtowers. Not Included Sec. 217
   
  Capital Outlay. Requires Joint Capital Outlay Subcommittee approval for prison expansion in the State. Not Included Sec. 218
   
  Capital Outlay. Requires that any capital outlay construction project complies with the procedures required under the Management and Budget Act. Sec. 301 Sec. 220
   
  Capital Outlay. Requires that any capital outlay construction project includes a statement of the projected operating costs of the new building. Sec. 302 Sec. 221
   
  Capital Outlay. Requires universities and community colleges agree to limit the cost of new building to the amount authorized by the Legislature. Sec. 303 Sec. 222
   
  Capital Outlay. Requires the Department of Management and Budget to provide status reports on capital construction projects. Not Included Sec. 223
   
  Capital Outlay. Requires Joint Capital Outlay Subcommittee review of all appropriated capital outlay authorizations. Not Included Sec. 224
   
  Capital Outlay. Requires the use of any available Federal funds to be used as the match for State Building Authority funding for projects. Not Included Sec. 225
   
  Capital Outlay. Requires the Department of Management and Budget to do cost analysis of any capital outlay project larger then $1.0 million. Not Included Sec. 226
   
  Capital Outlay. Requires a five-year capital outlay plan to be prepared by the Department of Management and Budget. Not Included Sec. 227
   
  Capital Outlay. Requires Joint Capital Outlay Subcommittee approval of self-financed projects in excess of $3.0 million for universities and community colleges. Not Included Sec. 230
   
  Capital Outlay. Language dealing with special maintenance projects on State buildings. Not Included Sec. 233
   
  Capital Outlay. Language dealing with the demolition of State buildings. Not Included Sec. 234
   
  Capital Outlay. Prohibits State departments from expending more than $600,000 of their operating budgets for maintenance of State buildings. Not Included Sec. 235
   
  Capital Outlay. Requires reporting of leases of State departments in privately owned buildings. Not Included Sec. 237
   
  Capital Outlay. The appropriations for the Department of Military and Veterans Affairs are contingent upon the receipt of available Federal and State Restricted funding. Not Included Sec. 240
   
  Capital Outlay. State Building Authority procedures for community college projects. Sec. 331 Sec. 241
   
  Capital Outlay. State Building Authority language regarding matching funds for construction projects. Sec. 332 Sec. 242
   
  Capital Outlay. Community College and University approval for capital outlay projects and local matching funds. Sec. 333 Sec. 243
   
  Capital Outlay. Language dealing with harbor and dock projects in the Department of Natural Resources. Not Included Sec. 245
   
  Capital Outlay. Requires an annual report from the Department of Natural Resources on capital outlay project status. Not Included Sec. 246
   
  Capital Outlay. Requires agreements with local units of government on Natural Resources Trust Fund projects. Not Included Sec. 247
   
  Capital Outlay. Provides for three-year time frame for the expenditure of Natural Resources Trust Fund projects. Not Included Sec. 248
   
  Capital Outlay. Language dealing with transportation projects. Not Included Sec. 250
   
  Capital Outlay. Requires an annual report from the Department of Transportation on capital outlay project status. Not Included Sec. 251
   
  Capital Outlay. Provides for a two-year time frame for airport construction projects. Not Included Sec. 252
   
  Capital Outlay. Prohibits the use of airport funds to expand runways at the Detroit-Willow Run Airport. Not Included Sec. 253
   
  Capital Outlay. Language dealing with revenue collected under the antenna site management project. Not Included Sec. 255
   
  Capital Outlay. Creates a site preparation economic development fund in the Department of Management and Budget. Not Included Sec. 256
   
  Colleges and Universities. Provides for pension contribution rate adjustments to community colleges and universities included in Executive Order 2007-3. Sec. 371 Sec. 371
   
  Colleges and Universities. Language that clarifies the $90.0 million fund source shift in financial aid programs. Not Included Sec. 372
   
  Environmental Quality. Capitalizes the Brownfield Revolving Fund with the appropriation in Part 1. Not Included Sec. 401
   
  Human Services. Language dealing with Early Childhood Investment Corporation funds. Sec. 431 Sec. 431
   
  Human Services. Requires the Department to provide an annual report of Early Childhood Investment Corporation expenditures. Sec. 432 Sec. 432
   
  Labor and Economic Growth. Language dealing with appropriation in the bill on cable television regulation. Sec. 471 Sec. 471
   
  Michigan Strategic Fund. Language which transfers and appropriates $20.0 million of 21st Century Jobs Fund to the General Fund. Sec. 571 Not Included
   
  Military and Veterans Affairs. Creates account to support the operation of the regional training center institute in Battle Creek. Not Included Sec. 501
   
  Military and Veterans Affairs. Sets conditions on which groups can use the facilities of the regional training center institute. Not Included Sec. 502
   
  State Police. Language that prohibits the Department from closing any State Police posts before September 30, 2007. Sec. 633 Sec. 633
   
  Treasury. Creates a work project for the $10.0 million GF/GP appropriation contained in Public Act 17 of 2007 for the implementation of a new business tax. Not Included Sec. 700
   
  Repealer. Section 627 of Article 10 of PA 346 of 2006 is repealed. Human Services language dealing with grants for day care providers. This language is replaced with new Sec. 431 and Sec. 432. Sec. 1001 Sec. 1001
S0708\s4493sa
 This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. hb4493/0708