FY 2007-08 SUPPLEMENTAL H.B. 5344 (CR-1*):
CONFERENCE SUMMARY
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House Bill 5344 Conference Report (CR-1*)
Sponsor: Representative George Cushingberry
House Committee: Appropriations
Senate Committee: Appropriations
Date Completed: 4-17-08
CONTENT
House Bill 5344 (CR-1*) would provide for supplemental appropriations for fiscal year (FY) 2007-08. The supplemental appropriations contained in the bill are based on recommendations submitted to the Legislature by the Office of the State Budget (OSB) on January 14, 2008, February 7, 2008 and April 16, 2008. The House of Representatives approved House Bill 5344 (H-8) on March 20, 2008. The Senate substitute for the bill, House Bill 5344 (S-1), was passed by the Senate on March 27, 2008. The Conference Report includes $143.9 million of Gross appropriations, of which $42.3 million are General Fund/General Purpose (GF/GP) appropriations.
The major issues addressed by the supplemental appropriation bill include the appropriation of a $35.9 million settlement between the State and the Federal government involving the funding of school-based health clinics, the appropriation of $11.0 million of GF/GP funding in the Department of Environmental Quality to offset fee increases included in the Department budget but not enacted into law, the funding of several shortfalls in the Department of Human Services, funding for laboratory operations in the Department of State Police, the funding of the local government costs of conducting the January 2008 presidential primary in Michigan, and the reduction of debt service payments in the Department of Treasury. The following is a brief summary of the major line-item appropriations contained in House Bill 5344 (CR-1*):
Community Health: The bill would adjust the appropriation of quality assurance assessments in the Medicaid program and provide funding for the settlement between the State of Michigan and the Federal government involving the funding of school-based health clinics.
Education: The bill would appropriate Federal funding for educational assessment functions.
Environmental Quality: The bill includes an $11.0 million fund shift from State Restricted funding to GF/GP funding. This fund shift is necessary to adjust the enacted budget for assumed fee increases that were included in the budget but not enacted into law.
Higher Education: The bill would adjust the funding levels of the Michigan Merit Award Program and the Michigan Promise Grant Program to reflect updated estimates of actual program expenditures.
Human Services: The bill would appropriate available Federal funding for nutrition education and adjust for enacted funding shortfalls in the Foster Care Program, the Adoption Subsidy Program, and the Child Care Fund. The bill includes $4.0 million for a daycare provider increase.
Judiciary: The bill would appropriate available local revenue for automation projects in trial courts.
Military and Veterans Affairs: The bill would appropriate a 3.0% increase for veterans service organizations.
Natural Resources: The bill would provide additional funding for Forest Recreation Programs, Wildfire Protection Programs, and the St. Jean public boat launch.
State Police: The bill would provide funding to ensure that the operation of the laboratories continues at the prior fiscal year level and funding for a trooper school.
Treasury: The bill would provide the funding to reimburse local units of government for their costs associated with the January 2008 presidential primary in Michigan. The bill also would reduce the appropriation for debt service payments on general obligation bonds to reflect savings due to the refinancing of outstanding bonds to take advantage of the recent reductions in long-term interest rates. The bill provides $5.5 million of State restricted funding to allow the consolidation of the Gaming Control administration in the Detroit office.
Treasury-Strategic Fund: The bill would provide for a $3.5 million GF/GP grant to Michigan State University for bio-energy research. The bill also includes $500,000 grants to business incubator projects in Washtenaw and Macomb counties.
Table 1 provides a summary of the line items and language sections contained in House Bill 5344 (CR-1*).
Fiscal Analyst: Gary S. Olson
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. 5344/0708