FY 2009-10 CAPITAL OUTLAY SUPPLEMENTAL S.B. 251 (S-3): SENATE APPROPRIATIONS REC.


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Senate Bill 251 (S-3)
Committee: Joint Capital Outlay Subcommittee

1. Michigan Natural Resources Trust Fund. The Michigan Natural Resources Trust Fund Board of Trustees FY 2009-10 recommendation includes 25 acquisition projects and 42 development projects totaling $35.7 million. Attachment A provides a detailed listing of FY 2009-10 projects. Article IX, Section 35, of the Michigan Constitution of 1963 established the Michigan Natural Resources Trust Fund. The Trust Fund consists of all bonuses, rentals, delayed rentals, and royalties collected or reserved by the state under provisions of leases for the extraction of nonrenewable resources from State owned lands, except such revenues accruing under leases of state owned lands acquired with money from State or Federal Game and Fish Protection Funds or revenues accruing from lands purchased with such revenues.	35,658,200
2. Construction Authorizations. Construction authorizations ($100 line items) for three projects that were approved for planning in Public Act 278 of 2008 are included in this supplemental. The State share of construction costs will be funded through the State Building Authority. The projects include: a. Oakland University - Human Health Building. The new 160,260 sq. ft. (net assignable area of 97,645 sq. ft.) building will house the School of Health Sciences and the School of Nursing. The new facility will provide state-of-the-art instructional and research space including clinical laboratories, computer labs, simulation labs, and administration space. The total authorized cost is $61,748,100, financed $40 million (64.8%) from the State and $21,748,100 (35.2%) from university resources. b. Michigan Technological University - Great Lakes Research Center (GLRC). The GLRC will consist of 49,466 gross sq. ft. (net assignable area of 28,038 sq. ft.) and will include aquatic research laboratories, a hydraulics laboratory, coastal research instrumentation, boathouse facilities, offices, and meeting rooms. The facility will be located on the waterfront adjacent to the campus. The total authorized cost is $25,337,000, financed $18,750,000 (74%) from the State and $6,587,000 (26%) from university resources. c. Washtenaw Community College - Skilled Trades Training Program Renovations. Renovations to the Occupational Education Building will include updates for mechanical/HVAC, electrical, lighting and ceiling systems, interior finishes, and a new roofing system. Space will be reconfigured to provide new classroom space for the radiography program as well as providing four additional general purpose classrooms. Two dedicated labs will be provided for newly developed curricula in environmental studies and sustainability. The Skilled Trades Annex will be renovated to provide new classroom and lab instructional space including hydraulics, pneumatics, advanced manufacturing, and tensile strength labs, classroom spaces, and faculty offices. The total authorized cost is $14.8 million, financed $7.4 million (50.0%) from the State and $7.4 million (50.0%) from college resources	300
FY 2009-10 Capital Outlay Supplemental Total	$35,658,500

FY 2009-10 CAPITAL OUTLAY SUPPLEMENTAL BOILERPLATE HIGHLIGHTS

Changes from FY 2008-09 Year to Date:

1. General Sections. Standard sections regarding State spending, payments to local units of government and compliance with the Management and Budget Act are included in the bill. (Sec. 201 and Sec. 202)

2. DNR Trust Fund. Annual language regarding process for grants. The Department of Natural Resources shall require local units of government to enter into agreements with the Department of Natural Resources for the purpose of administering the Natural Resources Trust Fund grants. Among other provisions, the agreements shall require that grant recipients agree to dedicate to public outdoor recreation uses in perpetuity the land acquired or developed; to replace lands converted or lost to other than public outdoor recreation use; and, for parcels acquired that are over 5 acres in size, to provide the State with a nonparticipating 1/6 minimum royalty interest in any acquired minerals that are retained by the grant recipient. The agreements shall also provide that the full payments of grants can be made only after proof of acquisition, or completion of the development project is submitted by the grant recipient and all costs are verified by the Department of Natural Resources. (Sec. 301)

3. Unobligated Balances. Provides that unobligated balances in any Michigan Natural Resources Trust Fund appropriation shall not revert to the fund from which appropriated at the close of the fiscal year, and shall continue until the purpose for which it was appropriated is completed for a period not to exceed three fiscal years. Funds remaining after the completion of the project shall revert to the Trust Fund. (Sec. 302)

4. Bay City State Police Post - Cost Increase. The Bay City State Police Post project was authorized for construction in Public Act 278 of 2008 with an estimated total project cost of $2,889,000. Minimal project site costs were identified at the time construction was authorized, and an increase is necessary to provide for site development expenses including excavation, utility connections, drainage, asphalt paving, and perimeter fencing. This boilerplate section increases the authorized cost of the project by $311,000, from $2,889,000 to $3,200,000. (Sec. 404)

5. Other Sections. Other standard capital outlay boilerplate sections are included in the bill. (Sections 401, 402, 403, 501, 502, and 503)

Date Completed: 1-19-10 Fiscal Analyst: Bill Bowerman

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hicap_fs.doc