FY 2010-11 HUMAN SERVICES BUDGET S.B. 1158 (S-1): SENATE-PASSED


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Senate Bill 1158 (S-1 as passed by the Senate)
Committee: Appropriations

FY 2009-10 Year-to-Date Gross Appropriation	$6,094,182,800
Changes from FY 2009-10 Year-to-Date:
1. Caseload Adjustments. The appropriation was adjusted for anticipated changes in program caseloads. Increases were assumed in the Food Assistance Program ($896.3 million Gross), Family Independence Program ($56.5 million GF), Child Care Fund ($9.1 million GF), and State Disability Assistance ($3.4 million GF). Caseload savings were assumed in the Child Development and Care (-$15.7 million Gross/-$7.7 million GF), Foster Care (-$24.0 million Gross/-$3.5 million GF) and Adoption Subsidy programs (-$5.7 million Gross/$1.0 million GF).	923,253,600
2. Child Welfare Improvements. The Senate bill included funding for 151.0 new staff to meet the Children's Rights lawsuit settlement standards (376.0 FTE below the Executive budget) at cost of $3.7 million Gross/$2.9 million GF/GP. Funded the extension of foster care, adoption and guardianship eligibility to age 20 ($7.2 million Gross/$3.7 million GF/GP) and provided $10.5 million Gross/$5.2 million GF/GP for IT upgrades.	29,973,500
3. Base Adjustments and Fund Shifts. The Senate bill included a number of fund shifts and base adjustments to reflect proper fund sourcing and support for administered programs. The bill backed out $197.1 million in GF/GP savings from TANF contingency revenue available in previous years. The bill further recognized $202.0 million in GF/GP savings associated with Michigan accessing TANF emergency contingency revenue made available through ARRA legislation. The bill further recognizes increases in Federal authorization for Weatherization ($9.0 million), Disability Determination Reconsideration staff ($21.9 million) and Refugee Assistance ($6.5 million).	55,965,600
4. Spending Increases. Senate bill provided $6.7 million Gross/$4.8 million GF/GP for 36.0% increase in adoption rates to private agencies. The bill provided for $3.0 million teenage parent counseling, $3.0 million for before & after school grants, $3.9 million for marriage & fatherhood grants, $850,000 for private contractor to provide customer service functions for local DHS offices and $500,000 for a grant to Spectrum Health System for a pilot project.	20,174,700
5. Program Reductions and Savings. The Senate recognized savings through elimination of limited term eligibility staff ($11.5 million Gross/$2.6 million GF/GP), elimination of grants for the MSU Kinship Care Center and University of Detroit legal services ($400,000 Gross), and elimination of 12.0 FTE at the Maxey Training School ($1.0 million Gross/$500,000 GF/GP). The Senate bill assumes GF/GP savings in comparison to the Governor by not funding JET Plus as proposed (-$33.0 million GF/GP), and providing funding for 197.0 additional local office field staff (-$9.6 million GF/GP).	(14,300,400)
6. Economic Adjustments. The Senate did not fund the 3.0% salary and wage adjustment ($23.9 million Gross/$7.7 million GF/GP).	21,992,600
7. Back Out FY 2009-10 Changes. This section recognizes current law adjustments in DHS appropriation for Low Income Home Energy Assistance, and additional disability staff.	(177,261,800)
8. Comparison to Governor's Rec. Senate is $50,355,100 Gross under and $42,749,200 GF/GP under the Governor.
Total Changes	$859,797,800
FY 2010-11 Senate-Passed Gross Appropriation	$6,953,980,600

Changes from FY 2009-10 Year to Date:

1. Private Child Placing Agency Overdue Foster Care Payments. New boilerplate required the Dept. to pay private child placing agencies all verified overdue payments for foster care services provided to youth under contract with the Dept. (Sec. 289)

2. Funding Prohibition Michigan Home Based Child Care Council. New Senate boilerplate forbid the Dept. from making any payment from appropriated funds to the Michigan Home Based Child Care Council. (Sec. 291)

3. Prohibition for Collection of Dues On Behalf of Michigan Home Based Child Care Council. New Senate language forbids the Dept. from utilizing any appropriated funds for the processing or dispersal of union dues on behalf of Child Care Providers Together Michigan. (Sec. 292)

4. Bridges/LEIN Integration. Modified current law boilerplate provided $300,000 in GF/GP for the integration of the Bridges eligibility system into the Law Enforcement Information Network (LEIN) computer system operated by the Dept. of State Police. Language mandated completion of the project by July 1, 2011 & provided new reporting requirements. (Sec. 295)

5. Fee Language Child Care and Adult Foster Care Facilities. Senate bill removed current law boilerplate section 309. Language required the Dept. to impose fees upon adult foster care & child care facilities. Revenue from the fees was required to be allocated exclusively for purpose of licensing and regulating child care organization & adult foster care facilities. (Sec. 309)

6. Spectrum Health System Pilot Project. Senate bill included new language requiring the Dept. to spend $500,000 GF/GP for the creation of a program operated by Spectrum Health System. The program would provide clinic-based health services to individuals who have previously made extensive use of hospital emergency rooms. (Sec. 313)

7. Foster Care Administrative Rates/Public Per Diem. Senate bill retained current law boilerplate describing the administrative per-diem made available to private foster care agencies. The bill included new language describing the creation of a per diem to be imposed upon counties for some publicly supervised foster care cases. Language further modifies the cost share for administrative rates between State & Local governments from 50%/50% under current law to 55% State/45% County. (Sec. 546 (4))

8. Public Per Diem. New Senate boilerplate described the creation of a per diem charge imposed upon counties for some publicly supervised foster care cases. The per diem would be charged for supervision of family foster care and independent living cases funded through the Child Care Fund. The language further modified the cost share for family foster care rates, independent living rates and administrative rates between the State & Local governments from 50% State/50% County under current law to 55% State/45% County. (Sec. 547)

9. Indigent Burial. Senate proposal modified current law boilerplate to permit the Dept. to implement a pilot project that would provide reimbursement to designated funeral directors for the cremation of unclaimed indigent persons. (Sec. 613 (2))

10. Food Assistance Authorization Adjustment. Senate bill did not include requested language included in the Executive rec. that would permit the Dept .to adjust Federal authorization in the food assistance payments line to account for increases in program caseload. (Sec. 620)

11. Child Development and Care Sanction Policy. New Senate boilerplate required the Dept. to develop & implement a sanctions policy that apply to criminal & fraudulent behavior in Child Development & Care program. (Sec. 671)

12. Electronic Benefit Transfer Card (Bridge Card) Abuse. New language required the Dept. to report to the Legislature on efforts to reduce inappropriate utilization of Bridge cards by program recipients. (Sec. 672)

13. Customer Service Resource Center. Senate proposal included boilerplate language that would require the Dept. to allocate $850,000 for a customer service resource center. The center would be tasked with screening calls to local DHS offices, answering routing inquiries and providing application assistance to potential program recipients. (Sec. 754)

14. Title IV-D Fee. The proposed bill eliminates boilerplate language requiring the Dept. to implement a $25.00 fee upon recipients of Title IV-D child support services. (Sec. 911)

15. Weatherization Report. The proposed bill included new language requiring the Dept. to provide quarterly report to the legislature describing the number of homes weatherized through efforts by community action agencies. (Sec. 1105)

Date Completed: 5-20-10 Fiscal Analyst: David Fosdick Bill Analysis @ http://www.senate.michigan.gov/sfa FY 2010-11 HUMAN SERVICES BUDGET BOILERPLATE HIGHLIGHTS This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. HIdhs_sp.doc