SB0773: GOVERNOR'S RECOMMENDATION (Date Completed: 2-18-14) - FY 2014-15 MILITARY AND VETERANS AFFAIRS BUDGET

FY 2014-15 MILITARY AND VETERANS AFFAIRS BUDGET S.B. 773: GOVERNOR'S RECOMMENDATION

Senate Bill 773 (as introduced) Vehicle for Governor’s Recommendation line items is Senate Bill 837

Committee: Appropriations

FY 2013-14 Year-to-Date Gross Appropriation.....................................................................

$166,730,000

Changes from FY 2013-14 Year-to-Date:
1. National Guard Tuition Assistance Program. Governor recommended $5.0 million GF/GP to implement a tuition assistance program for members of Michigan Air and Army National Guard to increase readiness, recruitment and retention, covering 100% of tuition, up to $4,500 per year.	5,000,000
2. Michigan Veterans Affairs Agency (MVAA). Governor recommended additional funding of $1.2 million GF/GP to support full staffing and CSS&M costs for FY 2014-15.	1,200,000
3. MVAA Regional Coordinators. Governor recommended funding of $750,000 GF/GP for additional 10 contracted employees from the Veterans Service Coalition to manage and monitor regional workloads of veterans' services and to provide for funding for performance incentives for service officers.	750,000
4. County Veterans Service Offices Incentives. Governor included $250,000 GF/GP to support claims processing technology for county offices, adding new county veterans service officers and for the creation of new offices.	250,000
5. Veterans Homes Special Maintenance. Governor added $3.0 million GF/GP one-time appropriation for special maintenance at the state veterans' homes.	3,000,000
6. Armory Special Maintenance. Governor added $4.0 million GF/GP one-time appropriation for special maintenance at state armories.	4,000,000
7. One-Time Appropriations for FY 2014. The Governor removed one-time FY 2013-14 appropriations of $5,500,000 GF/GP for Veterans Service Delivery Initiative ($3,965,000), MVAA Computer Upgrade ($1,500,000) and County Counselor Training conference ($45,000).	(5,500,000)
8. Grand Rapids Home Funding Adjustment. Governor shifted $225,000 in Restricted funding to GF/GP to reflect lower collection and maintain service levels.	0
9. Reductions to Reflect Actual Restricted Revenues Received. The Governor recommended reductions across several budget lines to reflect actual anticipated Restricted/Federal revenue.	(3,125,000)
10. Economic Adjustments. Includes a negative $463,500 Gross and a negative $132,100 GF/GP for OPEB and $1,753,300 Gross and $509,500 GF/GP for other economic adjustments.	1,289,900

Total Changes.....................................................................................................................	$6,864,900
FY 2014-15 Governor's Recommendation...........................................................................	$173,594,900

The changes show the differences between the schedule of programs proposed by the Governor and the prior-year line items.

FY 2014-15 MILITARY AND VETERANS AFFAIRS BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2013-14 Year-to-Date:

1. Incoming IDGs. Governor struck language listing all incoming IDGs to the DMVA budget. (Sec. 204)

2. Buy American. Governor struck language requiring giving preference to small businesses and removed definitions for "small business" and "veterans." (Sec. 209)

3. Retain Reports. Governor eliminated requirement for all reports be kept and retained by DMVA. (Sec. 212)

4. Disciplinary Action. Governor eliminated language prohibiting action against employee who communicates with Legislature. (Sec. 215)

5. Schedule of Programs. Governor struck subsection (2) stating that revenue resources in part 1 may or may not be received from the funding entities listed. (Sec. 216)

6. Efficiencies. Governor removed language outlining priorities for finding DMVA budgetary efficiencies. (Sec. 217)

7. Quarterly Reports. Governor removed reporting properties sold from DMVA quarterly report requirements. (Sec. 219)

8. Sale of Property. Governor struck requirement to give 60-day notice prior to announcement to sell property. (Sec. 223)

9. Contractual Services Guidelines. Governor struck language requiring bids for contractual services not exclude public employee unions from bid process. (Sec. 227)

10. Legacy Costs. Governor added NEW language which states the legacy costs for pensions and health care within the appropriations in part 1. (Sec. 231)

11. Unclassified Positions. Governor struck language listing unclassified employee positions and requiring the DMVA to give 30-day notice prior to requesting a new position from the Civil Service Commission. (Sec. 300)

12. Administrative Support. Governor struck language requiring effective and efficient executive direction and administrative support for DMVA operations. (Sec. 301)

13. Armory Maintenance. Governor added NEW language qualifying that armories be maintained in accordance with army regulations but only "within the constraints of the funding provided within." (Sec. 302)

14. Youth Challenge Program. Governor added NEW language sections, including subsection (4) which requires steps to be taken to recruit candidates from the economically disadvantaged and subsection (5) which requires a partnership with the DHS to identify eligible youth from DHS programs and to give priority to these youth for enrollment in the program. (Sec. 307)

15. Michigan Veterans Affairs Agency. Governor removed a numerical metric from within subsection (4) which requires staffing and resources to approve "5,295" requests for military discharge certificates (DD-214) for the fiscal year. (Sec. 401)

16. Veterans Homes. Governor removed subsection (25), which required a detailed report to subcommittees documenting the complaint management process utilized by the Grand Rapids Veterans Home by November 30, 2013. (Sec. 501)

17. County Counselor Training. Governor removed language identifying the purpose of one-time funds allocated for the purpose of assisting county counselors to attend the 2014 meeting of the National Association of County Veterans Service Officers held in Michigan. (Sec. 701)

18. Veterans Service Delivery Initiative. Governor removed language requiring one-time appropriations be used to assist the MVAA to establish infrastructure to achieve its goals and performance objectives and outcomes developed by the agency in its strategic plan and to allow expenditure for a college outreach program. (Sec. 702)

19. MVAA Computer Upgrades. Governor removed language providing for a one-time appropriation to be used for computer upgrades, including an upgrade that would integrate the Hero 2 Hire platform with the Pure Michigan Talent Connect job site. (Sec. 703)

20. FY 2014-15 Appropriations. Governor removed a provision for FY 2014-15 appropriations which would require a quarterly reporting by the MVAA on the percentage of Michigan veterans contacted with a goal of reaching 100%. (Sec. 1203)

Date Completed: 2-18-14 Fiscal Analyst: Bruce Baker

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.