SB0128: CONFERENCE REPORT (Date Completed: 5-28-15) - FY 2015-16 MILITARY AND VETERANS AFFAIRS BUDGET

FY 2015-16 MILITARY AND VETERANS AFFAIRS BUDGET S.B. 128 (CR-1): CONFERENCE REPORT

			CHANGES FROM FY 2014-15 YEAR-TO-DATE
FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE	FY 2014-15 YEAR-TO-DATE	FY 2015-16 CONFERENCE	AMOUNT	PERCENT
FTE Positions..............................................................	889.5	888.5	(1.0)	(0.1)
GROSS.........................................................................	168,443,700	166,953,700	(1,490,000)	(0.9)
Less:
Interdepartmental Grants Received.....................	100,000	99,300	(700)	(0.7)
ADJUSTED GROSS..................................................	168,343,700	166,854,400	(1,489,300)	(0.9)
Less:
Federal Funds..........................................................	90,362,800	90,208,600	(154,200)	(0.2)
Local and Private....................................................	2,240,000	2,237,000	(3,000)	(0.1)
TOTAL STATE SPENDING.......................................	75,740,900	74,408,800	(1,332,100)	(1.8)
Less:
Other State Restricted Funds................................	23,286,400	23,221,500	(64,900)	(0.3)
GENERAL FUND/GENERAL PURPOSE..............	52,454,500	51,187,300	(1,267,200)	(2.4)
PAYMENTS TO LOCALS..........................................	100,000	102,400	2,400	2.4

FY 2014-15 Year-to-Date Gross Appropriation.....................................................................

$168,443,700

Changes from FY 2014-15 Year-to-Date:
Items Included by the Senate and House
1. Training Sites Billeting Fund. Governor, Senate, and House recommended $1.5 million in restricted spending authority to accept charges on visitors who use lodging facilities at Camp Grayling or Fort Custer to pay for ongoing operational cost at those housing facilities.	1,500,000
2. Veterans Home Funding Shortfall. Governor, Senate, and House recommended supplanting $3.3 million in member assessment revenue, down due in part to declining member census, with $3.3 million GF/GP to offset this projected loss and fully fund the homes' operations.	0
3. Elimination of Analyst Position. Governor, Senate, and House recommended elimination of a vacant partnership analyst for a savings of $117,000 GF/GP.	(117,300)
4. Departmentwide Savings. Governor, Senate, and House recommended efficiencies of $100,000 GF/GP within contractual services, supplies and maintenance.	(100,000)
5. Training Site Fire Protection. Governor and Senate recommended a reduction of $100,000 GF/GP in fire support for Fort Custer and Alpena to reflect Federal policies.	(100,000)
6. FY 2014-15 One-Time Appropriations. Governor and Senate recommended eliminating FY 2014-15 one-time appropriations for National Guard Tuition Assistance Program Reserve ($400,000 GF/GP) and Special Maintenance - Veterans Home ($3.0 million GF/GP).	(3,400,000)
7. Adjustment for FY 2014-15 Appropriations Actions. Includes $1.5 million from P.A. 6 of 2015.	(1,500,000)
8. Economic Adjustments. Includes a negative $885,900 Gross and a negative $252,200 GF/GP for OPEB and $477,800 Gross and $110,700 GF/GP for other economic adjustments.	(393,700)
9. Other Changes. Governor, Senate, and House recommended a technical adjustment to reflect non-GF/GP revenue received.	50,000
Conference Agreement on Items of Difference
10. Veterans Coalition Grant for Veterans Outreach Services. Governor recommended reducing the amount available to the Michigan Veterans Coalition by $429,000 GF/GP. Senate limited that reduction to $79,000 by adding $350,000 GF/GP over Governor's recommendation. House restored full current year appropriation. Conference included all by $29,000 from FY 2014-15.	(29,000)
11. Targeted Outreach. Senate including a placeholder line of $100, shifted from MVAA funding, for targeted outreach to veterans. Conference included $200,000.	200,000
12. Armory Maintenance. Senate added $250,000 GF/GP for armory maintenance projects. Conference included $3.0 million.	3,000,000
13. National Guard Tuition Assistance Program. Senate shifted FY 2015-16 projected surplus funding for the tuition program to be used for Veterans Coalition grants leaving the tuition program with an appropriation of $3,941,300 GF/GP. Conference conferred with Senate but used funds for coalition grants and targeted outreach.	(600,000)

Total Changes.....................................................................................................................	($1,490,000)
FY 2015-16 Conference Report Ongoing/One-Time Gross Appropriation.............................	$166,953,700
Amount Over/(Under) GF/GP Target: $0

Boilerplate Changes from FY 2014-15 Year-to-Date:

Items Included by the Senate and House

1. Federal DOD-DOA-NGB Support. Governor, Senate, and House struck section stating various Federal DOD-DOA-NGB funding to be received by DMVA. (Sec. 205a)

2. Federal DVA-VHA Support. Governor, Senate, and House struck section stating various Federal DVA-VHA funding to be received by DMVA. (Sec. 205b)

3. Federal HHS-HCFA, Medicare Support. Governor, Senate, and House struck section stating various Federal HHS-HCFA, Medicare funding to be received by DMVA. (Sec. 205c)

4. Federal HHS-HCFA, Title XIX, Medicaid Support. Governor and Senate struck section stating various Federal HHS-HCFA, Title XIX, Medicaid funding to be received by DMVA. (Sec. 205d)

5. Purchase of Goods. Senate and House removed language requiring a preference be given to a small business with at least a workforce of 35% veterans. (Sec. 209)

6. Retain Reports. Governor, Senate, and House eliminated requirement for all reports be kept and retained by DMVA. (Sec. 212)

7. Schedule of Programs. Governor, Senate, and House struck subsection stating that schedule of programs listed in Part 1 may or may not receive funding from the unit sources listed. (Sec. 216)

8. Efficiencies. Governor, Senate, and House removed language outlining priorities for finding DMVA budgetary efficiencies. (Sec. 217)

9. Quarterly Reports. Governor, Senate, and House removed language which requires a corrective action plan within 30 days of a quarterly report when requirements are not achieved. (Sec. 219)

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

11. Administrative Support. Governor, Senate, and House removed section requiring administrative support for various DMVA functions. (Sec. 301)

12. Michigan Veterans Affairs Agency (MVAA). Governor, Senate, and House amended this section by adding a requirement that the MVAA report benefit claims submitted to the USVA by coalition partner veterans service officers and by striking a requirement that a five-member advisory board of VSO members be created. (Sec. 400)

13. Veterans Service Grants. Governor, Senate, and House amended language by striking some elaboratory language and altering a metric requirement that a minimum of 6,240 hours of service be provided in State correctional facilities. (Sec. 406)

14. State Veterans Homes. Senate and House amended language concerning the Grand Rapids and D.J. Jacobetti Veterans Homes by removing many legal citations, assurance of transportation, laundry, custodial services, a dietary plan, medical assessment and 2.5 patient care hours per day. (Secs. 501/503)

15. FY 2014-15 One-Time Appropriations. Governor, Senate, and House recommended removing language concerning FY 2014-15 one-time appropriations, including a section on Special Maintenance-Veterans Home (Sec. 701) and National Guard Tuition Assistance Program - Reserve. (Sec. 702) (Secs. 701 and 702)

Conference Agreement on Items of Difference

16. New Program/Enhancement Metric. Senate added new language requiring program metrics for each new program or program expansion in excess of $500,000. Conference concurred with Senate. (Sec. 240)

17. Armories and Joint Force Readiness. Governor and Senate amended section by eliminating language which contained numerous legal citations and detailed reporting requirements with more general language requiring leadership over armory operations, a measurement system of armory conditions and a quarterly report on the status of armories. Senate retained language concerning creating a culture that is free of sexual assault. Conference concurred with Senate. (Sec. 302)

18. Billeting Account. Governor and Senate added language allowing for the creation of a revolving account to receive funds for lodging by outside groups at training facilities. Conference concurred with Senate. (Sec. 305)

19. Starbase Educational Program. Senate struck boilerplate subsection requiring program to maintain program offerings at Selfridge, Battle Creek, and Alpena Bases. Conference concurred with Senate. (Sec. 309)

20. National Guard Tuition Assistance Program. Governor and Senate amended section to remove language concerning program guidelines which are now in statutory law. Conference concurred with Senate. (Sec. 310)

21. FY 2015-16 Appropriations. Governor and Senate eliminated language requiring the MVAA to provide the percentage of veterans contacted, with a goal of 100% (Sec. 1202) and that the MVAA maintain a minimum 50% of fully developed claims of the veterans it serves. Conference continued these requirements to apply to FY 2016-17. (Sec. 1203) (Secs. 1202 and 1203)

22. FY 2014-15 Supplemental Appropriations. Conference included appropriations of $4,995,700 for a jobs program for the Michigan Youth Challenge Program, as described within Sec. 2203. (Sec. 2203)

Date Completed: 5-28-15 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.