FY 2002-03 CAPITAL OUTLAY BUDGET - S.B. 1099 (S-1): SENATE-PASSED



Senate Bill 1099 (S-1 as passed by the Senate)

Committee: Appropriations

FY 2001-02 Year-to-Date Gross Appropriation $486,161,200
Changes from FY 2001-02 Year-to-Date:
1. State Agency Special Maintenance. The recommendation provides continued General Fund support for State agency special maintenance and reduces funding from building occupancy charges due to a reduction in these appropriations at the user agencies. (3,000,000)
2. Farmland and Open Space. The recommendation continues the $5,000,000 appropriation for the purchase of development rights on Farmland and Open Space, and provides $2.5 million in new Federal funds for this program. 2,500,000
3. Department of Military Affairs. The recommendation includes a $682,000 increase in Federal authorization for armory maintenance and construction projects and maintains the General Fund support. The $500,000 appropriation for statewide land acquisitions and appraisals, funded from the armory construction fund, has been eliminated; these revenues have been recommended for State match for 3 new armory construction projects recommended in an FY 2001-02 supplemental. 182,000
4. Department of Natural Resources. The Governor recommends the elimination of several one-time appropriations; transfers $800,000 from the DNR operating budget for the forest roads, bridges, and facilities program; and includes a new $1,500,000 appropriation for deer habitat development. The Governor has also recommended the elimination of several one-time boating program and harbor projects and the inclusion of several new projects, the largest of which is $9,025,000 for a marina expansion project on Mackinac Island. (1,139,000)
5. Department of Transportation. The Governor's recommendation includes the elimination of several one-time projects, a new $3,000,000 construction authorization for the Monroe welcome center, and a number of appropriation adjustments for new project offices, miscellaneous remodeling and renovation projects, and for the purchase of property at various locations statewide. (200,000)
6. Aeronautics. The Governor has recommended a new Airport Safety and Protection Plan that would allow the Aeronautics commission to issue $60 million in bonds over 5 years to match new Federal funds for airport improvement and security projects. The Senate Substitute appropriates the $12 million in bond proceed revenues. This new bond money would replace the $5,000,000 in General Fund support for airport projects that was eliminated by the Governor. The debt service for these bonds would be paid by redirecting $6,000,000 (of the $18,000,000 collected annually) in airport parking tax revenue at Detroit Metro, that currently goes to Wayne County's general fund. The recommendation also includes the final payment of $12,000,000 of the State's obligation for the Northwest Airline midfield project at Detroit Metro. 76,278,000
7. State Building Authority Rent (Debt Service). The Governor's recommendation provides an increase for rent (debt service) payments for previously authorized construction projects at State agencies, universities, and community colleges. This represents 90% of the estimated total rent needs; the difference to be achieved if there are delays in project construction schedules. 16,487,700
8. College and University Planning Authorizations. The Governor recommends no new planning or construction authorizations. The Senate Substitute adds 17 new planning authorizations, ten at community colleges and five at universities. 1,700
9. Comparison to Governor. The Senate Substitute is $12,001,700 Gross and $1,700 GF/GP over the Governor.
Total Changes $91,110,400
FY 2002-03 Senate Gross Appropriation $577,271,600
FY 2002-03 CAPITAL OUTLAY BUDGET - BOILERPLATE HIGHLIGHTS
Changes from FY 2001-02 Year to Date:
1. Prison Watch Towers. The Governor eliminated language that requires new maximum security prisons to have operational watch towers. This language was restored in the Senate Substitute. (Sec. 301).
2. New Prison Sites. The Governor eliminated language that requires JCOS approval of any new prison site. This language was restored in the Senate Substitute. (Sec. 302).
3. Comparative Cost Analysis. The Governor eliminated language that requires, upon JCOS request, a detailed comparative cost analysis of a construction project or lease that costs more than $1,000,000. This language was restored in the Senate Substitute. (Sec. 407).
4. Demolition of Buildings. The Governor eliminated language that requires specific authorization to demolition buildings, and replaces that with language allowing the Department to determine which buildings should be demolished. This language was restored in the Senate Substitute. (Sec. 602).
5. Special Maintenance Approval. The Governor eliminated language that allows for special maintenance expenditures from operating accounts up to $1,000,000 in nonroutine, emergency cases and prohibits special maintenance expenditures from operating accounts that are over $1,000,000. The Senate Substitute creates new languate to prohibit capital outlay expenditures over $1,000,000 from operating accounts. (Sec. 603).
6. Option to Purchase by the State Building Authority. The Governor eliminated language allowing the State Building Authority to acquire lease purchase options up to $35,000,000 in aggregate for state office and warehouse space. The Senate Substitute concurs in the Governor's recommendation.
7. Private Leased Space Report. The Governor eliminated language that requires a report on privately-owned leased space by State agencies. This language was restored in the Senate Substitute. (Sec. 902).
8. Haven Hills Natural Area. The Governor eliminated one-time language allowing the Department of Natural Resources to receive services up to $800,000 from Detroit Edison for damages at the Haven Hill Natural area, and which requires a report on the amount of settlement received. The Senate Substitute concurs in the Governor's recommendation.
9. Harbor Development Fund Transfer. The Governor recommends new language that would allow the transfer of $4,900,000 from the Harbor Development Fund to the State Waterways Fund for waterways projects appropriated in the bill. The Senate Substitute concurs in the Governor's recommendation. (Sec. 1003)
10. Federal Funds for Airport Projects. The Governor eliminated language that requires notification if additional Federal funds become available. This language was restored in the Senate Substitute. (Sec. 1101-4).
11. Detroit Metro - Midfield Terminal Project. The Governor includes language to allocate the final payment of $12,000,000 to the Northwest Airlines midfield terminal project at Detroit Metro Airport. The Senate Substitute concurs in the Governor's recommendation. (Sec. 1101-5).
12. Detroit-Willow Run Runway Extension. The Governor eliminated language that prohibits money for runway extensions or improvements to expand the airport into a tradeport. This language was restored in the Senate Substitute. (Sec. 1101-6).
13. Line-item Authorization for Certain Airports. The Governor eliminated language that requires line-item authorization for an airport acquisition project from a private owner or local unit of government for operation by the State or local unit of government. The Senate Substitute concurs in the Governor's recommendation.
14. Airport Project Authorization Time. The Governor increased the time for which planning or construction authorizations for airport projects is valid from three years to four years. The Senate retained the 3-year authorization. (Sec. 1104).
15. Planning Authorization Contingent Upon Bond Cap. The Senate Substitute includes new language that states that planning authorizations contained in the bill not move to construction unless there is sufficient bond capacity. (Sec. 805)
16. Farmland and Open Space. The Senate Substitute includes new language recommended by the Governor to require that Farmland and Open Space Development Rights funds are appropriated pursuant to authorizing legislation. (Sec. 251)

Date Completed: 5-16-02 - Fiscal Analyst: Mike Hansen