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Senate Bill 511 (H-9 as amended by the Senate)
Committee: Appropriations

FY 2006-07 Year-to-Date Gross Appropriation $260,720,900
Changes from FY 2006-07 Year-to-Date:
  1. State Building Authority (SBA) Projects. The Governor recommended $100 line item authorizations for projects that would result in the issuance of $561.9 million in new State Building Authority debt. The House included the Governor's Recommendation and projects for every school that made a request, which would result in new bond obligations for the SBA totaling over $810.7 million. The Senate passed version (5/01/08) eliminated all but one SBA authorization. It involves the purchase of new space for the State Records Center. See Attachment A for details. 100
2. Natural Resources Trust Fund. The House and Senate included the Michigan Natural Resources Trust Fund Board of Trustees recommendation for 31 acquisitions and 34 recreation projects. FY 2007-08 projects total $35.2 million compared to the FY 2006-07 appropriation of $36.1 million. Attachment B provides a detailed listing of FY 2007-08 projects. (881,900)
3. Department of Military Affairs. Adjustments included an increase of $8,237,000 Federal (from $6,763,000 to $15,000,000) for maintenance projects; $3,500,000 Federal to construct a new Army Standard Infantry Platoon Battle Course/Live Fire Range at Camp Grayling; $8,000,000 Federal for a specially designed Company Headquarters Building facility (six structures) with attached barracks and dining facilities for the Camp Grayling Army Airfield; and a reduction of $950,000 associated with one-time FY 2006-07 projects. 18,787,000
4. Waterways Boating Program. Adjustments included $144,000 to replace a ramp and dock and other maintenance at Otsego Lake; $510,000 for a new boating access project at Walloon Lake; $1,000,000 for Phase V at Mackinaw City (breakwaters, floating docks, utility upgrades, boat launch, comfort station, parking and fuel facilities); an additional $1,679,400 for Cheboygan lock and dam repairs; $505,000 for Phase II of the Grand Haven marina rehabilitation (total project cost $2.0 million); $861,000 for a marina dock and harbormaster building expansion at Petoskey Harbor (total project cost $1.7 million); and a reduction of $8,334,400 associated with one-time projects and available revenue adjustments. The House and Senate transferred $2,976,700 from State infrastructure line item to fund the recent DNR request for dredging at Bay Port ($1,000,000) and the Mackinac Island mooring expansion project ($1,976,000). (3,635,000)
5. Department of Transportation - Buildings and Facilities. Adjustments included by the Governor, House and Senate: $1,750,000 for a new Pontiac Transportation Center (rail and intercity bus); $755,000 for renovation of the L'Anse maintenance garage; $7,450,000 for a new combined expanded State-owned maintenance garage in Lansing; and a reduction of $14,590,200 associated with one-time FY 2006-07 projects and available revenue. (4,635,200)
6. Department of Transportation - Airport Improvement Programs. Funding for the Airport Improvement Program increased from $166,457,200 to $183,191,300. Revenue adjustments included increases of $25,613,300 in Federal revenue, $2,561,100 in local aeronautics match, and $559,700 in State Aeronautics Fund revenue. A reduction of $12.0 million in Combined Comprehensive Transportation Bond Proceeds reflected the end of a five-year program for airport match. Attachment C provides a detailed listing of FY 2007-08 projects. 16,734,100
7. Other Changes. Adjustments based on available revenue and one-time funding. (7,000,000)
Total Changes $19,369,100
  FY 2007-08 Senate-Passed Gross Appropriation $280,090,000
Note: Differences in the Bill adopted by the House on April 24, 2008 and May 8, 2008 are not substantive.

Changes from FY 2006-07 Year to Date:
  1. Re-appropriation of Funds. The Governor recommended new language that provides the authorizations in 2002 PA 530 and 2005 PA 297 for the Riverside Correctional Facility - power plant automation project (total authorized cost $4,500,000; State Building Authority share $4,499,800; State General Fund share $200) are re-appropriated to the following projects: a. Huron Valley Complex - food service addition and facility renovations, for design and construction, originally authorized in 122004 PA 309 (total authorized cost increased from $3,675,100 to $5,775,100; State Building Authority share from $3,675,000 to $5,774,800; State General Fund share $300).
b. Michigan Reformatory - a 140-bed ward expansion, for design and construction (total authorized cost $1,100,000; State Building Authority share $1,100,000).
c. Camp White Lake - new waste water treatment plant, for design and construction (total authorized cost $1,300,000; State Building Authority share $1,300,000).
The House included this section, the Senate removed it.
2. WCCC Project. The Governor included language providing that funds appropriated in Part 1 for the Wayne County Community College Northwest Campus replacement shall only be released upon approval of the planning documents and construction authorization request by the JCOS. The project may not move into final design until approved by JCOS. The House concurred with the Governor. The Senate removed this section.
3. Alternative Energy Incentive. Provided that planning projects authorized in Part 1 that obtain a score equivalent to "gold" (with an on-site renewable energy component) or "platinum" on the United States Green Building Council's Leadership in Energy and Environmental Design (LEED) rating system in direct connection with the funded project would receive a 10% increase in State match for the project, if matched with an equal or greater amount by the institution. Provided for notice of eligibility to JCOS when planning documents are transmitted for approval and certain reporting requirements. The House included this language reduced to a 1.0% State match. The Senate removed the entire section.
4. Lump-sum Appropriations. This section consolidates lump-sum appropriation language contained in Capital Outlay Appropriation Bills prior to FY 2006-07. Changes made in the Governor's recommendation included: replacing DMB Director with Department Directors regarding the allocation of funds; increasing the duration of the appropriation period from two to three years following the appropriation year; eliminating the reporting requirement; and minor wording changes. The House and Senate concurred with the Governor. (Sec. 501)
5. Bond Capacity. The House included new language stating that planning project authorizations will not receive cost and construction authorizations in subsequent budget acts unless there is sufficient bonding capacity available pursuant to the State Building Authority Act. The Senate did not include this section.
6. Use and Finance Statements. The House included language that prohibits universities, community colleges, State agencies, and the MEDC from letting a contract for new construction unless the project is authorized by JCOS through approval of a use and financing statement. This language was included in Capital Outlay Budgets prior to FY 2006-07. The House version includes language consistent with current JCOS policies including a new reporting section. The Senate removed this section.
7. Michigan Business Preference/Bid Documents Submitted to JCOS. The House added new language stating that a university or community college receiving use and finance project approvals shall give preference to competitively priced goods or services that are manufactured or provided by Michigan businesses. Subsection 2 requires colleges and universities to submit bid documents to JCOS as requested. The Senate removed this section.
8. Prison Watchtowers/ Correctional Facility Locations. The House included a section that require maximum security prisons that are constructed or completed after October 1, 1986 to have operating staffed watchtowers; and language providing that appropriations for the construction of a new correctional facility, for which a specific site was not identified with the appropriation, shall not be expended until approved by JCOS. The Senate removed both sections.
9. Reporting/Standard Sections. The House and Senate restored reporting and standard sections that were contained in appropriation bills prior to FY 2006-07. (Sections: 409, 410, 601, 602, 603, 681, 682, 683, 803 and 902)

Date Completed: 5-8-08 Fiscal Analyst: Bill Bowerman Bill Analysis @ http://www.senate.michigan.gov/sfa This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. HIcap08_sp.doc