FY 2011-12 ENERGY, LABOR, AND ECONOMIC GROWTH BUDGET S.B. 175: GOVERNOR'S RECOMMENDATION


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Senate Bill 175 (as introduced)
Vehicle for Governor's Recommendation line items is Senate Bill 199
Committee: Appropriations

FY 2010-11 Year-to-Date Gross Appropriation $1,277,823,200
Changes from FY 2010-11 Year-to-Date:
  1. Fire Protection Grants. The Governor reduced support for these grants to $9,273,900. Direct GF/GP savings would be achieved through shifting Liquor Purchase Revolving Funds (LPRF) from this program to Bureau of Fire Services. (1,636,600)
2. Workers' Compensation Appellate Commission. The Governor eliminated this 5-member commission due to the declining number of cases the Commission has been receiving. These cases would be heard in the Court of Appeals. All savings would be GF/GP, and would cause the layoff of 7.0 classified FTEs. (1,173,100)
3. Administrative Reductions. The Governor reduced five GF/GP program administration areas within the Department: Workforce Programs Administration ($529,200), Worker's Compensation Agency ($400,000), Wage and Hour Division ($110,000), Hispanic/Latino Commission ($80,000), and Disability Concerns Commission ($10,700). Savings would be primarily through holding positions vacant and reassigning existing staff. (1,129,900)
4. Michigan Business One-Stop Portal. The Governor continued support for the development of the website portal. Funding for this would be from available State restricted funds. 1,820,000
5. Office of Financial and Insurance Regulation (OFIR) - Securities Program. 5.0 FTEs and restricted funds would be used to support new Federal requirements which require the State to regulate financial advisors who manage between $25.0 - $100.0 million. 381,000
6. OFIR - Credit Union Examinations. An additional 2.0 FTEs and restricted funding would be used to support increased demand for these examinations. The State Budget Office maintains that this increase is needed to meet statutory examination cycle requirements. 175,000
7. Tax Tribunal. Restricted funds would be used to support increased numbers of tax appeal cases. 150,000
8. Postsecondary Education Program. Restricted funding would support an increasing number of private occupational schools seeking licensure. The funding would also be used for supporting investigations of consumer complaints related to these programs. 145,700
9. Real Estate Education Program. Increased restricted funding would support the enforcement of continuing education requirements for real estate professionals. 28,000
10. Technical Adjustments. Several technical spending reductions would reduce excess spending authorization, remove one-time appropriations, reduce TANF spending to match available revenue, and adjust IDGs to the State Office of Administrative Hearings and Rules. (19,899,800)
11. Retirement Savings. Savings from retirement incentive in FY 2009-10. $624,200 GF/GP savings. (1,824,900)
12. Economic Adjustments. Governor included $17,283,900 Gross, $742,200 GF/GP; DIT $983,300 Gross, $0 GF/GP. 17,283,900
Total Changes ($5,680,700)
  FY 2011-12 Governor's Recommendation $1,272,142,500
The changes show the differences between the schedule of programs proposed by the Governor and the prior-year line items.
FY 2011-12 ENERGY, LABOR, AND ECONOMIC GROWTH BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2010-11 Year to Date:
  1. Out-of-State Travel. Language limiting out-of-state travel was eliminated. (Sec. 217)
2. Private Grant Project Notification. Language requiring the Department to notify the Legislature when it funds privately-funded grants was eliminated. (Sec. 225)
3. GF/GP Lapse Report. Language requiring a report on GF/GP lapse estimates was eliminated. (Sec. 226)
4. Credit/Debit Card Payment. Permission for the Department to accept credit/debit cards was eliminated. (Sec. 228)
5. FTE Report/Transparency Website. A section requiring (1) a quarterly FTE report as well as (2) a website with Department expenditures was eliminated. (Sec. 231)
6. Fire Protection Grant Local Report. A section requiring an annual expenditure report from municipalities receiving fire protection grants was eliminated. (Sec. 301a)
7. Real Estate Red Book Printing. A section allowing the Department to resume printing the real estate law and rules book (Red Book) was eliminated. (Sec. 321)
8. Unarmed Combat Regulation Expenditures. A section allowing the Department to spend up to $200,000 to regulate unarmed combat was eliminated. (Sec. 323)
9. Unemployment Insurance Agency (UIA) Computer System Modernization. A section requiring the Department to have a contract to modernize the UIA's computer system by April 11, 2011, was eliminated. (Sec. 332)
10. Report on MARVIN usage. A section requiring quarterly reports on MARVIN usage was eliminated. (Sec. 333)
11. MIOSHA Report on Injuries/Fatalities. A section requiring an annual report on the number of individuals hurt or killed on the job was eliminated. (Sec. 340)
12. Ergonomics Standards Prohibition. A section forbidding spending on ergonomics rules was eliminated. (Sec. 341)
13. Low-Income Energy Efficiency Program. Sections requiring May 1 and October 1 deadlines on this program and an accompanying report were eliminated. (Sec. 361[1]&[2])
14. Licensing and Regulatory Reports. A section requiring a report on licensing and regulation activities in the Bureau of Commercial Services and Bureau of Construction Codes was eliminated. (Sec. 368)
15. Liquor Law Enforcement Grant Reports. A section requiring annual reports from municipalities receiving these grants was eliminated. (Sec. 370)
16. Bootlegging Coordination. Language requiring the Liquor Control Commission (LCC) to coordinate anti-bootlegging activities in the state, as well as an accompanying report, was eliminated. (Sec. 371)
17. Vocational Rehabilitation Local Match Limit. Language limiting local match requirements for vocational rehabilitation facilities establishment grants to 21.3% was eliminated. (Sec. 603)
18. Centers for Independent Living Funding. Language requiring funding in Part 1 for Independent Living be used for Centers for Independent Living was removed. (Sec. 604)
19. Youth Low-Vision Payer of Last Resort. A section requiring other sources of funding be exhausted prior to using this appropriation was eliminated. (Sec. 612)
20. King-Chavez-Parks Programs. A spending limit of $100,000 on this program was eliminated. (Sec. 701)
21. Work First and JET Longitudinal Study. Language requiring a 3-year study on Work First and JET participants was eliminated. (Sec. 802)
22. Michigan Works! Veteran Services. Language containing various veteran-related requirements for Michigan Works! Agencies (MWAs) was eliminated. (Sec. 811)
23. Focus: HOPE Earmark. Funding earmarked for the Focus: HOPE program was eliminated. (Sec. 816)
24. No worker Left Behind Reports. A section with reporting requirements for this program was eliminated. (Sec. 830)

Date Completed: 2-28-11 Fiscal Analyst: Josh Sefton Bill Analysis @ http://www.senate.michigan.gov/sfa This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hileg_gr.doc.doc