FY 2011-12 HUMAN SERVICES BUDGET S.B. 179 (CR-1): CONFERENCE REPORT


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Amount Over/(Under) GF/GP Target: ($0)
FY 2010-11 Year-to-Date Gross Appropriation $6,948,915,700
Changes from FY 2010-11 Year-to-Date:
  Items Included by the Senate and House
1. One-Time Revenues and Fund Shifts. The Senate and House concurred with the Governor's proposed readjustments, including the loss of one-time Federal funding. (12,760,700)
2. Increases in the Child Welfare Program. The Senate and House concurred with the Governor's proposed spending in the Child Welfare unit for the CRI settlement. 73,996,800
3. FIP 48-Month Time Limit. The Senate and House concurred with the Governor's plans to set a maximum time limit for cash assistance. (77,400,000)
4. Program Increases and Reductions. The Senate and House concurred with several of the Governor's program cuts, including JET-Plus and Zero to Three. Both agreed to increases, including Federal grants and outstationed eligibility workers. (30,896,000)
5. Economic Adjustments. Senate/House recognized Gov.'s recommended economic adjustments. 19,102,700
6. Other Changes. The Senate and House rejected the Governor's recommended line-item roll-ups. Both also agreed to the Governor's other proposed changes in staff reductions. (15,949,800)
Conference Agreement on Items of Difference
7. Family Independence Program. The Senate concurred with the House plans to reduce the FIP clothing allowance, to increase the Earned Income Disregard and to recognize savings from new program sanctions, which are in addition to the Governor's changes. (7,371,000)
8. Disability Assistance. The Senate and House reduced the monthly payment for State Disability Assistance from $269 to $200 for new applicants and rejected the Governor's 7.0 new FTEs. (5,349,900)
9. Child Development and Care. The Senate and House reduced program funding to CDC and the ECIC. The amount shown includes the Governor's adjustments. An interdepartmental grant was provided to the background check in LARA through part of the hourly cut. (27,159,200)
10. Juvenile Justice Facilities. The Senate and House agreed with an alternative proposal to keep Shawono Center open and to reduce funding for all three facilities. The funding change represents a reduction from the FY 2010-11 spending plan. (2,224,800)
11. Adoption Services and Subsidies. The Senate and House increased adoption service provider rates by an additional 15%, and provided provisions for families with special needs children to receive subsidies. 9,263,300
12. Other Senate Proposals. The House agreed to changes in addition to the Governor to reduce indigent burial, to maintain Family Preservation, Michigan 2-1-1, SER, and Employment and Training, and to grant $100,000 to the Chaldean Community Foundation. (4,809,200)
13. Other House Proposals. The Senate agreed to maintain funding for volunteer reimbursements, other staffing, MCSC, and other standard administrative functions, as well as to reject the Governor's proposed $25 child support fee and to increase the OIG. (1,257,900)
14. Caseload Consensus. The Conference proposal includes the May caseload adjustments. (34,395,100)
Total Changes ($117,210,800)
  FY 2011-12 Conference Report Gross Appropriation $6,831,704,900
FY 2011-12 HUMAN SERVICES BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2010-11 Year to Date:
  Items Included by the Senate and House
1. General Sections. Both the Senate and House included standard boilerplate language and language that leadership had requested, including language to recognize the FY 2012-2013 anticipated appropriation. (Sec. 201, 202, 203, 206, 207, 208, 209, 211, 212, 214, 228, 229, 1201)
2. Retention of Current Law. The Senate and House both retained multiple sections of boilerplate from the current budget, some with minor revisions. (Sec. 204, 274, 508(1 and 5), 588, 708(1), 717)
3. Elimination of Current Law. The Senate and House concurrently agreed to strike several sections of boilerplate from the current budget. (Sec. 295, 505, 514)
Conference Agreement on Items of Difference
4. General Agreement. The House concurred with Senate decisions on 99 boilerplate issues and the Senate concurred with the House on 90 items. Some outstanding differences were resolved with revised or new language.
5. FIP Clothing Allowance. The Senate concurred with the House allocation of $2,880,000 and eliminated language requiring a clothing voucher program. (Sec. 669)
6. FAP Eligibility for Felons. The Senate agreed with House language to restrict eligibility for drug felons with multiple convictions pending Federal authorization. (Sec. 619)
7. Indigent Burial. The House concurred with new Senate language that limits reimbursements to cases when the deceased has not been claimed. (Sen. 613)
8. Eligibility Privatization. The Senate and House revised Senate language to require the Department to create a work group to review Medicaid eligibility privatization. Privatization of day care eligibility was removed. (Sec. 620 & 674)
9. Child Support Fees. The Senate concurred with the House to reject the Governor's $25 child support fee increases, and eliminated language to allow employers to charge a $2 fee processing fee (Sec. 10-304 & 912)
10. Child Development and Care. New. Child care payments were revised to reflect new hourly reductions and improvements in the error rate, and eliminated language on the Great Start Collaboratives. (Sec. 680)
11. State Emergency Relief and Energy Programs. New. Required the Department to develop a work group to identify the most efficient way to allocate state emergency relief and energy assistance. (Sec. 1103)
12. State Disability Assistance. The Senate concurred with the House eligibility requirements for SDA so that caregivers and those who were not SSI eligible could receive benefits. (Sec. 604)
13. Adoption and Foster Care. New. Allocated $4,250,000 to allow adoptive parents to claim subsidies for special needs children up to a year after an adoption has been finalized. (Sec. 556)
14. FIP Income Disregard. The Senate agreed with the House to increase the disregard. (Sec. 651)
15. Elder Law of Michigan. The Senate concurred with the House to reinstate program funding. (Sec. 423)
16. Supervisor-to-Staff Ratios. Senate language was revised to require the Department to work toward a 1:12 supervisor-to-staff ratio. (Sec. 298)
17. SACWIS. New. Department language to designate matching funding for IT improvements. (Sec. 294)
18. TANF Contingency Funding. New. Language required the Department to use TANF contingency to increase the FIP earned income disregard or to reform policies to improve the State's work participation rate. (Sec. 231)
19. Employment Training and Services Policy. New. Required the Department to reduce fraud in car repairs and purchases. (Sec. 425)
20. Juvenile Justice Secure Treatment Privatization. New. Required the Department to develop a work group to study the feasibility of contracting out secure treatment beds. (Sec. 724)

Date Completed: 5-23-11 Fiscal Analyst: Frances Carley Bill Analysis @ http://www.senate.michigan.gov/sfa This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hidhs_cr.doc