FY 2013-14 SUPPLEMENTAL S.B. 608 (S-3):
SUMMARY OF SUBSTITUTE BILL
IN COMMITTEE
Senate Bill 608 (Substitute S-3)
Sponsor: Senator Roger Kahn, M.D.
CONTENT
The bill would provide supplemental appropriations for fiscal year (FY) 2013-14. The bill includes negative Adjusted Gross appropriations of $176.4 million and General Fund/General Purpose (GF/GP) appropriations of $262.2 million, primarily to reflect the technical adjustments ($455.4 million negative Adjusted Gross, $73.3 million positive GF/GP) in the Departments of Community Health and Corrections related to the delay in the expansion of Medicaid. In addition, the bill contains $27.0 million of GF/GP appropriations recommended by the State Budget Office (SBO) for various departments. Also recommended by the Governor and included in the bill is a $26.4 million GF/GP reduction to recognize savings from the refinancing of State Building Authority bonds. In addition, there are $188.3 million of legislatively initiated GF/GP appropriations for various departments, but these do include $114.5 million in the Department of Community Health to offset the shortfall in Health Insurance Claims Assessment revenue. Table 1 summarizes the appropriations in the bill.
Table 1
|
Department/Program |
Adjusted Gross |
Federal |
Restricted & Private |
GF/GP |
|
Community Health |
($388,887,800) |
($489,589,700) |
($113,291,000) |
$213,992,900 |
|
Corrections |
14,671,800 |
0 |
0 |
14,671,800 |
|
Education |
16,086,000 |
5,286,000 |
0 |
10,800,000 |
|
Environmental Quality |
50,000 |
0 |
0 |
50,000 |
|
Human Services |
30,612,300 |
20,475,200 |
2,937,100 |
7,200,000 |
|
Judiciary |
1,400,000 |
650,000 |
0 |
750,000 |
|
Licensing & Reg. Affairs |
0 |
0 |
0 |
0 |
|
Military & Vets Affairs |
17,560,000 |
0 |
0 |
17,560,000 |
|
Natural Resources |
6,460,000 |
1,500,000 |
410,000 |
4,550,000 |
|
State |
617,000 |
0 |
0 |
617,000 |
|
State Police |
7,660,000 |
3,350,000 |
2,000,000 |
2,310,000 |
|
Tech., Man., Budget |
(26,699,100) |
0 |
(699,100) |
(26,000,000) |
|
Transportation |
118,328,900 |
9,383,100 |
102,345,800 |
6,600,000 |
|
Treasury-Operations |
13,699,100 |
0 |
12,199,100 |
1,500,000 |
|
Treasury-Strategic Fund |
12,091,000 |
0 |
4,501,000 |
7,590,000 |
|
Total |
($176,350,800) |
($448,945,400) |
$10,402,900 |
$262,191,700 |
FISCAL IMPACT
The bill would decrease FY 2013-14 Adjusted Gross State appropriations by $176.4 million and increase GF/GP appropriations by $262.2 million. The bill also appropriates $102.0 million of the $115.0 million available in the Roads and Risks Reserve Fund (RRRF), for winter road maintenance ($100.0 million) and for municipal aid to mitigate the damage due to the December 2013 ice storm ($2.0 million). The bill includes funding for 15 budget areas. Table 2 summarizes the details of those appropriations.
BOILERPLATE LANGUAGE SECTIONS
Sec. 201. General. Records amount of total State spending and payments to local units of government.
Sec. 202. General. Subjects appropriations and expenditures in the bill to the provisions of the Management and Budget Act.
Sec. 301. Community Health. Requires the Department to make a disproportionate share payment of $19,989,600 for continued support to a hospital that is dedicated to infant mortality prevention and is a National Institutes of Health perinatology research branch designee (Harper/Hutzel Hospital).
Sec. 302. Community Health. Requires the Department to report by April 1, 2014, on the estimated amount of funding necessary for community mental health services programs that continue the identical level of services to non-Medicaid-eligible individuals that was provided before the implementation of Public Act 107 of 2013 (Medicaid reform).
Sec. 303. Community Health. Prohibits the expenditure of any funds from medical services administration for outreach or education for the Healthy Michigan Plan.
Sec. 351. Education. Allocates the $5.1 million appropriated for "dissolved school district costs" for reimbursements to receiving school districts, or the respective intermediate school district, for costs associated with the transfer of property from a dissolved school district to a receiving school district; defines terms; and creates a work project appropriation.
Sec. 352. Education. Allocates the $3.9 million appropriated for "information technology education" for a public-private partnership with a single provider; establishes criteria for the partnership and for the competitive request for proposals process; and creates a work project appropriation.
Sec. 353. Education. Allocates the $1.8 million appropriated for a "health and nutrition education software platform" for a contract with a single provider to provide secure personal user health and nutrition data for all public K-12 pupils; establishes criteria for the platform and for the competitive request for proposals process; and creates a work project appropriation.
Sec. 401. Human Services. Requires the Department to allocate $250,000 for a three-year contract to establish a pilot program with a Detroit-based nonprofit agency to serve 25 youths who are aging out of the foster care system, and to provide a report on the progress of the pilot project by September 30, 2014.
Sec. 402. Human Services. Requires the Department to allocate $750,000 for college scholarships for youths who were in foster care because of abuse and neglect, and to distribute the scholarships through the Fostering Futures Scholarship that is part of the Michigan Education Trust.
Sec. 403. Human Services. Requires the Department to pay 100% of the administrative rate for all new cases referred to providers of foster care services during FY 2013-14.
Sec. 404. Human Services. Requires the Department, on a one-time basis only, to allocate $200,000 from the adoption support services line item to the adoptive family support network (also known as the parent-to-parent program) to provide guidance and community connections to adoptive parents and children.
Sec. 405. Human Services. Requires the allocation of $7.0 million from the Federal Low-Income Home Energy Assistance Program for deliverable fuels assistance payments.
Sec. 406. Human Services. Provides parameters for the use of deliverable fuels crisis assistance payments.
Sec. 501. Licensing and Regulatory Affairs. Provides parameters for the Department's administration of grants under the Michigan Medical Marihuana Act.
Sec. 551. Military and Veterans Affairs. Requires the appropriation for the Michigan Veterans Affairs Agency to be used for the expansion of the veterans' service delivery initiative and to increase direct advocacy for veterans in the State.
Sec. 601. Natural Resources. Authorizes an accounting adjustment to close out the FY 2006-07 work project for a Trenton, Michigan, city marina.
Sec. 651. State Police. Establishes the Federal FirstNET appropriation of $3,350,000 as a work project.
Sec. 652. State Police. Allocates $2.0 million from support services to municipalities to mitigate tree-related damage and debris due to the ice storm of December 22 and 23, 2013.
Sec. 701. Transportation. Requires the Department to allocate $3.0 million to expand a project to enhance rail grade crossing safety systems and to use a Michigan-based company as the traffic control system manufacturer.
Sec. 702. Transportation. Requires the funds appropriated for special winter road maintenance to be distributed to the State Trunkline Fund, county road commissions, and cities and villages, in the same percentages described in Public Act 51 of 1951, and requires distribution to each entity in amounts proportional to the current year amounts distributed from the State Trunkline Fund.
Secs. 801, 802, and 803. Treasury. Transfer existing State Building Authority boilerplate language from the Department of Technology, Management, and Budget to reflect the transfer of the Authority to the Treasury Department.
Sec. 804. Treasury-Strategic Fund. Requires the $340,000 appropriation for precollege engineering to be allocated to the Detroit Precollege Program in Engineering and Sciences, which received an appropriation under Public Act 156 of 2005.
Sec. 805. Treasury-Operations. Reappropriates up to $3,885,800 from unspent and unencumbered funds in accounts appropriated for tax plan implementation, for tax processing and Treasury operations information technology services.
Sec. 806. Treasury-Strategic Fund. Conditions appropriations for blight elimination and the home affordable refinance program upon action by the State Budget Director to lapse the work project originally established for the home affordable refinance program.
Sec. 807. Treasury-Strategic Fund. Creates a work project appropriation for the blight elimination and home affordable refinance programs funded under this bill; requires that funds support individuals and communities impacted by the foreclosure crisis; and directs all amounts financed by the Homeowner Protection Fund that have not been spent by September 30, 2016, be expended for blight elimination activities overseen by the Michigan State Housing Authority.
Enacting Section 1. State Building Authority. Repeals Sections 840, 841, and 843 of the FY 2013-14 General Government budget (Public Act 59 of 2013, Article VIII) to reflect the transfer of the Authority from the Department of Technology, Management, and Budget to the Department of Treasury.
Enacting Section 2. Foster Care. Repeals Sections 522 and 589 of the FY 2013-14 Department of Human Services budget (Public Act 59 of 2013, Article X) to reflect the changes contained in this bill for youth-in-transition programs and foster care private agency administrative rates, in Sections 401 and 403, respectively.
Enacting Section 3. Michigan Medical Marihuana Act. Repeals Section 728 of the FY 2013-14 Department of Licensing and Regulatory Affairs budget (Public Act 59 of 2013, Article XIII) to reflect the new administrative language contained in this bill in Section 501.
Fiscal Analyst: Ellen Jeffries
Steve Angelotti
S1314/s608sc
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.
Table 2
|
Senate Bill 608 (S-3): FY 2013-14 Supplemental Recommendations |
||||
|
|
Governor's Recommendation |
Senate Recommendation |
||
|
Department/Program |
Adj. Gross |
GF/GP |
Adj. Gross |
GF/GP |
|
Capital Outlay |
|
|
|
|
|
Construction authorizations for SVSU, Kalamazoo Valley, |
|
|
|
|
|
Macomb, Muskegon, Southwestern @ $100................... |
$500 |
$500 |
$0 |
$0 |
|
Cotton correctional facility conversion planning grant............ |
100,000 |
100,000 |
0 |
0 |
|
Total Capital Outlay |
$100,500 |
$100,500 |
$0 |
$0 |
|
|
|
|
|
|
|
Community Health |
|
|
|
|
|
Medicaid expansion adjustments....................................... |
($455,377,400) |
$65,260,300 |
($455,377,400) |
$65,260,300 |
|
Medicaid base adjustments.............................................. |
(256,945,300) |
22,425,200 |
0 |
0 |
|
HICA revenue shortfall.................................................... |
0 |
0 |
0 |
114,500,000 |
|
Outpatient uncompensated DSH pool increase..................... |
19,000,000 |
0 |
19,000,000 |
0 |
|
Community mental health funding increase......................... |
0 |
8,018,000 |
25,000,000 |
25,000,000 |
|
Infant mortality research and treatment center................... |
0 |
0 |
19,989,600 |
6,732,600 |
|
Hospice services............................................................ |
0 |
0 |
2,500,000 |
2,500,000 |
|
Total Community Health............................................... |
($693,322,700) |
$95,703,500 |
($398,887,800) |
$213,992,900 |
|
|
|
|
|
|
|
Corrections |
|
|
|
|
|
Medicaid expansion adjustments....................................... |
$8,070,700 |
$8,070,700 |
$8,070,700 |
$8,070,700 |
|
Adjust substance abuse funds re Medicaid expansion............ |
6,601,100 |
6,601,100 |
6,601,100 |
6,601,100 |
|
Total Corrections......................................................... |
$14,671,800 |
$14,671,800 |
$14,671,800 |
$14,671,800 |
|
|
|
|
|
|
|
Education |
|
|
|
|
|
Early childhood program enhancements............................. |
$5,286,000 |
$0 |
$5,286,000 |
$0 |
|
Grants for school districts' dissolution costs........................ |
0 |
0 |
5,100,000 |
5,100,000 |
|
Public/private partnerships for IT education issues............... |
0 |
0 |
3,900,000 |
3,900,000 |
|
Health/nutrition education software platform contract........... |
0 |
0 |
1,800,000 |
1,800,000 |
|
Total Education........................................................... |
$5,286,000 |
$0 |
$16,086,000 |
$10,800,000 |
|
|
|
|
|
|
|
Environmental Quality................................................. |
|
|
|
|
|
Beach/water quality monitoring program............................ |
$0 |
$0 |
$50,000 |
$50,000 |
|
Total Environmental Quality......................................... |
$0 |
$0 |
$50,000 |
$50,000 |
|
|
|
|
|
|
|
Executive |
|
|
|
|
|
Office for New Americans............................................... |
$170,000 |
$170,000 |
$0 |
$0 |
|
Total Executive........................................................... |
$170,000 |
$170,000 |
$0 |
$0 |
|
|
|
|
|
|
|
Human Services |
|
|
|
|
|
Low-income home energy assistance program.................... |
$22,912,300 |
$0 |
$22,912,300 |
$0 |
|
Deliverable fuels crisis assistance..................................... |
0 |
0 |
4,000,000 |
4,000,000 |
|
Foster care child placing agency administrative rate............. |
2,500,000 |
2,500,000 |
2,500,000 |
2,500,000 |
|
Human Services (continued) |
|
|
|
|
|
Fostering futures scholarships ($600,000 TANF).................. |
0 |
0 |
0 |
0 |
|
Disability determination services staff increase.................... |
500,000 |
0 |
500,000 |
0 |
|
Michigan Community Services Commission......................... |
350,000 |
350,000 |
0 |
0 |
|
Youth-in-transition pilot program....................................... |
0 |
0 |
250,000 |
250,000 |
|
Arab American Chaldean Council refugee services................ |
0 |
0 |
250,000 |
250,000 |
|
Parent-to-parent program............................................... |
200,000 |
0 |
200,000 |
200,000 |
|
Caseload adjustments.................................................... |
(422,056,200) |
(19,777,000) |
0 |
0 |
|
Total Human Services.................................................. |
($395,593,900) |
($16,927,000) |
$30,612,300 |
$7,200,000 |
|
|
|
|
|
|
|
Judiciary |
|
|
|
|
|
Implement Michigan Indigent Defense Commission............... |
$750,000 |
$750,000 |
$750,000 |
$750,000 |
|
Federal funding for drug treatment courts.......................... |
650,000 |
0 |
650,000 |
0 |
|
Total Judiciary............................................................ |
$1,400,000 |
$750,000 |
$1,400,000 |
$750,000 |
|
|
|
|
|
|
|
Licensing and Regulatory Affairs |
|
|
|
|
|
Delphi bankruptcy workers compensation........................... |
$8,000,000 |
$8,000,000 |
$0 |
$0 |
|
Replace tax credit with compensation supplement fund......... |
1,000,000 |
1,000,000 |
0 |
0 |
|
Positive/negative appropriation for medical marijuana.......... |
0 |
0 |
yes |
yes |
|
Total Licensing and Regulatory Affairs.......................... |
$0 |
$0 |
$0 |
$0 |
|
|
|
|
|
|
|
Military and Veterans Affairs |
|
|
|
|
|
Armory maintenance...................................................... |
$0 |
$0 |
$15,800,000 |
$15,800,000 |
|
Expand veterans' service delivery initiative......................... |
2,000,000 |
2,000,000 |
560,000 |
560,000 |
|
Grand Rapids veterans' home cooling system...................... |
1,200,000 |
1,200,000 |
1,200,000 |
1,200,000 |
|
Total Military and Veterans Affairs............................... |
$3,200,000 |
$3,200,000 |
$17,560,000 |
$17,560,000 |
|
|
|
|
|
|
|
Natural Resources |
|
|
|
|
|
Cascades Falls restoration/renovation project..................... |
$0 |
$0 |
$2,000,000 |
$2,000,000 |
|
Munising bayshore marina............................................... |
1,500,000 |
0 |
1,500,000 |
0 |
|
Local infrastructure improvements.................................... |
330,000 |
0 |
330,000 |
0 |
|
Fort Holmes on Mackinac Island restoration project.............. |
0 |
0 |
250,000 |
250,000 |
|
South Higgins State Park improvements............................. |
80,000 |
0 |
80,000 |
0 |
|
Kawkawlin dredging project............................................. |
0 |
0 |
2,300,000 |
2,300,000 |
|
Total Natural Resources.............................................. |
$1,910,000 |
$0 |
$6,460,000 |
$4,550,000 |
|
|
|
|
|
|
|
State |
|
|
|
|
|
ExpressSOS media campaign........................................... |
$300,000 |
$300,000 |
$300,000 |
$300,000 |
|
Electronic processing of interlock violations......................... |
200,000 |
200,000 |
200,000 |
200,000 |
|
Reimbursement for late filing fees per PA 277 of 2012......... |
117,000 |
117,000 |
117,000 |
117,000 |
|
Total State.................................................................. |
$617,000 |
$617,000 |
$617,000 |
$617,000 |
|
|
|
|
|
|
|
State Police |
|
|
|
|
|
FirstNET Federal grant.................................................... |
$3,350,000 |
$0 |
$3,350,000 |
$0 |
|
Match funds for Federal disaster relief for 18 counties......... |
2,310,000 |
2,310,000 |
2,310,000 |
2,310,000 |
|
Municipal aid for December ice storm damage (RRRF).......... |
0 |
0 |
2,000,000 |
0 |
|
Total State Police........................................................ |
$5,660,000 |
$2,310,000 |
$7,660,000 |
$2,310,000 |
|
|
|
|
|
|
|
Technology, Management, and Budget |
|
|
|
|
|
Enhance Michigan.gov portal............................................ |
$6,000,000 |
$6,000,000 |
$0 |
$0 |
|
Construction debt service for five higher education projects.. |
2,464,700 |
2,464,700 |
0 |
0 |
|
UAW professional development fund: $720,000 IDG............. |
yes |
0 |
yes |
0 |
|
MiResults performance metrics project.............................. |
700,000 |
700,000 |
0 |
0 |
|
Military retirement system prefunding............................... |
400,000 |
400,000 |
400,000 |
400,000 |
|
Military retirement system pension cost increase................. |
107,000 |
107,000 |
0 |
0 |
|
State Building Authority rent lapse.................................... |
(26,400,000) |
(26,400,000) |
(26,400,000) |
(26,400,000) |
|
Transfer State Building Authority to Treasury...................... |
(699,100) |
0 |
(699,100) |
0 |
|
Total Technology, Management, and Budget.................. |
($17,427,400) |
($16,728,300) |
($26,699,100) |
($26,000,000) |
|
|
|
|
|
|
|
Transportation |
|
|
|
|
|
Special winter road maintenance (RRRF)............................ |
$0 |
$0 |
$100,000,000 |
$0 |
|
Federal TIGER grant/match for rail improvements............... |
11,728,900 |
0 |
11,728,900 |
0 |
|
Enhance rail crossing safety............................................ |
0 |
0 |
3,000,000 |
3,000,000 |
|
Regional Transportation Authority admin funds.................... |
2,000,000 |
2,000,000 |
2,000,000 |
2,000,000 |
|
West Michigan Regional Airport passenger terminal.............. |
0 |
0 |
1,300,000 |
1,300,000 |
|
Beaver Island Boat Company one-time grant...................... |
300,000 |
300,000 |
300,000 |
300,000 |
|
Total Transportation.................................................... |
$14,028,900 |
$2,300,000 |
$118,328,900 |
$6,600,000 |
|
|
|
|
|
|
|
Treasury-Operations |
|
|
|
|
|
Convention facility tax revenue distribution......................... |
11,500,000 |
0 |
11,500,000 |
0 |
|
Allow credit/debit cards for individual income taxes.............. |
0 |
0 |
1,500,000 |
1,500,000 |
|
Transfer of State Building Authority from DTMB.................. |
699,100 |
0 |
699,100 |
0 |
|
Total Treasury-Operations........................................... |
$12,199,100 |
$0 |
$13,699,100 |
$1,500,000 |
|
|
|
|
|
|
|
Treasury-Strategic Fund |
|
|
|
|
|
Operating funds for Land Bank Fast Track Authority............. |
$1,750,000 |
$1,750,000 |
$1,750,000 |
$1,750,000 |
|
Public/private partnership for P20 education hub.................. |
0 |
0 |
5,500,000 |
5,500,000 |
|
Blight elimination (Homeowner Protection Fund)................... |
0 |
0 |
3,700,000 |
0 |
|
Home affordable refinance program (Homeowner Protection Fund) |
0 |
0 |
801,000 |
0 |
|
Detroit pre-college science and engineering program............ |
0 |
0 |
340,000 |
340,000 |
|
Total Treasury-Strategic Fund...................................... |
$1,750,000 |
$1,750,000 |
$12,091,000 |
$7,590,000 |
|
|
|
|
|
|
|
TOTAL SUPPLEMENTAL APPROPRIATIONS..................... |
($1,040,850,700) |
$92,417,500 |
($176,350,800) |
$262,191,700 |