FY 2002-03 AGRICULTURE BUDGET - H.B. 5642 (P.A. 516 of 2002): ENACTED WITH VETOES

FY 2001-02 Year-to-Date Gross Appropriations $100,466,700
Changes from FY 2001-02 Year-to-Date:
Items Included by the House and Senate
1. Unclassified Salaries. 9,700
2. Economic Adjustments. 820,200
3. Other Changes. The budget includes a reduction of $123,400 to reflect the end of 1997 early retirement payouts, changes to reflect available restricted revenue, new pesticide fee revenue, $1.1 million Federal for laboratory program, $900,000 reduction to the Michigan State Fair, and $325,000 administrative efficiencies in market development program. (2,780,400)
Conference Agreement on Items of Difference
4. Animal Health Diagnostic Lab. The House added $1,000 for operations of the lab. The Senate added $3.0 million ($1.5 million GF/GP and $1.5 million IDG from Community Health). The Conference Committee report does not include funding. 0
5. Agriculture Experiment Station/Cooperative Extension Service. The House added $1,000 each for these two programs at Michigan State University. The Senate added $4.0 million GF/GP each for these programs. The Conference Committee report does not include funding. 0
6. Agriculture Equine Industry Development Fund (AEIDF). The House reduced funding for various AEIDF-funded programs by 7% to reflect revenue availability. Support for the Office of Racing Commissioner was reduced by $105,800. The Senate added $1.3 million in casino revenue to the ORC and redistributed an equal amount of AEIDF revenue to various horse programs, added a new quarterhorse program, and restored ORC funding. The Conference Committee report concurs with the Senate.

* The Governor vetoed the funding for thirteen horse racing programs funded from the AEIDF and the funding for the ORC from the AEIDF and casino revenue.

 (13,627,600)
7. Bovine TB. The House restored $1,016,600 that was redirected to cover Michigan State Fair over-expenditures in FY 1999-2000. The Senate provided $100. The Conference Committee report does not include funding. 0
8. Early Retirement Savings. The Conference Committee report reflects savings from the 2002 early retirement program, to be applied via legislative transfers. (1,315,500)
9. Budgetary Savings. The Conference Committee report reflects budgetary savings, to be applied via legislative transfers. (408,000)
10. Other Adjustments. The House included $1,000 place holders for a number of programs. The Senate added $100 to these items. The Senate restored the proposed $167,900 cut to the UP State Fair and increased horse show funding. The Conference Committee report does not provide funding for these programs. The Senate added $60,000 for fair and festival promotion and $50,000 for open space development payments. The Conference Committee report includes these restricted revenue adjustments.

* The Governor vetoed the funding for the fair and festival promotion and open space development payments.

 0
Total Changes ($17,301,600)
FY 2002-03 Enacted Gross Appropriation $83,165,100
*Vetoed by the Governor
FY 2002-03 AGRICULTURE - BOILERPLATE HIGHLIGHTS
Changes from FY 2001-02 Year-to-Date:
Items Included by the House and Senate
1. Standard Sections. The Conference Committee report contains all the standard sections. State spending (201), Management and Budget Act (202), definitions (203), civil service billings (204), hiring freeze (205), contingency funds (206), privatization (207), Internet (208), buy American (209), deprived communities (210), IT user charges (219), and IT work projects (220).
2. Deleted Sections. The Conference Committee report deletes the following current-year sections: report retention (217), program reports (218), State Fair manager (220), turkey growers (221), rural development council (222), HACCP report (403), disease and pest intervention fund (502), MEDC liaison (706), sunset coast growers (708), ORC move (902), industry competitiveness report (903), and ORC complaints (904).
3. Whole Herd Testing. The Conference Committee report includes new language recommended by the House to require the Department to pay for all testing necessary to achieve and maintain split-state status. (Sec. 451)
Conference Agreement on Items of Difference
4. Indemnification Payments. The Senate added language to require indemnification payments for animals killed by coyotes. The Conference Committee concurs with the Senate. (Sec. 212)
5. Cigarette Tax Increase. The Conference Committee report includes new language to restore cuts to the local conservation districts ($488,600), food bank ($158,200), and horse shows ($23,300) contingent on at least a 30 cents per pack cigarette tax increase. (Sec. 225)
6. Open Space Development Rights Payments. The Conference Committee report includes new language recommended by the Senate to designate funds to reimburse local units of government for lost revenues associated with open space development rights easements. (Sec. 605)

* The Governor vetoed this section.

Date Completed: 07-30-02 - Fiscal Analyst: Craig Thiel