FY 2002-03 AGRICULTURE BUDGET - H.B. 5642 (S-1): SENATE-PASSED

House Bill 5642 (S-1as passed by the Senate)

Committee: Appropriations

FY 2001-02 Year-to-Date Gross Appropriation $99,041,700
Changes from FY 2001-02 Year-to-Date:
1. Animal Health Diagnostic Lab. The House added $1,000 for operation costs of this lab. The Senate added $3.0 million ($1.5 million GF/GP and $1.5 million IDG from Community Health). 3,000,000
2. Cooperative Extension Service. The House added $1,000 place holder for this program. The Senate added $4.0 million GF/GP. 4,000,000
3. Agriculture Experiment Station. The House added $1,000 place holder for this program. The Senate added $4.0 million GF/GP. 4,000,000
4. Agriculture Equine Industry Development Fund (AEIDF). The Governor and House reduced funding for various equine-related programs from the Agriculture Equine Industry Development Fund by 7% to reflect annual revenue estimates. Support to the Office of Racing Commissioner (ORC) 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 line, and restored the proposed ORC cuts. 513,400
5. Bovine TB. The House restored funding ($1,016,600) that was redirected to cover Michigan State Fair over-expenditures in FY 1999-2000. The Senate added $100. 100
6. Export Market Development. The House increased funding for this by $100,000. The Senate created a new line for this program and added $100,100. 100,100
7. Place Holders. The House included $1,000 for the following items: Conservation Districts, Migrant Labor Housing, NW MI Research Station, Orchard/Vineyard Removal, and Grown in MI. The Senate added $100 items of difference for each item except Conservation Districts. 5,400
8. Unclassified Salaries. The budget includes a 2% increase for unclassified positions. 9,700
9. Economic Adjustments. Standard economic adjustments are applied. 820,200
10. Other Adjustments. The budget includes a reduction of $123,400 to reflect the end of the required payouts associated with the 1997 early retirement program, changes to reflect available restricted revenue, new pesticide fee revenue of $60,000, $1.1 million Federal for the laboratory program, $900,000 reduction for Michigan State Fair, $325,000 administrative efficiencies in Market Development program, and staff reductions to fund economics, and elimination of GF/GP support ($167,900) for the Upper Peninsula State Fair. The Senate added $150,000 for Food Bank, $76,700 for Horse Shows, $50,000 for open space easements payments, $60,000 for fairs and festivals promotion, ($100) for early retirement savings, and restored the UP State Fair funding. (1,126,200)
11. Comparison to Governor's Recommendation. $12,910,100 Gross and $10,050,100 GF/GP over the Governor's Recommendation.
Total Changes $11,322,700
FY 2002-03 Senate Gross Appropriation $110,364,400


FY 2002-03 AGRICULTURE BUDGET - BOILERPLATE HIGHLIGHTS
Changes from FY 2001-02 Year to Date:
1. Standard Sections. The bill contains all the standard sections: State spending (201), Management and Budget Act (202), definitions (203), civil service billing (204), hiring freeze (205), contingency funds (206), privatization (207), Internet (208), buy American (209), deprived communities (210).
2. Deleted Sections. The bill deletes the following current-year sections: report retention (217), program reports (218), budgetary savings (219), 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. Indemnification. The Senate added language to require indemnification payments for animals killed by coyotes. (Sec. 212)
4. Information Technology (IT) User Charges. The House included language to require the Department to pay user fees to the Department of Information Technology. The Senate concurred. (Sec. 219)
5. IT Work Projects. The House included language to authorize information technology funding to be designated as work projects. The Senate concurred. (Sec. 220)
6. Early Retirement. The House included language to give hiring priority to food and animal inspection positions as a result of early retirement. The Senate did not include this section. (Sec. 221)
7. Legislative Contact. The House included language prohibiting disciplinary action from being taken against an employee that contacts the Legislature. The Senate did not include this section. (Sec. 222)
8. Early Retirement Savings. The Senate included language to distribute the savings from the 2002 early retirement program by November 15, 2002. (Sec. 223)
9. Animal Health Diagnostic Lab. The Senate added language to restrict the funds received from the Department of Community Health for operations of the lab related to testing for biological agents of mass destruction. (Sec. 304)
10. Local Public Health Funding. The House eliminated language requiring the Department, with the Department of Community Health, to have a process in place that requires a local unit of government to obtain prior approval from the Department before any reallocation or redistribution of program funds. The Senate retained this section. (Sec. 403)
11. Whole Herd Testing. The House included language to require the Department to pay for all whole herd testing necessary to achieve and maintain split-state status. The Senate concurred. (Sec. 451)
12. Simulcast Revenue. The House eliminated language requiring a monthly report on simulcast revenue. The Senate restored this language. (Sec. 801)
13. Michigan Festivals. The House included language to allocate funding to Michigan festivals contingent on 100% cash or in-kind match. The Senate did not include this section. (Sec. 810)
14. Competitive Horse Show Grant. The House eliminated language requiring the Department to implement a competitive horse show grant program. The Senate concurred. (Sec. 814)
15. Race Meets at County Fairs. The Senate reduced the amount from $50,000 to $25,000. (Sec. 815)
16. Fairs and Festivals Promotion. The Senate added language to allocate $60,000 for grants to the industry for Statewide volunteer staff education and promotion of commodities. (Sec. 816)
17. Horse Shows. The Senate added language to allocate $100,000 for grants to national and/or international equine events at MSU. (Sec. 817)

Date Completed: 5-20-02 - Fiscal Analyst: Craig Thiel