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<TITLE>: ENACTED WITH VETOES (8-18-03) - FY 2003-04 NATURAL RESOURCES BUDGET</TITLE>

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<p>FY 2003-04 <a name="1"></a>NATURAL RESOURCES BUDGET - H.B. <a name="3"></a>4400 (P.A. 147 of 2003): ENACTED WITH VETOES</p>

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<td class="table1column1" width="81%" style="border-right: none; padding-top: 0.04in; border-left: none; border-top: 0.04in double #7f7f7f; border-bottom: 0.04in double #7f7f7f" valign="top"><p><span style="font-weight: bold">FY 2002-03 Year-to-Date Gross Appropriations<span>.&#160;.&#160;.&#160;.&#160;.&#160;.&a mp;#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&# 160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;. &#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.& ;#160;.&#160;.</span></span></p>

</td>

<td class="table1column2" width="19%" style="border-left: none; border-right: none; padding-top: 0.04in; border-top: 0.04in double #7f7f7f; border-bottom: 0.04in double #7f7f7f" align="right" valign="top"><p><span style="font-weight: bold">$267,021,747 </span></p>

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<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; padding-top: 0.04in; border-left: none; border-top: none" valign="top"><p><span style="font-weight: bold">Changes from FY 2002-03 Year-to-Date:</span></p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none; padding-top: 0.04in" align="right" valign="top"><p>&#160;</p>

</td>

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<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; padding-top: 0.04in; border-left: none; border-top: none" valign="top"><p><span style="text-decoration: underline">Items Included by the House and Senate</span></p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none; padding-top: 0.04in" align="right" valign="top"><p style="text-indent: 5.70833in; margin-left: -5.70833in">&#160;</p>

</td>

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<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; padding-top: 0.04in; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">&#160;1.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">State Park Operations. </span>The budget uses spending authority provided in Proposal

02-2 in August 2002 from the State Parks Endowment Fund ($6,000,000) and an

appropriation of $150,000 from the balance of the Park Improvement Fund to offset

the remaining General Fund support for State park operations</p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none; padding-top: 0.04in" align="right" valign="top"><p>0 </p>

</td>

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<tr>

<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; padding-top: 0.04in; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">&#160;2.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Economic Adjustments.</span> The budget includes economic adjustments for building

occupancy charges and workers&#8217; compensation.</p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none; padding-top: 0.04in" align="right" valign="top"><p>(54,000)</p>

</td>

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<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p><span style="text-decoration: underline">Conference Agreement on Items of Difference</span></p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p style="text-indent: 5.70833in; margin-left: -5.70833in">&#160;</p>

</td>

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<tr>

<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; padding-top: 0.03in; padding-bottom: 0.03in; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">&#160;3.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Purchased Land Payments in Lieu of Taxes.</span> <span style="font-family: 'Arial', sans-serif">The Governor proposes a new

formula for calculating these payments in lieu of taxes on DNR-owned land in which

the State will pay a flat rate of $2 per acre in place of the local property tax rate and

all payments will be made from the General Fund. </span>The House removes all of this

funding. The Senate restores the current year funding and makes baseline

adjustments to restricted funds. The Conference Committee retains only the

restricted funds increase from the Governor&#8217;s proposal.</p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none; padding-top: 0.03in; padding-bottom: 0.03in" align="right" valign="top"><p>(1,444,400)</p>

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<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; padding-top: 0.035in; padding-bottom: 0.035in; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">&#160;4.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Motor Vehicle Permit Fees.</span> The Governor proposes shifting the authority for

setting motor vehicle permit fees for State parks to the Natural Resources

Commission and raising the current fee levels. The Governor&#8217;s budget appropriates

additional fee revenue of $2,396,900 and reduces General Fund support of State

parks by an equal amount. The House rejects the Governor&#8217;s proposal. The Senate

includes the Governor&#8217;s fee increase and fund shift. The Conference Committee

concurs with the Senate.</p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none; padding-top: 0.035in; padding-bottom: 0.035in" align="right" valign="top"><p>0 </p>

</td>

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<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; padding-top: 0.04in; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">&#160;5.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Land Sale Fund. </span>The Conference Committee removes appropriations of

$2,640,200 from the Land Sale Fund pursuant to Attorney General Opinion #7132.

Restricted funds of $862,700 offset the reduction.</p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none; padding-top: 0.04in" align="right" valign="top"><p>(1,777,500)</p>

</td>

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<tr>

<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; padding-top: 0.04in; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">&#160;6.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Cooperative Resources Management Initiative. </span> The Senate added funding to

support a joint program of the Departments of Natural Resources and Agriculture for

private forest management. The Conference Committee concurs.</p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none; padding-top: 0.04in" align="right" valign="top"><p>600,000 </p>

</td>

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<tr>

<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; padding-top: 0.04in; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">&#160;7.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Federal Funding. </span>The budget includes a number of adjustments in Federal funds,

including a grant increase of $900,000 for fish marking and a grant reduction of

$3,933,000 for Land and Water Conservation grants that will be appropriated once

the allotment for the Department is determined. The Senate includes additional

Federal funds and 8.0 FTEs pursuant to a revised Executive recommendation. The

Conference Committee concurs.</p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none; padding-top: 0.04in" align="right" valign="top"><p>2,858,400 </p>

</td>

</tr>

<tr>

<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; padding-top: 0.04in; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">&#160;8.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Restricted Funding. </span> The budget includes a number of adjustments in State

restricted grant funds. The Senate makes additional changes to Restricted funds

to reflect a revised Executive recommendation, increases in snowmobile local

grants, the ORV safety grants, other changes in grant funding, and to create items

of difference. The Conference Committee concurs and removes items of difference

and funding for a watercraft noise study.</p>

</td>

<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none; padding-top: 0.04in" align="right" valign="top"><p>774,000 </p>

</td>

</tr>

<tr>

<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; padding-top: 0.04in; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">&#160;9.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Other Changes.</span> The budget makes adjustments for other issues, such as early

retirement savings, private grants, various General Fund reductions, and one-time

appropriations in FY 2002-03. The Conference Committee concurs.</p>

<p style="text-indent: -3.5in; margin-left: 3.5in"><i><span style="font-weight: bold">*<span>&#160;&#160;&#160;&#160;&#160;&#160; </span>The Governor vetoed $92,100 for the Big Rapids riverwalk, Bennett Arboretum,

and the Sebewaing Harbor Commission.</span></i></p>

</td>

<td class="table1column2" width="19%" style="border-left: none; border-right: none; border-top: none; padding-top: 0.04in" align="right" valign="top"><p>(13,827,247)</p>

</td>

</tr>

<tr>

<td class="table1column1" width="81%" style="border-right: none; border-left: none; border-top: none" valign="top"><p>Total Changes<span>.&#160;.&#160;.&#160;.&#160;.&#160;.&#1 60;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.& amp;#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.& #160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160; .&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&am p;#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#16 0;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&a mp;#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.</span ></p>

</td>

<td class="table1column2" width="19%" style="border-left: none; border-right: none; border-top: 0.0133333in solid" align="right" valign="top"><p>($12,870,747)</p>

</td>

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<td class="table1column1" width="81%" style="border-right: none; border-left: none; border-top: 0.04in double #7f7f7f; border-bottom: 0.04in double #7f7f7f" valign="top"><p><span style="font-weight: bold">FY 2003-04 Enacted Gross Appropriation<span>.&#160;.&#160;.&#160;.&#160;.&#160;.&am p;#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#16 0;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&a mp;#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.&# 160;.&#160;.&#160;.&#160;.&#160;.&#160;.&#160;.</span> </span></p>

</td>

<td class="table1column2" width="19%" style="border-left: none; border-right: none; border-top: 0.04in double #7f7f7f; border-bottom: 0.04in double #7f7f7f" align="right" valign="top"><p><span style="font-weight: bold">$254,151,000 </span></p>

</td>

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<tr>

<td class="table1column1" width="81%" style="border-right: none; padding-top: 0.04in; border-left: none; border-top: none; border-bottom: none" valign="top"><p><span style="font-weight: bold">* Vetoed by the Governor.</span></p>

</td>

<td class="table1column2" width="19%" style="border-left: none; border-right: none; border-top: none; border-bottom: none; padding-top: 0.04in" align="right" valign="top"><p>&#160;</p>

</td>

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<td class="table2column1" width="100%" style="border-left: none; border-right: none; border-top: none; border-bottom: 0.04in double #7f7f7f" valign="top"><p>FY 2003-04<a name="2"></a> NATURAL RESOURCES - BOILERPLATE HIGHLIGHTS</p>

</td>

</tr>

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<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p><span style="font-weight: bold">Changes from FY 2002-03 Year-to-Date:</span></p>

</td>

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<td class="table2column1" width="100%" style="border-bottom: none; padding-top: 0.04in; border-left: none; border-right: none; border-top: none" valign="top"><p><span style="text-decoration: underline">Items Included by the House and Senate</span></p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; padding-top: 0.03in; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">&#160;1.<span>&#160;&#160;&#160;&#160;</ span>The Governor eliminates and the House and Senate restore sections regarding privatization, buy American

intent, restricted fund balance report, grant and loan program report, Game and Fish Protection Fund

appropriations, administrative cost plan, habitat improvement and treatment report, Bovine TB report,

prohibition to impede water control structure certification, staff for timber marking, Adopt-a-Forest program,

snowmobile law enforcement grants, Federal land and water conservation funds, and ORV trail

improvements. (Sections 207, 209, 210, 212, 213, 215, 301, 501, 601, 802, 803, 901, 1103, and 1104)</p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; padding-top: 0.04in; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">&#160;2.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">FY 2002-03 Unexpended General Fund. </span> The Governor adds a section appropriating one half of

unreserved General Fund appropriations remaining from FY 2002-03 for the next fiscal year. The House

and Senate remove this section.</p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; padding-top: 0.04in; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">&#160;3.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Timber Marking for Harvest. </span> The House amends the current section to state that the Department shall

endeavor to increase the marking of hardwood timber by 10% over 2003. The Senate concurs. (Sec. 801)</p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; padding-top: 0.04in; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">&#160;4.<span>&#160;&#160;&#160;&#160;</ span>The Governor, House, and Senate all remove sections regarding NRC per diem, chronic wasting disease

study, Federal funds for the MI Civilian Conservation Corps, old growth forests, Federal forest

management, Environmental Protection Fund used for payments in lieu of taxes, and early retirement and

budgetary savings.</p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p><span style="text-decoration: underline">Conference Agreement on Items of Difference</span></p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; padding-top: 0.03in; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">&#160;5.<span>&#160;&#160;&#160;&#160;</ span>The Senate restores sections that are eliminated by the Governor and House regarding retention of

reports, activities of the MI State Waterways Commission, fish advisory information, report on construction

in State parks, and abandoned mine shaft emergencies. The Conference Committee concurs. (Sections

211, 214, 404, 703, and 804)</p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; padding-top: 0.03in; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">&#160;6.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Hiring Freeze. </span>The House removes this section that is proposed by the Governor. The Senate and

Conference Committee restore it. (Sec. 205)</p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; padding-top: 0.04in; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">&#160;7.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Information Technology User Fees.</span> The Governor includes a section requiring the Department to pay

user fees to the Department of Information Technology. The House removes this section and the Senate

retains it. (Sec. 217)</p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; padding-top: 0.04in; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">&#160;8.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Federal Advisory Report. </span>The Senate adds two sections regarding the reimbursement of the Game and

Fish Protection Fund. The first designates the appropriation in Part 1 as an appropriation from the General

Fund into the Game and Fish Protection Fund. The second section states that legislative transfers are

required to apply the negative appropriation for budgetary savings to specific line items. These same

sections are included for the appropriations in Part 1A for the balance of the reimbursement of the Game

and Fish Protection Fund in FY 2002-03. The Conference Committee combines the Senate sections. (Part

2, Sec. 1201; Part 2A, Sections 1301 and 1401)</p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; padding-top: 0.04in; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">&#160;9.<span>&#160;&#160;&#160;&#160;</ span><span style="font-weight: bold">Application and Transaction Fees.</span> The Governor adds a section authorizing the Department to set and

charge land transaction fees. The House removes this section. The Senate and Conference Committee

retain it. (Sec. 403)</p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; padding-top: 0.04in; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">10.<span>&#160;&#160;&#160;</span><span style="font-weight: bold">Land Transaction Report.</span> The House adds a section requiring a list of surplus property available for

public auction. The Senate and Conference Committee amend it to require a quarterly report on all land

transactions. (Sec. 405)</p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; padding-top: 0.04in; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">11.<span>&#160;&#160;&#160;</span><span style="font-weight: bold">Travel Report.</span> The Conference Committee creates a report on in-state and out-of-state travel. (Sec. 408)</p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; padding-top: 0.04in; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">12.<span>&#160;&#160;&#160;</span><span style="font-weight: bold">Wolf and Coyote Indemnification Payments. </span>The Senate amends current year language for the

Department to reimburse the Department of Agriculture for livestock indemnification payments. It adds

payments for livestock losses due to coyotes. The Conference Committee concurs with the Senate. (Sec.

502)</p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; padding-top: 0.04in; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">13.<span>&#160;&#160;&#160;</span><span style="font-weight: bold">ORV Trails Advisory Board.</span> The Senate adds a section specifying that the Board shall include an ORV

dealership owner or operator. The Conference Committee revises the language to state intent. (Sec. 805)</p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; padding-top: 0.04in; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">14.<span>&#160;&#160;&#160;</span>The Conference Committee includes sections added by the Senate regarding a Big Rapids riverwalk,

defibrillators in State parks, Porcupine Mountains Wilderness State Park, farms in State parks, watertrails,

and cooperative resources programs. (Sections 603, 704, 705, 706, 707, and 805)</p>

<p style="text-indent: -0.354167in; margin-left: 0.354167in"><i><span style="font-weight: bold">*<span>&#160;&#160;&#160;&#160;&#160;&#160; </span>The Governor vetoed Sec. 603 regarding the Big Rapids riverwalk.</span></i></p>

</td>

</tr>

<tr>

<td class="table2column1" width="100%" style="border-bottom: none; padding-top: 0.04in; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">15.<span>&#160;&#160;&#160;</span>The Conference Committee restores sections removed by the Senate regarding an information technology

rate schedule, credit card license sales, trash receptacles in State parks, and a prohibition on dispersed

camping fees. (Sections 219, 407, 702, and 807)</p>

</td>

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<td class="table2column1" width="100%" style="padding-top: 0.04in; border-left: none; border-right: none; border-top: none; border-bottom: none" valign="top"><p style="text-indent: -0.354167in; margin-left: 0.354167in">16.<span>&#160;&#160;&#160;</span>The Conference Committee does not include sections regarding the Land Sale Fund or a sale of property

to Pere Marquette Township.</p>

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<p>Date Completed: <a name="4"></a>8-18-03 - Fiscal Analyst: <a name="5"></a>Jessica Runnels</p>

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