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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>
<div style="margin-left: 0in">
<table width="720px" cellpadding="6" cellspacing="0">
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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>. . . . . .&a mp;#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> </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"> </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"> 1.<span>    </ 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>
</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"> 2.<span>    </ span><span style="font-weight: bold">Economic Adjustments.</span> The budget includes economic adjustments for building
occupancy charges and workers’ 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>
</tr>
<tr>
<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"> </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"> 3.<span>    </ 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’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>
</td>
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<tr>
<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"> 4.<span>    </ 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’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’s proposal. The Senate
includes the Governor’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"> 5.<span>    </ 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>
</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"> 6.<span>    </ 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>
</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"> 7.<span>    </ 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>
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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"> 8.<span>    </ 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>
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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"> 9.<span>    </ 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>       </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>. . . . . . 60;. . . . . . . .& amp;#160;. . . . . . .& #160;. . . . . . .  . . . . . . . .&am p;#160;. . . . . . . 0;. . . . . . . .&a mp;#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>
</tr>
<tr>
<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>. . . . . .&am p;#160;. . . . . . . 0;. . . . . . . .&a mp;#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>
</tr>
<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> </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>
<tr>
<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>
</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><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"> 1.<span>    </ 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"> 2.<span>    </ 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"> 3.<span>    </ 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"> 4.<span>    </ 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>
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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="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"> 5.<span>    </ 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"> 6.<span>    </ 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"> 7.<span>    </ 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"> 8.<span>    </ 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"> 9.<span>    </ 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>   </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>   </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>   </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>   </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>   </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>       </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>   </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>
</tr>
<tr>
<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>   </span>The Conference Committee does not include sections regarding the Land Sale Fund or a sale of property
to Pere Marquette Township.</p>
</td>
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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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