LABORAND ECONOMIC GROWTH FY 2008-09 Budget

Summary: House Bill 5809 (CR-1) Conference Committee Report

Analyst: Mark Wolf

June 24, 2008

		FY 2008-09 Revised Exec	FY 2008-09 House	FY 2008-09 Senate	FY 2008-09 Conference	*Difference: Conference* *From FY 2007-08 YTD*
	FY 2007-08 YTD	5-7-08	3-20-2008	5-27-08	6-26-08	*Amount*	%
IDG/IDT	34,472,800	$30,724,200	$30,724,200	30,724,300	30,774,200	(3,698,600)	(10.7)
Federal	820,712,500	875,637,300	831,637,300	875,637,200	874,942,400	54,229,900	6.6
Local	15,884,700	15,889,200	15,889,200	15,889,200	15,889,200	4,500	0.0
Private	5,314,300	5,314,300	5,314,300	5,314,300	5,314,300	0	0.0
Restricted	389,120,700	385,719,100	385,937,600	386,308,000	386,914,000	(2,206,700)	(0.6)
GF/GP	46,002,700	103,707,800	94,850,100	45,850,100	73,560,700	27,558,000	59.9
Gross	$1,311,507,700	$1,362,852,700	$1,364,352,700	$1,359,723,100	$1,387,394,800	$75,887,100	5.8
FTEs	4,351.0	4,358.5	4,351.0	4,353.5	4358.5	7.5	0.2

Note: FY 2007-08 figures reflect supplementals, Executive Orders, and legislative transfers throughJune 24, 2008.

Overview

The Department of Labor and Economic Growth (DLEG) has primary responsibility for the regulatory functions that relate specifically to commercial, business, and workers’ issues. It also includes various employment training-related programs for displaced workers, adults, and youth, and employment services for the disabled as well as welfare recipients.

Major Budget Issues

Major Budget Changes From FY 2007-08 YTD Appropriations	FY 2007-08 Year to Date	Conference Change From YTD
Items of Difference 1. Workforce Training Program Subgrantees The Executive and the House add $40.0 million GF/GP for the No Worker Left Behind Program. The Revised Executive and Senate increased federal WIA authorization by $44.0 million to reflect WIA PY 2008-09 allocation. The Executive, House, and Senate increase federal TAA authorization by $6.4 million. The Conference Committee concurs with the additional WIA and TAA authorization, and provides an additional $15.0 million GF/GP for No Worker Left Behind.	Gross Federal GF/GP	$184,587,800 184,587,800 $0	$65,440,800 50,440,800 $15,000,000
2. *Michigan* *Nursing Corps Program* Executiveand House add $8.5 million for the Michigan Nursing Corps program to rapidly prepare new nursing faculty and recruit displaced workers with bachelor's degreesin scienceto earnan acceleratedone-year nursing certification. The Senate reduces by $1.0 million from YTD. The Conference Committee provides an additional $3.5 million.	Gross GF/GP	$1,500,000 $1,500,000	$3,500,000 $3,500,000
*3. Office of Financial and Insurance Regulation* The Revised Executive and Senate adds 50.0 FTEs and $5.4 million in industry-paid fees to improve regulation or maintain statutorily-required regulatory activities related to mortgage lending, payday lending, securities, banking and credit unions, and insurance. The Conference Committee concurs.	FTEs Gross Federal Restricted	298.0 $45,903,300 50,400 45,852,900	50.0 $5,389,900 0 5,389,900
*4. Housing and Community Development Fund* The Executive and House maintain current year funding levels. The Senate increases funding by $1.8 million. The Conference Committee concurs maintains current year funding levels.	Gross GF/GP	$2,163,400 $2,163,400	$0 $0
*6. Unemployment Fund Shift* In a May revision letter, the Executive added $9.4 million (P&I) to the unemployment programs line to pay for borrowing costs on cash flow advances (loans) made by the Department of Labor. The revision replaced P&I funds in other lines with GF/GP. The YTD appropriation includes an additional $8.0 million for the same purpose. The Conference Committee concurs with the Executive Revision.	Gross Federal Restricted GF/GP	$102,340,500 90,640,500 11,700,000 $0	$9,357,700 0 0 $9,357,700
*7. Fire Protection Grants* The House adds $1.0 million from the Liquor Purchasing Revolving Fund for fire protection grants to cities with state-owned property. The Executive and Senate maintain current year funding levels. The Conference Committee maintains current year funding levels.	Gross Restricted	$10,910,500 10,910,500	$0 $0
*8. Centers for Independent Living* The House Increases funding for centers for independent living, which provide supportive services to persons with disabilities, by $500,000. The Senate increases funding by $163,300. The Conference Committee concurs with the House, but uses restricted funds (Corporations Fees) rather than General Fund/General Purpose.	Gross Federal Private Restricted GF/GP	$3,079,700 870,200 100,000 0 2,109,500	$500,000 0 0 500,000 $0
*9. State Office of Administrative Hearings and Rules* Adds 7.0 FTEs and $640,700 (IDG-DHS) to support the increased volume of administrative hearings concerning DHS benefits. The Senate added a placeholder for teach tenure hearings. The Conference adds $50,000 (IDG) for teacher tenure hearings.	Gross IDG	$3,338,000 3,338,000	$50,000 50,000
*10. Jobs, Education, and Training (JET) Program* Reduces by 36.0 positions and $4.5 million (IDG-DHS) to more accurately reflect program personnel needs and to reflect lower than anticipated referrals to Michigan Rehabilitation Service. The Senate increases funding by $100. The Conference Committee concurs with the Executive and the House.	FTE Gross IDG	93.0 $22,877,800 22,877,800	(36.0) ($4,467,600) (4,467,600)
*11. MIOSHA Commissions* The Senate reduced funding for MIOSHA related to the costs of the General Industry Safety Standards Commission and the Occupational Health Standards Commission. The Conference restores the Senate reduction.	Gross Federal Restricted	$26,198,200 12,197,000 14,001,200	$0 0 0
*12. BWUC Administration* The Senate reduced staffing and funding the administration of the Bureau of Workers and Unemployment Compensation by 5.0 FTEs and $400,000. The Conference restores the Senate reduction.	Gross Restricted	$9,896,800 9,896,800	$0 0
*Non-Items of Difference* *13. OFIR IT System Integration* Adds $1.4 million Restricted for the first year of a two-year IT project integrating OFIR's IT systems concerning insurance, banking, and credit union regulatory activities. (Estimated costs in FY 2010 are $1.1 million.)	Gross Restricted	N/A N/A	$1,377,000 1,377,000
*14. MSHDA Payments on Behalf of Tenants* Adds $5.0 million Federal for payments on behalf of tenants in the low-income housing choice voucher program.	Gross Federal	$140,000,000 140,000,000	$5,000,000 5,000,000
*15. Remonumentation Grants* Decreases authorization for grants based on estimated revenue.	Gross Restricted	$14,000,000 14,000,000	($3,000,000) (3,000,000)
*16. Occupational Regulation (Commercial Services)* Adds 11.0 FTEs and $1.0 million Restricted to crack down on unlicensed activity within the accounting, real estate, and building construction industries.	FTEs Gross Restricted	156.0 $17,651,200 17,651,200	11.0 $1,050,000 1,050,000
*17. LCC: Direct Shipper Enforcement Fund* Adds $120,000 from the Direct Shipper Enforcement Fund related to enforcement of regulations concerning the direct shipment of wine.	Gross Restricted	N/A N/A	$120,000 120,000
*18. Internal Audit Consolidation* Reduces 5.0 FTEs related to consolidation of internal audit activities within DMB. Funding will remain within DLEG budget, and bill be recorded as anIDG in the DMB budget.	FTE Gross Federal Restricted	5.0 $560,100 68,700 491,400	(5.0) $0 0 0
*19. Human Resources Consolidation* Reduces 22.0 FTEs and $2.4 million related to consolidation of human resources activities within DMB. Also eliminates $259,700 in HR optimization charges	FTE Gross Federal Restricted	22.0 $2,619,800 1,800,400 819,400	(22.0) ($2,619,800) (1,800,400) (819,400)
*20. Focus: HOPE* Eliminates $140,000 for a pilot study on improving job placement and retention of welfare recipients.	Gross Restricted	$140,000 140,000	($140,000) (140,000)
*21. Liquor Enforcement Grants* Adds $500,000 for liquor law enforcement grants from increased revenue generated from sale of development district and redevelopment project licenses.	Gross Restricted	$6,507,000 6,507,000	$93,000 93,000
*22. Deaf and Hard of Hearing Interpreters* Adds $75,000 to expand availability of interpreters for the deaf and hard of hearing on account of increase revenue from interpreter testing fees.	Gross Restricted	N/A N/A	$75,000 75,000
*23. FY 2008-09 Economic Increases* Includes contractual 1.0% wage increases and adjustments for insurance and retirement (includes $119,000 Gross forDIT economics).	Gross IDG Federal Local Restricted GF/GP	N/A N/A N/A N/A N/A N/A	$1,994,900 91,300 935,000 4,500 976,700 (12,600)

Major Budget Changes From FY 2007-08 YTD Appropriations

FY 2007-08

Year to Date

Conference Change

From YTD

Items of Difference

1. Workforce Training Program Subgrantees

The Executive and the House add $40.0 million GF/GP for the No Worker Left Behind Program. The Revised Executive and Senate increased federal WIA authorization by $44.0 million to reflect WIA PY 2008-09 allocation. The Executive, House, and Senate increase federal TAA authorization by $6.4 million. The Conference Committee concurs with the additional WIA and TAA authorization, and provides an additional $15.0 million GF/GP for No Worker Left Behind.

Gross

Federal

GF/GP

$184,587,800

184,587,800

$65,440,800

50,440,800

$15,000,000

2. Michigan Nursing Corps Program

Executiveand House add $8.5 million for the Michigan Nursing Corps program to rapidly prepare new nursing faculty and recruit displaced workers with bachelor's degreesin scienceto earnan acceleratedone-year nursing certification. The Senate reduces by $1.0 million from YTD. The Conference Committee provides an additional $3.5 million.

Gross

GF/GP

$1,500,000

$1,500,000

$3,500,000

$3,500,000

3. Office of Financial and Insurance Regulation

The Revised Executive and Senate adds 50.0 FTEs and $5.4 million in industry-paid fees to improve regulation or maintain statutorily-required regulatory activities related to mortgage lending, payday lending, securities, banking and credit unions, and insurance. The Conference Committee concurs.

FTEs

Gross

Federal

Restricted

298.0

$45,903,300

50,400

45,852,900

50.0

$5,389,900

5,389,900

4. Housing and Community Development Fund

The Executive and House maintain current year funding levels. The Senate increases funding by $1.8 million. The Conference Committee concurs maintains current year funding levels.

Gross

GF/GP

$2,163,400

$2,163,400

6. Unemployment Fund Shift

In a May revision letter, the Executive added $9.4 million (P&I) to the unemployment programs line to pay for borrowing costs on cash flow advances (loans) made by the Department of Labor. The revision replaced P&I funds in other lines with GF/GP. The YTD appropriation includes an additional $8.0 million for the same purpose. The Conference Committee concurs with the Executive Revision.

Gross

Federal

Restricted

GF/GP

$102,340,500

90,640,500

11,700,000

$9,357,700

$9,357,700

7. Fire Protection Grants

The House adds $1.0 million from the Liquor Purchasing Revolving Fund for fire protection grants to cities with state-owned property. The Executive and Senate maintain current year funding levels. The Conference Committee maintains current year funding levels.

Gross

Restricted

$10,910,500

10,910,500

8. Centers for Independent Living

The House Increases funding for centers for independent living, which provide supportive services to persons with disabilities, by $500,000. The Senate increases funding by $163,300. The Conference Committee concurs with the House, but uses restricted funds (Corporations Fees) rather than General Fund/General Purpose.

Gross

Federal

Private

Restricted

GF/GP

$3,079,700

870,200

100,000

2,109,500

$500,000

500,000

9. State Office of Administrative Hearings and Rules

Adds 7.0 FTEs and $640,700 (IDG-DHS) to support the increased volume of administrative hearings concerning DHS benefits. The Senate added a placeholder for teach tenure hearings. The Conference adds $50,000 (IDG) for teacher tenure hearings.

Gross

IDG

$3,338,000

3,338,000

$50,000

50,000

10. Jobs, Education, and Training (JET) Program

Reduces by 36.0 positions and $4.5 million (IDG-DHS) to more accurately reflect program personnel needs and to reflect lower than anticipated referrals to Michigan Rehabilitation Service. The Senate increases funding by $100. The Conference Committee concurs with the Executive and the House.

FTE

Gross

IDG

93.0

$22,877,800

22,877,800

(36.0)

($4,467,600)

(4,467,600)

11. MIOSHA Commissions

The Senate reduced funding for MIOSHA related to the costs of the General Industry Safety Standards Commission and the Occupational Health Standards Commission. The Conference restores the Senate reduction.

Gross

Federal

Restricted

$26,198,200

12,197,000

14,001,200

12. BWUC Administration

The Senate reduced staffing and funding the administration of the Bureau of Workers and Unemployment Compensation by 5.0 FTEs and $400,000. The Conference restores the Senate reduction.

Gross

Restricted

$9,896,800

9,896,800

Non-Items of Difference

13. OFIR IT System Integration

Adds $1.4 million Restricted for the first year of a two-year IT project integrating OFIR's IT systems concerning insurance, banking, and credit union regulatory activities. (Estimated costs in FY 2010 are $1.1 million.)

Gross

Restricted

N/A

N/A

$1,377,000

1,377,000

14. MSHDA Payments on Behalf of Tenants

Adds $5.0 million Federal for payments on behalf of tenants in the low-income housing choice voucher program.

Gross

Federal

$140,000,000

140,000,000

$5,000,000

5,000,000

15. Remonumentation Grants

Decreases authorization for grants based on estimated revenue.

Gross

Restricted

$14,000,000

14,000,000

($3,000,000)

(3,000,000)

16. Occupational Regulation (Commercial Services)

Adds 11.0 FTEs and $1.0 million Restricted to crack down on unlicensed activity within the accounting, real estate, and building construction industries.

FTEs

Gross

Restricted

156.0

$17,651,200

17,651,200

11.0

$1,050,000

1,050,000

17. LCC: Direct Shipper Enforcement Fund

Adds $120,000 from the Direct Shipper Enforcement Fund related to enforcement of regulations concerning the direct shipment of wine.

Gross

Restricted

N/A

N/A

$120,000

120,000

18. Internal Audit Consolidation

Reduces 5.0 FTEs related to consolidation of internal audit activities within DMB. Funding will remain within DLEG budget, and bill be recorded as anIDG in the DMB budget.

FTE

Gross

Federal

Restricted

5.0

$560,100

68,700

491,400

(5.0)

19. Human Resources Consolidation

Reduces 22.0 FTEs and $2.4 million related to consolidation of human resources activities within DMB. Also eliminates $259,700 in HR optimization charges

FTE

Gross

Federal

Restricted

22.0

$2,619,800

1,800,400

819,400

(22.0)

($2,619,800)

(1,800,400)

(819,400)

20. Focus: HOPE

Eliminates $140,000 for a pilot study on improving job placement and retention of welfare recipients.

Gross

Restricted

$140,000

140,000

($140,000)

(140,000)

21. Liquor Enforcement Grants

Adds $500,000 for liquor law enforcement grants from increased revenue generated from sale of development district and redevelopment project licenses.

Gross

Restricted

$6,507,000

6,507,000

$93,000

93,000

22. Deaf and Hard of Hearing Interpreters

Adds $75,000 to expand availability of interpreters for the deaf and hard of hearing on account of increase revenue from interpreter testing fees.

Gross

Restricted

N/A

N/A

$75,000

75,000

23. FY 2008-09 Economic Increases

Includes contractual 1.0% wage increases and adjustments for insurance and retirement (includes $119,000 Gross forDIT economics).

Gross

IDG

Federal

Local

Restricted

GF/GP

N/A

N/A

$1,994,900

91,300

935,000

4,500

976,700

(12,600)

Major Boilerplate Changes From FY 2007-08
**Sec. 205. Hiring Freeze -RETAINED Imposes a hiring freeze on the department, and permits the state budget director to grant exceptions to the hiring freeze in certain limited circumstances. The House adds an exception to the hiring freeze for the Public Service Commission for House Bill 5524 (the re-write of P.A. 141). The Executive, House, and Senate make minor revisions. The Senate does not concur with the House in providing an exemption for the MPSC. The Conference Committee** does not include the exception for the MPSC.
*Sec. 215. Report on Policy Changes -* RETAINED Requires the department to submit a report on policy changes made to implement recently enacted legislation and prohibiting the department from promulgating administrative rules that have disproportionate impact on small businesses. The Executive and House delete this section. The Senate retains this section. The Conference Committee retains this section.
**Sec. 219. Employee Interaction with Legislature -Retained Prohibits the department from taking disciplinary action against employees who communicate with the Legislature. The Executive and House delete this section. The Senate retains this section. The Conference Committee** retains this section.
**Sec. 222. Governmental Efficiency Commission -NEW The Senate added language requiring the department to review the determinations of the Legislative Commission on Governmental Efficiency to determine their applicability to the department and the costs and benefits of implementing recommendations. The Conference Committee** concurred with the Senate.
**Sec. 224.(Out-of-State Travel for Training -NEW The Senate added language prohibiting out-of-state travel by more than one departmental employee for professional development or training, except where more than one person is required to attend and travel is funded by non-state resources. The Conference Committee** concurs with the Senate, and further permits travel to a conference or training seminar where staff lacks the expertise.
**Sec. 225. Transparency in State Expenditures -NOT INCLUDED The Senate added language requiring the department to develop a website detailing all expenditures made in the fiscal year. The Conference Committee** does not include this section.
**Sec. 311. Construction Code Fund -NEW The Conference Committee** added a section appropriating $3.0 in surplus corporation fees (copy and certification fees) to the Construction Code Fund.
**Sec. 319. Unemployment Taxes and PEOs -NOT INCLUDED The Senate added language prohibiting the department from expending funds for the UIA to combine entities within aPEO into a single account or single rate unless there is clear evidence that the primary purpose of thePEO is to reduce the unemployment taxes of the employers. The Conference Committee** does not include this section.
**Sec. 335. MPSC Report on Low Income and Energy Efficiency Fund Grant Awards- RETAINED Requires the Public Service Commission to issue a report on grant awards from the Low Income and Energy Efficiency Fund. The Executive deleted this section. The House and Senate retain this section. The Conference Committee** retains this section.
*Sec. 336. Office of Financial and Insurance Regulation Expenditure Report* - RETAINED Requires OFIR to issue a report on expenditures of each OFIR division in the preceding fiscal year. The Executive deletes this section. The House and Senate retain this section. The Conference Committee retains this section.
**Sec. 337. Credit Scoring in Insurance Rate Setting -RETAINED Prohibits using appropriations for implementing prohibitions on the use of credit scoring in insurance rate setting. The Executive and House delete this section. The Senate retains this section. The Conference Committee** retains this section.
**Sec. 340. Health Maintenance Organization Quarterly and Annual Reports -RETAINED Requires OFIR to provide the fiscal agencies with copies of quarterly and annual reports of health maintenance organizations (HMOs). The Executive deletes this section. The House and Senate retain this section. The Conference Committee** retains this section.
**Sec. 355. Ergonomic Rules -REVISED Prohibits using funds for promulgation of ergonomic rules that are more stringent than voluntary federal standards. The Executive and House delete this section. The Senate revises this section to state that funding for MIOSHA in part 1 shall only be used to administer worker safety programs, and no funding shall be used to support the Occupational Health Standards Commission or the General Industry Safety Standards Commission. The Conference Committee** maintains current year language, which provides that no funds shall be used to support of the development of ergonomics rules that are more stringent than federal voluntary ergonomics guidelines.
**Sec. 357. Real Estate Law and Rules Book -REVISED Allocates up to $50,000 for printing the Real Estate Law and Rules Book (Red Book), and requires the department to make printed copies of the book available at cost. The Executive, House, and Senate delete the allocation of funds for this purpose. The Conference Committee** deletes this provision.
**Sec. 365. CET Grants -RETAINED Allocates at least $40,000 from the amount appropriated for theMichigan occupational safety and health consultation education and training (CET) grants to nonprofit organizations representing the aggregate industry. The Executive and House delete this section. The Senate retains this section. The Conference Committee** retains this section.
**Sec. 370(2). Cities of Promise Allocation -DELETED The Executive, House, and Senate delete the statement of legislative intent allocating at least $750,000 from the cities of promise blight elimination program toSaginaw andFlint. The Conference Committee** deletes this section.
**Sec. 375. MPSC Low Income and Energy Efficiency Grant Awards Process -RETAINED Requires the MPSC to set an application deadline of May 1st and award deadline of October 1st for issuing LIEEF grant awards. The Executive deletes this section. The House and Senate incorporate this section into Section 335. The Conference Committee** retains this section.
**Sec. 376. LCC Report on Revenue Losses -DELETED Requires the Liquor Control Commission to issue a report byJanuary 15, 2008 on the amount of revenue lost due to out of state liquor purchases for individual consumption or illegal resale. The Executive, House, and Senate delete this provision. The Conference Committee** deletes this section..
**Sec. 377(2). Workforce Investment Act Funds Expenditures -RETAINED Requires the department to report the amount of workforce investment act funds appropriated in the fiscal year. The Executive deletes this provision. The House and Senate retain this provision. The Conference Committee** retains this section.
**Sec. 378. SOAHR Decisions in Public Assistance Cases -NEW The Senate adds intent language for the State Office of Administrative Hearings and Rules to work the Center for Civil Justice to develop a system to post on-line SOAHR decisions concerning Medicaid and cash, emergency, and food assistance. The Conference Committee** concurs with the Senate.
**Sec. 403. Local Match of Vocational Rehabilitation Facilities Establishment Grants -DELETED Sets a maximum local match requirement for vocational rehabilitation facilities establishment grants at 21.3%. The Executive deletes this provision. The House and Senate retain this provision. The Conference Committee** retains this provision.
**Sec. 404. Vocational Rehabilitation Independent Living -REVISED The Executive adds that funds appropriated for vocational rehabilitation independent living not used to match federal funding to be used for the development of new independent living centers in areas currently unserved or underserved. The House provides that the $500,000 increase for this line item may be used for the development of new independent living centers in areas currently unserved or underserved. The Senate provides that funds may be used by existing sites to serve underserved areas. The Conference Committee** provides that funds may be used by existing sites to serve underserved areas.
**Sec. 407. Workforce Development Boards -REVISED Requires local workforce boards to establish education advisory groups consisting of school administrators, workforce board members, employers, labor interests, educators, and parents of school children. The House and Senate permit local boards to add to the education advisory group representatives of organizations that provide school-based curriculum and youth programs on entrepreneurship, work-readiness skills, and financial literacy. The Conference Committee** includes this provision.
**Sec. 408. Enhance Local Access to Baccalaureate Degree Opportunities -DELETED Statement of legislative intent to identify ways of enhancing local access to baccalaureate programs in applied science and technology through the community college system. Permits funds to be used for a study such programs would be useful and could be developed quickly. The Executive, House, and Senate delete this section. The Conference Committee** deletes this section.
**Sec. 432. No Worker Left Behind Report -REVISED The Executive and Senate change the dates for the NLWB program from 71/2008 for the period8/1/2007 -5/30/2008 to a report by12/15/2009 for the period10/1/2008 - 9/30/2009. The House retained the current dates, but updates the year. The Senate also requires a report by12/15/2008 for the period10/1/2007 - 9/30/2008. The Conference Committee** concurs with the Senate, adds that the report include information about the amount expended (listed by fund source) for the program.
**Sec. 432a. No Worker Left Behind -NEW The House adds boilerplate concerning the $40.0 million increase in funding for NWLB. The section allocates $30.0 million for worker training in in-demand fields, $5.0 million for adult basic education, remedial education, and other training for individuals not ready for post-secondary training; and $5.0 million for capacity building at community colleges and other public, associates-degree granting institutions. The House also requires funds to be used to provide training to food stamp recipients and distributed in a manner that leverages federal, local, and private funds. The House Committee also adds intent language requiring the department to work with local workforce development partners and the Lewis College of Business to assist the college in participating in the program, and adds language permitting a portion of the $30.0 million allocated for training to be utilized by libraries to assist in providing training in in-demand occupations, based on demonstrated need. The Senate retains the overall structure of the House language. It allocates at least $70.0 million for the program and, without setting specific amounts, directs that funds be used for worker training, adult education, and capacity building at community colleges. The Senate does not provide funds to community colleges through a competitive granting process, and does not include the House's provisions regarding the Lewis College of Business or the allocation of funds to public libraries. The Conference** retains the overall structure of the House boilerplate. It allocates the $15 million GF/GP appropriated for NWLB among adult education ($2.5 million - $5.0 million), community colleges ($2.5 million - $5.0 million), and worker training (available balance). It does not include the House language with respect to public libraries or the Lewis College of Business. It also provides that the department shall maximize participation in the program among food assistance recipients.
**Sec. 437. Welfare to Work– REVISED Allocates $140,000 to Focus: Hope to design a pilot program to improve job placement and retention of welfare recipients. Directs Focus: Hope to work collaboratively with Department of Human Services Jobs, Employment, Training Program andMichigan community colleges and universities. The Executive, House, and Senate delete this section. The Senate adds language allocating $200,000 for one grant to expand a program of an employer that (1) focuses on retaining low-wage workers receiving public assistance; (2) has at least an 80% retention rate; (3) includes more than one employer; (4) has a DHS caseworker on the employer's worksite; splits the costs of the case worker with federal TANF funds and the employer's own funds; (6) provides life and work-related skills training; (7) impacts at least three counties; and (8) includes partnerships with local government, nonprofits, and community colleges. The Conference Committee** concurred with the Senate.
**Sec. 439. Land Bank Fast Track Authority -REVISED Allocates $400,000 from LBFTA funds appropriated in part 1 to be used for additional maintenance or demolition of tax reverted property. The Executive and Senate delete this section. The House retains this section, but reduces the allocation from $400,000 to a $100 placeholder. The Conference Committee** deletes this section.
**Sec. 439. Focus: HOPE Career Prep Pilot Program -NEW The Senate added language providing a $100 placeholder allocation to Focus: HOPE to implement a pilot career prep program for welfare recipients in Genesee and Wayne counties, based on the program designed from funds provided in FY 2007-08 (2007 PA 118, Section 437). The Conference Committee** provides intent language that the department work with Career Alliance (Genesee-Shiawassee Michigan Works! Agency) and other interested MWAs in implementing the Career Prep pilot program.
**Sec. 440. Gang Diversion -NEW The Senate adds language setting aside a portion of the WIA Statewide Activities funds to support coordinated activities of the local Michigan Works! agency and law enforcement for gang diversion activities and support services to at-risk youthWyoming,Detroit, and Benton Harbor. The Conference Committee** concurs with the Senate.
**Sec. 441. SOAHR Teacher Tenure Hearings -NEW The Senate added language specifying the $100 GF/GP placeholder for SOAHR is to be used to reduce the backlog of teacher tenure cases. The Conference Committee** does not include this section.
**Sec. 442. Temporary Assistance for Need Families Contingency Funds -NEW The Conference Committee** adds a section appropriating up to $30.0 million in TANF funds, upon the receipt in TANF Contingency Funds in FY 2007-08, and subsequent carryforward of TANF block grant funds in FY 2008-09. Of the funds appropriated, $2.0 million is allocated to the Michigan Housing and Community Development Fund. The remaining balance of the funds are to be allocated to theJET program for enhanced employment and training services.

Major Boilerplate Changes From FY 2007-08

Sec. 205. Hiring Freeze -RETAINED

Imposes a hiring freeze on the department, and permits the state budget director to grant exceptions to the hiring freeze in certain limited circumstances. The House adds an exception to the hiring freeze for the Public Service Commission for House Bill 5524 (the re-write of P.A. 141). The Executive, House, and Senate make minor revisions. The Senate does not concur with the House in providing an exemption for the MPSC. The Conference Committee does not include the exception for the MPSC.

Sec. 215. Report on Policy Changes - RETAINED

Requires the department to submit a report on policy changes made to implement recently enacted legislation and prohibiting the department from promulgating administrative rules that have disproportionate impact on small businesses. The Executive and House delete this section. The Senate retains this section. The Conference Committee retains this section.

Sec. 219. Employee Interaction with Legislature -Retained

Prohibits the department from taking disciplinary action against employees who communicate with the Legislature. The Executive and House delete this section. The Senate retains this section. The Conference Committee retains this section.

Sec. 222. Governmental Efficiency Commission -NEW

The Senate added language requiring the department to review the determinations of the Legislative Commission on Governmental Efficiency to determine their applicability to the department and the costs and benefits of implementing recommendations. The Conference Committee concurred with the Senate.

Sec. 224.(Out-of-State Travel for Training -NEW

The Senate added language prohibiting out-of-state travel by more than one departmental employee for professional development or training, except where more than one person is required to attend and travel is funded by non-state resources. The Conference Committee concurs with the Senate, and further permits travel to a conference or training seminar where staff lacks the expertise.

Sec. 225. Transparency in State Expenditures -NOT INCLUDED

The Senate added language requiring the department to develop a website detailing all expenditures made in the fiscal year. The Conference Committee does not include this section.

Sec. 311. Construction Code Fund -NEW

The Conference Committee added a section appropriating $3.0 in surplus corporation fees (copy and certification fees) to the Construction Code Fund.

Sec. 319. Unemployment Taxes and PEOs -NOT INCLUDED

The Senate added language prohibiting the department from expending funds for the UIA to combine entities within aPEO into a single account or single rate unless there is clear evidence that the primary purpose of thePEO is to reduce the unemployment taxes of the employers. The Conference Committee does not include this section.

Sec. 335. MPSC Report on Low Income and Energy Efficiency Fund Grant Awards- RETAINED

Requires the Public Service Commission to issue a report on grant awards from the Low Income and Energy Efficiency Fund. The Executive deleted this section. The House and Senate retain this section. The Conference Committee retains this section.

Sec. 336. Office of Financial and Insurance Regulation Expenditure Report - RETAINED

Requires OFIR to issue a report on expenditures of each OFIR division in the preceding fiscal year. The Executive deletes this section. The House and Senate retain this section. The Conference Committee retains this section.

Sec. 337. Credit Scoring in Insurance Rate Setting -RETAINED

Prohibits using appropriations for implementing prohibitions on the use of credit scoring in insurance rate setting. The Executive and House delete this section. The Senate retains this section. The Conference Committee retains this section.

Sec. 340. Health Maintenance Organization Quarterly and Annual Reports -RETAINED

Requires OFIR to provide the fiscal agencies with copies of quarterly and annual reports of health maintenance organizations (HMOs). The Executive deletes this section. The House and Senate retain this section. The Conference Committee retains this section.

Sec. 355. Ergonomic Rules -REVISED

Prohibits using funds for promulgation of ergonomic rules that are more stringent than voluntary federal standards. The Executive and House delete this section. The Senate revises this section to state that funding for MIOSHA in part 1 shall only be used to administer worker safety programs, and no funding shall be used to support the Occupational Health Standards Commission or the General Industry Safety Standards Commission. The Conference Committee maintains current year language, which provides that no funds shall be used to support of the development of ergonomics rules that are more stringent than federal voluntary ergonomics guidelines.

Sec. 357. Real Estate Law and Rules Book -REVISED

Allocates up to $50,000 for printing the Real Estate Law and Rules Book (Red Book), and requires the department to make printed copies of the book available at cost. The Executive, House, and Senate delete the allocation of funds for this purpose. The Conference Committee deletes this provision.

Sec. 365. CET Grants -RETAINED

Allocates at least $40,000 from the amount appropriated for theMichigan occupational safety and health consultation education and training (CET) grants to nonprofit organizations representing the aggregate industry. The Executive and House delete this section. The Senate retains this section. The Conference Committee retains this section.

Sec. 370(2). Cities of Promise Allocation -DELETED

The Executive, House, and Senate delete the statement of legislative intent allocating at least $750,000 from the cities of promise blight elimination program toSaginaw andFlint. The Conference Committee deletes this section.

Sec. 375. MPSC Low Income and Energy Efficiency Grant Awards Process -RETAINED

Requires the MPSC to set an application deadline of May 1st and award deadline of October 1st for issuing LIEEF grant awards. The Executive deletes this section. The House and Senate incorporate this section into Section 335. The Conference Committee retains this section.

Sec. 376. LCC Report on Revenue Losses -DELETED

Requires the Liquor Control Commission to issue a report byJanuary 15, 2008 on the amount of revenue lost due to out of state liquor purchases for individual consumption or illegal resale. The Executive, House, and Senate delete this provision. The Conference Committee deletes this section..

Sec. 377(2). Workforce Investment Act Funds Expenditures -RETAINED

Requires the department to report the amount of workforce investment act funds appropriated in the fiscal year. The Executive deletes this provision. The House and Senate retain this provision. The Conference Committee retains this section.

Sec. 378. SOAHR Decisions in Public Assistance Cases -NEW

The Senate adds intent language for the State Office of Administrative Hearings and Rules to work the Center for Civil Justice to develop a system to post on-line SOAHR decisions concerning Medicaid and cash, emergency, and food assistance. The Conference Committee concurs with the Senate.

Sec. 403. Local Match of Vocational Rehabilitation Facilities Establishment Grants -DELETED

Sets a maximum local match requirement for vocational rehabilitation facilities establishment grants at 21.3%. The Executive deletes this provision. The House and Senate retain this provision. The Conference Committee retains this provision.

Sec. 404. Vocational Rehabilitation Independent Living -REVISED

The Executive adds that funds appropriated for vocational rehabilitation independent living not used to match federal funding to be used for the development of new independent living centers in areas currently unserved or underserved. The House provides that the $500,000 increase for this line item may be used for the development of new independent living centers in areas currently unserved or underserved. The Senate provides that funds may be used by existing sites to serve underserved areas. The Conference Committee provides that funds may be used by existing sites to serve underserved areas.

Sec. 407. Workforce Development Boards -REVISED

Requires local workforce boards to establish education advisory groups consisting of school administrators, workforce board members, employers, labor interests, educators, and parents of school children. The House and Senate permit local boards to add to the education advisory group representatives of organizations that provide school-based curriculum and youth programs on entrepreneurship, work-readiness skills, and financial literacy. The Conference Committee includes this provision.

Sec. 408. Enhance Local Access to Baccalaureate Degree Opportunities -DELETED

Statement of legislative intent to identify ways of enhancing local access to baccalaureate programs in applied science and technology through the community college system. Permits funds to be used for a study such programs would be useful and could be developed quickly. The Executive, House, and Senate delete this section. The Conference Committee deletes this section.

Sec. 432. No Worker Left Behind Report -REVISED

The Executive and Senate change the dates for the NLWB program from 71/2008 for the period8/1/2007 -5/30/2008 to a report by12/15/2009 for the period10/1/2008 - 9/30/2009. The House retained the current dates, but updates the year. The Senate also requires a report by12/15/2008 for the period10/1/2007 - 9/30/2008. The Conference Committee concurs with the Senate, adds that the report include information about the amount expended (listed by fund source) for the program.

Sec. 432a. No Worker Left Behind -NEW

The House adds boilerplate concerning the $40.0 million increase in funding for NWLB. The section allocates $30.0 million for worker training in in-demand fields, $5.0 million for adult basic education, remedial education, and other training for individuals not ready for post-secondary training; and $5.0 million for capacity building at community colleges and other public, associates-degree granting institutions. The House also requires funds to be used to provide training to food stamp recipients and distributed in a manner that leverages federal, local, and private funds. The House Committee also adds intent language requiring the department to work with local workforce development partners and the Lewis College of Business to assist the college in participating in the program, and adds language permitting a portion of the $30.0 million allocated for training to be utilized by libraries to assist in providing training in in-demand occupations, based on demonstrated need.

The Senate retains the overall structure of the House language. It allocates at least $70.0 million for the program and, without setting specific amounts, directs that funds be used for worker training, adult education, and capacity building at community colleges. The Senate does not provide funds to community colleges through a competitive granting process, and does not include the House's provisions regarding the Lewis College of Business or the allocation of funds to public libraries.

The Conference retains the overall structure of the House boilerplate. It allocates the $15 million GF/GP appropriated for NWLB among adult education ($2.5 million - $5.0 million), community colleges ($2.5 million - $5.0 million), and worker training (available balance). It does not include the House language with respect to public libraries or the Lewis College of Business. It also provides that the department shall maximize participation in the program among food assistance recipients.

Sec. 437. Welfare to Work– REVISED

Allocates $140,000 to Focus: Hope to design a pilot program to improve job placement and retention of welfare recipients. Directs Focus: Hope to work collaboratively with Department of Human Services Jobs, Employment, Training Program andMichigan community colleges and universities. The Executive, House, and Senate delete this section. The Senate adds language allocating $200,000 for one grant to expand a program of an employer that (1) focuses on retaining low-wage workers receiving public assistance; (2) has at least an 80% retention rate; (3) includes more than one employer; (4) has a DHS caseworker on the employer's worksite; splits the costs of the case worker with federal TANF funds and the employer's own funds; (6) provides life and work-related skills training; (7) impacts at least three counties; and (8) includes partnerships with local government, nonprofits, and community colleges. The Conference Committee concurred with the Senate.

Sec. 439. Land Bank Fast Track Authority -REVISED

Allocates $400,000 from LBFTA funds appropriated in part 1 to be used for additional maintenance or demolition of tax reverted property. The Executive and Senate delete this section. The House retains this section, but reduces the allocation from $400,000 to a $100 placeholder. The Conference Committee deletes this section.

Sec. 439. Focus: HOPE Career Prep Pilot Program -NEW

The Senate added language providing a $100 placeholder allocation to Focus: HOPE to implement a pilot career prep program for welfare recipients in Genesee and Wayne counties, based on the program designed from funds provided in FY 2007-08 (2007 PA 118, Section 437). The Conference Committee provides intent language that the department work with Career Alliance (Genesee-Shiawassee Michigan Works! Agency) and other interested MWAs in implementing the Career Prep pilot program.

Sec. 440. Gang Diversion -NEW

The Senate adds language setting aside a portion of the WIA Statewide Activities funds to support coordinated activities of the local Michigan Works! agency and law enforcement for gang diversion activities and support services to at-risk youthWyoming,Detroit, and Benton Harbor. The Conference Committee concurs with the Senate.

Sec. 441. SOAHR Teacher Tenure Hearings -NEW

The Senate added language specifying the $100 GF/GP placeholder for SOAHR is to be used to reduce the backlog of teacher tenure cases. The Conference Committee does not include this section.

Sec. 442. Temporary Assistance for Need Families Contingency Funds -NEW

The Conference Committee adds a section appropriating up to $30.0 million in TANF funds, upon the receipt in TANF Contingency Funds in FY 2007-08, and subsequent carryforward of TANF block grant funds in FY 2008-09. Of the funds appropriated, $2.0 million is allocated to the Michigan Housing and Community Development Fund. The remaining balance of the funds are to be allocated to theJET program for enhanced employment and training services.