EXECUTIVE BUDGET BILL
February 28, 2007, Introduced by Rep. LeBlanc and referred to the Committee on Appropriations.
A bill to make appropriations for the department of military
and veterans affairs for the fiscal year ending September 30, 2008;
to provide for the expenditure of the appropriations; to provide
for certain powers and duties of the department of military and
veterans affairs, other state agencies, and local units of
government related to the appropriations; and to provide for the
preparation of certain reports related to the appropriations.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. Subject to the conditions set forth in this bill,
the amounts listed in this part are appropriated for the department
of military and veterans affairs for the fiscal year ending
September 30, 2008, from the funds indicated in this part. The
following is a summary of the appropriations in this part:
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
APPROPRIATION SUMMARY:
Full-time equated unclassified positions.......... 7.0
Full-time equated classified positions........ 1,015.0
GROSS APPROPRIATION.................................... $ 127,861,700
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 1,680,900
ADJUSTED GROSS APPROPRIATION........................... $ 126,180,800
Federal revenues:
Total federal revenues................................. 54,187,500
Special revenue funds:
Total local revenues................................... 1,283,900
Total private revenues................................. 1,463,300
Total other state restricted revenues.................. 28,428,600
State general fund/general purpose..................... $ 40,817,500
Sec. 102. HEADQUARTERS AND ARMORIES
Full-time equated unclassified positions.......... 7.0
Full-time equated classified positions.......... 123.0
Headquarters and armories--82.5 FTE positions.......... $ 10,742,500
Human resources optimization user charges.............. 62,600
Unclassified military personnel........................ 665,000
Military appeals tribunal.............................. 900
Michigan emergency volunteers.......................... 5,000
State active duty...................................... 90,100
Challenge program--40.5 FTE positions.................. 4,696,300
Homeland security...................................... 1,000,000
Military family relief fund............................ 600,000
GROSS APPROPRIATION.................................... $ 17,862,400
Appropriated from:
Interdepartmental grant revenues:
IDG, community health.................................. 100,000
IDG, challenge grant................................... 260,000
IDG, state police...................................... 900,000
IDG, human services.................................... 420,900
Federal revenues:
DOD-DOA-NGB............................................ 5,226,900
Special revenue funds:
Rental fees............................................ 350,000
Mackinac Bridge authority.............................. 60,000
Private donations...................................... 819,700
Military family relief fund............................ 600,000
Private - parent pay revenue........................... 103,600
Local - school aid fund................................ 1,283,900
State general fund/general purpose..................... $ 7,737,400
Sec. 103. MILITARY TRAINING SITES AND SUPPORT
FACILITIES
Full-time equated classified positions.......... 200.0
Military training sites and support facilities--200.0
FTE positions........................................ $ 22,944,100
Military training sites and support facilities test
projects............................................. 100,000
GROSS APPROPRIATION.................................... $ 23,044,100
Appropriated from:
Federal revenues:
DOD-DOA-NGB............................................ 18,746,600
Special revenue funds:
Test project fees...................................... 100,000
Regional Training Institute Fund....................... 1,500,000
State general fund/general purpose..................... $ 2,697,500
Sec. 104. DEPARTMENTWIDE APPROPRIATIONS
Departmentwide accounts................................ $ 1,660,100
Special maintenance - state............................ 151,200
Special maintenance - federal.......................... 5,300,000
Military retirement.................................... 3,048,000
Counternarcotic operations............................. 50,000
Starbase grant......................................... 957,000
GROSS APPROPRIATION.................................... $ 11,166,300
Appropriated from:
Federal revenues:
DOD-DOA-NGB............................................ 7,523,100
Federal counternarcotic revenues....................... 50,000
State general fund/general purpose..................... $ 3,593,200
Sec. 105. VETERANS SERVICE ORGANIZATIONS
American legion........................................ $ 886,000
Disabled American veterans............................. 732,400
Marine corps league.................................... 336,300
American veterans of World War II and Korea............ 464,800
Veterans of foreign wars............................... 886,000
Michigan paralyzed veterans of America................. 165,700
Purple heart........................................... 157,900
Veterans of World War I................................ 100
Polish legion of American veterans..................... 41,200
Jewish veterans of America............................. 41,200
State of Michigan council - Vietnam veterans of
America.............................................. 159,500
Catholic war veterans.................................. 41,200
GROSS APPROPRIATION.................................... $ 3,912,300
Appropriated from:
State general fund/general purpose..................... $ 3,912,300
Sec. 106. GRAND RAPIDS VETERANS' HOME
Full-time equated classified positions.......... 517.0
Grand Rapids veterans' home--517.0 FTE positions....... $ 48,672,800
Board of managers...................................... 665,000
GROSS APPROPRIATION.................................... $ 49,337,800
Appropriated from:
Federal revenues:
DVA-VHA................................................ 15,504,500
HHS-Medicaid........................................... 153,500
HHS-Medicare........................................... 1,550,900
Special revenue funds:
Private - veterans' home post and posthumous funds..... 415,000
Income and assessments................................. 14,806,400
Military family relief fund............................ 250,000
Lease revenue.......................................... 12,200
State general fund/general purpose..................... $ 16,645,300
Sec. 107. D.J. JACOBETTI VETERANS' HOME
Full-time equated classified positions.......... 159.0
D.J. Jacobetti veterans' home--159.0 FTE positions..... $ 15,771,000
Board of managers...................................... 275,000
GROSS APPROPRIATION.................................... $ 16,046,000
Appropriated from:
Federal revenues:
DVA-VHA................................................ 4,479,600
HHS-Medicare........................................... 497,600
HHS-Medicaid........................................... 10,300
Special revenue funds:
Private - veterans' home post and posthumous funds..... 125,000
Military family relief fund............................ 150,000
Income and assessments................................. 5,300,100
State general fund/general purpose..................... $ 5,483,400
Sec. 108. VETERANS' AFFAIRS DIRECTORATE
Full-time equated classified positions........... 16.0
Veterans' affairs directorate administration--3.0 FTE
positions............................................ $ 336,500
Veterans' trust fund administration--13.0 FTE
positions............................................ 1,222,300
Veterans' trust fund grants............................ 3,746,500
GROSS APPROPRIATION.................................... $ 5,305,300
Appropriated from:
Special revenue funds:
Michigan veterans' trust fund.......................... 4,968,800
State general fund/general purpose..................... $ 336,500
Sec. 109. INFORMATION TECHNOLOGY
Information technology services and projects........... $ 1,187,500
GROSS APPROPRIATION.................................... $ 1,187,500
Appropriated from:
Federal revenues:
DOD-DOA-NGB............................................ 116,500
DVA-VHA................................................ 318,600
HHS-Medicare........................................... 9,400
Special revenue funds:
Income and assessments................................. 331,100
State general fund/general purpose..................... $ 411,900
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 201. (1) Pursuant to section 30 of article IX of the
state constitution of 1963, total state spending from state
resources under part 1 for fiscal year 2007-2008 is $69,246,100.00
and state spending from state resources to be paid to local units
of government for fiscal year 2007-2008 is $120,000.00. The
itemized statement below identifies appropriations from which
spending to units of local government will occur:
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
MILITARY TRAINING SITES AND SUPPORT FACILITIES
Payments in lieu of taxes.............................. $ 70,000
MICHIGAN VETERANS' TRUST FUND
County counselor travel expenses....................... $ 50,000
TOTAL.................................................. $ 120,000
Sec. 202. The appropriations authorized under this bill are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this bill:
(a) "Department" means the department of military and veterans
affairs.
(b) "Director" means the director of the department of
military and veterans affairs.
(c) "DOD" means the United States department of defense.
(d) "DOD-DOA-NGB" means the DOD department of the army,
national guard bureau.
(e) "DVA" means the United States department of veterans'
affairs.
(f) "DVA-VHA" means the DVA veterans' health administration.
(g) "FTE" means full-time equated.
(h) "HHS" means the United States department of health and
human services.
(i) "IDG" means interdepartmental grant.
Sec. 204. The department of civil service shall bill
departments and agencies at the end of the first fiscal quarter for
the 1% charge authorized by section 5 of article XI of the state
constitution of 1963. Payments shall be made for the total amount
of the billing by the end of the second fiscal quarter.
Sec. 205. (1) A hiring freeze is imposed on state classified
civil service. State departments and agencies are prohibited from
hiring any new full-time state classified civil service employees
and prohibited from filling any vacant state classified civil
service positions. This hiring freeze does not apply to internal
transfers of classified employees from 1 position to another within
a department.
(2) The state budget director may grant exceptions to this
hiring freeze when the state budget director believes that the
hiring freeze will result in rendering a state department or agency
unable to deliver basic services, cause loss of revenue to the
state, result in the inability of the state to receive federal
funds, or necessitate additional expenditures that exceed any
savings from maintaining a vacancy. The state budget director shall
report quarterly to the chairpersons of the senate and house of
representatives standing committees on appropriations the number of
exceptions to the hiring freeze approved during the previous
quarter and the reasons to justify the exception.
Sec. 208. The department shall use the Internet to fulfill the
reporting requirements of this bill. This requirement may include
transmission of reports via electronic mail to the recipients
identified for each reporting requirement, or it may include
placement of reports on an Internet or Intranet site.
Sec. 209. Funds appropriated in part 1 shall not be used for
the purchase of foreign goods or services, or both, if
competitively priced and of comparable quality American goods or
services, or both, are available. Preference should be given to
goods or services, or both, manufactured or provided by Michigan
businesses if they are competitively priced and of comparable
quality.
Sec. 210. The director shall take all reasonable steps to
ensure businesses in deprived and depressed communities compete for
and perform contracts to provide services or supplies, or both. The
director shall strongly encourage firms with which the department
contracts to subcontract with certified businesses in depressed and
deprived communities for services, supplies, or both.
Sec. 212. (1) Of the funds appropriated in part 1 for military
training sites and support facilities, there shall be established a
Michigan national guard education assistance program. Disbursements
to the educational assistance program shall not exceed
$1,100,000.00 without legislative approval. Under the program, a
member of the national guard who is in active service and who
enrolls as a full- or part-time student at a public or private
state college or university may be eligible to receive up to an
equivalent of 50% of the total cost of tuition not to exceed
$2,000.00, as education assistance, in any academic year.
(2) As used in this section, an eligible person means a member
of the Michigan national guard who is in active service, as defined
in section 105 of the Michigan military act, 1967 PA 150, MCL
32.505. An eligible person does not include a member of the
Michigan national guard or air national guard who is absent without
leave or who is under charges as described in the Michigan code of
military justice of 1980, 1980 PA 523, MCL 32.1001 to 32.1148.
(3) The department of military and veterans affairs, office of
the adjutant general shall administer the education assistance
program and prescribe forms and procedures to effectively carry out
the education assistance program.
(4) An eligible person shall apply to the department of
military and veterans affairs, office of the adjutant general for
education assistance and shall provide evidence of attendance and
completion of the course of study with a grade of at least 2.0 on a
4.0 scale, or its equivalent. The adjutant general shall approve
the application for reimbursement if the applicant meets the
definition of an eligible person under subsection (2) and other
criteria as established by the adjutant general.
(5) The education assistance program applies to any course of
instruction that is included in an associate, undergraduate, or
postgraduate degree program offered by a college or university of
this state.
(6) The education assistance program applies to an eligible
person notwithstanding any other educational incentive or benefit
received by the eligible person under any other educational
assistance program provided by any other state.
(7) An eligible person who successfully completes the course
of study with a grade of at least 2.0 on a 4.0 scale, or its
equivalent, shall be eligible for reimbursement.
(8) The department of military and veterans affairs may use
funds from the appropriated funds to administer the education
assistance program.
(9) Reimbursed members who do not complete their national
guard obligation shall pay the state for money received from the
state for tuition. Members who fail to repay the state within the
time limits established by the adjutant general shall be indebted
to the state. The department shall work in conjunction with the
department of treasury for inclusion in the tax intercept program
for amounts due the state.
(10) A portion of the funds for the Michigan national guard
education assistance program may be used by the department for the
purpose of promoting the program and for encouraging those persons
the department wishes to have enlist or reenlist in the Michigan
national guard.
Sec. 221. From the funds appropriated in part 1 for
information technology, the department shall pay user fees to the
department of information technology for technology-related
services and projects. Such user fees shall be subject to
provisions of an interagency agreement between the department and
the department of information technology.
Sec. 223. Amounts appropriated in part 1 for information
technology may be designated as work projects and carried forward
to support technology projects under the direction of the
department of information technology. Funds designated in this
manner are not available for expenditure until approved as work
projects under section 451a of the management and budget act, 1984
PA 431, MCL 18.1451a.
Sec. 225. (1) Due to the current budgetary problems in this
state, out-of-state travel shall be limited to situations in which
1 or more of the following conditions apply:
(a) The travel is required by legal mandate or court order or
for law enforcement purposes.
(b) The travel is necessary to protect the health or safety of
Michigan citizens or visitors or to assist other states in similar
circumstances.
(c) The travel is necessary to produce budgetary savings or to
increase state revenues, including protecting existing federal
funds or securing additional federal funds.
(d) The travel is necessary to comply with federal
requirements.
(e) The travel is necessary to secure specialized training for
staff that is not available within this state.
(f) The travel is financed entirely by federal or nonstate
funds.
(2) If out-of-state travel is necessary but does not meet 1 or
more of the conditions in subsection (1), the state budget director
may grant an exception to allow the travel. Any exceptions granted
by the state budget director shall be reported on a monthly basis
to the senate and house of representatives standing committees on
appropriations.
(3) Not later than January 1 of each year, each department
shall prepare a travel report listing all travel by classified and
unclassified employees outside this state in the immediately
preceding fiscal year that was funded in whole or in part with
funds appropriated in the department's budget. The report shall be
submitted to the chairs and members of the senate and house of
representatives standing committees on appropriations, the fiscal
agencies, and the state budget director. The report shall include
the following information:
(a) The name of each person receiving reimbursement for travel
outside this state or whose travel costs were paid by this state.
(b) The destination of each travel occurrence.
(c) The dates of each travel occurrence.
(d) A brief statement of the reason for each travel
occurrence.
(e) The transportation and related costs of each travel
occurrence, including the proportion funded with state general
fund/general purpose revenues, the proportion funded with state
restricted revenues, the proportion funded with federal revenues,
and the proportion funded with other revenues.
(f) A total of all out-of-state travel funded for the
immediately preceding fiscal year.
Sec. 228. (1) In addition to the funds appropriated in part 1,
there is appropriated an amount not to exceed $5,000,000.00 for
federal contingency funds. These funds are not available for
expenditure until they have been transferred to another line item
in this bill under section 393(2) of the department of management
and budget act, 1984 PA 431, MCL 18.1393.
(2) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $2,000,000.00 for state
restricted contingency funds. These funds are not available for
expenditure until they have been transferred to another line item
in this bill under section 393(2) of the department of management
and budget act, 1984 PA 431, MCL 18.1393.
(3) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $100,000.00 for local
contingency funds. These funds are not available for expenditure
until they have been transferred to another line item in this bill
under section 393(2) of the department of management and budget
act, 1984 PA 431, MCL 18.1393.
(4) In addition to the funds appropriated in part 1, there is
appropriated an amount not to exceed $100,000.00 for private
contingency funds. These funds are not available for expenditure
until they have been transferred to another line item in this bill
under section 393(2) of the department of management and budget
act, 1984 PA 431, MCL 18.1393.
Sec. 229. There is herby created and established under the
jurisdiction and control of the department a revolving account to
be known as the Regional Training Institute conference center
account. All of the fees and other revenues generated from the
operation of the Regional Training Institute conference center
shall be deposited in the Regional Training Institute conference
center account. Appropriations shall be made from the account for
the support of program operations and the maintenance and
operations of the Regional Training Institute, the construction and
maintenance of Morale, Welfare and Recreation facilities on Fort
Custer or training areas within Michigan, and shall not exceed the
estimated revenues for the fiscal year in which they are made,
together with unexpended balances from prior years. The department
shall submit and annual report of operations and expenditures
regarding the Regional Training Institute conference center account
to the senate and house of representatives standing committees on
appropriations, the fiscal agencies, and the state budget director
at the end of the fiscal year.
Sec. 230. The Regional Training Institute conference center
shall be available but not limited to the following:
(a) Military personnel.
(b) Federal, state, and local government agencies.
(c) Educational institutions.
(d) Nonprofit corporations or associations organized pursuant
to the nonprofit corporation act, 1962 PA 162, MCL 450.2101 to
450.3192.
(e) Community service clubs.
(f) Groups of persons with disabilities.
(g) Members of the legislature for the purposes related to the
business of the legislature.
(h) Entities and organizations that wish to use the conference
center to host an event that has a military agenda.
HEADQUARTERS AND ARMORIES
Sec. 302. (1) The funds appropriated in this bill for private
donations to the challenge program shall be considered state
restricted revenue, and unexpended funds remaining at the close of
the fiscal year shall not lapse to the general fund but shall be
carried forward to the subsequent fiscal year.
(2) The department may charge a parent or guardian of a
participant in the challenge program a fee for participating in the
program if the participant is a member of a family with an income
that exceeds 200% of the federal poverty guidelines as published by
the United States department of health and human services. The
amount charged the parent or guardian shall not exceed the per-
student state share cost of administering the program. The parent
or guardian shall be notified of any charge to be assessed under
this subsection prior to enrollment of the child in the program.
(3) The department shall take steps to insure that at least
75% of the participants in the ChalleNGe program are members of
families with incomes at or below 200% of the federal poverty
level.
Sec. 304. The department shall partner with the department of
human services to identify youth who may be eligible for the
challenge program from those youth served by department of human
services programs. These eligible youth shall be given priority for
enrollment in the program.
VETERANS SERVICE ORGANIZATIONS
Sec. 501. (1) Money appropriated in part 1 for grants to
veterans service organizations shall be used only for salaries,
wages, related personnel costs, training, and equipment for
accredited veteran service advocacy officers and necessary support
and managerial staff. Training shall be provided for service
advocacy officers and shall be conducted by accredited advocacy
officers.
(2) To receive a grant from the money appropriated in part 1,
a veterans service organization shall meet the following
eligibility requirements:
(a) Be congressionally chartered by the United States
congress.
(b) Be an active participating member of the Michigan veterans
organizations' rehabilitation and veterans service committee and
abide by its rules, guidelines, and programs.
(c) Demonstrate the receipt of monetary or service support
from its own organization.
(d) Comply with the department's and the legislature’s
requirements of accounting audits, service work activity,
accounting of recoveries, listing of volunteer hours, budget
requests, and other requirements specified in subsection (3).
(e) For a veterans service organization founded after
September 30, 1989, be in operation and providing service to
Michigan veterans for not less than 2 years before receiving an
initial state grant. During this 2-year period of time, the
organization shall file a listing of service work activity and an
accounting of recoveries with the department, the senate and house
fiscal agencies, the senate and house of representatives
appropriations subcommittees on military affairs, and the state
budget office on forms as prescribed by the department.
(3) A veterans service organization receiving a grant from the
money appropriated in part 1 shall file with the department an
accounting of its expenditures, audited and certified by a
certified public accountant, within 120 days after the
organization's fiscal year end. Each organization shall provide a
detailed budget request for the fiscal year ending September 30,
2009 to the department by November 15, 2007. Each veterans service
organization shall provide 5 copies of a listing of all service
activity, an accounting of recoveries, and a listing of volunteer
hours for the fiscal year ending September 30, 2007 to the
department by January 31, 2008. The listing of volunteer hours
shall include the hours, services, and donations provided to
residents of the Grand Rapids veterans' home and the D.J. Jacobetti
veterans' home. Each veterans service organization shall provide a
copy of the most recent and completed internal revenue service form
990 to the department at the end of the fiscal year ending
September 30, 2007. A veterans service organization receiving a
grant from the money appropriated in part 1 shall use the forms
recommended by the Michigan veterans organizations rehabilitation
and veterans service committee for filing reports required by this
bill. The department shall forward information required under this
section to the senate and house fiscal agencies, the senate and
house of representatives appropriations subcommittees on military
affairs, and the state budget office.
(4) The veterans service directors committee and the
department shall take steps to improve the coordination of veterans
benefits counseling in the state to maximize the effective and
efficient use of taxpayer dollars in this goal and to ensure that
every veteran is served.
(5) To accomplish the goal of subsection (4), the veterans
service directors committee and the department shall take steps to
increase their responsibility in the administration, management,
oversight, and outreach of the delivery of services to veterans.
The veterans service directors committee and the department shall
involve county veterans counselors and representatives from the
Michigan veterans trust fund to work in concert to identify,
implement, and evaluate steps to do all of the following:
(a) Increase the veterans service directors committee and the
department's role in working directly with the United States
department of veterans' affairs to enhance the delivery of services
to Michigan veterans.
(b) Increase the number of initial claims filed with the
United States department of veterans' affairs on behalf of veterans
for service-connected disability or pension benefits. The veterans
service directors committee and the department may work toward
either an absolute increase of approved claims or an increase in
the percentage of Michigan veterans with approved claims.
(c) Develop methods to increase rates of recovery paid by the
United States department of veterans' affairs to Michigan veterans
either by an increase in compensation paid per approved claim or
increase in compensation paid on a per capita basis.
(d) Expand training opportunities for veterans service
organization service officers.
(e) Increase either the number or percentage of Michigan
veterans enrolled in the veterans administration health care
system.
(f) Publicize the availability, benefit, and value of burial
in the Fort Custer and Great Lakes national cemeteries.
(g) Review each grant recipient's performance under the
program and require that performance be a major consideration in
the future funding of each grant recipient.
(h) Identify areas of redundancy which may exist among
services provided by veterans service organizations grantees,
Michigan veterans trust fund county committees, and county veterans
counselors and provide a proposal on how any redundancies may be
minimized and identify specific cost savings which could result.
VETERANS' HOMES
Sec. 603. The money appropriated in this bill for the boards
of managers may be expended for facility improvements, the purchase
and repair of equipment and furnishings, member services, and other
purposes that benefit the Grand Rapids veterans' home and the D.J.
Jacobetti veterans' home.
VETERANS' TRUST FUND
Sec. 703. By April 1, 2009, the department shall submit to the
senate and house of representatives appropriations subcommittees on
military affairs and the state budget office a detailed annual
report of the Michigan veterans’ trust fund for fiscal year 2007-
2008. The report shall include information on grants provided from
the emergency grant program, including details concerning the
methodology of allocations, the selection of emergency grant
program authorized agents, and a detailed breakdown of trust fund
expenditures for that year. The report shall also provide an update
on the department's efforts to reduce program administrative costs
and restore the Michigan veterans trust fund corpus to its original
amount of $50,000,000.00.