FY 2011-12 SUPPLEMENTAL                                                                          H.B. 4289:

                                                                                              SUMMARY AS ENACTED

House Bill 4289 (as enacted)                                                     PUBLIC ACT 89 OF 2012

Sponsor:  Representative Chuck Moss

House Committee:  Appropriations

Senate Committee:  Appropriations

Date Completed:  4-12-13

CONTENT

The bill would provide supplemental appropriations for fiscal year (FY) 2011-12 for multiple State departments.  These supplemental appropriations encompass portions of four separate State Budget Office (SBO) recommendations that total $85.4 million in Adjusted Gross appropriations and $38.2 million in State General Fund/General Purpose (GF/GP) appropriations, as well as an additional $3.0 million in GF/GP appropriations for Graduate Medical Education that was legislatively initiated.  Also legislatively initiated is a fund source shift in the Department of Community Health that would reduce GF/GP revenue by $106.9 million and replace it with $106.9 million in Medicaid Benefits Trust Fund revenue; $106.9 million GF/GP would then be transferred to the State's Budget Stabilization Fund via boilerplate Section 203.  In FY 2010-11, $213.8 million GF/GP was appropriated to the Medicaid Benefits Trust Fund as a reserve for potential Federal disallowances regarding the State's Medicaid program.  The appropriation of $106.9 million from the Medicaid Benefits Trust Fund would reduce this reserve by half, so it could be necessary to tap the Budget Stabilization Fund to pay a portion of the disallowances, if and when they are incurred.

FISCAL IMPACT

The bill would increase FY 2011-12 Adjusted Gross State appropriations by $72.6 million and State GF/GP appropriations by $33.5 million, if the GF/GP amount is adjusted to reflect the transfer of $106.9 million GF/GP to the Budget Stabilization Fund.  This compares to the Governor's recommended level of FY 2011-12 supplemental appropriations of $85.4 million Adjusted Gross and $38.2 million GF/GP.  The Senate Fiscal Agency estimates that the FY 2011-12 State GF/GP balance sheet, when adjusted for the supplemental appropriations included in House Bill 4289 (S-2), would have a projected year-end balance of approximately $510.0 million, all of which would be carried forward to fund appropriations recommended for FY 2012-13.

The primary difference between the Governor's recommendation and the Senate/Enacted bill, other than the transfer of $106.9 million to the Budget Stabilization Fund, is that portions of the Governor's public safety initiative totaling $20.0 million in Adjusted Gross and $7.0 million in GF/GP appropriations are not included in House Bill 4289.  The $8.9 million in Adjusted Gross and $3.0 million in GF/GP appropriations that were added for Graduate Medical Education, coupled with $1.6 million in Adjusted Gross and $0.7 million in GF/GP appropriations recommended by the Governor that were not included in House Bill 4289 (S-2), result in an Adjusted Gross appropriation reduction of $12.7 million and a GF/GP reduction of $4.7 million from the Governor's recommended level of appropriations.  Table 1 compares the Governor's FY 2011-12 Adjusted Gross and GF/GP supplemental recommendations by department to the appropriations recommended by the House and Senate.

Boilerplate Language Sections

Sec. 201. Records amount of total State Spending and payments to local units of government included in the bill.

Sec. 202. Subjects appropriations and expenditures in the bill to the provisions of the Management and Budget Act.

Sec. 203. Transfers $106.9 million from the State General Fund to the Budget Stabilization Fund.

Sec. 301. Appropriates up to $10.0 million to the Department of Community Health for special Medicaid reimbursement in order to increase hospital uncompensated care payments.  The appropriation would be contingent on the existence of allowable room within the Federal disproportionate share hospital allotment and approval by the Federal Centers for Medicare and Medicaid Services.  The Governor vetoed this section.

Sec. 351.  Allows the Department of Education to issue a request for proposals for a statewide license for all school districts to utilize an Internet-based computer adaptive testing service to test students.

Sec. 401. Requires the Department of Human Services to pay administrative rates of not less than $37 and not less than $28, for providers of foster care services and general independent living services, respectively.  This new section does not include administrative rates for specialized independent living services providers.  Enacting section 1 (see below) would repeal the existing administrative rates section, which does include an administrative rate for specialized independent living services.

Sec. 451. Requires the Department of Licensing and Regulatory Affairs to comply with Federal and State rules and regulations for Michigan's centers for independent living, and to provide quarterly reports on outcomes.

Sec. 501. Cancels a Department of State Police lease for the Richmond State Police post, and prohibits any expenditures related to the property 90 days after this bill's effective date.

Sec. 601. Requires the Department of Transportation to use the $200,000 appropriation for welcome centers first to maintain a minimum of eight hours of operation, seven days per week, at the Mackinaw City, St. Ignace, and Sault Ste. Marie welcome centers; and requires any remaining funds to be distributed equally among the State's remaining welcome centers.

Enacting section 1. Repeals Section 546 of the FY 2011-12 Department of Human Services annual appropriation act (Article X of Public Act 63 of 2011), which sets administrative rates for foster care providers (see Sec. 401 above).

                                                                                       Fiscal Analyst:  Ellen Jeffries

S1112\s4289es

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.

Table 1

House Bill 4289:  FY 2011-12 Supplemental Recommendations
	Governor's Rec		House			Senate/Enacted
Department/Budget Area	Adj. Gross	GF/GP	Adj. Gross	GF/GP		Adj. Gross	GF/GP
Agriculture & Rural Development
Indemnification for animals lost to tuberculosis.....	$140,000	$140,000	$0		$0	$0	$0
Total Agriculture & Rural Development..........	$140,000	$140,000	$0		$0	$0	$0
Attorney General
Public safety initiative........................................	900,000	900,000	900,000		900,000	900,000	900,000
Redistricting defense..........................................	350,000	350,000	0		0	0	0
Health insurance claims assessment....................	100,000	0	0		0	0	0
Total Attorney General....................................	$1,350,000	$1,250,000	$900,000		$900,000	$900,000	$900,000
Community Health
Restore disproportionate share (DSH) payments..	9,640,500	0	9,640,500		0	9,640,500	0
Restore Wayne State psychiatric DSH payment....	8,520,900	0	8,520,900		0	8,520,900	0
Special indigent care agreements........................	7,220,400	0	7,220,400		0	7,220,400	0
Restore Medicaid chiropractic..............................	450,000	152,400	450,000		152,400	450,000	152,400
Bronson DSH payment.......................................	330,200	111,800	330,200		111,800	330,200	111,800
Brain injury treatment........................................	200,000	100,000	200,000		100,000	200,000	100,000
Donated dental services.....................................	25,000	25,000	25,000		25,000	25,000	25,000
Graduate medical education...............................	0	0	8,860,000		3,000,000	8,860,000	3,000,000
Medical services fund shift GF to Medicaid Trust....	0	0	0		(106,900,000)	0	(106,900,000)
Total Community Health.................................	$26,387,000	$389,200	$35,247,000		($103,510,800)	$35,247,000	($103,510,800)
Corrections
Public safety initiative........................................	3,000,000	3,000,000	3,000,000		3,000,000	3,000,000	3,000,000
Camp Brighton cleanup......................................	400,000	400,000	400,000		400,000	400,000	400,000
Total Corrections............................................	$3,400,000	$3,400,000	$3,400,000		$3,400,000	$3,400,000	$3,400,000
Education
Implement charter cap elimination......................	125,000	125,000	125,000		125,000	125,000	125,000
Total Education...............................................	$125,000	$125,000	$125,000		$125,000	$125,000	$125,000
Environmental Quality
Submerged logs permit program (restricted rev.).	110,000	0	0		0	0	0
Total Environmental Quality...........................	$110,000	$0	$0		$0	$0	$0
Judiciary
Net costs for two Court of Appeals judges............	171,300	171,300	0		0	0	0
Total Judiciary................................................	$171,300	$171,300	$0		$0	$0	$0
Licensing & Regulatory Affairs
Centers for independent living............................	1,500,000	1,500,000	1,500,000		1,500,000	1,500,000	1,500,000
Tax tribunal backlog..........................................	1,500,000	0	1,500,000		0	1,500,000	0
Regulation of fireworks' sales.............................	470,000	0	470,000		0	470,000	0
Total Licensing & Regulatory Affairs..............	$3,470,000	$1,500,000	$3,470,000		$1,500,000	$3,470,000	$1,500,000
Military & Veterans Affairs
Capital outlay-water system repairs....................	300,000	300,000	300,000		300,000	300,000	300,000
Total Military & Veterans Affairs.....................	$300,000	$300,000	$300,000		$300,000	$300,000	$300,000
Natural Resources
At-risk youth employ-Det., Flint, Pontiac, Saginaw	2,000,000	2,000,000	0		0	0	0
Total Natural Resources.................................	$2,000,000	$2,000,000	$0		$0	$0	$0
State
Commercial driver's license medical card.............	1,000,000	1,000,000	1,000,000		1,000,000	1,000,000	1,000,000
Total State......................................................	$1,000,000	$1,000,000	$1,000,000		$1,000,000	$1,000,000	$1,000,000
State Police
Fleet costs........................................................	1,900,000	1,900,000	1,900,000		1,900,000	1,900,000	1,900,000
Public safety initiative........................................	1,500,000	1,500,000	1,500,000		1,500,000	1,500,000	1,500,000
Collins Road lease.............................................	750,000	750,000	750,000		750,000	750,000	750,000
Internet Crimes Against Children ARRA funding....	95,000	0	95,000		0	95,000	0
Trooper recruit school (110.0 FTEs).....................	6,789,000	6,789,000	6,789,000		6,789,000	6,789,000	6,789,000
Total State Police............................................	$11,034,000	$10,939,000	$11,034,000		$10,939,000	$11,034,000	$10,939,000
Technology, Management, & Budget
Emergency operations center planning grant........	80,000	80,000	80,000		80,000	80,000	80,000
Total Technology, Management, & Budget......	$80,000	$80,000	$80,000		$80,000	$80,000	$80,000
Transportation
Rural rail infrastructure improvements (CTF)........	1,000,000	0	1,000,000		0	1,000,000	0
Woodward corridor transit study (CTF).................	750,000	0	0		0	0	0
Southeast Mich. regional transit authority (CTF)....	250,000	0	250,000		0	250,000	0
Welcome center operations................................	200,000	0	200,000		200,000	200,000	0
Total Transportation.......................................	$2,200,000	$0	$1,450,000		$200,000	$1,450,000	$0
Treasury-Operations
Office of fiscal responsibility...............................	10,000,000	10,000,000	10,000,000		10,000,000	10,000,000	10,000,000
Payments in lieu of taxes (PILT)..........................	3,679,900	1,226,000	3,679,900		1,226,000	3,679,900	1,226,000
Health insurance claims assessment....................	1,257,600	0	1,257,600		0	1,257,600	0
Total Treasury-Operations..............................	$14,937,500	$11,226,000	$14,937,500		$11,226,000	$14,937,500	$11,226,000
Treasury-Revenue Sharing
Competitive grants for interlocal efforts...............	10,000,000	0	0		0	0	0
Total Treasury-Revenue Sharing.....................	$10,000,000	$0	$0		$0	$0	$0
Treasury-Strategic Fund
Pre-college engineering......................................	680,100	680,100	680,100		680,100	680,100	680,100
Talent fund/job training for structurally unemployed......................................................	5,000,000	5,000,000	0		0	0	0
Land bank clear tax-reverted property titles.........	3,000,000	0	0		0	0	0
Total Treasury-Strategic Fund........................	$8,680,100	$5,680,100	$680,100		$680,100	$680,100	$680,100
Total Supplemental Appropriations................	$85,384,900	$38,200,600	$72,623,600		($73,160,700)	$72,623,600	($73,360,700)