0173: SUMMARY OF DIFFERENCES (Date Completed: 5-9-11)

FY 2011-12 CORRECTIONS BUDGET S.B. 173 (S-1): SUMMARY OF DIFFERENCES

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House Bill is H.B. 4526

FY 2011-12 Senate-Passed Gross Appropriation $1,906,249,300
House Changes to Senate-Passed:
1. Central Office Reductions. The Senate anticipated $6.0 million in savings due to reductions in supervisory staff at the Department's central office and two regional administration offices. The House also assumes savings associated with central staff reductions, but in the amount of $3.0 million. 3,000,000
2. New Custody Staff Training. The Senate assumed that the pending closures of the Florence Crane correctional facility and the Muskegon correctional facility would reduce the Department's need for new custody staff. Whereas the Senate anticipated savings of $1.0 million, the House assumed savings of $6.0 million. (5,000,000)
3. Supply Chain Efficiencies. The Senate-passed budget anticipates $15.0 million in additional savings related to supply-chain efficiencies at correctional facilities and in areas such as food service and transportation. The House-passed budget assumes only $3.0 million in additional supply chain savings. 12,000,000
4. Prisoners awaiting Parole. The Senate-passed budget anticipates $15.0 million in savings by allowing prisoners who have not completed all required programming to be considered for parole. The House-passed budget also assumes a reduction in the parole backlog, but through increases in the availability of necessary programming. The House anticipates savings of $7.7 million in this area. 8,300,000
5. Mental Health Consolidation/Privatization. The Senate assumed $10.0 million in savings related to the consolidation of mental health services under MDOC control and the prospective privatization of those services. The House did not concur with this assumption. 10,000,000
6. Closure of Mound Correctional Facility. The House anticipates the closure of the Mound Correctional facility, effective January 1, 2012. This action is associated with $3.3 million in savings in the House-passed budget. The Senate-passed budget did not include this closure. (3,300,000)
7. Public Works Programming. The Senate concurred with the Governor in not including explicit funding for public works programming. The House anticipated $10.0 million in funding for public works; this revenue is expected to be realized through payments provided by the recipients of MDOC public works services. 10,000,000
8. Prison Operations Efficiencies. The House-passed budget includes a 1.5% reduction to the state correctional facilities and the MDOC regional administration offices. The Senate-passed budget did not include this reduction. (16,175,400)
9. Michigan Prisoner Re-Entry Initiative (MPRI). The House-passed budget includes $1.5 million in additional funding for MPRI programming. The Senate-passed budget does not include this additional funding. 1,540,400
10. Other Changes. Additional changes included in the House-passed budget result in a net increase of $10.0 million relative to the Senate-passed budget. 9,959,500
Total Changes $30,324,500
FY 2011-12 House-Passed Gross Appropriation $1,936,573,800

FY 2011-12 CORRECTIONS BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2011-12 Senate-Passed:

1. Expenditure Reductions. The House revised current year language on expenditure reductions to include a reference to the March 2011 Audit of MDOC pharmaceutical expenditures completed by the Michigan Auditor General. The Senate did not include this additional language. (Sec. 235)

2. Span of Control. The Senate included language encouraging the Department to establish and maintain a management-to-staff ratio of 1 supervisor for each 5 employees at the Department's central office in Lansing and at both the northern and southern regional offices. The House did not include this language. ( Senate Sec. 238)

3. Prisoner Re-Entry Pilot with Faith-Based Organization. The House included new language conditioning the expenditure of funds reinvested from the Crane facility closure on the establishment of a pilot program with faith-based non-profit agencies that have established prisoner re-entry programs. (House Sec. 406)

4. County Jail Reimbursement Program (CJRP). The Senate retained current year language setting the reimbursement parameters for CJRP. In contrast, the House included language establishing a revised, three-tiered reimbursement schedule based on sentencing guideline scores. (Sec. 414)

5. Swift-and-Sure Sanctions. The Senate included new language detailing an interdepartmental grant to the Judiciary for the establishment of a "swift-and-sure" sanctions pilot program to be administered by the drug courts. The House did not include this language. (Senate Sec. 507)

6. Report on Pharmaceutical Expenditures. The Senate required a new annual report on MDOC pharmaceutical expenditures and prescribing practices. The House did not include this language. (Senate Sec. 816)

7. Prison Facility Closures. New House language established legislative intent that the MDOC fully consider the potential economic impact on affected communities when making a determination on a potential facility closure. The Senate did not include this language. (House Sec. 935)

8. Cost-Effective Housing Initiative. New House language appropriated $47.9 million for use in housing prisoners in the most cost-effective manner possible; including by exploring the use of public-private partnerships, the use of privately-owned facilities, and the use of recently closed correctional facilities. The Senate did not include this language or the associated appropriation. (House Sec. 936)

9. Drug Testing Services. The Senate included new language directing the Department to contract with a Michigan-based company that provides laboratory oral fluid drug testing services for the procurement of drug testing services in correctional facilities. (Senate Sec. 937)

Date Completed: 5-9-11 Fiscal Analyst: Matthew Grabowski This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. HIcor_ds.doc

FY 2011-12 Senate-Passed Gross Appropriation	$1,906,249,300
House Changes to Senate-Passed:
1. Central Office Reductions. The Senate anticipated $6.0 million in savings due to reductions in supervisory staff at the Department's central office and two regional administration offices. The House also assumes savings associated with central staff reductions, but in the amount of $3.0 million.	3,000,000
2. New Custody Staff Training. The Senate assumed that the pending closures of the Florence Crane correctional facility and the Muskegon correctional facility would reduce the Department's need for new custody staff. Whereas the Senate anticipated savings of $1.0 million, the House assumed savings of $6.0 million.	(5,000,000)
3. Supply Chain Efficiencies. The Senate-passed budget anticipates $15.0 million in additional savings related to supply-chain efficiencies at correctional facilities and in areas such as food service and transportation. The House-passed budget assumes only $3.0 million in additional supply chain savings.	12,000,000
4. Prisoners awaiting Parole. The Senate-passed budget anticipates $15.0 million in savings by allowing prisoners who have not completed all required programming to be considered for parole. The House-passed budget also assumes a reduction in the parole backlog, but through increases in the availability of necessary programming. The House anticipates savings of $7.7 million in this area.	8,300,000
5. Mental Health Consolidation/Privatization. The Senate assumed $10.0 million in savings related to the consolidation of mental health services under MDOC control and the prospective privatization of those services. The House did not concur with this assumption.	10,000,000
6. Closure of Mound Correctional Facility. The House anticipates the closure of the Mound Correctional facility, effective January 1, 2012. This action is associated with $3.3 million in savings in the House-passed budget. The Senate-passed budget did not include this closure.	(3,300,000)
7. Public Works Programming. The Senate concurred with the Governor in not including explicit funding for public works programming. The House anticipated $10.0 million in funding for public works; this revenue is expected to be realized through payments provided by the recipients of MDOC public works services.	10,000,000
8. Prison Operations Efficiencies. The House-passed budget includes a 1.5% reduction to the state correctional facilities and the MDOC regional administration offices. The Senate-passed budget did not include this reduction.	(16,175,400)
9. Michigan Prisoner Re-Entry Initiative (MPRI). The House-passed budget includes $1.5 million in additional funding for MPRI programming. The Senate-passed budget does not include this additional funding.	1,540,400
10. Other Changes. Additional changes included in the House-passed budget result in a net increase of $10.0 million relative to the Senate-passed budget.	9,959,500
Total Changes	$30,324,500
FY 2011-12 House-Passed Gross Appropriation	$1,936,573,800