FY 2011-12 ENVIRONMENTAL QUALITY BUDGET S.B. 176: GOVERNOR'S RECOMMENDATION


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Senate Bill 176 (as introduced)
Vehicle for Governor's Recommendation line items is Senate Bill 199
Committee: Appropriations

FY 2010-11 Year-to-Date Gross Appropriation $395,665,700
Changes from FY 2010-11 Year-to-Date:
  1. Office of Pollution Prevention and Compliance Assistance (OPPCA). Governor reduced funding for this office, including 9.0 FTEs. Pollution prevention and compliance activities would be reduced as a result of this GF/GP reduction. (1,200,000)
2. Nonmetallic Mine Reclamation. Governor eliminated this program as funding and demand for the program has declined. (23,800)
3. High-Risk Erosion Program. Governor eliminated this program that would result in a GF/GP savings of $250,000. Monitoring of high-risk erosion areas would no longer be done by the Department. (268,000)
4. Geologic Mapping and Information Program. Governor moved this program to WMU. (208,000)
5. Administrative Reductions. Various administrative reductions were recommended. Savings would primarily be achieved by holding positions vacant. 9.0 FTEs would also be eliminated; $1,012,000 of gross savings would be GF/GP. (1,268,500)
6. Air Emissions Fees Increase. Governor proposed an unspecified increase in air emissions fees that are expected to raise an additional $1.0 million for the program. Additional spending authorization of $840,000 was also recommended. 840,000
7. Solid Waste Management Fee Increase. Governor proposed raising these fees from 7 cents to 12 cents per cubic yard. This increase is expected to raise $1.9 million. 0
8. Wastewater Operator Certification Exam Fee. Governor proposed a new fee structure for certification exams. It is estimated that the fee would raise $356,000 and would offset $200,000 in GF/GP funding currently used for the program. 156,000
9. Strategic Water Quality Initiatives Fund. Governor funded nonpoint source cleanups per PA 232 of 2010. It is estimated that $900,000 in annual debt service would be incurred as a result. 30,000,000
10. State Sites Cleanup Fund (SSCUP). Governor recommended spending the remainder of the SSCUP on Part 201 cleanup projects at State-owned sites. 4,400,000
11. Coastal and Inland Water Permit System. Governor recommended replacement of a 25-year-old system that handles these permits as the old system is no longer supported. 3,200,000
12. Fund Shifts. Governor recommended two GF/GP to restricted fund shifts: $400,000 in the Critical Dunes Program and $738,000 in the Hazardous Waste Management Program. This would result in a GF/GP savings of $1,138,000. 0
13. Excess Spending Authorization. Governor reduced various programs in an effort to match those appropriations with available revenue, including a $25.0 million reduction in the Great Lakes Restoration Initiative Federal grant. (31,413,200)
14. Early Retirement Savings. Savings from retirement incentive in FY 2009-10. (738,100)
15. Economic Adjustments. Governor included $6,697,200 Gross, $707,200 GF/GP; DIT $137,600 Gross, $7,100 GF/GP. 6,697,200
Total Changes $10,173,600
  FY 2011-12 Governor's Recommendation $405,839,300
The changes show the differences between the schedule of programs proposed by the Governor and the prior-year line items.


FY 2011-12 ENVIRONMENTAL QUALITY BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2010-11 Year to Date:
  1. Out-of-State Travel. Sections restricting out-of-state travel, as well as attendance to conferences and training seminars were eliminated. (Sec. 209 & 225)
2. Purchasing Guidelines. Sections favoring the purchase of domestic and Michigan-made goods as well as those from depressed and deprived communities were eliminated. (Sec. 210 & 211)
3. Communication with the Legislature. A section prohibiting disciplinary procedures against employees who communicate truthfully with the Legislature was eliminated. (Sec. 212)
4. Restricted Fund and FTE Reports. Sections requiring various reports on State restricted fund balances as well as FTE reports were eliminated. (Sec. 222 & 233)
5. Expenditure Posting. Sections requiring expenditure posting on the internet were eliminated. (Sec. 233 & 234)
6. Small Business Rules. Language prohibiting rules from disproportionately affecting small businesses was eliminated. (Sec. 213)
7. Permits Considered Administratively Complete. A section declaring environmental permits outstanding for more than 2 years as of January 1, 2011 administratively complete was eliminated. (Sec. 218)
8. Refined Petroleum Fund Use. A section stating the Legislature's intent to use the RPF for its intended purpose was eliminated. (Sec. 221)
9. Refined Petroleum Fund Intent to Repay. A section stating the Legislature's intent to repay $70.0 million transferred from the RPF in FY 2006-07 was eliminated. (Sec. 405)
10. Draft Memoranda. A section prohibiting the use of operational memoranda in draft status was eliminated. (Sec. 406)
11. Aquatic Nuisance Control (ANC) Program. A section allocating $100,000 and 1 FTE for the ANC program as well as a report on the program was eliminated. (Sec. 651)
12. Groundwater Dispute Resolution. A section requiring the Department to fund a groundwater dispute resolution program and report to the Legislature with additional funding needs was eliminated. (Sec. 652)
13. Surplus Fund Transfers. The recommendation did not include a section which transferred $2.0 million from the Solid Waste Management Fund Perpetual Care Account to the Solid Waste Management Fund Staff Account. (Sec. 407) Two new transfers were recommended: $2.0 million from the Small Business Pollution Prevention Loan Fund to the Environmental Pollution Prevention Fund, and $1.3 million from the Small Business Pollution Prevention Loan Fund to the Environmental Protection Fund (Sec. 8-305, 8-306 of Executive Recommendation).

Date Completed: 2-28-11 Fiscal Analyst: Josh Sefton This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hideq_gr.doc