HOUSE SUBSTITUTE FOR SENATE SUBSTITUTE FOR
HOUSE BILL NO. 5014
A bill to make, supplement, and adjust appropriations for
various state departments and agencies and for the legislative
branch for the fiscal year ending September 30, 2012; to provide
for the expenditure of the appropriations; and to repeal acts and
parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 1
LINE-ITEM APPROPRIATIONS
Sec. 101. There is appropriated for the various state
departments and agencies to supplement appropriations for the
fiscal year ending September 30, 2012, from the following funds:
APPROPRIATION SUMMARY
Full-time equated classified positions............ 0.0
GROSS APPROPRIATION.................................... $ 351,818,900
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 30,613,800
ADJUSTED GROSS APPROPRIATION........................... $ 321,205,100
Federal revenues:
Total federal revenues................................. 250,969,200
Special revenue funds:
Total local revenues................................... 0
Total private revenues................................. 89,000
Total other state restricted revenues.................. (99,214,200)
State general fund/general purpose..................... $ 169,361,100
Sec. 102. DEPARTMENT OF COMMUNITY HEALTH
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION.................................... $ 320,446,100
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 0
ADJUSTED GROSS APPROPRIATION........................... $ 320,446,100
Federal revenues:
Total federal revenues................................. 250,969,200
Special revenue funds:
Total local revenues................................... 0
Total private revenues................................. 0
Total other state restricted revenues.................. (99,214,200)
State general fund/general purpose..................... $ 168,691,100
(2) COMMUNITY MENTAL HEALTH/SUBSTANCE ABUSE
SERVICES PROGRAMS
Medicaid mental health services........................ $ 68,369,300
Medicaid adult benefits waiver......................... 1,019,400
Medicaid substance abuse services...................... 1,485,400
GROSS APPROPRIATION.................................... $ 70,874,100
Appropriated from:
Federal revenues:
Total federal revenues................................. 46,876,100
State general fund/general purpose..................... $ 23,998,000
(3) MEDICAL SERVICES ADMINISTRATION
Electronic health record incentive program............. $ 119,388,800
GROSS APPROPRIATION.................................... $ 119,388,800
Appropriated from:
Federal revenues:
Total federal revenues................................. 117,989,900
State general fund/general purpose..................... $ 1,398,900
(4) MEDICAL SERVICES
Health plan services................................... $ 130,183,200
Subtotal basic medical services program................ 130,183,200
GROSS APPROPRIATION.................................... $ 130,183,200
Appropriated from:
Federal revenues:
Total federal revenues................................. 86,103,200
Special revenue funds:
Total other state restricted revenues.................. (99,214,200)
State general fund/general purpose..................... $ 143,294,200
Sec. 103. DEPARTMENT OF EDUCATION
(1) APPROPRIATION SUMMARY
Full-time equated classified positions........... 36.0
GROSS APPROPRIATION.................................... $ 206,285,800
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 0
ADJUSTED GROSS APPROPRIATION........................... $ 206,285,800
Federal revenues:
Total federal revenues................................. 164,151,700
Special revenue funds:
Total local revenues................................... 0
Total private revenues................................. 89,000
Total other state restricted revenues.................. 0
State general fund/general purpose..................... $ 42,045,100
(2) STATE BOARD OF EDUCATION/OFFICE OF THE
SUPERINTENDENT
Unclassified positions................................. $ 89,000
GROSS APPROPRIATION.................................... $ 89,000
Appropriated from:
Special revenue funds:
Private revenues....................................... 89,000
State general fund/general purpose..................... $ 0
(3) EARLY CHILDHOOD EDUCATION AND FAMILY SERVICES
Full-time equated classified positions......... (26.0)
Early childhood education and family services--(26.0)
FTE positions........................................ $ (4,295,700)
GROSS APPROPRIATION.................................... $ (4,295,700)
Appropriated from:
Federal revenues:
Federal revenues....................................... (3,388,300)
Special revenue funds:
Certification fees..................................... (59,100)
State general fund/general purpose..................... $ (848,300)
(4) MICHIGAN OFFICE OF GREAT START
Full-time equated classified positions........... 62.0
Office of great start operations--61.0 FTE positions... $ 20,441,700
Child development and care external support............ 30,613,800
Head start collaboration office--1.0 FTE positions..... 281,300
Child development and care public assistance........... 159,155,700
GROSS APPROPRIATION.................................... $ 210,492,500
Appropriated from:
Federal revenues:
Federal revenues....................................... 167,540,000
Special revenue funds:
Certification fees..................................... 59,100
State general fund/general purpose..................... $ 42,893,400
Sec. 104. EXECUTIVE OFFICE
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION.................................... $ 200,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 0
ADJUSTED GROSS APPROPRIATION........................... $ 200,000
Federal revenues:
Total federal revenues................................. 0
Special revenue funds:
Total local revenues................................... 0
Total private revenues................................. 0
Total other state restricted revenues.................. 0
State general fund/general purpose..................... $ 200,000
(2) GOVERNOR'S COUNCIL ON EDUCATOR EFFECTIVENESS
Governor's council on educator effectiveness
operations........................................... $ 200,000
GROSS APPROPRIATION.................................... $ 200,000
Appropriated from:
State general fund/general purpose..................... $ 200,000
Sec. 105. DEPARTMENT OF HUMAN SERVICES
(1) APPROPRIATION SUMMARY
Full-time equated classified positions......... (36.0)
GROSS APPROPRIATION.................................... $ (175,583,000)
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 30,613,800
ADJUSTED GROSS APPROPRIATION........................... $ (206,196,800)
Federal revenues:
Total federal revenues................................. (164,151,700)
Special revenue funds:
Total local revenues................................... 0
Total private revenues................................. 0
Total other state restricted revenues.................. 0
State general fund/general purpose..................... $ (42,045,100)
(2) EXECUTIVE OPERATIONS
Full-time equated classified positions......... (10.0)
Salaries and wages--(9.0) FTE positions................ $ (498,500)
Contractual services, supplies, and materials.......... (5,400)
AFC, children's welfare and day care licensure......... 0
Demonstration projects--(1.0) FTE position............. (281,300)
State office of administrative hearings and rules...... 0
GROSS APPROPRIATION.................................... $ (785,200)
Appropriated from:
Interdepartmental grant revenues:
IDG from department of education....................... 14,694,200
Federal revenues:
Total other federal revenues........................... (15,423,100)
State general fund/general purpose..................... $ (56,300)
(3) ADULT AND FAMILY SERVICES
Office of program policy............................... $ 0
GROSS APPROPRIATION.................................... $ 0
Appropriated from:
Interdepartmental grant revenues:
IDG from department of education....................... 25,000
Federal revenues:
Total other federal revenues........................... (25,000)
State general fund/general purpose..................... $ 0
(4) CHILDREN'S SERVICES
ECIC, early childhood investment corporation........... $ (12,723,000)
GROSS APPROPRIATION.................................... $ (12,723,000)
Appropriated from:
Federal revenues:
Total other federal revenues........................... (12,723,000)
State general fund/general purpose..................... $ 0
(5) CHILD WELFARE SERVICES
Contractual services, supplies, and materials.......... $ 0
Administrative support workers......................... 0
Second line supervisors and technical staff............ 0
Foster care payments................................... (615,000)
Tribal foster care payments............................ 615,000
GROSS APPROPRIATION.................................... $ 0
Appropriated from:
Interdepartmental grant revenues:
IDG from department of education....................... 235,000
Federal revenues:
Total other federal revenues........................... (235,000)
State general fund/general purpose..................... $ 0
(6) LOCAL OFFICE STAFF AND OPERATIONS
Field staff salaries and wages......................... $ 0
Donated funds positions................................ 0
Contractual services, supplies, and materials.......... 0
GROSS APPROPRIATION.................................... $ 0
Appropriated from:
Interdepartmental grant revenues:
IDG from department of education....................... 7,716,000
Federal revenues:
Total other federal revenues........................... (7,716,000)
State general fund/general purpose..................... $ 0
(7) CENTRAL SUPPORT ACCOUNTS
Travel................................................. $ (1,800)
Occupancy charge....................................... 0
Rent................................................... 0
Payroll taxes and fringe benefits...................... (268,900)
GROSS APPROPRIATION.................................... $ (270,700)
Appropriated from:
Interdepartmental grant revenues:
IDG from department of education....................... 6,000,000
Federal revenues:
Total other federal revenues........................... (6,270,700)
State general fund/general purpose..................... $ 0
(8) PUBLIC ASSISTANCE
Full-time equated classified positions......... (26.0)
Family independence program............................ $ 0
Licensed and registered child development and care..... (99,312,900)
Enrolled child development and care.................... (59,842,800)
Day care technology and oversight--(26.0) FTE
positions............................................ (2,618,400)
GROSS APPROPRIATION.................................... $ (161,774,100)
Appropriated from:
Federal revenues:
Total other federal revenues........................... (119,785,300)
State general fund/general purpose..................... $ (41,988,800)
(9) INFORMATION TECHNOLOGY
Information technology services and projects........... $ (30,000)
GROSS APPROPRIATION.................................... $ (30,000)
Appropriated from:
Interdepartmental grant revenues:
IDG from department of education....................... 1,943,600
Federal revenues:
Total other federal revenues........................... (1,973,600)
State general fund/general purpose..................... $ 0
Sec. 106. LEGISLATURE
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION.................................... $ 470,000
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 0
ADJUSTED GROSS APPROPRIATION........................... $ 470,000
Federal revenues:
Total federal revenues................................. 0
Special revenue funds:
Total local revenues................................... 0
Total private revenues................................. 0
Total other state restricted revenues.................. 0
State general fund/general purpose..................... $ 470,000
(2) LEGISLATIVE COUNCIL
Legislative council.................................... $ 470,000
GROSS APPROPRIATION.................................... $ 470,000
Appropriated from:
State general fund/general purpose..................... $ 470,000
Sec. 107. DEPARTMENT OF TREASURY
(1) APPROPRIATION SUMMARY
GROSS APPROPRIATION.................................... $ 0
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers............................................ 0
ADJUSTED GROSS APPROPRIATION........................... $ 0
Federal revenues:
Total federal revenues................................. 0
Special revenue funds:
Total local revenues................................... 0
Total private revenues................................. 0
Total other state restricted revenues.................. 0
State general fund/general purpose..................... $ 0
(2) REVENUE SHARING
Economic vitality incentive program.................... $ (200,000,000)
Economic vitality incentive program.................... 200,000,000
Economic vitality incentive program, 1-time basis
only................................................. (15,000,000)
Economic vitality incentive program, 1-time basis
only................................................. 15,000,000
GROSS APPROPRIATION.................................... $ 0
Appropriated from:
Special revenue funds:
Sales tax revenue...................................... 0
State general fund/general purpose..................... $ 0
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
GENERAL SECTIONS
Sec. 201. In accordance with the provisions of section 30 of
article IX of the state constitution of 1963, total state spending
from state resources in this appropriation act for the fiscal year
ending September 30, 2012 is $70,146,900.00 and state
appropriations paid to local units of government are
$23,998,000.00. The itemized statement below identifies
appropriations from which spending to local units of government
will occur:
DEPARTMENT OF COMMUNITY HEALTH
Medicaid mental health services........................ $ 23,149,800
Medicaid adult benefits waiver......................... 345,200
Medicaid substance abuse services...................... $ 503,000
TOTAL.................................................. $ 23,998,000
Sec. 202. The appropriations made and expenditures authorized
under this act and the departments, commissions, boards, offices,
and programs for which appropriations are made under this act are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
DEPARTMENT OF HUMAN SERVICES
Sec. 301. From the funds appropriated in part 1 for foster
care, the department shall provide 50% reimbursement to Indian
tribal governments for foster care expenditures for children who
are under the jurisdiction of Indian tribal courts and who are not
otherwise eligible for federal foster care cost sharing.
DEPARTMENT OF TREASURY
Sec. 402. (1) From the funds appropriated in fiscal year 2011-
2012 to the economic vitality incentive program, $5,000,000.00 is
to be used for assistance grants to cities, villages, townships,
and counties to offset the costs associated with mergers,
interlocal agreements, and cooperative efforts for those cities,
villages, townships, and counties that elect to combine government
operations. Grant funding shall be available for mergers,
interlocal agreements, and cooperative efforts that occur on or
after October 1, 2011. The department of treasury shall develop an
application process and method of grant distribution.
(2) From the funds appropriated in fiscal year 2011-2012 to
the economic vitality incentive program, $210,000,000.00 is to be
used for grants to cities, villages, and townships such that,
subject to fulfilling the requirements under subsection (3) (a),
(b), or (c), each city, village, or township that received a
payment under section 950(2) of 2009 PA 128, greater than $4,500.00
will be eligible to receive a maximum of 67.837363% of its total
payment received under section 950(2) of 2009 PA 128, rounded to
the nearest dollar. For the purposes of this subsection, any city
or village that according to the 2010 federal decennial census is
determined to have population in more than 1 county will be treated
as a single entity when determining the payment received under
section 950(2) of 2009 PA 128.
(3) Cities, villages, and townships eligible to receive a
potential payment from the allocation under subsection (2) may
qualify to receive economic vitality incentive program payments
under 1 or more of the following 3 categories:
(a) Category 1, accountability and transparency, requires each
eligible city, village, or township to certify that by December 1,
2011, it has produced, and has made readily available to the
public, a citizen's guide and a performance dashboard of its local
finances, including a recognition of its unfunded liabilities. Each
city, village, and township applying for a payment under this
category shall submit a copy of the citizen's guide and a copy of
the performance dashboard to the department of treasury by December
1, 2011.
(b) Category 2, consolidation of services, requires each
eligible city, village, or township to certify that by January 1,
2012, it has a plan with 1 or more proposals to increase its
existing level of cooperation, collaboration, and consolidation,
either within the jurisdiction or with other jurisdictions. A plan
shall include a listing of any previous services consolidated with
the cost savings realized from each consolidation and an estimate
of the potential savings for any new service consolidations being
planned. A plan shall be made readily available to the public. Each
city, village, and township applying for a payment under this
subdivision shall submit a copy of the cooperation, collaboration,
and consolidation plan to the department of treasury.
(c) Category 3, employee compensation, requires each eligible
city, village, or township to certify that by May 1, 2012, it has
developed and publicized an employee compensation plan that the
city, village, or township intends to implement with any new,
modified, or extended contract or employment agreements for
employees not covered under contract or employment agreement. The
employee compensation plan that each city, village, or township
plans to achieve shall be made available for public viewing in the
city, village, or township clerk's office or posted on a publicly
accessible Internet site and must be submitted to the department of
treasury. At a minimum, the employee compensation plan shall
include the following:
(i) New hires who are eligible for retirement plans are placed
on retirement plans that cap annual employer contributions at 10%
of base salary for employees who are eligible for social security
benefits. For employees who are not eligible for social security
benefits, the annual employer contribution is capped at 16.2% of
base salary.
(ii) For defined benefit pension plans, a maximum multiplier of
1.5% for all employees who are eligible for social security
benefits, except, where postemployment health care is not provided,
the maximum multiplier shall be 2.25%. For all employees who are
not eligible for social security benefits, a maximum multiplier of
2.25%, except, where postemployment health care is not provided,
the maximum multiplier shall be 3.0%.
(iii) For defined benefit pension plans, final average
compensation for all employees is calculated using a minimum of 3
years of compensation and shall not include more than a total of
240 hours of paid leave. Overtime hours shall not be used in
computing the final average compensation for an employee.
(iv) Health care premium costs for new hires shall include a
minimum employee share of 20%; or, an employer's share of the local
health care plan costs shall be cost competitive with the new state
preferred provider organization health plan, on a per-employee
basis.
(4) Economic vitality incentive program payments are subject
to the following conditions:
(a) Except as provided in subsection (d), in order for a city,
village, or township to qualify for a category under subsection
(3)(a), (b), or (c), the city, village, or township shall meet
every criteria for that category including a certification to the
department that it has met the required criteria for that category
and submission of the required citizen's guide and performance
dashboard; cooperation, collaboration, and consolidation plan; or
the employee compensation plan as required by subsection (3)(a),
(b), or (c), respectively. A department of treasury review of the
citizen's guide, dashboard, or plan is not required in order for a
city, village, or township to receive a payment under subsection
(2). The department shall develop a certification process and
method for cities, villages, and townships to follow.
(b) For each category that a city, village, or township
qualifies for in subsection (3), the city, village, or township
shall receive 1/3 of its potential economic vitality incentive
program payment amount calculated in subsection (2).
(c) Payments under this section shall be issued to cities,
villages, and townships for each category in subsection (3) until
the specified due date for the category. After the specified due
date for the category, payments shall be made to a city, village,
or township only if that city, village, or township has complied
with subdivision (a).
(d) If a city, village, or township does not provide the
required certification or fails to submit the required citizen's
guide and performance dashboard; cooperation, collaboration, and
consolidation plan; or the employee compensation plan by the first
day of a payment month, the city, village, or township shall
forfeit the payment in that payment month for the uncertified
category in subsection (3), except that a city, village, or
township that certifies and submits the required documents under
subsection (3)(a) by December 1, 2011 shall not forfeit any
payments.
(e) Any local unit that falsifies certification documents
shall forfeit any future economic vitality incentive program
payments and shall repay this state all economic vitality incentive
program payments it has received.
(f) Payments under this section shall be distributed on the
last business day of October, December, February, April, June, and
August.
(g) Payments distributed under this section may be withheld
pursuant to sections 17a and 21 of the Glenn Steil state revenue
sharing act of 1971, 1971 PA 140, MCL 141.917a and 141.921.
(5) The unexpended funds appropriated in this section for the
economic vitality incentive program are designated as work project
appropriations and any unencumbered or unallotted funds shall not
lapse at the end of the fiscal year and shall continue to be
available for expenditure for projects under subsection (1) until
the projects have been completed. The following is in compliance
with section 451a of the management and budget act, 1984 PA 431,
MCL 18.1451a:
(a) The purpose of the projects is to provide incentive-based
grants to recipients under subsection (1).
(b) The projects will be accomplished by grants to qualified
governmental units.
(c) The total estimated cost of all projects is
$215,000,000.00.
(d) The tentative completion date is September 30, 2016.
REPEALERS
Enacting section 1. The following acts and parts of acts are
repealed:
(a) Section 951 of article VIII of 2011 PA 63.
(b) Section 614 of article X of 2011 PA 63.