FYs 2012-13/2013-14 SUPPLEMENTAL                                                             H.B. 4112:

                                                                                              SUMMARY AS ENACTED

 

 

 

 

 

 

 

 

 

 

 

House Bill 4112 (as enacted)                                                   PUBLIC ACT 102 OF 2013

Sponsor:  Representative Joseph Haveman

House Committee:  Appropriations

Senate Committee:  Appropriations

 

CONTENT

 

The bill would provide supplemental appropriations for fiscal year (FY) 2012-13 and FY 2013-14.  The bill includes caseload and cost adjustments that were recommended by the Governor in February, and revised at the May Consensus Revenue Estimating Conference, for the Departments of Community Health, Education, Human Services, and Treasury.   These caseload and cost changes reduce Adjusted Gross appropriations by $778.3 million and reduce General Fund/General Purpose (GF/GP) appropriations by $59.3 million.  There are Adjusted Gross appropriation changes in the Department of Human Services to reflect additional funding of $57.7 million originally proposed by the State Budget Office (SBO) as legislative contingency fund transfers, and an increase of $100,000 in private funds for the Department of Corrections that also was originally proposed by the SBO as a contingency fund transfer.  The bill includes appropriations of $25.6 million GF/GP pursuant to the SBO's May 31, 2013 letter that certified overspending in the Departments of Agriculture and Rural Development ($500,000), Human Services ($20.0 million), and Military and Veterans Affairs ($5.1 million). There are also $8.3 million of other GF/GP appropriations agreed to as part of the leadership budget agreement, as well as legislatively initiated amounts of $350,000 for a cooperative education grant, $100,000 for a waterway study grant, $600 for capital outlay construction and planning grants, and $3.5 million of State restricted revenue for the student safety hotline.  Table 1 summarizes the FY 2012-13 appropriations in the bill.

 

Table 1

Summary of FY 2012-13 Supplemental Appropriations

Budget Area

Adjusted Gross

Federal

Local/

Private

State Restricted

GF/GP

Ag & Rural Development

          $500,000

                   $0

       ($75,000)

      ($425,000)

       $1,000,000

Attorney General

         2,371,000

                     0

                  0

      2,371,000

                     0

Capital Outlay

                  700

                     0

                  0

                   0

                  700

Community Health

      (96,589,200)

     (71,261,000)

     6,125,300

     (1,183,300)

      (30,270,200)

Corrections

         2,581,700

                     0

     2,581,700

                   0

                     0

Education

      (15,597,700)

     (15,947,700)

                  0

                   0

           350,000

Human Services

    (553,288,300)

   (542,606,200)

     3,627,400

   (14,745,000)

           435,500

Judiciary

           668,300

           668,300

                  0

        (820,000)

           820,000

Licensing & Reg. Affairs

         3,800,000

                     0

                  0

      1,000,000

         2,800,000

Military & Vets Affairs

         5,136,500

                     0

                  0

                   0

         5,136,500

Natural Resources

           100,000

                     0

                  0

                   0

           100,000

State Police

         7,129,000

                     0

                  0

      5,129,000

         2,000,000

Tech., Mgt., & Budget

         1,000,000

                     0

                  0

                   0

         1,000,000

Transportation

       15,396,600

      10,000,000

                  0

      5,396,600

                     0

Treasury-Operations

       (9,192,300)

           250,000

                  0

           57,700

       (9,500,000)

Treasury-Strategic Fund

         1,220,800

                     0

                  0

                   0

         1,220,800

Total

($634,762,900)

($618,896,600)

$12,259,400

($3,219,000)

($24,906,700)

 


FISCAL IMPACT

 

The bill reduces FY 2012-13 Adjusted Gross appropriations by $634.8 million and reduces State GF/GP appropriations by $24.9 million.  The bill increases FY 2013-14 Adjusted Gross appropriations by $2.2 million and GF/GP appropriations by $239,300.  The bill includes appropriations for 15 State budget areas, as well as capital outlay.  Table 2 outlines the Executive, House, and Senate recommendations by budget area and program.

 

Boilerplate Language Sections:  FY 2012-13

 

Sec. 201. General.  Records amount of total State spending and payments to local units of government.

 

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

 

Sec. 251. Attorney General.  Appropriates $3.5 million from the lawsuits settlement proceeds fund to the student safety fund and tie bars the appropriations to enactment of Senate Bill 374.

 

Sec. 252. Attorney General.  Establishes the appropriation for the student safety hotline as a work project and allows carry forward of any unencumbered or unallotted funds.

 

Sec. 301. Capital Outlay.  Revises the total authorized cost for Michigan State University's bio-engineering facility project from $40.3 million to $57.7 million, with an MSU share of $27.7 million and a State Building Authority (SBA) share of $30.0 million.  The $17.4 million increase would be funded entirely by MSU. (SBO letter October 25, 2012)

 

Sec. 302. Capital Outlay.  Approves and authorizes the leases and conveyances for SBA financing for nine university projects, nine community college projects, and various State agency projects for which construction authorization has already been approved; specifies that the Legislature will appropriate sufficient amounts annually to pay the rent obligations.

 

Sec. 303. Capital Outlay.  Approves and authorizes the leases and conveyances for SBA financing for the Lake Superior State University School of Business project and the State Emergency Operations Center; specifies that the Legislature will appropriate sufficient amounts annually to pay the rent obligation. (SBO letter February 7, 2013/SBO request 2013-4)

 

Sec. 401. Community Health.  Allocates $5.0 million in private revenue for the Michigan-Illinois Alliance Medicaid Management Information Systems Project.

 

Sec. 451. Education.  Allocates $350,000 GF/GP for a grant to a district that enrolls new pupils because it entered into a cooperative education program agreement between June 1, 2013 and June 30, 2013, to provide for the education of students in grades 9 to 12; the Albion/Marshall districts' recent agreement would fit this criteria.

 

Sec. 501. Licensing and Regulatory Affairs.  Establishes the appropriation for the Unemployment Insurance Agency's (UIA's) expanded fraud control program as a work project and allows carry forward of any unencumbered or unallotted funds.

 

Sec. 502. Licensing and Regulatory Affairs.  Designates the appropriation for the UIA's expanded fraud control program as an advance on future collections of contingent fund, penalty and interest revenue, and requires repayment to the State no later than September 30, 2015.


 

Sec. 503. Licensing and Regulatory Affairs.  Allocates the funds appropriated for the Bureau of Fire Services, to the Firefighters Training Council; requires funds to be spent pursuant to the Michigan Fireworks Safety Act.

 

Sec. 601. Military and Veterans Affairs.  Increases the cost of the Grand Rapids Veterans' Home canopy project from $500,000 to $1.6 million.  The $1.1 million increase would be funded with $1,040,000 in Federal revenue and $60,000 in State GF/GP revenue.

 

Sec. 650. Natural Resources.  Requires the funds appropriated for the Grand River waterways study to be used for a study on the depth of the river from Lake Michigan to Grand Rapids and the cost of dredging that section.

 

Sec. 701. State Police.   Establishes the appropriation for the DNA analysis program as a work project and allows carry forward of any unencumbered or unallotted funds.

 

Sec. 702. State Police.  Appropriates $4.0 million from the unencumbered balance of the lawsuits settlement proceeds fund to the State forensic laboratory fund.

 

Sec. 703. State Police.  Establishes the appropriation for the student safety hotline as a work project and allows carry forward of any unencumbered or unallotted funds.

 

Sec. 801. Technology, Management, and Budget.  Establishes parameters for the Information Technology Innovation Fund.

 

Sec. 901. Treasury.  Establishes the appropriation within the tax and economic policy line-item for the upgrade of the fuel tracking information technology system as a work project, and allows carry forward of any unencumbered or unallotted funds.

 

Boilerplate Language Sections:  FY 2013-14

 

Sec. 1201. General.  Records amount of total State spending and payments to local units of government.

 

Sec. 1202. General.  Subjects appropriations and expenditures in the bill to the provisions of the Management and Budget Act.

 

Sec. 1301. Natural Resources.  Requires $150,000 to be spent for the hiring and support of an aquatic invasive species specialist.

 

Date Completed:  7-8-13                                                      Fiscal Analyst:  Ellen Jeffries

                                                                                                         Steve Angelotti

 


Table 2

House Bill 4112:  FY 2012-13/FY 2013-14 Supplemental Appropriations

 

Governor’s Recommendation

House-Passed

Senate-Passed/Enacted

Department/Program

Adjusted Gross

GF/GP

Adjusted Gross

GF/GP

Adjusted Gross

GF/GP

Agriculture and Rural Development

 

 

 

 

 

 

Pest management revenue shortfall (SBO 5/31/13 letter).......

$0

$500,000

$0

$500,000

$0

$500,000

Bovine tuberculosis testing.......................................................

500,000

500,000

500,000

500,000

500,000

500,000

Total Agriculture and Rural Development.............................

$500,000

$1,000,000

$500,000

$1,000,000

$500,000

$1,000,000

 

 

 

 

 

 

 

Attorney General

 

 

 

 

 

 

IDGs for builders, fireworks, estate recovery = $839,500.......

$0

$0

$0

$0

$0

$0

Student safety hotline (student safety fund)............................

0

0

0

0

2,371,000

0

Total Attorney General.............................................................

$0

$0

$0

$0

$2,371,000

$0

 

 

 

 

 

 

 

Capital Outlay

 

 

 

 

 

 

LSSU business building-construction authorization..............

$100

$100

$100

$100

$100

$100

State emergency operations center-construction authorization...............................................................................

0

0

0

0

100

100

SVSU Wickes Hall-planning.....................................................

0

0

0

0

100

100

Macomb CC south campus renovation-planning...................

0

0

0

0

100

100

Muskegon CC science laboratory center-planning...............

0

0

0

0

100

100

Southwestern CC science/allied health-planning..................

0

0

0

0

100

100

Kalamazoo CC healthy living campus-planning....................

0

0

0

0

100

100

Total Capital Outlay..................................................................

$100

$100

$100

$100

$700

$700

 

 

 

 

 

 

 

Community Health

 

 

 

 

 

 

Medicaid cost adjustments (February/May consensus).........

($157,244,500)

($50,155,800)

($157,244,500)

($50,155,800)

($157,244,500)

($50,155,800)

Adjust savings from pilot for integration of dual eligibles.....

29,828,700

10,025,400

29,828,700

10,025,400

29,828,700

10,025,400

Adjust medical/children's special health care services.........

25,816,900

9,860,200

25,816,900

9,860,200

25,816,900

9,860,200

Replace $137 million HICA revenue with MBTF/MMATF........

0

0

0

0

0

0

Private grant for response to county health rankings...........

9,700

0

9,700

0

9,700

0

Michigan-Illinois alliance Medicaid management project.....

5,000,000

0

5,000,000

0

5,000,000

0

Total Community Health..........................................................

($96,589,200)

($30,270,200)

($96,589,200)

($30,270,200)

($96,589,200)

($30,270,200)

 

 

 

 

 

 

 

Corrections

 

 

 

 

 

 

Local revenue to operate Detroit detention center.................

$2,481,700

$0

$2,481,700

$0

$2,481,700

$0

Vera Institute grant for postsecondary pilot project...............

100,000

0

100,000

0

100,000

0

Total Corrections......................................................................

$2,581,700

$0

$2,581,700

$0

$2,581,700

$0

 

 

 

 

 

 

 

Education

 

 

 

 

 

 

Child development caseload savings (May consensus)......

($15,947,700)

$0

($15,947,700)

$0

($15,947,700)

$0

Cooperative education grant....................................................

0

0

350,000

350,000

350,000

350,000

Total Education.........................................................................

($15,947,700)

$0

($15,597,700)

$350,000

($15,597,700)

$350,000

 

 

 

 

 

 

 

Human Services

 

 

 

 

 

 

Assistance/child welfare caseload (May consensus)............

($651,297,700)

($19,564,500)

($651,297,700)

($19,564,500)

($651,297,700)

($19,564,500)

Family independence program litigation payments..............

15,000,000

0

15,000,000

0

15,000,000

0

Contingency fund transfer requests........................................

57,709,400

0

57,709,400

0

57,709,400

0

Projected overspending (SBO 5/31/13 letter)..........................

25,300,000

20,000,000

25,300,000

20,000,000

25,300,000

20,000,000

Total Human Services...............................................................

($553,288,300)

$435,500

($553,288,300)

$435,500

($553,288,300)

$435,500

 

 

 

 

 

 

 

Judiciary

 

 

 

 

 

 

Federal grant for appellate public defender program............

$418,300

$0

$418,300

$0

$418,300

$0

Federal grant for drug treatment courts...................................

250,000

0

250,000

0

250,000

0

Replace revenue shortfall in court fee fund with Gen'l Fund.

0

820,000

0

820,000

0

820,000

Total Judiciary...........................................................................

$668,300

$820,000

$668,300

$820,000

$668,300

$820,000

 

 

 

 

 

 

 

Licensing and Regulatory Affairs

 

 

 

 

 

 

Replace worker's comp MBT tax credits with General Fund.

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

Expand unemployment agency fraud control program.........

1,800,000

1,800,000

1,800,000

1,800,000

1,800,000

1,800,000

Increase for firefighters training council (fireworks revenue).....................................................................................................

1,000,000

0

1,000,000

0

1,000,000

0

Total Licensing and Regulatory Affairs.................................

$3,800,000

$2,800,000

$3,800,000

$2,800,000

$3,800,000

$2,800,000

 

 

 

 

 

 

 

Military and Veterans Affairs

 

 

 

 

 

 

Grand Rapids vets home resident aide contract delay

(SBO 5/31/13 letter)....................................................................

$5,136,500

$5,136,500

$5,136,500

$5,136,500

$5,136,500

$5,136,500

Total Military and Veterans Affairs..........................................

$5,136,500

$5,136,500

$5,136,500

$5,136,500

$5,136,500

$5,136,500

 

 

 

 

 

 

 

Natural Resources

 

 

 

 

 

 

Grand River waterway study.....................................................

$0

$0

$0

$0

$100,000

$100,000

Total Natural Resources...........................................................

$0

$0

$0

$0

$100,000

$100,000

 

 

 

 

 

 

 

State Police

 

 

 

 

 

 

Provide trooper/local agency security at events....................

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$2,000,000

$2,000,000

Testing for sexual assault kits (lawsuit proceeds fund).........

4,000,000

0

4,000,000

0

4,000,000

0

Student safety hotline (student safety fund)............................

0

0

0

0

1,129,000

0

Total State Police......................................................................

$6,000,000

$2,000,000

$6,000,000

$2,000,000

$7,129,000

$2,000,000

 

 

 

 

 

 

 

Technology, Management, and Budget

 

 

 

 

 

 

First year SBA funding for LSSU business building...............

$900,000

$900,000

$900,000

$900,000

$900,000

$900,000

Planning grant for new Marshall State Police post................

100,000

100,000

100,000

100,000

100,000

100,000

Add boilerplate for info technology innovation fund.............

0

0

0

0

0

0

Total Technology, Management, and Budget.......................

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

 

 

 

 

 

 

 

Transportation

 

 

 

 

 

 

Local bus operating assistance (CTF revenue)......................

$5,396,600

$0

$5,396,600

$0

$5,396,600

$0

Federal TIGER IV grant for Detroit multimodal projects.........

10,000,000

0

10,000,000

0

10,000,000

0

Total Transportation.................................................................

$15,396,600

$0

$15,396,600

$0

$15,396,600

$0

 

 

 

 

 

 

 

Treasury-Operations

 

 

 

 

 

 

Upgrade Michigan/Virginia/Kentucky fuel tracking IT system.....................................................................................................

$250,000

$0

$250,000

$0

$250,000

$0

Convert MSHDA director to unclassified position..................

57,700

0

57,700

0

57,700

0

Nonpublic dual enrollment savings (May consensus)..........

(9,500,000)

(9,500,000)

(9,500,000)

(9,500,000)

(9,500,000)

(9,500,000)

Total Treasury-Operations.......................................................

($9,192,300)

($9,500,000)

($9,192,300)

($9,500,000)

($9,192,300)

($9,500,000)

 

 

 

 

 

 

 

Treasury-Strategic Fund

 

 

 

 

 

 

Replace land bank fast track rev. shortfall with Gen'l Fund..

$1,220,800

$1,220,800

$1,220,800

$1,220,800

$1,220,800

$1,220,800

Total Treasury-Strategic Fund................................................

$1,220,800

$1,220,800

$1,220,800

$1,220,800

$1,220,800

$1,220,800

 

 

 

 

 

 

 

Total FY 2012-13 Supplemental Appropriations...................

($638,713,500)

($25,357,300)

($638,363,500)

($25,007,300)

($634,762,900)

($24,906,700)

 

 

 

 

 

 

 

FY 2013-14

 

 

 

 

 

 

Community Health:  Mich. childhood immunization registry.....................................................................................................

$0

$0

$0

$0

$89,300

$89,300

Natural Resources:  Aquatic invasive species specialist......

0

0

0

0

150,000

150,000

Transportation: Municipal credit program (CTF revenue)....

0

0

0

0

2,000,000

0

Total FY 2013-14 Supplemental Appropriations...................

$0

$0

$0

$0

$2,239,300

$239,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

S1314/s4112es

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.