FY 2012-13 SUPPLEMENTAL H.B. 4112 (H-1):
COMMITTEE SUMMARY
House Bill 4112 (Substitute H-1 as passed by the House)
Sponsor: Representative Joseph Haveman
House Committee: Appropriations
Senate Committee: Appropriations
CONTENT
The bill would provide supplemental appropriations for fiscal year (FY) 2012-13. 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 a legislatively initiated $350,000 cooperative education grant. Table 1 summarizes the 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 |
0 |
0 |
0 |
0 |
0 |
|
Capital Outlay |
100 |
0 |
0 |
0 |
100 |
|
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 |
|
State Police |
6,000,000 |
0 |
0 |
4,000,000 |
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 |
$(638,363,500) |
$(618,896,600) |
$12,259,400 |
$(6,719,000) |
$(25,007,300) |
FISCAL IMPACT
The bill reduces FY 2012-13 Adjusted Gross appropriations by $638.4 million and reduces State GF/GP appropriations by $25.0 million. The bill includes appropriations for 14 State budget areas, as well as capital outlay. Table 2 outlines the Executive and House recommendations by budget area and program.
Boilerplate Language Sections
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. 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 lease and conveyance for SBA financing for the Lake Superior State University School of Business project; 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. 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. 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.
Fiscal Analyst: Ellen Jeffries
Table 2
|
House Bill 4112: FY 2012-13 Supplemental Recommendations |
|||||
|
|
Governor's Recommendation |
House-Passed |
|||
|
Department/Program |
Adjusted Gross |
GF/GP |
Adjusted Gross |
GF/GP |
|
|
Agriculture and Rural Development |
|
|
|
|
|
|
Pesticide/pest management revenue shortfall (5/31/13)............................................................................ |
$0 |
$500,000 |
$0 |
$500,000 |
|
|
Bovine tuberculosis testing............................................ |
500,000 |
500,000 |
500,000 |
500,000 |
|
|
Total Agriculture and Rural Development................ |
$500,000 |
$1,000,000 |
$500,000 |
$1,000,000 |
|
|
|
|
|
|
|
|
|
Attorney General |
|
|
|
|
|
|
IDGs for builders, fireworks, estate recovery = $839,500........................................................................... |
$0 |
$0 |
$0 |
$0 |
|
|
Total Attorney General.................................................. |
$0 |
$0 |
$0 |
$0 |
|
|
|
|
|
|
|
|
|
Capital Outlay |
|
|
|
|
|
|
Construction authorization for LSSU business building.............................................................................. |
$100 |
$100 |
$100 |
$100 |
|
|
Total Capital Outlay........................................................ |
$100 |
$100 |
$100 |
$100 |
|
|
|
|
|
|
|
|
|
Community Health |
|
|
|
|
|
|
Medicaid cost adjustments (February/May consensus)........................................................................ |
($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 |
|
|
Adjust medical/children's special health care services.............................................................................. |
25,816,900 |
9,860,200 |
25,816,900 |
9,860,200 |
|
|
Replace $137 million HICA revenue with MBTF/MMATF................................................................... |
0 |
0 |
0 |
0 |
|
|
Private grant for response to county health rankings............................................................................................. |
9,700 |
0 |
9,700 |
0 |
|
|
Michigan-Illinois alliance Medicaid management project................................................................................ |
5,000,000 |
0 |
5,000,000 |
0 |
|
|
Total Community Health............................................... |
($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 |
|
|
Vera Institute grant for postsecondary pilot project... |
100,000 |
0 |
100,000 |
0 |
|
|
Total Corrections............................................................ |
$2,581,700 |
$0 |
$2,581,700 |
$0 |
|
|
|
|
|
|
|
|
|
Education |
|
|
|
|
|
|
Child development caseload savings (May consensus)........................................................................ |
($15,947,700) |
$0 |
($15,947,700) |
$0 |
|
|
Cooperative education grant......................................... |
0 |
0 |
350,000 |
350,000 |
|
|
Total Education............................................................... |
($15,947,700) |
$0 |
($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) |
|
|
Family independence program litigation payments. |
15,000,000 |
0 |
15,000,000 |
0 |
|
|
Contingency fund transfer requests............................. |
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 |
|
|
Total Human Services................................................... |
($553,288,300) |
$435,500 |
($553,288,300) |
$435,500 |
|
|
|
|
|
|
|
|
|
Judiciary |
|
|
|
|
|
|
Federal grant for appellate public defender program............................................................................. |
$418,300 |
$0 |
$418,300 |
$0 |
|
|
Federal grant for drug treatment courts....................... |
250,000 |
0 |
250,000 |
0 |
|
|
Replace revenue shortfall in court fee fund with General Fund.................................................................... |
0 |
820,000 |
0 |
820,000 |
|
|
Total Judiciary................................................................. |
$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 |
|
|
Expand unemployment agency fraud control program............................................................................. |
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 |
|
|
Total Licensing and Regulatory Affairs..................... |
$3,800,000 |
$2,800,000 |
$3,800,000 |
$2,800,000 |
|
|
|
|
|
|
|
|
|
Military and Veterans Affairs |
|
|
|
|
|
|
Grand Rapids vets home resident aide contract delay (5/31/13)................................................................. |
$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 |
|
|
|
|
|
|
|
|
|
State Police |
|
|
|
|
|
|
Provide trooper/local agency security at events........ |
$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 |
|
|
Total State Police............................................................ |
$6,000,000 |
$2,000,000 |
$6,000,000 |
$2,000,000 |
|
|
|
|
|
|
|
|
|
Technology, Management, and Budget |
|
|
|
|
|
|
First year SBA funding for LSSU business building. |
$900,000 |
$900,000 |
$900,000 |
$900,000 |
|
|
Planning grant for new Marshall State Police post... |
100,000 |
100,000 |
100,000 |
100,000 |
|
|
Change boilerplate for info technology innovation fund.................................................................................... |
0 |
0 |
0 |
0 |
|
|
Total Technology, Management, and Budget.......... |
$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 |
|
|
Federal TIGER IV grant for Detroit multimodal projects.............................................................................. |
10,000,000 |
0 |
10,000,000 |
0 |
|
|
Total Transportation...................................................... |
$15,396,600 |
$0 |
$15,396,600 |
$0 |
|
|
|
|
|
|
|
|
|
Treasury-Operations |
|
|
|
|
|
|
Upgrade Michigan/Virginia/Kentucky fuel tracking IT system................................................................................ |
$250,000 |
$0 |
$250,000 |
$0 |
|
|
Convert MSHDA director to unclassified position..... |
57,700 |
0 |
57,700 |
0 |
|
|
Nonpublic dual enrollment savings (May consensus)........................................................................ |
(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) |
|
|
|
|
|
|
|
|
|
Treasury-Strategic Fund |
|
|
|
|
|
|
Replace land bank fast track revenue shortfall with General Fund.................................................................... |
$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 |
|
|
|
|
|
|
|
|
|
Total Supplemental Appropriations........................... |
($638,713,500) |
($25,357,300) |
($638,363,500) |
($25,007,300) |
|
S1314\s4112sa
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.