FY 2015-16 GENERAL GOVERNMENT BUDGET                     S.B. 122 (S-1, Draft 2):  SENATE SUBCOMMITTEE REC.


[Please see the PDF version of this analysis, if available, to view this image.]

 

 

                                                                                                                                                              

 

 

 

                                                                                              Throughout this document Senate means Subcommittee.

 

 

General Government Budgets

Total Gross and GF/GP Appropriations

 

 

 

 

 

CHANGES FROM

FY 2014-15 YEAR-TO-DATE

FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE

FY 2014-15

YEAR-TO-DATE

FY 2015-16

SENATE SUBCOMM.

AMOUNT

PERCENT

FTE Positions..............................................................

7,747.2

7,803.2

56.0

0.7

GROSS.........................................................................

4,669,740,100

4,714,696,000

44,955,900

1.0

Less:

 

 

 

 

   Interdepartmental Grants Received.....................

740,374,200

742,192,600

1,818,400

0.2

ADJUSTED GROSS..................................................

3,929,365,900

3,972,503,400

43,137,500

1.1

Less:

 

 

 

 

   Federal Funds..........................................................

690,693,500

688,424,100

(2,269,400)

(0.3)

   Local and Private....................................................

16,256,900

23,334,200

7,077,300

43.5

TOTAL STATE SPENDING.......................................

3,222,415,500

3,260,745,100

38,329,600

1.2

Less:

 

 

 

 

   Other State Restricted Funds................................

2,062,182,800

2,096,823,800

34,641,000

1.7

GENERAL FUND/GENERAL PURPOSE..............

1,160,232,700

1,163,921,300

3,688,600

0.3

PAYMENTS TO LOCALS..........................................

1,442,365,600

1,467,315,300

24,949,700

1.7

 

 

 

 

 

See Individual Highlight Sheet for Department Detail

 

 


 

Boilerplate Changes from FY 2014-15 Year-to-Date:

GENERAL SECTIONS

1.  Return on Taxpayer Investment. Requires two reports (11-1-14 and 3-1-15) to the Legislature for each new program or program increase.  Also includes intent language that beginning with the FY 2015-16 budget, any new programs or spending increases for existing programs shall include a specific list of benchmarks that measure the performance or return on taxpayer investment of the program or program increase. Governor:  Deleted section.  Senate:  Modified to remove intent language requiring benchmarks for any proposed program or program increase.  Also, included compliance with section 431 of the Management and Budget Act.  (Sec. 207)

2.  Budget Stabilization Fund/Public Health Sub-Fund. Appropriates $94.0 million from General Fund/General Purpose (GF/GP) revenue to the BSF in FY 2014-15 and $0 to the public health sub-account. Governor:  Moved to Miscellaneous sections in Article 21. Deposit amount for FY 2015-16 is increased to $95.0 million and new language is added stating that there would be an additional deposit to the BSF in FY 2015-16 equal to 25 percent of the fiscal year 2016 GF/GP revenues collected in excess of the amount of GF/GP revenues forecast at the May 2016 revenue estimating conference plus an amount equal to 25 percent of net GF/GP expenditure lapses recorded as part of the State book closing process for the 2016 fiscal year.  Senate:  Reduced deposit into the BSF in FY 2015-16 to $50.0 million.  Concurred with the Governor with the additional deposit based on fiscal year 2016 GF/GP revenues collected in excess of the amount of GF/GP revenues forecast at the May 2016 revenue estimating conference but reduced amount to 10% and did not include the additional deposit of lapsed revenues. (Sec. 211)

3.  Retention of Reports. Directs departments and agencies to receive and retain copies of all reports funded from appropriations in Part 1, following State and Federal guidelines for short and long-term record retention. Allows electronic retention of reports unless prohibited by State or Federal guidelines. Governor:  Deleted section.  Senate:  Retained section.  (Sec. 212)

4.  Casino Investment. Prohibits use of funds appropriated in Part 1 from being used by a department or agency to purchase an ownership interest in a casino.  Governor:  Deleted section.  Senate:  Retained section.  (Sec. 213)

5.  Communications with Legislators. Prohibits disciplinary action against department employees for communicating with Legislators or their staff. Governor:  Deleted section.  Senate:  Retained section.  (Sec. 215)

6.  General Fund Restrictions. Prohibits use of general fund appropriations in this Act where Federal funds are available for the same expenditures. Governor:  Deleted section.  Senate:  Concurred with Governor.  (CL Sec. 217)

7.  Policy Change Reporting Requirement. Requires each department to report by April 1 on each specific policy change made to implement enacted legislation to the appropriations subcommittees, the chairperson of the joint committee on administrative rules, and the senate and house fiscal agencies and policy offices. Governor:  Deleted section.  Senate:  Retained section.  (Sec. 221)

8.  Energy Performance in State Buildings. Requires DTMB, with the assistance of the Michigan Energy Office, to assess the energy performance of State-owned buildings so that departments and agencies are better able to identify priority projects for energy improvements that can be achieved with internal resources and energy savings performance contracts under the cost-effective Governmental Energy Use Act.  Governor:  Deleted section.  Senate:  Concurred with Governor.  (CL Sec. 239)

 


FY 2015-16 ATTORNEY GENERAL BUDGET                           S.B. 122 (S-1, Draft 2):  SENATE SUBCOMMITTEE REC.

 

 

 

 

 

 

 

 

Senate Bill 122 (S-1, Draft 2 as reported)                                  Throughout this document Senate means Subcommittee.

Committee:  Appropriations

 

 

 

 

CHANGES FROM

FY 2014-15 YEAR-TO-DATE

FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE

FY 2014-15

YEAR-TO-DATE

FY 2015-16

SENATE SUBCOMM.

AMOUNT

PERCENT

FTE Positions..............................................................

513.5

518.5

5.0

1.0

GROSS.........................................................................

93,822,300

91,941,600

(1,880,700)

(2.0)

Less:

 

 

 

 

   Interdepartmental Grants Received.....................

27,783,800

28,533,900

750,100

2.7

ADJUSTED GROSS..................................................

66,038,500

63,407,700

(2,630,800)

(4.0)

Less:

 

 

 

 

   Federal Funds..........................................................

9,857,200

9,278,600

(578,600)

(5.9)

   Local and Private....................................................

0

0

0

0.0

TOTAL STATE SPENDING.......................................

56,181,300

54,129,100

(2,052,200)

(3.7)

Less:

 

 

 

 

   Other State Restricted Funds................................

17,914,200

17,281,700

(632,500)

(3.5)

GENERAL FUND/GENERAL PURPOSE..............

38,267,100

36,847,400

(1,419,700)

(3.7)

PAYMENTS TO LOCALS..........................................

0

0

0

0.0

 


 

FY 2014-15 Year-to-Date Gross Appropriation.....................................................................

$93,822,300

 

Changes from FY 2014-15 Year-to-Date:

 

  1.  Removal of FY 2014-15 One-Time Funding. The Governor removed one-time funding of $3.0 million GF/GP provided for sexual assault prosecution cases resulting from the backlog of rape kits in Wayne County. Senate concurred with Governor.

(3,000,000)

  2.  Sexual Assault Law Enforcement. The Governor included funds for a new line item that provides funding for the prosecution of backlog sexual assault cases across out-State Michigan. Additional funding added 5.0 FTE positons for this function and is not related to the prior-year one-time funding for the backlog of cases in Wayne County. Senate concurred with Governor.

1,700,000

  3.  Technical Adjustment to Align Expenditures. The Governor reduced IDG and restricted funding to better align the expenditures of the Department with the actual funds received from other departments for services provided by the Department of Attorney General. Senate concurred with Governor.

(239,200)

  4.  Economic Adjustments. Includes a negative $802,000 Gross and a negative $294,000 GF/GP for OPEB and $460,500 Gross and $174,300 GF/GP for other economic adjustments. Senate concurred with Governor.

(341,500)

  5.  Comparison to Governor's Recommendation.  The Senate is $0 Gross over/under and $0 GF/GP over/under the Governor.

 

 

Total Changes.....................................................................................................................

($1,880,700)

FY 2015-16 Senate Appropriations Subcommittee Gross Appropriation..............................

$91,941,600

 

The changes show the differences between the schedule of programs proposed by the Governor and the prior-year line items.

Boilerplate Changes from FY 2014-15 Year-to-Date:

  1.  Boilerplate Structure. The Governor moved boilerplate from the FY 2014-15 general sections that applied to all General Government budgets to the Article for the Department of Attorney General.  Senate: retained current law format for structure of the bill. These sections include:

          Report on total State spending for the Department. (Sec. 2-201)

          Appropriations are subject to Management and Budget Act, 1984 PA 431. (Sec. 2-202)

          Definitions. (Sec. 2-203)

          Requirement for Departments to maintain searchable websites. (Sec. 2-206)

          Allowable use of the Internet to fulfill reporting requirements. (Sec. 2-208)

          Buy American with a Michigan preference. (Sec. 2-209)

          Required department to allow businesses in deprived and depressed communities to bid on contracts. (Sec. 2-210)

          Report on out-of-state travel. (Sec. 2-216)

          Department Scorecards. (Sec. 2-219)

          Prohibition on outside legal services. (Sec. 2-226)

          Restricted Revenue Report. (Sec. 2-227)

          GF/GP Lapse Report. (Sec. 2-228)

  2.  Prisoner Reimbursement Funds. Provides that the Department may spend up to $614,400 of prisoner reimbursement funds on activities related to the State Correctional Facilities Reimbursement Act. If the Department collects in excess of $1,131,000, up to $1,000,000 of that amount is appropriated and may be spent on representing the Department of Corrections and its officers, employees, and agents, including, but not limited to, the defense of civil actions filed by prisoners. Governor:  reduced amount of prisoner reimbursement funds by $2,500 to $611,900 due to economic changes. (Current Law Sec. 309)  Senate concurred with Governor.

  3.  Sexual Assault Law Enforcement Efforts. Governor:  added new language for sexual assault law enforcement efforts. Language requires the Department to use the funds for testing of backlogged sexual assault kits across the State. The purpose of this initiative is to eliminate all county sexual assault kit backlogs by the end of the fiscal year, assist local prosecutors with investigations and prosecutions of viable cases, and to provide victim services. (Gov. Sec. 2-316) Senate: Revised language to prioritize funding as follows:  testing of backlogged kits; assist local prosecutors; and provide victim services.

  4.  Sexual Assault Prosecutions. Language requires Attorney General to provide a detailed spending plan. Governor: deleted. Senate: added language requiring the plan to be submitted by November 1, 2015, or funds shall lapse to General Fund. (Sec. 320)

 

Date Completed:  3-26-15                                                                                          Fiscal Analyst:  Joe Carrasco, Jr.

 


FY 2015-16 CIVIL RIGHTS BUDGET                                        S.B. 122 (S-1, Draft 2):  SENATE SUBCOMMITTEE REC.

 

 

 

 

 

 

 

 

Senate Bill 122 (S-1, Draft 2 as reported)                                  Throughout this document Senate means Subcommittee.

Committee:  Appropriations

 

 

 

 

CHANGES FROM

FY 2014-15 YEAR-TO-DATE

FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE

FY 2014-15

YEAR-TO-DATE

FY 2015-16

SENATE SUBCOMM.

AMOUNT

PERCENT

FTE Positions..............................................................

132.0

129.0

(3.0)

(2.3)

GROSS.........................................................................

16,644,200

16,128,700

(515,500)

(3.1)

Less:

 

 

 

 

   Interdepartmental Grants Received.....................

288,900

286,700

(2,200)

(0.8)

ADJUSTED GROSS..................................................

16,355,300

15,842,000

(513,300)

(3.1)

Less:

 

 

 

 

   Federal Funds..........................................................

2,736,500

2,721,700

(14,800)

(0.5)

   Local and Private....................................................

18,700

18,700

0

0.0

TOTAL STATE SPENDING.......................................

13,600,100

13,101,600

(498,500)

(3.7)

Less:

 

 

 

 

   Other State Restricted Funds................................

151,900

151,900

0

0.0

GENERAL FUND/GENERAL PURPOSE..............

13,448,200

12,949,700

(498,500)

(3.7)

PAYMENTS TO LOCALS..........................................

0

0

0

0.0

 


 

FY 2014-15 Year-to-Date Gross Appropriation.....................................................................

$16,644,200

 

Changes from FY 2014-15 Year-to-Date:

 

  1.  Unclassified Salaries. The Governor reduced funding for this line item to account for the unused portion of the funds. Senate concurred with Governor.

(90,000)

  2.  Public Affairs Positon. The Governor eliminated funding for 1.0 FTE due to a vacant position. Senate concurred with Governor.

(115,000)

  3.  Librarian Position. The Governor eliminated funding for 1.0 FTE due to a vacant position. Senate concurred with Governor.

(105,000)

  4.  Executive Secretary Position. The Governor eliminated funding for 1.0 FTE due to a vacant position. Senate concurred with Governor.

(90,000)

  5.  Economic Adjustments. Includes a negative $157,900 Gross and a negative $132,500                   GF/GP for OPEB and $42,400 Gross and $34,000 GF/GP for other economic adjustments. Senate concurred with Governor.

(115,500)

  6.  Comparison to Governor's Recommendation.  The Senate is $0 Gross over/under and $0 GF/GP over/under the Governor.

 

 

Total Changes.....................................................................................................................

($515,500)

FY 2015-16 Senate Appropriations Subcommittee Gross Appropriation..............................

$16,128,700

 

The changes show the differences between the schedule of programs proposed by the Governor and the prior-year line items.

 

 

 

 

Boilerplate Changes from FY 2014-15 Year-to-Date:

  1.  Boilerplate Structure. The Governor moved boilerplate from the FY 2014-15 general sections that applied to all General Government budgets to the Article for the Department of Civil Rights.   Senate: retained current law format for structure of the bill. These sections include:

          Report on total State spending for the Department. (Sec. 3-201)

          Appropriations are subject to Management and Budget Act, 1984 PA 431. (Sec. 3-202)

          Definitions. (Sec. 3-203)

          Requirement for Departments to maintain searchable websites. (Sec. 3-206)

          Allowable use of the Internet to fulfill reporting requirements. (Sec. 3-208)

          Buy American with a Michigan preference. (Sec. 3-209)

          Required department to allow businesses in deprived and depressed communities to bid on contracts. (Sec. 3-210)

          Report on out-of-state travel. (Sec. 3-216)

          Department Scorecards. (Sec. 3-219)

          Prohibition on outside legal services. (Sec. 3-226)

          Restricted Revenue Report. (Sec. 3-227)

          GF/GP Lapse Report. (Sec. 3-228)

  2.  Department Report. Requires a detailed report submitted by November 30 that covers the following items for the most recent fiscal year:  detailed description of departmental operations; detailed description of all subunits in the department; responsibilities, positions, revenue, and spending for each subunit; number of complaints by type; average cost per complaint investigation and average investigative time spent per complaint; percent of complaints that are meritorious and worthy of investigation or settlement and the percentage of complaints that have no merit; list of amounts awarded to claimants; expenditures associated with complaint investigation and enforcement; complaint investigations closed per FTE for the past 5 years; complaint evaluations completed per FTE for the past 5 years; and productivity projections. Governor:  eliminated section. Senate: retained language. (Current Law Sec. 404)

  3.  Notifications Required Regarding Federal Reports or Complaints. Requires the department to notify the Office of State Budget, Senate and House appropriations committees, and the Senate and House Fiscal Agencies prior to submitting a report or complaint to the United State Commission on Civil Rights or other Federal departments. Governor:  eliminated section. Senate: retained language. (Current Law Sec. 405)

 

Date Completed:  3-26-15                                                                                          Fiscal Analyst:  Joe Carrasco, Jr.

 


FY 2015-16 EXECUTIVE OFFICE BUDGET                             S.B. 122 (S-1, Draft 2):  SENATE SUBCOMMITTEE REC.


[Please see the PDF version of this analysis, if available, to view this image.]

 

 

 

 

 

 

 

Senate Bill 122 (S-1, Draft 2 as reported)                                  Throughout this document Senate means Subcommittee.

Committee:  Appropriations

 

 

 

 

CHANGES FROM

FY 2014-15 YEAR-TO-DATE

FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE

FY 2014-15

YEAR-TO-DATE

FY 2015-16

SENATE SUBCOMM.

AMOUNT

PERCENT

FTE Positions..............................................................

78.2

78.2

0.0

0.0

GROSS.........................................................................

5,916,100

5,916,100

0

0.0

Less:

 

 

 

 

   Interdepartmental Grants Received.....................

0

0

0

0.0

ADJUSTED GROSS..................................................

5,916,100

5,916,100

0

0.0

Less:

 

 

 

 

   Federal Funds..........................................................

0

0

0

0.0

   Local and Private....................................................

0

0

0

0.0

TOTAL STATE SPENDING.......................................

5,916,100

5,916,100

0

0.0

Less:

 

 

 

 

   Other State Restricted Funds................................

0

0

0

0.0

GENERAL FUND/GENERAL PURPOSE..............

5,916,100

5,916,100

0

0.0

PAYMENTS TO LOCALS..........................................

0

0

0

0.0

 


 

FY 2014-15 Year-to-Date Gross Appropriation.....................................................................

$5,916,100

 

Changes from FY 2014-15 Year-to-Date:

 

  1.  The Governor Recommended NO CHANGES from enacted FY 2014-15 budget. Senate concurred with Governor.

0

  2.  Comparison to Governor's Recommendation.  The Senate is $0 Gross over/under and $0 GF/GP over/under the Governor.

 

 

Total Changes.....................................................................................................................

0

FY 2015-16 Senate Appropriations Subcommittee Gross Appropriation..............................

$5,916,100

 

The changes show the differences between the schedule of programs proposed by the Governor and the prior-year line items.


 

Boilerplate Changes from FY 2014-15 Year-to-Date:

  1.  There previously were no boilerplate sections for the Executive Office.  The Governor added one general section listing the total State spending from State resources and the payments to local units of government.  (Gov. Sec. 8-201) Senate: no boilerplate language included.

 

Date Completed:  3-26-15                                                                                          Fiscal Analyst:  Joe Carrasco, Jr.


FY 2015-16 LEGISLATURE BUDGET                                      S.B. 122 (S-1, Draft 2):  SENATE SUBCOMMITTEE REC.

 

 

 

 

 

 

 

 

Senate Bill 122 (S-1, Draft 2 as reported)                                  Throughout this document Senate means Subcommittee.

Committee:  Appropriations

 

 

 

 

CHANGES FROM

FY 2014-15 YEAR-TO-DATE

FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE

FY 2014-15

YEAR-TO-DATE

FY 2015-16

SENATE SUBCOMM.

AMOUNT

PERCENT

FTE Positions..............................................................

0.0

0.0

N/A

N/A

GROSS.........................................................................

154,089,300

159,304,800

5,215,500

3.4

Less:

 

 

 

 

   Interdepartmental Grants Received.....................

5,220,700

5,392,800

172,100

3.3

ADJUSTED GROSS..................................................

148,868,600

153,912,000

5,043,400

3.4

Less:

 

 

 

 

   Federal Funds..........................................................

0

0

0

0.0

   Local and Private....................................................

400,000

400,000

0

0.0

TOTAL STATE SPENDING.......................................

148,468,600

153,512,000

5,043,400

3.4

Less:

 

 

 

 

   Other State Restricted Funds................................

6,110,600

6,179,600

69,000

1.1

GENERAL FUND/GENERAL PURPOSE..............

142,358,000

147,332,400

4,974,400

3.5

PAYMENTS TO LOCALS..........................................

0

0

0

0.0

 


 

FY 2014-15 Year-to-Date Gross Appropriation.....................................................................

$154,089,300

 

Changes from FY 2014-15 Year-to-Date:

 

  1.  Auditor General Adjustment. The Governor recommended a 3.5% overall increase for Auditor General operations. Senate concurred with Governor.

681,700

  2.  Legislative Adjustment. The Governor increased overall funding for the Legislature by a total of 3.5%. The Senate received an increase of $1.2 million overall while the House received an overall increase of $1.8 million. The House and Senate Fiscal Agencies received an increase of $125,300 each. The Legislative Council received an increase of $521,500 while the Retirement System received an increase of $148,500. The Farnum Building and the Cora Anderson House Building received increases totaling $466,500. Finally, the Governor included additional funding of $199,600 for the State Capitol Historic Site line item ($139,600 for general operations and $60,000 for restoration, renewal and maintenance). Senate concurred with Governor.

4,533,800

  3.  Comparison to Governor's Recommendation.  The Senate is $0 Gross over/under and $0 GF/GP over/under the Governor.

 

 

Total Changes.....................................................................................................................

$5,215,500

FY 2015-16 Senate Appropriations Subcommittee Gross Appropriation..............................

$159,304,800

 

The changes show the differences between the schedule of programs proposed by the Governor and the prior-year line items.

Boilerplate Changes from FY 2014-15 Year-to-Date:

  1.  Boilerplate Structure. The Governor moved boilerplate from the FY 2014-15 general sections that applied to all General Government budgets to the Article for the Legislature.  Senate: retained current law format for structure of the bill. These sections include:

          Report on total State spending for the Department. (Sec. 12-201)

          Appropriations are subject to Management and Budget Act, 1984 PA 431. (Sec. 12-202)

          Definitions. (Sec. 12-203)

  2.  Capitol Historic Site Fund. Language states that the appropriation in Part 1 from the Capitol Historic Site Fund does not take effect unless Enrolled Senate Bill 678 of the 97th Legislature is enacted into law. Governor:  eliminated section. (Current Law Sec. 609) Senate concurred with Governor.

  3.  Legislative Retirement System. Intent language states that all administrative functions and associated funding for the Michigan Legislative Retirement System shall be transferred to DTMB by the end of FY 2014-15. Governor:  eliminated section. Senate: retained section. (Current Law Sec. 618)

  4.  IT Auditors. Language states that $400,000 may be used to hire up to 10 additional auditors to perform audits of the State's most critical IT systems and services. Governor:  eliminated section. (Current Law Sec. 625) Senate concurred with Governor.

 

Date Completed:  3-26-15                                                                                          Fiscal Analyst:  Joe Carrasco, Jr.

 


FY 2015-16 STATE BUDGET                                                  S.B. 122 (S-1, Draft 2):  SENATE SUBCOMMITTEE REC.


[Please see the PDF version of this analysis, if available, to view this image.]

 

 

 

 

 

 

 

Senate Bill 122 (S-1, Draft 2 as reported)                                  Throughout this document Senate means Subcommittee.

Committee:  Appropriations

 

 

 

 

CHANGES FROM

FY 2014-15 YEAR-TO-DATE

FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE

FY 2014-15

YEAR-TO-DATE

FY 2015-16

SENATE SUBCOMM.

AMOUNT

PERCENT

FTE Positions..............................................................

1,587.0

1,587.0

0.0

0.0

GROSS.........................................................................

226,774,900

235,256,700

8,481,800

3.7

Less:

 

 

 

 

   Interdepartmental Grants Received.....................

20,000,000

20,000,000

0

0.0

ADJUSTED GROSS..................................................

206,774,900

215,256,700

8,481,800

4.1

Less:

 

 

 

 

   Federal Funds..........................................................

3,050,000

1,460,000

(1,590,000)

(52.1)

   Local and Private....................................................

100

100

0

0.0

TOTAL STATE SPENDING.......................................

203,724,800

213,796,600

10,071,800

4.9

Less:

 

 

 

 

   Other State Restricted Funds................................

185,985,800

186,635,100

649,300

0.3

GENERAL FUND/GENERAL PURPOSE..............

17,739,000

27,161,500

9,422,500

53.1

PAYMENTS TO LOCALS..........................................

1,360,800

1,272,100

(88,700)

(6.5)

 


 

FY 2014-15 Year-to-Date Gross Appropriation.....................................................................

$226,774,900

 

Changes from FY 2014-15 Year-to-Date:

 

  1.  FY 2014-15 Y-T-D Adjustments. Current year adjustments per PA 6 of 2015 total $1.2 million. There is $1.0 million appropriated for the ignition interlock program and $200,000 for IT costs associated with the May 2015 special election.

(1,200,000)

  2.  FY 2014-15 Y-T-D Adjustment for Transfer 2015-2. This transfer added $1.6 million in funding to increase the Federal authorization for the receipt of additional Federal funds that will be used to upgrade CDL testing kiosks in branch offices. Funding is not carried forward into FY 2015-16.  

(1,590,000)

  3.  Credit and Debit Card Assessments. The Governor increased restricted funding for the authorization to use additional restricted funds that are being collected as more branch office transactions are being completed with the use of a debit or credit card. Senate concurred with Governor.

1,000,000

  4.  Ignition Interlock Program. The Governor increased restricted funding to adjust for ongoing costs associated with this program that monitors persons convicted of driving while intoxicated or impaired. Funding is required as a result of PA 250 of 2014 and is provided through the collection of Driver Responsibility Fees. Senate concurred with Governor.

1,000,000

  5.  Unclassified Salaries. The Governor reduced funding for this line item in order to realize the savings from the unused portion of funds. Senate concurred with Governor.

(122,100)

  6.  Department Services Operations. The Governor reduced funding to realize the savings that will result from the Department s implementation of administrative efficiencies. Senate concurred with Governor.

(83,800)

  7.  Legal Services Operations. The Governor reduced funding to realize the savings that will result from the Department s implementation of administrative efficiencies. Senate concurred with Governor.

(400)

  8.  Branch Operations. The Governor reduced GF/GP funding to realize the savings that will result from the Department s implementation of administrative efficiencies. Senate concurred with Governor.

(241,800)

  9.  Central Operations. The Governor reduced funding to realize the savings that will result from the Department s implementation of administrative efficiencies. Senate concurred with Governor.

(26,900)

10.  Election Administration Operations. The Governor reduced funding to realize the savings that will result from the Department s implementation of administrative efficiencies. Senate concurred with Governor.

(25,000)

11.  Voting Systems Technology. The Senate appropriated $10.0 million for replacement of voting machines and updating technology.

10,000,000

12.  Economic Adjustments. Includes a negative $1,482,700 Gross and a negative $98,300                   GF/GP for OPEB and $1,254,500 Gross and $220,800 GF/GP for other economic adjustments. Senate concurred with Governor.

(228,200)

13.  Comparison to Governor's Recommendation.  The Senate is $10.0 million Gross over and $10.0 million GF/GP over the Governor.

 

 

Total Changes.....................................................................................................................

$8,481,800

FY 2015-16 Senate Appropriations Subcommittee Gross Appropriation..............................

$235,256,700

 

The changes show the differences between the schedule of programs proposed by the Governor and the prior-year line items.

 

Boilerplate Changes from FY 2014-15 Year-to-Date:

  1.  Boilerplate Structure. The Governor moved boilerplate from the FY 2014-15 general sections that applied to all General Government budgets to the Article for the Department of State. Senate: retains current law format of the bill. These sections include:

          Report on total State spending for the Department. (Sec. 16-201)

          Appropriations are subject to the Management and Budget Act, 1984 PA 431. (Sec. 16-202)

          Definitions. (Sec. 16-203)

          Requirement for Departments to maintain searchable websites. (Sec. 16-206)

          Allowable use of the Internet to fulfill reporting requirements. (Sec. 16-208)

          Buy American with a Michigan preference. (Sec. 16-209)

          Required department to allow businesses in deprived and depressed communities to bid on contracts. (Sec. 16-210)

          Report on out-of-state travel. (Sec. 16-216)

          Department Scorecards. (Sec. 16-219)

          Prohibition on outside legal services. (Sec. 16-226)

          Restricted Revenue Report. (Sec. 16-227)

          GF/GP Lapse Report. (Sec. 16-228)

  2.  Business Application Modernization Project Report. Requires a report of the total funds expended for the business application modernization project, start dates, costs, and penalties paid to the state by the contract provider. Governor:  eliminated section. Senate: retained language. (Sec. 716b)

  3.  Buena Vista Branch Office. Requires the Department to maintain a full service branch office in Buena Vista Township. Governor:  eliminated section. (Current Law Sec. 718)  Senate concurred with Governor.

  4.  Voting Systems Technology and Innovation Fund.   Senate:  Added new intent language stating that a Voting Systems Technology and Innovation Fund shall be created within the State Treasury.  The intent is for the fund to be a revolving, self-sustaining fund for financing voting systems technology and innovation.  (NEW Sec. 730)

  5.  Federal Rules Changes Affecting Michigan Statute.  Senate:  Added new language stating that a 10-day notice shall be given to the Legislature on any proposed federal rules changes impacting the Department of State that would require amendments to Michigan statute.  ( NEW Sec. 731)

  6.  TACF Sunset.  Although not mentioned in boilerplate in the budget bill, it must be noted that the authority for the Transportation Administration and Collection Fund (TACF) is set to expire on October 1, 2015.  If this authority is not extended for fiscal year 2015-16, the major source of funding for the Department of State (estimated at $110 million) would be lost and leave the Department short of necessary funding for the fiscal year.

 

Date Completed:  4-6-15                                                                                            Fiscal Analyst:  Joe Carrasco, Jr.


 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


FY 2015-16 TECHNOLOGY, MANAGEMENT, AND BUDGET    S.B. 122 (S-1, Draft 2):  SENATE SUBCOMMITTEE REC.

 

 

 

 

 

 

 

 

Senate Bill 122 (S-1, Draft 2 as reported)                                  Throughout this document Senate means Subcommittee.

Committee:  Appropriations

 

 

 

 

CHANGES FROM

FY 2014-15 YEAR-TO-DATE

FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE

FY 2014-15

YEAR-TO-DATE

FY 2015-16

SENATE SUBCOMM.

AMOUNT

PERCENT

FTE Positions..............................................................

2,817.0

2,833.0

16.0

0.6

GROSS.........................................................................

1,230,288,000

1,258,029,300

27,741,300

2.3

Less:

 

 

 

 

   Interdepartmental Grants Received.....................

677,671,700

678,478,500

806,800

0.1

ADJUSTED GROSS..................................................

552,616,300

579,550,800

26,934,500

4.9

Less:

 

 

 

 

   Federal Funds..........................................................

7,974,100

7,997,300

23,200

0.3

   Local and Private....................................................

3,744,100

3,777,800

33,700

0.9

TOTAL STATE SPENDING.......................................

540,898,100

567,775,700

26,877,600

5.0

Less:

 

 

 

 

   Other State Restricted Funds................................

95,099,600

99,271,900

4,172,300

4.4

GENERAL FUND/GENERAL PURPOSE..............

445,798,500

468,503,800

22,705,300

5.1

PAYMENTS TO LOCALS..........................................

0

0

0

0.0

 


 

FY 2014-15 Year-to-Date Gross Appropriation.....................................................................

$1,230,288,000

 

Changes from FY 2014-15 Year-to-Date:

 

  1.  FY 2014-15 Y-T-D Adjustments. Current year adjustments per PA 6 of 2015 and E.O. 2015-5 total a negative $33.3 million. There is a negative adjustment of $17.8 million in PA 6 of 2015 for SBA rent. Additionally, there is a negative adjustment totaling $15.5 million across various line items to balance FY 2014-15.

33,300,000

  2.  FY 2014-15 Y-T-D Adjustment for Transfer 2015-2. This transfer added $777,600 in funding to increase the restricted fund authorization for the receipt of additional restricted funds that will be used to administer the deferred compensation plans. Funding is not carried forward into FY 2015-16.  

(777,600)

  3.  Removal of FY 2014-15 One-Time Appropriations. The Governor removed a total of $22.0 million of the following one-time funding provided in the FY 2014-15 budget:  Litigation fund ($4.0 million); Regional Prosperity Grants ($1.0 million); Technology Services Funding ($6.9 million IDG, $300 GF/GP); Office of Urban Initiatives ($5.0 million); Business One-Stop Depreciation costs ($871,700); Special Projects ($1.25 million); and Enterprisewide Special Maintenance ($7.0 million). Senate concurred with Governor.

(26,022,000)

  4.  Procurement Improvement Plan. The Governor provided new funding of $825,000 ($479,100 GF/GP) to hire 6.0 additional FTEs to implement a category management system for the State s procurement system. This new system will force the State to examine all of its purchasing from an enterprise perspective and allow the State to leverage its spending abilities by reducing the number of contacts and suppliers utilized. Senate concurred with Governor.

825,000

  5.  Treasury Business Portal. The Governor provided authorization for the Department of Treasury to implement a new and refined business portal to replace the old Michigan Business One-Stop portal that was eliminated in the FY 2014-15 budget. The additional IDG funding will allow the Department of Treasury to meet other IT projects/needs. Senate concurred with Governor.

2,000,000

  6.  Office of Urban Initiatives. General Fund/General Purpose funding that was provided as one-time funding in FY 2014-15 is maintained for FY 2015-16 as an ongoing program, but reduced by half. Senate reduced Governor's funding by $876,600.

1,623,400

  7.  Motor Vehicle Fleet. The Governor increased IDG funding to account for higher fuel, maintenance, and vehicle leasing costs. Senate concurred with Governor.

6,515,500

  8.  State Emergency Operations Center (SEOC). The Governor included funding increases in the authorization for the IDG from Building Operation Costs (BOC) to cover the costs of operating the new SEOC. The Michigan State Police (MSP) will occupy a portion of the building and this adjustment will allow DTMB to recognize the BOC they will charge the MSP for their use of the building. Senate concurred with Governor.

631,700

  9.  Office of Retirement Services. The Governor increased restricted funding to cover additional administrative costs to administer the various retirement system changes due to enacted legislation affecting both Defined Contribution and Deferred Compensation. Senate concurred with Governor.

1,257,600

10.  Information Technology (IT) Investment Fund. The Governor increased GF/GP funding for this IT program to further provide maintenance and replacement of legacy IT systems across State departments and agencies. Funding for this item will total $70.0 million in FY 2015-16. Senate reduced Governor's funding by $5.0 million.

2,000,000

11.  Enterprisewide Special Maintenance. The Governor increased GF/GP funding for the ongoing appropriations for this item to provide maintenance services to State-owned buildings across the State. The FY 2014-15 budget included $7.0 million in one-time funding for this program that is not included in the FY 2015-16 budget. Total ongoing funding in FY 2015-16 increases from $23.0 million to $31.0 million. Senate concurred with Governor.

8,000,000

12.  Treasury IT Technical Adjustment. The Governor s increase aligned funding of the IT IDGs with agency requests. Funding of $1.2 million and 2.0 FTE positions is provided for City Income Tax operations and $650,000 and 1.0 FTE position is provided for Personal Property Tax reforms. Senate concurred with Governor.

1,850,000

13.  Michigan Public Safety Communications System (MPSCS) Lifecycle and Radio Replacement. The Governor reduced GF/GP funding for this program by $2.0 million to $39.8 million to provide funding for lifecycle replacement of equipment that is outdated. Senate concurred with Governor.

(2,000,000)

14.  Civil Service Commission. The Governor reduced funding for the IT line item for the Civil Service Commission. Senate concurred with Governor.

(1,085,800)

15.  Information Technology (IT) - Alignment of IDG Funding. The IT portion of the budget aligned its IDG funding with enacted FY 2014-15 appropriations for all departments. Senate concurred with Governor.

(2,018,800)

16.  FY 2015-16 One-Time Appropriations. Governor included the following one-time funding:  $2.0 million for litigation costs; $600,000 for alignment of IT funding with agency requests related to the Treasury Business Portal described above; and $500 for planning authorizations for SBA-authorized community college and university construction projects. Senate reduced litigation funding by $1.0 million and SBA authorized capital outlay projects by $400.

1,600,100

17.  Economic Adjustments. Includes a negative $3,521,500 Gross and a negative $667,500                   GF/GP for OPEB and $3,556,100 Gross and $1,072,700 GF/GP for other economic adjustments. Senate concurred with Governor.

34,600

18.  Other Changes. The Governor included several miscellaneous changes including:  a net zero Gross change for SWCAP, however change results in a negative adjustment to GF/GP funding of ($3,300); $7,600 for Professional Development to comply with contracts; a net zero Gross change to provide GF/GP funding to offset IDG funding that supports administrative services for DTMB, however change results in a positive adjustment to GF/GP funding of $781,900; and a net zero Gross change for the Office of State Employer to reduce GF/GP funding in the Office of the State Employer and replace the funding with Health Management Fund restricted funds, however change results in a negative adjustment to GF/GP funding of ($45,000).

7,600

19.  Fund Shift. The Senate replaced $3.5 million in GF/GP funding with restricted revenue from the IT Innovation Fund. The shift has a net zero effect on the gross but reduces GF/GP expenditures by $3.5 million.

0

20.  Comparison to Governor's Recommendation.  The Senate is $6,877,000 Gross under and $10,377,000 GF/GP under the Governor.

 

 

Total Changes.....................................................................................................................

$27,741,300

FY 2015-16 Senate Appropriations Subcommittee Gross Appropriation..............................

$1,258,029,300

 

The changes show the differences between the schedule of programs proposed by the Governor and the prior-year line items.

 

Boilerplate Changes from FY 2014-15 Year-to-Date:

  1.  Boilerplate Structure. The Governor moved boilerplate from the FY 2014-15 general sections that applied to all General Government budgets to the Article for the Department of Technology, Management, and Budget. Senate: retained current law format of bill. These sections include:

          Report on total State spending for the Department. (Sec. 18-201)

          Appropriations are subject to Management and Budget Act, 1984 PA 431. (Sec. 18-202)

          Definitions. (Sec. 18-203)

          Requirement for Departments to maintain searchable websites. (Sec. 18-206)

          Allowable use of the Internet to fulfill reporting requirements. (Sec. 18-208)

          Buy American with a Michigan preference. (Sec. 18-209)

          Required department to allow businesses in deprived and depressed communities to bid on contracts. (Sec. 18-210)

          Report on out-of-state travel. (Sec. 18-216)

          Department Scorecards. (Sec. 18-219)

          Prohibition on outside legal services. (Sec. 18-226)

          Restricted Revenue Report. (Sec. 18-227)

          GF/GP Lapse Report. (Sec. 18-228)

          Related federal and restricted funds for special maintenance. (Sec. 18-233)

          Related federal and restricted funds for enterprise wide IT investments. (Sec. 18-234)

  2.  Computer Contract Adjustments. Within 14 days of the Department finalizing the revisions, the Department must notify the House and Senate Appropriation Committee Chairs and General Government Subcommittee Committee Chairs on computer contract revisions that increase or decrease current contracts by more than $500,000. The Governor: removed the 14-day requirement and instead requires a report quarterly. ( Current Law Sec. 809)   Senate concurred with Governor.

  3.  Motor Vehicle Fleet. Governor: removed the requirement for the Department to use remanufactured parts, whenever economically feasible, when repairing fleet vehicles. (Current Law Sec. 813(5))  Senate concurred with Governor.

  4.  Enterprisewide IT Investments. Requires the Department to develop a plan regarding the use of funds appropriated in Part 1 for the Enterprisewide IT Investments program. Also requires the Department to notify the Legislature and the fiscal agencies when an IT investment project will require the transfer of $500,000 or more from another project. Governor: removed the notification to the Legislature portion of the language. (Current Law Sec. 814)  Senate concurred with Governor.

  5.  IT Investments Program Expansion. Governor:  added new language requiring the Department to use any increase in funding for the program to be used for the modernization of state IT systems, improvement of the State s cyber security framework, and to achieve efficiencies.  Senate concurred with Governor. (Sec. 814a)

  6.  Vendor Call or Contact Centers. Governor: removed current year language requiring disclosure of location of call/contact centers.  (Current Law Sec. 817)  Senate concurred with Governor.

  7.  Legacy Costs. Language lists the authorized amount of the appropriations in Part 1 that may be used for legacy costs as well as an estimate of the amount of pension-related legacy costs. Governor:  Updated the amounts to reflect the amounts needed for FY 2015-16.  (Current Law Sec. 822i; Gov. Sec. 18-822a)  Senate concurred with Governor.

  8.  Regional Prosperity Grants. Provides boilerplate language describing the qualification process for the Regional Prosperity Grant Program. (Current Law Sec. 890)  Governor: made this an on-going program and moved the boilerplate language to the main boilerplate section of the bill as a new section. The Governor also revised and updated the language, updated dates in subsection (9), and added new subparts within the new section. (Gov. Sec. 18-822c) Senate: concurred with Governor but revised language for clarification. (Sen. Sec. 822j)

  9.  Report for Office of Urban Initiatives.  Senate:  Added new language requiring a report by April 15 to the Legislature and the fiscal agencies on the expenditures for the office of urban initiatives.  The report shall provide information detailing the economic impact and job growth initiatives for each urban and metropolitan area receiving funds under part 1. (NEW Sec. 822l

10.  Cloud Computing. Requires the Department to conduct an analysis of using public or private cloud computing technologies for new projects. Governor:  eliminated section.  (Current Law Sec. 836)  Senate concurred with Governor.

11.  Online Citizens Guide and Dashboard. Requires the department to issue an RFP for a  publicly accessible statewide online citizens guide and dashboard web service that offers access to State of Michigan reports and data from municipalities, local, and intermediate school districts as a common transparency solution and that has a fiscal stress warning system as a component. Governor:  eliminated section. (Current Law Sec. 840)  Senate concurred with Governor.

12.  State Building Authority Authorizations. Language requires the Legislature to determine that funding provided in Part 1 is for the leasing of facilities to be used for a public purpose. Governor:  eliminated section. (Current Law Sec. 866)  Senate concurred with Governor.

13.  Farnum Building Sale Proceeds. Governor: Added new language requiring the proceeds from the sale of the building to be appropriated to the Department in accordance with any legislation that is enacted that authorizes the sale. If the net proceeds from the sale of the Farnum building are less than the $7.0 million authorized in current law Section 896 for Senate relocation costs, then the difference between the net sale proceeds and $7.0 million shall be appropriated by the Legislature to the Department. (Gov. Sec. 18-867)  Senate concurred with Governor.

 14.   Litigation Fund Report. Requires a quarterly report to the Legislature on litigation fund expenditures by case, purpose, and department involved. Governor:  eliminated section. (Current Law Sec. 891) Sen: retained language but moved to Sec. 822k.

15.  Michigan Business One-Stop Depreciation Expenses. Language states that the amount appropriated in Part 1 for depreciation expenses shall be expended solely to pay the remaining capitalized development cost of the Michigan Business One-Stop. Language also stipulates that the budget director shall reduce the user fees charged to State departments by amounts equivalent to the reduction in appropriation for the Michigan Business One-Stop. The Department shall not charge State departments or agencies for maintenance or operation of the Michigan Business One Stop. Also allows the Department to expend up to $1.5 million on continued maintenance and operation of the program and that departments or agencies may not be charged IDGs or other sources of financing. Governor:  eliminated section. (Current Law Sec. 895)  Senate concurred with Governor.

16.  Senate Relocation from Farnum Building. Allows up to $7.0 million of the funds appropriated in Part 1 to be made available to the Senate for future lease, purchase, and transition costs related to the relocation from the Farnum Building.   Governor:  eliminated section. (Current Law Sec. 896)  Senate concurred with Governor.

17.  One-Time Special Projects Earmarks. Language earmarks $250,000 of One-Time Special Projects funding for the Catholic Charities Center for Hope and $500,000 for payments to individuals and surviving spouses receiving retirement payments under Section 411 of the Michigan Military Act. Governor:  eliminated section. (Current Law Sec. 897)  Senate concurred with Governor.

18.  Other Deletions. In keeping with the condensed structure of the Governor s budget, the following current-year language sections and/or subsections were not included:  808a, 810, 815, 816, 821, 822, 822f, 822g, 822h, 824 (required report only), 827(4), 828, 829, 830, 831, 832, and 862. The majority of these sections required the Department to provide either reports or notifications to the Legislature. Senate: retained Sections 810, 816, 821, 822, 822f, 827(4), 828, 832, and 862.

 

Date Completed:  4-6-15                                                                                            Fiscal Analyst:  Joe Carrasco, Jr.


FY 2015-16 TREASURY - DEBT SERVICE BUDGET                   S.B. 122 (S-1, Draft 2):  SENATE SUBCOMITTEE REC.

 

 

 

 

 

 

 

 

Senate Bill 122 (S-1, Draft 2 as reported)                                     Throughout this document Senate means Subcommittee.

Committee:  Appropriations

 

 

 

 

CHANGES FROM

FY 2014-15 YEAR-TO-DATE

FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE

FY 2014-15

YEAR-TO-DATE

FY 2015-16

SENATE SUBCOMM.

AMOUNT

PERCENT

FTE Positions..............................................................

N/A

N/A

N/A

N/A

GROSS.........................................................................

152,395,000

156,449,000

4,054,000

2.7

Less:

 

 

 

 

   Interdepartmental Grants Received.....................

0

0

0

0.0

ADJUSTED GROSS..................................................

152,395,000

156,449,000

4,054,000

2.7

Less:

 

 

 

 

   Federal Funds..........................................................

0

0

0

0.0

   Local and Private....................................................

0

0

0

0.0

TOTAL STATE SPENDING.......................................

152,395,000

156,449,000

4,054,000

2.7

Less:

 

 

 

 

   Other State Restricted Funds................................

0

0

0

0.0

GENERAL FUND/GENERAL PURPOSE..............

152,395,000

156,449,000

4,054,000

2.7

PAYMENTS TO LOCALS..........................................

0

0

0

0.0

 

FY 2014-15 Year-to-Date Gross Appropriation.....................................................................

$152,395,000

 

Changes from FY 2014-15 Year-to-Date:

 

  1.  Clean Michigan initiative. The Governor/Senate increase debt service payments for this bond. Of the total, $5,211,012 is due to changes to existing debt and $1,525,988 is due to projected new bond issues for FY 2015-16. This increased total debt service payments for this bond to $63,961,000.

6,737,000

  2.  Great Lakes water quality bond. The Governor/Senate increased debt service payments to this bond. Of the total, there is a $2,312,879 reduction for existing bonds and a $5,030,879 increase due to projected new bond issues for FY 2015-16. This increased total debt service payments to this bond to $16,529,000.

2,718,000

  3.  Quality of life bond. The Governor/Senate reduced payments to this bond. Of the total, there is a $5,561,293 reduction for existing bonds and a $160,291 increase due to projected new bond issues for FY 2015-16. This reduced total debt service payments for this bond to $75,959,000.

(5,401,000)

  4.  Economic Adjustments. None

 

  5.  Comparison to Governor's Recommendation. The Senate is $0 Gross over/under and $0 GF/GP over/under the Governor.

 

 

Total Changes.....................................................................................................................

$4,054,000

FY 2015-16 Senate Appropriations Subcommittee Gross Appropriation..............................

$156,449,000

 

The changes show the differences between the schedule of programs proposed by the Governor and the prior-year line items.


FY 2015-16 TREASURY- DEBT SERVICE BUDGET


 

 

Boilerplate Changes from FY 2014-15 Year-to-Date:

  1.  There are no boilerplate changes related to Debt Service in Treasury.

 

Date Completed:  3-26-15                                                                                                 Fiscal Analyst:  Cory Savino


FY 2015-16 TREASURY - OPERATIONS  BUDGET                    S.B. 122 (S-1, Draft 2):  SENATE SUBCOMMITTEE REC.                                                                                                                                                                        


[Please see the PDF version of this analysis, if available, to view this image.]

 

 

 

 

 

 

 

Senate Bill 122 (S-1, Draft 2 as reported)                                  Throughout this document Senate means Subcommittee.

Committee:  Appropriations

 

 

 

 

CHANGES FROM

FY 2014-15 YEAR-TO-DATE

FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE

FY 2014-15

YEAR-TO-DATE

FY 2015-16

SENATE SUBCOMM.

AMOUNT

PERCENT

FTE Positions..............................................................

1,863.5

1,901.5

38.0

2.0

GROSS.........................................................................

554,336,400

533,426,200

(20,910,200)

(3.8)

Less:

 

 

 

 

   Interdepartmental Grants Received.....................

9,409,100

9,500,700

91,600

1.0

ADJUSTED GROSS..................................................

544,927,300

523,925,500

(21,001,800)

(3.9)

Less:

 

 

 

 

   Federal Funds..........................................................

39,705,400

39,661,500

(43,900)

(0.1)

   Local and Private....................................................

2,005,600

9,055,100

7,049,500

351.5

TOTAL STATE SPENDING.......................................

503,216,300

475,208,900

(28,007,400)

(5.6)

Less:

 

 

 

 

   Other State Restricted Funds................................

381,548,000

354,978,600

(26,569,400)

(7.0)

GENERAL FUND/GENERAL PURPOSE..............

121,668,300

120,230,300

(1,438,000)

(1.2)

PAYMENTS TO LOCALS..........................................

197,086,000

199,157,300

2,071,300

1.1


 

FY 2014-15 Year-to-Date Gross Appropriation.....................................................................

$554,336,400

 

Changes from FY 2014-15 Year-to-Date:

 

  1.  City Income Tax Administration. The Governor/Senate created a program that supports cities in the collection of city income taxes. There are also 24.0 FTEs included in this program. The program would be funded by local funds from the Local City Income Tax fund.

7,050,000

  2.  Payments in Lieu of Taxes (PILT). The Governor/Senate increased this unit in order to ensure that it is being fully funded in accordance to statute and for scheduled statutory increases in the Swamp and Tax Reverted Land Program from $3 per acre to $4 per acre. GF/GP supports $4.5 million of the total.

4,919,200

  3.  Financial Independence Team. The Governor/Senate restored the cuts to the financial independence team that were done in H.B. 4112.

2,250,000

  4.  Financial Review Commission. The Governor/Senate created the Financial Review Commission to provide ongoing support to review Detroit compliance with the Detroit Bankruptcy package that was passed in 2014.

2,000,000

  5.  Treasury Online Business Portal. The Governor/Senate created a new Department of Treasury Business Portal funded at $2.6 million of which, $2.0 million is appropriated as ongoing while $600,000 is one-time. The funds go to the Information Technology line item.

2,600,000

    6.   Personal Property Tax Reform and Essential Services Assessment Act program. The Governor/Senate increased administrative support for this program. 9.0 FTEs and $1.5 million have been moved from one-time implementation to ongoing administration. The Governor also increased the program by an additional $1.8 million and 2.0 FTEs totaling $3,345,000 in FY 2015-16.

1,845,000

  7.  Casino & Gaming Legal Affairs. The Governor/Senate increased the Casino gaming control administration line item to provide licensing and regulation associated with live horse races, verifying electronic gaming devices, and enhancing the agency's communication strategies. No additional GF/GP is included in this increase.

514,100

  8.  Data Collection Authorization Increase. The Governor/Senate increased the Financial and Administrative Services unit due to additional data collection fees.

40,000

  9.  Lottery Promotion and Advertising. The Governor/Senate removed the Lottery Promotion and Advertising line item, however, boilerplate sec. 964 was added that allows the Department to use 1% of the lottery gross sales towards promotion and advertising.

(18,622,000)

10.  Administrative Efficiency Reduction. The Governor/Senate continued reductions in multiple line items due to administrative efficiencies, first done in E.O. 2015-5 and H.B. 4112, and increased them by $800,000 for FY 2015-16.

(800,000)

11.  Land Reutilization Funding. The Governor/Senate reduced funding to the Supervision of the General Property tax law line item due to decreased revenue from Land Reutilization Fund fees. This cut is not offset by any additional funds.

(3,304,500)

12.  Senior Citizen Cooperative Housing Tax Exemption. The Governor/Senate continued the reduction in funding to this line item, first done in E.O. 2015-5. Costs of this program have been reduced due in part to reassessments of property values. The reduction reflects the anticipated lapse amount.

0

13.  Elimination of One-Time items. The Governor/Senate eliminated the one-time appropriations of $600,000 that went towards creating a system that allows individuals to pay income tax owed on credit cards, and a $1.1 million grant to Flint for police and fire.

(1,600,000)

14.  Remove Supplemental Funding. The Governor/Senate eliminated FY 2014-15 supplemental funding. PA 282 and 182 of 2014 made one-time appropriations to Tax and Economic Policy ($1.0 million) and Executive Operations ($100,000). H.B. 4112 made a one-time special grant for the proposed ballot proposal (11.0 million), Casino IT upgrades ($3.0 million), income tax fraud prevention start-up ($1.6 million), and driver responsibility fee phase-out ($550,000).

(17,250,000)

15.  Economic Adjustments. Standard economic adjustments increased $1,752,600 Gross and $284,500 GF/GP. However, economic adjustments for OPEB more than offset the increase in standard economics, and totaled a negative $2,252,700 Gross and negative $373,500 GF/GP. Other economic adjustments totaled a negative $51,900 Gross and negative $12,500 GF/GP.

(552,000)

16.  Comparison to Governor's Recommendation. The Senate is $0 gross and $0 GF/GP over/under the Governor.

 

 

Total Changes.....................................................................................................................

($20,910,200)

FY 2015-16 Senate Appropriations Subcommittee Gross Appropriation..............................

$533,426,200

 

The changes show the differences between the schedule of programs proposed by the Governor and the prior-year line items.

 

Boilerplate Changes from FY 2014-15 Year-to-Date:

  1.  Deleted by Governor and Senate. The Governor/Senate deleted sections, this includes a restriction on bridge cards for lottery tickets (963) and the one-time grant to the city of Flint (949a). (Secs. 963 & 949a)

  2.  Deleted by Governor, Retained by Senate. The Governor deleted and Senate retained a couple sections, this includes notification of bond refinancing (902a) and the Personal Property Tax audit report (927). (Secs. 902a & 927)

  3.  New sections from Governor, concurred by Senate. The Senate concurred with a number of new/modified sections that were proposed by the Governor, this includes:

i.        Requiring that personal property tax payments be in compliance with statute. (Sec. 949a)

ii.       Providing guidelines and benchmarks for the City Income Tax Administration program. (Sec. 949b)

iii.      Providing guidelines and benchmarks for the Online Business Portal. (Sec. 949c)

iv.     Providing guidelines and benchmarks for the Financial Review Commission. (Sec. 949d)

v.      Providing guidelines and benchmarks for the phase-in of the Essential Services Assessment program. (Sec. 949e)

vi.     Allowing Tobacco Tax revenue within Wayne County to move from one indigent care program in the county to another health care program. (Sec. 949f)

  4.  Income Tax Fraud Prevention. The Senator concurred with a section added by the Governor, which allows Treasury to contract with a private agency to prevent the disbursement of fraudulent tax returns. A portion of the funds that have been prevented from being disbursed goes towards funding this program, but it cannot exceed $1.6 million. The section also requires a report to the Legislature on the amount of fraudulent tax returns that were stopped. $1.6 million in delinquent tax revenue was put into the FY 2014-15 supplemental (H.B. 4112), which started this program. (Sec. 948)

  5.  Audits Modification. The Senate concurred with a section that was modified by the Governor, which reduced the assessment and certification division audits on locals units from a full 14-point review for one local unit in each county to an audit of minimum assessing requirements review for each county. (Sec. 945)

  6.  Lottery Promotion. The Senate concurred with a new section that was added by the Governor, which allows 1% of gross lottery sales to be used towards promotion. (Sec. 964)

  7.  Audit Charges. The Senate modified language in section 906 to restrict the cost that audits can be charged to the exact cost for performing the audit. (Sec. 906)

  8.  Unclaimed Property audits. The Senate modified section 919 so that private auditors can only be charged at a market value, hourly basis, and not on a contingency basis. (Sec. 919)

  9.  Pension Plan Consultants. The Governor deleted and Senate retained with modification, sec. 945 to require that the department retain reports from pension plan consultants and make them available to the legislature upon request. (sec. 945)

10.  Technical Adjustments. The Governor/Senate made multiple technical adjustments to reflect date changes, payments to locals adjustments, and legacy cost adjustments.

 

Date Completed:  4-6-15                                                                                                   Fiscal Analyst:  Cory Savino


 


 


 


FY 2015-16 TREASURY - REVENUE SHARING BUDGET         S.B. 122 (S-1, Draft 2):  SENATE SUBCOMMITTEE REC.


[Please see the PDF version of this analysis, if available, to view this image.]

 

 

 

 

 

 

Senate Bill 122 (S-1, Draft 2 as reported)                                 Throughout this document Senate means Subcommittee.

Committee:  Appropriations

 

 

 

 

CHANGES FROM

FY 2014-15 YEAR-TO-DATE

FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE

FY 2014-15

YEAR-TO-DATE

FY 2015-16

SENATE SUBCOMM.

AMOUNT

PERCENT

FTE Positions..............................................................

N/A

N/A

N/A

N/A

GROSS.........................................................................

1,232,694,000

1,251,661,100

18,967,100

1.5

Less:

 

 

 

 

   Interdepartmental Grants Received.....................

0

0

0

0.0

ADJUSTED GROSS..................................................

1,232,694,000

1,251,661,100

18,967,100

1.5

Less:

 

 

 

 

   Federal Funds..........................................................

0

0

0

0.0

   Local and Private....................................................

0

0

0

0.0

TOTAL STATE SPENDING.......................................

1,232,694,000

1,251,661,100

18,967,100

1.5

Less:

 

 

 

 

   Other State Restricted Funds................................

1,232,694,000

1,251,237,000

18,543,000

1.5

GENERAL FUND/GENERAL PURPOSE..............

0

424,100

424,100

- -

PAYMENTS TO LOCALS..........................................

1,232,694,000

1,251,661,100

18,967,100

1.5

 


FY 2014-15 Year-to-Date Gross Appropriation.....................................................................

$1,232,694,000

 

Changes from FY 2014-15 Year-to-Date:

 

  1.  Constitutional Revenue Sharing. The Governor recommended $788,497,000 for constitutional revenue sharing in FY 2015-16, an increase of 3.1% over the January 2015 consensus estimate of payments in FY 2014-15. Constitutional revenue sharing is paid to cities, villages, and townships on a per-capita basis. The Senate concurred.

23,843,000

  2.  City, Village, and Township Revenue Sharing. The Governor reduced nonconstitutional (statutory) revenue sharing to CVTs by 2.3% to $243,040,000. The Governor removed the per capita payment option for CVTs with a population over 7,500 that was included in the FY 2014-15 budget. This would remove 101 local units of government (100 townships and 1 city) from eligibility for a payment, leaving 486 eligible local units, the same units as in FY 2013-14. The Senate concurred with Governor in removal of the per capita payment. The Senate added $424,100 for alternate payments which would prevent a local unit that received a per capita payment in FY 2014-15 from declining in total revenue sharing (constitutional and statutory) from FY 2014-15 to FY 2015-16. It is estimated that 103 CVTs would receive alternate payments under this provision. The total of alternate payments would be capped at $424,100 and prorated as necessary. The Senate provided $243,464,100 in CVT revenue sharing in FY 2015-16.

(5,375,900)

  3.  County Revenue Sharing and County Incentive Program. The Governor increased revenue sharing funding for counties by $3.5 million to $214.7 million to cover the cost of counties that return to State-paid revenue sharing for the first full or part-year of payments in FY 2015-16. The line item for County Revenue Sharing would receive $2.8 million and the County Incentive Program (which requires compliance with accountability and transparency requirements) would receive $700,000. The Senate concurred.

3,500,000

  4.  Financially Distressed Cities, Villages, and Townships. This grant program to CVTs with signs of probable financial distress would be reduced from $8.0 million in FY 2014-15 to $5.0 million in FY 2015-16. The Senate concurred.

(3,000,000)

  5.  Comparison to Governor's Recommendation.  The Senate is $424,100 Gross over and $424,100 GF/GP over the Governor.

 

 

Total Changes.....................................................................................................................

$18,967,100

FY 2015-16 Senate Appropriations Subcommittee Gross Appropriation..............................

$1,251,661,100

 

The changes show the differences between the schedule of programs proposed by the Governor and the prior-year line items.

 

Boilerplate Changes from FY 2014-15 Year-to-Date:

  1.  City, Village, and Township Revenue Sharing Eligibility. The Governor deleted the distribution of $2.64659 per capita to CVTs with a population of over 7,500 that was in effect for FY 2014-15. Eligibility remains for CVTs that received a statutory revenue sharing payment in FY 2009-10 greater than $4,500. Those CVTs are eligible for up to 78.51044% of the payment received in FY 2009-10.  The Senate concurred with Governor in elimination of the per capita payment and retention of the payment calculation for CVTs that received at least $4,500 of statutory revenue sharing in FY 2009-10. The Senate added alternate payments for CVTs that received a per capita payment in FY 2014-15. The alternate payment would be the amount by which the total of statutory and constitutional revenue sharing in FY 2015-16 (excluding the new alternate payment) was less than the total of statutory and constitutional revenue sharing in FY 2014-15, for CVTs that received a per capita payment in FY 2014-15. The total of the alternate payments would be capped at $424,100 and prorated as necessary. (Sec. 952)

  2.  Accountability and Transparency. The Governor revised the accountability and transparency criteria for CVTs and counties to specify that the report of debt service payments includes payments until maturity of the debt and to require that eligible CVTs and counties include information in any general mailing to citizens about the internet or physical location of the accountability and transparency reports. The Senate concurred. (Sec. 952)

  3.  County Revenue Sharing Withholding. The Governor authorized the withholding of revenue sharing payments to a county if the county is more than three months delinquent in maintaining the county child care fund or State ward board and care chargeback obligations. These obligations relate to foster care and juvenile justice. The Senate allowed payments to be withheld if the county is at least 6 months delinquent, the Department of Human Services previously has notified the county court administrator and the chair of the county board of commissioners that the county was 3 months delinquent, the amount of the withholding is limited to the amount of the delinquency, and the withholding is only implemented after the director of DHS sends a formal, written notice to Treasury that states that the county is at least 6 months delinquent, the amount of the delinquent payments, and that payments should be withheld. (Sec. 952(5)(i))

  4.  Financially Distressed CVTs. The Governor delayed the report date for grant awards from March 15 to September 30. The Governor expanded examples of allowable uses for the grants. The Governor added replacement of critical infrastructure (instead of just repair), added repair or replacement of critical equipment owned by the CVT; permitted qualifying infrastructure to be either owned or maintained by the CVT (as opposed to "owned and maintained" by the CVT; allowed funds to be used to reduce any type of debt service obligations (not just obligations supported by the local general fund), and specified that shared services are provided in conjunction with another jurisdiction. The Governor also updated work project amounts and dates and removed the direction for Treasury to establish an application process. The Senate retained language on the application process, changed the report due date to March 31, and concurred with Governor on other items. (Sec. 20-956)

  5.  County Revenue Sharing - Statement of Purpose. The Governor added language to state that the purpose of the increased funding for county revenue sharing is to provide the funding allowed under Sec. 44a of the General Property Tax Act. Senate did not include. (Sec. 20-957)

  6.  Online Financial Accountability Reporting System. The Governor deleted language that required the Department of Treasury to work with the Department of Technology, Management, and Budget to issue a request for proposals (RFP) for a statewide financial accountability reporting system accessible to the general public and report on the status of the RFP by March 15. The Senate concurred. (Sec. 958)

 

Date Completed:  4-16-15                                                                                              Fiscal Analyst:  Elizabeth Pratt

 

 


FY 2015-16 TREASURY - MI STRATEGIC FUND BUDGET       S.B. 122 (S-1, Draft 2):  SENATE SUBCOMMITTEE REC.

 

 

 

 

 

 

 

 

Senate Bill 122 (S-1, Draft 2 as reported)                                  Throughout this document Senate means Subcommittee.

Committee:  Appropriations

 

 

 

 

CHANGES FROM

FY 2014-15 YEAR-TO-DATE

FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE

FY 2014-15

YEAR-TO-DATE

FY 2015-16

SENATE SUBCOMM.

AMOUNT

PERCENT

FTE Positions..............................................................

756.0

756.0

0.0

0.0

GROSS.........................................................................

1,002,779,900

1,006,582,500

3,802,600

0.4

Less:

 

 

 

 

   Interdepartmental Grants Received.....................

0

0

0

0.0

ADJUSTED GROSS..................................................

1,002,779,900

1,006,582,500

3,802,600

0.4

Less:

 

 

 

 

   Federal Funds..........................................................

627,370,300

627,305,000

(65,300)

(0.0)

   Local and Private....................................................

10,088,400

10,082,500

(5,900)

(0.1)

TOTAL STATE SPENDING.......................................

365,321,200

369,195,000

3,873,800

1.1

Less:

 

 

 

 

   Other State Restricted Funds................................

142,678,700

181,088,000

38,409,300

26.9

GENERAL FUND/GENERAL PURPOSE..............

222,642,500

188,107,000

(34,535,500)

(15.5)

PAYMENTS TO LOCALS..........................................

11,224,800

15,224,800

4,000,000

35.6

 


 

FY 2014-15 Year-to-Date Gross Appropriation.....................................................................

$1,002,779,900

 

Changes from FY 2014-15 Year-to-Date:

 

  1.  Restore Supplemental Reductions. House Bill 4112 resulted in a one-time decrease of $22.0 million in Gross and GF/GP. These reductions occurred in Business Attraction and Community Revitalization ($2.2 million), Entrepreneurship Eco-systems ($7.8 million), and Film Incentives ($12.0 million). The Governor and Senate restored these cuts for FY 2015-16.

22,000,000

  2.  Pure Michigan. The Governor increased $1.0 million in 21st Century Jobs Trust Fund to this line item. This increased total appropriations to $30.0 million. The Senate increased 21st Century Job Trust Fund by an additional $5.0 million to $35.0 million.

6,000,000

  3.  Charles H. Wright Museum. The Senate added a $100 placeholder in one-time appropriations for capital improvements at the Charles H. Wright Museum of African American History.

100

  4.  Elimination of One-time items. The Governor/Senate eliminated the FY 2014-15 one-time appropriations for special grants ($15.8 million) and the automotive, engineering and manufacturing fund ($2.0 million).

(17,750,000)

  5.  Business Attraction and Community Revitalization. The Governor reduced $1.0 million in 21st Century Jobs Trust Fund from this line item. The Senate reduced 21st Century Job Trust Fund by an additional $5.0 million, decreasing gross appropriations to $124.0 million. The Senate also reduce general fund by $38.5 million. Of the total, $17.9 million in one-time funding was replaced with MEDC Corporate Revenue, and $20.6 million in ongoing funding was replaced with 21st Century Permanent Fund revenue, decreasing GF/GP appropriations to $70.5 million. Section 1002 provides intent language for use of the two funds. The Senate also transferred $100 to the capital improvements for the Charles H. Wright Museum.

(6,000,100)

  6.  Michigan Film Office. The Governor/Senate eliminated the GF/GP to this office, which reduces total appropriations to $653,800. However, statute allows for up to 4% of the total appropriations to the film incentive program to go towards administration, which can support the office.

(237,100)

  7.  Economic Adjustments. Economic adjustments increased $210,000 Gross and $93,900 GF/GP. Also includes negative $413,800 Gross and negative $142,300 GF/GP for OPEB and negative $6,500 Gross and $0 GF/GP for other economic adjustments.

(210,300)

  8.  Other Changes. The Governor consolidated ten Workforce Development line items into two. The consolidation resulted in no overall change to the line items other than economic adjustments. The Senate did not concur with the Governor's consolidation, maintaining current law with economic adjustments

 

  9.  Comparison to Governor's Recommendation. The Senate is equal in Gross and $38.5 million in GF/GP under the Governor.

 

 

Total Changes.....................................................................................................................

$3,802,600

FY 2015-16 Senate Appropriations Subcommittee Gross Appropriation..............................

$1,006,582,500

 

The changes show the differences between the schedule of programs proposed by the Governor and the prior-year line items.

 

Boilerplate Changes from FY 2014-15 Year-to-Date:

  1.  MEDC Corporate Revenue/21st Century Permanent Fund. The Senate added legislative intent language to use MEDC corporate revenue and revenue from the 21st Century Permanent Fund to replace reductions in GF/GP. (Sec. 1002)

  2.  Deleted by Governor and Senate. The Governor and Senate deleted a number of sections, this includes: the Housing Rehabilitation Task Force (990), restrictions on future funding for Business Incubators (1034(2)), the bond issuance for the Facility for Rare Isotope Beams (1037(1)), limit on business attraction and community revitalization appropriation transfer (1041), funding for the West Michigan film office (1043), the Michigan Heritage Restoration program (1044 & 1049), bond issuances for the Community College Skilled Trades Equipment program (1052), the Aerospace Supplier program (1057), the Low-income transportation workgroup (1058), the Pre-college Engineering program (1059), and the GED-to-school program (1069). (Secs. 990, 1034(2), 1041, 1043, 1044, 1049, 1052, 1057, 1058, 1059, 1069)

  3.  Sections retained by the Senate, deleted by the Governor. The Senate retained a number of sections that were deleted by the Governor, this includes: MSDHA reports (980 & 981), the Land Bank Fast Track Authority report (985), references to loans made by the Michigan film office (1032), administrative oversight on the construction of the Facility for Rare Isotope Beams (1037), and the Workforce Development workgroup (1070). (Secs. 980, 981, 985, 1032, 1037)

  4.  New/Modified sections proposed by the Governor, concurred by the Senate. The Senate concurred with a number of new/modified sections that were proposed by the Governor, this includes: modifications to the Pure Michigan report (1007), removing references to indirect economic impact, jobs, and private investment from the film incentive report (1033), allowing the skilled trades training program to use up to $5.0 million towards matching Federal funds (1039b), a new report on the status of skilled trades equipment projects (1052), providing benchmarks for the one-time funding for Business Attraction and Community Revitalization (1071), and providing benchmarks for the one-time funding for Film Incentives (1072). (Secs. 1007, 1033, 1039b, 1052, 1071, 1072)

  5.  Iraq War Refugees. The Senate allocated $500,000 from Community Ventures to be used towards workforce development for refugees of the Iraq war. (Sec. 1073)

  6.  Unmanned Aerial Systems technology. The Senate allocated an award of $750,000 from Business Attraction and Community Revitalization to consortiums that are developing unmanned aerial systems technology. (Sec. 1074)

  7.  Van Andel Institute. The Senate allocated up to $1.0 million from Entrepreneurship Eco-system to the Van Andel Institute to use for matching Federal funds, Private/nonprofit grants, and private contributions. (Sec. 1075)

  8.  Technical Changes. The Governor and Senate made a number of technical adjustments throughout the bill to reflect date changes, alignment with statute, consistency in reporting, and Legacy Cost adjustments.

 

Date Completed:  4-16-15                                                                                                 Fiscal Analyst:  Cory Savino

 

 

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.