FY 2017-18 SUPPLEMENTAL H.B. 4321 (S-1):
SUMMARY OF BILL
REPORTED FROM COMMITTEE
House Bill 4321 (Substitute S-1 as reported)
Sponsor: Representative Laura Cox
House Committee: Appropriations
Senate Committee: Appropriations
CONTENT
The bill would provide supplemental appropriations for fiscal year (FY) FY 2017-18 for the Department of Transportation and three other State budget areas. The bill proposes FY 2017-18 Gross appropriations of $182.4 million, with $4.0 million from Federal funds and $178.4 million from General Fund/General Purpose (GF/GP) revenue. Most of the proposed GF/GP funding, $175.0 million, is for road funding in the Department of Transportation. The bill also proposes $4.0 million of Federal Help America Vote Act (HAVA) revenue in the Department of State; $2.4 million GF/GP in the Department of State Police; and $1.0 million GF/GP for the Attorney General's budget. Table 1 summarizes the appropriations in the bill.
Table 1
FY 2017-18 Supplemental Appropriations |
|||||
Budget Area |
Gross |
Federal |
Local/ Private |
State Restrict. |
GF/GP |
Attorney General |
$1,000,000 |
$0 |
$0 |
$0 |
$1,000,000 |
State |
4,000,000 |
4,000,000 |
0 |
0 |
0 |
State Police |
2,400,000 |
0 |
0 |
0 |
2,400,000 |
Transportation |
175,000,000 |
0 |
0 |
0 |
175,000,000 |
TOTAL FY 2017-18 |
$182,400,000 |
$4,000,000 |
$0 |
$0 |
$178,400,000 |
FISCAL IMPACT
Department of Transportation
The bill proposes to appropriate $175.0 million of GF/GP revenue for State and local roads for the 2017-18 fiscal year. The money would be divided into three parts, as one-time appropriations: $38,150,000 (21.8%) for Cities and Villages, $68,425,000 (39.1%) for County Road Commissions, and $68,425,000 (39.1%) for State Trunkline preservation and next generation technologies and service delivery. This division of supplemental money matches the percentage division of Michigan Transportation Fund money among the State and local units of government pursuant to Section 10 of Public Act 51 of 1951.
The first column in Table 2 shows the total appropriation for transportation in the current year, as well as the individual amounts of that total set aside for counties, cities and villages, and the State Trunkline. The second column shows the increase of each as a result of the supplemental, and the third column shows the percentage increase as a result of the supplemental.
Table 2
FY 2017-18 Department of Transportation Supplemental Appropriations |
|||
|
FY 2017-18 Year-to-Date |
FY 2017-18 Supplemental Increase |
Percentage Increase |
County Road Commissions |
$880,938,200 |
$68,425,000 |
8.0% |
Cities and Villages |
491,162,500 |
38,150,000 |
8.0 |
State Trunkline Road & Bridge + Federal Aid |
1,140,756,800 |
68,425,000 |
6.0 |
Total Transportation Budget |
$4,349,443,000 |
$175,000,000 |
4.0% |
The bill would increase the Department of Transportation's road and bridge funding line item by $68,425,000 for the current fiscal year and would increase distributions to local units of government for local roads and bridges by $106,575,000, also for the current fiscal year.
The Governor's proposed budget for FY 2018-19 included $175.0 million GF/GP for roads. Assuming that the supplemental and proposed budget are both targeting the same pool of money, enactment of the supplemental for the current year could remove the $175.0 million from the FY 2018-19 appropriation.
The first column of numbers in Appendices A and B shows the Senate Fiscal Agency's estimated amounts that each city or county will receive of current-year appropriations. The second column, provided by the Department of Transportation's Budget Reports and Financial Outreach Unit, shows the additional money each city or county would receive as a result of the supplemental. The final column shows the percentage increase in funding from the appropriated amounts as a result of the proposed increase for the current fiscal year.
Other State Budget Areas
The bill would provide additional FY 2017-18 appropriations of $7.4 million Gross and $3.4 million GF/GP, for the Departments of: Attorney General ($1.0 million); State ($4.0 million, all Federal funds); and State Police ($2.4 million). Table 3 summarizes the details of the appropriations in this bill.
FY 2017-18 BOILERPLATE LANGUAGE SECTIONS
Sec. 201. General. Records the amount of total State spending and payments to local units of government.
Sec. 202. General. Subjects the appropriations and expenditures in the bill to the provisions of the Management and Budget Act.
Sec. 250. Attorney General. Requires the allocation of $1.0 million from general operations for investigation into systemic issues with sexual misconduct at Michigan State University.
Sec. 301. Transportation. Limits the use of the money for cities and villages to the construction and preservation of streets.
Sec. 302. Transportation. Limits the use of the money for counties to the construction and preservation of roads.
Sec. 303. Transportation. Restricts the use of the money for the Department so that not more than $15.0 million would be available for projects related to next generation technologies, hydrogen fueling stations, and service delivery, including projects to provide enhanced services for seniors and people with disabilities. The section requires a report on the use of funds for next generation technologies on or before March 1, 2019. The section also prohibits the use of the State's share for the purchase, construction, operation, or maintenance of a communications network to provide services to residential or commercial premises. The prohibition does not apply to expenditures for a transportation purpose, connected vehicle communication technologies, or other transportation-related activities.
Table 3
FY 2017-18 Supplemental: House Bill 4321 (S-1) |
||
|
Senate Substitute |
|
Department/Program |
Gross |
GF/GP |
Attorney General |
|
|
Investigation into systemic sexual misconduct issues at MSU........... |
$1,000,000 |
$1,000,000 |
Total Attorney General.......................................................... |
$1,000,000 |
$1,000,000 |
|
|
|
State |
|
|
Voting equipment purchase/replacement (HAVA interest earnings).... |
$4,000,000 |
$0 |
Total State........................................................................... |
$4,000,000 |
$0 |
|
|
|
State Police |
|
|
Disaster and emergency contingency fund................................... |
$2,000,000 |
$2,000,000 |
Post operations-equip officers with NARCAN nasal spray................. |
250,000 |
250,000 |
Public safety officers benefit program......................................... |
150,000 |
150,000 |
Total State Police.................................................................. |
$2,400,000 |
$2,400,000 |
|
|
|
Transportation |
|
|
County road commissions......................................................... |
$68,425,000 |
$68,425,000 |
State trunkline roads/bridges (includes $15 million next gen tech)..... |
68,425,000 |
68,425,000 |
Cities and villages.................................................................... |
38,150,000 |
38,150,000 |
Total Transportation............................................................. |
$175,000,000 |
$175,000,000 |
|
|
|
Total FY 2017-18 Supplemental Appropriations....................... |
$182,400,000 |
$178,400,000 |
Date Completed: 2-28-18 Fiscal Analysts: Michael Siracuse, Ellen Jeffries, and Steve Angelotti
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.