FY 2018-19 INSURANCE AND FINANCIAL SERVICES BUDGET             H.B. 5575 (H-2) CR-1:  CONFERENCE REPORT

			CHANGES FROM FY 2017-18 YEAR-TO-DATE
FULL-TIME EQUATED (FTE) CLASSIFIED POSITIONS/FUNDING SOURCE	FY 2017-18 YEAR-TO-DATE*	FY 2018-19 CONFERENCE	AMOUNT	PERCENT
FTE Positions...............................................................	336.5	336.5	0.0	0.0
GROSS..........................................................................	66,741,400	67,971,900	1,230,500	1.8
Less:
Interdepartmental Grants Received........................	707,600	713,800	6,200	0.9
ADJUSTED GROSS.....................................................	66,033,800	67,258,100	1,224,300	1.9
Less:
Federal Funds...........................................................	2,014,700	2,017,300	2,600	0.1
Local and Private......................................................	0	0	0	0.0
TOTAL STATE SPENDING.........................................	64,019,100	65,240,800	1,221,700	1.9
Less:
Other State Restricted Funds...................................	63,869,100	64,690,800	821,700	1.3
GENERAL FUND/GENERAL PURPOSE....................	150,000	550,000	400,000	266.7
PAYMENTS TO LOCALS............................................	0	0	0	0.0

*As of May 3, 2018.

FY 2017-18 Year-to-Date Gross Appropriation.....................................................................

$66,741,400

Changes from FY 2017-18 Year-to-Date:
Items Included by the Senate and House
1. Economic Adjustments. Includes $830,500 Gross and $0 GF/GP for total economic adjustments, of which an estimated negative $38,200 Gross and negative $100 GF/GP is for legacy retirement costs (pension and retiree health).	830,500
2. One-Time Insurance Evaluation Enhancement. The Senate and House included additional one-time funding of $400,000 from the Insurance Bureau Fund for the department to complete a study, with the assistance of an actuarial firm, of this state's pursuit of a state innovation waiver as available under Section 1332 of the Patient Protection and Affordable Care Act. The Conference included $400,000 for the study, but the funding source was altered to GF/GP in place of the insurance bureau fund.	400,000
3. FY 2018-19 One-Time Gross Appropriations. $400,000 for the Patient Protection and Affordable Care Act State Innovation Waiver Study.

Total Changes.....................................................................................................................	$1,230,500
FY 2018-19 Conference Report Ongoing/One-Time Gross Appropriation.............................	$67,971,900
Amount Over/(Under) GF/GP Target:	$0

Boilerplate Changes from FY 2017-18 Year-to-Date:

Items Included by the Senate and House

1. Definitions. The Governor modified this section to remove the definitions for "LARA", "MBLSLA fund", and "Subcommittees". The Senate and House retained. (Sec. 203)

2. Out-of-State Travel Report. The Governor replaced this report with a less detailed version consistent with the report found in most other Department budget bills. The replacement version removed certain travel limitations. The Senate and House retained the original language. (Sec. 207)

3. Communication with the Legislature. The Governor removed a section prohibiting the Department from taking disciplinary action against employees who communicate with the Legislature. The Senate and House retained. (Sec. 218)

4. TV or Radio Productions. The Governor removed a section prohibiting the Department from producing radio or TV productions. The Senate and House retained. (Sec. 219)

5. Healthy Michigan Plan - Accounting. The Governor removed a section requiring the Department to notify the State Budget Office and fiscal agencies of any changes to the existing accounting structure for costs associated with Healthy Michigan. The Senate and House retained. (Sec. 220)

6. Healthy Michigan Reporting. The Governor removed a section that limited GF/GP expenditures regarding the Healthy Michigan Plan to meeting reporting requirements. The section was not applicable as the budget recommendation included no GF/GP funds. The Senate and House retained. (Sec. 221)

7. Health Insurance Rate Filings Report. The Governor removed a section requiring the Department to report annual rate filings to the Legislature. The Senate retained with the revision that the report is not required to contain an estimate of the percentage of the state's population that is uninsured. (Sec. 301)

8. State Innovation Waiver Study. The Senate and House added new language requiring the Department to use one-time funding to have an actuarial firm complete a study capable of supporting the State's pursuit of a Section 1332 state innovation waiver under the Patient Protection and Affordable Care Act. (Sec. 401)

Date Completed:  6-5-18                                                                                   Fiscal Analysts:  Elizabeth Raczkowski

                                                                                                                                                                 Michael Siracuse

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.