Summary:  Second Conference Report

ALL GENERAL GOVERNMENT DEPARTMENTS

FY 2004-05  House Bill 5517

FY 2003-04 YTD

Revised

Executive

House

Senate

Conference

Gross

$2,758,850,932

$2,542,228,700

$2,570,999,800

$2,554,400,700

$2,597,002,400

IDG/IDT

580,677,200

500,932,400

550,214,600

537,397,900

556,704,500

Federal

62,743,300

51,522,900

50,531,800

50,414,400

50,531,800

Local

2,610,800

20,532,800

2,664,300

2,664,100

20,532,800

Private

550,100

550,100

550,100

550,100

550,100

Restricted

1,773,782,600

1,618,639,600

1,621,781,800

1,618,681,200

1,633,621,300

GF/GP

$338,486,932

$350,050,900

$345,257,200

$344,693,000

$335,061,900

FTEs

6,963.9

6,998.9

6,987.9

6,998.4

7,043.4

Summary:  Second Conference Report

ATTORNEY GENERAL

FY 2004-05  House Bill 5517

FY 2003-04 YTD

Revised

Executive

House

Senate

Conference

Gross

$61,504,400

$62,125,300

$63,230,200

$63,019,400

$62,835,700

IDG/IDT

10,810,600

11,244,300

12,545,500

12,545,500

12,545,500

Federal

9,563,800

9,292,400

8,301,300

8,301,300

8,301,300

Local

0

0

0

0

0

Private

0

0

0

0

0

Restricted

10,870,100

11,070,000

10,485,000

10,485,000

10,485,000

GF/GP

$30,259,900

$30,518,600

$31,898,400

$31,687,600

$31,503,900

FTEs

568.0

562.0

564.0

564.0

564.0

1.         Employee-Related Economic Increases

Includes additional funding to cover increased staff salary, insurance, and retirement costs.

Gross

IDG

Federal

Rest

GF/GP

$3,828,100

818,300

551,900

755,500

$1,702,400

$4,871,400

712,300

556,200

642,400

$2,960,500

$4,871,400

712,300

556,200

642,400

$2,960,500

$4,828,100

818,300

551,900

755,500

$2,702,400

2.         Employee-Related Savings

Reduces funding to partially offset the cost of employee-related economic increases.  Savings are to be achieved by reducing outside contracts, promoting voluntary work schedule adjustments, and continuing a portion of the temporary wage and benefit concessions.

Gross

IDG

Federal

Rest

GF/GP

($1,776,300)

(384,600)

(259,300)

(355,600)

($776,800)

($1,751,300)

(341,900)

(256,200)

(308,300)

($844,900)

($1,751,300)

(341,900)

(256,200)

(308,300)

($844,900)

($1,776,300)

(384,600)

(259,300)

(355,600)

($776,800)

3.         Other Economic Adjustments

Reduces funding for rent by $324,200, building occupancy charges by $127,000, and workers’ compensation premiums by $2,000. 

Gross

GF/GP

($453,200)

($453,200)

($453,200)

($453,200)

($453,200)

($453,200)

($453,200)

($453,200)

4.         Health Professionals

Includes additional funding to cover the cost of services provided by the Attorney General to the Department of Community Health, Bureau of Health Services.  There has been an increase in licensing activities and regulation of health care providers.

Gross

IDG

$0

0

$460,900

460,900

$461,000

461,000

$460,900

460,900

5.         Office of Financial and Insurance Services

Includes additional funding to cover the cost of services provided by the Attorney General to DLEG, Office of Financial and Insurance Services.  There has been a significant increase in the workload due to health care receiverships and liquidations.

Gross

IDG

$0

0

$903,600

903,600

$903,500

903,500

$903,600

903,600

6.         Food Stamp Revenue

Reflects a reduction in the amount of federal funding made available by the U.S. Department of Agriculture for support of food stamp fraud cases.  Federal revenue received has been lower than appropriated amounts.

Gross

Federal

$0

0

($633,800)

(633,800)

($633,800)

(633,800)

($633,800)

(633,800)

7.         Byrne Grant

Reflects the elimination of federal Byrne Grant funding that was once available to support the Attorney General Operations line item.  The funding has been discontinued.

Gross

Federal

$0

0

($364,700)

(364,700)

($364,700)

(364,700)

($364,700)

(364,700)

8.         Real Estate Enforcement

Includes additional FTE position authorization and the associated funding in order to support expenses incurred by the Attorney General for services provided to DLEG.  More specifically, this funding will support costs of prosecutions resulting from unlicensed real estate activities.

FTEs

Gross

Rest

0.0

$0

0

2.0

$200,000

200,000

2.0

$200,000

200,000

2.0

$200,000

200,000

9.         Prisoner Reimbursement

Reflects a reduction in the amount of prisoner reimbursement revenue appropriated in order to more accurately reflect the amount of revenue the Attorney General expects to collect.  There is an overstatement of revenue collections in the FY 2004 budget.

Gross

Rest

$0

0

($719,200)

(719,200)

($719,200)

(719,200)

($719,200)

(719,200)

10.        Executive Budget Revision Letter 05/27/04

Reduces GF/GP to reflect savings from changes in allocating year-end salary and fringe benefit costs between fiscal years and the new actuarial experience study for the State Employee Retirement System.

Gross

GF/GP

($189,800)

($189,800)

$0

$0

$0

$0

($189,800)

($189,800)

11.        Program Reductions

Senate reduces funding for the Prosecuting Attorneys Coordinating Council by $150,000 and funding for Information Technology Services and Projects by $60,600. Conference Committee reduces funding for Information Technology Services and Projects by $14,700.

Gross

GF/GP

$0

$0

$0

$0

($210,600)

($210,600)

($14,700)

($14,700)

12.        $100 Points of Difference

Senate reduces GF/GP funding by $100 for applicable line items in order to create points of difference with the House.

Gross

GF/GP

$0

$0

$0

$0

($200)

($200)

$0

0

Sec. 301.  Contingency Funds

Executive and House include new language which appropriates federal, state restricted, local, and private contingency funding that can be expended upon legislative transfer to a specific line item.  Senate and Conference Committee do not include the new language.

Sec. 307.  Unobligated Antitrust Enforcement Revenue

Current-year Sec. 306 authorizes unobligated antitrust enforcement revenue, up to $250,000, to be carried forward.  Executive retains current law.  House, Senate, and Conference Committee authorize, in addition to the antitrust enforcement revenues, securities fraud, consumer protection, and class action enforcement revenues, and attorney fees recovered by the Department, up to $1,000,000, to be carried forward.

Sec. 309.  Prisoner Reimbursement Revenue

Current-year Sec. 308 authorizes the Department to spend up to $301,700 of prisoner reimbursement revenue on activities related to the State Correctional Facilities Reimbursement Act and authorizes the Department to spend up to $800,000 of prisoner reimbursement revenue, if the Department collects in excess of $1,131,000, on defense of litigation against the state, its departments, or employees in civil actions filed by prisoners.  Executive increases spending authorization from $301,700 to $400,000, increases the amount the Department is to collect from $1,131,000 to $1,231,000, and adds that with the approval of the State Budget Director up to $800,000 of unexpended funds may be carried forward for expenditure in the following year.  House, Senate, and Conference Committee increase spending authorization from $301,700 to $400,000, retain the amount the Department is to collect at $1,131,000, and authorize the excess collected, up to $1,000,000, to be carried forward.

Sec. 311.  Information Technology Appropriation

House and Senate include new language which appropriates $700,000 to the Department for information technology services and projects expenditures. Conference Committee does not include the new language.

Summary:  Second Conference Report

CIVIL RIGHTS

FY 2004-05  House Bill 5517

FY 2003-04 YTD

Revised

Executive

House

Senate

Conference

Gross

$12,654,158

$12,707,300

$12,791,200

$12,182,300

$12,693,000

IDG/IDT

0

0

0

0

0

Federal

934,000

934,000

934,000

934,000

934,000

Local

0

0

0

0

0

Private

0

0

0

0

0

Restricted

0

0

0

0

0

GF/GP

$11,720,158

$11,773,300

$11,857,200

$11,248,300

$11,759,000

FTEs

142.0

141.0

141.0

141.0

141.0

1.         Employee-Related Economic Increases

Includes additional funding to cover increased staff salary, insurance, and retirement costs.

Gross

GF/GP

$870,900

$870,900

$870,900

$870,900

$870,900

$870,900

$870,900

$870,900

2.         Employee-Related Savings

Reduces funding to partially offset the cost of employee-related economic increases.  Savings are to be achieved by reducing outside contracts, promoting voluntary work schedule adjustments, and continuing a portion of the temporary wage and benefit concessions.

Gross

GF/GP

($346,900)

($346,900)

($346,900)

($346,900)

($346,900)

($346,900)

($346,900)

($346,900)

3.         Other Economic Adjustments

Reduces funding for rent and building occupancy charges by $374,700 and worker’s compensation premiums by $1,000. 

Gross

GF/GP

($375,700)

($375,700)

($375,700)

($375,700)

($375,700)

($375,700)

($375,700)

($375,700)

4.         Human Resources Optimization Project

Reduces FTE position authorization and funding by $49,100 as a result of consolidated human resources functions.  The Department of Civil Service will create a new Human Resources Call Center, which will be the central information source for employees who have human resources questions or who need personnel transactions processed, and the Department of Civil Rights will pay them for the services they provide, $29,500.

FTEs

Gross

GF/GP

(1.0)

($19,600)

($19,600)

(1.0)

($19,600)

($19,600)

(1.0)

($19,600)

($19,600)

(1.0)

($19,600)

($19,600)

5.         Executive Budget Revision Letter 05/27/04

Reduces GF/GP to reflect savings from changes in allocating year-end salary and fringe benefit costs between fiscal years and the new actuarial experience study for the State Employee Retirement System.

Gross

GF/GP

($83,900)

($83,900)

$0

$0

$0

$0

($83,900)

($83,900)

6.         Program Reductions

Senatereduces funding for Operations by $550,000 and funding for Information Technology Services and Projects by $58,800.  Conference Committee reduces funding for Information Technology Services and Projects by $14,300.

Gross

GF/GP

$0

$0

$0

$0

($608,800)

($608,800)

($14,300)

($14,300)

7.         $100 Points of Difference

Senatereduces GF/GP funding by $100 for applicable line items in order to create points of difference with the House.

Gross

GF/GP

$0

$0

$0

$0

($100)

($100)

$0

$0

Boilerplate Changes from FY 2003-04:

Sec. 401.  Contingency Funds

Executive and House include new language which appropriates federal contingency funding that can be expended upon legislative transfer to a specific line item.  Senate and Conference Committee do not include the new language.

Summary:  Second Conference Report

CIVIL SERVICE

FY 2004-05  House Bill 5517

FY 2003-04 YTD

Revised

Executive

House

Senate

Conference

Gross

$31,633,837

$35,209,800

$35,262,900

$34,908,300

$35,146,700

IDG/IDT

2,300,000

2,300,000

5,370,900

5,295,900

5,370,900

Federal

4,779,100

4,779,100

4,779,100

4,699,200

4,779,100

Local

1,700,000

1,700,000

1,700,000

1,700,000

1,700,000

Private

150,000

150,000

150,000

150,000

150,000

Restricted

14,872,200

18,545,500

15,474,600

15,412,700

15,474,600

GF/GP

$7,832,537

$7,735,200

$7,788,300

$7,650,500

$7,672,100

FTEs

211.5

240.5

240.5

240.5

240.5

1.         Human Resources Optimization Project

Includes an additional 30.0 FTE positions and $3.0 million for the creation of a new Human Resources Call Center, which will be the central information source for employees who have human resources questions or who need personnel transactions processed.  Also, a portion of the funding will be used for increased information technology costs associated with the consolidation of human resources functions.  House, Senate, and Conference Committee reflect an increase in IDG funding instead of an increase in state restricted funding in order to more accurately reflect the payment structure for consolidated human resources services.

FTEs

Gross

IDG

Rest

30.0

$3,070,900

0

3,070,900

30.0

$3,070,900

3,070,900

0

30.0

$3,070,900

3,070,900

0

30.0

$3,070,900

3,070,900

0

2.         Employee-Related Economic Increases

Includes additional funding to cover increased staff salary, insurance, and retirement costs.

Gross

Rest

GF/GP

$1,949,800

1,127,900

$821,900

$1,949,800

1,127,900

$821,900

$1,949,800

1,127,900

$821,900

$1,949,800

1,127,900

$821,900

3.         Employee-Related Savings

Reduces funding to partially offset the cost of employee-related economic increases.  Savings are to be achieved by reducing outside contracts, promoting voluntary work schedule adjustments, and continuing a portion of the temporary wage and benefit concessions.

Gross

Rest

GF/GP

($588,600)

(384,800)

($203,800)

($588,600)

(384,800)

($203,800)

($588,600)

(384,800)

($203,800)

($588,600)

(384,800)

($203,800)

4.         Other Economic Adjustments

Reduces funding for building occupancy charges by $60,000 and workers’ compensation premiums by $2,000,

Gross

Rest

GF/GP

($62,000)

(40,300)

($21,700)

($62,000)

(40,300)

($21,700)

($62,000)

(40,300)

($21,700)

($62,000)

(40,300)

($21,700)

5.         Administrative Efficiencies

Reflects a savings as a result of reduced spending for contractual services, reduced in-state travel and conference attendance, and delayed improvements to the Human Resources Management Network.

Gross

GF/GP

($600,000)

($600,000)

($600,000)

($600,000)

($680,000)

($680,000)

($600,000)

($600,000)

6.         Human Resources Optimization Project

Reduces FTE position authorization and funding by $49,100 as a result of consolidated human resources functions.  The Department of Civil Service will create a new Human Resources Call Center, which will be the central information source for employees who have human resources questions or who need personnel transactions processed.

FTEs

Gross

Rest

GF/GP

(1.0)

($49,100)

(31,900)

($17,200)

(1.0)

($49,100)

(31,900)

($17,200)

(1.0)

($49,100)

(31,900)

($17,200)

(1.0)

($49,100)

(31,900)

($17,200)

7.         Executive Budget Revision Letter 05/27/04

Reduces GF/GP to reflect savings from changes in allocating year-end salary and fringe benefit costs between fiscal years and the new actuarial experience study for the State Employee Retirement System.

Gross

GF/GP

($53,100)

($53,100)

$0

$0

$0

$0

($53,100)

($53,100)

8.         Program Reduction

Senate and Conference Committee reduce funding for Information Technology Services and Projects.

Gross

IDG

Federal

Rest

GF/GP

$0

0

0

0

$0

$0

0

0

0

$0

($274,200)

(75,000)

(79,900)

(61,900)

($57,400)

($63,100)

0

0

0

($63,100)

9.         $100 Points of Difference

Senatereduces IDG and GF/GP funding by $100 for applicable line items in order to create points of difference with the House.

Gross

IDG

GF/GP

$0

0

$0

$0

0

$0

($400)

(200)

($200)

$0

0

$0

Sec. 501.  Contingency Funds

Executive and House include new language which appropriates federal, state restricted, local, and private contingency funding that can be expended upon legislative transfer to a specific line item.  Senate and Conference Committee do not include the new language.

Sec. 505.  Report on Feasibility of Child Care Centers

Senateincludes new language which requires the Department to prepare a report regarding the feasibility of establishing quality child care centers to accommodate the needs of state employees.  The report is to include possible locations, potential number of children that would be served, possible federal funding sources available, benefits of work behavior and attitudes to employees and employers, and estimated cost of the program.  Conference Committee includes the new language and adds a requirement that the Department of Civil Service work in cooperation with the Office of the State Employer.

Summary:  Second Conference Report

EXECUTIVE OFFICE

FY 2004-05  House Bill 5517

FY 2003-04 YTD

Revised

Executive

House

Senate

Conference

Gross

$4,859,500

$4,859,500

$4,859,500

$4,859,400

$5,205,500

IDG/IDT

0

0

0

0

0

Federal

0

0

0

0

0

Local

0

0

0

0

0

Private

0

0

0

0

0

Restricted

0

0

0

0

0

GF/GP

$4,859,500

$4,859,500

$4,859,500

$4,859,400

$5,205,500

FTEs

84.2

84.2

84.2

84.2

84.2

1.         $100 Points of Difference

Senatereduces GF/GP funding by $100 for applicable line items in order to create points of difference with the House.  Conference Committee includes additional funding for economics.

Gross

GF/GP

$0

$0

$0

$0

($100)

($100)

$346,000

$346,000

Summary:  Second Conference Report

INFORMATION TECHNOLOGY

FY 2004-05  House Bill 5517

FY 2003-04 YTD

Revised

Executive

House

Senate

Conference

Gross

$371,269,300

$365,838,600

$355,248,700

$340,599,300

$360,738,600

IDG/IDT

371,269,300

365,838,600

355,248,700

340,599,300

360,738,600

Federal

0

0

0

0

0

Local

0

0

0

0

0

Private

0

0

0

0

0

Restricted

0

0

0

0

0

GF/GP

$0

$0

$0

$0

$0

FTEs

1,755.4

1,762.4

1,762.4

1,762.4

1,762.4

1.         Employee-Related Economic Increases

Includes additional funding to cover increased staff salary, insurance, and retirement costs.

Gross

IDG

$14,830,600

14,830,600

$14,830,600

14,830,600

$14,830,600

14,830,600

$14,830,600

14,830,600

2.         Employee-Related Savings

Reduces funding to partially offset the cost of employee-related economic increases.  Savings are to be achieved by reducing outside contracts, promoting voluntary work schedule adjustments, and continuing a portion of the temporary wage and benefit concessions.

Gross

IDG

($4,472,200)

(4,472,200)

($4,472,200)

(4,472,200)

($4,472,200)

(4,472,200)

($4,472,200)

(4,472,200)

3.         Executive Order 2003-23 Adjustments

Makes the sameadjustments in the DIT budget as were made in other state department budgets as a result of Executive Order 2003-23, in order to accurately reflect statewide appropriations for information technology services and projects.

Gross

IDG

($13,888,400)

(13,888,400)

($13,888,400)

(13,888,400)

($13,888,400)

(13,888,400)

($13,888,400)

(13,888,400)

4.         FY 2004 Adjustments

Makes the same adjustments in the DIT budget as were made in various other state department budgets as a result of supplemental appropriations.  Also, makes adjustments to reflect actual enacted appropriations for information technology services and projects in other state department budgets.

Gross

IDG

$11,243,100

11,243,100

$11,243,100

11,243,100

$11,243,100

11,243,100

$11,243,100

11,243,100

5.         Reduced Funding for CSES

Reflects a reduction in funding for the Child Support Enforcement System (CSES) in the Family Independence Agency budget based on projected spending levels.  The CSES project has been certified and fully implemented.  Funding will continue to be available for ongoing operation and maintenance costs.

Gross

IDG

($12,000,000)

(12,000,000)

($12,000,000)

(12,000,000)

($12,000,000)

(12,000,000)

($12,000,000)

(12,000,000)

6.         Baseline Reductions

Reflects a savings of $4.3 million as a result of reductions in platform and telecommunication rates, data line charges, data center operations, agency and maintenance services, contractual and consulting services, staff, CSS&M, and equipment purchases.

Gross

IDG

($4,331,600)

(4,331,600)

($4,331,600)

(4,331,600)

($4,331,600)

(4,331,600)

($4,331,600)

(4,331,600)

7.         Unemployment Call Center

Reflects the transfer of the Department of Labor and Economic Growth’s contract with IBM to the Department of Information Technology.  Contract funding supports the Unemployment Call Center and the computer system which houses all of the state’s unemployment data.

Gross

IDG

$9,115,200

9,115,200

$9,115,200

9,115,200

$9,115,200

9,115,200

$9,115,200

9,115,200

8.         Adjustments for Corrections

Reflects adjustments made in the Department of Corrections budget for the conversion of the entire Department from the Correction Management Information System to the Offender Management Network Information System.

Gross

IDG

$2,220,000

2,220,000

$2,220,000

2,220,000

$2,220,000

2,220,000

$2,220,000

2,220,000

9.         Adjustments for State Police

Reflects adjustments made in the Department of State Police budget for the transfer of the Commercial Vehicle Information System Network project, fleet funding, and information technology-related personnel costs from the State Police to DIT.

Gross

IDG

$2,430,000

2,430,000

$2,430,000

2,430,000

$2,430,000

2,430,000

$2,430,000

2,430,000

10.        Human Resources Optimization

Includes additional FTE position authorization and funding for operation and maintenance of the new Human Resources Call Center being implemented in the Department of Civil Service budget.  Funding will cover costs of annual fees for software, staff, server hosting, maintenance and support, and the toll free service.

FTEs

Gross

IDG

4.0

$1,070,900

1,070,900

4.0

$1,070,900

1,070,900

4.0

$1,070,900

1,070,900

4.0

$1,070,900

1,070,900

11.        Executive Budget Revision Letter 05/27/04

Reduces IDG funding to reflect savings from changes in allocating year-end salary and fringe benefit costs between fiscal years and the new actuarial experience study for the State Employee Retirement System.

Gross

IDG

($397,200)

(397,200)

$0

0

$0

0

($397,200)

(397,200)

12.        Program Reductions

Housereduces funding authorization for each line item in the DIT budget by 3% from the original Executive recommendation.  Senate reduces funding by 7%.  Conference Committee reduces funding by 1.4% from the revised Executive recommendation.

Gross

IDG

$0

0

($10,987,100)

(10,987,100)

($25,636,500)

(25,636,500)

($5,100,000)

(5,100,000)

Sec. 571.  Contingency Funds

Executive and House include new language which appropriates IDG funding that can be expended upon legislative transfer to a specific line item.  Executive authorizes appropriation of $40.0 million.  House authorizes appropriation of $10.0 million.  Senate and Conference Committee do not include the new language.

Sec. 572.  User Fees

Current-year Sec. 571 requires the Department to be funded with user fees assessed against other state departments and requires user fees to be based on services provided by the Department. Executive and House retain current law.  Senate and Conference Committee do not include the language.

Sec. 573.  Sale of Paid Advertising

Current-year Sec. 572 authorizes the Department to sell and accept paid advertising; requires revenue received to be used for operating costs and future technology enhancements; limits the amount of revenue that can be received from the sale of paid advertising to $250,000; authorizes the receipt of gifts, donations, contributions, bequests, and grants; authorizes unexpended funding to be carried forward; requires the Department to develop a search function of all state departments that is easily accessible to visitors; requires a privacy policy to be adopted; and requires a report on the amount of gifts, donations, contributions, bequests, and grants received, expenditures made, total revenue received from the sale of paid advertising, and total number of advertising transactions.  Executive deletes the $250,000 limit, deletes the requirement that funding received over $250,000 be deposited into the general fund, deletes the requirement that the Department develop a search function, deletes the requirement that a privacy policy be adopted, and deletes the reporting requirement.  House deletes the requirement that the Department develop a search function and deletes the requirement that a privacy policy be adopted.  Senate and Conference Committee delete authorization to receive, donations, contributions, bequests, and grants, deletes authorization for unexpended funding to be carried forward, and deletes the requirement that the Department develop a search function.

Sec. 574.  Spatial Information/Technical Services

Authorizes the Department to supply spatial information and technical services to other state departments, local units of government, and other organizations, and to receive and expend funding for providing such services, publications, maps, and other products.  Executive and House retain current law.  Senate and Conference Committee retain current law and add a requirement that a report be submitted on the sources of funding and expenditures made.

Sec. 577.  Michigan Public Safety Communications System

Current-year language requires the appropriation for the Michigan Public Safety Communications System to be expended upon approval by the State Budget Director of an expenditure plan, requires the Department to assess reasonable access and maintenance fees to all subscribers of the system, requires revenue received to be deposited into the general fund, and requires a report on the amount of revenue collected and deposited.  Executive deletes the requirement that revenue received be deposited into the general fund, instead requiring it to be expended for support and maintenance of the system, and requires the report to indicate the amount of revenue expended for support and maintenance.  House, Senate, and Conference Committee retain current law.

Sec. 578.  Report on Appropriations and Expenditures

Requires the Department to submit a report on the total amount of funding appropriated for information technology services and projects, by funding source, for all state departments and requires a listing of expenditures made from amounts received.  Executive deletes language.  House, Senate, and Conference Committee retain current law.

Sec. 579.  Report on Life-Cycle of Hardware and Software

Requires the Department to submit a report which analyzes and makes recommendations on the life-cycle of information technology hardware and software.  Executive deletes language.  House, Senate, and Conference Committee retain current law.  

Summary:  Second Conference Report

LEGISLATURE

FY 2004-05  House Bill 5517

FY 2003-04 YTD

Revised

Executive

House

Senate

Conference

Gross

$118,630,800

$118,630,800

$118,680,800

$121,629,300

$126,731,900

IDG/IDT

1,662,900

1,801,500

1,801,500

1,801,500

1,801,500

Federal

0

0

0

0

0

Local

0

0

0

0

0

Private

400,000

400,000

400,000

400,000

400,000

Restricted

2,495,100

2,356,500

2,356,500

2,356,500

2,356,500

GF/GP

$114,072,800

$114,072,800

$114,122,800

$117,071,300

$122,173,900

FTEs

0.0

0.0

0.0

0.0

0.0

1.         Auditor General – Fund Source Shift

Increases IDG funding and reduces state restricted funding by the same amount in order to more accurately reflect where audit charges occur.

Gross

IDG

Rest

$0

138,600

(138,600)

$0

138,600

(138,600)

$0

138,600

(138,600)

$0

138,600

(138,600)

2.   Auditor General – Funding Increase

Houseand Senate include additional funding for the Office of the Auditor General. Conference Committee includes additional funding for economics.

Gross

GF/GP

$0

$0

$50,000

$50,000

$3,000,000

$3,000,000

$932,300

$932,300

3.   $100 Points of Difference

Senatereduces GF/GP funding by $100 for all Legislature, Legislative Council, Legislative Retirement, and Property Management line items in order to create points of difference with the House.  Conference Committee includes additional funding for economics.

Gross

GF/GP

$0

$0

$0

$0

($1,500)

($1,500)

$7,168,800

$7,168,800

Boilerplate Changes from FY 2003-04:

Sec. 606.  Property Management

Designates the appropriations for property management as work project appropriations.  House, Senate, and Conference Committee modify the language to include work project account information that is required pursuant to the Management and Budget Act.

Sec. 606a.  Automated Data Processing

House, Senate, and Conference Committee include new language which designates House, Senate, and Legislative Service Bureau automated data processing appropriations as work project appropriations.

Sec. 610.  Contingency Funds

Executive and House include new language which appropriates state restricted contingency funds to the Auditor General that can be expended upon legislative transfer to a specific line item.  Senate and Conference Committee do not include the new language.

Summary:  Second Conference Report

MANAGEMENT AND BUDGET

FY 2004-05  House Bill 5517

FY 2003-04 YTD

Revised

Executive

House

Senate

Conference

Gross

$229,987,800

$157,299,900

$212,837,500

$212,718,900

$213,410,100

IDG/IDT

162,216,800

86,575,200

142,075,200

144,012,600

143,075,200

Federal

740,800

444,600

444,600

443,600

444,600

Local

0

0

0

0

0

Private

0

0

0

0

0

Restricted

31,201,300

33,206,100

33,206,100

32,563,600

33,206,100

GF/GP

$35,828,900

$37,074,000

$37,111,600

$35,699,100

$36,684,200

FTEs

722.0

731.0

729.0

731.0

731.0

1.         Motor Vehicle Fleet

Executive eliminates the Motor Vehicle Fleet line item appropriation and returns funding to a non-appropriated internal service fund.  House and Senate retain the line item appropriation but reduce funding by $3.0 million and $1.0 million respectively.  Conference Committee retains the line appropriation but reduces funding by $2.0 million.

Gross

IDG

($58,500,000)

(58,500,000)

($3,000,000)

(3,000,000)

($1,000,000)

(1,000,000)

($2,000,000)

(2,000,000)

2.         Restructuring of Rent Payments

Reflects a savings of $18.1 million due to the renegotiation of long-term leases for buildings the Department manages.  Rent payments the Department makes for affected leased facilities for FY 2005 will be reduced as a result of financial restructuring.

Gross

IDG

($18,100,000)

(18,100,000)

($18,100,000)

(18,100,000)

($18,100,000)

(18,100,000)

($18,100,000)

(18,100,000)

3.         Employee-Related Economic Increases

Includes additional funding to cover increased staff salary, insurance, and retirement costs.

Gross

IDG

Rest

GF/GP

$7,438,900

2,564,000

1,833,100

$3,041,800

$7,438,900

2,564,000

1,833,100

$3,041,800

$7,438,900

2,564,000

1,833,100

$3,041,800

$7,438,900

2,564,000

1,833,100

$3,041,800

4.         Employee-Related Savings

Reduces funding to partially offset the cost of employee-related economic increases.  Savings are to be achieved by reducing outside contracts, promoting voluntary work schedule adjustments, and continuing a portion of the temporary wage and benefit concessions.

Gross

IDG

Rest

GF/GP

($2,261,200)

(763,600)

(645,400)

($852,200)

($2,261,200)

(763,600)

(645,400)

($852,200)

($2,261,200)

(763,600)

(645,400)

($852,200)

($2,261,200)

(763,600)

(645,400)

($852,200)

5.         Internal Audit Partnership with Treasury

Reflects the transfer of 4.0 FTE positions and funding from the Department of Treasury to DMB to support administrative costs associated with DMB providing internal audit services to the Department of Treasury.

FTEs

Gross

GF/GP

4.0

$425,000

$425,000

4.0

$425,000

$425,000

4.0

$425,000

$425,000

4.0

$425,000

$425,000

6.         Retirement System Vision ORS Project

Includes additional funding to cover information technology cost increases associated with the Vision ORS system.  Funding will support costs for maintenance, software and licenses for additional servers, network storage space, professional services to perform anticipated major annual software upgrades, and application support tools for the application support team.

Gross

Rest

$553,000

553,000

$553,000

553,000

$553,000

553,000

$553,000

553,000

7.         Reduced Funding for MAIN Support

Reflects a savings due to reducing state and contractor staff costs, scaling back on system development initiatives, and reducing operating costs as a result of archiving MAIN data in a way that allows the system to run faster and store less data.

Gross

GF/GP

($477,000)

($477,000)

($477,000)

($477,000)

($477,000)

($477,000)

($477,000)

($477,000)

8.         Building Operation Service Reductions

Reflects a savings of $81,000 due to elimination of uniform rental and laundry services, a savings of $53,000 due to conversion of Grand Tower Building contractual operations staff to state staff, a savings of $47,000 due to warehouse lease cancellation and a move to state space, and a savings of $30,000 due to elimination of contract reporting requirements.

FTEs

Gross

IDG

(2.0)

($211,000)

(211,000)

(2.0)

($211,000)

(211,000)

(2.0)

($211,000)

(211,000)

(2.0)

($211,000)

(211,000)

9.         Human Resources Optimization

Reduces FTE position authorization and funding by $49,100 as a result of consolidated human resources functions.  The Department of Civil Service will create a new Human Resources Call Center, which will be the central information source for employees who have human resources questions or who need personnel transactions processed, and the Department of Management and Budget will pay them for the services they provide, $29,500.

FTEs

Gross

IDG

Rest

GF/GP

(1.0)

($19,600)

(7,600)

(8,000)

($4,000)

(1.0)

($19,600)

(7,600)

(8,000)

($4,000)

(1.0)

($19,600)

(7,600)

(8,000)

($4,000)

(1.0)

($19,600)

(7,600)

(8,000)

($4,000)

10.        Executive Budget Revision Letter 04/01/04

Reflects the transfer of 2.0 FTE positions and the associated funding from the Department of State to the Department of Management and Budget.  This transfer is the result of implementing Executive Order 2002-20, which consolidated all real estate planning functions performed by state agencies within DMB.

FTEs

Gross

GF/GP

2.0

$199,800

$199,800

0.0

$0

$0

2.0

$199,800

$199,800

2.0

$199,800

$199,800

11.        Executive Budget Revision Letter 05/27/04

Reduces GF/GP to reflect savings from changes in allocating year-end salary and fringe benefit costs between fiscal years and the new actuarial experience study for the State Employee Retirement System.

Gross

GF/GP

($237,400)

($237,400)

$0

$0

$0

$0

($237,400)

($237,400)

12.        Program Reductions

Senatereduces funding for Executive Operations by $250,000, funding for Business Support Services by $250,000, and funding for Information Technology Services and Projects by $1.8 million.  Conference Committee reduces funding for Information Technology Services and Projects by $389,800.

Gross

GF/GP

$0

$0

$0

$0

($2,317,600)

($2,317,600)

($389,800)

($389,800)

13.        $100 Points of Difference

Senate reduces IDG and GF/GP funding by $100 for applicable line items in order to create points of difference with the House.

Gross

IDG

GF/GP

$0

0

$0

$0

0

$0

($800)

(200)

($600)

$0

0

$0

DEPARTMENT OF MANAGEMENT AND BUDGET

Sec. 701.  Contingency Funds

Executive and House include new language which appropriates federal, state restricted, and local contingency funding that can be expended upon legislative transfer to a specific line item.  Senate and Conference Committee do not include the new language.

Sec. 703.  Training and Orientation Workshops

Current-year Sec. 702 authorizes the Department to receive and expend funding for conducting training and orientation workshops and seminars.  Executive and House retain current law.  Senate and Conference Committee delete the language.

Sec. 713.  Revisions to Computer Contracts

Requires DMB to report on any revisions to current computer contracts exceeding $500,000 at least 14 days prior to finalization of the revisions.  Executive deletes the language.  House retains current law.  Senate and Conference Committee modify current law to require a report on any revisions that increase or decrease current contracts by more than $500,000.

Sec. 715.  Motor Vehicle Fleet

Current law section 719 requires the appropriation for motor vehicle fleet to be used for administration and the acquisition, lease, operation, maintenance, repair, replacement, and disposal of state motor vehicles; specifies that the appropriation is to be funded by revenue from rates charged to state departments and agencies for utilizing vehicle travel services provided by DMB; expresses intent of the Legislature that DMB have the authority to determine the appropriateness of vehicle assignment, to include, year, make, model, size, and price of vehicle; gives DMB the authority to assign motor vehicles, either permanently or temporarily, to state agencies and to institutions of higher education; expresses intent of the Legislature that DMB complete a project plan which results in the reduction of expenditures related to vehicle travel services, to include a reduction in the number of state vehicles; and requires a quarterly report on the status of the project plan. Executive deletes the language.  House, Senate, and Conference Committee modify current law to include authorization for excess revenue from the Motor Transport Fund to be carried forward and to express that it is the Legislature’s intent that the Department determine the feasibility of using driver record information upon issuing state cars to state employees in order to ensure responsibility and safety.

Sec. 716.  Purchasing from Michigan-Based Firms

House, Senate, and Conference Committee include new language which requires DMB to adopt policies and procedures necessary in order to provide a purchasing preference for products manufactured or services offered by Michigan-based firms.

Sec. 717.  Purchasing Decisions in the Best Interests of the State

House, Senate, and Conference Committee include newlanguage which establishes guidelines for DMB to follow when determining whether the purchase, contracting for, providing of supplies, materials, services, insurance, utilities, third party financing, equipment, printing, and other items needed by state departments is in the best interests of the state.

Sec. 718.  Vendor Disclosure (Information to Collect)

House, Senate, and Conference Committee include newlanguage which lists types of information DMB is authorized to collect from vendors in order to ensure compliance with procurement of goods and services from Michigan-based providers.

Sec. 719.  Vendor Disclosure (Call Centers)

House, Senate, and Conference Committee include newlanguage which authorizes DMB to require that any vendor or subcontractor who provides call or contact center services to the state disclose the location from which the call or contact center services are being provided to the inbound caller.

Sec. 720.  Building Occupancy Expenditures

Executive Budget Revision Letter 05/27/04includes new language which requires the Department to reduce building occupancy general fund expenditures by $700,000 and authorizes the State Budget Director to take any action necessary to properly record expenditure reductions.  House and Senate do not include the new language.  Conference Committee includes the new language.

Sec. 721.  Law Enforcement Officers Memorial

Conference Committee includes new language which authorizes receipt and expenditure of funding from the Michigan Law Enforcement Officers Memorial Monument Fund to be used for design and construction of a memorial monument for law enforcement officers who have died in the line of duty.

GENERAL SECTIONS OF BOILERPLATE

Sec. 205.  Hiring Freeze

Imposes a hiring freeze on the state classified civil service, permits exceptions by the Attorney General and Secretary of State for their respective departments and by the State Budget Director for all other Executive branch departments, and requires a report on the number of exceptions granted, to include justification for the exceptions. Executive deletes the language.  House retains current law.  Senate deletes the provision that authorizes the Attorney General, Secretary of State, and State Budget Director to grant exceptions to the hiring freeze, and adds that the hiring freeze does not apply to certain situations which are specified in the language.  Conference Committee retains current law.

Sec. 207.  Privatization

Requires departments to submit a complete project plan 60 days prior to beginning any effort to privatize and requires an evaluation of the privatization initiative within 30 months.  Executive and Senate delete the language.  House retains current law.  Conference Committee deletes the language.

Sec. 209.  Information Technology Appropriations as Work Projects

Executive includes new language which designates appropriations for information technology as work project accounts and authorizes carryforward of available balances.  House, Senate, and Conference Committee do not include the new language.

Sec. 210.  Deprived and Depressed Communities

Requires the directors of departments to take all reasonable steps to ensure businesses in deprived and depressed communities compete for and perform contracts.  Executive deletes the language.  House, Senate, and Conference Committee retain current law.

Sec. 212.  Receipt and Retention of Reports

Authorizes departments to receive, and requires them to retain, copies of all reports required in the bill, and requires departments to follow federal and state guidelines for short-term and long-term retention of records.  Executive deletes the language.  House, Senate, and Conference Committee retain current law.

Sec. 215.  Disciplinary Action Against Employees

Prohibits departments from taking disciplinary action against employees for communicating with legislators or their staff.  Executive deletes the language.  House, Senate, and Conference Committee retain current law.

Sec. 216.  Travel Restrictions

Senate includes new language which prohibits departments from expending appropriations for out-of-state travel, requires departments to reduce travel expenditures by at least 50% in FY 2005, and grants exceptions to these restrictions for travel that is related to necessary legal services, revenue collection, or the protection of state property, investments, or assets.  Conference Committee includes new language which limits out-of-state travel to situations in which specified conditions apply, authorizes the State Budget Director to grant exceptions to allow travel that is necessary but that does not meet specified conditions, and requires a report listing all out-of-state travel by classified and unclassified employees that is funded with department appropriations.

Sec. 217.  General Fund Restrictions

Senate and Conference Committee include new language which prohibits the use of general fund appropriations where federal funding is available for the same purpose.

Summary:  Second Conference Report

STATE

FY 2004-05  House Bill 5517

FY 2003-04 YTD

Revised

Executive

House

Senate

Conference

Gross

$182,113,251

$188,131,200

$188,266,000

$186,405,100

$187,179,500

IDG/IDT

20,000,000

20,000,000

20,000,000

20,000,000

20,000,000

Federal

2,029,500

1,391,000

1,391,000

1,391,000

1,391,000

Local

0

0

0

0

0

Private

100

100

100

100

100

Restricted

143,385,200

151,678,500

151,553,500

150,272,800

141,878,500

GF/GP

$16,698,451

$15,061,600

$15,321,400

$14,741,200

$23,909,900

FTEs

1,856.8

1,857.8

1,859.8

1,857.8

1,857.8

1.   Employee-Related Economic Increases

Includes additional funding to cover increased staff salary, insurance, and retirement costs.

Gross

Federal

Rest

GF/GP

$11,765,900

109,400

10,986,600

$669,900

$11,765,900

109,400

10,986,600

$669,900

$11,765,900

109,400

10,986,600

$669,900

$11,765,900

109,400

10,986,600

$669,900

2.   Employee-Related Savings

Reduces funding to partially offset the cost of employee-related economic increases.  Savings are to be achieved by reducing outside contracts, promoting voluntary work schedule adjustments, and continuing a portion of the temporary wage and benefit concessions.

Gross

Federal

Rest

GF/GP

($3,735,300)

(37,900)

(3,488,100)

($209,300)

($3,735,300)

(37,900)

(3,488,100)

($209,300)

($3,735,300)

(37,900)

(3,488,100)

($209,300)

($3,735,300)

(37,900)

(3,488,100)

($209,300)

3.         Other Economic Adjustments

Reduces funding for building occupancy charges by $973,700 Gross and workers’ compensation premiums by $22,000 Gross.

Gross

Rest

GF/GP

($995,700)

(732,400)

($263,300)

($995,700)

(732,400)

($263,300)

($995,700)

(732,400)

($263,300)

($995,700)

(732,400)

($263,300)

4.         Qualified Voter File

Includes additional funding for continued maintenance and improvement of the server processes, a group of programs utilized by all 1,498 city, county, and township clerks to administer elections.

Gross

GF/GP

$395,300

$395,300

$395,300

$395,300

$395,300

$395,300

$395,300

$395,300

5.         Transfer of Driver Education Program

Reflects the transfer of FTE positions and funding to cover administrative costs for the Driver Education program, which is being transferred from the Department of Education to the Department of State.  Major responsibilities will include approval of driver education courses and approval of driver education instructors in both school district and proprietary driver training programs.

FTEs

Gross

Rest

2.0

$528,000

528,000

2.0

$528,000

528,000

2.0

$528,000

528,000

2.0

$528,000

528,000

6.         Notary Public Act

Includes an additional 1.0 FTE position and $400,000 for implementation of Public Act 238 of 2003, which rewrites the Michigan Notary Public Act.  The legislation takes affect on April 1 and streamlines the application process, authorizing the Department to conduct background checks to ensure suitable candidates.  Of the additional funding, $100,000 is to be used for educating and training county clerks on the new process.

FTEs

Gross

Rest

1.0

$400,000

400,000

1.0

$400,000

400,000

1.0

$400,000

400,000

1.0

$400,000

400,000

7.         DIT Base Reduction

Reflects a savings due to reductions in data center platform and telecommunication rates, contractual services, consulting charges, and hardware costs.

Gross

GF/GP

($936,800)

($936,800)

($936,800)

($936,800)

($936,800)

($936,800)

($936,800)

($936,800)

8.         Executive Budget Revision Letter 04/01/04

Reflects the transfer of 2.0 FTE positions and the associated funding from the Department of State to the Department of Management and Budget.  This transfer is the result of implementing Executive Order 2002-20, which consolidated all real estate planning functions performed by state agencies within DMB.

FTEs

Gross

GF/GP

(2.0)

($199,800)

($199,800)

0.0

$0

$0

(2.0)

($199,800)

($199,800)

(2.0)

($199,800)

($199,800)

9.         Executive Budget Revision Letter 04/01/04

Includes authorization to receive additional fee revenue which will be used to increase motorcycle safety and education grant funding made available to local programs.

Gross

Rest

$125,000

125,000

$0

0

$125,000

125,000

$125,000

125,000

10.        Executive Budget Revision Letter 05/27/04

Reduces GF/GP to reflect savings from changes in allocating year-end salary and fringe benefit costs between fiscal years and the new actuarial experience study for the State Employee Retirement System

Gross

GF/GP

($60,000)

($60,000)

$0

0

$0

0

($60,000)

($60,000)

11.        Program Reductions

Senate reduces funding for Branch Operations by $167,000 and funding for Information Technology Services and Projects by $1.6 million.  Conference Committee reduces funding for the Legacy Mainframe Computer Project by $1.1 million and reduces funding for Information Technology Services and Projects by $51,700.

Gross

GF/GP

$0

0

$0

0

($1,785,000)

($1,785,000)

($1,151,700)

($1,151,700)

12.        $100 Points of Difference

Senatereduces state restricted and GF/GP funding by $100 for applicable line items in order to create points of difference with the House.  Conference Committee includes an additional $10.0 million in GF/GP to cover the shortfall of revenue in the Transportation Administration Collection Fund and includes an additional $200,000 in state restricted funding for motorcycle safety equipment.

Gross

Rest

GF/GP

$0

0

$0

$0

0

$0

($1,100)

(300)

($800)

$200,000

(9,800,000)

$10,000,000

Sec. 801.  Contingency Funds

Executive and House include new language which appropriates federal, state restricted, local, and private contingency funding that can be expended upon legislative transfer to a specific line item.  Senate and Conference Committee do not include the new language.

Sec. 814.  Organ Donor Program

Requires organ donor program funding to be used for the production of an organ donation informational pamphlet to be distributed with driver licenses and personal identification cards and to pay for return postage costs.  The pamphlet is required to include a return reply postage paid form addressed to the Gift of Life Donor Program organization. Executive deletes the language.  House, Senate, and Conference Committee retain current law.

Sec. 815.  Notification of Closing/Consolidating Branch Offices

Requires the Department to consult with the House and Senate General Government Subcommittee members on the projected closing or consolidation of Secretary of State branch offices.  Executive deletes the language.  House retains current law.  Senate and Conference Committee modify current law to require that at least 60 days prior to the announcement of branch office closings, consolidations, or relocations, the Department will inform the appropriations committees and legislators who represent the affected areas.  The announcement is required to be provided in written form and to include all analyses done regarding criteria for changes in the location of branches, to include branch transactions, revenue, and the impact on citizens affected.  Also, a detailed report regarding the Department’s branch optimization plan that was announced on April 26, 2004 is required.

Sec. 817.  Unlicensed Dealer Fines

Authorizes funding collected by the Department from unlicensed dealer fines to be used to offset administrative expenses and requires funding to be transferred via the legislative transfer process in order to be available for expenditure.  Executive and Senate delete the language.  House retains current law.  Conference Committee deletes the language.

Sec. 818.  Motorcycle Safety Education Program

Requires funding appropriated for the Motorcycle Safety Education Grants and Administration program to be used for operation of the program, requires funding for the program to be derived from original and renewal motorcycle license endorsements, annual registration fees, and operator driving test fees, authorizes funding for grants to help subsidize safety training courses for individuals interested in operating motorcycles, and authorizes funding to be used for costs associated with administration of the program.  Executive deletes the language.  House and Senate retain current law.  Conference Committee retains current law and adds a new subsection 5 which requires funding appropriated for motorcycle safety equipment to be used to purchase equipment for use by public instructional providers of motorcycle safety education courses.

Summary:  SecondConference Report

TREASURY

FY 2004-05  House Bill  5517

FY 2003-04 YTD

Revised

Executive

House

Senate

Conference

Gross

$1,746,197,886

$1,597,426,300

$1,579,823,000

$1,578,078,700

$1,593,061,400

IDG/IDT

12,417,600

13,172,800

13,172,800

13,143,100

13,172,800

Federal

44,696,100

34,681,800

34,681,800

34,645,300

34,681,800

Local

910,800

18,832,800

964,300

964,100

18,832,800

Private

0

0

0

0

0

Restricted

1,570,958,700

1,401,783,000

1,408,706,100

1,407,590,600

1,430,220,600

GF/GP

$117,214,686

$128,955,900

$122,298,000

$121,735,600

$96,153,400

FTEs

1,624.0

1,620.0

1,607.0

1,617.5

1,662.5

TREASURY OPERATIONS

1.         Employee-Related Economic Increases

Includes additional funding to cover increased staff salary, insurance, and retirement costs.  (Includes increases for Bureau of State Lottery and Michigan Gaming Control Board staff.)

Gross

IDG

Federal

Local

Rest

GF/GP

$14,971,900

967,900

1,053,100

80,800

10,712,600

$2,157,500

$14,971,900

967,900

1,053,100

80,800

10,712,600

$2,157,500

$14,971,900

967,900

1,053,100

80,800

10,712,600

$2,157,500

$14,971,900

967,900

1,053,100

80,800

10,712,600

$2,157,500

2.         Employee-Related Savings

Reduces funding to partially offset the cost of employee-related economic increases.  Savings are to be achieved by reducing outside contracts, promoting voluntary work schedule adjustments, and continuing a portion of the temporary wage and benefit concessions.  (Includes savings for Bureau of State Lottery and Michigan Gaming Control Board staff.)

Gross

IDG

Federal

Local

Rest

GF/GP

($4,649,700)

(295,500)

(268,600)

(27,300)

(3,374,100)

($684,200)

($4,649,700)

(295,500)

(268,600)

(27,300)

(3,374,100)

($684,200)

($4,649,700)

(295,500)

(268,600)

(27,300)

(3,374,100)

($684,200)

($4,649,700)

(295,500)

(268,600)

(27,300)

(3,374,100)

($684,200)

3.         Other Economic Adjustments

Reduces funding for building occupancy charges by $1.7 million Gross and workers’ compensation premiums by $17,000 Gross.  (Includes reductions for Bureau of State Lottery and Michigan Gaming Control Board.)

Gross

Rest

GF/GP

($1,714,300)

(887,900)

($826,400)

($1,714,300)

(887,900)

($826,400)

($1,714,300)

(887,900)

($826,400)

($1,714,300)

(887,900)

($826,400)

4.         Human Resources Optimization Project

Reduces FTE position authorization and funding by $147,200 as a result of consolidated human resources functions.  The Department of Civil Service will create a new Human Resources Call Center, which will be the central information source for employees who have human resources questions or who need personnel transactions processed, and the Department of Treasury will pay them for the services they provide, $88,600.  (Includes savings for Bureau of State Lottery and Michigan Gaming Control Board.)

FTEs

Gross

Rest

GF/GP

(3.0)

($58,600)

(32,300)

($26,300)

(3.0)

($58,600)

(32,300)

($26,300)

(3.0)

($58,600)

(32,300)

($26,300)

(3.0)

($58,600)

(32,300)

($26,300)

5.         Transfer of MEAP / Merit Award Board

Reflects the transfer of FTE positions and $27.3 million appropriated for Michigan Educational Assessment Program administration and the Michigan Merit Award Board from the Department of Treasury to the Department of Education, pursuant to Executive Order 2003-20.  Retains6.0 FTE positions and $1.6 million that are associated with the Michigan Merit Award program.

FTEs

Gross

Federal

Rest

(18.0)

($27,346,900)

(10,798,800)

(16,548,100)

(18.0)

($27,346,900)

(10,798,800)

(16,548,100)

(18.0)

($27,346,900)

(10,798,800)

(16,548,100)

(18.0)

($27,346,900)

(10,798,800)

(16,548,100)

6.         Revenue Recovery Initiatives

Reflects an overall reduction in GF/GP funding that originally was included in 2003 PA 237 for enhanced revenue recovery initiatives.  Specifically, funding was included for industrial facility and tax increment finance audits; for the statewide cash basis audit process, managed desk audits, out-of-state vendor audits, and for standardized audit schedules and statistical sampling; for sales, use, and withholding tax reconciliation; and for levy process enhancement, field staff enforcement of collections, IRS data sharing to increase delinquent tax revenue collections, and enforcement of 2003 PA 23, which holds corporate officers of Limited Liability Corporations liable for unpaid taxes.

Gross

Rest

GF/GP

($550,000)

450,000

($1,000,000)

($550,000)

450,000

($1,000,000)

($550,000)

450,000

($1,000,000)

($550,000)

450,000

($1,000,000)

7.         Reduced Funding for Travel

Houseeliminates GF/GP funding for departmentwide travel.  Senate reduces funding.  Conference Committee maintains current-year funding levels for travel.

Gross

GF/GP

$0

$0

($327,400)

($327,400)

($27,400)

(27,400)

$0

$0

8.         Audits of Detroit Water and Sewerage Department

Houseand Senate include additional funding for the Department to conduct a financial audit, a performance audit, and an independent efficiency evaluation of the Detroit Water and Sewerage Department. Conference Committee does not include the funding.

Gross

GF/GP

$0

$0

$500,000

$500,000

$50,000

$50,000

$0

$0

9.         Additional Auditors for MGCB

Includes additional FTE position authorization and funding for the Michigan Gaming Control Board to hire auditors.  According to a recent report by the Auditor General, the Board needs additional staff in order to conduct audits of the casinos on a more regular basis.

FTEs

Gross

Rest

0.0

$0

$0

4.0

$323,100

323,100

4.0

$323,100

323,100

4.0

$323,100

323,100

10.        Executive Budget Revision Letter 05/27/04

Reduces GF/GP to reflect savings from changes in allocating year-end salary and fringe benefit costs between fiscal years and the new actuarial experience study for the State Employee Retirement System.

Gross

GF/GP

($169,500)

($169,500)

$0

$0

$0

$0

($169,500)

($169,500)

11.        Executive Budget Revision Letter 05/27/04

Includes additional FTE positions and funding to reflect Executive Order 2004-2, which transferred responsibility for sale of tax-reverted property from DNR to Treasury.

FTEs

Gross

Rest

17.0

$2,500,000

$2,500,000

0.0

$0

$0

0.0

$0

$0

17.0

$2,500,000

$2,500,000

12.        Program Reductions

Senate reduces funding for the following:  Supervision of the General Property Tax Law by $300,000; Local Finance by $125,000; Tax Policy by $100,000; Human Resources, Program Management, and Purchasing by $150,000; Office of Revenue and Tax Analysis by $150,000; Finance and Accounting by $75,000; Receipts Processing by $50,000; Common Cash Investments and Debt Management by $50,000; Lottery, Gaming, and Treasury Information Technology Services and Projects by $1.5 million.  Conference Committee reduces funding for Information Technology Services and Projects by $88,000.

Gross

IDG

Federal

Local

Rest

GF/GP

$0

0

0

0

0

$0

$0

0

0

0

0

$0

($2,543,500)

(29,500)

(36,500)

(200)

(1,114,500)

($1,362,800)

($88,000)

0

0

0

0

($88,000)

13.        New Programs / Funding Increases / FTE Changes

Senate includes 10.0 FTE positions and $900,000 for hiring personal property tax auditors; $1,000 for audits to be conducted of Intermediate School Districts; $1,000 for purchased lands payments in lieu of taxes; and an additional $50,000 for Property Tax Assessor Training.  Conference Committee includes 38.0 FTE positions and $3.5 million for the state to hire or contract for employees to perform personal property tax audits.

FTEs

Gross

GF/GP

0.0

$0

$0

0.0

$0

$0

10.0

$952,000

$952,000

38.0

$3,500,000

$3,500,000

14.        $100 Points of Difference

Senate reduces IDG, state restricted, and GF/GP funding by $100 for applicable line items in order to create points of difference with the House. 

Gross

IDG

Rest

GF/GP

$0

0

0

$0

$0

0

0

$0

($2,800)

(200)

(1,000)

($1,600)

$0

0

0

$0

REVENUE SHARING

15.        Constitutional Revenue Sharing

Includes additional funding for constitutional revenue sharing payments.

Gross

Rest

$26,157,900

26,157,900

$37,057,900

37,057,900

$37,058,900

37,058,900

$26,157,900

26,157,900

16.        Statutory Revenue Sharing

Reduces funding for statutory revenue sharing payments ($182.3 million counties and $24.0 million cities, villages, and townships); county funding will be replaced with the newly created County Revenue Sharing Reserve Funds.  Also, funding for Payments in Lieu of Taxes (PILT) will remain in the Department of Natural Resources budget and will be funded with 50% state restricted revenue and 50% GF/GP.

Gross

Rest

($206,336,900)

(206,336,900)

($208,136,900)

(208,136,900)

($208,137,900)

(208,137,900)

($206,336,900)

(206,336,900)

17.        County Revenue Sharing

Includes a new County Revenue Sharing line item funded at $17.9 million to be reimbursed to the state by the counties.

Gross

Local

$17,868,500

17,868,500

$0

0

$0

0

$17,868,500

17,868,500

DEBT SERVICE

18.        Debt Service

a.) Includes an additional $22.2 million Gross and $12.2 million GF/GP for required debt service payments on the Quality of Life bond.  This increase reflects a fund source shift of $10.9 million from GF/GP to state restricted Cleanup and Redevelopment Funds. 

b.) Includes an additional $3.1 million Gross and GF/GP for required debt service payments on the Clean Michigan Initiative bond. 

c.) Reduces funding by $100,000 Gross and GF/GP for payments on the Water Pollution Control bond.

d.) Conference Committee eliminates$28.1 million GF/GP used to support debt service payments for Quality of Life and Clean Michigan Initiative bonds and replaces it with Refined Petroleum Fund revenue.

Gross

Rest

GF/GP

$25,164,000

10,009,300

$15,154,700

$25,164,000

10,009,300

$15,154,700

$25,164,000

10,009,300

$15,154,700

$25,164,000

38,123,800

($12,959,800)

GRANTS

19.        Grants

The Executive makes the following adjustments: 

a.) adds $5.5 million Gross for Convention Facility Development Distribution based on revenue collections;

b.) adds $2.5 million Gross for Commercial Mobile Radio Service Payments for 911 telephone emergency programs in local communities;

c.) adds $1.2 million GF/GP for the Senior Citizen Cooperative Housing Tax Exemption Program;

d.) adds $328,000 GF/GP for Renaissance Zone Reimbursement payments to be made to libraries for lost property tax revenue associated with renaissance zones; e.) reduces $3.2 million GF/GP from the Qualified Agricultural Loan payment program based on a federal grant pay down provision included in the loan agreements;

f.) eliminates $42,700 GF/GP for reimbursement payments which were made to the City of Benton Harbor for lost property tax revenue associated with an enterprise zone, as the ten-year commitment has been completed; and

g.) maintains current-year funding levels for Grants to Counties in Lieu of Taxes, Health and Safety Fund Grants, and Special Grants to cities which have an emergency financial manager appointed to them. 

The House, Senate, and Conference Committee concur with the Executive recommendation on most all of the items listed above.  The House, Senate, and Conference Committee eliminate the $7.0 million appropriation for grants to local units of government to reimburse for conducting personal property tax assessments of businesses.  The Conference Committee reduces funding by $1.1 million GF/GP for emergency financial management services provided to the City ofFlint.

Gross

Rest

GF/GP

$6,285,300

8,000,000

($1,714,700)

($714,700)

8,000,000

($8,714,700)

($714,700)

8,000,000

($8,714,700)

($1,814,700)

8,000,000

($9,814,700)

Sec. 901.  Contingency Funds

Executive and House include new language which appropriates federal, state restricted, local, and private contingency funding that can be expended upon legislative transfer to a specific line item.  Senate and Conference Committee do not include the new language.

Sec. 902(3).  Defaulted Student Loan Collections

Requires the Department to explore the feasibility of donated services in lieu of repayment when they are unable to collect defaulted student loans and to report on the implementation status of this section.  Executive, House, Senate, and Conference Committee delete the language.

Sec. 907.  Assessor Certification and Training Fees

Current-year Sec. 906 authorizes the Department to use the Assessor Certification and Training Fund to operate the Property Assessor Certification and Training program, assesses fees to cover expenses incurred in offering programs to be paid by participants, and requires fees collected to be credited to the Assessor Certification and Training Fund. Executive,House,Senate, andConference Committee increase examination fees from $25 to $50, initial certification fees from $35 to $50, annual renewal fees from $50 to $75 for levels 1 and 2 and from $95 to $125 for levels 3 and 4.

Sec. 913.  Loans to Local Units of Government

Authorizes the State Treasurer to make loans to local units of government from the state's Common Cash Fund to implement local government infrastructure and private facility projects and specifies the terms of these loans.  Executive, House, Senate, and Conference Committee delete the language.

Sec. 921.  Appropriation of Tobacco Revenue

Appropriates all revenues collected pursuant to the Tobacco Products Tax Act to the Health and Safety Fund for distribution.  Executive,House, Senate, and Conference Committee delete the language.

Sec. 924.  Audit and Collection Procedures

Requires the Department to publish the handbook required, pursuant to 1941 PA 122, Section 205.4(3), which informs taxpayers and tax preparers of audit and collection procedures and authorizes the Department to publish the handbook on the Internet.  Executive deletes the language.  House, Senate, and Conference Committee retain current law.

Sec. 926.  Audits of Detroit Water and Sewerage Department

Houseand Senate include new language which requires the Department of Treasury to conduct a financial audit, a performance audit, and an independent efficiency evaluation of the Detroit Water and Sewerage Department.  Conference Committee does not include the new language.

Sec. 938.  Property Tax Assessor Training

Senateincludes new language which requires the general fund appropriation for property tax assessor training to be used for the education and training of current assessors.  Conference Committee does not include the new language.

Sec. 939.  Pension Fund Investments

Senateincludes new language which expresses legislative intent that pension funds be invested in no less than 2% but not more than 5% in early stage, university derived life science companies located solely in Michigan, or in Michigan based seed stage venture capital funds which invest in such life science companies, but only to the extent that such venture capital funds invest such funds in Michigan derived life science companies.  Conference Committee revises the language to specify that it is the intent of the Legislature that the State Treasurer give consideration to investments in early stage, university derived life science companies located in Michigan, or investments in venture capital funds that invest in those companies.

Sec. 940.  Personal Property Tax Auditors

Senateincludes new language which specifies the purpose of funding appropriated for additional property tax auditors.  Conference Committee revises the language to require that state classified civil service employees or contractors under the Department’s supervision be hired to perform personal property tax audits.

Sec. 951.  Revenue Sharing Payment Condition

Requires county treasurers to comply with section 151 of the School Aid Act in order to receive statutory revenue sharing payments and prohibits the Department from withholding revenue sharing payments to counties if local units of government fail to provide county treasurers with the information needed to comply with section 151.  Executive deletes the language.  House, Senate, and Conference Committee retain current law.

Sec. 952.  Restoration of Revenue Sharing

Requires appropriations for special grants to cities to be used to restore revenue sharing reductions contained in Executive Order 2003-23 to cities which had an emergency financial manager appointed to them.  Executive, House, Senate, and Conference Committee include the new language.

Sec. 953.  County Restricted Reserve Accounts

Executive and Conference Committee include new languagewhich requires county revenue sharing payments to be distributed on a one-time basis to counties with a fiscal year ending September 30^th.  Counties that accrue the October 2003 revenue sharing payment to its 2003 fiscal year will receive a payment in October 2004 equal to the amount distributed in October 2003.  The state is to be reimbursed from the counties’ revenue sharing reserve funds by March 1, 2005. 

Sec. 954.  Revenue Sharing Penalty

Senate includes new language which requires a 5%reduction in statutory revenue sharing payments for local units of government which adopt ordinances or rules, whether by vote of the electorate, county commissions, city councils, or executive directive, that are in direct conflict with the Michigan Constitution or state statute.  Conference Committee does not include the new language.

Sec. 955. County Revenue Sharing Payments

Executive and Conference Committee include new languagewhich appropriates to counties amounts pursuant to the Glenn Steil State Revenue Sharing Act adjusted by the inflation rate and reduced by the amount each county is authorized to annually expend in the county’s fiscal year from its revenue sharing reserve fund.

Sec. 961.  Lottery Promotional Efforts

Prohibits funding from being used for promotional efforts directed towards individuals less than 18 years of age.  Executivedeletes the language.  House, Senate, and Conference Committee retain current law.

Sec. 962.  Sports Figures in Lottery Advertising - NASCAR

Prohibits funding from being used for associating professional or amateur athletes with the lottery or its products.  Executive deletes the language.  House and Senate retain current law.  Conference Committee retains current law but adds a new subsection 2 which authorizes the Bureau of State Lottery to use NASCAR drivers in conjunction with the promotion of instant ticket products and requires a report which details revenue generated, cost of obtaining the use of drivers, administrative costs, and net revenue deposited into the state School Aid Fund.

Sec. 963.  FIA Bridge Cards

Senateand Conference Committee include new language which requires the Bureau of State Lottery to notify lottery retailers that FIA bridge cards are not to be used to purchase lottery tickets.