Summary: Executive Budget Recommendation

Summary: Executive Budget Recommendation

CAPITAL OUTLAY

FY 2006-07 HB 5721

Analyst: Al Valenzio

	FY 2005-06	FY 2006-07	FY 2006-07	*Difference: Exec/House* *from FY 2005-06 YTD*
	Year-To-Date	Executive	House Com.	*Amount*	%
IDG/IDT	$2,000,000	$2,000,000	$2,000,000	$0	0.0
Federal	156,852,600	147,974,300	147,974,300	(8,878,300)	(5.7)
Local	20,784,200	12,648,300	12,648,300	(8,135,900)	(39.1)
Private	0	0	0	0	0.0
Restricted	93,593,900	53,350,300	53,350,300	(40,243,600	(43.0)
GF/GP	4,702,200	2,200	2,200	(4,700,000)	(99.9)
Gross	$277,932,900	$215,975,100	$215,975,100	*($61,957,800)*	*(22.3)*

Note: FY 2005-06 figures include the results of supplementals and Executive Order (EO) actions throughMay 31, 2006.

Overview

The Michigan Capital Outlay process encompasses the budgetary and administrative functions devoted to financing and planning for the acquisition, construction/renovation, and maintenance of facilities used by a state agency, public university, or community college. General operational practices and procedures are contained in the Management and Budget Act (1984 PA 431), the State Building Authority Act (1964 PA 183), the annual Capital Outlay Appropriations Act, and the formal policies of the Legislative Joint Capital Outlay Subcommittee. Act 431 contains numerous oversight and approval action steps that define the respective roles of the Executive and Legislative Branches.

The State Building Authority (SBA) finances most major state-owned facility renovations and new construction projects through issuance of revenue bonds. Debt service on these bonds is annually appropriated as "rent" because it is based on the respective individual facility’s economic or market value. The SBA has a statutory bonded indebtedness ceiling, currently set at $2.7 billion.

Major Budget Issues

· Authorizes 3 State Building Authority construction and 19 planning projects committing about $364.3 million of SBA bond proceeds. This includes $100 million for a new Regional Economic Development Initiative

· Provides $13.2 million from Transportation funds for a newDetroit transportation campus facility

· Provides $14.9 million (Waterways Fund) for harbor, marina and boating access projects

· Eliminates $4 million General Fund grant to the Detroit Zoological Society

· Provides an additional $12.2 million federal for airport safety and improvement projects

Major Budget Changes from FY 2005-06 YTD Appropriations	FY 2005-06 YTD	Exec Change
*1. Department of Agriculture, Farmland and Open Space Development Acquisition* Recommended reductions reflect anticipated spending in FY 2007.	Gross Federal Restricted	$7,500,000 2,500,000 5,000,000	($3,750,000) (1,250,000) (2,500,000)
*2. Department of Management & Budget, Grants* The recommendation eliminates funding for the Detroit Zoological Society ($4,000,000), theChaldeanCommunityCulturalCenter ($300,000), and theHolocaustMemorialMuseum ($100,000)	Gross GF/GP	$4,400,000 $4,400,000	($4,400,000) ($4,400,000)
3. *State* *Building* *Authority Financed Construction Projects (see Table 1):*
*a. State Agency Facility Preservation Projects, Phase III* Authorizes an additional $50 million of SBA monies to support numerous special maintenance type projects on state owned buildings. Phase I was authorized at $70 million under PA 11 of 2005 and included theCapitolBuilding and State Police Radio System upgrades. Phase II was authorized under PA 297 of 2005 also at $70 million.	Gross GF/GP	$0 $0	$100 $100
*b. State Park Improvement Projects* Authorizes $20 million for facility improvements at state parks and recreation areas. This will supplement previous bond projects funded under the Clean Michigan Initiative and annual appropriations from the State Park Improvement Fund	Gross GF/GP	$0 $0	$100 $100
*c. Kirtland Community College, Campus Wide Water Well System* Provides a total cost authorization of $1,005,000 with financing to be split evenly between the college and state. This project will entail the drilling of at least 2 new wells; construction of a well house, a 100,000 gallon elevated storage tank, and the installation of a back-up power source.	Gross GF/GP	$0 $0	$100 $100
*d. Eliminate One-Time Construction Authorizations* Twenty two projects received cost and construction authorizations under the FY 2006 appropriations act.	Gross GF/GP	$2,200 $2,200	($2,200) ($2,200)
*4. State Building Authority, Project Planning Authorization, Regional Economic Development Initiative* The Governor seeks to commit $100 million for state and local partnerships on economic development projects. Local governments and economic development organizations will be asked to submit potential projects. Key selection criteria include job creation and potential statewide economic impact.	Gross GF/GP	$0 $0	$100 $100
*5. State Building Authority, University and Community College Project Planning Authorizations (see Table 1):*
*a. Eastern Michigan University, Pray-Harrold Addition and Modernization* This project is estimated to cost $52.7 million with state support capped at $39,521,300. This is to completely renovate this 234,500 sq. ft. classroom building that is nearly 40 years old.	Gross GF/GP	$0 $0	$100 $100
*b. Lake Superior State University, South Hall Reconstruction* This project is estimated to cost $10 million with state support capped at $7,500,000. This will replace the existing classroom building with a new 45,000 sq. ft. facility.	Gross GF/GP	$0 $0	$100 $100
*c. Northern Michigan University, Cohodas Building Adaptive Renovations* This project is estimated to cost $15.6 million with state support capped at $11,688,000. This 30 year old facility will be renovated for classroom space.	Gross GF/GP	$0 $0	$100 $100
*d. Oakland University, Engineering Center* This project is estimated to cost $64.4 million with state support capped at $40,000,000. This project will add classroom space to support theSchool ofEngineering and Computer Science and renovate vacated space to support other academic programs.	Gross GF/GP	$0 $0	$100 $100
*e. University of Michigan-Dearborn, Teacher Preparation Facility/Child Development Center* This project is estimated to cost $6 million with state support capped at $4,500,000. Construction of a new facility will allow for the expansion of the early childhood education program.	Gross GF/GP	$0 $0	$100 $100
*f. Delta College, Health and Wellness Programs – F Wing* This project is estimated to cost $11.3 million with state support capped at $5,649,500. This involves the renovation of 83,000 sq. ft. of instructional space to support Allied Health and Nursing programs.	Gross GF/GP	$0 $0	$100 $100
*g. Grand Rapids Community College, Lifelong Learning Center* This project is estimated to cost $21.9 million with state support capped at $10,950,000. Construction of a new 122,000+ sq. ft. facility will support various academic programs including early childhood education.	Gross GF/GP	$0 $0	$100 $100
*h. Henry Ford Community College, Science Building Renovations* This project is estimated to cost $12.2 million with state support capped at $6,080,000. This project involves the complete renovation of the 52,500 sq. ft. Science Building.	Gross GF/GP	$0 $0	$100 $100
*i. Kalamazoo Valley Community College, Texas Township Campus Expansion* This project is estimated to cost $7.1 million with state support capped at $3,532,500. Additional space will support classrooms, labs and faculty offices.	Gross GF/GP	$0 $0	$100 $100
*j. Kellogg Community College, Classroom C Building Renovations* This project is estimated to cost $4 million with state support capped at $2,000,000. This involves renovating this 40 year old, 31,600 sq. ft. classroom building.	Gross GF/GP	$0 $0	$100 $100
*k. Lake Michigan College, Emerging Technologies Initiative* This project is estimated to cost $7 million with state support capped at $3,500,000. This involves renovating nearly 27,000 sq. ft. of instructional space and adding about 2,000 sq. ft. of space to support science and technology programs.	Gross GF/GP	$0 $0	$100 $100
*l. Monroe County Community College, Classroom Technology and Environmental Renovations* This project is estimated to cost $2.2 million with state support capped at $1,100,000. This involves upgrading nearly every campus classroom.	Gross GF/GP	$0 $0	$100 $100
*m. Mott Community College, Library Renovations* This project is estimated to cost $8.2 million with state support capped at $4,100,000. This will upgrade and modernize this 80,000+ sq. ft. facility.	Gross GF/GP	$0 $0	$100 $100
*n. Muskegon Community College, Museum/Art Project* This project is estimated to cost $10 million with state support capped at $5,000,000. This allows for the construction of a 60,000 sq. ft. addition to the downtown Muskegon Museum of Art to support the college's art instruction programs.	Gross GF/GP	$0 $0	$100 $100
*o. North Central Michigan College, University and Science Center Building* This project is estimated to cost $16.3 million with state support capped at $8,161,800. This entails the construction of a new instructional of nearly 49,000 sq. ft. and renovating the oldScienceBuilding for general classrooms and nursing education.	Gross GF/GP	$0 $0	$100 $100
*p. Oakland Community College, Building A Addition and Renovations* This project is estimated to cost $32.1 million with state support capped at $16,032,500. This entails renovating and expanding this Auburn Hills Campus instructional facility.	Gross GF/GP	$0 $0	$100 $100
*q. St. Clair County Community College, Health and Human Services Center* This project is estimated to cost $7 million with state support capped at $3,500,000. This entails the renovation of 70,000 sq. ft. of space to support the college's health education programs.	Gross GF/GP	$0 $0	$100 $100
*r. Wayne County Community College, Northwest Campus Replacement* This project is estimated to cost $42 million with state support capped at $21,000,000. This entails the construction of a new 180,000 sq. ft. instructional facility, retrofitting several other buildings, and the demolition of obsolete buildings.	Gross GF/GP	$0 $0	$100 $100
*6. Michigan Department of Transportation (MDOT), Airport Safety, Protection and Improvement Program* These funds will be used to supportsecurity/general improvement projects at more than 100 local and state airports.	Gross Federal Local Restricted	$157,734,400 125,000,000 20,000,000 12,734,400	$5,168,200 12,254,300 (7,351,700) 265,600
*7. MDOT, Detroit Integrated Transportation Campus* This $17.5 million facility will house a transportation service center, the Michigan Intelligent Transportation System (MITS) command center, State Police dispatch operations, and lease space for SMART and Greyhound.	Gross Restricted	$0 0	$13,187,000 13,187,000
*8. MDOT, Oakland County Transportation Service Center* Construction authorization for new 15,000 sq. ft. TSC. This includes funds to purchase land as the current TSC is in leased space.	Gross Restricted	$0 0	$2,500,000 2,500,000
*9. MDOT, Bay City Transportation Service Center Addition* Construction authorization.	Gross Restricted	$0 0	$550,000 550,000
*10. MDOT, Gladstone Bituminous Testing Laboratory* Construction authorization for new 60' x 40' facility and renovation of vacated space for equipment storage.	Gross Restricted	$0 0	$400,000 400,000
*11. MDOT, Washbay Additions, Various Maintenance Garages* Authorization to construct vehicle washbays at the Sawyer ($283,300) andBrighton ($280,000) maintenance facilities.	Gross Restricted	$250,000 250,000	$313,300 313,300
*12. MDOT, Completed Project Financing* Reductions reflect completed projects or projects that do not need additional financing.	Gross Local Restricted	$3,398,200 784,200 2,614,000	($3,398,200) (784,200) (2,614,000)
*13. Department of Natural Resources (DNR), Waterways, State Infrastructure Improvements* Lump-sum contingency account for emergency repairs, preventive and routine maintenance, small projects, and utility upgrades at state harbors and docks. Funds will also support engineering work.	Gross Federal Restricted	$3,970,000 1,470,000 2,500,000	$750,000 0 750,000
*14. DNR, Waterways, Local Infrastructure Improvements* Lump-sum contingency account for emergency repairs, preventive and routine maintenance, small projects, and utility upgrades at locally owned harbors and docks. Funds will also support engineering work.	Gross Restricted	$1,500,000 1,500,000	$750,000 750,000
*15. DNR, Waterways, Land Acquisitions* Provides a lump-sum contingency account to purchase lands as they become available to provide greater boating opportunities.	Gross Restricted	$1,000,000 1,000,000	$170,000 170,000
*16. DNR, Wildlife, Statewide Wetlands Acquisitions* Provides a lump-sum contingency account to purchase lands as they become available. The department's priority is to acquire private in-holdings to consolidate existing state ownership.	Gross Restricted	$0 0	$2,000,000 2,000,000
*17. DNR, Waterways, DeTour Harbor Facility Improvements and Floating Dock Replacement* Federal monies will finance 75% of the cost to upgrade this state-owned facility.	Gross Federal Restricted	$0 0 0	$4,000,000 3,000,000 1,000,000
*18. DNR, Waterways, Mitchell State Park Seawall and Walkway Improvements* These funds will be used to replace the seawall connecting lakes Cadillac and Mitchell and construct an adjacent walkway.	Gross Restricted	$0 0	$463,000 463,000
*19. DNR, Waterways, Mackinaw City, New Marina* The remaining FY 2007 appropriation of $265,000 is estimated to be the final phase funding to complete this $10.6 million project.	Gross Restricted	$5,735,000 5,735,000	($5,470,000) (5,470,000)
*20. DNR, Waterways, Walloon Lake, New Boating Access Site* These funds will be used towards the engineering and construction of a new state-owned launch site inCharlevoix County.	Gross Restricted	$0 0	$510,000 510,000
*21. DNR, Waterways, Leland Marina Rehabilitation Grant-in-Aid* The FY 2007 appropriation will be used to increase the state's share of the project cost from 50% to 75%.	Gross Restricted	$1,750,000 1,750,000	($875,000) (875,000)
*22. DNR, Boating Access Sites, Grants-in-Aid* Provides various levels of matching funds toTuscaroraTownship ($332,500), Ludington ($171,000), andFrankfort ($113,500) for boating access site projects.	Gross Restricted	$0 0	$617,000 617,000
*23. DNR, Forest Roads, Bridges & Facility Maintenance* Increased and on-going funding from mostly the Forest Development Fund to address outstanding maintenance issues.	Gross Restricted	$900,000 900,000	$500,000 500,000
*24. DNR, Waterways, Completed Project Financing* Reductions reflect completed projects or projects that do not need additional financing.	Gross Federal Restricted	$14,085,200 4,382,600 9,702,600	($14,085,200) (4,382,600) (9,702,600)
*25. Department of Military & Veterans Affairs (DMVA), Camp Grayling* Sufficient funds have been appropriated to complete the construction of a new multiple company headquarters building.	Gross Federal	$18,500,000 18,500,000	($18,500,000) (18,500,000)
*26. DMVA, Land Acquisitions & Appraisals* Eliminate one-time FY 2006 appropriation.	Gross Restricted	$200,000 200,000	($200,000) (200,000)
*27. DNR, Natural Resources Trust Fund Projects* Reflects elimination of one-time authorizations for development and acquisition projects in FY 2006.	Gross Restricted	$39,357,900 39,357,900	($39,357,900) (39,357,900)

Major Budget Changes from FY 2005-06 YTD Appropriations

FY 2005-06 YTD

Exec Change

1. Department of Agriculture, Farmland and Open Space Development Acquisition

Recommended reductions reflect anticipated spending in FY 2007.

Gross

Federal

Restricted

$7,500,000

2,500,000

5,000,000

($3,750,000)

(1,250,000)

(2,500,000)

2. Department of Management & Budget, Grants

The recommendation eliminates funding for the Detroit Zoological Society ($4,000,000), theChaldeanCommunityCulturalCenter ($300,000), and theHolocaustMemorialMuseum ($100,000)

Gross

GF/GP

$4,400,000

$4,400,000

($4,400,000)

($4,400,000)

3. State Building Authority Financed Construction Projects (see Table 1):

a. State Agency Facility Preservation Projects, Phase III

Authorizes an additional $50 million of SBA monies to support numerous special maintenance type projects on state owned buildings. Phase I was authorized at $70 million under PA 11 of 2005 and included theCapitolBuilding and State Police Radio System upgrades. Phase II was authorized under PA 297 of 2005 also at $70 million.

Gross

GF/GP

$100

$100

b. State Park Improvement Projects

Authorizes $20 million for facility improvements at state parks and recreation areas. This will supplement previous bond projects funded under the Clean Michigan Initiative and annual appropriations from the State Park Improvement Fund

Gross

GF/GP

$100

$100

c. Kirtland Community College, Campus Wide Water Well System

Provides a total cost authorization of $1,005,000 with financing to be split evenly between the college and state. This project will entail the drilling of at least 2 new wells; construction of a well house, a 100,000 gallon elevated storage tank, and the installation of a back-up power source.

Gross

GF/GP

$100

$100

d. Eliminate One-Time Construction Authorizations

Twenty two projects received cost and construction authorizations under the FY 2006 appropriations act.

Gross

GF/GP

$2,200

$2,200

($2,200)

($2,200)

4. State Building Authority, Project Planning Authorization, Regional Economic Development Initiative

The Governor seeks to commit $100 million for state and local partnerships on economic development projects. Local governments and economic development organizations will be asked to submit potential projects. Key selection criteria include job creation and potential statewide economic impact.

Gross

GF/GP

$100

$100

5. State Building Authority, University and Community College Project Planning Authorizations (see Table 1):

a. Eastern Michigan University, Pray-Harrold Addition and Modernization

This project is estimated to cost $52.7 million with state support capped at $39,521,300. This is to completely renovate this 234,500 sq. ft. classroom building that is nearly 40 years old.

Gross

GF/GP

$100

$100

b. Lake Superior State University, South Hall Reconstruction

This project is estimated to cost $10 million with state support capped at $7,500,000. This will replace the existing classroom building with a new 45,000 sq. ft. facility.

Gross

GF/GP

$100

$100

c. Northern Michigan University, Cohodas Building Adaptive Renovations

This project is estimated to cost $15.6 million with state support capped at $11,688,000. This 30 year old facility will be renovated for classroom space.

Gross

GF/GP

$100

$100

d. Oakland University, Engineering Center

This project is estimated to cost $64.4 million with state support capped at $40,000,000. This project will add classroom space to support theSchool ofEngineering and Computer Science and renovate vacated space to support other academic programs.

Gross

GF/GP

$100

$100

e. University of Michigan-Dearborn, Teacher Preparation Facility/Child Development Center

This project is estimated to cost $6 million with state support capped at $4,500,000. Construction of a new facility will allow for the expansion of the early childhood education program.

Gross

GF/GP

$100

$100

f. Delta College, Health and Wellness Programs – F Wing

This project is estimated to cost $11.3 million with state support capped at $5,649,500. This involves the renovation of 83,000 sq. ft. of instructional space to support Allied Health and Nursing programs.

Gross

GF/GP

$100

$100

g. Grand Rapids Community College, Lifelong Learning Center

This project is estimated to cost $21.9 million with state support capped at $10,950,000. Construction of a new 122,000+ sq. ft. facility will support various academic programs including early childhood education.

Gross

GF/GP

$100

$100

h. Henry Ford Community College, Science Building Renovations

This project is estimated to cost $12.2 million with state support capped at $6,080,000. This project involves the complete renovation of the 52,500 sq. ft. Science Building.

Gross

GF/GP

$100

$100

i. Kalamazoo Valley Community College, Texas Township Campus Expansion

This project is estimated to cost $7.1 million with state support capped at $3,532,500. Additional space will support classrooms, labs and faculty offices.

Gross

GF/GP

$100

$100

j. Kellogg Community College, Classroom C Building Renovations

This project is estimated to cost $4 million with state support capped at $2,000,000. This involves renovating this 40 year old, 31,600 sq. ft. classroom building.

Gross

GF/GP

$100

$100

k. Lake Michigan College, Emerging Technologies Initiative

This project is estimated to cost $7 million with state support capped at $3,500,000. This involves renovating nearly 27,000 sq. ft. of instructional space and adding about 2,000 sq. ft. of space to support science and technology programs.

Gross

GF/GP

$100

$100

l. Monroe County Community College, Classroom Technology and Environmental Renovations

This project is estimated to cost $2.2 million with state support capped at $1,100,000. This involves upgrading nearly every campus classroom.

Gross

GF/GP

$100

$100

m. Mott Community College, Library Renovations

This project is estimated to cost $8.2 million with state support capped at $4,100,000. This will upgrade and modernize this 80,000+ sq. ft. facility.

Gross

GF/GP

$100

$100

n. Muskegon Community College, Museum/Art Project

This project is estimated to cost $10 million with state support capped at $5,000,000. This allows for the construction of a 60,000 sq. ft. addition to the downtown Muskegon Museum of Art to support the college's art instruction programs.

Gross

GF/GP

$100

$100

o. North Central Michigan College, University and Science Center Building

This project is estimated to cost $16.3 million with state support capped at $8,161,800. This entails the construction of a new instructional of nearly 49,000 sq. ft. and renovating the oldScienceBuilding for general classrooms and nursing education.

Gross

GF/GP

$100

$100

p. Oakland Community College, Building A Addition and Renovations

This project is estimated to cost $32.1 million with state support capped at $16,032,500. This entails renovating and expanding this Auburn Hills Campus instructional facility.

Gross

GF/GP

$100

$100

q. St. Clair County Community College, Health and Human Services Center

This project is estimated to cost $7 million with state support capped at $3,500,000. This entails the renovation of 70,000 sq. ft. of space to support the college's health education programs.

Gross

GF/GP

$100

$100

r. Wayne County Community College, Northwest Campus Replacement

This project is estimated to cost $42 million with state support capped at $21,000,000. This entails the construction of a new 180,000 sq. ft. instructional facility, retrofitting several other buildings, and the demolition of obsolete buildings.

Gross

GF/GP

$100

$100

6. Michigan Department of Transportation (MDOT), Airport Safety, Protection and Improvement Program

These funds will be used to supportsecurity/general improvement projects at more than 100 local and state airports.

Gross

Federal

Local

Restricted

$157,734,400

125,000,000

20,000,000

12,734,400

$5,168,200

12,254,300

(7,351,700)

265,600

7. MDOT, Detroit Integrated Transportation Campus

This $17.5 million facility will house a transportation service center, the Michigan Intelligent Transportation System (MITS) command center, State Police dispatch operations, and lease space for SMART and Greyhound.

Gross

Restricted

$13,187,000

13,187,000

8. MDOT, Oakland County Transportation Service Center

Construction authorization for new 15,000 sq. ft. TSC. This includes funds to purchase land as the current TSC is in leased space.

Gross

Restricted

$2,500,000

2,500,000

9. MDOT, Bay City Transportation Service Center Addition

Construction authorization.

Gross

Restricted

$550,000

550,000

10. MDOT, Gladstone Bituminous Testing Laboratory

Construction authorization for new 60' x 40' facility and renovation of vacated space for equipment storage.

Gross

Restricted

$400,000

400,000

11. MDOT, Washbay Additions, Various Maintenance Garages

Authorization to construct vehicle washbays at the Sawyer ($283,300) andBrighton ($280,000) maintenance facilities.

Gross

Restricted

$250,000

250,000

$313,300

313,300

12. MDOT, Completed Project Financing

Reductions reflect completed projects or projects that do not need additional financing.

Gross

Local

Restricted

$3,398,200

784,200

2,614,000

($3,398,200)

(784,200)

(2,614,000)

13. Department of Natural Resources (DNR), Waterways, State Infrastructure Improvements

Lump-sum contingency account for emergency repairs, preventive and routine maintenance, small projects, and utility upgrades at state harbors and docks. Funds will also support engineering work.

Gross

Federal

Restricted

$3,970,000

1,470,000

2,500,000

$750,000

750,000

14. DNR, Waterways, Local Infrastructure Improvements

Lump-sum contingency account for emergency repairs, preventive and routine maintenance, small projects, and utility upgrades at locally owned harbors and docks. Funds will also support engineering work.

Gross

Restricted

$1,500,000

1,500,000

$750,000

750,000

15. DNR, Waterways, Land Acquisitions

Provides a lump-sum contingency account to purchase lands as they become available to provide greater boating opportunities.

Gross

Restricted

$1,000,000

1,000,000

$170,000

170,000

16. DNR, Wildlife, Statewide Wetlands Acquisitions

Provides a lump-sum contingency account to purchase lands as they become available. The department's priority is to acquire private in-holdings to consolidate existing state ownership.

Gross

Restricted

$2,000,000

2,000,000

17. DNR, Waterways, DeTour Harbor Facility Improvements and Floating Dock Replacement

Federal monies will finance 75% of the cost to upgrade this state-owned facility.

Gross

Federal

Restricted

$4,000,000

3,000,000

1,000,000

18. DNR, Waterways, Mitchell State Park Seawall and Walkway Improvements

These funds will be used to replace the seawall connecting lakes Cadillac and Mitchell and construct an adjacent walkway.

Gross

Restricted

$463,000

463,000

19. DNR, Waterways, Mackinaw City, New Marina

The remaining FY 2007 appropriation of $265,000 is estimated to be the final phase funding to complete this $10.6 million project.

Gross

Restricted

$5,735,000

5,735,000

($5,470,000)

(5,470,000)

20. DNR, Waterways, Walloon Lake, New Boating Access Site

These funds will be used towards the engineering and construction of a new state-owned launch site inCharlevoix County.

Gross

Restricted

$510,000

510,000

21. DNR, Waterways, Leland Marina Rehabilitation Grant-in-Aid

The FY 2007 appropriation will be used to increase the state's share of the project cost from 50% to 75%.

Gross

Restricted

$1,750,000

1,750,000

($875,000)

(875,000)

22. DNR, Boating Access Sites, Grants-in-Aid

Provides various levels of matching funds toTuscaroraTownship ($332,500), Ludington ($171,000), andFrankfort ($113,500) for boating access site projects.

Gross

Restricted

$617,000

617,000

23. DNR, Forest Roads, Bridges & Facility Maintenance

Increased and on-going funding from mostly the Forest Development Fund to address outstanding maintenance issues.

Gross

Restricted

$900,000

900,000

$500,000

500,000

24. DNR, Waterways, Completed Project Financing

Reductions reflect completed projects or projects that do not need additional financing.

Gross

Federal

Restricted

$14,085,200

4,382,600

9,702,600

($14,085,200)

(4,382,600)

(9,702,600)

25. Department of Military & Veterans Affairs (DMVA), Camp Grayling

Sufficient funds have been appropriated to complete the construction of a new multiple company headquarters building.

Gross

Federal

$18,500,000

18,500,000

($18,500,000)

(18,500,000)

26. DMVA, Land Acquisitions & Appraisals

Eliminate one-time FY 2006 appropriation.

Gross

Restricted

$200,000

200,000

($200,000)

(200,000)

27. DNR, Natural Resources Trust Fund Projects

Reflects elimination of one-time authorizations for development and acquisition projects in FY 2006.

Gross

Restricted

$39,357,900

39,357,900

($39,357,900)

(39,357,900)

Major Boilerplate Changes from FY 2005-06
*Department of Corrections* **1. Sec. 401. Watchtowers at Maximum Correctional Facilities– DELETED New maximum security prisons are to have manned and operational watchtowers. The Executive** deletes this language.
**2. Sec. 402. Prison Facility Locations– DELETED Requires Joint Capital Outlay Subcommittee approval of the actual site of a correctional facility if not specified in an appropriations act. The Executive** deletes this language.
*Use and Finance Statements* *3. Sec. 501. Use and Finance Statements Submitted by Colleges and Universities* – MODIFIED Subsection 3 stipulates that an institution found in violation of the Use and Finance filing and approval requirements could not receive any state capital outlay funds for 2 years and further that they could not even do a self-funded project for 1 year unless there are health and safety concerns. The Executive removes these penalties.
*Lump Sums and Special Maintenance* **4. Sec. 603. Operating Funds for Capital Outlay Purposes– MODIFIED A state agency may expend up $600,000 from operating appropriations for special maintenance, remodeling, additions, or other capital outlay purposes. The Executive** increases the amount to $1,000,000.
**5. Sec. 604. Re-Appropriation of Special Maintenance Funds– NEW This would re-appropriate any remaining FY 2002 GF/GP appropriations of $1,288,300 for Major Special Maintenance from the departments of Community Health, Human Services, Management and Budget, Military and Veterans Affairs, and State Police to the Department of Corrections. The Executive** recommends this language.
*Department of Natural Resources* **6. Sec. 903. Transfer of Funds From Harbor Development Fund to the Waterways Fund– NEW This transfers all the remaining unreserved balance from the Harbor Development Fund (HDF) to the Waterways Fund (WF). The Executive** recommends this language.
*7. Sec. 1104. Prohibits the Construction of a Boating Access Site –* DELETED This prohibits the expenditure of funds to construct a new public boating access site onWalloonLake inCharlevoixCounty and directs the department to work with local officials and the public to improve at least 1 existing boating access site. The Executive deletes this language.
*Department of Transportation* *8. Sec. 1204.* *WillowRunAirport* **Expansion, Prohibit– DELETED Appropriations for the Airport Program can not be expended to extend runways, taxiways, or aprons at theWillowRunAirport. The Executive** deletes this language.
*Miscellaneous* **9. Sec. 1303. Prohibit Triangle Property Lease– DELETED This prohibits expenditure of funds on the development or lease of the so-called Triangle Property in the City ofLansing without subsequent JCOS approval of a new lease agreement. The Executive** deletes this language.

Major Boilerplate Changes from FY 2005-06

Department of Corrections

1. Sec. 401. Watchtowers at Maximum Correctional Facilities– DELETED

New maximum security prisons are to have manned and operational watchtowers.

The Executive deletes this language.

2. Sec. 402. Prison Facility Locations– DELETED

Requires Joint Capital Outlay Subcommittee approval of the actual site of a correctional facility if not specified in an appropriations act.

The Executive deletes this language.

Use and Finance Statements

3. Sec. 501. Use and Finance Statements Submitted by Colleges and Universities – MODIFIED

Subsection 3 stipulates that an institution found in violation of the Use and Finance filing and approval requirements could not receive any state capital outlay funds for 2 years and further that they could not even do a self-funded project for 1 year unless there are health and safety concerns.

The Executive removes these penalties.

Lump Sums and Special Maintenance

4. Sec. 603. Operating Funds for Capital Outlay Purposes– MODIFIED

A state agency may expend up $600,000 from operating appropriations for special maintenance, remodeling, additions, or other capital outlay purposes.

The Executive increases the amount to $1,000,000.

5. Sec. 604. Re-Appropriation of Special Maintenance Funds– NEW

This would re-appropriate any remaining FY 2002 GF/GP appropriations of $1,288,300 for Major Special Maintenance from the departments of Community Health, Human Services, Management and Budget, Military and Veterans Affairs, and State Police to the Department of Corrections.

The Executive recommends this language.

Department of Natural Resources

6. Sec. 903. Transfer of Funds From Harbor Development Fund to the Waterways Fund– NEW

This transfers all the remaining unreserved balance from the Harbor Development Fund (HDF) to the Waterways Fund (WF).

The Executive recommends this language.

7. Sec. 1104. Prohibits the Construction of a Boating Access Site – DELETED

This prohibits the expenditure of funds to construct a new public boating access site onWalloonLake inCharlevoixCounty and directs the department to work with local officials and the public to improve at least 1 existing boating access site.

The Executive deletes this language.

Department of Transportation

8. Sec. 1204. WillowRunAirport Expansion, Prohibit– DELETED

Appropriations for the Airport Program can not be expended to extend runways, taxiways, or aprons at theWillowRunAirport.

The Executive deletes this language.

Miscellaneous

9. Sec. 1303. Prohibit Triangle Property Lease– DELETED

This prohibits expenditure of funds on the development or lease of the so-called Triangle Property in the City ofLansing without subsequent JCOS approval of a new lease agreement.

The Executive deletes this language.

Table 1 - STATE BUILDING AUTHORITY PROJECTS, EXECUTIVE RECOMMENDATIONS FY 2006-07

Department/Institution	Project	Total	State	School
Construction Authorizations:		Cost	Share	Share
KirtlandCommunity College	Campus Wide Water Well System	$1,005,000	$502,500	$502,500
Management and Budget	State Facility Preservation, Phase III	50,000,000	50,000,000	0
Natural Resources	State Parks Improvement Projects	20,000,000	20,000,000	0
	Total Construction Authorizations	$71,005,000	$70,502,500	$502,500
Project Planning Authorizations:
State Agencies
Management and Budget	Regional Economic Development Initiative	$100,000,000	$100,000,000
	Subtotal State Agencies	$100,000,000	$100,000,000
Universities
EasternMichigan University	Pray -Harrold Building Renovations	$52,695,000	$39,521,300	$13,173,700
Lake Superior State University	South Hall Reconstruction	10,000,000	7,500,000	2,500,000
NorthernMichigan University	CohodasBuilding Adaptive Renovations	15,584,000	11,688,000	3,896,000
OaklandUniversity	EngineeringCenter	64,357,700	40,000,000	24,357,700
University ofMichigan - Dearborn	Teacher Preparation/Child Development Center	6,000,000	4,500,000	1,500,000
	Subtotal Universities	$148,636,700	$103,209,300	$45,427,400
Community Colleges
DeltaCollege	Health & Wellness Programs - F Wing	$11,299,000	$5,649,500	$5,649,500
Grand Rapids Community College	LifelongLearning Center	21,900,000	10,950,000	10,950,000
HenryFordCommunity College	ScienceBuilding Renovations	12,160,000	6,080,000	6,080,000
KalamazooValleyCommunity College	TexasTownship Campus Expansion	7,065,000	3,532,500	3,532,500
KelloggCommunity College	CClassroom Building Renovations	4,000,000	2,000,000	2,000,000
Lake Michigan College	Emerging Technologies Initiative	7,000,000	3,500,000	3,500,000
MonroeCountyCommunity College	Classroom Technology & Environmental Upgrades	2,200,000	1,100,000	1,100,000
MottCommunity College	Library Renovations	8,200,000	4,100,000	4,100,000
MuskegonCommunity College	Museum/Art Project	10,000,000	5,000,000	5,000,000
NorthCentralMichiganCollege	University andScienceCenter	16,323,700	8,161,800	8,161,900
OaklandCommunity College	Building A Addition/Renovations	32,065,000	16,032,500	16,032,500
St. Clair County Community College	Health & Human Services Center	7,000,000	3,500,000	3,500,000
WayneCountyCommunity College	Northwest Campus Replacement	42,000,000	21,000,000	21,000,000
	Subtotal Community Colleges	$181,212,700	$90,606,300	$90,606,400
	Total Planning Authorizations	$429,849,400	$293,815,600	$136,033,800
HFA/ADV5/24/06	Grand Total All Projects	$500,854,400	$364,318,100	$136,536,300