MILITARY AND VETERANS AFFAIRS

Summary: FY 2008-09

HB 5812 Conference Summary

Analyst: Jan Wisniewski

		FY 2008-09	FY 2008-09	FY 2008-09	FY 2008-09	*Difference: Conference Committee from YTD*
	FY 2007-08 YTD	Executive	House Passed	Senate Passed	Conference Committee	*Amount*	%
IDG/IDT	$1,680,900	$1,681,200	$1,681,200	$1,681,200	$1,681,200	$300	0.0
Federal	59,605,900	57,538,200	57,538,200	57,538,200	109,988,200	50,382,300	84.5
Local	1,283,900	1,284,600	1,284,600	1,284,600	1,284,600	700	0.0
Private	1,463,300	1,463,700	1,463,700	1,463,700	1,463,700	400	0.0
Restricted	29,072,200	28,300,400	28,300,400	28,300,400	29,050,400	(21,800)	(0.1)
GF/GP	40,503,800	40,120,600	40,337,900	40,237,900	40,339,800	(164,000)	(0.4)
Gross	$133,610,000	$130,388,700	$130,606,000	$130,506,000	183,807,900	*$50,197,900*	*37.6*
FTEs	1,022.0	992.0	992.0	992.0	992.0	(30.0)	(2.9)

Note: FY 2007-08 figures reflect supplementals and Executive Order (EO) actions throughFebruary 7, 2008.

Overview

The Department of Military and Veterans Affairs is responsible for the training and administration of Army and Air National Guard forces, providing combat-ready military forces during times of national emergency, and performing civil relief operations under the command of the governor during state emergencies. The Department’s budget includes administrative and maintenance costs associated with these responsibilities as well as several National Guard-related programs such as the Challenge Program and the National Guard Education Assistance Program. The Department has oversight over the following veterans-related programs: state-licensed nursing care at veterans homes inGrand Rapids andMarquette, grant funding to veterans service organizations, and the Michigan Veterans Trust Fund.

Major Budget Issues

Major Budget Changes From FY 2007-08 YTD Appropriations	FY 2007-08 YTD	Exec. Rec. Change From YTD	Conference Committee Change From YTD
*1. HMO Insurance Savings* Conference Committee reduced $129,500 Gross and GF/GP in various lines for HMO savings.	Gross GF/GP	N/A N/A	N/A N/A	($129,500) ($129,500)
*2. 1/4% GF/GP Reduction* Conference Committee removes $202,500 Gross and GF/GP in various lines for an across the board reduction.	Gross GF/GP	N/A N/A	N/A N/A	($202,500) ($202,500)
*3. War Veteran's Memorial Rehabilitation* House Subcommittee adds a new line in the Headquarters and Armories unit to fund the rehabilitation of the War Veteran's Memorial located on the state fairgrounds inDetroit. Corresponds with new boilerplate language in Sec. 305. House Appropriations Committee concurs. House concurs. Senate adds $100 as a placeholder for further discussion, removing $100 GF/GP from the Headquarters & Armories line. Conference Committee adds $5,000 GF/GP to this line with corresponding boilerplate in Sec. 305 providing these funds contingent on the receipt of $50,000 from WayneCounty.	Gross GF/GP	N/A N/A	N/A N/A	$5,000 $5,000
*4. Veterans Service Organizations* House Subcommittee adds a 3% increase for the VSOs totaling $117,300 GF/GP above the Exec. Rec. House Appropriations Committee concurs. House concurs. Senate concurs. Supplemental funds in PA 113 of 2008 added a 3% increase to the VSOs after the Exec. Rec. and House passed MVA bill were released. Conference Committee concurs to maintain the 3% increase.	Gross GF/GP	$4,029,600 $4,029,600	$0 $0	$0 $0
*5. Headquarters and Armories* Exec. Rec. adds $200,000 GF/GP for utilities and grounds maintenance at the Joint Forces Headquarters and Baker -OlinBuilding. Also removes $111,700 GF/GP and moves to the new Internal Audit Services line. House Subcommittee concurs. House Appropriations Committee concurs. House concurs. Senate concurs and reduces $100 GF/GP as a placeholder for the War Veteran's Memorial Rehabilitation. Conference Committee concurs with the Exec. Rec. and also removes $5,000 GF/GP for the War Veteran's Memorial Rehabilitation and $16,100 GF/GP to maintain the 3% increase for the VSOs.	Gross Federal Restricted GF/GP	$10,742,500 3,161,100 346,400 $7,235,000	$88,300 0 0 $88,300	$67,200 0 0 $67,200
*6. D.J. Jacobetti Home Fund Shift* Conference Committee shifts $250,000 GF/GP from the D.J. Jacobetti Home to the Military Training Sites and Support Facilities line with a simultaneous $250,000 increase in state restricted Income and Assessments furs for the Home.	Gross Federal Restricted GF/GP	$15,599,000 4,987,500 5,300,100 5,311,400	$13,400 27,400 (34,400) 20,400	$13,400 27,400 215,600 (229,600)
*7. Departmentwide Accounts - Vehicles and Equipment* Exec. Rec. adds $400,000 in Federal funds for large vehicles and equipment purchases, such as dump trucks and graders, for use atCamp Grayling and FortCuster. House Subcommittee concurs. House Appropriations Committee concurs. House concurs. Senate concurs. Conference Committee concurs.	Gross Federal GF/GP	$1,660,100 1,266,100 $394,000	$400,000 400,000 $0	$400,000 400,000 $0
*8. Federal Starbase Program Increase* Exec. Rec. adds authorization for technology training for 35 other Starbase program directors across theU. S. andPuerto Rico. House Subcommittee concurs. House Appropriations Committee concurs. House concurs. Senate concurs. Conference Committee concurs.	Gross Federal	$957,000 $957,000	$815,000 $815,000	$815,000 $815,000
*9. Human Resources Optimization and Consolidation* Exec. Rec. reduces funds for human resources consolidation per Executive Order 2007-30. Also reduces 9.0 total FTE positions. House Subcommittee concurs. House Appropriations Committee concurs. House concurs. Senate concurs. Conference Committee concurs.	Gross Federal Restricted GF/GP	NA NA NA NA	($984,900) (18,700) (136,900) ($829,300)	($984,900) (18,700) (136,900) ($829,300)
*10. Economic Adjustments* Exec. Rec. provides funding for employee economic adjustments; includes economic adjustments for Information Technology. House Subcommittee concurs. House Appropriations Committee concurs. House concurs. Senate concurs. Conference Committee concurs.	Gross IDG Federal Private Local Restricted GF/GP	NA NA NA NA NA NA NA	$360,100 300 155,000 400 700 9,200 $194,500	$360,100 300 155,000 400 700 9,200 $194,500
*11. Military Retirement Cost of Living Increase* Exec. Rec. provides GF/GP for a federal cost of living increase. House Subcommittee concurs. House Appropriations Committee concurs. House concurs. Senate concurs. Conference Committee concurs.	Gross GF/GP	$3,048,000 $3,048,000	$169,500 $169,500	$169,500 $169,500
*12. Capital Outlay Projects* Conference Committee adds $53,400,000 Gross for various capital outlay projects atCampGrayling	Gross Federal Restricted GF/GP	N/A N/A N/A N/A	N/A N/A N/A N/A	$53,400,000 $52,450,000 $500,000 $450,000

Major Budget Changes From FY 2007-08 YTD Appropriations

FY 2007-08 YTD

Exec. Rec. Change

From YTD

Conference Committee Change

From YTD

1. HMO Insurance Savings

Conference Committee reduced $129,500 Gross and GF/GP in various lines for HMO savings.

Gross

GF/GP

N/A

N/A

N/A

N/A

($129,500)

($129,500)

2. 1/4% GF/GP Reduction

Conference Committee removes $202,500 Gross and GF/GP in various lines for an across the board reduction.

Gross

GF/GP

N/A

N/A

N/A

N/A

($202,500)

($202,500)

3. War Veteran's Memorial Rehabilitation

House Subcommittee adds a new line in the Headquarters and Armories unit to fund the rehabilitation of the War Veteran's Memorial located on the state fairgrounds inDetroit. Corresponds with new boilerplate language in Sec. 305. House Appropriations Committee concurs. House concurs. Senate adds $100 as a placeholder for further discussion, removing $100 GF/GP from the Headquarters & Armories line. Conference Committee adds $5,000 GF/GP to this line with corresponding boilerplate in Sec. 305 providing these funds contingent on the receipt of $50,000 from WayneCounty.

Gross

GF/GP

N/A

N/A

N/A

N/A

$5,000

$5,000

4. Veterans Service Organizations

House Subcommittee adds a 3% increase for the VSOs totaling $117,300 GF/GP above the Exec. Rec. House Appropriations Committee concurs. House concurs. Senate concurs. Supplemental funds in PA 113 of 2008 added a 3% increase to the VSOs after the Exec. Rec. and House passed MVA bill were released. Conference Committee concurs to maintain the 3% increase.

Gross

GF/GP

$4,029,600

$4,029,600

5. Headquarters and Armories

Exec. Rec. adds $200,000 GF/GP for utilities and grounds maintenance at the Joint Forces Headquarters and Baker -OlinBuilding. Also removes $111,700 GF/GP and moves to the new Internal Audit Services line. House Subcommittee concurs. House Appropriations Committee concurs. House concurs. Senate concurs and reduces $100 GF/GP as a placeholder for the War Veteran's Memorial Rehabilitation. Conference Committee concurs with the Exec. Rec. and also removes $5,000 GF/GP for the War Veteran's Memorial Rehabilitation and $16,100 GF/GP to maintain the 3% increase for the VSOs.

Gross

Federal

Restricted

GF/GP

$10,742,500

3,161,100

346,400

$7,235,000

$88,300

$88,300

$67,200

$67,200

6. D.J. Jacobetti Home Fund Shift

Conference Committee shifts $250,000 GF/GP from the D.J. Jacobetti Home to the Military Training Sites and Support Facilities line with a simultaneous $250,000 increase in state restricted Income and Assessments furs for the Home.

Gross

Federal

Restricted

GF/GP

$15,599,000

4,987,500

5,300,100

5,311,400

$13,400

27,400

(34,400)

20,400

$13,400

27,400

215,600

(229,600)

7. Departmentwide Accounts - Vehicles and Equipment

Exec. Rec. adds $400,000 in Federal funds for large vehicles and equipment purchases, such as dump trucks and graders, for use atCamp Grayling and FortCuster. House Subcommittee concurs. House Appropriations Committee concurs. House concurs. Senate concurs. Conference Committee concurs.

Gross

Federal

GF/GP

$1,660,100

1,266,100

$394,000

$400,000

400,000

$400,000

400,000

8. Federal Starbase Program Increase

Exec. Rec. adds authorization for technology training for 35 other Starbase program directors across theU. S. andPuerto Rico. House Subcommittee concurs. House Appropriations Committee concurs. House concurs. Senate concurs. Conference Committee concurs.

Gross

Federal

$957,000

$957,000

$815,000

$815,000

$815,000

$815,000

9. Human Resources Optimization and Consolidation

Exec. Rec. reduces funds for human resources consolidation per Executive Order 2007-30. Also reduces 9.0 total FTE positions. House Subcommittee concurs. House Appropriations Committee concurs. House concurs. Senate concurs. Conference Committee concurs.

Gross

Federal

Restricted

GF/GP

($984,900)

(18,700)

(136,900)

($829,300)

($984,900)

(18,700)

(136,900)

($829,300)

10. Economic Adjustments

Exec. Rec. provides funding for employee economic adjustments; includes economic adjustments for Information Technology. House Subcommittee concurs. House Appropriations Committee concurs. House concurs. Senate concurs. Conference Committee concurs.

Gross

IDG

Federal

Private

Local

Restricted

GF/GP

$360,100

300

155,000

400

700

9,200

$194,500

$360,100

300

155,000

400

700

9,200

$194,500

11. Military Retirement Cost of Living Increase

Exec. Rec. provides GF/GP for a federal cost of living increase. House Subcommittee concurs. House Appropriations Committee concurs. House concurs. Senate concurs. Conference Committee concurs.

Gross

GF/GP

$3,048,000

$3,048,000

$169,500

$169,500

$169,500

$169,500

12. Capital Outlay Projects

Conference Committee adds $53,400,000 Gross for various capital outlay projects atCampGrayling

Gross

Federal

Restricted

GF/GP

N/A

N/A

N/A

N/A

$53,400,000

$52,450,000

$500,000

$450,000

Major Boilerplate Changes From FY 2007-08

Sec. 233. CountyVeteran's Counselor Incentives - NEW

Provides legislative intent for creating incentives for all counties to fund at least one full-time veteran's counselor. House Appropriations Committee concurs. House concurs with the Subcommittee. Senate concurs and adds language encouraging matching funds or sharing information technology resources to maximize benefits forMichigan veterans. Conference Committee concurs with the Senate.

Sec. 234. Veterans Federal Benefits Claims Status - NEW

Provides legislative intent for assisting veterans with checking on their claims status either online or by telephone. House Appropriations Committee concurs. House concurs with the Subcommittee. Senate concurs. Conference Committee concurs.

Sec. 237. Department Employee Travel Restrictions - NEW

Limits out of state employee travel to one departmental employee for each specific professional development conference or training seminar, with an exception if federal or private funds are used for travel and if more than one employee is required to attend.

Sec. 302(3). Challenge Program Low Income Participants - NEW

Exec. Rec. adds new language specifying that at least 75% of participants come from families at or below 200% of the federal poverty level. House Subcommittee does not concur and does not include this new language. House Appropriations Committee concurs with the Subcommittee. House Floor amendment concurs with the Exec. Rec. and includes this subsection. Senate does not concur with House and retains current law. Conference Committee includes language for recruiting candidates from economically disadvantaged areas.

Sec. 305. War Veteran's Memorial Rehabilitation - NEW

Provides $100,000 for the rehabilitation of the War Veteran's Memorial located on the state fairgrounds inDetroit. House Appropriations Committee concurs. House concurs with the Subcommittee. Senate does not concur and does not include this language. Conference Committee provides $5,000 GF/GP contingent on the receipt of $50,000 from WayneCounty and allows the use of private donations.

Secs 801, 802, and 803. Capital Outlay - NEW

Conference Committee inserts capital outlay boilerplate language for use of funds for various capital outlay projects.