MILITARY AND VETERANS AFFAIRS

Summary: FY 2008-09

HB 5812 (H-1)

Analyst: Jan Wisniewski

		FY 2008-09	FY 2008-09	FY 2008-09	FY 2008-09	*Difference: House Passed Recommendation* *From FY 2007-08 YTD*
	FY 2007-08 YTD	Executive	House Passed		Enacted	*Amount*	%
IDG/IDT	$1,680,900	$1,681,200	$1,681,200			$300	0.0
Federal	56,187,500	57,538,200	57,538,200			1,350,700	2.4
Local	1,283,900	1,284,600	1,284,600			700	0.1
Private	1,463,300	1,463,700	1,463,700			400	0.0
Restricted	28,428,600	28,300,400	28,300,400			(128,200)	(0.5)
GF/GP	40,386,500	40,120,600	40,337,900			(48,600)	(0.1)
Gross	$129,430,700	$130,388,700	$130,606,000			*$1,175,300*	*0.9*
FTEs	1,022.0	992.0	992.0			(30.0)	(3.0)

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	House Passed Change From YTD
*1. 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.	Gross GF/GP	$0 $0	$100,000 $100,000
*2. 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.	Gross GF/GP	$3,912,300 $3,912,300	$117,300 $117,300
*3. 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.	Gross Federal Restricted GF/GP	$10,742,500 3,161,100 346,400 $7,235,000	$88,300 0 0 $88,300
*4. 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.	Gross Federal GF/GP	$1,660,100 1,266,100 $394,000	$400,000 400,000 $0
*5. 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.	Gross Federal	$957,000 $957,000	$815,000 $815,000
*6. 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.	Gross Federal Restricted GF/GP	NA NA NA NA	($984,900) (18,700) (136,900) ($829,300)
*7. 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.	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
*8. 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.	Gross GF/GP	$3,048,000 $3,048,000	$169,500 $169,500

Major Budget Changes From FY 2007-08 YTD Appropriations

FY 2007-08 YTD

House Passed Change

From YTD

1. 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.

Gross

GF/GP

$100,000

$100,000

2. 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.

Gross

GF/GP

$3,912,300

$3,912,300

$117,300

$117,300

3. 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.

Gross

Federal

Restricted

GF/GP

$10,742,500

3,161,100

346,400

$7,235,000

$88,300

$88,300

4. 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.

Gross

Federal

GF/GP

$1,660,100

1,266,100

$394,000

$400,000

400,000

5. 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.

Gross

Federal

$957,000

$957,000

$815,000

$815,000

6. 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.

Gross

Federal

Restricted

GF/GP

($984,900)

(18,700)

(136,900)

($829,300)

7. 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.

Gross

IDG

Federal

Private

Local

Restricted

GF/GP

$360,100

300

155,000

400

700

9,200

$194,500

8. 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.

Gross

GF/GP

$3,048,000

$3,048,000

$169,500

$169,500

Major Boilerplate Changes From FY 2007-08

Sec. 235. Department Expenditures on Public Internet Site

House Floor amendment adds language directing the Department to develop, post and maintain all fiscal year expenditures on a publicly accessible Internet site.

Sec. 236. Expenditure Limit for Sec. 242.

House Floor amendment adds language limiting the amount of expenditure to implement Sec. 235 to $25,000 with no decrease for essential services.

Sec. 233. CountyVeteran's Counselor Incentives - New House Subcommittee Language

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.

Sec. 234. Veterans Federal Benefits Claims Status - New House Subcommittee Language

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.

Sec. 305. War Veteran's Memorial Rehabilitation - New House Subcommittee Language

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.

Sec. 207. Privatization

Exec. Rec. deletes requirement for Department to report privatization plans to the appropriations subcommittees and the fiscal agencies. House Subcommittee does not concur and retains current law. House Appropriations Committee concurs with the Subcommittee. House concurs with the Subcommittee.

Sec. 211. Reporting Requirement

Exec. Rec. deletes requirement for receiving and retaining reports funded from appropriations in part 1 and for following federal guidelines and state laws regarding record retention. House Subcommittee does not concur and retains current law. House Appropriations Committee concurs with the Subcommittee. House concurs with the Subcommittee.

Sec. 213. Armory Closures

Exec. Rec. deletes requirement for Department to consult with the appropriations subcommittees regarding closure or consolidation of National Guard armories. House Subcommittee does not concur and retains current law. House Appropriations Committee concurs with the Subcommittee. House concurs with the Subcommittee.

Sec. 214. State Military Cemeteries

Exec. Rec. deletes legislative intent to fund state military cemeteries in Crawford and Dickinson counties if funds are available. House Subcommittee does not concur and retains current law. House Appropriations Committee concurs with the Subcommittee. House concurs with the Subcommittee.

Sec. 226. Disciplinary Action Prohibition

Exec. Rec. deletes prohibiting Department from taking disciplinary action against Department employees that communicate with the Legislature. House Subcommittee does not concur and retains current law. House Appropriations Committee concurs with the Subcommittee. House concurs with the Subcommittee.

Sec. 227. Sale of Department Property

Exec. Rec. deletes requirement for reporting to the appropriations subcommittees concerning the sale of any Department property. House Subcommittee does not concur and retains current law. House Appropriations Committee concurs with the Subcommittee. House concurs with the Subcommittee.

Sec. 231. Policy Change Report

Exec. Rec. deletes requirement for reporting policy changes for implementing legislation to the Legislature. House Subcommittee does not concur and retains current law. House Appropriations Committee concurs with the Subcommittee. House concurs with the Subcommittee.

Sec. 301. Armory Rental Fees

Exec. Rec. deletes authorization for Department to charge rental and equipment usage fees for armory rentals. House Subcommittee does not concur and retains current law. House Appropriations Committee concurs with the Subcommittee. House concurs with the Subcommittee.

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

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.

Sec. 501(6). Veterans Service Organization Report

Exec. Rec. deletes requirement for reporting to the appropriations subcommittees concerning suggestions for enhancing veterans' benefits counseling programs. House Subcommittee does not concur and retains current law. House Appropriations Committee concurs with the Subcommittee. House concurs with the Subcommittee.

Sec. 601. Veterans' Home Appropriations

Exec. Rec. deletes requirement for the use of appropriations for the two state veterans' homes for any purpose other than for veterans and veterans' families. House Subcommittee does not concur and retains current law. House Appropriations Committee concurs with the Subcommittee. House concurs with the Subcommittee.

Sec. 602. Veterans' Home Reports

Exec. Rec. deletes requirement for report containing census and financial information for the two homes to the appropriations subcommittees. House Subcommittee does not concur and retains current law. House Appropriations Committee concurs with the Subcommittee. House concurs with the Subcommittee.

Sec. 604. Post and Posthumous Funds Spending Plan Report

Exec. Rec. deletes requirement for Department to report within 30 days to the appropriations committees any plans to alter the spending plan for the post and posthumous funds by the board of managers of the two state veterans homes. House Subcommittee does not concur and retains current law. House Appropriations Committee concurs with the Subcommittee. House concurs with the Subcommittee.

Sec. 704. Assistance toCountyVeterans Counselors

Exec. Rec. deletes requirement for the veterans' affairs directorate and the Veterans' Trust Fund administration to train county veterans counselors. House Subcommittee does not concur and retains current law. House Appropriations Committee concurs with the Subcommittee. House concurs with the Subcommittee.