EXECUTIVE BUDGET BILL
February 28, 2008, Introduced by Senator SWITALSKI and referred to the Committee on Appropriations.
A bill to provide for a capital outlay program; to set forth
the provisions for its implementation within the budgetary process;
to make appropriations for planning and construction at state
institutions and the acquisition of land; to provide for the
elimination of fire hazards at the institutions; to provide for
certain special maintenance, remodeling, alteration, renovation, or
demolition of and additions to projects at state institutions; to
provide for elimination of occupational safety and health hazards
at state agencies and institutions; to provide for the award of
contracts; to provide for expenditures under the supervision of the
director of the department of management and budget and the state
administrative board; to provide for certain advances from the
general fund; to prescribe powers and duties of certain state
officers and agencies; to require certain reports, plans, and
agreements; to provide for leases; to prescribe standards and
conditions relating to the appropriations; to make appropriations
for the fiscal year ending September 30, 2009; and to provide for
the expenditure of the appropriations.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
PART 1
LINE-ITEM APPROPRIATIONS
CAPITAL OUTLAY
APPROPRIATIONS SUMMARY:
GROSS APPROPRIATION.................................... $ 249,966,700
Interdepartmental grant revenues:
Total interdepartmental grants and intradepartmental
transfers ........................................... 2,000,000
ADJUSTED GROSS APPROPRIATION........................... $ 247,966,700
Federal revenues:
Total federal revenues ................................ 188,017,600
Special revenue funds:
Total local revenues................................... 30,674,200
Total private revenues................................. 1,500,000
Total state restricted revenues........................ 27,324,900
State general fund/general purpose .................... $ 450,000
Sec. 102. DEPARTMENT OF AGRICULTURE
Farmland and open space development acquisition ....... $ 3,750,000
GROSS APPROPRIATION.................................... $ 3,750,000
Appropriated from:
Federal revenues:
DAG, multiple grants................................... 1,250,000
Special revenue funds:
Agriculture preservation fund ......................... 2,500,000
State general fund/general purpose .................... $ 0
Sec. 103. DEPARTMENT OF MANAGEMENT AND BUDGET
Major special maintenance, remodeling and addition
for state agencies................................... $ 2,000,000
GROSS APPROPRIATION.................................... $ 2,000,000
Appropriated from:
Interdepartmental grant revenues:
IDG, building occupancy charges........................ 2,000,000
Special revenue funds:
State general fund/general purpose .................... $ 0
Sec. 104. DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
For department of military and veterans affairs
special maintenance, remodeling and additions........ $ 12,900,000
Land acquisitions and appraisals statewide............. 500,000
Camp Grayling, military operations on urban terrain
(MOUT) training course construction (total authorized
cost $40,000,000; federal share $40,000,000)......... 40,000,000
GROSS APPROPRIATION.................................... $ 53,400,000
Appropriated from
Federal revenues:
DOD, department of the army - national guard bureau.... 52,450,000
Special revenue funds:
Armory construction fund............................... 500,000
State general fund/general purpose .................... $ 450,000
Sec. 105. DEPARTMENT OF NATURAL RESOURCES
(1) STATE PARK AND FOREST AREA IMPROVEMENTS
State parks repair and maintenance .................... $ 3,500,000
Forest roads, bridges and facilities .................. 1,300,000
GROSS APPROPRIATION.................................... $ 4,800,000
Appropriated from:
Special revenue funds:
Private revenues....................................... 1,500,000
State park improvement fund ........................... 2,000,000
Forest development fund ............................... 1,300,000
State general fund/general purpose .................... $ 0
(2) WATERWAYS BOATING PROGRAM
Infrastructure improvements – state projects........... $ 4,293,000
Infrastructure improvements – local projects........... 900,000
Land acquisitions...................................... 1,000,000
Boating program, state boating access sites:
Port Austin, Huron county, site improvements (total
authorized cost $500,000; state share $500,000)...... 500,000
Boating program, state harbors and docks:
Mackinaw City, Cheboygan county, new marina, state
dock, phase V, (total authorized cost is increased
from $11,775,000 to $12,075,000; state share is
increased from $11,775,000 to $12,075,000)........... 300,000
Boating program, local harbors and docks:
Metro beach metropark, Macomb county, dock
replacements, utility and seawall upgrades (total
authorized cost $4,800,000; state share $2,400,000;
local share $2,400,000).............................. 2,400,000
GROSS APPROPRIATION.................................... $ 9,393,000
Appropriated from:
Federal revenues:
DHS, U.S. coast guard.................................. $ 1,293,000
Special revenue funds:
Michigan state waterways fund.......................... 8,100,000
State general fund/general purpose..................... $ 0
Sec. 106. DEPARTMENT OF TRANSPORTATION
(1) BUILDINGS AND FACILITIES
Salt storage buildings and containment control
systems - contract agencies ......................... $ 2,765,000
Salt storage buildings and containment control
systems – various state locations.................... 1,337,000
Port Huron, St. Clair county, transportation service
center construction (total authorized cost $1,915,000;
state trunkline fund share $1,915,000)............... 1,915,000
Fennville, Allegan county, maintenance garage
expansion (total authorized cost $945,000; state
trunkline fund share $945,000)....................... 945,000
Institutional and agency roads......................... 750,000
Miscellaneous special maintenance, remodeling, and
additions............................................ 1,420,000
GROSS APPROPRIATION.................................... $ 9,132,000
Appropriated from:
Special revenue funds:
State trunkline fund .................................. 9,132,000
State general fund/general purpose .................... $ 0
(2) AIRPORT IMPROVEMENT PROGRAMS
Airport safety, protection and improvement program..... $ 167,491,700
GROSS APPROPRIATION.................................... $ 167,491,700
Appropriated from:
Federal revenues:
DOT, federal aviation administration................... 133,024,600
Special revenue funds:
Local aeronautics match................................ 30,674,200
State aeronautics fund................................. 3,792,900
State general fund/general purpose..................... $ 0
PART 2
PROVISIONS CONCERNING APPROPRIATIONS
Sec. 201. Pursuant to section 30 of article IX of the state
constitution of 1963, total state spending from state resources
under part 1 for fiscal year 2008-2009 is $27,774,900.00 and state
spending from state resources to be paid to local units of
government for fiscal year 2008-2009 is $9,857,900.00. The itemized
statement below identifies appropriations from which spending to
units of local government will occur:
CAPITAL OUTLAY
Department of natural resources – waterways boating
program.............................................. $ 3,300,000
Department of transportation – buildings and
facilities........................................... $ 2,765,000
Department of transportation – airport safety,
protection and improvement program................... $ 3,792,900
TOTAL.................................................. $ 9,857,900
Sec. 202. The appropriations authorized under this bill are
subject to the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 203. As used in this bill:
(a) "Board" means the state administrative board.
(b) "Community college" does not include a state agency or
university.
(c) "Department" means the department of management and budget.
(d) "Director" means the director of the department of
management and budget.
(e) "DAG" means the United States department of agriculture.
(f) "DHS" means the United States department of homeland
security.
(g) "DOD" means the United States department of defense.
(h) "DOI" means the United States department of interior.
(i) "DOT" means the United States department of transportation.
(j) "Fiscal agencies" means the senate fiscal agency and the
house fiscal agency.
(k) "IDG" means interdepartmental grant.
(l) "JCOS" means the joint capital outlay subcommittee of the
appropriations committees.
(m) "State agency" means an agency of state government. State
agency does not include a community college or university.
(n) "State building authority" means the authority created under
1964 PA 183, MCL 830.411 to 830.425.
(o) "University" means a 4-year university supported by the
state. University does not include a community college or a state
agency.
Sec. 204. Funds appropriated in part 1 shall not be used for
the purchase of foreign goods or services, or both, if
competitively priced and of comparable quality American goods or
services, or both, are available. Preference shall be given to
goods or services, or both, manufactured or provided by Michigan
businesses if they are competitively priced and of comparable
quality. In addition, preference shall be given to goods or
services, or both, that are manufactured or provided by Michigan
businesses owned and operated by veterans, if they are
competitively priced and of comparable quality.
Sec. 205. The departments and agencies receiving
appropriations in part 1 shall use the Internet to fulfill the
reporting requirements of this bill. This requirement may include
transmission of reports via electronic mail to the recipients
identified for each reporting requirement, or it may include
placement of reports on an Internet or Intranet site.
Sec. 206. The director of each department receiving
appropriations in part 1 shall take all reasonable steps to ensure
businesses in deprived and depressed communities compete for and
perform contracts to provide services or supplies, or both. Each
director shall strongly encourage firms with which the department
contracts to subcontract with certified businesses in depressed and
deprived communities for services, supplies, or both.
Sec. 301. Of the amounts appropriated in part 1 for farmland
and open space development acquisition, the funds shall be used for
the purchase of development rights and the awarding of grants by
the agriculture preservation fund board under the natural resources
and environmental protection act, 1994 PA 451, MCL 324.101 to
324.90106.
Sec. 401. Each capital outlay project authorized in this bill
or any previous capital outlay act shall comply with the procedures
required by the management and budget act, 1984 PA 431, MCL 18.1101
to 18.1594.
Sec. 402. A statement of a proposed facility's operating cost
shall be included with the facility's program statement and
planning documents when the plans are presented to JCOS for
approval.
Sec. 403. (1) Before proceeding with final planning and
construction for projects at community colleges and universities
included in an appropriations act, the community college or
university shall sign an agreement with the department that
includes the following provisions:
(a) The university or community college agrees to construct
the project within the total authorized cost established by the
legislature pursuant to the management and budget act, 1984 PA 431,
MCL 18.1101 to 18.1594, and an appropriations act.
(b) The design and program scope of the project shall not
deviate from the design and program scope represented in the
program statement and preliminary planning documents approved by
the department.
(c) Any other items as identified by the department that are
necessary to complete the project.
(2) The department retains the authority and responsibility
normally associated with the prudent maintenance of the public's
financial and policy interests relative to the state-financed
construction projects managed by a community college or university.
Sec. 404. (1) The department shall provide the JCOS, state
budget director and the fiscal agencies with reports as considered
necessary relative to the status of each planning or construction
project financed by the state building authority, by this bill, or
by previous acts.
(2) Before the end of each fiscal year, the department shall
report to the JCOS, state budget director and the fiscal agencies
for each capital outlay project other than lump sums all of the
following:
(a) The account number and name of each construction project.
(b) The balance remaining in each account.
(c) The date of the last expenditure from the account.
(d) The anticipated date of occupancy if the project is under
construction.
(e) The appropriations history for the project.
(f) The professional service contractor.
(g) The amount of a project financed with federal funds.
(h) The amount of a project financed through the state
building authority.
(i) The total authorized cost for the project and the state
authorized share if different than the total.
(3) Before the end of each fiscal year, the department shall
report the following for each project by a state agency,
university, or community college that is authorized for planning
but is not yet authorized for construction:
(a) The name of the project and account number.
(b) Whether a program statement is approved.
(c) Whether schematics are approved by the department.
(d) Whether preliminary plans are approved by the department.
(e) The name of the professional service contractor.
(4) As used in this section, "project" includes appropriation
line items made for purchase of real estate.
Sec. 405. A state agency, college, or university shall take
steps necessary to make available federal and other money indicated
in this bill, to make available federal or other money that may
become available for the purposes for which appropriations are made
in this bill, and to use any part or all of the appropriations to
meet matching requirements that are considered to be in the best
interest of this state. However, the purpose, scope, and total
estimated cost of a project shall not be altered to meet the
matching requirements.
Sec. 501. (1) The directors of respective departments shall
allocate lump-sum appropriations made in this bill consistent with
statutory provisions and the purposes for which funds were
appropriated. Lump sum allocations shall address priority program
or facility needs and may include, but are not limited to, design,
construction, remodeling and addition, special maintenance, major
special maintenance, energy conservation and demolition.
(2) The state budget director may authorize that funds
appropriated for lump-sum appropriations shall be available for no
more than 3 fiscal years following the fiscal year in which the
original appropriation was made. Any remaining balance from
allocations made in this section shall lapse to the fund from which
it was appropriated pursuant to the lapsing of funds as provided in
the management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594.
Sec. 601. (1) This section applies only to projects for
community colleges.
(2) State support is directed towards the remodeling and
additions, special maintenance, or construction of certain
community college buildings. The community college shall obtain or
provide for site acquisition and initial main utility installation
to operate the facility. Funding shall be comprised of local and
state shares, and the state share shall include 50% of any federal
money awarded for projects appropriated in this bill. Not more than
50% of a capital outlay project, not including a lump-sum special
maintenance project or remodeling and addition project, for a
community college shall be appropriated from state and federal
funds, unless otherwise appropriated by the legislature.
(3) An expenditure under this bill is authorized when the
release of the appropriation is approved by the board upon the
recommendation of the director. The director may recommend to the
board the release of any appropriation in part 1 only after the
director is assured that the legal entity operating the community
college to which the appropriation is made has complied with this
bill and has matched the amounts appropriated as required by this
bill. A release of funds in part 1 shall not exceed 50% of the
total cost of planning and construction of any project, not
including lump-sum remodeling and additions and special
maintenance, unless otherwise appropriated by the legislature.
Further planning and construction of a project authorized by this
bill or applicable sections of the management and budget act, 1984
PA 431, MCL 18.1101 to 18.1594, shall be in accordance with the
purpose and scope as defined and delineated in the approved program
statements and planning documents. This bill is applicable to all
projects for which planning appropriations were made in previous
acts.
(4) The community college shall take the steps necessary to
secure available federal construction and equipment money for
projects funded for construction in this bill if an application was
not previously made. If there is a reasonable expectation that a
prior year unfunded application may receive federal money in a
subsequent year, the college shall take whatever action necessary
to keep the application active. If federal money is received, the
state share shall be adjusted accordingly as provided by this bill.
Sec. 602. If matching revenues are received in an amount less
than the appropriations contained in this bill, the state funds of
the appropriation shall be reduced in proportion to the amount of
matching revenue received.
Sec. 603. (1) The director may require that community colleges
and universities that have an authorized project listed in part 1
submit documentation regarding the project match and governing
board approval of the authorized project not more than 60 days
after the beginning of the fiscal year.
(2) If the documentation required by the director under
subsection (1) is not submitted, or does not adequately
authenticate the availability of the project match or board
approval of the authorized project, the authorization may
terminate. The authorization terminates 30 days after the director
notifies the JCOS of the intent to terminate the project unless the
JCOS convenes to extend the authorization.
Sec. 701. The appropriations in part 1 for the department of
military and veterans affairs design and construction projects are
contingent upon the availability of federal and state restricted
funds for financing.
Sec. 801. The appropriation made in this bill for the harbors
and docks program is for the purpose of participating with the
federal government and assisting political entities and
subdivisions of this state in the construction and improvement of
recreational boating facilities within this state. Subject to the
approval of the board, this money shall be allocated by the
department of natural resources to the federal government, or to
the political entities or local units of government involved in the
particular projects. An allocation shall not exceed the state
portion as listed with each project description. The department of
natural resources shall take the steps necessary to match federal
money available for the construction and improvement of
recreational boating facilities within this state, and to meet
requirements of the federal government.
Sec. 901. (1) From federal-state-local project appropriations
contained in part 1 for the purpose of assisting political entities
and subdivisions of this state in the construction and improvement
of publicly used airports and landing fields within this state, the
state transportation department may permit the award of contracts
on behalf of units of local government for the authorized locations
not to exceed the indicated amounts, of which the state allocated
portion shall not exceed the amount appropriated in part 1.
(2) Political entities and subdivisions shall provide not less
than 2.5% of the cost of any project under this section, unless a
total nonfederal share greater than 5% is otherwise specified in
federal law. State money shall not be allocated until local money
is allocated. State money for any 1 project shall not exceed 1/3 of
the total appropriation in part 1 from state funds for airport
improvement programs.
(3) The Michigan aeronautics commission may take those steps
necessary to match federal money available for airport construction
and improvement within this state, and to meet the matching
requirements of the federal government. Whether acting alone or
jointly with another political subdivision or public agency or with
this state, a political subdivision or public agency of this state
shall not submit to any agency of the federal government a project
application for airport planning or development unless it is
authorized in this bill and the project application is approved by
the governing body of each political subdivision or public agency
making the application, and by the Michigan aeronautics commission.
Sec. 1001. (1) Revenue collected from licenses issued under
the antenna site management project shall be deposited into the
antenna site management revolving fund created for this purpose in
the department of information technology. The department may
receive and expend funds from the fund for costs associated with
the antenna site management project, including the cost of a third-
party site manager. Any excess revenue remaining in the fund at the
close of the fiscal year shall be proportionately transferred to
the appropriate state restricted funds as designated in statute or
by constitution.
(2) An antenna shall not be sited pursuant to this section
without prior compliance with the respective local zoning codes and
local unit of government processes.
Sec. 1002. (1) A site preparation economic development fund is
hereby created in the department of management and budget. As used
in this section, "economic development sites" means those state-
owned sites declared as surplus property pursuant to section 251 of
the management and budget act, 1984 PA 431, MCL 18.1251, that would
provide economic benefit to the area or to the state. The Michigan
economic development corporation board and the state budget
director shall determine whether or not a specific state-owned site
qualifies for inclusion in the fund created under this subsection.
(2) Proceeds from the sale of any sites designated in
subsection (1) shall be deposited into the fund created in
subsection (1) and shall be available for site preparation
expenditures, unless otherwise provided by law. The economic
development sites authorized in subsection (1) are hereby
authorized for sale consistent with state law. Expenditures from
the fund are hereby authorized for site preparation activities that
enhance the marketable sale value of the sites. Site preparation
activities include, but are not limited to, demolition,
environmental studies and abatement, utility enhancement, and site
excavation.
(3) A cash advance in an amount of not more than
$25,000,000.00 is hereby authorized from the general fund to the
site preparation economic development fund.
(4) An annual report shall be transmitted to the senate and
house of representatives appropriations committees not later than
December 31 of each year. This report shall detail both of the
following:
(a) The revenue and expenditure activity in the fund for the
preceding fiscal year.
(b) The sites identified as economic development sites under
subsection (1).