MILITARYAND VETERANS AFFAIRS

SB 250

Summary: FY 2009-10 Conference Committee

Analyst: Jan Wisniewski

		FY 2009-10	FY 2009-10	FY 2009-10	FY 2009-10	*Difference: Conference Committee from YTD*
	FY 2008-09 YTD	Executive	Senate	House	Conference Committee	*Amount*	%
IDG/IDT	$1,681,200	$1,686,500	$1,686,500	$1,686,500	$1,686,500	$5,300	0.3
Federal	121,533,800	77,347,300	77,347,300	77,347,300	77,347,300	(44,186,500)	(36.4)
Local	1,276,600	1,295,100	1,295,100	1,295,100	1,295,100	18,500	1.4
Private	1,463,700	1,471,200	1,471,200	1,471,200	1,471,200	7,500	0.5
Restricted	29,730,100	27,924,200	27,924,200	27,924,200	27,924,200	(1,805,900)	(6.1)
GF/GP	37,472,700	39,487,200	39,087,200	35,910,100	36,425,200	(1,047,500)	(2.8)
Gross	$193,158,100	$149,211,500	$148,811,500	$145,634,400	$146,149,800	*(47,008,300)*	*(24.3)*
FTEs	992.0	992.0	992.0	992.0	992.0	0.0	0.0

Note: FY 2008-09 figures reflect supplementals and Executive Order (EO) actions throughSeptember 25, 2009.

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 Changes From FY 2008-09 YTD Appropriations	Year To Date	Executive Recommendation	Conference Committee
*1. Capital Outlay Projects Reduction* Exec. Rec. removes various capital outlay projects that were included in the Department's FY09 budget. The remaining $23.9 million is federal funding for special maintenance, remodeling, and additions. Conference Committee concurs.	Gross Federal Restricted GF/GP	$62,274,000 61,450,000 500,000 $324,000	($38,400,000) (37,450,000) (500,000) ($324,000)	($38,400,000) (37,450,000) (500,000) ($324,000)
*2. Military Retirement Cost of Living Increase* Exec. Rec. provides GF/GP for federally-mandated cost of living increase. Conference Committee concurs.	Gross GF/GP	$3,317,500 $3,317,500	$190,300 $190,300	$190,300 $190,300
*3. War Veteran's Memorial Rehabilitation - Remove* Exec. Rec. removes line in Headquarters and Armories unit to fund one-time rehabilitation of War Veteran's Memorial on the state fairgrounds inDetroit. Conference Committee concurs.	Gross GF/GP	$5,000 $5,000	($5,000) ($5,000)	($5,000) ($5,000)
*4. Headquarters and Armories* Exec. Rec. increases $500,000 in federal revenue for communications and personnel costs. Conference Committee concurs and also decreases $29,200 GF/GP for administrative efficiencies.	Gross Federal Restricted GF/GP	$10,532,900 3,842,700 350,000 $6,340,200	$500,000 500,000 0 $0	$470,800 500,000 0 ($29,200)
*5. Military Training Sites and Support Facilities* Exec. Rec. increases $2.0 million in federal revenue for various maintenance and support projects; decreases $1.5million in restricted funds by removing the Regional Training Institute Fund, which was the Department's fund for collecting rental fees for use of the Regional Training Institute inBattle Creek. Federal funds will now be used in place of these rental fees for maintenance of the Regional Training Institute. Also decreases $350,000 GF/GP for the National Guard Education Assistance Program to reflect actual expenditures. Conference Committee concurs but also decreases an additional $400,000 GF/GP for the elimination of the National Guard Education Assistance Program. National Guard members may qualify for additional federal assistance from the G.I. Bill to cover more of their educational costs.	Gross Federal Restricted GF/GP	$146,000 2,000,000 (1,504,000) ($350,000)	($254,000) 2,000,000 (1,504,000) ($750,000)	($536,500) 2,000,000 (1,504,000) ($1,032,500)
*6. Starbase Program* Exec. Rec. increases $550,000 in federal funds for operations of the Department's Starbase programs. Conference Committee concurs.	Gross Federal	$1,772,000 $1,772,000	$550,000 $550,000	$550,000 $550,000
*7. Economic Adjustments* Exec. Rec. provides funds for employee economic adjustments; includes economic adjustments for information technology. Conference Committee concurs.	Gross IDG Federal Private Local Restricted GF/GP	$1,873,300 5,300 876,700 7,500 10,500 438,700 $534,600	$1,873,300 5,300 876,700 7,500 10,500 438,700 $534,600	$1,873,300 5,300 876,700 7,500 10,500 438,700 $534,600
8. *Grand Rapids* *Veterans' Home* Exec. Rec. increases $850,000 in federal Medicare funds. Conference Committee concurs, but also decreases $950,000 GF/GP for expanded federal funding that will cover more of the cost of care of some veterans at the home.	Gross Federal Restricted GF/GP	$49,055,700 18,486,200 14,985,200 $15,584,300	$850,000 850,000 0 $0	($100,000) 850,000 0 ($950,000)
*9. D. J. Jacobetti Veterans' Home* Exec. Rec. increases $50,000 in federal Medicare funds. Conference Committee concurs, but also decreases $300,000 GF/GP for expanded federal funding that will cover more of the cost of care of some veterans at the home.	Gross Federal Restricted GF/GP	$15,836,400 5,296,900 5,776,300 $4,736,200	$50,000 50,000 0 $0	($250,000) 50,000 0 ($300,000)
*10. Veterans Service Organizations* Exec. Rec. maintains current year funding prior to a $1.0 million GF/GP reduction from Executive Order 2009 - 22. Conference Committee concurs with the $1.0 million decrease and provides six months of funding for the individual VSOs. The remaining funds will be distributed to the VSOs on a special grant basis determined by the department.	Gross GF/GP	$3,029,600 $3,029,600	$1,000,000 $1,000,000	($1,100,100) ($1,100,100)
*11. Information Technology* Exec. Rec. increases $70,900 for software upgrades and decreases $400 in restricted funds for an information technology reduction. Conference Committee concurs but also decreases $100,000 GF/GP for administrative efficiencies.	Gross Federal Restricted GF/GP	$1,160,400 435,500 328,200 $396,700	$47,400 18,000 13,000 $16,400	($52,600) 18,000 13,000 ($83,600)

Major Budget Changes From FY 2008-09 YTD Appropriations

Year To Date

Executive Recommendation

Conference Committee

1. Capital Outlay Projects Reduction

Exec. Rec. removes various capital outlay projects that were included in the Department's FY09 budget. The remaining $23.9 million is federal funding for special maintenance, remodeling, and additions. Conference Committee concurs.

Gross

Federal

Restricted

GF/GP

$62,274,000

61,450,000

500,000

$324,000

($38,400,000)

(37,450,000)

(500,000)

($324,000)

($38,400,000)

(37,450,000)

(500,000)

($324,000)

2. Military Retirement Cost of Living Increase

Exec. Rec. provides GF/GP for federally-mandated cost of living increase. Conference Committee concurs.

Gross

GF/GP

$3,317,500

$3,317,500

$190,300

$190,300

$190,300

$190,300

3. War Veteran's Memorial Rehabilitation - Remove

Exec. Rec. removes line in Headquarters and Armories unit to fund one-time rehabilitation of War Veteran's Memorial on the state fairgrounds inDetroit. Conference Committee concurs.

Gross

GF/GP

$5,000

$5,000

($5,000)

($5,000)

($5,000)

($5,000)

4. Headquarters and Armories

Exec. Rec. increases $500,000 in federal revenue for communications and personnel costs. Conference Committee concurs and also decreases $29,200 GF/GP for administrative efficiencies.

Gross

Federal

Restricted

GF/GP

$10,532,900

3,842,700

350,000

$6,340,200

$500,000

500,000

$470,800

500,000

($29,200)

5. Military Training Sites and Support Facilities

Exec. Rec. increases $2.0 million in federal revenue for various maintenance and support projects; decreases $1.5million in restricted funds by removing the Regional Training Institute Fund, which was the Department's fund for collecting rental fees for use of the Regional Training Institute inBattle Creek. Federal funds will now be used in place of these rental fees for maintenance of the Regional Training Institute. Also decreases $350,000 GF/GP for the National Guard Education Assistance Program to reflect actual expenditures. Conference Committee concurs but also decreases an additional $400,000 GF/GP for the elimination of the National Guard Education Assistance Program. National Guard members may qualify for additional federal assistance from the G.I. Bill to cover more of their educational costs.

Gross

Federal

Restricted

GF/GP

$146,000

2,000,000

(1,504,000)

($350,000)

($254,000)

2,000,000

(1,504,000)

($750,000)

($536,500)

2,000,000

(1,504,000)

($1,032,500)

6. Starbase Program

Exec. Rec. increases $550,000 in federal funds for operations of the Department's Starbase programs. Conference Committee concurs.

Gross

Federal

$1,772,000

$1,772,000

$550,000

$550,000

$550,000

$550,000

7. Economic Adjustments

Exec. Rec. provides funds for employee economic adjustments; includes economic adjustments for information technology. Conference Committee concurs.

Gross

IDG

Federal

Private

Local

Restricted

GF/GP

$1,873,300

5,300

876,700

7,500

10,500

438,700

$534,600

$1,873,300

5,300

876,700

7,500

10,500

438,700

$534,600

$1,873,300

5,300

876,700

7,500

10,500

438,700

$534,600

8. Grand Rapids Veterans' Home

Exec. Rec. increases $850,000 in federal Medicare funds. Conference Committee concurs, but also decreases $950,000 GF/GP for expanded federal funding that will cover more of the cost of care of some veterans at the home.

Gross

Federal

Restricted

GF/GP

$49,055,700

18,486,200

14,985,200

$15,584,300

$850,000

850,000

($100,000)

850,000

($950,000)

9. D. J. Jacobetti Veterans' Home

Exec. Rec. increases $50,000 in federal Medicare funds. Conference Committee concurs, but also decreases $300,000 GF/GP for expanded federal funding that will cover more of the cost of care of some veterans at the home.

Gross

Federal

Restricted

GF/GP

$15,836,400

5,296,900

5,776,300

$4,736,200

$50,000

50,000

($250,000)

50,000

($300,000)

10. Veterans Service Organizations

Exec. Rec. maintains current year funding prior to a $1.0 million GF/GP reduction from Executive Order 2009 - 22. Conference Committee concurs with the $1.0 million decrease and provides six months of funding for the individual VSOs. The remaining funds will be distributed to the VSOs on a special grant basis determined by the department.

Gross

GF/GP

$3,029,600

$3,029,600

$1,000,000

$1,000,000

($1,100,100)

($1,100,100)

11. Information Technology

Exec. Rec. increases $70,900 for software upgrades and decreases $400 in restricted funds for an information technology reduction. Conference Committee concurs but also decreases $100,000 GF/GP for administrative efficiencies.

Gross

Federal

Restricted

GF/GP

$1,160,400

435,500

328,200

$396,700

$47,400

18,000

13,000

$16,400

($52,600)

18,000

13,000

($83,600)

Major Boilerplate Changes From FY 2008-09

Sec. 203. Definitions/Acronyms -NEW

Adds subsections (j), (k), (l), and (m) defining VSOs.

Sec. 212. Michigan National Guard Education Assistance Program -DELETED

Eliminates this entire section allowing funding to be used for a National Guard Education Assistance Program. National Guard members can get expanded education cost coverage from the G.I. Bill and other federal sources.

Sec. 233. GF/GP Lapse Estimates -NEW

Requires the department to provide a report showing GF/GP lapse estimates at the close of the fiscal year.

Sec. 234. Unused GF/GP -NEW

Requires any lapsed GF/GP funds to be transferred to the Special Maintenance - State line item for repairing and maintaining armories.

Sec. 235. Partnerships with Armed Forces Reserve Units -NEW

Requires increased partnerships with reserve units concerning the use of facilities and other activities.

Sec. 501. Veterans Service Organizations - MODIFIED

Provides additional provisions for the VSOs and directs the department to distribute grant funding for the second half of the year on a specialized basis.

Sec. 606. Grand Rapids Veterans' Home Feasibility Study - NEW

Requires the department to prepare a feasibility study for increasing operational efficiencies.