FY 2001-02 AGRICULTURE BUDGET - S.B. 230 (P.A. 53 of 2001): ENACTED WITH VETOES




FY 2000-01 Year-to-Date Gross Appropriation $103,090,600
Changes from FY 2000-01 Year-to-Date:
Items Included by the Senate and House
1. Cervid Program. Funding included for the implementation and administration of Public Act 190 of 2000, Privately Owned Cervidae Producers Marketing Act. 163,500
2. Cooperative Resources Management Initiative. Funding included from the Michigan Department of Natural Resources for a partnership that provides grants to local conservation districts to assist landowners in the management of natural resources. 1,000,000
3. Michigan State Fair. The budget reflects a reduction in spending authorization for the operation of the Michigan State Fair resulting from the new lease agreement for management of the fairgrounds in Detroit. The Conference Committee also reduced 12 FTE positions. (919,700)
4. Revenue Adjustments. The budget contains various adjustments to reflect the availability of Federal and State restricted revenue. 261,600
5. Horse Racing Programs. The budget replaces $1.3 million in horse racing revenue with casino-related revenue for support of the Office of Racing Commissioner. The horse racing revenue is re-directed to support the various horse racing programs. 1,300,000
6. Economic Adjustments. 1,538,500
Conference Agreement on Items of Difference
7. Casino Revenue Funding Shift. Per the target agreement, the budget replaces $3.5 million in GF/GP funding from various lines with an equal amount of restricted casino-related revenue. 0
8. Grant Reductions. The budget reduces various grant line items to meet the GF/GP target. (440,600)
9. Rural Development. The Senate reduced the GF/GP funding for the Rural Development Council of Michigan by $60,000. The House restored the GF/GP funding. The Conference Committee eliminated all State and Federal funding for the program. (216,100)
10 Budgetary Savings. The Senate applied the budgetary savings recommended by the Governor ($241,600) to various line items proportionately. The House maintained the savings as a lump sum to be applied via transfers. The Conference Committee increased the amount to meet the GF/GP target and requires the savings to be applied via transfers. (536,800)
11 Michigan Sunset Coast Growers. The Senate included $200,000 GF/GP for a grant to promote the Benton Harbor fruit market. The House removed the funding. The Conference Committee included Federal funding. 200,000
12 Other Adjustments. Funding for track improvements ($50,000) and adjustments for mid-year legislative transfers ($4,571,400).

* The Governor vetoed the $50,000 for Michigan Fairs and Festivals and vetoed the $25,000 for milk vending machines contained in boilerplate Sec. 404.

 (4,546,400)
Total Changes ($2,196,000)
FY 2001-02 Enacted Gross Appropriation $100,894,600
*Vetoed by the Governor
FY 2001-02 AGRICULTURE BUDGET - BOILERPLATE HIGHLIGHTS
Changes from FY 2000-01 Year-to-Date:
Items Included by the Senate and House
1. HACCP Report. The Senate and House included language requiring the Department to report to the Legislature on HACCP implementation status. (Sec. 403)
2. Migrant Labor Housing. The Senate and House increased the amounts for migrant labor housing grants, from $4,000 to $5,000 per unit, and $16,000 to $20,000 per applicant in any fiscal year. (Sec. 602)
3. MEDC Liaison. The Senate and House included language requiring the Department to designate an account liaison position to work with the Michigan Economic Development Corporation to promote Michigan agriculture. (Sec. 706)
4. Value-Added Initiatives. The Senate and House included language authorizing the Department to receive and expend up to $5.0 million from the Agricultural Development Fund for value-added initiatives pursuant to the Jullian-Stille Value-Added Act (PA 322 of 2000). Expenditures are not authorized until Treasury receives the revenue and the State Budget Director approves an allotment schedule. (Sec. 707)
5. AEIDF Carryforward. The Senate and House included language requiring the Department, fiscal agencies, and DMB to estimate the amount of carryforward revenue in the Agriculture Equine Industry Development Fund and request a transfer of revenue in excess of $250,000 in accordance with the Horse Racing Law of 1995. (Sec. 813)
Conference Agreement on Items of Difference
6. Indemnification Payments. The Senate included current-year language on indemnification payments for livestock destroyed, but removes language concerning livestock killed by coyotes and increases cap to $100,000 statutory limit. The House modified the Senate language to provide retroactive payments at 100% of fair market value for payments paid from 1/1/98 to 10/31/00. The Conference Committee concurs with the House. (Sec. 212)
7. State Fair's Manager Salary. The Conference Committee includes new language requiring a job audit of the state fair manager's position and states legislative intent that the salary be proportional to the responsibility of the position and that salary be adjusted accordingly. (Sec. 220)
8. Turkey Growers. The Conference Committee includes new language providing a grant up to $750,000 from the balance of a 1998 technology enhancement work project to support Michigan turkey growers. (Sec. 221)
9. Rural Development. The Conference Committee includes new language requiring an analysis on rural development programs prior to moving them to the Michigan Economic Development Corporation. (Sec. 222)
10. Milk Vending Machines. The House included new language requiring the Department to expend up to $25,000 to locate milk vending machines at various sites in mid-Michigan. The Conference Committee included this language. (Sec. 404)

* Governor vetoed Section 404.

11. Local Public Health Funding. The Conference Committee included new language requiring the Department, with the Department of Community Health, to have a process in place that requires a local unit of government to obtain prior approval from the Department before any reallocation or redistribution of program funds. (Sec. 405)
12. Michigan Sunset Coast Growers Cooperative. The Senate included language that provided funding to the Michigan Sunset Coast Growers Cooperative for a feasibility study to examine the potential for expansion of the Benton Harbor fruit market. The House included language requiring the Department to assist value-added initiatives in obtaining Federal funding. The Conference Committee concurs with the House language. (Sec. 708)
13. Competitive Horse Show Grant. The House included language authorizing the Department to implement a competitive horse show grant program. The Conference Committee includes modified language requiring the Department to implement a competitive horse show grant program with the $38,200 appropriation. (Sec. 814)
14. Building and Track Improvement. The Conference Committee includes new language to provide grants to the Jackson, Mt. Pleasant, and Jackson tracks for promotions, capital improvements, or operations. (Sec. 815)

Date Completed: 09-19-01 - Fiscal Analyst: C. Thiel