FY 2001-02 AGRICULTURE BUDGET - S.B. 230 (S-1): COMMITTEE SUMMARY



Senate Bill 230 (S-1 as reported)

Committee: Appropriations

FY 2000-01 Year-to-Date Gross Appropriation $98,519,200
Changes from FY 2000-01 Year-to-Date:
1. Cooperative Resources Management Initiative. The budget includes funding from the Department of Natural Resources to provide grants to local conservation districts to hire resource professionals to assist landowners in the management of natural resources. 1,000,000
2. Cervid Program. The budget recognizes additional fee revenue for the implementation and administration of Public Act 190 of 2000. 163,500
3. Local Public Health Operations. The budget includes a 2% increase for the appropriation that supports local health department food service sanitation activities. 179,600
4. Agriculture Equine Industry Development Fund. The Senate replaces $1,300,000 of Agriculture Equine Industry Development Fund (AEIDF) support for the Office of Racing Commissioner (ORC) with an equal amount of State Services Fee revenue from the Michigan Gaming Control Board and re-distributes the funding to horse racing programs proportionately. 1,300,000
5. 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 Senate reduces 10 FTEs for operation of the Fair. (919,700)
6. Pesticide Program. The budget reflects increased funding for enhanced regulatory and oversight activities in the Pesticide Program. The funding is from anticipated fee increases. 225,000
7. Marketing Program. The Senate includes funding to the Michigan Sunset Coast Growers Cooperative for a feasibility study to explore the potential for expansion of the Benton Harbor fruit market. 200,000
8. Michigan Festivals. The Senate reduces funding for the Rural Development Council by $60,000 and re-directs $50,000 for a grant to the Michigan Festivals and Events Association. 0
9. Environmental Technology Research Grant. The Senate includes $100 for a grant to develop environmentally sensitive technologies. 100
10. Value-Added Grant. The Senate includes an item to provide a grant for an ethanol plant. 100
11. Orchard/Vineyard Removal. The Senate includes a $100 increase for this program. 100
12. Unclassified Salaries. The budget includes funding to provide a 2% increase. 9,500
13. Economic Adjustments. 1,529,000
14. Undesignated Budgetary Savings. The Governor included undesignated GF/GP savings of 0.5%. The Senate applies the savings to all operating lines, except Animal Industry unit. (241,600)
15. Other Changes. The budget includes other adjustments to reflect the availability of various Federal and State restricted sources of financing. 36 ,600
16. Comparison to Governor. The Senate recommendation is $1,500,300 Gross and $200,200 GF/GP over the Governor.
Total Changes $3,482,200
FY 2001-02 Senate Appropriations Subcommittee Gross Appropriation $102,001,400
FY 2001-02 AGRICULTURE BUDGET - BOILERPLATE HIGHLIGHTS
Changes from FY 2000-01 Year-to-Date:
1. Standard Sections. The bill includes the following standard sections: State spending (Sec. 201), DMB Act (Sec. 202), Definitions (Sec. 203), Civil Service 1% charge (Sec. 204), Hiring freeze (Sec. 205), Contingency funds (Sec. 206), Privatization (Sec.207), Internet reports (Sec. 208), Buy American (Sec. 209), and Deprived and depressed (Sec. 210).
2. Deleted Sections. The bill eliminates the following current-year boilerplate sections: Program reports (Sec. 216), Retention of reports (Sec. 217), Internal auditor (Sec. 218), Migrant labor housing grant to private organization (Sec. 603), Great lakes downs (Sec. 901), and Horse racing plan (Sec. 902).
3. Indemnification Payments. Removes language requiring indemnification payments for livestock killed by coyotes. (Sec. 212)
4. Budgetary Savings. The language states that budgetary savings will be the result of the hiring freeze and other savings identified by the Department and approved by the State Budget Director. Requires savings to be distributed via legislative transfers. The Senate does not include the language, instead the savings are applied to specific line items. (Sec. 208)
5. HACCP Report. Senate includes language requiring the Department to report to the Legislature on Hazard Analysis Critical Control Points implementation status. (Sec. 403)
6. Johne's and Scrapie. Senate includes language that requires the Department to use budgetary savings funding not applied to the Animal Industry Unit to respond to Johne's and Scrapie disease in Michigan livestock. (Sec. 451)
7. Orchard/Vineyard Removal. The Senate includes language that conditions the expenditure of funds for orchard/vineyard removal. (Sec. 504)
8. Migrant Housing Grants. The Senate increases grants from $4,000 to $5,000 per unit and from $16,000 to $20,000 per applicant. (Sec. 602)
9. Grown in Michigan. The language reduces the minimum grant amount from $5,000 to $2,500. (Sec. 703)
10. MEDC Liaison. The Senate includes language that requires the Department establish an account executive liaison position to coordinate agriculture promotional activities with the Michigan Economic Development Corp. (Sec. 706)
11. Value-Added Grants. Language authorizes expenditure of up to $5,000,000 from the Agricultural Development Fund pursuant to approval by the State Budget Director. (Sec. 707)
12. Draft Horse Show Grant. The Senate provides funding only to the Great Lakes Draft Horse Show at Michigan State University. (Sec. 805)
13. State Fair Appropriations. The Senate includes language prohibiting the State Fair from receiving General Fund appropriations and prohibits the Fair from exceeding its gross appropriation level. (Sec. 814)
14. AEIDF Carryforward. The Senate includes language requiring Agriculture Equine Industry Development Fund carryforward in excess of $250,000 to be appropriated via legislative transfer. (Sec. 815)
15. Race Date Cancellations. The Senate includes language conditioning the deposit of track commissions from simulcasting in the event that live race dates are canceled. (Sec. 902)
16. Horse Racing Report. The Senate includes language requiring the ORC report to the Legislature on the status of competition in the horse racing industry in Michigan. (Sec. 903)
17. ORC Complaints. The Senate includes language requiring the ORC to submit a report on complaints received by the agency. (Sec. 904)


Date Completed: 3-19-01 - Fiscal Analyst: C. Thiel