Summary: Executive Budget Recommendation

Summary: SB 1064 (H-1)

CORRECTIONS FY 2004-05

June 7, 2004

Analyst: Marilyn B. Peterson

	FY 2003-04 YTD (as of 2/12/04)	Revised Executive May 27, 2004	Senate	House Committee	Enacted	*Difference: House from FY04 YTD*
	FY 2003-04 YTD (as of 2/12/04)	Revised Executive May 27, 2004	Senate	House Committee	Enacted	*Amount*	%
IDG/IDT	$3,253,600	$3,364,200	$3,364,200	$3,364,200		$110,600	3.4
Federal	27,798,400	9,808,000	9,808,000	7,788,100		(20,010,300)	(72.0)
Local	391,100	393,600	393,600	393,600		2,500	0.6
Private	0	0	0	0		0	0.0
Restricted	65,057,100	68,090,600	68,090,600	65,090,100		33,000	0.1
GF/GP	1,609,272,281	1,728,409,000	1,722,962,500	1,711,070,300		101,798,019	6.3
Gross	$1,705,772,481	$1,810,065,400	$1,804,618,900	$1,787,706,300		*$81,933,819*	*4.8*
FTEs	18,312.7	17,804.6	17,804.6	17,804.6		(508.1)	(2.8)

Overview

The budget for the Department of Corrections (MDOC) funds the state prison system, supervision of parolees and felony probationers, community placement of selected prisoners, and a variety of offender programs, most notably treatment and education. It also funds training of corrections officers and centralized functions of administration, research, and financial operations. Prison construction, however, is not funded through the MDOC budget, but rather through Capital Outlay.

Current-year appropriations for prisoner custody and care amount to over 80% of the total MDOC authorization, and growth in the prison population has been largely responsible for growth in the corrections spending, particularly of the state GF/GP revenues that account for nearly 95% of the current Corrections budget. Over the past two decades, prison population, inflation-adjusted Corrections GF/GP spending, and Corrections' share of total state GF/GP all have more than tripled. Over the course of 2003, however, prison population declined by about 570, to 48,887 prisoners as of December 31, 2003. Over the same period, the combined parole and probation caseload increased by over 1,420, to 72,620 offenders. Due to the impact of truth-in-sentencing, which requires a prisoner's full minimum term to be served in secure confinement, the number of prisoners in community placement (centers and electronic tether) declined from 1,132 to 470. Total MDOC supervised population at year's end was 121,977.

Summary of FY 2004-05 Major Budget Issues

Prison Changes

Executive, Senate, and Proposed House: Closes Western Wayne Correctional Facility, a women's prison in Plymouth; Huron Valley Center, currently a correctional psychiatric facility, to be re-converted to a women's prison; adjacent Huron Valley Correctional Facility to house the psychiatric facility; overall savings estimated at roughly $20 million with reduction of approximately 310 beds. Male prisoners displaced by the conversion at Huron Valley Correctional Facility to be spread throughout system, including Oaks Correctional Facility, which is to be converted from a Level V to a Level IV facility and double-bunked to gain 412 beds. Operational costs at Oaks thus to increase by $1.8 million. Oaks conversion to occur in conjunction with conversion of housing units at Ionia Maximum from Level VI to Level V, with accompanying gain of 31 beds and $1.1 million savings.

Administrative and Programmatic Reductions

Senatereduces Executive Recommendation by $20 million: $386,700 through 1% reductions to various administrative line items, $5.3 million from substance abuse testing and treatment, $5.9 million through near-elimination of proposed Hepatitis C testing and treatment line item (see below), $5.0 million from academic/vocational programs, $1.5 million through elimination of Executive's funding for development of time computation module, and $2.0 million through inclusion of negative line item for transportation efficiencies.

Proposed House partially restores Senate reductions to Hepatitis C testing and treatment, substance abuse testing and treatment, and academic/vocational programs, for a total of $8.6 million in restorations, funded through $9.6 million in reductions to worker's compensation, Michigan youth correctional facility, pharmaceutical costs, training costs, and consent decree appropriations.

Local Programs

Executive, Senate, and Proposed House: Field Operations increases of: $3.2 million for additional 31 parole/probation agents to meet rising caseload, $3.5 million for new female parolee residential program. In Community Corrections: eliminates $2.5 million Local Facility Housing program (for reimbursing locals for housing state prisoners if needed); increases probation residential center funding by $831,400 and creates $1.6 million Jail Crowding Reduction Program and $400,000 Treatment Program. Executive's associated boilerplate language not included in Senate or Proposed House.

Health Care

Original Executive Recommendation proposed $5.9 million line item for Hepatitis C testing and treatment, $279,000 of which was for increased costs of Hepatitis C pharmaceuticals; Senate eliminated all but $100 of line item; Revised Executive Recommendation reduced recommended funding to $2.3 million; Proposed House funds at half of Executive revision. Executive, Senate, and Proposed House: provides additional $932,400 for other pharmaceutical price and volume increases; figure includes adjustment for $1.0 million savings expected under revision of formulary.

Federal Funding Replacement

Executive, Senate, and Proposed House: due to depletion of federal grant in current fiscal year, replaces $18.0 million in federal funding for Youth Correctional Facility with GF/GP.

Employee-related Increases and Savings

Executive, Senate, and Proposed House increases include: $153.5 million GF/GP for economic increases for employee salaries and wages, insurances, and retirement; $12.1 million for step increases. Reductions include: 242.4 FTEs and $12.8 million savings through utilization of improved security technology; 44.0 FTEs and $859,300 savings under statewide human resources optimization; 21.8 FTEs and at least $1.4 million in savings through improved prisoner transportation (Senate and Proposed House assume total of $3.4 million in transportation savings); unspecified employee-related savings of $45.1 million GF/GP, or 5 percent of salaries.

Major Budget Changes from FY 2003-04 YTD Appropriations:	FY 2003-04 YTD (as of 2/12/04)	House Change
PRISON AND CAMP OPERATIONS *1. Close Western Wayne, Re-fit Huron Valley facilities* Executive, Senate, and Proposed House: close Western Wayne Correctional Facility, a women's prison in Plymouth; funding, beds, and FTEs associated with that prison ($24.7 million GF/GP, 778 beds, 299.5 FTEs) transferred to Inmate Housing Fund line item. Huron Valley Center, formerly a women's prison and now a correctional psychiatric facility, to be re-converted to house female prisoners; no associated changes to that line item. Adjacent Huron Valley Correctional Facility, a Level IV men's prison, to be converted to psychiatric facility; funding associated with mental health treatment program retained and transferred to Inmate Housing Fund, remainder of funding eliminated. Huron Valley prisoners to be dispersed through the system, including to Oaks Correctional Facility (see below). Net reductions of 310 beds, 279.2 FTEs, and $20.5 million.	Beds FTEs Gross Restricted GF/GP	N/A N/A N/A N/A N/A	(310) (279.2) ($20,501,600) (29,400) ($20,472,200)
*2. Convert Oaks Maximum to Double-Bunked Level IV* Executive, Senate, and Proposed House: Oaks Maximum, a Level V prison in Eastlake, converted to double-bunked Level IV. Conversion of 316 Level V beds undertaken (but unfunded) in current fiscal year; additional 96 administrative segregation beds to be converted in August 2005. Overall gain of 412 beds with additional 1.2 FTEs and $1.8 million.	Beds FTEs Gross Restricted GF/GP	900 378.6 $29,565,400 559,100 $29,506,300	412 1.2 $1,845,700 0 $1,845,700
*3. Convert Ionia Maximum Units to Level V* Executive, Senate, and Proposed House: conversion of two Level VI administrative segregation units at Ionia Maximum to Level V general population; Level VI transition unit to become Level V transition unit. Remaining two Level VI units to remain unchanged. Administrative segregation prisoners otherwise housed at I-Max to be housed elsewhere. Gain of 31 beds, reductions of 18.0 FTEs, $1.1 million.	Beds FTEs Gross Restricted GF/GP	636 359.6 $26,733,700 23,000 $26,710,700	31 (18.0) ($1,087,000) 0 ($1,087,000)
*4. Jackson Beds Full-Year Funding* Executive, Senate, and Proposed House: full-year funding for various beds in former Jackson Maximum Correctional Facility, currently attached to Egeler Correctional Facility. For 7-Block: adds 39.2 FTEs and $9.3 million for 485 beds currently receiving partial-year funding. For A and B Units: adds full-year funding costs for 240 beds in A-Unit and partial-year funding costs for 240 B-Unit beds opening in early 2005, for overall increase of 480 beds (phased-in), 58.2 FTEs, and $5.1 million.	Beds FTEs Gross GF/GP	0 0.0 $0 $0	480 97.4 $14,378,200 $14,378,200
*5. Postpone Macomb Drop-in Unit* Executive, Senate, and Proposed House: eliminate current-year's full-year funding for 240-bed Level IV drop-in unit at Macomb Correctional Facility in New Haven. Opening of unit postponed until at least FY 2005-06. Reductions of 240 beds, 39.0 FTEs, $3.6 million.	Beds FTEs Gross GF/GP	240 39.0 $3,613,200 $3,613,200	(240) (39.0) ($3,613,200) $3,613,200
*6. Camps Lehman and Tuscola* Executive, Senate, and Proposed House: provide partial-year funding for 200 beds to reopen at Camp Lehman in March 2005; 22.5 FTEs, $1.6 million. Provides partial-year funding for reopening the 100-bed Camp Tuscola annex (closed in the current fiscal year under Executive Order 2003-23) in June 2005; 14.0 FTEs, $333,300. (No FY 2004-05 FTE adjustment shown for Camp Tuscola, which has 14.0 FTEs; although the annex was closed and the funding eliminated under Executive Order, the Executive Order reduced funding only. Technically, the 14.0 FTEs remain part of the current year's authorization.)	Beds FTEs Gross GF/GP	N/A N/A N/A N/A	300 22.5 $1,885,600 $1,885,600
*7. Scott Correctional Facility* Executive, Senate, and Proposed House: fund full-year costs of additional 23 beds at Scott Correctional Facility (in Plymouth).	Beds FTEs Gross GF/GP	N/A N/A N/A N/A	23 5.2 $489,500 $489,500
*8. Youth Correctional Facility Federal Funds Replacement* Executive, Senate, and Proposed House: increase GF/GP support of the privately-owned and -operated Michigan Youth Correctional Facility in Baldwin. Formerly wholly-supported by federal Violent Offender Incarceration/Truth in Sentencing funds; anticipated depletion of that federal grant led to replacement of $1.1 million of federal funds with GF/GP in FY 2003-04. Executive adds $18.0 million GF/GP to meet adjusted full year costs in FY 2004-05. Senate concurred. Proposed House reduces funding by $150,000, to align funding with contractual per diem payment and bed count.	Beds FTEs Gross Federal GF/GP	480 1.0 $19,360,000 18,089,400 $1,270,600	0 0.0 ($239,900) (18,239,400) $17,839,400
*9. Technology Improvements/Custody Staffing Reduction* Executive, Senate, and Proposed House: eliminate 242.4 custody FTEs ( which may include guard tower positions) through utilization of improved security technology. Net savings of $12.8 million reflects $2.1 million additional funding for equipment offsetting $14.9 million savings through staffing reduction.	FTEs Gross GF/GP	N/A N/A N/A	(242.4) ($12,808,800) ($12,808,800)
*10. Prisoner Transportation* Executive eliminated 21.8 FTEs and $1.4 million due to anticipated efficiencies in prisoner transportation. Senate further included $2.0 million negative line item for "transportation efficiencies." Proposed House concurs with Senate.	FTEs Gross GF/GP	N/A N/A N/A	(21.8) ($3,413,100) ($3,413,000)
*11. Eliminate Funding for Closed Michigan Reformatory* Executive, Senate, and Proposed House: eliminate funding for the closed Michigan Reformatory, in Ionia; $813,000 and 18.0 positions eliminated from the Inmate Housing Fund. Reformatory-related funding in DOJ consent decree line transferred to Bellamy Creek Correctional Facility ($3,225,700 and 54.7 FTEs).	Beds FTEs Gross GF/GP	N/A N/A N/A N/A	0 (18.0) ($813,000) ($813,000)
*12. Prisoner Education* Executive maintained current-year funding levels for academic and vocational programs, adjusting only for bed space changes, economics, employee-related savings, and the like. Senate reduced by $5.0 million. Proposed House restores $2.5 million, half of the Senate reduction,	FTEs Gross GF/GP	424.5 $31,679,800 $31,679,800	0.0 ($2,500,000) ($2,500,000)
OFFENDER HEALTH CARE AND TREATMENT *13. Hepatitis C Testing and Treatment* Executive originally proposed new $5.9 million line item for Hepatitis C testing and treatment; following completion of seroprevalence study among prisoner intake, Revised Executive recommended $2.3 million. Senate reduced to $100 placeholder. Proposed House funds at half the amount recommended under Executive Revision.	Gross GF/GP	N/A N/A	$1,150,000 $1,150,000
*14. Pharmaceutical Costs* Executive and Senate: increase funding for pharmaceuticals exclusive of those to treat Hepatitis C by $932,400, a figure that includes $1.0 million in savings anticipated under revision of formulary. Proposed House further assumes savings of $2.0 million through privatization of pharmaceutical services and $1.6 million through statutory changes allowing re-dispensing of unused pharmaceuticals.	Gross GF/GP	N/A N/A	($2,667,600) ($2,667,600)
*15. Mental Health Program and Custody Staff* Executive, and Senate: savings of $2.6 million assumed through changes in mental health residential psychiatric program that would feature a less-expensive partial hospitalization as a transitional placement between hospitalization (currently at the Huron Valley Center) and the residential treatment program (residential psychiatric units located within various prisons). Proposed House: additional reductions of $1.0 million to mental health services costs and $500,000 to costs of associated MDOC staffing, based on historical spending and assumptions of changing staffing patterns during changeovers at Huron Valley Center and Huron Valley Men's Facility.	Gross GF/GP	N/A N/A	($4,118,500) ($4,118,500)
*16. Substance Abuse Testing and Treatment* Executive maintained current-year funding level for substance abuse testing and treatment. Senate reduced by $5.3 million. Proposed House restores $5.0 million of Senate's GF/GP funding reduction, but also recognizes loss of approximately $2.0 million in federal treatment funding	Gross Federal GF/GP	$20,070,800 2,349,300 $17,721,500	($2,270,300) (2,019,900) ($250,400)
ALTERNATIVES TO PRISON INCARCERATION *17. Female Offender Reintegration Program* Executive, Senate,and Proposed House: to reduce need for additional women's beds, Department instituted 44-bed reintegration program for female parolees in FY 2003-04, thus removing barriers to parole associated with lack of appropriate housing and programming for women. Expansion to 158 beds proposed; budget fully funds at $61 per bed per day.	Gross GF/GP	N/A N/A	$3,517,900 $3,517,900
*18. Assumed Sentencing Changes: Local Programs* Executive: assumes partial-year savings of $2.9 million due to sentencing guidelines changes expected to lower intake of short-term (less than 24 months) offenders. Impact estimated at 379 beds by end of FY 2004-05, more in succeeding years. To assist with anticipated increases in numbers of offenders retained locally, two new community programs ($400,000 Treatment Program and $1,619,600 Jail Crowding Reduction Program) plus $831,400 increase to existing probation residential program. Simultaneous elimination of $2.5 million Local Facility Housing Program, established in current year to reimburse local units of government for housing state prisoners if needed. Senate retained funding for the local programs, renaming the new programs to "Alternatives to Prison" jail crowding reduction program and "Alternatives to Prison" treatment program, and deleting associated boilerplate proposed by the Executive. Proposed House retains with $100 reductions.	Gross Restricted	$2,451,000 $2,451,000	$399,700 $399,700
*19. Parole and Probation Agents* Executive, Senate,and Proposed House: add 31 parole and probation agents to help with increasing caseloads.	FTEs Gross GF/GP	N/A N/A N/A	31.0 $2,251,900 $2,251,900
MISCELLANEOUS ADMINISTRATIVE AND PERSONNEL MATTERS *20. Administrative Reductions* Senate and Proposed House: reduce Executive Recommendation for various administrative line items by 1%.	Gross GF/GP	N/A N/A	($859,300) ($859,300)
*21. Training* Executive and Senate: added $1.3 million for training of 256 new correctional officers in FY 2004-05. Proposed House reduces by $1.0 million, based on an assumption of fewer new officer schools than assumed by Executive.	Gross GF/GP	$3,000,000 $3,000,000	$308,800 $308,800
*23. Additional Reductions* Proposed House: reduces funding for Hadix consent decree line item by $2.0 million to better align appropriation with historical spending.	Gross GF/GP	$10,784,000 $10,784,000	($2,000,000) ($2,000,000)
*24. Statewide Consolidation of Human Resources* Executive, Senate,and Proposed House: include savings attributable to statewide centralization of human resources functions.	FTEs Gross GF/GP	N/A N/A N/A	(44.0) ($386,700) ($386,700)
*25. DIT-Related Adjustments* Includes variety of adjustments related to Department of Information Technology (DIT): $720,000 for miscellaneous adjustments, $102,000 for desktop rate adjustment, ($306,800) for statewide reduction initiative, and($500,000) GF/GP fund shift. Executive also included $1.5 million for prisoner time computation module; Senate and Proposed House do not include.	Gross Restricted GF/GP	N/A N/A N/A	$515,200 500,000 $15,200
*26. Step Increases* Executive, Senate,and Proposed House: increase appropriations at 12 facilities needing additional funding due to increasing seniority of staff.	Gross GF/GP	N/A N/A	$12,092,300 $12,092,300
*27. Executive Revision: Payroll and Actuarial Adjustments* Executive Revision and Proposed House assume savings to be gained through change in method for allocating year-end payroll costs between fiscal years ($4,811,000) and due to lowered retirement needs according to recent actuarial experience study ($6,179,500).	Gross GF/GP	N/A N/A	($10,990,500) ($10,990,500)
*28. Employee-Related Savings* Executive, Senate,and Proposed House: incorporate unspecified savings applied to lines funding FTEs and totaling $46.3 million Gross, $45.1 million GF/GP.	Gross Federal Local Restricted GF/GP	N/A N/A N/A N/A N/A	($46,342,500) (42,300) (7,400) (1,236,800) ($45,056,000)
*29. Economic Adjustments* Executive, Senate,and Proposed House: include economic adjustments for salaries and wages ($61.6 million Gross, $59.9 million GF/GP), insurances ($21.2 million Gross, $20.6 million GF/GP), retirement ($75.0 million Gross, $72.9 million GF/GP), workers' compensation ($2.5 million Gross and GF/GP), and building occupancy charges ($515,100 Gross and GF/GP).	Gross Federal Local Restricted GF/GP	N/A N/A N/A N/A N/A	$154,770,100 141,300 21,700 4,179,900 $150,427,200

Major Budget Changes from FY 2003-04 YTD Appropriations:

FY 2003-04 YTD

(as of 2/12/04)

House Change

PRISON AND CAMP OPERATIONS

1. Close Western Wayne, Re-fit Huron Valley facilities

Executive, Senate, and Proposed House: close Western Wayne Correctional Facility, a women's prison in Plymouth; funding, beds, and FTEs associated with that prison ($24.7 million GF/GP, 778 beds, 299.5 FTEs) transferred to Inmate Housing Fund line item. Huron Valley Center, formerly a women's prison and now a correctional psychiatric facility, to be re-converted to house female prisoners; no associated changes to that line item. Adjacent Huron Valley Correctional Facility, a Level IV men's prison, to be converted to psychiatric facility; funding associated with mental health treatment program retained and transferred to Inmate Housing Fund, remainder of funding eliminated. Huron Valley prisoners to be dispersed through the system, including to Oaks Correctional Facility (see below).

Net reductions of 310 beds, 279.2 FTEs, and $20.5 million.

Beds

FTEs

Gross

Restricted

GF/GP

N/A

N/A

N/A

(310)

(279.2)

($20,501,600)

(29,400)

($20,472,200)

2. Convert Oaks Maximum to Double-Bunked Level IV

Executive, Senate, and Proposed House: Oaks Maximum, a Level V prison in Eastlake, converted to double-bunked Level IV. Conversion of 316 Level V beds undertaken (but unfunded) in current fiscal year; additional 96 administrative segregation beds to be converted in August 2005. Overall gain of 412 beds with additional 1.2 FTEs and $1.8 million.

Beds

FTEs

Gross

Restricted

GF/GP

900

378.6

$29,565,400

559,100

$29,506,300

412

1.2

$1,845,700

$1,845,700

3. Convert Ionia Maximum Units to Level V

Executive, Senate, and Proposed House: conversion of two Level VI administrative segregation units at Ionia Maximum to Level V general population; Level VI transition unit to become Level V transition unit. Remaining two Level VI units to remain unchanged. Administrative segregation prisoners otherwise housed at I-Max to be housed elsewhere. Gain of 31 beds, reductions of 18.0 FTEs, $1.1 million.

Beds

FTEs

Gross

Restricted

GF/GP

636

359.6

$26,733,700

23,000

$26,710,700

(18.0)

($1,087,000)

($1,087,000)

4. Jackson Beds Full-Year Funding

Executive, Senate, and Proposed House: full-year funding for various beds in former Jackson Maximum Correctional Facility, currently attached to Egeler Correctional Facility. For 7-Block: adds 39.2 FTEs and $9.3 million for 485 beds currently receiving partial-year funding. For A and B Units: adds full-year funding costs for 240 beds in A-Unit and partial-year funding costs for 240 B-Unit beds opening in early 2005, for overall increase of 480 beds (phased-in), 58.2 FTEs, and $5.1 million.

Beds

FTEs

Gross

GF/GP

0.0

480

97.4

$14,378,200

$14,378,200

5. Postpone Macomb Drop-in Unit

Executive, Senate, and Proposed House: eliminate current-year's full-year funding for 240-bed Level IV drop-in unit at Macomb Correctional Facility in New Haven. Opening of unit postponed until at least FY 2005-06. Reductions of 240 beds, 39.0 FTEs, $3.6 million.

Beds

FTEs

Gross

GF/GP

240

39.0

$3,613,200

$3,613,200

(240)

(39.0)

($3,613,200)

$3,613,200

6. Camps Lehman and Tuscola

Executive, Senate, and Proposed House: provide partial-year funding for 200 beds to reopen at Camp Lehman in March 2005; 22.5 FTEs, $1.6 million. Provides partial-year funding for reopening the 100-bed Camp Tuscola annex (closed in the current fiscal year under Executive Order 2003-23) in June 2005; 14.0 FTEs, $333,300. (No FY 2004-05 FTE adjustment shown for Camp Tuscola, which has 14.0 FTEs; although the annex was closed and the funding eliminated under Executive Order, the Executive Order reduced funding only. Technically, the 14.0 FTEs remain part of the current year's authorization.)

Beds

FTEs

Gross

GF/GP

N/A

N/A

N/A

300

22.5

$1,885,600

$1,885,600

7. Scott Correctional Facility

Executive, Senate, and Proposed House: fund full-year costs of additional 23 beds at Scott Correctional Facility (in Plymouth).

Beds

FTEs

Gross

GF/GP

N/A

N/A

N/A

5.2

$489,500

$489,500

8. Youth Correctional Facility Federal Funds Replacement

Executive, Senate, and Proposed House: increase GF/GP support of the privately-owned and -operated Michigan Youth Correctional Facility in Baldwin. Formerly wholly-supported by federal Violent Offender Incarceration/Truth in Sentencing funds; anticipated depletion of that federal grant led to replacement of $1.1 million of federal funds with GF/GP in FY 2003-04. Executive adds $18.0 million GF/GP to meet adjusted full year costs in FY 2004-05. Senate concurred. Proposed House reduces funding by $150,000, to align funding with contractual per diem payment and bed count.

Beds

FTEs

Gross

Federal

GF/GP

480

1.0

$19,360,000

18,089,400

$1,270,600

0.0

($239,900)

(18,239,400)

$17,839,400

9. Technology Improvements/Custody Staffing Reduction

Executive, Senate, and Proposed House: eliminate 242.4 custody FTEs ( which may include guard tower positions) through utilization of improved security technology. Net savings of $12.8 million reflects $2.1 million additional funding for equipment offsetting $14.9 million savings through staffing reduction.

FTEs

Gross

GF/GP

N/A

N/A

N/A

(242.4)

($12,808,800)

($12,808,800)

10. Prisoner Transportation

Executive eliminated 21.8 FTEs and $1.4 million due to anticipated efficiencies in prisoner transportation. Senate further included $2.0 million negative line item for "transportation efficiencies." Proposed House concurs with Senate.

FTEs

Gross

GF/GP

N/A

N/A

N/A

(21.8)

($3,413,100)

($3,413,000)

11. Eliminate Funding for Closed Michigan Reformatory

Executive, Senate, and Proposed House: eliminate funding for the closed Michigan Reformatory, in Ionia; $813,000 and 18.0 positions eliminated from the Inmate Housing Fund. Reformatory-related funding in DOJ consent decree line transferred to Bellamy Creek Correctional Facility ($3,225,700 and 54.7 FTEs).

Beds

FTEs

Gross

GF/GP

N/A

N/A

N/A

(18.0)

($813,000)

($813,000)

12. Prisoner Education

Executive maintained current-year funding levels for academic and vocational programs, adjusting only for bed space changes, economics, employee-related savings, and the like. Senate reduced by $5.0 million. Proposed House restores $2.5 million, half of the Senate reduction,

FTEs

Gross

GF/GP

424.5

$31,679,800

$31,679,800

0.0

($2,500,000)

($2,500,000)

OFFENDER HEALTH CARE AND TREATMENT

13. Hepatitis C Testing and Treatment

Executive originally proposed new $5.9 million line item for Hepatitis C testing and treatment; following completion of seroprevalence study among prisoner intake, Revised Executive recommended $2.3 million. Senate reduced to $100 placeholder. Proposed House funds at half the amount recommended under Executive Revision.

Gross

GF/GP

N/A

N/A

$1,150,000

$1,150,000

14. Pharmaceutical Costs

Executive and Senate: increase funding for pharmaceuticals exclusive of those to treat Hepatitis C by $932,400, a figure that includes $1.0 million in savings anticipated under revision of formulary. Proposed House further assumes savings of $2.0 million through privatization of pharmaceutical services and $1.6 million through statutory changes allowing re-dispensing of unused pharmaceuticals.

Gross

GF/GP

N/A

N/A

($2,667,600)

($2,667,600)

15. Mental Health Program and Custody Staff

Executive, and Senate: savings of $2.6 million assumed through changes in mental health residential psychiatric program that would feature a less-expensive partial hospitalization as a transitional placement between hospitalization (currently at the Huron Valley Center) and the residential treatment program (residential psychiatric units located within various prisons). Proposed House: additional reductions of $1.0 million to mental health services costs and $500,000 to costs of associated MDOC staffing, based on historical spending and assumptions of changing staffing patterns during changeovers at Huron Valley Center and Huron Valley Men's Facility.

Gross

GF/GP

N/A

N/A

($4,118,500)

($4,118,500)

16. Substance Abuse Testing and Treatment

Executive maintained current-year funding level for substance abuse testing and treatment. Senate reduced by $5.3 million. Proposed House restores $5.0 million of Senate's GF/GP funding reduction, but also recognizes loss of approximately $2.0 million in federal treatment funding

Gross

Federal

GF/GP

$20,070,800

2,349,300

$17,721,500

($2,270,300)

(2,019,900)

($250,400)

ALTERNATIVES TO PRISON INCARCERATION

17. Female Offender Reintegration Program

Executive, Senate,and Proposed House: to reduce need for additional women's beds, Department instituted 44-bed reintegration program for female parolees in FY 2003-04, thus removing barriers to parole associated with lack of appropriate housing and programming for women. Expansion to 158 beds proposed; budget fully funds at $61 per bed per day.

Gross

GF/GP

N/A

N/A

$3,517,900

$3,517,900

18. Assumed Sentencing Changes: Local Programs

Executive: assumes partial-year savings of $2.9 million due to sentencing guidelines changes expected to lower intake of short-term (less than 24 months) offenders. Impact estimated at 379 beds by end of FY 2004-05, more in succeeding years. To assist with anticipated increases in numbers of offenders retained locally, two new community programs ($400,000 Treatment Program and $1,619,600 Jail Crowding Reduction Program) plus $831,400 increase to existing probation residential program. Simultaneous elimination of $2.5 million Local Facility Housing Program, established in current year to reimburse local units of government for housing state prisoners if needed.

Senate retained funding for the local programs, renaming the new programs to "Alternatives to Prison" jail crowding reduction program and "Alternatives to Prison" treatment program, and deleting associated boilerplate proposed by the Executive. Proposed House retains with $100 reductions.

Gross

Restricted

$2,451,000

$2,451,000

$399,700

$399,700

19. Parole and Probation Agents

Executive, Senate,and Proposed House: add 31 parole and probation agents to help with increasing caseloads.

FTEs

Gross

GF/GP

N/A

N/A

N/A

31.0

$2,251,900

$2,251,900

MISCELLANEOUS ADMINISTRATIVE AND PERSONNEL MATTERS

20. Administrative Reductions

Senate and Proposed House: reduce Executive Recommendation for various administrative line items by 1%.

Gross

GF/GP

N/A

N/A

($859,300)

($859,300)

21. Training

Executive and Senate: added $1.3 million for training of 256 new correctional officers in FY 2004-05. Proposed House reduces by $1.0 million, based on an assumption of fewer new officer schools than assumed by Executive.

Gross

GF/GP

$3,000,000

$3,000,000

$308,800

$308,800

23. Additional Reductions

Proposed House: reduces funding for Hadix consent decree line item by $2.0 million to better align appropriation with historical spending.

Gross

GF/GP

$10,784,000

$10,784,000

($2,000,000)

($2,000,000)

24. Statewide Consolidation of Human Resources

Executive, Senate,and Proposed House: include savings attributable to statewide centralization of human resources functions.

FTEs

Gross

GF/GP

N/A

N/A

N/A

(44.0)

($386,700)

($386,700)

25. DIT-Related Adjustments

Includes variety of adjustments related to Department of Information Technology (DIT): $720,000 for miscellaneous adjustments, $102,000 for desktop rate adjustment, ($306,800) for statewide reduction initiative, and($500,000) GF/GP fund shift. Executive also included $1.5 million for prisoner time computation module; Senate and Proposed House do not include.

Gross

Restricted

GF/GP

N/A

N/A

$515,200

500,000

$15,200

26. Step Increases

Executive, Senate,and Proposed House: increase appropriations at 12 facilities needing additional funding due to increasing seniority of staff.

Gross

GF/GP

N/A

N/A

$12,092,300

$12,092,300

27. Executive Revision: Payroll and Actuarial Adjustments

Executive Revision and Proposed House assume savings to be gained through change in method for allocating year-end payroll costs between fiscal years ($4,811,000) and due to lowered retirement needs according to recent actuarial experience study ($6,179,500).

Gross

GF/GP

N/A

N/A

($10,990,500)

($10,990,500)

28. Employee-Related Savings

Executive, Senate,and Proposed House: incorporate unspecified savings applied to lines funding FTEs and totaling $46.3 million Gross, $45.1 million GF/GP.

Gross

Federal

Local

Restricted

GF/GP

N/A

N/A

($46,342,500)

(42,300)

(7,400)

(1,236,800)

($45,056,000)

29. Economic Adjustments

Executive, Senate,and Proposed House: include economic adjustments for salaries and wages ($61.6 million Gross, $59.9 million GF/GP), insurances ($21.2 million Gross, $20.6 million GF/GP), retirement ($75.0 million Gross, $72.9 million GF/GP), workers' compensation ($2.5 million Gross and GF/GP), and building occupancy charges ($515,100 Gross and GF/GP).

Gross

Federal

Local

Restricted

GF/GP

N/A

N/A

$154,770,100

141,300

21,700

4,179,900

$150,427,200

Major Boilerplate Changes from FY 2003-04:
*Sec. 209a. Purchase of Local Goods and Services –* *NEW* Proposed House adds language encouraging facilities to purchase local goods and services where feasible.
*Sec. 215a. Offenders Placed at Youth Correctional Facility –* NEW Proposed House calls for interagency work group to review sentencing of youth to Department of Corrections and placement of young offenders at Youth Correctional Facility.
*Sec. 219. Implementation of Employee-Related Savings –* *NEW* Senate and Proposed House: require Department to provide detailed plan on how it will implement savings to compensate for employee-related savings.
*Sec. 220. Transportation Savings – NEW* Senate and Proposed House: specify that the negative appropriation for transportation savings it to be satisfied by savings realized from efficiencies in prisoner transportation in addition to those proposed in the Executive Recommendation, and that necessary adjustments in appropriation authorizations are to be effected through legislative transfers.
*Sec. 221. Travel Expenditures– NEW* Senate and Proposed House: language generally forbids travel outside of Michigan, and requires non-essential travel expenses to be halved from prior fiscal year.
*Sec. 222. Contingency Fund Appropriations – "NEW"* Executive and Proposed House include historical language providing for authorization to spend non-GF sources of revenue that materialize during the course of the fiscal year. Not included in current year budget act or by Senate.
*Sec. 601a. Parole and Probation Agent Workloads – NEW* Proposed House calls for study and recommendations regarding field agent workloads and caseloads.
*Sec. 601b. Parole and Probation Agent Personal Information – NEW* Proposed House urges department to develop and implement procedures by which supervised offenders can timely contact their parole or probation agents without having to have access to agents' home telephone numbers or other personal information.
*Sec. 706. County Jail Reimbursement Program –* *REVISED* Executive, Senate, and Proposed House: eliminates provisions for reimbursement for jailing of felons sentenced for crimes committed before January 1, 1999 (the effective date of sentencing guidelines).
*Sec. 707. Local Facility Housing Program – DELETED* Executive, Senate, and Proposed House: delete section pertaining to Local Facility Housing Program, a $2.5 million program established in current fiscal year to reimburse local units for housing state prisoners if needed.
*Sec. 708.* Probation Detention Center – DELETED Executive, Senate, and Proposed House: delete section allocating a portion of probation residential center funds and specifying conditions of operation for a probation detention center in Detroit.
*Sec. 909. Prisoner Medications – NEW* Senate and Proposed House: adds requirement for all medications to be transported with prisoner upon his or her transfer from one correctional facility to another.
*Sec. 910. Prisoners' Retirement Benefits– NEW* Senate and Proposed House adds requirements for Department to attempt to collect reimbursement from health insurance providers for health care of prisoners who have retirement health benefits, and to report to legislature on its efforts.

Major Boilerplate Changes from FY 2003-04:

Sec. 209a. Purchase of Local Goods and Services – NEW

Proposed House adds language encouraging facilities to purchase local goods and services where feasible.

Sec. 215a. Offenders Placed at Youth Correctional Facility – NEW

Proposed House calls for interagency work group to review sentencing of youth to Department of Corrections and placement of young offenders at Youth Correctional Facility.

Sec. 219. Implementation of Employee-Related Savings – NEW

Senate and Proposed House: require Department to provide detailed plan on how it will implement savings to compensate for employee-related savings.

Sec. 220. Transportation Savings – NEW

Senate and Proposed House: specify that the negative appropriation for transportation savings it to be satisfied by savings realized from efficiencies in prisoner transportation in addition to those proposed in the Executive Recommendation, and that necessary adjustments in appropriation authorizations are to be effected through legislative transfers.

Sec. 221. Travel Expenditures– NEW

Senate and Proposed House: language generally forbids travel outside of Michigan, and requires non-essential travel expenses to be halved from prior fiscal year.

Sec. 222. Contingency Fund Appropriations – "NEW"

Executive and Proposed House include historical language providing for authorization to spend non-GF sources of revenue that materialize during the course of the fiscal year. Not included in current year budget act or by Senate.

Sec. 601a. Parole and Probation Agent Workloads – NEW

Proposed House calls for study and recommendations regarding field agent workloads and caseloads.

Sec. 601b. Parole and Probation Agent Personal Information – NEW

Proposed House urges department to develop and implement procedures by which supervised offenders can timely contact their parole or probation agents without having to have access to agents' home telephone numbers or other personal information.

Sec. 706. County Jail Reimbursement Program – REVISED

Executive, Senate, and Proposed House: eliminates provisions for reimbursement for jailing of felons sentenced for crimes committed before January 1, 1999 (the effective date of sentencing guidelines).

Sec. 707. Local Facility Housing Program – DELETED

Executive, Senate, and Proposed House: delete section pertaining to Local Facility Housing Program, a $2.5 million program established in current fiscal year to reimburse local units for housing state prisoners if needed.

Sec. 708. Probation Detention Center – DELETED

Executive, Senate, and Proposed House: delete section allocating a portion of probation residential center funds and specifying conditions of operation for a probation detention center in Detroit.

Sec. 909. Prisoner Medications – NEW

Senate and Proposed House: adds requirement for all medications to be transported with prisoner upon his or her transfer from one correctional facility to another.

Sec. 910. Prisoners' Retirement Benefits– NEW

Senate and Proposed House adds requirements for Department to attempt to collect reimbursement from health insurance providers for health care of prisoners who have retirement health benefits, and to report to legislature on its efforts.