Summary: Executive Budget Recommendation

Summary: SB 1064 CR-1

CORRECTIONS FY 2004-05 CONFERENCE REPORT

September 7, 2004

Analyst: Marilyn B. Peterson

	FY 2003-04 YTD (as of 2/12/04)	Revised Executive May 27, 2004	Senate	House	Conference	*Difference: Conference from FY04 YTD*
	FY 2003-04 YTD (as of 2/12/04)	Revised Executive May 27, 2004	Senate	House	Conference	*Amount*	%
IDG/IDT	$3,253,600	$3,364,200	$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	8,188,100	(19,610,300)	(70.5)
Local	391,100	393,600	393,600	393,600	393,600	2,500	0.6
Private	0	0	0	0	0	0	0.0
Restricted	65,057,100	68,090,600	68,090,600	65,090,100	66,075,600	1,018,500	1.6
GF/GP	1,609,272,281	1,728,409,000	1,722,962,500	1,711,070,300	1,708,161,100	98,888,819	6.1
Gross	$1,705,772,481	$1,810,065,400	$1,804,618,900	$1,787,706,300	$1,786,182,600	*$80,410,119*	*4.7*
FTEs	18,312.7	17,804.6	17,804.6	17,804.6	17,769.8	(542.9)	(3.0)

Summary of Major Conference Issues:

Prisoner Programs:

Reduces funding for prisoner education by $1.0 million from Executive-recommended figure of $32.9 million. General fund support for substance abuse testing and treatment reduced by $750,000.

Prisoner Health Care:

Funds Hepatitis-C testing and treatment at House-passed level of $1,150,000, half the amount recommended by the Executive. Assumes pharmaceutical savings of $3.6 million, predicated on anticipated vendor pass-through savings and savings from authorization to re-dispense certain medications; House assumed same amount of savings, but based in part on privatization of pharmaceutical services, rather than vendor savings.

Facility Closures:

Recognizes savings through closure of Gilman technical rule violator center ($1.3 million), Wing Farm ($1.0 million), and Kalamazoo Center ($283,500 GF/GP).

Various Administrative Adjustments to Executive Recommendation:

Reduces funding for special maintenance by $2.5 million from Executive Recommendation; these projects will instead be funded through capital outlay. Incorporates Senate-passed savings of $2.0 million in prisoner transportation costs, and House-passed reductions of $1.3 million to worker's compensation, and $1.0 million to new employee training. Consent decree funding same as House: Hadix reduced by $2.0 million, reflecting historical spending patterns, and appropriations for mental health program reduced by $1.5 million, reflecting planned reorganization of program. Savings of 2.0 FTEs and $190,000 gained through consolidation of boot camp with Cooper Street Correctional Facility. Combined lease and operational savings of $429,400 at Youth Correctional Facility. Funding for Department of Information Technology reduced by $247,900 from the Executive Recommendation.

Major Budget Changes from FY 2003-04 YTD Appropriations:	FY 2003-04 YTD (as of 2/12/04)	Conference Change
PRISON AND CAMP OPERATIONS *1. Close Western Wayne, Re-fit Huron Valley facilities* Western Wayne Correctional Facility, a women's prison in Plymouth, to be closed; 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. Executive: same as Conference Senate: same as Conference House: same as Conference	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* 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 increases: 412 beds, 1.2 FTEs, and $1.8 million. Executive: same as Conference Senate: same as Conference House: same as Conference	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* Two Level VI administrative segregation units at Ionia Maximum to be converted 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. Executive: same as Conference Senate: same as Conference House: same as Conference	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* Provides 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. Executive: same as Conference Senate: same as Conference House: same as Conference	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* 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. Executive: same as Conference Senate: same as Conference House: same as Conference	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* 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.) Executive: same as Conference Senate: same as Conference House: same as Conference	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* Full-year costs of additional 23 beds at Scott Correctional Facility (in Plymouth). Executive: same as Conference Senate: same as Conference House: same as Conference	Beds FTEs Gross GF/GP	N/A N/A N/A N/A	23 5.2 $489,500 $489,500
*8. Youth Correctional Facility – Contract Adjustments and Federal Funds Replacement* Combined reductions of $529,400 to lease and operational line items, based on contract adjustments. Also adds GF/GP to replace federal funds lost due depletion of federal grant. Executive: included federal funds replacement, $100,000 contract adjustment Senate: same as Executive House: same as Executive, except included $250,000 contract adjustment	Beds FTEs Gross Federal GF/GP	480 1.0 $19,360,000 18,089,400 $1,270,600	0 0.0 ($529,400) (18,089,400) $17,560,000
*9. Technology Improvements/Custody Staffing Reduction* Eliminates 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. Executive: same as Conference Senate: same as Conference House: same as Conference	FTEs Gross GF/GP	N/A N/A N/A	(242.4) ($12,808,800) ($12,808,800)
*10. Prisoner Transportation* Assumes total of $3.4 million of savings through improved efficiency in prisoner transportation. Executive: eliminated 21.8 FTEs and $1.4 million due to anticipated efficiencies in prisoner transportation. Senate: same as Conference House: same as Conference	FTEs Gross GF/GP	N/A N/A N/A	(21.8) ($3,413,100) ($3,413,000)
*11. Close Wing Farm* Eliminates funding for Wing Farm, a Level I unit assigned to Parnall Correctional Facility. Executive: not included Senate: not included House: not included	Beds FTEs Gross GF/GP	N/A N/A N/A N/A	(70) (5.8) ($1,025,100) ($1,025,100)
*12. Eliminate Funding for Closed Michigan Reformatory* Eliminates 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). Executive: same as Conference Senate: same as Conference House: same as Conference	Beds FTEs Gross GF/GP	N/A N/A N/A N/A	0 (18.0) ($813,000) ($813,000)
*13. Equipment and Special Maintenance* Reduces funding for equipment and special maintenance; affected projects will instead be funded through capital outlay. Executive: increase of $2,113,200 Senate: same as Executive House: same as Executive	FTEs Gross GF/GP	0.0 $2,054,000 $2,054,000	0.0 ($386,800) ($386,800)
*14. Prisoner Education* Reduces funding for academic and vocational programs by $1.0 million. Executive maintained current-year funding levels for academic and vocational programs, adjusting only for bed space changes, economics, employee-related savings, and the like. Senatereduced by $5.0 million. House reduced by $2.5 million, half of the Senate reduction	FTEs Gross GF/GP	424.5 $31,679,800 $31,679,800	0.0 ($1,000,000) ($1,000,000)
OFFENDER HEALTH CARE AND TREATMENT *15. Hepatitis C Testing and Treatment* Funds new line item for 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 funded as $100 placeholder. House: same as Conference	Gross GF/GP	N/A N/A	$1,150,000 $1,150,000
*16. Pharmaceutical Costs* Assumes savings of $3.6 million through vendor pass-through savings and enactment of legislation to permit certain medications to be re-dispensed, and $1.0 million through revision of formulary, offset by $1,932,400 increase in funding for pharmaceuticals other than those used to treat Hepatitis C. Executive and Senate: net increase of $932,400. House: same as Conference, except savings assumed to occur through privatization of pharmaceutical services, rather than vendor pass-through savings.	Gross GF/GP	N/A N/A	($2,667,600) ($2,667,600)
*17. Substance Abuse Testing and Treatment* Reduces Gross and GF/GP by $750,400, recognizes loss of approximately $2.0 million in federal Residential Substance Abuse Treatment (RSAT) funding, coupled with $400,000 increase in federal Byrne grant funds. Executive maintained current-year funding levels for substance abuse testing and treatment. Senatereduced by $5.3 million Gross and GF/GP. House restored $5.0 million of Senate's GF/GP funding reduction, and recognized loss of RSAT funds.	Gross Federal GF/GP	$20,070,800 2,349,300 $17,721,500	($2,370,300) (1,619,900) ($750,400)
*18. Mental Health Program and Custody Staff* 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). 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. Executive and Senate: did not include the $1.5 million in savings due to reorganization House: same as Conference	Gross GF/GP	N/A N/A	($4,118,500) ($4,118,500)
ALTERNATIVES TO PRISON INCARCERATION *19. Female Offender Reintegration Program* 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; Conference fully funds at $61 per bed per day. Executive: same as Conference Senate: same as Conference House: same as Conference	Gross GF/GP	N/A N/A	$3,517,900 $3,517,900
*20. Local Programs* Increases funding for local programs. Two new local programs aimed at providing additional resources for local sanctions of comparatively low-level felons: a $400,000 treatment program and a $1,619,600 jail program. Also provides $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. Executive: same funding; program names different Senate: same funding, program names different House: same funding, except for $100 "points of difference;" program names different	Gross Restricted	$2,451,000 $2,451,000	$399,700 $399,700
*21. Parole and Probation Agents* Adds 31 parole and probation agents to help with increasing caseloads. Executive: same as Conference Senate: same as Conference House: same as Conference	FTEs Gross GF/GP	N/A N/A N/A	31.0 $2,251,900 $2,251,900
*22. Closures and Consolidations* Recognizes closure of Kalamazoo Center ($283,500 Gross, $268,500 GF/GP) and of Gilman Technical Rule Violator (TRV) Center (savings offset by expansion of Lake County TRV for net savings of 27.0 FTEs and $1,286,600 Gross and GF/GP), and consolidation of boot camp at Camp Cassidy Lake with Cooper Street Correctional Facility (saving 2.0 FTEs and $190,000). Executive: not included Senate: not included House: not included	FTEs Gross Restricted GF/GP	N/A N/A N/A N/A	(29.0) ($1,760,100) (15,000) ($1,745,100)
MISCELLANEOUS ADMINISTRATIVE AND PERSONNEL MATTERS *23. Administrative Reductions* Does not include certain administrative reductions included by Senate and House, both of which reduced Executive Recommendation for various administrative line items by 1%, for a total of $859,300.	Gross GF/GP	N/A N/A	$0 $0
*24. Worker's Compensation* Reduces funding for worker's compensation to reflect recent spending patterns. Executive: not included Senate: not included House: same as Conference	Gross GF/GP	$24,126,100 $24,126,100	($1,300,000) ($1,300,000)
*25. Training* Provides funding for training about 225 new correctional officers in FY 2004-05, a reduction from the Executive Recommendation. Executive and Senate: added $1.3 million for training of 256 new correctional officers in FY 2004-05. House same as Conference.	Gross GF/GP	$3,000,000 $3,000,000	$308,800 $308,800
*26. Hadix Consent Decree* Reduces funding for Hadix consent decree line item by $2.0 million to better align appropriation with historical spending. Executive: not included Senate: not included House: same as Conference	Gross GF/GP	$10,784,000 $10,784,000	($2,000,000) ($2,000,000)
*27. Statewide Consolidation of Human Resources* Includes savings attributable to statewide centralization of human resources functions. Executive: same as Conference Senate: same as Conference House: same as Conference	FTEs Gross GF/GP	N/A N/A N/A	(44.0) ($386,700) ($386,700)
*28. Department of Information Technology (DIT)* Includes reduction of $247,900, plus a variety of adjustments recommended by Executive: $1.5 million for prisoner time computation module, $720,000 for miscellaneous adjustments, $102,000 for desktop rate adjustment, ($306,800) for statewide reduction initiative, and $500,000 fund shift from GF/GP to parole/probation oversight fee set-aside revenue. Executive: same as Conference, except for $247,900 reduction Senate and House did not include $247,900 reduction or $1.5 million funding for prisoner time computation module.	Gross Restricted GF/GP	$12,388,800 9,000 $2,229,300	$1,767,300 500,000 $1,267,300
*29. Step Increases* Increases appropriations at 12 facilities needing additional funding due to increasing seniority of staff. Executive: same as Conference Senate: same as Conference House: same as Conference	Gross GF/GP	N/A N/A	$12,092,300 $12,092,300
*30. Executive Revision: Payroll and Actuarial Adjustments* Assumes 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). Executive: same as Conference Senate: not included House: same as Conference	Gross GF/GP	N/A N/A	($10,990,500) ($10,990,500)
*31. Employee-Related Savings* Incorporates unspecified savings applied to lines funding FTEs and totaling $46.3 million Gross, $45.1 million GF/GP. Executive: same as Conference Senate: same as Conference House: same as Conference	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)
*32. Economic Adjustments* Includes 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). Executive: same as Conference Senate: same as Conference House: same as Conference	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)

Conference Change

PRISON AND CAMP OPERATIONS

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

Western Wayne Correctional Facility, a women's prison in Plymouth, to be closed; 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.

Executive: same as Conference

Senate: same as Conference

House: same as Conference

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

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 increases: 412 beds, 1.2 FTEs, and $1.8 million.

Executive: same as Conference

Senate: same as Conference

House: same as Conference

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

Two Level VI administrative segregation units at Ionia Maximum to be converted 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.

Executive: same as Conference

Senate: same as Conference

House: same as Conference

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

Provides 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.

Executive: same as Conference

Senate: same as Conference

House: same as Conference

Beds

FTEs

Gross

GF/GP

0.0

480

97.4

$14,378,200

$14,378,200

5. Postpone Macomb Drop-in Unit

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.

Executive: same as Conference

Senate: same as Conference

House: same as Conference

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

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.)

Executive: same as Conference

Senate: same as Conference

House: same as Conference

Beds

FTEs

Gross

GF/GP

N/A

N/A

N/A

300

22.5

$1,885,600

$1,885,600

7. Scott Correctional Facility

Full-year costs of additional 23 beds at Scott Correctional Facility (in Plymouth).

Executive: same as Conference

Senate: same as Conference

House: same as Conference

Beds

FTEs

Gross

GF/GP

N/A

N/A

N/A

5.2

$489,500

$489,500

8. Youth Correctional Facility – Contract Adjustments and Federal Funds Replacement

Combined reductions of $529,400 to lease and operational line items, based on contract adjustments. Also adds GF/GP to replace federal funds lost due depletion of federal grant.

Executive: included federal funds replacement, $100,000 contract adjustment

Senate: same as Executive

House: same as Executive, except included $250,000 contract adjustment

Beds

FTEs

Gross

Federal

GF/GP

480

1.0

$19,360,000

18,089,400

$1,270,600

0.0

($529,400)

(18,089,400)

$17,560,000

9. Technology Improvements/Custody Staffing Reduction

Eliminates 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.

Executive: same as Conference

Senate: same as Conference

House: same as Conference

FTEs

Gross

GF/GP

N/A

N/A

N/A

(242.4)

($12,808,800)

($12,808,800)

10. Prisoner Transportation

Assumes total of $3.4 million of savings through improved efficiency in prisoner transportation.

Executive: eliminated 21.8 FTEs and $1.4 million due to anticipated efficiencies in prisoner transportation.

Senate: same as Conference

House: same as Conference

FTEs

Gross

GF/GP

N/A

N/A

N/A

(21.8)

($3,413,100)

($3,413,000)

11. Close Wing Farm

Eliminates funding for Wing Farm, a Level I unit assigned to Parnall Correctional Facility.

Executive: not included

Senate: not included

House: not included

Beds

FTEs

Gross

GF/GP

N/A

N/A

N/A

(70)

(5.8)

($1,025,100)

($1,025,100)

12. Eliminate Funding for Closed Michigan Reformatory

Eliminates 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).

Executive: same as Conference

Senate: same as Conference

House: same as Conference

Beds

FTEs

Gross

GF/GP

N/A

N/A

N/A

(18.0)

($813,000)

($813,000)

13. Equipment and Special Maintenance

Reduces funding for equipment and special maintenance; affected projects will instead be funded through capital outlay.

Executive: increase of $2,113,200

Senate: same as Executive

House: same as Executive

FTEs

Gross

GF/GP

0.0

$2,054,000

$2,054,000

0.0

($386,800)

($386,800)

14. Prisoner Education

Reduces funding for academic and vocational programs by $1.0 million.

Executive maintained current-year funding levels for academic and vocational programs, adjusting only for bed space changes, economics, employee-related savings, and the like.

Senatereduced by $5.0 million.

House reduced by $2.5 million, half of the Senate reduction

FTEs

Gross

GF/GP

424.5

$31,679,800

$31,679,800

0.0

($1,000,000)

($1,000,000)

OFFENDER HEALTH CARE AND TREATMENT

15. Hepatitis C Testing and Treatment

Funds new line item for 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 funded as $100 placeholder.

House: same as Conference

Gross

GF/GP

N/A

N/A

$1,150,000

$1,150,000

16. Pharmaceutical Costs

Assumes savings of $3.6 million through vendor pass-through savings and enactment of legislation to permit certain medications to be re-dispensed, and $1.0 million through revision of formulary, offset by $1,932,400 increase in funding for pharmaceuticals other than those used to treat Hepatitis C.

Executive and Senate: net increase of $932,400.

House: same as Conference, except savings assumed to occur through privatization of pharmaceutical services, rather than vendor pass-through savings.

Gross

GF/GP

N/A

N/A

($2,667,600)

($2,667,600)

17. Substance Abuse Testing and Treatment

Reduces Gross and GF/GP by $750,400, recognizes loss of approximately $2.0 million in federal Residential Substance Abuse Treatment (RSAT) funding, coupled with $400,000 increase in federal Byrne grant funds.

Executive maintained current-year funding levels for substance abuse testing and treatment.

Senatereduced by $5.3 million Gross and GF/GP.

House restored $5.0 million of Senate's GF/GP funding reduction, and recognized loss of RSAT funds.

Gross

Federal

GF/GP

$20,070,800

2,349,300

$17,721,500

($2,370,300)

(1,619,900)

($750,400)

18. Mental Health Program and Custody Staff

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). 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.

Executive and Senate: did not include the $1.5 million in savings due to reorganization

House: same as Conference

Gross

GF/GP

N/A

N/A

($4,118,500)

($4,118,500)

ALTERNATIVES TO PRISON INCARCERATION

19. Female Offender Reintegration Program

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; Conference fully funds at $61 per bed per day.

Executive: same as Conference

Senate: same as Conference

House: same as Conference

Gross

GF/GP

N/A

N/A

$3,517,900

$3,517,900

20. Local Programs

Increases funding for local programs. Two new local programs aimed at providing additional resources for local sanctions of comparatively low-level felons: a $400,000 treatment program and a $1,619,600 jail program. Also provides $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.

Executive: same funding; program names different

Senate: same funding, program names different

House: same funding, except for $100 "points of difference;" program names different

Gross

Restricted

$2,451,000

$2,451,000

$399,700

$399,700

21. Parole and Probation Agents

Adds 31 parole and probation agents to help with increasing caseloads.

Executive: same as Conference

Senate: same as Conference

House: same as Conference

FTEs

Gross

GF/GP

N/A

N/A

N/A

31.0

$2,251,900

$2,251,900

22. Closures and Consolidations

Recognizes closure of Kalamazoo Center ($283,500 Gross, $268,500 GF/GP) and of Gilman Technical Rule Violator (TRV) Center (savings offset by expansion of Lake County TRV for net savings of 27.0 FTEs and $1,286,600 Gross and GF/GP), and consolidation of boot camp at Camp Cassidy Lake with Cooper Street Correctional Facility (saving 2.0 FTEs and $190,000).

Executive: not included

Senate: not included

House: not included

FTEs

Gross

Restricted

GF/GP

N/A

N/A

N/A

(29.0)

($1,760,100)

(15,000)

($1,745,100)

MISCELLANEOUS ADMINISTRATIVE AND PERSONNEL MATTERS

23. Administrative Reductions

Does not include certain administrative reductions included by Senate and House, both of which reduced Executive Recommendation for various administrative line items by 1%, for a total of $859,300.

Gross

GF/GP

N/A

N/A

24. Worker's Compensation

Reduces funding for worker's compensation to reflect recent spending patterns.

Executive: not included

Senate: not included

House: same as Conference

Gross

GF/GP

$24,126,100

$24,126,100

($1,300,000)

($1,300,000)

25. Training

Provides funding for training about 225 new correctional officers in FY 2004-05, a reduction from the Executive Recommendation.

Executive and Senate: added $1.3 million for training of 256 new correctional officers in FY 2004-05.

House same as Conference.

Gross

GF/GP

$3,000,000

$3,000,000

$308,800

$308,800

26. Hadix Consent Decree

Reduces funding for Hadix consent decree line item by $2.0 million to better align appropriation with historical spending.

Executive: not included

Senate: not included

House: same as Conference

Gross

GF/GP

$10,784,000

$10,784,000

($2,000,000)

($2,000,000)

27. Statewide Consolidation of Human Resources

Includes savings attributable to statewide centralization of human resources functions.

Executive: same as Conference

Senate: same as Conference

House: same as Conference

FTEs

Gross

GF/GP

N/A

N/A

N/A

(44.0)

($386,700)

($386,700)

28. Department of Information Technology (DIT)

Includes reduction of $247,900, plus a variety of adjustments recommended by Executive: $1.5 million for prisoner time computation module, $720,000 for miscellaneous adjustments, $102,000 for desktop rate adjustment, ($306,800) for statewide reduction initiative, and $500,000 fund shift from GF/GP to parole/probation oversight fee set-aside revenue.

Executive: same as Conference, except for $247,900 reduction

Senate and House did not include $247,900 reduction or $1.5 million funding for prisoner time computation module.

Gross

Restricted

GF/GP

$12,388,800

9,000

$2,229,300

$1,767,300

500,000

$1,267,300

29. Step Increases

Increases appropriations at 12 facilities needing additional funding due to increasing seniority of staff.

Executive: same as Conference

Senate: same as Conference

House: same as Conference

Gross

GF/GP

N/A

N/A

$12,092,300

$12,092,300

30. Executive Revision: Payroll and Actuarial Adjustments

Assumes 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).

Executive: same as Conference

Senate: not included

House: same as Conference

Gross

GF/GP

N/A

N/A

($10,990,500)

($10,990,500)

31. Employee-Related Savings

Incorporates unspecified savings applied to lines funding FTEs and totaling $46.3 million Gross, $45.1 million GF/GP.

Executive: same as Conference

Senate: same as Conference

House: same as Conference

Gross

Federal

Local

Restricted

GF/GP

N/A

N/A

($46,342,500)

(42,300)

(7,400)

(1,236,800)

($45,056,000)

32. Economic Adjustments

Includes 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).

Executive: same as Conference

Senate: same as Conference

House: same as Conference

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. 219. Implementation of Employee-Related Savings –* *NEW* Requires Department to provide detailed plan on how it will implement savings to compensate for employee-related savings. Executive: not included Senate: same as Conference House: same as Conference
*Sec. 220. Transportation Savings – NEW* Specifies 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. Executive: not included Senate: same as Conference House: same as Conference
*Sec. 221. Travel Expenditures– NEW* Adds language restricting employee travel outside of the State of Michigan House of Representatives Executive: not included Senate: restrictions included, different language House: same as Senate
*Sec. 601. Parole and Probation Agent Workloads – NEW* Requires study and recommendations regarding field agent workloads and caseloads. Executive: not included Senate: not included House: same as Conference
*Sec. 607. Parole and Probation Agent Personal Information – NEW* 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. Executive: not included Senate: not included House: same as Conference
*Sec. 706. County Jail Reimbursement Program –* *REVISED* Eliminates provisions for reimbursement for jailing of felons sentenced for crimes committed before January 1, 1999 (the effective date of sentencing guidelines). Executive: same as Conference Senate: same as Conference House: same as Conference
*Sec. 707. Local Facility Housing Program – DELETED* Deletes 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. Executive: same as Conference Senate: same as Conference House: same as Conference
*Sec. 708.* Probation Detention Center – DELETED Deletes section allocating a portion of probation residential center funds and specifying conditions of operation for a probation detention center in Detroit. Executive: same as Conference Senate: same as Conference House: same as Conference
*Sec. 909. Prisoner Medications – NEW* Adds requirement for all medications to be transported with prisoner upon his or her transfer from one correctional facility to another. Executive: not included Senate: same as Conference House: same as Conference
*Sec. 910. Prisoners' Retirement Benefits– NEW* 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. Executive: not included Senate: same as Conference House: same as Conference
*Sec. 1011. Braille Transcription Program– NEW* Adds requirement for Department maintain the Michigan Braille transcribing service at its current location in the Jackson complex. Executive: not included Senate: not included House: same as Conference

Major Boilerplate Changes from FY 2003-04:

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

Requires Department to provide detailed plan on how it will implement savings to compensate for employee-related savings.

Executive: not included

Senate: same as Conference

House: same as Conference

Sec. 220. Transportation Savings – NEW

Specifies 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.

Executive: not included

Senate: same as Conference

House: same as Conference

Sec. 221. Travel Expenditures– NEW

Adds language restricting employee travel outside of the State of Michigan House of Representatives

Executive: not included

Senate: restrictions included, different language

House: same as Senate

Sec. 601. Parole and Probation Agent Workloads – NEW

Requires study and recommendations regarding field agent workloads and caseloads.

Executive: not included

Senate: not included

House: same as Conference

Sec. 607. Parole and Probation Agent Personal Information – NEW

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.

Executive: not included

Senate: not included

House: same as Conference

Sec. 706. County Jail Reimbursement Program – REVISED

Eliminates provisions for reimbursement for jailing of felons sentenced for crimes committed before January 1, 1999 (the effective date of sentencing guidelines).

Executive: same as Conference

Senate: same as Conference

House: same as Conference

Sec. 707. Local Facility Housing Program – DELETED

Deletes 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.

Executive: same as Conference

Senate: same as Conference

House: same as Conference

Sec. 708. Probation Detention Center – DELETED

Deletes section allocating a portion of probation residential center funds and specifying conditions of operation for a probation detention center in Detroit.

Executive: same as Conference

Senate: same as Conference

House: same as Conference

Sec. 909. Prisoner Medications – NEW

Adds requirement for all medications to be transported with prisoner upon his or her transfer from one correctional facility to another.

Executive: not included

Senate: same as Conference

House: same as Conference

Sec. 910. Prisoners' Retirement Benefits– NEW

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.

Executive: not included

Senate: same as Conference

House: same as Conference

Sec. 1011. Braille Transcription Program– NEW

Adds requirement for Department maintain the Michigan Braille transcribing service at its current location in the Jackson complex.

Executive: not included

Senate: not included

House: same as Conference