Summary: Executive Budget Recommendation

Floor Substitute Summary

CAPITAL OUTLAY/Supplemental

FY 2004-05 House Bill 5510 (H-1)

Analyst: Al Valenzio

	FY 2003-04 YTDD *(as of 8/20/04) )**					*Difference: JCOS* *from FY 2003-04 YTD*
	FY 2003-04 YTDD *(as of 8/20/04) )**	Executive (Revised)*	JCOS*	House Committee*	House Passed*	Amount*	%
IDG/IDT	$2,000,000	$2,000,000	$2,000,000			$0	0.0
Federal	206,952,000	215,380,200	215,380,200			8,428,200	4.1
Local	22,789,600	42,790,000	22,790,000			400	- -
Private	0	0	0			0	0.0
Restricted	66,400,900	49,147,500	43,147,500			(23,253,400)	(35.0)
GF/GP	2,000,500	2,000,000	6,193,800			4,193,300	209.6
Gross	$300,143,000	$311,317,700	$289,511,500			*($10,631,500)*	*(3.5)*

*Does not include SBA Rent appropriations

Overview

The Michigan Capital Outlay process encompasses the budgetary and administrative functions devoted to the financing and planning for the acquisition, construction/renovation, and maintenance of facilities used by a state agency, public university, or community college. General operational practices and procedures are contained in the Management and Budget Act (1984 PA 431), the State Building Authority Act (1964 PA 183), the annual Capital Outlay Appropriations Act (2003 PA 193), and the formal policies of the Joint Capital Outlay Subcommittee (JCOS). Act 431 contains numerous oversight and approval action steps that define the respective roles of the Executive and Legislative Branches.

Most major state-owned facility renovations and new construction projects are financed by the State Building Authority (SBA). This is accomplished through the issuance of revenue bonds. Debt service on these bonds is provided annually in the Capital Outlay budget bill’s SBA rent line items. Rent is often referred to as “true” rent because it is based on the facility’s economic or market value. The SBA has a statutory bonded indebtedness ceiling, currently set at $2.7 billion.

Summary of FY 2004-05 Major Budget Issues

State Building Authority Rent

Included is a funding shift from the CMRS Emergency Telephone Fund of $6 million to GF/GP monies.

Military Construction

Included are authorizations to renovate over 190,000 sq. ft. of space at a cost of $13 million at the Baker-Olin complex to consolidate military administrative and maintenance staffs; and, $18.5 million to construct a new company headquarters building at Camp Grayling. Federal monies provide all but $500,000 of this financing.

Department of Transportation Facilities

State Trunkline Fund monies will finance a new Houghton maintenance garage at $2.2 million and, $1.8 million to complete the Atlanta maintenance garage expansion.

State Agency Major Special Maintenance

Per target agreement, all $2 million of GF/GP appropriations have been eliminated.

Budget Changes from FY 2003-04 YTD Appropriations:	FY 2003-04 YTD (as of 8/20/04)	JCOS Change
1. DEPARTMENT OF MANAGEMENT AND BUDGET *a. Major Special Maintenance* The recommendation is that GF/GP appropriations for special maintenance for the departments of Corrections, Community Health, State Police, Management and Budget, and the FIA be transferred to a single undesignated line item. · Corrections, ($711,700) · Management and Budget, ($244,100) · Family Independence Agency, ($188,400) · Community Health, ($171,300) · State Police, ($87,800) It would then be DMB policy to only expend funds for emergency repairs that involve health and safety issues. This will be the third year that this policy is in effect regardless of line item designation. Per target agreements, the JCOS recommends elimination of GF/GP items.	Gross IDG Restricted GF/GP	$5,403,300 2,000,000 2,000,000 $1,403,300	($2,603,300) 0 (1,200,000) ($1,403,300)
*b. Grant toMichigan* InternationalSpeedway Provides funds for the pedestrian access project. The JCOS recommends** appropriating these funds.	Gross Restricted	$0 0	$1,000,000 1,000,000
*c. Grant toDetroit* Provides funds for infrastructure repairs, demolition and major special maintenance relating to preparations for the 2005 major league all-star baseball game to be held atComericaPark. The JCOS recommends** appropriating these funds.	Gross Restricted	$0 0	$1,000,000 1,000,000
2. DEPARTMENT OF MILITARY AND VETERANS AFFAIRS *a. Construction Authorizations* · Camp Grayling, new company headquarters building, $18,500,000 (100% Federal) · North Lansing (Baker-Olin) complex renovations for administrative and maintenance staffs, $13,000,000 (96% Federal/4% State) · Camp Grayling, new machine gun range, $2,000,000 (100% federal). · Grand Rapids Veterans Home, life-safety renovations, $1,134,000 (65% Federal/35% State) · Jacobetti Veterans Home, life-safety renovations, $1,232,500 (65% Federal/35% State)	Gross Federal Restricted	$0 0 0	$35,866,500 34,538,200 1,328,300
*b. Army Aviation Support Facility* The budget provides final phase funding for construction of a new 110,500 sq. ft. helicopter support/maintenance/storage facility at Grand Ledge. More than 98% of the cost will be funded by federal monies. The Department anticipates receiving up to 22 additional Blackhawk helicopters requiring a new support facility.	Gross Federal Restricted	$20,800,000 20,460,000 340,000	($11,600,000) (11,260,000) (340,000)
3. DEPARTMENT OF NATURAL RESOURCES *a. Boating Program* *Eliminate One-Time Construction Authorizations* · Trout Lake, boating access site, $310,000 · Traverse City, boating access site, $135,000 · South Haven, marina dock system improvements, $625,000 · Harrisville, restroom/shower building, $600,000 · Detroit, St. Aubin Marina improvements, $1,000,000.	Gross Restricted	$2,670,000 2,670,000	($2,670,000) (2,670,000)
*b. Boating Program, State Boating Access Sites* Crystal Lake Boating Access Site Continuing appropriation to construct a new boating access site on this lake in Benzie County. The total project cost is now estimated at $1.4 million.	Gross Restricted	$550,000 550,000	($350,000) (350,000)
*c. Boating Program, Local Boating Access Sites* Kollen Park Boating Access Site, Grant-In-Aid Provide equally matching state funds for the relocation of this BAS.	Gross Restricted	$0 0	$650,000 650,000
*d. Boating Program, State Boating Facilities* Field Initiatives This provides a lump sum account to support small to medium sized projects at state-owned boating access sites and harbors and docks. Anticipated projects include: · Cheboygan Forks, new boating access site, $410,000 · Fairhaven, access site renovations, $500,000 · Jasper Dairy Road, access site renovations, $300,000 · Bergland-Ontonagon, access site renovations, $200,000 · SaginawRiver, access site ramp and dredging, $100,000 · Lump sum contingency account, $490,000.	Gross Restricted	$0 0	$2,000,000 2,000,000
*e. Boating Program, Local Harbors & Docks* St. Clair Marina Rehabilitation, Grant-In-Aid Provides for federal matching funds to rehabilitate and upgrade this 40-year old marina. Apparently, the docking structure is rotting and needs to be replaced and the facility is not ADA compliant.	Gross Federal	$0 0	$3,000,000 3,000,000
*f. Boating Program, Local Harbors & Docks* Charlevoix Marina Expansion, Grant-In-Aid Provide equally matching state funds for the expansion of this great lakes marina and replacing the existing seawall and dock. Project also entails construction of a new restroom/shower building and for utility upgrades.	Gross Restricted	$0 0	$1,000,000 1,000,000
*g. Boating Program, Local Harbors & Docks* Naubinway Marina Rehabilitation, Grant-In-Aid Provide equally matching state funds for the replacement of docks and pilings, a new ice suppression system, and harbor dredging.	Gross Restricted	$0 0	$300,000 300,000
*h. Boating Program,LocalHarbors* *& Docks* St. Ignace Lighthouse/Structure Relocation , Grant-In-Aid Provide funds to construct a concrete base and re-assemble a lighthouse that was recently gifted to the city from the MDOT. The JCOS recommends appropriating these funds.	Gross Restricted	$0 0	$100,000 100,000
*i. Boating Program,StateHarbors* *& Docks* Infrastructure Improvements & Engineering Studies Lump sum account for infrastructure improvements and engineering studies. These monies are used for preventive and special maintenance, electrical/utility upgrades, and engineering work at state-owned harbors and docks along the great lakes. The JCOS recommends a decrease of $100,000 from the Executive recommendation.	Gross Restricted	$880,000 880,000	$770,000 770,000
*j. Boating Program,LocalHarbors* *& Docks* Infrastructure Improvements & Engineering Studies Lump sum account for grants-in-aid to local units for infrastructure improvements and engineering studies. These monies are used for preventive and special maintenance, electrical/utility upgrades, and engineering work at locally owned harbors and docks along the great lakes.	Gross Restricted	$400,000 400,000	$700,000 700,000
4. DEPARTMENT OF TRANSPORTATION *a. Buildings and Facilities* *Eliminate One-Time Construction Authorizations* · Detroit, Transportation Service Center, $3,300,000 · Gaylord, Regional Office Building, $1,800,000 · L’Anse, new equipment storage building, $815,000 · New Buffalo Welcome Center, water/sewer, $500,000 · Mackinac Island, British Landing Dock, $130,000.	Gross Restricted	$6,545,000 6,545,000	($6,545,000) (6,545,000)
*b. Airport Safety and Protection Plan* *State Aeronautics Fund* Recommendation is to maintain the FY 2004 local funding level and also provide a 6% increase for State matching funds to support security/general improvement projects at more than 100 local and State airports.	Gross Federal Local Restricted	$200,889,600 160,000,000 22,789,600 18,100,000	$1,156,600 0 400 1,156,200
*c. Buildings and Facilities* *New Houghton Maintenance Garage* Authorize the construction of a new 22,000 sq. ft. facility to house MDOT employees and equipment. Houghton County is no longer maintaining the state trunkline in that county.	Gross Restricted	$0 0	$2,230,000 2,230,000
*d. Buildings and Facilities* *Mio Maintenance Garage Renovation/Expansion* Authorize the construction of a building addition and renovation of the existing maintenance facility.	Gross Restricted	$0 0	$1,471,000 1,471,000
*e. Buildings and Facilities* *Atlanta Maintenance Garage Renovation/Expansion, Phase II* Final phase funding for expanding the Atlanta Maintenance Garage due to the re-location of the Alpena and Hillman crews, equipment, supplies, and materials.	Gross Restricted	$550,000 550,000	$1,826,000 1,826,000
*f. Buildings and Facilities* *Aeronautics Facility Security* Authorizes renovations/repairs for the facility apron, roof, parking lot, and security improvements.	Gross Restricted	$0 0	$400,000 400,000
*g. Buildings and Facilities* *Equipment Storage Buildings* Allows for the construction various sized buildings as follows: · Brighton cold storage building, $350,000 · Atlanta cold storage building, $300,000 · L’Anse bulk material facility, $200,000 · Detroit electronic equipment maintenance facility, $100,000 · Bay County pole building, $56,000 The JCOS recommends appropriating the above named projects as line items.	Gross Restricted	$0 0	$1,006,000 1,006,000
*h. Buildings and Facilities* *Salt Storage Buildings, Contract Agencies* Authorizes an additional $500,000 to continue constructing salt and sand/salt mixture storage buildings, and brine run-off control systems for county and municipal maintenance garages across the state. The MDOT finances a portion of these costs depending on how much of the state trunkline the county or city maintains.	Gross Restricted	$1,400,000 1,400,000	$500,000 500,000
*i. Buildings and Facilities* Reroof MDOT Facilities, Fence MDOT Properties, etc. These funds will be used for completing site development of the new Detroit Maintenance Garage that was originally authorized for construction in FY 2001. The JCOS recommends appropriating the above project as a line item at the full $530,000.	Gross Restricted	$265,000 265,000	$265,000 265,000
5. *STATE* *BUILDING* *AUTHORITY RENT/GRANTS* *a. State Building Authority Rent – Funding Shift* The CMRS Emergency Telephone Fund is not a viable funding source for rent payments for the State Police radio towers and equipment. A shift back to the General Fund is recommended per the target agreement.	Gross Restricted GF/GP	NA	$0 (6,000,000) $6,000,000
b. *Grant to Lake Superior State University* Per target agreements, a grant to LSSU for Infrastructure, Technology, Equipment and Maintenance (ITEM) is provided.	Gross GF/GP	$0 $0	$192,700 $192,700
*6. STATE AGENCY, COMMUNITY COLLEGE, AND UNIVERSITY PLANNING PROJECTS* *a. Planning Project Authorizations* · Alpena CC, Instructional Addition/Renovations Project · Bay De Noc CC, New West Campus Facility · Lansing CC, VocationalTechCenter · North Central, University andScienceCenter · SW Michigan College, Information Tech Center · West Shore CC, NewStudentLearningCenter · CMU, Education Building Project · FSU, Optometry Building Project · LSSU, South Hall Addition and Renovations Project · WMU, Brown Building Renovations The JCOS recommends these planning authorizations. Upon enactment the institutions can hire professionals to do programming and develop schematic/preliminary planning documents.	Gross GF/GP	$0 $0	$1,000 $1,000
*7. STATE BUILDING AUTHORITY FINANCED CONSTRUCTION PROJECTS* *a. Eliminate One-Time Construction Authorizations* · Kinross Correctional Facility, New Power Plant, $100 · Riverside Correctional Facility, Power Plant Automation, $100 · HuronValley Correctional Facility, Food Service Addition & Renovations, $100 · Capitol Complex Renovations, $100 · KelloggCommunity College –Roll Building Renovations, $100 The JCOS recommends cost and construction authorizations for the Glen Oaks CC Science Building renovation project. This is a $3.2 million project with the financing split evenly between the State and College.	Gross GF/GP	$500 $500	($400) ($400)

Budget Changes from FY 2003-04 YTD Appropriations:

FY 2003-04 YTD

(as of 8/20/04)

JCOS Change

1. DEPARTMENT OF MANAGEMENT AND BUDGET

a. Major Special Maintenance

The recommendation is that GF/GP appropriations for special maintenance for the departments of Corrections, Community Health, State Police, Management and Budget, and the FIA be transferred to a single undesignated line item.

· Corrections, ($711,700)

· Management and Budget, ($244,100)

· Family Independence Agency, ($188,400)

· Community Health, ($171,300)

· State Police, ($87,800)

It would then be DMB policy to only expend funds for emergency repairs that involve health and safety issues. This will be the third year that this policy is in effect regardless of line item designation.

Per target agreements, the JCOS recommends elimination of GF/GP items.

Gross

IDG

Restricted

GF/GP

$5,403,300

2,000,000

$1,403,300

($2,603,300)

(1,200,000)

($1,403,300)

b. Grant toMichigan InternationalSpeedway

Provides funds for the pedestrian access project.

The JCOS recommends appropriating these funds.

Gross

Restricted

$1,000,000

1,000,000

c. Grant toDetroit

Provides funds for infrastructure repairs, demolition and major special maintenance relating to preparations for the 2005 major league all-star baseball game to be held atComericaPark.

The JCOS recommends appropriating these funds.

Gross

Restricted

$1,000,000

1,000,000

2. DEPARTMENT OF MILITARY AND VETERANS AFFAIRS

a. Construction Authorizations

· Camp Grayling, new company headquarters building, $18,500,000 (100% Federal)

· North Lansing (Baker-Olin) complex renovations for administrative and maintenance staffs, $13,000,000 (96% Federal/4% State)

· Camp Grayling, new machine gun range, $2,000,000 (100% federal).

· Grand Rapids Veterans Home, life-safety renovations, $1,134,000 (65% Federal/35% State)

· Jacobetti Veterans Home, life-safety renovations, $1,232,500 (65% Federal/35% State)

Gross

Federal

Restricted

$35,866,500

34,538,200

1,328,300

b. Army Aviation Support Facility

The budget provides final phase funding for construction of a new 110,500 sq. ft. helicopter support/maintenance/storage facility at Grand Ledge. More than 98% of the cost will be funded by federal monies. The Department anticipates receiving up to 22 additional Blackhawk helicopters requiring a new support facility.

Gross

Federal

Restricted

$20,800,000

20,460,000

340,000

($11,600,000)

(11,260,000)

(340,000)

3. DEPARTMENT OF NATURAL RESOURCES

a. Boating Program

Eliminate One-Time Construction Authorizations

· Trout Lake, boating access site, $310,000

· Traverse City, boating access site, $135,000

· South Haven, marina dock system improvements, $625,000

· Harrisville, restroom/shower building, $600,000

· Detroit, St. Aubin Marina improvements, $1,000,000.

Gross

Restricted

$2,670,000

2,670,000

($2,670,000)

(2,670,000)

b. Boating Program, State Boating Access Sites

Crystal Lake Boating Access Site

Continuing appropriation to construct a new boating access site on this lake in Benzie County. The total project cost is now estimated at $1.4 million.

Gross

Restricted

$550,000

550,000

($350,000)

(350,000)

c. Boating Program, Local Boating Access Sites

Kollen Park Boating Access Site, Grant-In-Aid

Provide equally matching state funds for the relocation of this BAS.

Gross

Restricted

$650,000

650,000

d. Boating Program, State Boating Facilities

Field Initiatives

This provides a lump sum account to support small to medium sized projects at state-owned boating access sites and harbors and docks. Anticipated projects include:

· Cheboygan Forks, new boating access site, $410,000

· Fairhaven, access site renovations, $500,000

· Jasper Dairy Road, access site renovations, $300,000

· Bergland-Ontonagon, access site renovations, $200,000

· SaginawRiver, access site ramp and dredging, $100,000

· Lump sum contingency account, $490,000.

Gross

Restricted

$2,000,000

2,000,000

e. Boating Program, Local Harbors & Docks

St. Clair Marina Rehabilitation, Grant-In-Aid

Provides for federal matching funds to rehabilitate and upgrade this 40-year old marina. Apparently, the docking structure is rotting and needs to be replaced and the facility is not ADA compliant.

Gross

Federal

$3,000,000

3,000,000

f. Boating Program, Local Harbors & Docks

Charlevoix Marina Expansion, Grant-In-Aid

Provide equally matching state funds for the expansion of this great lakes marina and replacing the existing seawall and dock. Project also entails construction of a new restroom/shower building and for utility upgrades.

Gross

Restricted

$1,000,000

1,000,000

g. Boating Program, Local Harbors & Docks

Naubinway Marina Rehabilitation, Grant-In-Aid

Provide equally matching state funds for the replacement of docks and pilings, a new ice suppression system, and harbor dredging.

Gross

Restricted

$300,000

300,000

h. Boating Program,LocalHarbors & Docks

St. Ignace Lighthouse/Structure Relocation , Grant-In-Aid

Provide funds to construct a concrete base and re-assemble a lighthouse that was recently gifted to the city from the MDOT.

The JCOS recommends appropriating these funds.

Gross

Restricted

$100,000

100,000

i. Boating Program,StateHarbors & Docks

Infrastructure Improvements & Engineering Studies

Lump sum account for infrastructure improvements and engineering studies. These monies are used for preventive and special maintenance, electrical/utility upgrades, and engineering work at state-owned harbors and docks along the great lakes.

The JCOS recommends a decrease of $100,000 from the Executive recommendation.

Gross

Restricted

$880,000

880,000

$770,000

770,000

j. Boating Program,LocalHarbors & Docks

Infrastructure Improvements & Engineering Studies

Lump sum account for grants-in-aid to local units for infrastructure improvements and engineering studies. These monies are used for preventive and special maintenance, electrical/utility upgrades, and engineering work at locally owned harbors and docks along the great lakes.

Gross

Restricted

$400,000

400,000

$700,000

700,000

4. DEPARTMENT OF TRANSPORTATION

a. Buildings and Facilities

Eliminate One-Time Construction Authorizations

· Detroit, Transportation Service Center, $3,300,000

· Gaylord, Regional Office Building, $1,800,000

· L’Anse, new equipment storage building, $815,000

· New Buffalo Welcome Center, water/sewer, $500,000

· Mackinac Island, British Landing Dock, $130,000.

Gross

Restricted

$6,545,000

6,545,000

($6,545,000)

(6,545,000)

b. Airport Safety and Protection Plan

State Aeronautics Fund

Recommendation is to maintain the FY 2004 local funding level and also provide a 6% increase for State matching funds to support security/general improvement projects at more than 100 local and State airports.

Gross

Federal

Local

Restricted

$200,889,600

160,000,000

22,789,600

18,100,000

$1,156,600

400

1,156,200

c. Buildings and Facilities

New Houghton Maintenance Garage

Authorize the construction of a new 22,000 sq. ft. facility to house MDOT employees and equipment. Houghton County is no longer maintaining the state trunkline in that county.

Gross

Restricted

$2,230,000

2,230,000

d. Buildings and Facilities

Mio Maintenance Garage Renovation/Expansion

Authorize the construction of a building addition and renovation of the existing maintenance facility.

Gross

Restricted

$1,471,000

1,471,000

e. Buildings and Facilities

Atlanta Maintenance Garage Renovation/Expansion, Phase II

Final phase funding for expanding the Atlanta Maintenance Garage due to the re-location of the Alpena and Hillman crews, equipment, supplies, and materials.

Gross

Restricted

$550,000

550,000

$1,826,000

1,826,000

f. Buildings and Facilities

Aeronautics Facility Security

Authorizes renovations/repairs for the facility apron, roof, parking lot, and security improvements.

Gross

Restricted

$400,000

400,000

g. Buildings and Facilities

Equipment Storage Buildings

Allows for the construction various sized buildings as follows:

· Brighton cold storage building, $350,000

· Atlanta cold storage building, $300,000

· L’Anse bulk material facility, $200,000

· Detroit electronic equipment maintenance facility, $100,000

· Bay County pole building, $56,000

The JCOS recommends appropriating the above named projects as line items.

Gross

Restricted

$1,006,000

1,006,000

h. Buildings and Facilities

Salt Storage Buildings, Contract Agencies

Authorizes an additional $500,000 to continue constructing salt and sand/salt mixture storage buildings, and brine run-off control systems for county and municipal maintenance garages across the state. The MDOT finances a portion of these costs depending on how much of the state trunkline the county or city maintains.

Gross

Restricted

$1,400,000

1,400,000

$500,000

500,000

i. Buildings and Facilities

Reroof MDOT Facilities, Fence MDOT Properties, etc.

These funds will be used for completing site development of the new Detroit Maintenance Garage that was originally authorized for construction in FY 2001.

The JCOS recommends appropriating the above project as a line item at the full $530,000.

Gross

Restricted

$265,000

265,000

$265,000

265,000

5. STATE BUILDING AUTHORITY RENT/GRANTS

a. State Building Authority Rent – Funding Shift

The CMRS Emergency Telephone Fund is not a viable funding source for rent payments for the State Police radio towers and equipment. A shift back to the General Fund is recommended per the target agreement.

Gross

Restricted

GF/GP

(6,000,000)

$6,000,000

b. Grant to Lake Superior State University

Per target agreements, a grant to LSSU for Infrastructure, Technology, Equipment and Maintenance (ITEM) is provided.

Gross

GF/GP

$192,700

$192,700

6. STATE AGENCY, COMMUNITY COLLEGE, AND UNIVERSITY PLANNING PROJECTS

a. Planning Project Authorizations

· Alpena CC, Instructional Addition/Renovations Project

· Bay De Noc CC, New West Campus Facility

· Lansing CC, VocationalTechCenter

· North Central, University andScienceCenter

· SW Michigan College, Information Tech Center

· West Shore CC, NewStudentLearningCenter

· CMU, Education Building Project

· FSU, Optometry Building Project

· LSSU, South Hall Addition and Renovations Project

· WMU, Brown Building Renovations

The JCOS recommends these planning authorizations. Upon enactment the institutions can hire professionals to do programming and develop schematic/preliminary planning documents.

Gross

GF/GP

$1,000

$1,000

7. STATE BUILDING AUTHORITY FINANCED CONSTRUCTION PROJECTS

a. Eliminate One-Time Construction Authorizations

· Kinross Correctional Facility, New Power Plant, $100

· Riverside Correctional Facility, Power Plant Automation, $100

· HuronValley Correctional Facility, Food Service Addition & Renovations, $100

· Capitol Complex Renovations, $100

· KelloggCommunity College –Roll Building Renovations, $100

The JCOS recommends cost and construction authorizations for the Glen Oaks CC Science Building renovation project. This is a $3.2 million project with the financing split evenly between the State and College.

Gross

GF/GP

$500

$500

($400)

($400)

Boilerplate Changes from FY 2003-04 YTD Appropriations:
*1. GENERAL SECTIONS*
**Sec. 204. Michigan Goods and Services– DELETED Prohibits purchase of non-Michigan goods and services if comparably priced Michigan goods and services are available. The Executive deletes this language. The JCOS recommends** restoration of current language.
*2. DEPARTMENT OF CORRECTIONS*
**Sec. 301. Watchtowers at Maximum Correctional Facilities– DELETED New maximum security prisons are to include manned and operational watchtowers. The Executive deletes this language. The JCOS recommends** restoration of current language.
**Sec. 302. Prison Facility Locations– DELETED Requires Joint Capital Outlay Subcommittee approval of the siting of a correctional facility if not specified in an appropriations act. The Executive deletes this language. The JCOS recommends** restoration of current language.
*3. LUMP SUMS AND SPECIAL MAINTENANCE*
**Sec. 602. State Owned Building Demolitions– MODIFIED The Department of Management and Budget may demolish any state owned building as designated by law. Also, each state agency, university, and community college is to annually report to DMB the status of authorized building demolition projects. The Executive amends this to provide that each state agency, university, and community college will provide notification to the Joint Capital Outlay Subcommittee (JCOS) of a planned building demolition. If not disapproved by the JCOS within 30 days, the demolition will be deemed authorized. The JCOS recommends** eliminating universities and colleges from the requirement and that the 30 day disapproval period is not valid when the Legislature is out of session for at least 15 days.
*4. DEPARTMENT OF MANAGEMENT & BUDGET*
**Sec. 902. (New) Prohibits Expenditures for Leased Facilities, Various State Agencies –NEW Prohibits various departments from expending operational funds for specific leases of non-State owned facilities unless the DMB Director objects. This covers 23 lease agreements spread among the departments of Civil Service, Community Health, Labor and Economic Growth, State Police, DMB, and the FIA. The DMB Director must report any exceptions, and justification for, to the appropriations committees, fiscal agencies, and State Budget Director by the end of the fiscal year. The Executive recommends this language. The JCOS recommends** concurrence.
*5. DEPARTMENT OF TRANSPORTATION*
**Sec. 1201 (2).Airport Improvement Projects, Local Match – MODIFIED The federal government has lowered the required local match from 10% to 5% for almost all airport improvement/safety projects. This replacement language reflects the new federal matching requirement. The Executive recommends this language. The JCOS recommends** concurrence.
**Sec. 1205.Handicap Bus Lifts Maintenance Reporting Requirement** Provides a reporting requirement related to maintenance of wheelchair lifts by transit agencies; provides sanctions for failure to repair nonoperational lifts by certain milestone dates. This section is largely identical to Section 732 of Public Act 361 of 2004 (HB 5528), the FY 2004-05 state transportation budget act. However, the new section exempts nonoperational wheelchair lifts from reporting requirements if the transit agency documents that the lifts will be replaced with new vehicles byAugust 1, 2005. The bill contains a repealer of Section 732 of Public Act 361 of 2004.

Boilerplate Changes from FY 2003-04 YTD Appropriations:

1. GENERAL SECTIONS

Sec. 204. Michigan Goods and Services– DELETED

Prohibits purchase of non-Michigan goods and services if comparably priced Michigan goods and services are available.

The Executive deletes this language.

The JCOS recommends restoration of current language.

2. DEPARTMENT OF CORRECTIONS

Sec. 301. Watchtowers at Maximum Correctional Facilities– DELETED

New maximum security prisons are to include manned and operational watchtowers.

The Executive deletes this language.

The JCOS recommends restoration of current language.

Sec. 302. Prison Facility Locations– DELETED

Requires Joint Capital Outlay Subcommittee approval of the siting of a correctional facility if not specified in an appropriations act.

The Executive deletes this language.

The JCOS recommends restoration of current language.

3. LUMP SUMS AND SPECIAL MAINTENANCE

Sec. 602. State Owned Building Demolitions– MODIFIED

The Department of Management and Budget may demolish any state owned building as designated by law. Also, each state agency, university, and community college is to annually report to DMB the status of authorized building demolition projects.

The Executive amends this to provide that each state agency, university, and community college will provide notification to the Joint Capital Outlay Subcommittee (JCOS) of a planned building demolition. If not disapproved by the JCOS within 30 days, the demolition will be deemed authorized.

The JCOS recommends eliminating universities and colleges from the requirement and that the 30 day disapproval period is not valid when the Legislature is out of session for at least 15 days.

4. DEPARTMENT OF MANAGEMENT & BUDGET

Sec. 902. (New) Prohibits Expenditures for Leased Facilities, Various State Agencies –NEW

Prohibits various departments from expending operational funds for specific leases of non-State owned facilities unless the DMB Director objects. This covers 23 lease agreements spread among the departments of Civil Service, Community Health, Labor and Economic Growth, State Police, DMB, and the FIA. The DMB Director must report any exceptions, and justification for, to the appropriations committees, fiscal agencies, and State Budget Director by the end of the fiscal year.

The Executive recommends this language.

The JCOS recommends concurrence.

5. DEPARTMENT OF TRANSPORTATION

Sec. 1201 (2).Airport Improvement Projects, Local Match – MODIFIED

The federal government has lowered the required local match from 10% to 5% for almost all airport improvement/safety projects. This replacement language reflects the new federal matching requirement.

The Executive recommends this language.

The JCOS recommends concurrence.

Sec. 1205.Handicap Bus Lifts Maintenance Reporting Requirement

Provides a reporting requirement related to maintenance of wheelchair lifts by transit agencies; provides sanctions

for failure to repair nonoperational lifts by certain milestone dates. This section is largely identical to Section 732

of Public Act 361 of 2004 (HB 5528), the FY 2004-05 state transportation budget act. However, the new section

exempts nonoperational wheelchair lifts from reporting requirements if the transit agency documents that the lifts

will be replaced with new vehicles byAugust 1, 2005.

The bill contains a repealer of Section 732 of Public Act 361 of 2004.