Coordinator: Al Valenzio

Phone: 373-8080

Date: May 25, 2004

HB 5527 (H-1)-As Passed the House

Summary of FY 2004-05 Supplemental

	Executive		House Passed		Senate
Dept./Budget	GF/GP	Gross	GF/GP	Gross	GF/GP	Gross
Agriculture	$0	$0	($552,200)	($552,200)
Attorney General	0	0	(625,300)	(625,300)
Capital Outlay	0	0	(22,000)	(22,000)
Civil Rights	0	0	(210,500)	(210,500)
Civil Service	0	0	(211,100)	(211,100)
Community Coll.	0	0	(3,143,200)	(3,143,200)
DCH	0	0	(85,782,700)	(159,817,600)
Corrections	0	0	(41,149,900)	(41,149,900)
Education	0	0	(501,100)	(501,100)
DEQ	0	0	(1,015,300)	(1,015,300)
FIA	0	0	(46,125,300)	(77,529,800)
Higher Ed.	0	0	(16,903,900)	(36,903,900)
HAL	0	0	(10,623,100)	(10,623,100)
Judiciary	0	0	(1,923,600)	(1,923,600)
DLEG	0	0	(3,469,000)	(3,469,000)
DMB	0	0	(1,139,700)	(1,139,700)
Military/Veterans	0	0	(754,500)	(754,500)
DNR	0	0	(861,100)	(861,100)
State	0	0	(990,500)	(990,500)
State Police	0	0	(3,006,500)	(3,006,500)
MDOT	0	0	0	(13,000,000)
Treasury	0	0	(1,368,700)	(1,368,700)
TOTALS	$0	$0	($220,379,200)	($358,818,600)

Budgetary Issues:	Executive	House	Senate
AGRICULTURE 1. Budgetary Savings. A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($325,800) ($325,800)
2. Early Retirement Savings. Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.	Gross GF/GP	$0 $0	($226,400) ($226,400)
ATTORNEY GENERAL 1. Budgetary Savings. A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($346,600) ($346,600)
2. Early Retirement Savings. Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.	Gross GF/GP	$0 $0	($278,700) ($278,700)
CAPITAL OUTLAY 1. Budgetary Savings. A negative line item would be created, representing 1% GF/GP discretionary budgetary savings. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($22,000) ($22,000)
CIVIL RIGHTS 1. Budgetary Savings. A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($130,400) ($130,400)
2. Early Retirement Savings. Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.	Gross GF/GP	$0 $0	($80,100) ($80,100)
CIVIL SERVICE 1. Budgetary Savings. A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($85,700) ($85,700)
2. Early Retirement Savings. Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.	Gross GF/GP	$0 $0	($125,400) ($125,400)
COMMUNITY COLLEGES 1. Budgetary Savings. A negative line item would be created, representing a 1% GF/GP budgetary savings. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($3,143,200) ($3,143,200)
COMMUNITY HEALTH 1. Budgetary Savings. A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($27,236,900) ($27,236,900)
2. Early Retirement Savings. Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.	Gross GF/GP	$0 $0	($2,030,700) ($2,030,700)
3. Medicaid Eligibility for Parents and Caretaker Relatives. Reduces Medicaid funding in the Health Plan Services line item associated with eliminating optional coverage for parents and caretaker relatives who would no longer qualify for Medicaid.	Gross Federal GF/GP	$0 0 $0	($96,000,000) (54,441,600) ($41,558,400)
4. Medicaid Eligibility for Persons Age 18-21. Reduces Medicaid funding in the Health Plan Services line item associated with eliminating optional coverage for persons under age 21, but older than age 18, who would no longer qualify for Medicaid.	Gross Federal GF/GP	$0 0 $0	($23,000,000) (13,043,300) ($9,956,700)
5. Recoupment of Medicaid Overpayment Assumes savings from a contract with an outside entity to identify Medicaid overpayments to medical providers and to seek recovery of the funds that were overpaid.	Gross Federal GF/GP	$0 0 $0	($11,550,000) (6,550,000) ($5,000,000)
CORRECTIONS 1. Budgetary Savings. A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($19,172,600) ($19,172,600)
2. Early Retirement Savings. Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.	Gross GF/GP	$0 $0	($1,177,300) ($1,177,300)
3. Academic/Vocational Programs. Reduces funding for academic/vocational programs by $14.8 million. Executive-recommended amount for this line item for FY 2004-05 is $33,165,900. Senate-passed amount is $28,165,900. Reduction would put funding for academic/vocational programs at $13,365,900, which, when considered in combination with GF/GP funding in the line for Education Services and Federal Education Grants, would put total state funding for prisoner education at approximately $15.0 million.	Gross GF/GP	$0 $0	($14,800,000) ($14,800,000)
4. Local Jail Beds. Incorporates $6 million savings based on leasing of jail beds to house state prisoners. Assumes that 500 jail beds could be rented for one year at $43.50 per day, and that the annual costs of housing those prisoners in prison would be $28,000 per prisoner.	Gross GF/GP	$0 $0	($6,000,000) ($6,000,000)
DEPARTMENT OF EDUCATION 1. Budgetary Savings. A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($313,000) ($313,000)
2. Early Retirement Savings. Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.	Gross GF/GP	$0 $0	($188,100) ($188,100)
ENVIRONMENTAL QUALITY 1. Budgetary Savings. A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($419,700) ($419,700)
2. Early Retirement Savings. Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.	Gross GF/GP	$0 $0	($595,600) ($595,600)
FAMILY INDEPENDENCE AGENCY 1. Budgetary Savings. A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($12,521,600) ($12,521,600)
2. Early Retirement Savings. Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.	Gross GF/GP	$0 $0	($6,161,600) ($6,161,600)
3. Child Day Care Relative Rate Reduction. Savings included from lowering the reimbursement rate paid to relative child day care providers to that paid to child day care aides.	Gross Federal GF/GP	$0 0 $0	($38,163,300) (23,361,400) ($14,801,900)
4. Adoption Subsidy Adjustment. Technical adjustment to remove extra caseload funding authority.	Gross Federal GF/GP	$0 0 $0	($11,273,900) (5,894,900) ($5,379,000)
5. Maxey Property Sale. Reduction made with the intent to restore appropriation with funds from the sale of W.J. Maxey property.	Gross GF/GP	$0 $0	($2,961,200) ($2,961,200)
6. Clothing Allowance. TANF savings realized from lowering the annual school clothing allowance in the Family Independence Program line item to $41.20 per eligible child.	Gross Federal GF/GP	$0 0 $0	($1,042,800) (1,042,800) $0
7. Day Care Services Fund Shift. A fund shift of $2.3 million is included that replaces GF/GP no longer needed to match federal Child Care Development Fund revenue in Day Care Services with Temporary Assistance for Needy Families (TANF).	Gross Federal GF/GP	$0 0 $0	$0 2,300,000 ($2,300,000)
8. Projected Rent Savings. Savings associated with the closure of WayneCounty offices.	Gross Federal GF/GP	$0 0 $0	($5,405,400) (3,405,400) ($2,000,000)
HIGHER EDUCATION 1. Merit Award Program. Reduction assumed as result of proposed college grade point average/completion criteria for receipt of Merit Award. FY 2004-05 Executive Recommendation for Merit Awards is $67.0 million. Boilerplate section 501 would transfer $20.0 million from Merit Award Trust Fund to General Fund.	Gross Restr. GF/GP	$0 0 $0	($20,000,000) (20,000,000) $0
2. Budgetary Savings. A negative line item would be created, representing a 1% GF/GP budgetary savings. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($16,903,900) ($16,903,900)
HISTORY, ARTS, AND LIBRARIES 1. Budgetary Savings. A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($522,100) ($522,100)
2. Early Retirement Savings. Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.	Gross GF/GP	$0 $0	($101,000) ($101,000)
3. Arts Grants. Reduces the Arts and Cultural Grants appropriation line by $10.0 million GF/GP. The FY 2004-05 budget bill for History, Arts and Libraries, was passed by the House containing $11,071,300 of GF/GP for arts and cultural grants. These funds are distributed through an annual competitive process, requiring matching funds from the recipient institutions, to promote and provide artistic and cultural events in Michigan.	Gross GF/GP	$0 $0	($10,000,000) ($10,000,000)
JUDICIARY 1. Budgetary Savings. A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($1,739,000) ($1,739,000)
2. Early Retirement Savings. Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.	Gross GF/GP	$0 $0	($184,600) ($184,600)
LABOR AND ECONOMIC GROWTH 1. Budgetary Savings. A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($1,198,000) ($1,198,000)
2. Early Retirement Savings. Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.	Gross GF/GP	$0 $0	($2,271,000) ($2,271,000)
MANAGEMENT AND BUDGET 1. Budgetary Savings. A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($408,200) ($408,200)
2. Early Retirement Savings. Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.	Gross GF/GP	$0 $0	($731,500) ($731,500)
MILITARY AND VETERANS AFFAIRS 1. Budgetary Savings. A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($413,200) ($413,200)
2. Early Retirement Savings. Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.	Gross GF/GP	$0 $0	($341,300) ($341,300)
NATURAL RESOURCES 1. Budgetary Savings. A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($282,100) ($282,100)
2. Early Retirement Savings. Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.	Gross GF/GP	$0 $0	($579,000) ($579,000)
STATE 1. Budgetary Savings. A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($168,500) ($168,500)
2. Early Retirement Savings. Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.	Gross GF/GP	$0 $0	($822,000) ($822,000)
STATE POLICE 1. Budgetary Savings. A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable line items through legislative transfers.	Gross GF/GP	$0 $0	($2,700,000) ($2,700,000)
2. Early Retirement Savings. Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.	Gross GF/GP	$0 $0	($306,500) ($306,500)
TRANSPORTATION 1. Shift Driver’s License Fees. This reduction reflects a proposed amendment of Section 819 of the Michigan Vehicle Code to redirect to the state General Fund certain driver’s license fees currently earmarked to the Transportation Economic Development Fund.	Gross Restr. GF/GP	$0 0 $0	($13,000,000) (13,000,000) $0
TREASURY 1. Budgetary Savings. A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable	Gross GF/GP	$0 $0	($644,200) ($644,200)
2. Early Retirement Savings. Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.	Gross GF/GP	$0 $0	($724,500) ($724,500)

Budgetary Issues:

Executive

House

Senate

AGRICULTURE

1. Budgetary Savings.

A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable line items through legislative transfers.

Gross

GF/GP

($325,800)

($325,800)

2. Early Retirement Savings.

Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.

Gross

GF/GP

($226,400)

($226,400)

ATTORNEY GENERAL

1. Budgetary Savings.

A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable line items through legislative transfers.

Gross

GF/GP

($346,600)

($346,600)

2. Early Retirement Savings.

Gross

GF/GP

($278,700)

($278,700)

CAPITAL OUTLAY

1. Budgetary Savings.

A negative line item would be created, representing 1% GF/GP discretionary budgetary savings. The savings would be distributed to the applicable line items through legislative transfers.

Gross

GF/GP

($22,000)

($22,000)

CIVIL RIGHTS

1. Budgetary Savings.

Gross

GF/GP

($130,400)

($130,400)

2. Early Retirement Savings.

Gross

GF/GP

($80,100)

($80,100)

CIVIL SERVICE

1. Budgetary Savings.

Gross

GF/GP

($85,700)

($85,700)

2. Early Retirement Savings.

Gross

GF/GP

($125,400)

($125,400)

COMMUNITY COLLEGES

1. Budgetary Savings.

A negative line item would be created, representing a 1% GF/GP budgetary savings. The savings would be distributed to the applicable line items through legislative transfers.

Gross

GF/GP

($3,143,200)

($3,143,200)

COMMUNITY HEALTH

1. Budgetary Savings.

Gross

GF/GP

($27,236,900)

($27,236,900)

2. Early Retirement Savings.

Gross

GF/GP

($2,030,700)

($2,030,700)

3. Medicaid Eligibility for Parents and Caretaker Relatives.

Reduces Medicaid funding in the Health Plan Services line item associated with eliminating optional coverage for parents and caretaker relatives who would no longer qualify for Medicaid.

Gross

Federal

GF/GP

($96,000,000)

(54,441,600)

($41,558,400)

4. Medicaid Eligibility for Persons Age 18-21.

Reduces Medicaid funding in the Health Plan Services line item associated with eliminating optional coverage for persons under age 21, but older than age 18, who would no longer qualify for Medicaid.

Gross

Federal

GF/GP

($23,000,000)

(13,043,300)

($9,956,700)

5. Recoupment of Medicaid Overpayment

Assumes savings from a contract with an outside entity to identify Medicaid overpayments to medical providers and to seek recovery of the funds that were overpaid.

Gross

Federal

GF/GP

($11,550,000)

(6,550,000)

($5,000,000)

CORRECTIONS

1. Budgetary Savings.

Gross

GF/GP

($19,172,600)

($19,172,600)

2. Early Retirement Savings.

Gross

GF/GP

($1,177,300)

($1,177,300)

3. Academic/Vocational Programs.

Reduces funding for academic/vocational programs by $14.8 million. Executive-recommended amount for this line item for FY 2004-05 is $33,165,900. Senate-passed amount is $28,165,900. Reduction would put funding for academic/vocational programs at $13,365,900, which, when considered in combination with GF/GP funding in the line for Education Services and Federal Education Grants, would put total state funding for prisoner education at approximately $15.0 million.

Gross

GF/GP

($14,800,000)

($14,800,000)

4. Local Jail Beds.

Incorporates $6 million savings based on leasing of jail beds to house state prisoners. Assumes that 500 jail beds could be rented for one year at $43.50 per day, and that the annual costs of housing those prisoners in prison would be $28,000 per prisoner.

Gross

GF/GP

($6,000,000)

($6,000,000)

DEPARTMENT OF EDUCATION

1. Budgetary Savings.

Gross

GF/GP

($313,000)

($313,000)

2. Early Retirement Savings.

Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.

Gross

GF/GP

($188,100)

($188,100)

ENVIRONMENTAL QUALITY

1. Budgetary Savings.

Gross

GF/GP

($419,700)

($419,700)

2. Early Retirement Savings.

Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.

Gross

GF/GP

($595,600)

($595,600)

FAMILY INDEPENDENCE AGENCY

1. Budgetary Savings.

Gross

GF/GP

($12,521,600)

($12,521,600)

2. Early Retirement Savings.

Gross

GF/GP

($6,161,600)

($6,161,600)

3. Child Day Care Relative Rate Reduction.

Savings included from lowering the reimbursement rate paid to relative child day care providers to that paid to child day care aides.

Gross

Federal

GF/GP

($38,163,300)

(23,361,400)

($14,801,900)

4. Adoption Subsidy Adjustment.

Technical adjustment to remove extra caseload funding authority.

Gross

Federal

GF/GP

($11,273,900)

(5,894,900)

($5,379,000)

5. Maxey Property Sale.

Reduction made with the intent to restore appropriation with funds from the sale of W.J. Maxey property.

Gross

GF/GP

($2,961,200)

($2,961,200)

6. Clothing Allowance.

TANF savings realized from lowering the annual school clothing allowance in the Family Independence Program line item to $41.20 per eligible child.

Gross

Federal

GF/GP

($1,042,800)

(1,042,800)

7. Day Care Services Fund Shift.

A fund shift of $2.3 million is included that replaces GF/GP no longer needed to match federal Child Care Development Fund revenue in Day Care Services with Temporary Assistance for Needy Families (TANF).

Gross

Federal

GF/GP

2,300,000

($2,300,000)

8. Projected Rent Savings.

Savings associated with the closure of WayneCounty offices.

Gross

Federal

GF/GP

($5,405,400)

(3,405,400)

($2,000,000)

HIGHER EDUCATION

1. Merit Award Program.

Reduction assumed as result of proposed college grade point average/completion criteria for receipt of Merit Award. FY 2004-05 Executive Recommendation for Merit Awards is $67.0 million. Boilerplate section 501 would transfer $20.0 million from Merit Award Trust Fund to General Fund.

Gross

Restr.

GF/GP

($20,000,000)

(20,000,000)

2. Budgetary Savings.

A negative line item would be created, representing a 1% GF/GP budgetary savings. The savings would be distributed to the applicable line items through legislative transfers.

Gross

GF/GP

($16,903,900)

($16,903,900)

HISTORY, ARTS, AND LIBRARIES

1. Budgetary Savings.

Gross

GF/GP

($522,100)

($522,100)

2. Early Retirement Savings.

Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.

Gross

GF/GP

($101,000)

($101,000)

3. Arts Grants.

Reduces the Arts and Cultural Grants appropriation line by $10.0 million GF/GP. The FY 2004-05 budget bill for History, Arts and Libraries, was passed by the House containing $11,071,300 of GF/GP for arts and cultural grants. These funds are distributed through an annual competitive process, requiring matching funds from the recipient institutions, to promote and provide artistic and cultural events in Michigan.

Gross

GF/GP

($10,000,000)

($10,000,000)

JUDICIARY

1. Budgetary Savings.

Gross

GF/GP

($1,739,000)

($1,739,000)

2. Early Retirement Savings.

Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.

Gross

GF/GP

($184,600)

($184,600)

LABOR AND ECONOMIC GROWTH

1. Budgetary Savings.

Gross

GF/GP

($1,198,000)

($1,198,000)

2. Early Retirement Savings.

Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.

Gross

GF/GP

($2,271,000)

($2,271,000)

MANAGEMENT AND BUDGET

1. Budgetary Savings.

Gross

GF/GP

($408,200)

($408,200)

2. Early Retirement Savings.

Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.

Gross

GF/GP

($731,500)

($731,500)

MILITARY AND VETERANS AFFAIRS

1. Budgetary Savings.

Gross

GF/GP

($413,200)

($413,200)

2. Early Retirement Savings.

Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.

Gross

GF/GP

($341,300)

($341,300)

NATURAL RESOURCES

1. Budgetary Savings.

Gross

GF/GP

($282,100)

($282,100)

2. Early Retirement Savings.

Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.

Gross

GF/GP

($579,000)

($579,000)

STATE

1. Budgetary Savings.

Gross

GF/GP

($168,500)

($168,500)

2. Early Retirement Savings.

Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.

Gross

GF/GP

($822,000)

($822,000)

STATE POLICE

1. Budgetary Savings.

Gross

GF/GP

($2,700,000)

($2,700,000)

2. Early Retirement Savings.

Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.

Gross

GF/GP

($306,500)

($306,500)

TRANSPORTATION

1. Shift Driver’s License Fees.

This reduction reflects a proposed amendment of Section 819 of the Michigan Vehicle Code to redirect to the state General Fund certain driver’s license fees currently earmarked to the Transportation Economic Development Fund.

Gross

Restr.

GF/GP

($13,000,000)

(13,000,000)

TREASURY

1. Budgetary Savings.

A negative line item would be created, representing GF/GP budgetary savings to be achieved through maintaining position vacancies and other means. The savings would be distributed to the applicable

Gross

GF/GP

($644,200)

($644,200)

2. Early Retirement Savings.

Proportional amount of estimated first year GF savings based on number of employees expected to retire. The savings would be distributed to the applicable line items through legislative transfers. It is also contingent upon passage of legislation creating an early retirement window based on a combined age and service credit of 75 years.

Gross

GF/GP

($724,500)

($724,500)

Boilerplate Issues:	Executive	House	Senate
GENERAL PROVISIONS 1. Sec. 203. Budgetary Savings. Savings to be realized from the hiring freeze, efficiencies, and other administrative savings. Must be implemented by legislatively adopted transfers where applicable and are not to impact essential state services.	No	Yes
2. Sec. 204. Early Retirement Savings. Savings to be realized from not filling all positions lost as a result of the 2004 early retirement program. Must be implemented by legislatively adopted transfers where applicable.	No	Yes
COMMUNITY HEALTH 1. Sec. 301. Medicaid Eligibility. Eliminates Medicaid eligibility for parents, caretaker relatives, and persons under age 21, but older than age 18, who are not required to be covered under federal Medicaid requirements.	No	Yes
CORRECTIONS 1. Sec. 401. Jail Utilization Savings. Incorporates $6 million savings based on leasing of jail beds to house state prisoners. Assumes that 500 jail beds could be rented for one year at $43.50 per day, and that the annual costs of housing those prisoners in prison would be $28,000 per prisoner. Must be implemented by legislatively adopted transfers where applicable.	No	Yes
HIGHER EDUCATION 1. Sec. 501. Transfer from Merit Award Trust Fund. Transfers $20 million from the Merit Awards Trust Fund to the General Fund.	No	Yes
FAMILY INDEPENDENCE AGENCY 1. Sec. 601. Maxey Training School Property Sale. Appropriates $3.0 million contingent upon the sale of W. J. Maxey Training School excess property identified by FIA as parcels one, three, and four.	No	Yes
2. Sec. 602. Develop/Implement Plan to Close Offices in Wayne County. Requires that the Department implement a plan to save $2.0 million GF/GP by restructuring local field offices in counties with more than ten local offices and provide a report on the plan by January 1, 2005.	No	Yes
3. Sec. 603. Day Care Services Savings. Specifies that savings be realized by lowering the reimbursement rate to relative child day care providers to that currently paid to child day care aides.	No	Yes
4. Sec. 604. Clothing Allowance Reduction. Specifies that savings be realized from lowering the annual school clothing allowance to $41.20 per eligible child.	No	Yes
ENACTING SECTION 1. Tie Bar. This bill is tie-barred to HB 4364 which is a FY 2005 School Aid supplemental.	No	Yes