FY 2002-03 Year-to-Date Gross Appropriation. . . . . . . . . .
60;. . . . . . . . . . . . 0;. . . . . . . .

$458,111,700

Changes from FY 2002-03 Year-to-Date:

1.   Federal Revenue Adjustments. The Governor recommended Federal revenue adjustments to reflect anticipated increases for the Labor Market Information System, $992,300; NAFTA Trade Adjustment Assistance, $11,000,000; and Federal Adult Education administration, $150,000. The Senate concurs.

12,142,300

2.   Pre-college Programs in the Engineering and the Sciences. The Governor recommended eliminating grant funding to the program in Detroit and Grand Rapids. The Senate recommends restoring this line to $500,000.

(400,000)

3.   One Stop Centers. The Governor recommended reducing the administrative funding for these centers from $190,000 to $10,000. The Senate concurs.

(180,000)

4.   Council of Michigan Foundations. The Governor recommended reducing this grant from $2,000,000 to $1,000,000. This grant is funded with Tobacco Settlement Revenue. The Senate concurs.

(1,000,000)

 5.  Volunteer Investment Grants. The Senate recommends reducing the GF/GP funding for these grants from $780,100 to $250,000.

(530,100)

 6.  Focus:HOPE. The Senate recommends reducing the Federal Workforce Investment Act funding and transferring it to the job Training Subgrantees line item.

(2,000,000)

 7.  Job Training Subgrantees. The Senate recommends transferring Federal Workforce Investment Act funding from Focus:HOPE into this line.

2,000,000

 8.  Independent Living Centers. The Senate recommends a GF/GP reduction to this line.

(9,700)

 9.  Administration. The Senate recommends reducing the GF/GP in this line.

(710,200)

10. Other Changes. The Governor recommended various other adjustments to reflect building occupancy charges, workers’ compensation costs, FY 2002-03 early retirement costs, Federal match reductions, and administrative efficiency savings. Not contained in the bill are employee-related economics for salaries, insurance, and retirement totaling $4,679,500 Gross of which $561,000 would come from GF/GP. The Senate concurs and reduces FTEs by 99.5 to eliminate unfunded FTE positions.

(1,294,000)

11. Comparison to Governor’s Recommendation. The Senate recommendation is ($750,000) Gross and GF/GP under the Governor.

Total Changes. . . . . . . . . . .  . . . . . . . . . . . .& #160;. . . . . . . . . . . .&# 160;. . . . . . . . . . . .
60;. . . . . . . . . .

$8,018,300

FY 2003-04 Senate Gross Appropriation. . . . . . . . . .
60;. . . . . . . . . . . . 0;. . . . . . . . . . . . 

$466,130,000

FY 2003-04 CAREER DEVELOPMENT BUDGET - BOILERPLATE HIGHLIGHTS

Changes from FY 2002-03 Year to Date:

 1.    Standard Language. The Governor recommended deleting the following standard sections: Privatization, Deprived and Depressed, Buy American, Affirmative Action, Grants from other Units, Receive and Retain Reports, Early Retirement, Budgetary Savings, and Tobacco language. The Senate recommends maintaining Privatization, Buy American, Receive and Retain, Affirmative Action, and Deprived and Depressed sections and deleting the Contingency Fund language.

 2.    Encourage Administrative Efficiencies. The Governor recommended adding language that would appropriate to the Department one-half of the unexpended FY 2002-03 GF/GP that would otherwise lapse at year end. The Senate did not include this language.

 3.    Deleted Sections. The Governor recommended deleting the following language sections:

          &# 160; a)         Limit on the Local Match for Vocational Rehabilitation Facilities; (Sec. 303)

b) Report on the Volunteer Investment Grant distribution;

          &# 160; c)         Requirement to work with Community Health on the creation of a Medicaid Buy-In Program; (Sec. 320)

          &# 160; d)         Report on marketing effort for the King-Chavez-Parks Initiative; (Sec. 321)

          &# 160; e)         Operational funding for the One-Stop Centers; (Sec. 326)

          &# 160; f)         Intent language to work with the Disability Rights Coalition to find matching funding;

The Senate recommends maintaining all of these sections except Volunteer Investment Grants and Disability Rights Coalition sections.

 4.    Council of Michigan Foundations. The Governor recommended changing this language to limit the use of the grant funds for smoking cessation programs. The Senate concurs. (Sec. 313)

 5.    Veterans Employment Representative. The Governor deleted this language. The Senate recommends reinstating it with a change from Employment Service Office to Michigan Works! Agencies. (Sec. 311)

 6.    Adult Education Intent Language. The Governor deleted this section. The Senate concurs.

 7.    Pre-College Programs. The Governor deleted this section. The Senate recommends maintaining it with the allocation of funding being $250,000 to Detroit and $250,000 to Grand Rapids. (Sec. 309)

 8.    Carryforward for School Fee Fund. The Senate recommends deleting this language.

 9.    Focus:HOPE. The Senate recommends new language stating legislative intent that 2003-04 be the final year Federal funds will be awarded to this organization and requiring the Department to allow them to compete for the Statewide Federal Workforce Investment Act funding. (Sec. 330 and 331)

FY 2003-04 MICHIGAN STRATEGIC FUND BUDGET - BOILERPLATE HIGHLIGHTS

Changes from FY 2002-03 Year to Date:

1.  Standard Language. The Governor recommended deleting the following standard sections: Privatization, Deprived and Depressed, Buy American, Affirmative Action, Grants from other Units, Receive and Retain Reports, Early Retirement, Budgetary Savings, and Tobacco language. The Senate recommends maintaining Buy American, Privatization and Receive and Retain, Affirmative Action, and Deprived and Depressed sections and deleting the Contingency Fund language.

2.  Economic Development Job Training Grants. The Governor recommended the following changes:

     a)   Changing the program into two categorical grants - Business Response Grants (up to $7 million) and Manufacturing Competitiveness grants (up to $4 million);

     b)   Changing administrative costs from 5% of total grant to $800,000;

     c)   Deleting prohibition for grants to train permanent striker replacement workers, and 90% set aside for community colleges, not less than 10% for private sector training grants, $5 million set aside for rapid response grants, $1 million set aside for worker recruitment, $1 million set aside to match university Federal research grants, and intent language that the grants be funded at the FY 2002 level;

     d)   Changing match requirement from 25% to 30%.

The Senate recommends reducing the dollar amounts by $1 million for each program, maintaining community college set aside at 75%, maintaining permanent striker replacement language, and concurs with the rest of the Governor’s changes. (Sec. 401)

3.  Life Sciences Corridor. The Governor recommended changing this language to rename the program the Technology Tri-corridor which includes research in life sciences, homeland security and automotive issues; increasing the Steering Committee membership from 14 to 17; changing depository requirement from repayments or revenue be deposited into the fund from which it was awarded to deposit into the Commercial Development Fund. The Senate recommends renaming this program the Life Sciences and Technology Tri-Corridor; requiring $15 million be allocated for Life Sciences and $100,000 for Homeland Security and Automotive Initiative; allowing other sources of funding be used for Automotive and Homeland Security including Gaming or Federal revenues; added a representative from Western Michigan University to the Steering Committee; allowing up to 5% of Homeland and Automotive Initiative funding be used for administration; restricting awards from the Commercial Development Fund to only Life Science initiative; switching percentages for research categories; and requiring all proposals funded under Automotive and Homeland Security compliment the Life Sciences proposals. (Sec. 410)

4.  Deleted Language. The Governor recommended deleting the following language sections:

     a)   Requirement that 25% of Promotion Funding be used to promote cultural tourism;

     b)   Requirement that Travel Michigan coordinate with ethnic destination marketing groups to promote ethnic festivals;

     c)   Set aside out of the Job Creation Services line for the Technical Assistance Center in Port Huron

The Senate concurs.