1068: CONFERENCE REPORT (9-8-04) - FY 2004-05 NATURAL RESOURCES BUDGET

FY 2004-05 NATURAL RESOURCES BUDGET S.B. 1068 (CR-1*): CONFERENCE REPORT

Amount Over/(Under) GF/GP Target: $ 0

FY 2003-04 Year-to-Date Gross Appropriation	$259,026,500
Changes from FY 2003-04 Year-to-Date:
Items Included by the Senate and House
1. Snowmobile Trail Improvement Funds. The budget appropriates additional revenue anticipated from a scheduled increase in snowmobile trail registration fees.	1,042,500
2. Forest Development Fund and Revenue Adjustments. The budget includes reductions to restricted funds to reflect anticipated revenue and $1,000,000 GF/GP is offset with an appropriation from the Forest Development Fund.	(381,600)
3. Economic Adjustments and Employee-Related Savings. Funding is provided for adjustments to salaries and wages, workers' compensation, building occupancy, retirement, insurance, and information technology. The budget also removes 5% of the FY 2003-04 budget for salaries and wages	8,359,700
4. Other Changes. The budget includes savings from a consolidation of human resource functions in the Department of Civil Service, removal of one-time items in FY 2003-04, a 10% reduction in information technology, and other incremental adjustments.	289,300
Conference Agreement on Items of Difference
5. Payments in Lieu of Taxes. The Conference Committee provides $3.9 million GF/GP and $3.9 million Restricted to support these payments. Legislation is required to exempt the payments from the State education tax, freezes taxable values of State-owned property, and cap the mills assessed on State-owned property.	(472,800)
6. Bovine TB Reduction. The Conference Committee offsets a $500,000 reduction of General Fund support for Bovine TB research with funding from the Game and Fish Protection Fund.	0
7. Marine Safety Grants. The Conference Committee maintains the current year funding level with support from the Marine Safety Fund.	0
8. Forester in Southwest Michigan. Funding is not provided for an additional forester.	0
9. Sebewaing Harbor Commission. The Conference Committee provides support from the Waterways Fund for interim measures for a flood control measure in Sebewaing.	100,000
10. Governor's Revised Recommendation. The Conference Committee includes items recommended by the Governor and appropriated by the House regarding General Fund reductions, Executive Order program transfers, the forest certification program, and Federal land and water conservation grants.	2,268,900
11. Other Issues. The Conference Committee makes adjustments to reflect updated information on available revenues in restricted funds and to reflect FY 2003-04 supplemental appropriations.	(5,897,100)
Total Changes	$5,308,900
FY 2004-05 Conference Report Gross Appropriation	$264,335,400

FY 2004-05 NATURAL RESOURCES BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2003-04 Year to Date:

Items Included by the Senate and House

1. The budget includes current year sections regarding the hiring freeze, a report on restricted fund balances, listing of appropriations from the Game and Fish Protection Fund, the Adopt-a-Forest program, reporting on grant and loan programs, certification of water control structures, bovine tuberculosis activities, wolf and coyote indemnification payments, timber marking, and Federal land and water conservation funds.

2. Forest Certification. The budget includes new language directing the Department to follow dual forest certification criteria. (Sec. 801)

Conference Agreement on Items of Difference

3. The Conference Committee does not include sections added by the House regarding contingency funds, purchased land payments in lieu of taxes, the Porcupine Mountains PILT, employee savings, budgetary savings, agricultural land rental agreements, and a prohibition on dispersed camping fees.

4. Retention of Reports. The Conference Committee includes a section requiring the Department to retain copies of all reports. (Sec. 208)

5. Waterways Commission. The Conference Committee includes a reporting requirement on activities of the Commission. (Sec. 213)

6. Limitation on Travel. The Conference Committee includes the standard language for all budgets. (Sec. 218)

7. Habitat Report. The Conference Committee retains this long-standing report. (Sec. 301)

8. Application and Transaction Fees. Technical changes are made to this section. (Sec. 403)

9. Fish Advisory Information. This language is retained in the bill requiring fish advisory information to be in the fishing guide. (Sec. 404)

10. Land Transaction Report. Technical changes are made to this section. (Sec. 405)

11. Travel Report. This language is retained in the bill. (Sec. 406)

12. Defibrillators in State Parks. The Conference Committee requires the Department to accept donations of defibrillators. (Sec. 703)

13. Porcupine Mountains State Park. This section is retained with changes to prohibit demolition of additional buildings. (Sec. 708)

14. Water Trails. The Conference Committee retains the Senate language requiring completion of two pilot projects. (Sec. 704)

15. Misuse of Free Day Passes. This reporting section is retained in the bill. (Sec. 705)

16. Boating Access Pilot Project. This section is retained and changed to require any contracts for the pilot project to be competitively bid. (Sec. 706)

17. Staff for Timber Marking. This language is retained in the bill. (Sec. 807)

18. Cooperative Resource Programs. The Conference Committee retains the House date for transfer of funding to the Department of Agriculture. (Sec. 804)

19. Southwest Michigan Forester. The Conference Committee retains the House language directing activities of a forester in this region of the State. (Sec. 805)

20. Snowmobile Law Enforcement Grants. The Conference Committee retains the House language providing greater flexibility in awarding the grants. (Sec. 901)

21. Watercraft Noise Study. The Conference Committee includes the Senate language authorizing a $35,000 grant if matching funds are provided by a lake association. (Sec. 1104)

Date Completed: 9-8-04 Fiscal Analyst: Jessica Runnels Bill Analysis @ http://www.senate.michigan.gov/sfa September 9, 2004 This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. hidnr_cr.doc