FY 2003-04 CORRECTIONS BUDGET H.B. 4390 (P.A. 154 of 2003): ENACTED

FY 2002-03 Year-to-Date Gross Appropriation	$1,687,056,831
Changes from FY 2002-03 Year-to-Date:
Items Included by the Senate and House
1. Prison Beds. The budget funds 1,446 partially-funded and unfunded beds opened in FY 2002-03.	12,040,000
2. Michigan Youth Correctional Facility. The budget provides for increases in the management contract as well as for the cost of an additional 30 beds at the facility.	2,167,100
3. Health Care. The budget provides for increases in the managed health care services contract, for increased costs and volume of medical and psychotropic pharmaceuticals, and for a new endoscopy unit. The House and Senate increased prisoner co-pays from $3 to $5 on prisoner-initiated medical visits to reduce GF/GP by $110,000.	12,777,500
4. County Jail Reimbursement Program. The Executive added $1.0 million in increased restricted funding, eliminated the $800,000 in remaining GF/GP, reduced the line by $7.0 million to adjust for the reimbursement eligibility criteria change, and shifted the funding to a local facility expansion program. The House and Senate reduced the savings to $5.5 million, of which only $2.5 million funds a local facility housing program and $3.0 million creates a felony drunk driver treatment program.	200,000
5. Conditional Reintegration Program (CRP). The budget recognizes an increase in participant fees due to a proposed increase in the use of the program. It also shifts $6.0 million from the inmate housing fund to Field Operations to fund the program.	1,865,100
6. Economic Adjustments. The budget includes economic increases for workers( compensation, food, fuel, utilities, and building occupancy charges. It does not fund approximately $81 million in salary, insurance, and retirement increases.	5,938,800
7. Other Changes. The budget makes other adjustments for changes in Federal funding, prison operations and field operations as well as increases for leap year costs, past retirement rate shortfalls, restoration of community corrections grants, and research operations. Increases are partially funded through reductions in support staff, training, and information technology.	5,028,869
Conference Agreement on Items of Difference
8. Academic/Vocational Programming. The Executive and Senate eliminated academic programming for Level V prisoners to save almost $2.6 million. The House further reduced academic/vocational programming by $8.5 million. The Conference Committee concurred with the Governor and the Senate.	(2,567,000)
9. Technical Adjustments. The Senate included technical adjustments which balance to zero at the request of the DOC. The Conference Committee concurred with the Senate.	0
10. Points of Difference. The Senate created points of difference in multiple lines by reducing each by $100 and FTEs by 1.0. The Conference Committee concurred with the House.	0
Total Changes	$37,450,369
FY 2003-04 Enacted Gross Appropriation	$1,724,507,200

FY 2003-04 CORRECTIONS BUDGET BOILERPLATE HIGHLIGHT

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

Items Included by the Senate and House

1. County Jail Reimbursement Program (CJRP) The budget revises the CJRP reimbursement criteria to eliminate automatic reimbursement for third time drunk drivers. Counties will still receive reimbursement for felony drunk drivers who are true prison diversions. (Section 706)

2. Local Facility Housing Program. The Governor(s recommendation added Section 707 to provide direction for a local facility expansion and housing program funded through the CJRP changes. The House and Senate reduced the funding for this line and revised the boilerplate to narrow the use of funding to only reimburse counties for housing State prisoners.

3. Felony Drunk Drivers. The budget includes boilerplate recommended by the House to provide direction for a new felony drunk driver jail reduction and community treatment program funded through the CJRP and facility housing program changes. The program will assist counties in opening jail beds by providing funding to support the movement of felony drunk drivers into community treatment programs. The open jail beds will be used to further prison diversion efforts (Section 710).

4. Abuse of Medical Services. The Conference Committee report added language to encourage the DOC to identify and manage prisoners who take advantage of medical services by obtaining off-site medical care when unnecessary or unavoidable (Section 907).

Conference Agreement on Items of Difference

5. Hepatitis C Study. The Senate deleted Section 218, which was added by the House. It required that the DOC do a Hepatitis C study to determine the incidence of infection among the prisoner intake population. The Conference Committee concurred with the House.

6. Academic/Vocational Program Reduction. The Senate deleted Section 220a, which was added by the House. It provided legislative intent that the $8.5 million reduction from the Academic/Vocational program line item be used for educational purposes. The Conference Committee concurred with the Senate.

7. Unfunded Economics. The Senate added Section 224, which requires the DOC to provide a report by October 15, 2003 regarding the department(s plans to compensate for unfunded economic increases in salaries, insurance, and retirement. It specifies that the plan shall include but not be limited to any plans for layoffs, program changes, prisoner release and facility closures. The Conference Committee concurred with the Senate.

8. Madison Twp. Sewer Contract. The Senate added Section 225, which prohibits the expenditure of funds in part 1 for a contract with Madison Township to connect the sewer systems of Gus Harrison and Parr Highway Correctional Facilities to the Central Lenawee Sewage Disposal System. The Conference Committee concurred with the House.

9. Privatization of Prisoner Transport Services. The Senate added Section 406, which requires the department to do a cost/benefit analysis of privatizing prisoner transport services. The Conference Committee concurred with the Senate.

10. Prisoner Sex Changes. Section 901 prohibits expenditures for prisoner sex changes unless medically necessary according to a physician. The Senate amended the section to make it medically necessary (according to the chief medical officer of the department.( The Conference Committee concurred with the Senate.

Date Completed: 8-13-03 Fiscal Analyst: Bethany Wicksall

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. Hicor_en