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<TITLE>: CONFERENCE REPORT (6-25-03) - FY 2003-04 CORRECTIONS BUDGET</TITLE>
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<p>FY 2003-04 <a name="1"></a>CORRECTIONS BUDGET - H.B. 4390<a name="3"></a> (CR-1*): CONFERENCE REPORT</p>
<table width="100%" cellpadding="6" cellspacing="0">
<tr>
<td class="table1column1" width="81%" style="border-right: none; border-left: none; border-top: 0.04in double #7f7f7f; border-bottom: 0.04in double #7f7f7f" valign="top"><p><span style="font-weight: bold">FY 2002-03 Year-to-Date Gross Appropriation<span>. . . . .& amp;#160;. . . . . .&a mp;#160;. . . . . .&am p;#160;. . . . . .& ;#160;. . . . . .& #160;. .</span></span></p>
</td>
<td class="table1column2" width="19%" style="border-left: none; border-right: none; border-top: 0.04in double #7f7f7f; border-bottom: 0.04in double #7f7f7f" align="right" valign="top"><p><span style="font-weight: bold">$1,685,666,831 </span></p>
</td>
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<tr>
<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p><span style="font-weight: bold">Changes from FY 2002-03 Year-to-Date:</span></p>
</td>
<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p> </p>
</td>
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<tr>
<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p><span style="text-decoration: underline">Items Included by the Senate and House</span></p>
</td>
<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p style="text-indent: 5.84583in; margin-left: -5.84583in"> </p>
</td>
</tr>
<tr>
<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.216667in; margin-left: 0.216667in"> 1.<span> </span><span style="font-weight: bold">Prison Beds. </span>The budget funds 1,446 partially-funded and unfunded beds opened in
FY 2003.</p>
</td>
<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>12,040,000 </p>
</td>
</tr>
<tr>
<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.216667in; margin-left: 0.216667in"> 2.<span> </span><span style="font-weight: bold">Michigan Youth Correctional Facility.</span> The budget provides for increases in the
management contract as well as for the cost of an additional 30 beds at the facility.</p>
</td>
<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>2,167,100 </p>
</td>
</tr>
<tr>
<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.216667in; margin-left: 0.216667in"> 3.<span> </span><span style="font-weight: bold">Health Care.</span> 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.</p>
</td>
<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p><span style="font-family: 'Arial', sans-serif">12,777,500 </span></p>
</td>
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<tr>
<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.216667in; margin-left: 0.216667in"> 4.<span> </span><span style="font-weight: bold">County Jail Reimbursement Program.</span><span style="font-family: 'Arial', sans-serif"> </span>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 funds a local facility housing
program and $3.0 million creates a felony drunk driver treatment program.</p>
</td>
<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>200,000 </p>
</td>
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<tr>
<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.216667in; margin-left: 0.216667in"> 5.<span> </span><span style="font-weight: bold">Conditional Reintegration Program (CRP).</span> The budget recognizes an increase in
participant fees due to a proposed increase in the use of the program. It shifts $6.0
million from the inmate housing fund to Field Operations to fund the program. </p>
</td>
<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p><span style="font-family: 'Arial', sans-serif">1,865,100 </span></p>
</td>
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<tr>
<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.216667in; margin-left: 0.216667in"> 6.<span style="font-weight: bold"><span> </span>Economic Adjustments.</span> 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. </p>
</td>
<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>5,938,800 </p>
</td>
</tr>
<tr>
<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.216667in; margin-left: 0.216667in"> 7.<span> </span><span style="font-weight: bold">Other Changes.</span> 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.</p>
</td>
<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>6,418,869 </p>
</td>
</tr>
<tr>
<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p><span style="text-decoration: underline">Conference Agreement on Items of Difference</span></p>
</td>
<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p style="text-indent: 5.84583in; margin-left: -5.84583in"> </p>
</td>
</tr>
<tr>
<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.216667in; margin-left: 0.216667in"> 8.<span> </span><span style="font-weight: bold">Academic/Vocational Programming.</span> The Executive 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 Senate concurred
with the Governor. The Conference Committee concurred with the Govenor and the
Senate.</p>
</td>
<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>(2,567,000)</p>
</td>
</tr>
<tr>
<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -0.216667in; margin-left: 0.216667in">9. <span> </span><span style="font-weight: bold">Technical Adjustments. </span>The Senate included technical adjustments which balance
to zero at the request of the DOC. The Conference Committee concurred with the
Senate.</p>
</td>
<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>0 </p>
</td>
</tr>
<tr>
<td class="table1column1" width="81%" style="border-right: none; border-bottom: none; border-left: none; border-top: none" valign="top"><p style="text-indent: -1in; margin-left: 1in">10. <span style="font-weight: bold">Points of Difference. </span>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. </p>
</td>
<td class="table1column2" width="19%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>0 </p>
</td>
</tr>
<tr>
<td class="table1column1" width="81%" style="border-right: none; border-left: none; border-top: none" valign="top"><p>Total Changes<span>. . . . .& #160;. . . . . .&# 160;. . . . . . 60;. . . . . . 0;. . . . . .  ;. . . . . . .  . . . . . .& amp;#160;. . . . . .&a mp;#160;. . . . . .&am p;#160;. . . .</span></p>
</td>
<td class="table1column2" width="19%" style="border-left: none; border-right: none; border-top: none" align="right" valign="top"><p>$38,840,369 </p>
</td>
</tr>
<tr>
<td class="table1column1" width="81%" style="border-right: none; border-left: none; border-top: 0.04in double #7f7f7f; border-bottom: 0.04in double #7f7f7f" valign="top"><p><span style="font-weight: bold">FY 2003-04 Conference Report Gross Appropriation<span>. . . . .& amp;#160;. . . . . .&a mp;#160;. . . . . .&am p;#160;. . . . . .& ;#160;. . </span></span></p>
</td>
<td class="table1column2" width="19%" style="border-left: none; border-right: none; border-top: 0.04in double #7f7f7f; border-bottom: 0.04in double #7f7f7f" align="right" valign="top"><p><span style="font-weight: bold">$1,724,507,200 </span></p>
</td>
</tr>
<tr>
<td class="table1column1" width="81%" style="border-right: none; border-left: none; border-top: none; border-bottom: none" valign="top"><p><span style="font-weight: bold">Amount Over/(Under) GF/GP Target: ($110,000)</span></p>
</td>
<td class="table1column2" width="19%" style="border-left: none; border-right: none; border-top: none; border-bottom: none" align="right" valign="top"><p> </p>
</td>
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<td class="table2column1" width="100%" style="border-left: none; border-right: none; border-top: none; border-bottom: 0.04in double #7f7f7f" valign="top"><p>FY 2003-04 <a name="2"></a>CORRECTIONS BUDGET - BOILERPLATE HIGHLIGHT</p>
</td>
</tr>
<tr>
<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p><span style="font-weight: bold">Changes from FY 2002-03 Year-to-Date:</span></p>
</td>
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<tr>
<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p><span style="text-decoration: underline">Items Included by the Senate and House</span></p>
</td>
</tr>
<tr>
<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.216667in; margin-left: 0.216667in">1. <span> </span><span style="font-weight: bold">County Jail Reimbursement Program (CJRP) </span>The Executive revises the CJRP reimbursement criteria to
eliminate automatic reimbursement for third time drunk drivers. Counties would still receive reimbursement
for felony drunk drivers who are true prison diversions. (Section 706)</p>
</td>
</tr>
<tr>
<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.216667in; margin-left: 0.216667in">2. <span> </span><span style="font-weight: bold">Local Facility Housing Program. </span> The Governor’s recommendation adds Section 707 to provide direction
for a local facility expansion and housing program funded through the CJRP changes. The House reduced
the funding for this line and revised the boilerplate to narrow the use of funding to only reimburse counties
for housing State prisoners.</p>
</td>
</tr>
<tr>
<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.216667in; margin-left: 0.216667in">3.<span>  </span><span style="font-weight: bold">Felony Drunk Drivers. </span> The House adds boilerplate 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 would 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 could then be
used to further prison diversion efforts (Section 710).</p>
</td>
</tr>
<tr>
<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.216667in; margin-left: 0.216667in">4.<span>  </span><span style="font-weight: bold">Abuse of Medical Services. </span>The House adds 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<span style="font-weight: bold"> </span>(Section 907).</p>
</td>
</tr>
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<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p><span style="text-decoration: underline">Conference Agreement on Items of Difference</span></p>
</td>
</tr>
<tr>
<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.216667in; margin-left: 0.216667in"> 5.<span> </span><span style="font-weight: bold">Hepatitis C Study. </span>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.</p>
</td>
</tr>
<tr>
<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.216667in; margin-left: 0.216667in"> 6.<span> </span><span style="font-weight: bold">Academic/Vocational Program Reduction. </span>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.</p>
</td>
</tr>
<tr>
<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.216667in; margin-left: 0.216667in"> 7.<span> </span><span style="font-weight: bold">Unfunded Economics.</span> The Senate added Section 224, which requires the DOC to provide a report by
October 15, 2003 regarding the department’s plans to <span style="font-family: 'Arial', sans-serif">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.</span> The Conference Committee concurred with
the Senate.</p>
</td>
</tr>
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<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.216667in; margin-left: 0.216667in"> 8.<span> </span><span style="font-weight: bold">Madison Twp. Sewer Contract.</span> 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.</p>
</td>
</tr>
<tr>
<td class="table2column1" width="100%" style="border-bottom: none; border-left: none; border-right: none; border-top: none" valign="top"><p style="text-indent: -0.216667in; margin-left: 0.216667in"> 9.<span> </span><span style="font-weight: bold">Privitization of Prisoner Transport Services.</span> <span style="font-family: 'Arial', sans-serif">The Senate added Section 406, which requires the
department to do a cost/benefit analysis of privatizing prisoner transport services.</span> The Conference
Committee concurred with the Senate.</p>
</td>
</tr>
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<td class="table2column1" width="100%" style="border-left: none; border-right: none; border-top: none; border-bottom: none" valign="top"><p style="text-indent: -1in; margin-left: 1in">10. <span style="font-weight: bold">Prisoner Sex Changes. </span> Section 901 prohibits expenditures for prisoner sex changes unless medically
necessary according to a physician.<span style="font-family: 'Arial', sans-serif"> The<span style="font-weight: bold"> </span>Senate amended the section to make it medically necessary
“according to the chief medical officer of the department.”</span> The Conference Committee
concurred with the Senate.</p>
</td>
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<p>Date Completed: <a name="4"></a>6-25-03 - Fiscal Analyst: <a name="5"></a> Bethany Wicksall</p>
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