FY 2004-05 AGRICULTURE BUDGET H.B. 5509 (CR-1): CONFERENCE REPORT







FY 2003-04 Year-to-Date Gross Appropriation $115,465,600
Changes from FY 2003-04 Year-to-Date:
  Items Included by the Senate and House
1. Animal Health Program. Additional Federal funding for animal health programs. 706,000
2. Local Conservation Districts. Eliminated GF/GP funding for training grants. (20,300)
3. Human Resource Consolidation. Savings from consolidation are realized. (19,600)
4. Gas Station Inspection. The House and Senate included funding for additional gas station inspectors. The Conference Committee reduced the funding by $178,300. 1,335,500
5. Employee-Related Savings. Employee-related savings. (1,858,300)
6. Economic Adjustments. Standard economic increases. 4,788,100
7. Other Changes. Includes Executive budget revisions issued 5/27/04 and adjustments to reflect FY 2003-04 supplemental appropriations. 1,057,100
Conference Agreement on Items of Difference
8. Marketing Program. Governor eliminated $200,000 in marketing programs. The House cut $200,000 to DIT to restore the cuts. The Senate cut $190,000 from DIT to partially restore the cuts. The Conference Committee concurred with the Governor's proposal. (200,000)
9. Horse Racing. The Governor reduced grants to reflect revenue availability. The House replaced funding in the Laboratory Program and Office of Racing Commissioner with State Services Fee Fund in order to increase grants. The Senate created $100 items of difference. The Conference Committee concurred with the House, but provided $250,000 of the increase for individual animal TB testing in NE Michigan. 1,006,000
10. Casino Tax Revenue. The Conference Committee added funding from the increased casino tax deposited in the Agriculture Equine Industry Development Fund from PA 306. 6,100,000
11. Funding Shift: Consumer Protection Program. The House added $3 million from MUSTFA funds, providing a $1.5 million increase for 34 new positions and shifting $1 million GF/GP to the Food and Dairy Program. The Conference Committee removed $1.2 million GF/GP from Consumer Protection Program and replaced with an equal amount of MUSTFA and did not fund the Food and Dairy Program increase. 0
12. Funding Shift: Oil Overcharge. The Governor eliminated private oil overcharge settlement funds and replaced it with revenue from retail gasoline station inspections and the Oil and Gas Regulatory Fund. The House used MUSTFA revenue. The Conference Committee used MUSTFA revenue. (162,600)
13. Information Technology. The House and Senate included an additional $71,000 for workstation upgrades. The Conference Committee increased funding by $48,000. 48,000
14. State Fair. The House and Senate provided $100 placeholders. The Conference Committee provided full funding for the Fair, $5.5 million. 0
Total Changes 10,665,700
  FY 2004-05 Conference Report Gross Appropriation $126,131,300
Amount Over/(Under) GF/GP Target: $ 0   0
FY 2004-05 AGRICULTURE BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2003-04 Year to Date:
  Items Included by the Senate and House
1. Standard Sections. The budget contains the following standard sections: state spending (201), Management and Budget Act (202), definitions (203), civil service billing (204), Internet reporting (208), buy American (209), deprived communities (210), information technology user charge schedule (219), information technology work projects (220), travel restrictions. (Sec. 223)
2. Deleted Sections. The budget deletes the following current-year sections: privatization (207), energy conservation program (601), limitation on Michigan State Fair expenditures (810), lease of Michigan State Fair grounds and facilities (812).
Conference Agreement on Items of Difference
3. Hiring Freeze. The House deleted the hiring freeze language. The Senate included new language. The Conference Committee concurs with the Senate. (Sec. 205)
4. Indemnification Payments. The House budget included payments for apiarian loss due to bear and eliminated payments for livestock losses due to coyotes. The Senate included current-year language providing payments for livestock losses due to wolves and coyotes only. The Conference Committee concurs with the Senate. (Sec. 212)
5. Agricultural Enhancement Fund. The House budget included appropriations for specific projects in the event the "racino" package passes or existing compacts are renegotiated. The Senate deleted this language. The Conference Committee concurs with the Senate. (Sec. 224)
6. Contingency Funds. The House budget included standard language for contingency funds. The Senate deleted this language. The Conference Committee concurs with the Senate. (Sec. 225)
7. Department Fee Authorization. The Senate included legislative notification and annual reporting requirements regarding fees charged by the Department. The Conference Committee concurs with the Senate. (Sec. 302)
8. Local Public Health Inspections. The House included language requiring local health departments to address grade A milk inspections. The Senate deleted this language. The Conference Committee concurs with the Senate. (Sec. 401)
9. TB Testing. The House included language requiring the Department to pay for individual animal testing to meet split-state status testing requirements. The Senate modified this language to include only the modified accredited TB source. The Conference Committee concurs with the Senate. (Sec. 451)
10. Environmental Response Fund. The Senate included intent language regarding appropriations from the Environmental Response Fund. The Conference Committee does not include this language. (Sec. 650)
11. Michigan Rural Partnership Council. The Senate included language requiring the Michigan Commission on Agriculture to receive reports from the Michigan Rural Partnership Council at least twice a year. The Conference Committee does not include this language. (Sec. 707)
12. Outstanding Winning Ticket Revenue. The Conference Committee included new language that requires notification at least 10 days before spending outstanding winning ticket revenue. Current law requires transfers before the funds are spent. (Sec. 811)
13. Michigan Festivals, Fairs, and Events. The Senate included $100 to promote commodity-related festivals, fairs, and events contingent on a 100% match. The Conference Committee does not include this language. (Sec. 814)
14. Capital Assistance to Tracks. Provides one-time matching funds for capital improvements at tracks. (Sec. 815)
15. CANTER Program. Provides $20,000 for racehorse rehabilitation programs. (Sec. 816)

Date Completed: 9-13-04 Fiscal Analyst: C. Thiel Bill Analysis @ http://www.senate.michigan.gov/sfa September 13, 2004 This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. Histp_sp