FY 2004-05 AGRICULTURE BUDGET H.B. 5509 (S-1) Draft: COMMITTEE SUMMARY






House Bill 5509 (S-1) Draft
Committee: Appropriations

Changes from FY 2003-04 Year-to-Date:
1. Emerald Ash Borer Control. Additional Federal funding to eradicate this exotic pest.	17,750,000
2. Animal Health Program. Additional Federal funding for animal health programs.	706,000
3. Agriculture Marketing Program. Governor eliminated $50,000 in marketing grants and $150,000 in operational costs. The House restored the $200,000 from a cut to DIT, with $40,000 designated for the NW Michigan Horticultural Research Station and $10,000 for food bank. The Senate restored $50,000 of the cut to DIT funding.	(200,000)
4. Local Conservation Districts. Eliminated funding for training grants.	(20,300)
5. Horse Racing Programs. Governor reduced horse racing grants by 15%. The House replaced funding in the Laboratory Program and Office of Racing Commissioner with casino revenue and increased horse racing grants by 13.7% over current-year levels. The House also added $200,000 for outstanding winning ticket distribution. The Senate created $100 items of difference with the House.	1,200,000
6. Funding Shift: State Services Fee Fund. The House added $2.8 million in casino revenue to the budget, replacing horse racing revenue in the Lab and ORC, and increased horse racing grants. The Senate concurred.	0
7. Funding Shift: Lab. The House included $3 million in Michigan Underground Storage Tank Financial Assurance revenue, shifting $1 million GF/GP from the Laboratory to Food and Dairy and providing $1.5 million additional for 34 motor fuel quality inspectors. The Senate replaced MUSTFA with revenue from the Environmental Response Fund.	1,513,800
8. 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 instead of the Oil and Gas Regulatory Fund. The Senate used the Environmental Response Fund.	(162,600)
9. Food and Dairy Program. The House added $1 million GF/GP for food safety activities, from the funding shift in the Laboratory Program. The Senate concurred.	1,000,000
10. State Fair. The House eliminated all but $100. The Senate concurred.	(5,486,000)
11. Human Resource Consolidation. Savings from consolidation are realized.	(19,600)
12. Employee-Related Savings. Undesignated employee-related savings equating to 5% of salary and wage budget. The Senate redistributed the savings to reflect actual payroll.	(1,858,300)
13. Economic Adjustments. Standard economic increases. The Senate redistributed.	5,004,800
14. Other Changes. Net restricted revenue adjustments ($21,000) and computer desktop adjustment of $71,000. Various $100 items of difference included by Senate.	49,800
15. Comparison to Governor's Recommendation. The Senate budget is $684,900 Gross under the Governor's budget. Without the State Fair cut, the budget is $4,801,100 Gross over the Governor's budget. The GF/GP budget is the same as the Governor's level.
Total Changes	$19,477,600
FY 2004-05 Senate Appropriations Subcommittee Gross Appropriation	$115,956,600

FY 2004-05 AGRICULTURE BUDGET BOILERPLATE HIGHLIGHTS

Changes from FY 2003-04 Year to Date:

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), contingency funds (225).

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).

3. Hiring Freeze. The House deleted the hiring freeze language. The Senate includes new language. (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 includes current-year language providing payments for livestock losses due to wolves and coyotes only. (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 deletes this language. (Sec. 224)

6. Contingency Funds. The House's budget includes standard language for contingency funds. The Senate deletes this language. (Sec. 225)

7. Department Fee Authorization. The Senate includes legislative notification and annual reporting requirements regarding fees charged by the Department. (Sec. 302)

8. Local Public Health Inspections. The House included language requiring local health departments to address grade A milk inspections. The Senate deletes this language. (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 deletes this language. (Sec. 451)

10. Environmental Response Fund. The Senate includes intent language regarding appropriations from the Environmental Response Fund. (Sec. 650)

11. Michigan Festivals, Fairs, and Events. The Senate includes $100 to promote commodity-related festivals, fairs, and events contingent on a 100% match. (Sec. 814)

Date Completed: 5-24-04 Fiscal Analyst: Craig Thiel Bill Analysis @ http://www.senate.michigan.gov/sfa May 27, 2004 This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations. Hiagr_cs