Summary: Conference Report

MILITARY AND VETERANS AFFAIRS

FY 2005-06 Senate Bill 277

Analyst: Jan Wisniewski

	FY 2004-05 YTD (as of 2/10/05)		Senate
	FY 2004-05 YTD (as of 2/10/05)	Executive	Senate	House	Conference
IDG/IDT	$1,042,500	$1,256,800	$1,656,800	$1,656,800	$1,656,800
Federal	45,418,100	49,537,200	49,537,200	49,537,200	49,537,200
Local	0	0	0	0	0
Private	1,282,300	1,355,800	1,355,800	1,355,800	1,355,800
Restricted	25,599,800	26,610,500	27,360,500	27,360,500	27,360,500
GF/GP	37,370,700	38,348,200	37,980,500	38,248,200	37,789,100
Gross	$110,713,400	$117,108,500	$117,890,800	$118,258,500	$117,699,400
FTEs	1,023.0	1,023.0	1,023.0	1,023.0	1,023.0

Note: FY 2004-05 YTD figures do not include the results of any supplementals or Executive Order actions that occurred afterFebruary 10, 2005.

Overview

The Department of Military and Veterans Affairs is charged with the training and administration of Army and Air National Guard forces, providing combat-ready military forces during times of national emergency, and performing civil relief operations under the command of the governor during state emergencies. The Department’s budget includes administrative and maintenance costs associated with these responsibilities, as well as several National Guard-related programs such as the Challenge Program and the National Guard Education Assistance Program. The Department has oversight over the following veterans-related programs: state-licensed nursing care at veterans homes in Grand Rapids and Marquette, grant funding to veterans service organizations, and the Michigan Veterans Trust Fund.

Major Budget Changes from FY 2004-05 YTD Appropriations:	Executive	Senate	House	Conference
*1. D.J. Jacobetti Veterans’ Home – Medicare and Medicaid* Increases federal revenue at D.J. Jacobetti Veterans’ Home due to tightening criteria for providing free prescription drugs to some veterans at the home. Results in increased Medicare and Medicaid revenues.	Gross Federal	$128,000 128,000	$128,000 128,000	$128,000 128,000	$128,000 128,000
*2. D.J. Jacobetti Veterans' Home – Board of Managers* Provides new restricted revenue from the Military Family Relief Fund to assist military families with emergency needs.	Gross Restricted	$0 0	$75,000 75,000	$75,000 75,000	$75,000 75,000
3. *Grand Rapids* *Veterans' Home – Board of Managers* Increases authorization for private donations to the Home from the public, veterans' organizations, and corporations. Also includes new restricted revenue from the Military Family Relief Fund to assist military families with emergency needs.	Gross Private Restricted	$40,000 40,000 0	$115,000 40,000 75,000	$115,000 40,000 75,000	$115,000 40,000 75,000
4. *Headquarters and Armories – Current Services Baseline Adjustment, Armory Closures, and Military Family Relief Fund* a. Increases federal revenue ($200,000) available for security contracts, engineering and environmental services, personnel costs, and telecommunication charges. b. Decreases GF/GP funding ($230,000) for Homeland Security workgroup to close armories in Menominee, Manistique, Charlotte, Saginaw, Three Rivers, and the Lansing Maintenance Facility. c. Provides new restricted revenue from the Military Family Relief Fund to assist military families with emergency needs.	Gross Federal Restricted GF/GP	($30,000) 200,000 0 ($230,000)	$470,000 200,000 500,000 ($230,000)	$470,000 200,000 500,000 ($230,000)	$470,000 200,000 500,000 ($230,000)
*5. Military Training Sites – Various* a. Increases federal revenue ($2 million) available for security contracts, personnel costs, and maintenance costs. b. Decreases GF/GP funding ($200,000) to the National Guard Tuition Assistance Program due to a federal match change. c. Decreases GF/GP funding ($70,000) for Homeland Security workgroup to close armories in Menominee, Manistique,Charlotte,Saginaw,ThreeRivers, and the Lansing Maintenance Facility.	Gross Federal GF/GP	$1,730,000 2,000,000 ($270,000)	$1,730,000 2,000,000 ($270,000)	$1,730,000 2,000,000 ($270,000)	$1,730,000 2,000,000 ($270,000)
6. *Economic Adjustments* Includes total economic adjustments for restoration of FY05 concessions ($2,198,500), retirement costs ($1,360,600), insurance costs ($1,141,300), workers compensation (negative $565,000), DIT Economics ($30,800), and restoration of FY05 DIT concessions ($31,900).	Gross IDG Federal Private Restricted GF/GP	$4,198,100 14,300 1,803,400 33,500 991,700 $1,355,200	$4,198,100 14,300 1,803,400 33,500 991,700 $1,355,200	$4,198,100 14,300 1,803,400 33,500 991,700 $1,355,200	$4,198,100 14,300 1,803,400 33,500 991,700 $1,355,200
*7. Homeland Security* Increases pass-through grant funding received from Department of State Police for activities related to Homeland Security program.	Gross IDG	$200,000 200,000	$600,000 600,000	$600,000 600,000	$600,000 600,000
*8. Military Retirement Payments* Increases annual annuity paid to retired Michigan Army and Air National Guard personnel per Michigan Military Act, 1967 PA 150.	Gross GF/GP	$131,000 $131,000	$131,000 $131,000	$131,000 $131,000	$131,000 $131,000

Major Budget Changes from FY 2004-05 YTD Appropriations:

Executive

Senate

House

Conference

1. D.J. Jacobetti Veterans’ Home – Medicare and Medicaid

Increases federal revenue at D.J. Jacobetti Veterans’ Home due to tightening criteria for providing free prescription drugs to some veterans at the home. Results in increased Medicare and Medicaid revenues.

Gross

Federal

$128,000

128,000

$128,000

128,000

$128,000

128,000

$128,000

128,000

2. D.J. Jacobetti Veterans' Home – Board of Managers

Provides new restricted revenue from the Military Family Relief Fund to assist military families with emergency needs.

Gross

Restricted

$75,000

75,000

$75,000

75,000

$75,000

75,000

3. Grand Rapids Veterans' Home – Board of Managers

Increases authorization for private donations to the Home from the public, veterans' organizations, and corporations. Also includes new restricted revenue from the Military Family Relief Fund to assist military families with emergency needs.

Gross

Private

Restricted

$40,000

40,000

$115,000

40,000

75,000

$115,000

40,000

75,000

$115,000

40,000

75,000

4. Headquarters and Armories – Current Services Baseline Adjustment, Armory Closures, and Military Family Relief Fund

a. Increases federal revenue ($200,000) available for security contracts, engineering and environmental services, personnel costs, and telecommunication charges.

b. Decreases GF/GP funding ($230,000) for Homeland Security workgroup to close armories in Menominee, Manistique, Charlotte, Saginaw, Three Rivers, and the Lansing Maintenance Facility.

c. Provides new restricted revenue from the Military Family Relief Fund to assist military families with emergency needs.

Gross

Federal

Restricted

GF/GP

($30,000)

200,000

($230,000)

$470,000

200,000

500,000

($230,000)

$470,000

200,000

500,000

($230,000)

$470,000

200,000

500,000

($230,000)

5. Military Training Sites – Various

a. Increases federal revenue ($2 million) available for security contracts, personnel costs, and maintenance costs.

b. Decreases GF/GP funding ($200,000) to the National Guard Tuition Assistance Program due to a federal match change.

c. Decreases GF/GP funding ($70,000) for Homeland Security workgroup to close armories in Menominee, Manistique,Charlotte,Saginaw,ThreeRivers, and the Lansing Maintenance Facility.

Gross

Federal

GF/GP

$1,730,000

2,000,000

($270,000)

$1,730,000

2,000,000

($270,000)

$1,730,000

2,000,000

($270,000)

$1,730,000

2,000,000

($270,000)

6. Economic Adjustments

Includes total economic adjustments for restoration of FY05 concessions ($2,198,500), retirement costs ($1,360,600), insurance costs ($1,141,300), workers compensation (negative $565,000), DIT Economics ($30,800), and restoration of FY05 DIT concessions ($31,900).

Gross

IDG

Federal

Private

Restricted

GF/GP

$4,198,100

14,300

1,803,400

33,500

991,700

$1,355,200

$4,198,100

14,300

1,803,400

33,500

991,700

$1,355,200

$4,198,100

14,300

1,803,400

33,500

991,700

$1,355,200

$4,198,100

14,300

1,803,400

33,500

991,700

$1,355,200

7. Homeland Security

Increases pass-through grant funding received from Department of State Police for activities related to Homeland Security

program.

Gross

IDG

$200,000

200,000

$600,000

600,000

$600,000

600,000

$600,000

600,000

8. Military Retirement Payments

Increases annual annuity paid to retired Michigan Army and Air National Guard personnel per Michigan Military Act, 1967 PA 150.

Gross

GF/GP

$131,000

$131,000

$131,000

$131,000

$131,000

$131,000

$131,000

$131,000

Major Boilerplate Changes from FY 2004-05:
Sec. 501. Veterans Service Organizations – NEW Combines current Sec. 501 language with new language requiring greater coordination and oversight from the Department regarding veterans benefits counseling. Also requires the Department to provide a report with increase program and service recommendations byMarch 15, 2006.

Major Boilerplate Changes from FY 2004-05:

Sec. 501. Veterans Service Organizations – NEW

Combines current Sec. 501 language with new language requiring greater coordination and oversight from the Department regarding veterans benefits counseling. Also requires the Department to provide a report with increase program and service recommendations byMarch 15, 2006.